2004 Senate Bill text for SB0219

SENATE BILL 219

46th legislature - STATE OF NEW MEXICO - second session, 2004

INTRODUCED BY

Timothy Z. Jennings

AN ACT

RELATING TO ACCOUNTANCY; CHANGING EXAMINATION PROCEDURES FOR QUALIFICATION AS A CERTIFIED PUBLIC ACCOUNTANT; INCREASING A FEE; DECLARING AN EMERGENCY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 61-28B-7 NMSA 1978 (being Laws 1999, Chapter 179, Section 7) is amended to read:

"61-28B-7. QUALIFICATIONS FOR A CERTIFICATE AS A CERTIFIED PUBLIC ACCOUNTANT.--

A. An applicant for a certified public accountant certificate shall complete the application form provided by the board and demonstrate to the board's satisfaction that he:

(1) is of good moral character and lacks a history of dishonest or felonious acts; and

(2) meets the education, experience and examination requirements of the board.

B. The board may refuse to grant a certificate on the ground that the applicant failed to satisfy the requirement of good moral character.

C. The education requirements for a certificate, which must be met before an applicant is eligible to apply for examination, are as required in this section or Section [8 of the 1999 Public Accountancy Act] 61-28B-8 NMSA 1978. After July 1, 1999, the requirement for a certificate is a baccalaureate or higher degree or its equivalent conferred by a college or university acceptable to the board, with thirty semester hours in accounting or equivalent as determined by the board.

[D. The examination for certification shall be held at least twice a year and shall test the applicant's knowledge of the subjects of accounting and auditing and such other related subjects as prescribed by the board. The time for holding the examination shall be determined by the board and may be changed from time to time. The board shall prescribe the methods of applying for the examination and of grading papers; provided, however, that the board shall to the extent possible provide that the examination, the grading of the examination and the passing grades are uniform with examinations of all other states. The board may use all or any part of the uniform certified public accountant examination and advisory grading service of the American institute of certified public accountants to perform administrative services with respect to the examination. The board shall administer and proctor the examination with volunteers from the accounting profession.

E. An applicant must pass all sections of the examination in order to qualify for a certificate. A passing grade for each section shall be seventy-five. If he passes two or more but not all sections in an examination sitting, he shall be given credit for those sections and need not sit for re-examination in those sections; provided that he passes the remaining sections of the examination within six consecutive examinations given after the one at which the first sections were passed.]

D. The examination for certification shall be offered via a computer-based testing system at least four times per year at a designated testing center and shall test an applicant's knowledge of the subjects of accounting and auditing and other related subjects as prescribed by the board. The board shall prescribe the method of applying for the examination and the dissemination of scores, and it shall rely on the American institute of certified public accountants for the grading of the examination. The board may use all or any part of the uniform certified public accountant examination services of the national association of state boards of accountancy to perform administrative services with respect to the examination. The board or its designee shall report all eligibility and score data to the national candidate database, and it shall, to the extent possible, provide that the passing scores are uniform with passing scores of other states.

E. An applicant must pass all sections of the examination to qualify for a certificate. A passing scaled score for each section shall be seventy-five. Sections may be taken individually and in any order. An applicant may not take a failed test section within the same three-month examination window. Credit for any section passed shall be valid for eighteen months from the actual date the applicant took that section, without having to attain a minimum score on any failed test section and without regard to whether the applicant has taken other test sections. An applicant must pass all four test sections within a continuous eighteen-month period, which begins on the date that the first section passed is taken. If all four test sections are not passed within the continuous eighteen-month period, credit for any test section passed outside the eighteen-month period will expire, and that test section must be retaken.

F. An applicant who has passed at least two sections of the paper and pencil examination, as of the launch date of the computer-based examination, will retain credit for the corresponding test sections of the computer-based examination.

G. An applicant who has passed at least two sections of the paper and pencil examination, as of the launch date of the computer-based examination, shall be given a transition period to complete any remaining test sections of the computer-based examination.

[F.] H. An applicant shall be given credit for examination sections passed in another state if such credit would have been given in New Mexico.

[G.] I. The board may waive or defer requirements of this section regarding the circumstances in which sections of the examination must be passed, upon a showing that, by reason of circumstances beyond the applicant's control, he was unable to meet the requirement.

[H.] J. An applicant for initial issuance of a certified public accountant certificate shall show that he has had at least one year of experience. After July 1, 2004, the applicant shall have had at least one year of experience. This experience shall include providing service or advice involving the use of accounting, attest, management advisory, financial advisory, tax or consulting skills as verified by a certified public accountant who meets requirements prescribed by the board. The experience is acceptable if it was gained through employment in government, industry, academia or public practice."

Section 2. Section 61-28B-8 NMSA 1978 (being Laws 1999, Chapter 179, Section 8) is amended to read:

"61-28B-8. QUALIFICATIONS FOR A CERTIFICATE AS A CERTIFIED PUBLIC ACCOUNTANT--JULY 1, 2004.--

A. An applicant for a certificate shall complete the application form provided by the board and demonstrate to the board's satisfaction that he:

(1) is of good moral character and lacks a history of dishonest or felonious acts; and

(2) meets the education, experience and examination requirements of the board.

B. The board may refuse to grant a certificate on the ground that the applicant failed to satisfy the requirement of good moral character.

C. The education requirements for a certificate, which must be met before an applicant is eligible to apply for examination, are as provided in this section or Section [7 of the 1999 Public Accountancy Act] 61-28B-7 NMSA 1978. After July 1, 2004, an applicant shall have at least one hundred fifty semester hours of college education, including a baccalaureate or higher degree or its equivalent conferred by a college or university acceptable to the board, the total educational program to include an accounting concentration or equivalent as determined by the board, with thirty semester hours in accounting or equivalent as determined by the board.

[D. The examination for certification shall be held at least twice a year and shall test the applicant's knowledge of the subjects of accounting and auditing and other related subjects as prescribed by the board. The time for holding the examination shall be determined by the board and may be changed from time to time. The board shall prescribe the methods of applying for the examination and of grading papers; provided, however, that the board shall to the extent possible provide that the examination, the grading of the examination and the passing grades are uniform with examinations of all other states. The board may use all or any part of the uniform certified public accountant examination and advisory grading service of the American institute of certified public accountants to perform administrative services with respect to the examination. The board shall administer and proctor the examination with volunteers from the accounting profession.

(1) at that sitting he wrote all sections of the examination for which he does not have credit;

(2) he made a minimum grade of fifty on each section taken at that sitting;

(3) he passes the remaining sections of the examination within six consecutive examinations given after the one at which the first sections were credited;

(4) at each subsequent sitting at which he seeks to pass an additional section, the applicant writes all sections for which he does not have credit; and

(5) in order to receive credit for passing additional sections in such subsequent sitting, the applicant makes a minimum grade of fifty on sections taken at that sitting.]

[F.] H. An applicant shall be given credit for examination sections passed in another state if such credit would have been given in New Mexico.

[H.] J. An applicant for initial issuance of a certified public accountant certificate shall show that he has had at least one year of experience. This experience shall include providing service or advice involving the use of accounting, attest, management advisory, financial advisory, tax or consulting skills as verified by a certified public accountant who meets requirements prescribed by the board. The experience is acceptable if it was gained through employment in government, industry, academia or public practice."

Section 3. Section 61-28B-27 NMSA 1978 (being Laws 1999, Chapter 179, Section 27, as amended) is amended to read:

"61-28B-27. FEES.--The board may collect from certificate holders, permit holders, applicants and others the following fees:

A. for examination, a fee not to exceed [two hundred twenty-five dollars ($225)] four hundred dollars ($400) per examination section;

B. for certificate issuance or renewal, a fee not to exceed one hundred seventy-five dollars ($175) per year; provided, however, the board may charge a biennial fee of not more than twice the annual fee;

C. for firm permits, a fee not to exceed one hundred dollars ($100) per year; provided, however, the board may charge a biennial fee of not more than twice the annual fee;

D. for incomplete or delinquent continuing education reports, certificate or permit renewals, a fee not to exceed one hundred dollars ($100) each;

E. for preparing and providing licensure and examination information to others, a fee not to exceed seventy-five dollars ($75.00) per report;

F. reasonable administrative fees for such services as research, record copies, duplicate or replacement certificates or permits;

G. for certificate reinstatement, a fee not to exceed one hundred seventy-five dollars ($175), plus past due fees and penalties;

H. for waiver to comply with continuing professional education requirements, a fee not to exceed seventy-five dollars ($75.00) per application; and

I. for reentry into active certificate status and to comply with continuing education, a fee not to exceed seventy-five dollars ($75.00) per application."

Section 4. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediatley.

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