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F I S C A L I M P A C T R E P O R T

SPONSOR Jennings

DATE TYPED 01/26/05 HB

SHORT TITLE Public Accountants Certification Renewal

SB 262

ANALYST McSherry

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

Public Accountancy

Board Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Response from RLD

SUMMARY

Synopsis of Bill

This bill amends sections 61-28B-9 and 61-28B-13 NMSA 1978 of the Public Accountancy Act.

The amendments to 61-28-9 allow the board to establish annual, rather than biannual renewal

rules for certification, allow for the board to withhold renewal of certification when renewal and

delinquency fees are not paid within ninety days of license expiration, and provide for reinstate-

ment of certification upon fee payment and board approval.

Amendments to 61-28B-13 specify the deadline for permit renewal for accountancy firms to be

June 30

th

of the year of permit expiration, changes firm certification to firm permitting, and pro-

vides for 90 days as the time period allowed for submission of renewal delinquency fees’ without

revocation of permit, rather than specifying September 30th

.

According to RLD, this bill reflects the correct expiration dates of both certified public account-

ant (CPA) licenses and firm permits to practice and the requirements to reinstate an expired CPA

license or an expired firm permit to practice.

Senate Bill 262 -- Page 2

Significant Issues

According to RLD, this bill is a technical change only and is intended to separate the renewal

requirements for a CPA license from those of a firm permit to practice. Renewal requirements

for CPA licenses are currently combined with renewal requirements for CPA firms under 61-

28B-13.B NMSA 1978, rather than being specified in 61-28B-9.

PERFORMANCE IMPLICATIONS

According to RLD, SB 262 would clarify renewal application deadlines for both CPA licenses

and CPA firm permits, and reinstatement requirements for both CPA licenses and CPA firm

permits. RLD believes this change will allow Accountancy Board staff to administer the Public

Accountancy Act in a consistent fashion and provide CPAs, firm permit holders, and the general

public with accurate information regarding statutory citations.

FISCAL IMPLICATIONS

There are no known fiscal implications related to passing this legislation.

ADMINISTRATIVE IMPLICATIONS

Because this legislation removes specific dates from statute, a possible effect would be the

breakdown of administrative and board workload into a relatively steady flow rather than heavy

workloads separated by long periods of relatively light workload levels.

RELATIONSHIP

HB306 will extend the Public Accountancy Board’s life by setting the board’s sunset to a future

date.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

According to RLD, the current language in Section B of 61-28B-13 NMSA is misleading as CPA

licenses and firm permits to practice are two separate types of licenses. The department asserts

that if this bill is not enacted, CPAs and holders of firm permits will continue to be confused

about renewal deadlines and reinstatement requirements, and Accountancy Board staff will not

be able to provide licensees and the general public with accurate statutory citations.

EM/lg