TITLE 16 OCCUPATIONAL AND PROFESSIONAL
LICENSING
CHAPTER 60 PUBLIC ACCOUNTANTS
PART 3 LICENSURE
AND CONTINUING PROFESSIONAL EDUCATION REQUIREMENTS
16.60.3.1 ISSUING AGENCY: State
of New Mexico Public Accountancy Board
[16.60.3.1 NMAC - Rp
16 NMAC 60.4.1 & 16 NMAC 60.6.1, 2/14/2002]
16.60.3.2 SCOPE:
General public: Individuals
seeking to become certified public accountants (CPAs) CPAs and registered
public accountants (RPAs) seeking to maintain their New Mexico certificate/license
status through continuing professional education (CPE).
[16.60.3.2 NMAC - Rp
16 NMAC 60.4.2 & 16 NMAC 60.6.2, 2/14/2002]
16.60.3.3 STATUTORY AUTHORITY: 1999
Public Accountancy Act, Sections 61-28B-1 to 61-28B-29 NMSA 1978.
[16.60.3.3 NMAC - Rp
16 NMAC 60.4.3 & 16 NMAC 60.6.3, 2/14/2002]
16.60.3.4 DURATION: Permanent.
[16.60.3.4 NMAC - Rp
16 NMAC 60.4.4 & 16 NMAC 60.6.4, 2/14/2002]
16.60.3.5 EFFECTIVE DATE:
February 14, 2002, unless a later date is cited at the end of a section.
[16.60.3.5 NMAC - Rp
16 NMAC 60.4.5 & 16 NMAC 60.6.5, 2/14/2002]
16.60.3.6 OBJECTIVE:
Protect the public interest by implementing provisions of the 1999
Public Accountancy Act (act) which provide for initial application issuance and
renewal of CPA and RPA certificates/licenses; reinstatement of expired,
cancelled, suspended or revoked CPA/RPA certificates; application and issuance
of CPA certificates through interstate and international reciprocity;
establishment of intent to practice privilege under substantial equivalency;
maintenance of professional competency through continuing professional
education (CPE) of CPA and RPA certificate/license holders; and change of
status application procedures between active/inactive or retired status.
[16.60.3.6 NMAC - Rp
16 NMAC 60.4.6 & 16 NMAC 60.6.6, 2/14/2002]
16.60.3.7 DEFINITIONS: [RESERVED]
[16.60.3.7 NMAC - Rp
16 NMAC 60.4.7 & 16 NMAC 60.6.7, 2/14/2002]
16.60.3.8 APPLICATION REQUIREMENTS: All
certificate/license applications and renewals shall be made on and meet all
information requirements contained in board prescribed forms. Applications will not be considered complete
and filed with the board until all required information and board prescribed
fees have been received. Electronic
signatures are acceptable for applications submitted pursuant to 16.60.1 NMAC
through 16.60.50 NMAC.
[16.60.3.8 NMAC -
Rp. 16 NMAC 60.4.8.1, 2/14/2002; A, 10/1/2020]
16.60.3.9 INITIAL CERTIFICATE/LICENSE REQUIREMENTS:
A. An applicant for initial
certification/licensure shall demonstrate to the board's satisfaction that he:
(1) lacks a history of dishonest or
felonious acts;
(2) meets the education, experience and
examination requirements of the board; and
(3) passes the American institute of
certified public accountants ethics examination with a score of ninety percent
or higher.
B. Integrity requirement: The board may assess integrity based upon
applicant-provided references and background checks to determine an applicant's
history of dishonest or felonious acts.
The board may request the presence at a board meeting of an applicant
for whom it has unanswered questions.
C. Criminal history background
check: Pursuant to Section 61-28B-8.1 of
the act, all applicants for initial issuance or reinstatement of a certificate
and license in New Mexico shall be required to be fingerprinted to establish
positive identification for a state and federal criminal history background
check. Applicants can submit
fingerprints through the board approved live scan location prescribed by the
New Mexico Department of Public Safety (DPS).
(1) The applicant will register online, through the approved live scan
website, with the board’s Originating Agency Identification (ORI) number and
make payment with registration. After
the process is complete, the applicant will receive a registration
confirmation.
(2) The applicant shall take their
registration confirmation to an approved live scan facility and conduct the
electronic fingerprinting process.
(3) Results will be sent to the board
electronically. The board shall not
issue a certificate or license until the applicant’s background check has been
successfully completed.
(4) Out-of-State applicants, who are
unable to visit an approved live scan fingerprinting facility, may follow the
same registration process and submit a hardcopy fingerprint card to the
approved live scan facility. The results
will be sent to the board electronically.
The board shall not issue a certificate or license until the applicant’s
background check has been successfully completed.
D. Education and examination
requirements: Education and examination
requirements are specified in Section 8 of the act and are further delineated
in Part 2 of board rules. An applicant
who has passed the uniform CPA examination prior to July 1, 2004, is exempt
from the 150-semester-hour requirement.
E. Experience required:
Applicants documenting their required experience for issuance of an
initial certificate pursuant to Subsection H of Section 7 of the act, and after
July 1, 2004 Subsection H of Section 8 of the act shall:
(1) provide
documentation of experience in providing any type of services or advice using
accounting, attest, management advisory, financial advisory, tax or consulting
skills; acceptable experience shall include experience gained through
employment in industry, government, academia or public practice;
(2) have
their experience verified by an active, licensed CPA as defined in the act or
by an active, licensed CPA from another state; the board shall consider and
evaluate factors such as complexity and diversity of the work in determining
acceptability of experience submitted:
(a) one
year of experience or it’s 2,000 hour equivalent shall consist of full or
part-time employment that extends over a period of no more than three years and
includes no fewer than 2,000 hours of performance of services described above;
(b) the
CPA verifying an applicant’s experience must be employed by, or a consultant
to, or provide professional services to, the same organization as the
applicant;
(c) experience
documented in support of an initial application must be obtained within the
seven years immediately preceding passing of the examination or within seven
years of having passed the examination upon which the application is based;
this does not apply to applicants who qualified and sat for the examination
during or prior to the November 2001 administration;
(d) any
licensee requested by an applicant to submit evidence of the applicant’s
experience and who has refused to do so shall, upon request of the board,
explain in writing or in person the basis for such refusal; the board may
require any licensee who has furnished evidence of an applicant’s experience to
substantiate the information;
(e) the
board may inspect documentation relating to an applicant’s claimed experience;
any applicant may be required to appear before the board or its representative
to supplement or verify evidence of experience.
F. Certificate and license
issuance: upon receipt of a complete
application packet and successful completion of a fingerprint background check,
board staff are authorized to approve and issue a certificate and license to an
applicant for whom no licensing issues are present. Pursuant to Subsection I of 16.60.2.13 NMAC,
uniform CPA examination scores must be approved by the board’s administrative
staff prior to the issuance of a certificate and license to an applicant who
sat for the uniform CPA examination as a New Mexico candidate.
G. Swearing
in ceremony: Every new licensee must
participate in a swearing in ceremony before the board within one year from the
date of the issuance of the initial license.
Swearing in ceremonies may be held two times per year in locations to be
determined by the board or the board’s administrative staff. Upon good cause presented in writing prior to
the expiration of the one-year period of initial licensure, the board may
extend the period for being sworn in or arrange an alternate method for the
licensee to be sworn in. If an extension
for good cause is granted, the licensee shall arrange with the board’s
administrative staff to present him or herself for swearing in before the board
within the time prescribed by the board.
Failure to appear at a swearing in ceremony before the board may result
in the imposition of a fine or other disciplinary action, as deemed appropriate
by the board.
H. Replacement
wall certificates and licenses to practice:
Replacement wall certificates and licenses to practice may be issued by
the board in appropriate cases and upon payment by the CPA or RPA of the fee as
set by the board. A certificate/license
holder is specifically prohibited from possessing more than one wall certificate
and more than one license to practice as a CPA or RPA. When a replacement wall certificate or
license to practice is requested, the certificate/license holder must return
the original certificate/license or submit a statement describing the occurrence
that necessitated the replacement certificate or license.
I. Renewal
requirements: Certificates/licenses for
individuals will have staggered expiration dates based on the individual's
birth month. Deadline for receipt of
certificate/license renewal applications and supporting continuing professional
education affidavits or reports is no later than the last day of the CPA or RPA
certificate/license holder's birth month or the next business day if the
deadline date falls on a weekend or holiday.
(1) The
board may accept a sworn affidavit as evidence of certificate/license holder
compliance with CPE requirements in support of renewal applications.
(2) Renewal
applications and CPE reports received after prescribed deadlines shall include
prescribed delinquency fees.
(3) Applications
will not be considered complete without satisfactory evidence to the board that
the applicant has complied with the continuing professional education
requirements of Subsection E of Sections 9 and Subsection A of Section12 of the
act and of these rules.
(4) The
board shall send renewal application notices no less than 30 days prior to the
renewal deadline.
J. The purpose of
this part is to expedite licensure for military service members, their spouses,
their dependent children and for veterans pursuant to Section 61-1-34 NMSA
1978.
(1) Applications for registration shall be completed on a form provided by the board.
(2) The applicant shall provide a complete application that includes the following information:
(a) applicant’s full name;
(b) current mailing address;
(c) current electronic mail address, if any;
(d) date of birth;
(e) background check, if required; and
(f) proof as described in subsection (3) below.
(3) The applicant shall provide the following satisfactory evidence as follows:
(a) applicant is currently licensed and in good standing in another jurisdiction, including a branch of the United States armed forces;
(b) applicant has met the minimal licensing requirements in that jurisdiction and the minimal licensing requirements in that jurisdiction are substantially equivalent to the licensing requirements for New Mexico; and
(c) the following documentation:
(i) for military service member: copy of military orders;
(ii) for spouse of military service members: copy of military service member’s military orders, and copy of marriage license;
(iii) for spouses of deceased military service members: copy of decedent’s DD 214 and copy of marriage license;
(iv) for dependent children of military service members: copy of military service member’s orders listing dependent child, or a copy of military orders and one of the following: copy of birth certificate, military service member’s federal tax return or other governmental or judicial documentation establishing dependency;
(v) for veterans (retired or separated): copy of DD 214 showing proof of honorable discharge.
(4) The license or registration shall be issued by the board as soon as practicable but no later than thirty days after a qualified military service member, spouse, dependent child, or veteran files a complete application and provides a background check if required for a license, and any required fees.
(5) Military service members and veterans shall not pay and the board shall not charge a licensing fee for the first three years for a license issued pursuant to this rule.
(6) A license issued
pursuant to this section shall be valid for the time period that is specified in
the Act.
(7) A
license issued pursuant to this section shall not be renewed automatically, and
shall be renewed only if the licensee satisfies all requirements for the
issuance and renewal of a license pursuant to the 1999 Public Accountancy Act,
including Section 61-28B-9 NMSA 1978 and Subsection I of 16.60.3.9 NMAC.
(8) As
a courtesy, the board, will send via electronic mail license renewal
notifications to licensees or registrants before the license expiration date to
the last known email address on file with the board. Failure to receive the
renewal notification shall not relieve the licensee or registrant of the
responsibility of timely renewal on or before the expiration date.
[16.60.3.9 NMAC - Rp
16 NMAC 60.4.8.2 & 16 NMAC 60.4.8.3, 2/14/2002; A, 1/15/2004; A, 6/15/2004;
A, 12/30/2004; A, 4/29/2005; A, 7/29/2005; A, 11/30/2007; A, 6/30/2008; A,
2/27/2009; A, 1/17/2013; A, 12/1/2014;A, 9/15/2015; A, 10/1/2020; A, 12/12/2021]
16.60.3.10 BOARD ACCEPTANCE OF GRADE
TRANSFER CERTIFICATE APPLICANTS:
A. The board will only accept grade transfers from
applicants passing the uniform CPA examination in other jurisdictions/states
for an initial CPA certificate application under the following situations:
(1) temporary
change in residence to the state/jurisdiction where the applicant passed the
uniform CPA examination while the grade transfer applicant was a student;
(2) temporary
change in residence to the state/jurisdiction where the applicant passed the
uniform CPA examination while the grade transfer applicant was on military
duty;
(3) temporary
change in residence to the state/jurisdiction where the applicant passed the
uniform CPA examination while the candidate was on a temporary work assignment;
(4) presentation
of documented evidence demonstrating current resident status in the state of
New Mexico; or
(5) presentation
of documented evidence demonstrating anticipated employment and residency in
the state of New Mexico within 6 months of the application’s date.
B. An applicant who
resides in New Mexico and was issued a certificate in another state based upon
passage of the examination but never received a license to practice will be
considered for licensure by grade transfer.
C. The board may waive the above requirements due to
hardship exceptions presented by a grade transfer certificate applicant.
[16.60.3.10 NMAC -
N, 2/14/2002; A, 6/15/2004]
16.60.3.11 RELINQUISHING A
CERTIFICATE/LICENSE:
A. Any individual certificate/license holder may at any time
and for any reason, subject to the approval of the board, relinquish that certificate/license
to the board. An individual
relinquishing his certificate/license during the course of a disciplinary
investigation or proceeding may not apply for reinstatement but may apply for
the issuance of a new certificate/license upon completion of all requirements
for the issuance of such certificate, including meeting all education,
examination, experience, and ethics examination requirements of the act and
board rules in effect at the time of the new application. This includes sitting for and passing the
uniform CPA examination, meeting current experience requirements, and passing a
current ethics examination.
B. This rule does not apply to a licensee who relinquished
their license while in good standing and was not the subject of a board investigation
or disciplinary proceeding at the time they relinquished their license. If an individual relinquishes their
certificate/license during the course of a board disciplinary investigation or
proceeding, this fact shall be disclosed in any later application for a new
certificate and shall be considered before the issuance of a new certificate.
[16.60.3.11 NMAC -
N, 2/14/2002]
16.60.3.12 REINSTATEMENT REQUIREMENTS:
A. Requests to reinstate a certificate/license that lapsed
or expired as a result of non-renewal shall meet all board prescribed
requirements for reinstatement including the current year’s renewal fee and
continuing professional education. An
individual whose certificate/license has been subject to board disciplinary
action pursuant to the Uniform Licensing Act, Sections 61-1-1 to 61-1-31 NMSA
1978, may, upon application in writing and for good cause, request
reinstatement of the certificate/license after completion of all requirements
contained in the board’s original order or agreement.
B. A reinstatement application pursuant to Section 21 of the
act and this rule will be processed by the board upon the basis of the
materials submitted in support thereof and supplemented by such additional
inquiries as the board may require. Upon
receipt of a complete reinstatement application packet and successful
completion of a fingerprint background check, board staff are authorized to
reinstate a certificate and license to an applicant for whom no licensing
issues are present. If the individual
has not held an active license in any jurisdiction within the five years
preceding the date of application for reinstatement, the approval of the board
will be required. For reinstatement of a
certificate/license, a hearing may be held, and the board may, at its
discretion, impose terms and conditions on an application following procedures
the board may find suitable for the particular case.
C. The reinstatement request shall set out in writing the
reasons constituting good cause for the relief sought and shall be accompanied
by at least two supporting recommendations, under oath, from practitioners who
have personal knowledge of the activities of the applicant since board
disciplinary action was imposed. In
considering a reinstatement application, the board may consider all activities
of the applicant since the disciplinary action from which relief is sought was
imposed; the offense for which the applicant was disciplined; the applicant’s
activities during the time the certificate/license was in good standing; the
applicant’s rehabilitative efforts; restitution to damaged parties in the
matter for which the penalty was imposed; and the applicant’s general
reputation for trust and professional probity.
D. No application for reinstatement will be considered while
the applicant is under sentence for any criminal offense, including any period
during which the applicant is on court-imposed probation or parole.
[16.60.3.12 NMAC -
Rp 16 NMAC 60.4.11, 2/14/2002; A, 12/30/2005; A, 1/17/2013; A 10/1/2020; A, 12/12/2021]
16.60.3.13 RECIPROCITY
REQUIREMENTS:
A. Interstate reciprocity:
The board may issue a certificate/license to the holder of a certificate
issued by a state other than New Mexico as defined under Sections 3O, 11B and
D, and 26A of the act provided that the license from the other state is valid
and in good standing and that the applicant:
(1) provides
proof from a board-approved national qualifications service that their CPA
qualifications are substantially equivalent to the CPA requirements of the act;
or
(2) successfully
completed the CPA examination in accordance with the rules of the other state
at the time it granted the applicant’s initial certificate; and
(3) meets
the experience requirements under the act and these rules for issuance of the
initial certificate; and
(4) has
met the CPE requirement of the state in which he is currently licensed pursuant
to the act and board rules.
B. All applicants
for licensure by reciprocity shall have passed either the American institute of
certified public accountants ethics examination with a score of 90 percent or
higher or an ethics examination of another state board of accountancy with a
score of 90 percent or higher.
C. An applicant who
holds a certificate from another state based upon passage of the examination
but who does not hold a license to practice shall not be eligible for licensure
by reciprocity.
D. The board may rely on the national association of state
boards of accountancy (NASBA), the American institute of certified public
accountants (AICPA), or other professional bodies deemed acceptable to the
board for evaluation of other state's CPA qualification requirements in making
substantial equivalency determinations.
E. International reciprocity: The board may designate a professional
accounting credential issued in a foreign country as substantially equivalent
to a New Mexico CPA certificate and may issue a certificate/license to the
holder of a professional accounting credential issued in a foreign country.
(1) The
board may rely on NASBA, AICPA, or other professional bodies deemed acceptable
to the board for evaluation of foreign credentials in making equivalency
determinations.
(2) The
board may satisfy itself through qualifying examination(s) that the holder of a
foreign country credential deemed by the board to be substantially equivalent
to a CPA certificate possesses adequate knowledge of U.S. practice standards
and the board’s rules. The board will
specify the qualifying examination(s) and may rely on NASBA, AICPA, or other
professional bodies to develop, administer, and grade such qualifying
examination(s).
(3) The
board recognizes the existence of the international qualifications appraisal
board (IQAB), a joint body of NASBA and AICPA, which is charged with:
(a) evaluating
the professional credentialing process of certified public accountants, or
their equivalents, from countries other than the United States; and
(b) negotiating
principles of reciprocity agreements with the appropriate professional and
governmental bodies of other countries seeking recognition as having
requirements substantially equivalent to the requirements for the certificate
of a certified public accountant in the United States.
(4) The
board shall honor the terms of all principles of reciprocity agreements issued
by IQAB.
(5) The
board recognizes the international uniform CPA qualification examination
(IQEX), written and graded by AICPA, as a measure of professional competency
satisfactory to obtain a New Mexico certificate by reciprocity.
(6) The
board may accept a foreign country accounting credential in partial
satisfaction of its certificate/license requirements if:
(a) the
holder of the foreign country accounting credential meets the issuing body’s
education requirement and has passed the issuing body’s examination used to
qualify its own domestic candidates; and
(b) the
foreign country credential is valid and in good standing at the time of
application for a certificate/license.
(7) The
board shall accept the following foreign credentials in partial satisfaction of
its certificate/license requirements:
(a) Canadian
chartered accountant;
(b) Australian
chartered accountant;
(c) Hong
Kong institute of CPAs;
(d) Mexican
contador publicos certificado;
(e) chartered
accountants in Ireland;
(f) New
Zealand chartered accountant.
F. An applicant for renewal of a CPA certificate/license
originally issued in reliance on a foreign country accounting credential shall:
(1) meet
all board prescribed certificate/license renewal requirements; and
(2) present
documentation from the foreign country accounting credential issuing body that
the applicant’s foreign country credential has not been suspended or revoked
and is not the subject of a current investigation; and
(3) report
any investigations undertaken or sanctions imposed by a foreign country
credential body against the CPA’s foreign country credential.
G. If the foreign country credential has lapsed, expired, or
been cancelled, the applicant must present proof from the foreign country
credentialing body that the certificate holder/licensee was not the subject of
any disciplinary proceedings or investigations at the time the foreign country
credential lapsed.
H. Suspension or revocation of, or refusal to renew, the
CPA’s foreign accounting credential by the foreign credentialing body shall be
considered evidence of conduct reflecting adversely upon the CPA’s fitness to
retain the certificate and may be a basis for board action.
I. Conviction of a felony or any crime involving dishonesty
or fraud under the laws of a foreign country is evidence of conduct reflecting
adversely on the CPA’s fitness to retain a certificate/license and is a basis
for board action.
J. The board shall notify the appropriate foreign country
credentialing authorities of any sanctions imposed against a CPA. The board may participate in joint
investigations with foreign country credentialing bodies and may rely on
evidence supplied by such bodies in disciplinary hearings.
[16.60.3.13 NMAC -
Rp 16 NMAC 60.4.9, 2/14/2002; A, 9/16/2002; A, 1/15/2004; A, 6/15/2004; A,
12/30/2004; A, 4/29/2005; A, 6/30/2008; A, 11/13/2009; A, 1/17/2013]
16.60.3.14 SUBSTANTIAL EQUIVALENCY/INTENT
TO PRACTICE REQUIREMENTS:
A. Effective
B. The board may
rely on NASBA, AICPA, or other professional bodies approved as acceptable to
the board to provide qualification appraisal in determining whether an applicant's
qualifications are substantially equivalent to New Mexico's requirements.
C. A person
exercising the practice privilege afforded by Section 26 of the act shall be
deemed to have:
(1) submitted
to the personal and subject matter jurisdiction and disciplinary authority of
the board;
(2) agreed
to full compliance with the act and related board rules; and
(3) consented
to appointment of the state board that issued the license as agent upon whom
process may be served in an action or proceeding by the New Mexico public
accountancy board against the licensee.
D. A person
exercising the practice privilege afforded by Section 26 of the act shall cease
offering or rendering professional attest services in New Mexico in the event
the license from the state of the person’s principal place of business is no
longer valid.
E. An individual
who qualifies for practice privileges pursuant to Section 26 of the act may
offer or render professional services whether in person or by mail, telephone,
or electronic means without the need to notify the board or remit a fee.
F. Pursuant to the
Uniform Accountancy Act, an individual entering into an engagement to provide
professional services via a web site pursuant to Section 23 shall disclose, via
any such web site, the individual’s principal state of licensure, license
number, and an address as a means for regulators and the public to contact the
individual regarding complaints, questions, or regulatory compliance.
G. Reporting integrity
violations.
(1) Any
individual using practice privileges in New Mexico shall notify the board
within 30 days of any occurrence described in board rule Subsection B of 16.60.5.11
NMAC.
(2) Any
licensee of New Mexico using practice privileges in another state shall notify
the New Mexico board and the state board of any other state in which said
licensee uses practice privileges within 30 days of any occurrence described in
board rule Subsection B of 16.60.5.11 NMAC, which includes Subsection A of 16.60.5.14
NMAC.
[16.60.3.14 NMAC -
N, 2/14/2002; A, 7/30/2004; A, 7/29/2005; A, 6/30/2008; A, 1/17/2013; A, 12/12/2021]
16.60.3.15 CONTINUING
PROFESSIONAL EDUCATION (CPE) REQUIRED TO OBTAIN OR MAINTAIN AN
"ACTIVE" CPA LICENSE:
A. The following requirements of continuing professional
education apply to certificate/license renewals and reinstatements pursuant to
Subsection E of Sections 9 and Subsection A of Section 12 of the act. An applicant for certificate/license renewal
shall show completion of no less than 120 clock hours of CPE, complying with
these rules during the 36-month period ending on the last day of the
certificate/license holder's birth month.
(1) Any
applicant seeking a license/certificate or renewal of an existing license shall
demonstrate participation in a program of learning meeting the standards set
forth in the statement on standards for continuing professional education (CPE)
programs jointly approved by NASBA and AICPA or standards deemed comparable by
the board. An initial license is the
first license issued to an individual.
CPE reporting will begin on the first day following the licensee’s
initial expiration date (birth month) for license renewal. No CPE will be required for the period
between issue date and first expiration date (birth month).
(2) Each
person holding an active CPA certificate/license issued by the board shall show
completion of no less than 120 hours of continuing professional education
complying with these rules during the preceding 36-month period ending on the
last day of the certificate/license holder's birth month, with a minimum of 20
hours completed in each reporting year. For any CPE
reporting period which begins on or after January 1, 2010, continuing
professional education must include a minimum of four hours of ethics education
during the 36-month period after January 1, 2010. Licensees shall report CPE completion on
board prescribed forms including a signed statement indicating they have met
the requirements for participation in the CPE program set forth in board rules.
(3) The
board may, at its discretion, accept a sworn affidavit as evidence of
certificate/license holder compliance with CPE requirements in support of
renewal applications in lieu of documented evidence of such. Reciprocity and reinstatement applications
shall require documented evidence of compliance with CPE provisions.
(4) Deadline
for receipt of license renewal applications and supporting CPE reports or
affidavits is no later than the last day of the certificate/license holder's
birth month. Renewal applications and
supporting CPE affidavits or reports shall be postmarked or hand-delivered no
later than the renewal deadline date or the next business day if the deadline
date falls on a weekend or holiday.
(5) In
the event that renewal applicants have not completed the requisite CPE by the
renewal deadline, he may provide a written explanation for failure to complete
CPE and may submit a written request for an extension for completion of the
required CPE prior to license expiration date.
(a) The
approval of an extension request is not automatic. The board has the discretion to grant or deny
a request.
(b) The
request for extension shall include documentation of the extenuating
circumstances that prevented him from completing the CPE. A written plan of action to remediate the
deficiency must accompany the renewal application and extension request.
(c) If
a request for extension is received in the board office after the expiration
date of the license, the license shall be renewed, and the file shall be
referred to the board for possible disciplinary action.
(d) An
extension up to 60 days beyond the expiration date of the license may be
granted by board staff; extenuating circumstances beyond the control of the
licensee necessitating an extension beyond 60 days requires the approval of the
board.
(e) The
board may waive a fine for good cause or require community service acceptable
to the board.
(f) If
all CPE requirements are not met by the expiration date of the license or granted
extension date, the license shall be subject to disciplinary action.
(6) Renewal
applications and CPE reports received after prescribed deadlines shall include
prescribed delinquency fees.
(7) Applications
will not be considered complete without satisfactory evidence to the board that
the applicant has complied with the CPE requirements of Subsection E of
Sections 9 and Subsection A of Section 12 of the act and of these rules.
(8) Reinstatement
applicants whose certificates/licenses have lapsed shall provide documented
evidence of completion of 40 hours of CPE for each year the certificate/license
was expired, not to exceed 200 hours. If
the license was expired for longer than 36 months, at least 120 of the hours
must have been earned within the preceding 36 months. For any post-2009 year for which the
certificate/license was expired, the continuing professional education must
include a minimum of four hours of ethics education during the 36 months
preceding reinstatement.
(a) The
length of expiration shall be calculated from the date the license expired to
the date the application for reinstatement was received by the board office.
(b) If
the license was expired for less than one year, documented evidence of 40 hours
of CPE earned within the 12 months immediately preceding the date of
application for reinstatement must be provided.
(c) If
the license was expired for longer than one year, for the purpose of
determining the number of CPE hours required, the length of expiration shall be
rounded down to the last full year if the partial year was less than six months
and rounded up to the next full year if the partial year was more than six
months.
B. Exemption from CPE requirements through change of
certificate/license status between inactive/retired and active status.
(1) Licensees
granted an exception by the board must place the word “inactive” adjacent to
their CPA title on any business card letterhead, or any other document or
device, with the exception of their CPA certificate, on which their CPA title
appears. Licensees granted the exception
who are at least 55 years of age may replace “inactive’ with “retired”. Any of these terms must not be applied in such
a manner that could likely confuse the public as to the current status of the
licensee.
(2) Licensees
granted the use of “inactive” or “retired” may volunteer their time to
nonprofit or governmental organizations, to the extent provided in the
statute. Licensees may not be
compensated for such volunteer work other than through reimbursement of actual
expenses.
(3) Licensees
have the responsibility to maintain professional competence relative to the
volunteer services they provide even though exempt from specific CPE
requirements of 16.60.3.15 NMAC.
C. Persons
requesting to change from "inactive" or "retired" to
"active" certificate/license status shall:
(1) complete
board-prescribed change-of-status forms and remit related fees; and
(2) provide
documented evidence of 40 hours of CPE for each year the certificate/license
was inactive, not to exceed 200 hours; if the license was inactive for longer
than 36 months, at least 120 of the hours must have been earned within the
preceding 36 months. For any post-2009
year for which the certificate/license was inactive, the continuing
professional education must include a minimum of four hours of ethics education
during the 36 months preceding application for change of status to “active”.
(3) If
an individual has not held an active license within five years preceding the
date of the application for “change of status”, the approval of the board will
be required.
D. Hardship
exceptions: The board may make
exceptions to CPE requirements for reason of individual hardship including
health, military service, foreign country residence, or other good cause. Requests for such exceptions shall be subject
to board approval and presented in writing to the board. Requests shall include such supporting
information and documentation as the board deems necessary to substantiate and
evaluate the basis of the exception request.
E. Programs
qualifying for CPE credit: A program
qualifies as acceptable CPE for purposes of Subsection E of Sections 9 and
Subsection A of Section 12 of the act and these rules if it is a learning
program contributing to growth in professional knowledge and competence of a
licensee. The program must meet the
minimum standards of quality of development, presentation, measurement, and
reporting of credits set forth in the statement on standards for continuing
professional education programs jointly approved by NASBA and AICPA, by
accounting societies recognized by the board, or such other standards deemed
acceptable to the board.
(1) The
following standards will be used to measure the hours of credit to be given for
acceptable CPE programs completed by individual applicants:
(a) an
hour is considered to be a 50-minute period of instruction;
(b) a
full one day program will be considered to equal eight hours;
(c) only
class hours or the equivalent (and not student hours devoted to preparation)
will be counted;
(d) one-half
credit increments are permitted after the first credit has been earned in a
given learning activity;
(e) Nano-learning
– The credit to be earned for a single nano-learning program is one fifth-credit. Only a total of eight CPE credit hours can be
reported in a three year reporting cycle using nano-learning credits.
(f) For
blended learning programs included in rule 16.60.3.15, the CPE credit must
equal the sum of the CPE credit determination for the various completed
components of the program.
(g) for
reporting periods on or after January 1, 2010, acceptable ethics topics may
include, but are not limited to, instruction focusing on the AICPA code of
professional conduct, the New Mexico occupational and professional licensing
code of professional conduct applicable to certified public accountants,
Treasury Circular 230, malpractice avoidance, organization ethics, integrity,
and the duties of the CPA to the public, clients, and colleagues; ethics hours
may be earned as part of any professional development program otherwise
qualifying under this rule, provided the ethics content and the time devoted to
such content are separately identifiable on the program agenda.
(2) Service
as a lecturer, discussion leader, or speaker at continuing education programs
or as a university professor/instructor (graduate or undergraduate levels) will
be counted to the extent that it contributes to the applicant’s professional
competence in accountancy.
(3) Credit
as a lecturer, discussion leader, speaker, or university professor/instructor
may be allowed for any meeting or session provided that the session would meet
the continuing education requirements of those attending.
(4) Credit
allowed as a lecturer, discussion leader, speaker or university
professor/instructor will be on the basis of one hour of preparation and one
hour for each hour of presentation.
Credit for subject preparation may only be claimed once for the same
presentation.
(5) Authors
of published articles, books and other publications may receive credit for
their research and writing time to the extent it maintains or improves their
accountancy professional competence. For
the author to receive CPE credit the article, book or CPE program must be
formally reviewed by an independent subject matter expert or reviewed and
approved by the board. Not more than
fifty percent of the total CPE credits required for the CPE reporting period
can be claimed for author CPE credit.
The board will determine the amount of credit awarded.
(6) Credit
allowed under provisions for a lecturer, discussion leader, speaker at
continuing education programs, or university professor/instructor or credit for
published articles and books may not exceed one half of an individual’s CPE
requirement for a three year reporting period (shall not exceed 60 hours of CPE
credit during a 3-year reporting period).
(7) For
a continuing education program to qualify under this rule, the following
standards must be met:
(a) an
outline of the program is prepared in advance and preserved;
(b) the
program is at least one hour in length;
(c) a
qualified instructor conducts the program; and
(d) a
record of registration or attendance is maintained.
(8) The
following programs are deemed to qualify, provided the above are met:
(a) professional
development programs of recognized national and state accounting organizations;
(b) technical
sessions at meetings of recognized national and state accounting organizations
and their chapters; and
(c) no
more than four hours CPE annually may be earned for board meeting attendance.
(9) University
or college graduate-level courses taken for academic credit are accepted. Excluded are those courses used to qualify
for taking the CPA exam. Each semester
hour of credit shall equal 15 hours toward the requirement. A quarter hour credit shall equal 10 hours.
(10) Non-credit
short courses - each class hour shall equal one hour toward the requirement and
may include the following:
(a) formal,
organized in-firm educational programs;
(b) programs
of other accounting, industrial, and professional organizations recognized by
the board in subject areas acceptable to the board;
(c) formal
correspondence or other individual study programs which require registration
and provide evidence of satisfactory completion will qualify with the amount of
credit to be determined by the board.
(11) The
board may look to recognized state or national accounting organizations for
assistance in interpreting the acceptability of the credit to be allowed for
individual courses. The board will
accept programs meeting the standards set forth in the NASBA CPE registry,
AICPA guidelines, NASBA quality assurance service, or such other programs
deemed acceptable to the board.
(12) For
each three year reporting period, at least 96 of the hours reported shall be
courses, programs or seminars whose content is in technical fields of
study. Technical fields of study are
technical subjects that contribute to the maintenance and improvement of the
competence of a CPA in the profession of accountancy and that directly relate
to the CPA’s field of business.
Definitions of technical fields of study and non-technical fields of
study can be found in section 16.60.1.17 NMAC.
(13) Effective for CPE reporting periods ending on or after July 31, 2007,
for each three year reporting period, at least 24 of the hours reported shall
not include CPE sponsored by the licensee’s firm, agency, company, or
organization but may include all methods of CPE delivery, provided that each
hour meets the standards specified in paragraphs (1) through (10) of this
Subsection.
(14) For
each three year reporting period, credit will be allowed once for any single
course, program or seminar unless the individual can demonstrate that the
content of such course, program or seminar was subject to substantive technical
changes during the reporting period.
F. Programs not
qualifying for CPE:
(1) CPA
examination review or “cram” courses;
(2) industrial
development, community enhancement, political study groups or similar courses,
programs or seminars;
(3) courses,
programs or seminars that are generally for the purpose of learning a foreign
language;
(4) partner,
shareholder or member meetings, business meetings, committee service, and
social functions unless they are structured as formal programs of learning
adhering to the standards prescribed in this rule.
G. Continuing
professional education records requirements:
When applications to the board require evidence of CPE, the applicants
shall maintain such records necessary to demonstrate evidence of compliance
with requirements of this rule.
(1) Reinstatement
and reciprocity applicants shall file with their applications a signed report
form and statement of the CPE credit claimed.
For each course claimed, the report shall show the sponsoring
organization, location of program, title of program or description of content,
the dates attended, and the hours claimed.
(2) Responsibility
for documenting program acceptability and validity of credits rests with the
licensee and CPE sponsor. Such
documentation should be retained for a period of five years after program
completion and at minimum shall consist of the following:
(a) copy
of the outline prepared by the course sponsor along with the information
required for a program to qualify as acceptable CPE as specified in this rule;
or
(b) for
courses taken for scholastic credit in accredited universities and colleges, a
transcript reflecting completion of the course.
For non-credit courses taken, a statement of the hours of attendance,
signed by the instructor, is required.
(3) Institutional
documentation of completion is required for formal, individual
self-study/correspondence programs.
(4) The
board may verify CPE reporting information from applicants at its
discretion. Certificate
holders/licensees or prospective certificate holders/licensees are required to
provide supporting documentation or access to such records and documentation as
necessary to substantiate validity of CPE hours claimed. Certificate holders/licensees are required to
maintain documentation to support CPE hours claimed for a period of five years
after course completion/CPE reporting.
Should the board exercise its discretion to accept an affidavit in lieu
of a CPE report, the board shall audit certificate/license holder CPE rules
compliance of no less than 10 percent of active CPA/RPA licensees annually.
(5) In
cases where the board determines requirements have not been met, the board may
grant an additional period of time in which CPE compliance deficiencies may be
removed. Fraudulent reporting is a basis
for disciplinary action.
(6) An
individual who has submitted records of completion, or a sworn affidavit on
their renewal application as evidence of compliance with CPE requirements and
is found, as the result of a random audit, not to be in compliance will be
subject to a minimum $250.00 fine and any other penalties deemed appropriate by
the board as permitted by Subsection B of Section 20 of the act.
(7) The
sponsor of a continuing education program is required to maintain an outline of
the program and attendance/registration records for a period of five years
after program completion.
(8) Licensees
reporting of CPE must document their participation and retain evidence for a
period of five years after course completion. Documentation and/or evidence
must include, at minimum:
(a) sponsor
name and identification number;
(b) title
and description of content;
(c) date(s)
of completion;
(d) location;
(e) number
of credit hours; and
(f) name
of the registered licensee who completed the course.
(9) The
board may, at its discretion, examine certificate holder/licensee or CPE
sponsor documentation to evaluate program compliance with board rules. Non-compliance with established standards may
result in denial of CPE credit for non-compliant programs and may be a basis
for disciplinary action by the board for fraudulent documentation and
representation by a CPE sponsor or certificate holder/licensee of a knowingly
non-compliant CPE program.
[16.60.3.15 NMAC -
Rp 16 NMAC 60.6.6, 2/14/2002; A, 9/16/2002; A, 6/15/2004; A, 7/30/2004; A,
12/30/2004; A, 4/29/2005; A, 12/30/2005; A, 5/15/2006; A, 7/29/2007; A,
2/27/2009; A, 9/15/2010; A, 1/17/2013; A, 12/01/2014; A, 9/15/2015; A,
3/3/2017; A, 10/1/2020; A, 12/12/2021]
HISTORY OF 16.60.3 NMAC:
Pre-NMAC
History: Material in the part was derived from that
previously filed with the commission of public records - state records center
and archives:
BPA 84-2, Purpose,
filed 7/9/1984;
BPA Policy Statement
86-1, Interpreting Rule 607-I-B(5), filed 2/10/1986.
BPA Policy Statement
86-1, Amendment No. 1, Interpreting Rule 607-I-B(5), filed 3/10/1986
Section 14,
Continuing Professional Education, filed 11/13/1992
BPA 95-12,
Certification; Renewal, filed 4/21/1995.
BPA 95-13, Certification
by Reciprocity, filed 4/21/1995.
BPA 95-14, Permits,
Individuals, filed 4/21/1995.
BPA 95-19, Business
Names; Prohibitions, filed 4/21/1995.
BPA 95-21,
Reinstatement, filed 4/21/1995.
History of Repealed Material:
16 NMAC 60.4, Public
Accountants - Certification; Experience Requirements and Procedures, filed 9/27/1995
and 16 NMAC 60.6, Public Accountants - Continuing Professional Education, filed
9/27/1995, repealed effective 2/14/2002.
Other History:
16 NMAC 60.4, Public
Accountants - Certification; Experience Requirements and Procedures, filed 9/27/1995
and 16 NMAC 60.6, Public Accountants - Continuing Professional Education, filed
9/27/1995, replaced by 16.60.3 NMAC, Licensure and Continuing Professional
Education Requirements effective 2/14/2002.