All Roll Calls
Yes: 100 • No: 1
New MexicoHB 2962025 Regular SessionHouseWALLET
PUBLIC ACCOUNTANT LICENSURE REQUIREMENTS
Sponsored By: Cristina Parajón (Democratic)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 0 benefits, 1 costs, 6 mixed.
Accountants must report credential and firm changes
Beginning January 1, 2026, certificate and firm-permit applicants must disclose domestic and foreign credential histories and relevant proceedings. Certificate holders and firms must report credential issuances, denials, revocations, suspensions, and disciplinary actions in writing within 30 days. The deadline also covers the start of reportable disciplinary or enforcement proceedings. Firms must report specified changes in ownership, offices, and office personnel within 30 days.
Accounting firms face permits and exceptions
Beginning January 1, 2026, accounting firms generally need a New Mexico permit for attest work or using CPA titles. Qualifying firms without New Mexico offices can avoid permits while meeting licensing, ownership, supervision, peer-review, and state-oversight requirements. Firms covered by the law's attest and nonattest exceptions can also use CPA titles without a permit. A simple majority of firm ownership must belong to accountants licensed in U.S. states. Active owners based in New Mexico must hold New Mexico certificates, and firms with unlicensed owners must name a qualified compliance overseer. Each New Mexico office must register, attest work needs qualified supervision, and permit renewal requires peer review. Permits last no more than two years and expire June 30 of the renewal year. Fees are capped at $100 annually or $200 for two years. The board must decide permit applications within 90 days and can grant provisional permits for up to 90 days during appeals. Firms can receive up to six months to fix ownership or staffing violations before permit suspension or revocation.
Financial statement preparers face disclosure rules
Beginning January 1, 2026, unlicensed financial-statement preparers must include a disclosure in their transmittal letter unless a statutory exemption applies. It must say the work only prepared information supplied by management, without an audit, review, or assurance. Licensed authority is otherwise required for client reports and financial statements, subject to statutory exemptions. The law bars misleading professional titles, unauthorized practice, and fraudulent credential sales or applications. It restricts undisclosed commissions and referral fees tied to audit, review, compilation, and examination services. It also bars contingent fees for original or amended tax returns, refund claims, audits, reviews, independence-sensitive compilations, and examinations of future financial information. Supervisor and engagement rules also protect independence, and the State Auditor and auditing staff fall under practice enforcement.
Accountants face renewal rules and fees
Beginning January 1, 2026, certificate renewals require proof of continuing education that meets New Mexico board rules. The board can exempt holders who do not serve the public; they must display “inactive” or “retired” beside their title. Nonresidents can meet their main business state's education rules instead, if that state requires continuing education. They must attest to compliance on their renewal application. Certificate issuance and renewal fees are capped at $175 annually, or $350 for two years. Incomplete or late education reports or renewals can carry fees up to $100. Education-waiver and reentry applications can each cost up to $75; credential or exam information reports can cost up to $75. Records, copies, and replacements can carry reasonable administrative fees. Unpaid renewal fees can block renewal, and payment more than 90 days overdue can lead to cancellation. Reinstatement requires an application, board approval, and up to $175 plus overdue fees and penalties.
Foreign-trained accountants face credential checks
Beginning January 1, 2026, the board can certify foreign credential holders whose licensing standards match or exceed New Mexico's. The foreign authority must regulate public accountancy and offer similar recognition to New Mexico certificate holders. The credential must be current, unsuspended, unrevoked, and allow reports on financial statements. Applicants must meet the required experience in the granting jurisdiction or complete four years of professional accounting experience in New Mexico. They must also pass a national qualifying exam and a board-accepted exam on New Mexico law, rules, and ethics.
Out-of-state accountants gain access with oversight
Beginning January 1, 2026, qualifying accountants based outside New Mexico can practice without a New Mexico certificate, notice, or fee. Their valid U.S. license must meet the law's education, experience, and examination standards. They must accept New Mexico board oversight and legal service and follow state accountancy rules. Those doing attest work, such as audits, must meet New Mexico's attest requirements and stop if their home-state license becomes invalid. Out-of-state credential holders can also seek a New Mexico certificate through the law's recognition process. That route requires qualifying exam scores and accounting experience within the preceding 10 years. Credentials issued more than four years before application also trigger continuing-education requirements. New Mexico certificate holders can face discipline for out-of-state acts that support discipline in that jurisdiction.
Updated paths to becoming an accountant
Beginning January 1, 2026, New Mexico accepts three education and work paths for certified public accountant certification. A bachelor's degree plus 30 extra accounting or business semester hours requires one year of accounting experience. A bachelor's with an accounting or business concentration requires two years; a master's with either concentration requires one year. Qualifying work can come from government, business, academia, or public practice, but a qualified certified public accountant must verify it. Applicants must meet good-character rules, including restrictions on dishonest or felonious acts. The computer-based exam is continuously available, and its four sections can be taken in any order. Each section requires a scaled score of 75; all four must be passed within 30 months after the first passing score is released. Earlier credits expire outside that window. Exam fees are capped at $400 per section, and fingerprinting or background-check fees at $100. The board must decide complete certificate applications within 120 days and can grant provisional certificates for up to 90 days during appeals.
Sponsors & Cosponsors
Sponsor
Cristina Parajón
Democratic • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 3/20/2025
Final Senate Vote
Yes: 39 • No: 1
House vote • 3/5/2025
Final House Vote
Yes: 61 • No: 0
Actions Timeline
Signed by Governor - Chapter 105 - Apr. 8
4/8/2025SenatePassed in the Senate - Y:39 N:1
3/20/2025SenateSJC: Reported by committee with Do Pass recommendation
3/17/2025SenateSent to SJC - Referrals: SJC
3/5/2025SenatePassed in the House of Representatives - Y:61 N:0
3/5/2025HouseHJC: Reported by committee with Do Not Pass but with a Do Pass recommendation on Committee Substitution
3/4/2025HouseHCEDC: Reported by committee with Do Not Pass but with a Do Pass recommendation on Committee Substitution
2/19/2025HouseSent to HCEDC - Referrals: HCEDC/HJC
2/5/2025Senate
Bill Text
Final Version
4/9/2025
SJC Committee Report 3/17/25
3/17/2025
HJC Committee Report 3/04/25
3/4/2025
HJC Committee Substitute 3/04/25
3/4/2025
HCEDC Committee Report 2/19/25
2/19/2025
HCEDC Committee Substitute 2/19/25
2/19/2025
Introduced
2/5/2025