16.60.3.15 CONTINUING PROFESSIONAL EDUCATION (CPE) REQUIRED TO OBTAIN OR MAINTAIN AN "ACTIVE" CPA LICENSE:

1. 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. (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. (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.

   1. (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.
   2. (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.

   3. (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.

      1. (a) The approval of an extension request is not automatic. The board has the discretion to grant or deny a request.
      2. (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.
      3. (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.
      4. (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.
      5. (e) The board may waive a fine for good cause or require community service acceptable to the board.
      6. (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.
   4. (6) Renewal applications and CPE reports received after prescribed deadlines shall include prescribed delinquency fees.
   5. (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.

   6. (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.

      1. (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.
      2. (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.
      3. (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.

3. B. Exemption from CPE requirements through change of certificate/license status between inactive/retired and active status.

   1. (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. (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. (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.

4. C. Persons requesting to change from "inactive" or "retired" to "active" certificate/license status shall:

   1. (1) complete board-prescribed change-of-status forms and remit related fees; and
   2. (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. (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.
5. 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.

6. 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. (1) The following standards will be used to measure the hours of credit to be given for acceptable CPE programs completed by individual applicants:

      1. (a) an hour is considered to be a 50-minute period of instruction;
      2. (b) a full one day program will be considered to equal eight hours;
      3. (c) only class hours or the equivalent (and not student hours devoted to preparation) will be counted;
      4. (d) one-half credit increments are permitted after the first credit has been earned in a given learning activity;
      5. (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.
      6. (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.
      7. (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. (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. (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. (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. (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. (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. (7) For a continuing education program to qualify under this rule, the following standards must be met:

      1. (a) an outline of the program is prepared in advance and preserved;
      2. (b) the program is at least one hour in length;
      3. (c) a qualified instructor conducts the program; and
      4. (d) a record of registration or attendance is maintained.

   8. (8) The following programs are deemed to qualify, provided the above are met:

      1. (a) professional development programs of recognized national and state accounting organizations;
      2. (b) technical sessions at meetings of recognized national and state accounting organizations and their chapters; and
      3. (c) no more than four hours CPE annually may be earned for board meeting attendance.
   9. (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. (10) Non-credit short courses - each class hour shall equal one hour toward the requirement and may include the following:

       1. (a) formal, organized in-firm educational programs;
       2. (b) programs of other accounting, industrial, and professional organizations recognized by the board in subject areas acceptable to the board;
       3. (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. (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. (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. (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. (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.

7. F. Programs not qualifying for CPE:

   1. (1) CPA examination review or “cram” courses;
   2. (2) industrial development, community enhancement, political study groups or similar courses, programs or seminars;
   3. (3) courses, programs or seminars that are generally for the purpose of learning a foreign language;
   4. (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.

8. 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. (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. (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:

      1. (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
      2. (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. (3) Institutional documentation of completion is required for formal, individual self-study/correspondence programs.
   4. (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. (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. (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. (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. (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:

      1. (a) sponsor name and identification number;
      2. (b) title and description of content;
      3. (c) date(s) of completion;
      4. (d) location;
      5. (e) number of credit hours; and
      6. (f) name of the registered licensee who completed the course.

   9. (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.

      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.

[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]