Part XXII.
Texas State Board of Public Accountancy
Chapter 511.
Certification as CPA
Subchapter C. Educational Requirements
22 TAC §511.57
The Texas State Board of Public Accountancy (Board) proposes
an amendment to §511.57, concerning Definition of Accounting Courses.
The amendment to §511.57 will restate and clarify the language deleted
from the previous rule requiring that the accounting courses must be acceptable
to the issuing institution and that at least 15 of the 30 hours must have
been taken on the issuing institutions' campus.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the amendment will be zero because the Board's scrutiny of
an application and transcript remains at the same level.
B. the estimated reductions in costs to the state and to local governments
as a result of enforcing or administering the amendment will be zero because
the Board's scrutiny of an application and transcript remains at the same
level.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the amendment will be zero because the Board's
scrutiny of an application and transcript remains at the same level.
Mr. Treacy has determined that for the first five-year period the amendment
is in effect the public benefits expected as a result of adoption of the proposed
amendment will be zero because the Board's scrutiny of an application and
transcript remains at the same level.
The probable economic cost to persons required to comply with the amendment
will be zero because the Board's scrutiny of an application and transcript
remains at the same level.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed amendment will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
amendment from any interested person. Comments must be received at the Board
no later than noon on Thursday August 26, 1999. Comments should be addressed
to Amanda G. Birrell, General Counsel, Texas State Board of Public Accountancy,
333 Guadalupe, Tower III, Suite 900, Austin, Texas 78701 or faxed to her attention
at (512) 305-7854.
Mr. Treacy has determined that the proposed amendment will not have an
adverse economic effect on small businesses because the Board's scrutiny of
an application and transcript remains the same.
The Board specifically invites comments from the public on the issues of
whether or not the proposed amendment will have an adverse economic effect
on small business; if the amendment is believed to have such an effect, then
how may the Board legally and feasibly reduce that effect considering the
purpose of the statute under which the amendment is to be adopted; and if
the amendment is believed to have such an effect, how the cost of compliance
for a small business compares with the cost of compliance for the largest
business affected by the amendment under any of the following standards: (a)
cost per employee; (b) cost for each hour of labor; or (c) cost for each $100
of sales. See Texas Government Code, §2006.002(c).
The proposed amendment is proposed under the Public Accountancy
Act, Texas Civil Statutes, Article 41a-1, 6(a) (Vernon Supp. 1998), which
authorizes the Board to adopt rules deemed necessary or advisable to effectuate
the Act.
No other article, statute or code is affected by this proposed amendment.
§511.57.Definition of Accounting Courses.
The board will accept not fewer than 30 passing semester hours of accounting
courses [
(1)
accounting core courses:
(A)
intermediate accounting, advanced accounting;
(B)
cost accounting;
(C)
auditing, internal accounting control and evaluation;
(D)
report writing (principally writing financial reports,
internal control reports, and management letters);
(E)
financial statement analysis;
(F)
accounting theory;
(G)
up to six semester hours of income tax;
(H)
accounting for governmental and/or other nonprofit organizations;
and
(I)
up to six semester hours of accounting systems, including
management information systems;
(2)
other accounting courses:
(A)
income tax accounting (not to exceed 12 semester hours,
including hours in paragraph (1)(G) of this section);
(B)
accounting systems, including management information systems
(not to exceed 12 semester hours, including hours in paragraph (1)(I) of this
section);
(C)
accounting consultation;
(D)
accounting for specialized businesses or industries (such
as fiduciaries, banks, etc.);
(E)
an accounting internship program (not to exceed 3 semester
hours) which meets the following requirements:
(i)
the accounting knowledge gained is equal to or greater
than the knowledge gained in a traditional accounting classroom setting;
(ii)
the employing firm provides the faculty coordinator and
the student with the objectives to be met during the internship;
(iii)
the internship is approved by the faculty advisor;
(iv)
the employing firm provides a significant accounting work
experience with adequate training and supervision of the work performed by
the student;
(v)
the employing firm provides an evaluation of the student
at the conclusion of the internship, provides a letter describing the duties
performed and the supervision to the student, and provides a copy of the documentation
to the faculty coordinator and the student;
(vi)
the student keeps a diary comprising a chronological list
of all work experience gained in the internship;
(vii)
the student writes a paper demonstrating the knowledge
gained in the internship; and
(viii)
the student and/or faculty coordinator provides evidence
of all items upon request by the board;
(F)
any other course which is principally accounting or auditing
in nature but which may be designated by some other name (and the verification
of which is obtained in writing from the particular college or university).
After the November 1997 examination, elementary accounting may not be considered
under this title.
This agency hereby certifies that the proposal
has been reviewed by legal counsel and found to be within the agency's legal
authority to adopt.
Filed with the Office of the Secretary of State, on
July 30, 1999.
TRD-9904644
William Treacy
Executive Director
Texas State Board of Public Accountancy
Earliest possible date of adoption: September 12, 1999
For further information, please call: (512) 305-7848
22 TAC §519.7
The Texas State Board of Public Accountancy (Board) proposes
an amendment to §519.7, concerning Administrative Penalties.
The amendment to §519.7 will change three citations to conform with
the codification of the Act. Another part of the amendment will assess a $100
administrative penalty against those licensees who do not satisfy the continuing
professional education (CPE) requirements. The Rules Committee recommends
that the Board interpret the CPE-administrative penalty as being applicable
only to those licensees who do not satisfy the CPE requirements and who are
also the subject of Board Orders.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the amendment will be zero because the amendment does not
cause any additional services to be performed or costs to be incurred by the
Board.
B. the estimated reductions in costs to the state and to local governments
as a result of enforcing or administering the amendment will be zero because
the amendment does not cause any additional services to be performed or costs
to be incurred by the Board or local governments.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the amendment will be an increase of approximately
$1,200 a year. The intent of the $100 administrative penalty is to encourage
prompt compliance with the Board's CPE requirements; it is not to raise funds.
Mr. Treacy has determined that for the first five-year period the amendment
is in effect the public benefits expected as a result of adoption of the proposed
amendment will be prompter compliance with the Board's CPE rules and a reduction
in the reoccurrence of belated compliance.
The probable economic cost to persons required to comply with the amendment
will be $100.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed amendment will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
amendment from any interested person. Comments must be received at the Board
no later than noon on Thursday August 26, 1999. Comments should be addressed
to Amanda G. Birrell, General Counsel, Texas State Board of Public Accountancy,
333 Guadalupe, Tower III, Suite 900, Austin, Texas 78701 or faxed to her attention
at (512) 305-7854.
Mr. Treacy has determined that the proposed amendment will not have an
adverse economic effect on small businesses because the penalty is only $100,
and it is applicable to only those small businesses who refuse to comply with
the CPE requirements. The cost per CPA employee would be $100 for only CPAs
who continue refuse to comply with the Board's requirements after notice and
a hearing. Each month the Board issues Notices of Hearings to approximately
200 licenses and conducts hearings against approximately 30 licenses. Of those
30 approximately 20 are the subject of Board Orders. All of the other 180
came into compliance after receipt of a notice of hearing, after a hearing
or after the issuance of a Proposal for Decision by an Administrative Law
Judge of the State Office of Administrative Hearings. Currently the 20 who
are the subject of Board Orders may have their license issued by merely reporting
completion of the CPE. The amendment would assess against these 20 a $100
administrative penalty.
The Board specifically invites comments from the public on the issues of
whether or not the proposed amendment will have an adverse economic effect
on small business; if the amendment is believed to have such an effect, then
how may the Board legally and feasibly reduce that effect considering the
purpose of the statute under which the amendment is to be adopted; and if
the amendment is believed to have such an effect, how the cost of compliance
for a small business compares with the cost of compliance for the largest
business affected by the amendment under any of the following standards: (a)
cost per employee; (b) cost for each hour of labor; or (c) cost for each $100
of sales. See Texas Government Code, §2006.002(c).
The proposed amendment is proposed under the Public Accountancy
Act, Texas Civil Statutes, Article 41a-1, 6(a) (Vernon Supp. 1998), which
authorizes the Board to adopt rules deemed necessary or advisable to effectuate
the Act. No other article, statute or code is affected by this proposed amendment.
§519.7.Administrative Penalties.
(a)
Board committees and the executive director are delegated
the authority to determine that any alleged violation warrants an administrative
penalty under
Subchapter L
[
(b)
The report of any such determination may be included in
a notice of hearing.
(c)
A request for a hearing under §
901.554
[
(d)
Pursuant to §901.551 of the Public
Accountancy Act:
(1)
the board imposes an administrative penalty
on licensees who, in violation of §901.411 of the Public Accountancy
Act:
(A)
do not complete at least 120 hours of continuing
professional education in each three-year license period;
(B)
do not complete at least 20 hours in each one-year
license period;
(C)
do not comply with board rules for the reporting
of continuing professional education.; or
(D)
fails to complete or report sufficient ethics
hours as required by board §523.63 of the board's rules (relating to
Mandatory Continuing Professional Education Attendance).
(2)
considering the seriousness of violation
of §901.411 of the Public Accountancy Act, the hazard and potential to
the public from CPAs who are not trained in current accounting standards and
practices, the amount necessary to deter future violations, and such other
matters as the board considers justice may require, the board sets the administrative
penalty for the violations described in §519.7(d)(1) of the rules (relating
to Administrative Penalties) at $100 per licensee per license period.
(3)
the penalty may be assessed only on licensees against
whom a final board order is issued.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of the Secretary of State, on
July 30, 1999.
TRD-9904641
William Treacy
Executive Director
Texas State Board of Public Accountancy
Earliest possible date of adoption: September 12, 1999
For further information, please call: (512) 305-7848
22 TAC §519.9
The Texas State Board of Public Accountancy (Board) proposes
an amendment to §519.9, concerning Procedures after Hearing.
The amendment to §519.9 will clarify that, if oral argument is granted,
there may not be any references to materials outside the administrative record.
Another part of the amendment adds the costs of evaluation of the file by
the Board's committees, the costs of support personnel and the Board's overhead
to those costs that may be assessed as administrative costs in contested case
hearings.
The 76th Legislature enacted Senate Bill 1438 with an effective date of
September 1, 1999. Senate Bill 1438 amended parts of the Public Accountancy
Act and added new Article 8930, known as the Self-Directed Semi-Independent
Agency Project Act ("SDSI"). SDSI requires that the Board of Public Accountancy
be financially independent of the state and that it generate revenue sufficient
to fund all of the Board's operations and internal expenses at the same level
of quality and quantity. Section 6(c) of SDSI also requires the Board to generate
and pay to the state a profit of $500,000 annually. This rule amendment is
in response to SDSI's requirements.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the amendment will be zero because the amendment does not
require the performance of additional services or the incurring of additional
expense by the state.
B. the estimated reductions in costs to the state and to local governments
as a result of enforcing or administering the amendment will be zero because
the amendment does not require the performance of additional services or the
incurring of additional expense by the state or local governments.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the amendment will be zero because the amendment
does not require the performance of additional services or the incurring of
additional expense by the state.
Mr. Treacy has determined that for the first five-year period the amendment
is in effect the public benefits expected as a result of adoption of the proposed
amendment will be increased recovery of the Board's expenses that are incurred
in prosecuting cases against licenses and compliance with SDSI.
The probable economic cost to persons required to comply with the amendment
will be zero for those licenses who do not violate the Act or the Rules. This
amendment does not require compliance; other rules require compliance. This
amendment assesses additional costs for non-compliance with those other rules.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed amendment will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
amendment from any interested person. Comments must be received at the Board
no later than noon on Thursday August 26, 1999. Comments should be addressed
to Amanda G. Birrell, General Counsel, Texas State Board of Public Accountancy,
333 Guadalupe, Tower III, Suite 900, Austin, Texas 78701 or faxed to her attention
at (512) 305-7854.
Mr. Treacy has determined that the proposed amendment will not have an
adverse economic effect on small businesses. To the extent that this amendment
may be perceived as being the source of the additional administrative cost
assessment, the economic effect on small businesses will vary depending on
the individual circumstances peculiar to each licensee at the administrative
hearing. In a previous contested one-day hearing the Board sought $3,782 in
administrative costs. However, the most common type of contested case hearings
are those that result in a default judgment being granted based on a licensee's
failure to appear at the hearing. One such default case assessed $637 in administrative
costs. The board estimates the additional costs will be about 10% of previous
costs. Thus, the estimated incremental cost per CPA-employee as a result of
this amendment will be approximately $378 for a one day contested hearing
and $64.00 for an uncontested hearing, but for only those CPA-employees who
proceed to a hearing.
The Board specifically invites comments from the public on the issues of
whether or not the proposed amendment will have an adverse economic effect
on small business; if the amendment is believed to have such an effect, then
how may the Board legally and feasibly reduce that effect considering the
purpose of the statute under which the amendment is to be adopted; and if
the amendment is believed to have such an effect, how the cost of compliance
for a small business compares with the cost of compliance for the largest
business affected by the amendment under any of the following standards: (a)
cost per employee; (b) cost for each hour of labor; or (c) cost for each $100
of sales. See Texas Government Code, §2006.002(c).
The proposed amendment is proposed under the Public Accountancy
Act, Texas Civil Statutes, Article 41a-1, 6(a) (Vernon Supp. 1998), which
authorizes the Board to adopt rules deemed necessary or advisable to effectuate
the Act and new article 8930, Civil Statutes.
No other article, statute or code is affected by this proposed amendment.
§519.9.Procedures after Hearing.
(a)
Filing of exceptions and replies. Any party of record may,
within 15 days of the date of service of the proposal for decision, unless
the administrative law judge has set a shorter or longer period of time, file
exceptions to the proposal for decision. Replies to these exceptions shall
be filed within 15 days after the date of filing the exceptions unless the
administrative law judge has set a shorter or longer period of time. A request
for extension or decrease of time within which to file exceptions or replies
shall be filed with the administrative law judge, and a copy of the request
shall be served on all parties of record by the party making the request.
The administrative law judge shall promptly notify the parties of the decision
with regard to these requests. Additional time shall be allowed only when
the interests of justice so require. Upon the expiration of the time for filing
exceptions or replies to exceptions, or after time for filing exceptions or
replies to exceptions, or after the replies and exceptions have actually been
timely filed, the proposal for decision will be considered by the board and
either adopted, modified and adopted, or remanded to the administrative law
judge. If remanded to the administrative law judge, the revised proposal for
decision thereafter rendered by the administrative law judge shall be clearly
labeled as an amended proposal for decision. A copy of the proposal for decision
shall be served forthwith by the administrative law judge on each party, or
each party's attorney of record, and the board. Service shall be in accordance
with the board's rules.
(b)
Form of exceptions and replies. Exceptions and replies
to exceptions shall conform as nearly as practicable to the rules provided
for pleadings. The specific exceptions shall be concisely stated. The evidence
relied upon shall be pointed out with particularity, and that evidence and
any arguments and legal authority relied upon shall be grouped under the exceptions
to which they relate. Any party filing exceptions and replies shall provide
the board with original and 17 copies.
(c)
Oral argument before the board. Any party may request oral
argument before the board before the final determination of any proceeding,
but the request must be filed in the offices of the board by no later than
5:00 p.m. of the fifth working day prior to the board meeting. Oral argument
shall be allowed only at the discretion of the board. A request for oral argument
may be incorporated in the exception, reply to exceptions, or in a separate
pleading. In the event oral argument is granted by the board, each party who
has filed exceptions and replies may be limited to a maximum of 20 minutes
for presentation thereof. The board shall require one spokesman per party
and position.
Under no circumstances may any party making oral argument
to the board refer to or urge reliance on materials that are not part of the
administrative record.
(d)
Motion for rehearing. In the event a motion for rehearing
is filed, the executive director shall have authority to act for the board
in either granting or denying such motion.
(e)
Administrative cost recovery rule. The board may for good
cause and in accordance with the Public Accountancy Act [
(f)
Changes to recommendation. To protect the public interest
and to ensure that sound accounting principles govern the decisions of the
board, it is the policy of the board to change a finding of fact or conclusion
of law or to vacate or modify the proposed order of an administrative law
judge when the proposed order is clearly:
(1)
erroneous;
(2)
against the weight of the evidence;
(3)
based on unsound accounting principles or auditing
standards;
(4)
based on an insufficient review of the evidence;
(5)
not sufficient to protect the public interest; or
(6)
not sufficient to adequately allow rehabilitation
of the licensee.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of the Secretary of State, on
July 30, 1999.
TRD-9904640
William Treacy
Executive Director
Texas State Board of Public Accountancy
Earliest possible date of adoption: September 12, 1999
For further information, please call: (512) 305-7848
22 TAC §521.1
The Texas State Board of Public Accountancy (Board) proposes
an amendment to §521.1 concerning License Fees.
The amendment to §521.1 will increase the practice unit annual license
fee from $40.00 to $50.00. The 76th Legislature enacted Senate Bill 1438 with
an effective date of September 1, 1999. Senate Bill 1438 amended parts of
the Public Accountancy Act and added new Article 8930, known as the Self-Directed
Semi-Independent Agency Project Act ("SDSI"). SDSI requires that the Board
of Public Accountancy be financially independent of the state and that it
generates revenue sufficient to fund all of the Board's operations and internal
expenses at the same level of quality and quantity. Section 6(c) of SDSI also
requires the Board to generate and pay to the state a profit of $500,000.00
annually. This rule amendment is in response to SDSI's requirements.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the amendment will be zero because the Board is already enforcing
this rule and the amendment is only an incremental fee increase.
B. the estimated reductions in costs to the state and to local governments
as a result of enforcing or administering the amendment will be zero because
this rule does not address anything that may affect costs to state or local
government.
C. the estimated loss in revenue to the state as a result of enforcing
or administering the amendment will be zero. The estimated increased revenue
will be $100,190.00 calculated by multiplying 10,019 registered practice units
times the proposed $10.00 increase.
Mr. Treacy has determined that for the first five-year period the amendment
is in effect the public benefits expected as a result of adoption of the proposed
amendment will be increased revenue to help offset some of the Board's costs
to operate and compliance with SDSI.
The probable economic cost to persons required to comply with the amendment
will be $10.00 per practice unit, and the smallest practice unit may consist
of only one CPA.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed amendment will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
amendment from any interested person. Comments must be received at the Board
no later than noon on Thursday, August 26, 1999. Comments should be addressed
to Amanda G. Birrell, General Counsel, Texas State Board of Public Accountancy,
333 Guadalupe, Tower III, Suite 900, Austin, Texas, 78701 or faxed to her
attention at (512) 305-7854.
Mr. Treacy has determined that the proposed amendment will not have an
adverse economic effect on small businesses because the incremental increase
is only $10.00 per small business, regardless of the number of CPAs or employees
who are engaged in the business. The Board has determined that the maximum
possible cost per employee of a small business is only $10.00 per year and
this applies to only those situations where the CPA is a sole proprietor and
is also the only employee of the sole proprietorship.
The Board specifically invites comments from the public on the issues of
whether or not the proposed amendment will have an adverse economic effect
on small business; if the amendment is believed to have such an effect, then
how may the Board legally and feasibly reduce that effect considering the
purpose of the statute under which the amendment is to be adopted; and if
the amendment is believed to have such an effect, how the cost of compliance
for a small business compares with the cost of compliance for the largest
business affected by the amendment under any of the following standards: (a)
cost per employee; (b) cost for each hour of labor; or (c) cost for each $100
of sales. See Texas Government Code, §2006.002(c).
The proposed amendment is proposed under the Public Accountancy
Act, Texas Civil Statutes, Article 41a-1, 6(a) (Vernon Supp. 1998), which
authorizes the Board to adopt rules deemed necessary or advisable to effectuate
the Act and new article 8930, Civil Statutes.
No other article, statute or code is affected by this proposed amendment.
§521.1.License Fees.
(a)
(No change.)
(b)
Effective with the
2000
[
(c)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on
July 30, 1999.
TRD-9904642
William Treacy
Executive Director
Texas State Board of Public Accountancy
Earliest possible date of adoption: September 12, 1999
For further information, please call: (512) 305-7848
22 TAC §521.2
The Texas State Board of Public Accountancy (Board) proposes
an amendment to §521.2 concerning Examination Fees.
The amendment to §521.2 will allow the board to reduce its losses
when it administers the Uniform CPA Examination ("UCPAE") and to comply with
a statutory mandate.
The 76th Legislature enacted Senate Bill 1438 with an effective date of
September 1, 1999. Senate Bill 1438 amended parts of the Public Accountancy
Act and added new Article 8930, known as the Self-Directed Semi-Independent
Agency Project Act ("SDSI"). SDSI requires that the Board of Public Accountancy
be financially independent of the state and that it generates revenue sufficient
to fund all of the Board's operations and internal expenses at the same level
of quality and quantity. Section 6(c) of SDSI also requires the Board to generate
and pay to the state a profit of $500,000.00 annually. This rule amendment
is in response to SDSI's requirements. The initial examination fee for the
UCPAE will be increased from $120.00 to $180.00. Subsequent examination fees
are being increased from $30.00 per subject to $60.00 for one subject, $90.00
for two subjects and $180.00 for four subjects.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the amendment will be zero because there is nothing to enforce;
if the fees are not paid, an applicant is not allowed to take the examination.
The administration is already occurring.
B. the estimated reductions in costs to local governments as a result of
enforcing or administering the amendment will be zero because the amendment
is not designed or intended to affect costs to local governments. The May
1999 examination resulted in a $2,416.46 loss to the board. This loss will
be eradicated by the proposed fee increase.
C. the estimated loss or increases in revenue to the state as a result
of enforcing or administering the amendment will be zero. The estimated revenue
to the board from enforcing or administering the proposed amendment will be
$154,447.15 net of expenses. This amount will be realized from the May 2000
examination if all of the estimated 4,149 applicants take the exam and re-exam
parts in the amounts projected by staff.
Mr. Treacy has determined that for the first five-year period the amendment
is in effect the public benefits expected as a result of adoption of the proposed
amendment will be that the Board will be able to reduce its losses when it
administers the UCPAE and will receive a partial contribution toward the annual
remittance required by SDSI.
The probable economic cost to persons required to comply with the proposed
amendment will be incremental; $60.00 for the initial UCPAE examination, $30.00
for being tested on one or two subjects and $60.00 for being tested on four
subjects.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed amendment will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
amendment from any interested person. Comments must be received at the Board
no later than noon on August 26, 1999. Comments should be addressed to Amanda
G. Birrell, General Counsel, Texas State Board of Public Accountancy, 333
Guadalupe, Tower III, Suite 900, Austin, Texas 78701 or faxed to her attention
at (512) 305-7854.
Mr. Treacy has determined that the proposed amendment will not have an
adverse economic effect on small businesses. Section 2006.001 of the Government
Code defines small business as being legal entities formed for profit, independently
owned and operated, and with either fewer than 100 employees or less than
$1 million in annual gross receipts. By statutory definition an examination
applicant is excluded from being a small business because only individuals
may take the examination and because only individuals may be awarded certificates.
However, without waiving the foregoing opinion that a CPA examination applicant
is not a small business and in an abundance of caution, the board will offers
this analysis of the effect of this rule. The worst-case scenario is that
of a small business comprised of only the examination applicant taking either
the initial examination or re-taking the examination on all four of the examination's
subjects. The incremental cost for each employee-applicant for either examination
is $60.00. This amount is not an adverse economic effect in view of the value
of a certificate as a Certified Public Accountant. Under the rule, only the
candidate is liable for any fees associated with the examination. It may be
that other business entities that employ candidates in capacities other than
as CPAs voluntarily reimburse those candidates for their expenses in taking
the examination. These voluntary payments are not required by the rule nor
could the board take action to compel these reimbursements. Therefore, these
voluntary payments are not considered in the analysis of the rule.
The Board also specifically invites comments from the public on the issues
of whether or not the proposed amendment will have an adverse economic effect
on small business; if the amendment is believed to have such an effect, then
how may the Board legally and feasibly reduce that effect considering the
purpose of the statute under which the amendment is to be adopted; and if
the amendment is believed to have such an effect, how the cost of compliance
for a small business compares with the cost of compliance for the largest
business affected by the amendment under any of the following standards: (a)
cost per employee; (b) cost for each hour of labor; or (c) cost for each $100
of sales. See Texas Government Code, §2006.002(c).
The proposed amendment is proposed under the Public Accountancy
Act, Texas Civil Statutes, Article 41a-1, 6(a) (Vernon Supp. 1998), which
authorizes the Board to adopt rules deemed necessary or advisable to effectuate
the Act and article 8930, Civil Statutes.
No other article, statute or code is affected by this proposed amendment.
§521.2.Examination Fees.
The following fees shall be effective for the Uniform CPA Examination.
(1)
The filing fee for initial examination applications shall
be $50. This is a non-refundable fee.
(2)
The fee for the initial examination conducted pursuant
to the Act shall be
$180
[
(A)
eligible for one subject--$60;
(B)
eligible for two subjects--$90; and
(C)
eligible for four subjects--$180.
This agency hereby certifies that the proposal
has been reviewed by legal counsel and found to be within the agency's legal
authority to adopt.
Filed with the Office of the Secretary of State, on
July 30, 1999.
TRD-9904643
William Treacy
Executive Director
Texas State Board of Public Accountancy
Earliest possible date of adoption: September 12, 1999
For further information, please call: (512) 305-7848
22 TAC §§526.1-526.7
(Editor's note: The text of the following sections proposed for
repeal will not be published. The sections may be examined in the offices
of the Texas State Board of Public Accountancy or in the Texas Register office,
Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas State Board of Public Accountancy (Board)
proposes the repeal of rules §§526.1-526.7 concerning Board Opinions.
The proposed repeal will delete dated unused internal procedural rules
and replace them with correct procedural rules.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed repeal will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the repeal will be zero because the repeal and re-write will
only streamline and update the rules and because the proposed rules do not
require anyone to do or not do anything that is not already occurring.
B. the estimated reductions in costs to the state and to local governments
as a result of enforcing or administering the repeal will be zero because
the repeal and re-write of these rules will only state the Board's current
opinion request procedures and because the proposed rules do not require anyone
to do or not do anything that is not already occurring.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the repeal will be zero because the repeal and
re-write of these rules will only state the Board's current opinion request
procedures and because the proposed rules do not require anyone to do or not
do anything that is not already occurring.
Mr. Treacy has determined that for the first five-year period the repeal
is in effect the public benefits expected as a result of adoption of the proposed
repeal will be zero because the repeal and re-write of these rules will only
state the Board's current opinion request procedures and because the proposed
rules do not require anyone to do or not do anything that is not already occurring.
The probable economic cost to persons required to comply with the repeal
will be zero because the repeal and re-write of these rules will only state
the Board's current opinion request procedures and because the proposed rules
do not require anyone to do or not do anything that is not already occurring.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed repeal will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
repeal from any interested person. Comments must be received at the Board
no later than noon on Thursday August 26, 1999. Comments should be addressed
to Amanda G. Birrell, General Counsel, Texas State Board of Public Accountancy,
333 Guadalupe, Tower III, Suite 900, Austin, Texas, 78701 or faxed to her
attention at (512) 305-7854.
Mr. Treacy has determined that the proposed repeal will not have an adverse
economic effect on small businesses because the repeal and re-write of these
rules will only state the Board's current opinion request procedures and because
the proposed rules do not require anyone to do or not do anything that is
not already occurring.
The Board specifically invites comments from the public on the issues of
whether or not the proposed repeal will have an adverse economic effect on
small business; if the repeal is believed to have such an effect, then how
may the Board legally and feasibly reduce that effect considering the purpose
of the statute under which the repeal is to be adopted; and if the repeal
is believed to have such an effect, how the cost of compliance for a small
business compares with the cost of compliance for the largest business affected
by the repeal under any of the following standards: (a) cost per employee;
(b) cost for each hour of labor; or (c) cost for each $100 of sales. See Texas
Government Code, §2006.002(c).
The proposed repeal is proposed under the Public Accountancy
Act, Texas Civil Statutes, Article 41a-1, 6(a) (Vernon Supp. 1998), which
authorizes the Board to adopt rules deemed necessary or advisable to effectuate
the Act.
No other article, statute or code is affected by this proposed repeal.
§526.1.Issuance of Opinions.
§526.2.Advisory Opinions.
§526.3.Procedure for Ratification of Advisory Opinions.
§526.4.Opinion Request.
§526.5.Procedure for Processing a Request for an Opinion.
§526.6.Board Consideration of Opinion Requests.
§526.7.Opinion Master File.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of the Secretary of State, on
July 30, 1999.
TRD-9904638
William Treacy
Executive Director
Texas State Board of Public Accountancy
Earliest possible date of adoption: September 12, 1999
For further information, please call: (512) 305-7848
22 TAC §§526.1-526.3
The Texas State Board of Public Accountancy (Board) proposes
new rules §§526.1-526.3 concerning Board Opinions.
The proposed new rules state the Board's current opinion request procedures.
These rules are the result of our agency's rule reviews process.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed new rules will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the rules will be zero because the repeal and re-write of
these rules only states the Board's current opinion request procedures and
because the proposed new rules do not require anyone to do or not do anything
that is not already occurring.
B. the estimated reductions in costs to the state and to local governments
as a result of enforcing or administering the rules will be zero because the
repeal and re-write of these rules only states the Board's current opinion
request procedures and because the proposed new rules do not require anyone
to do or not do anything that is not already occurring.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the rules will be zero because the repeal and re-write
of these rules only state the Board's current opinion request procedures and
because the proposed new rules do not require anyone to do or not do anything
that is not already occurring.
Mr. Treacy has determined that for the first five-year period the rule
is in effect the public benefits expected as a result of adoption of the proposed
new rules will be that the rules correctly state the Board's current opinion
request procedures.
The probable economic cost to persons required to comply with the rules
will be zero because the repeal and re-write of these rules will only state
the Board's current opinion request procedures and because the proposed new
rules do not require anyone to do or not do anything that is not already occurring.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed new rules will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
new rules from any interested person. Comments must be received at the Board
no later than noon on Thursday August 26, 1999. Comments should be addressed
to Amanda G. Birrell, General Counsel, Texas State Board of Public Accountancy,
333 Guadalupe, Tower III, Suite 900, Austin, Texas, 78701 or faxed to her
attention at (512) 305-7854.
Mr. Treacy has determined that the proposed new rules will not have an
adverse economic effect on small businesses because the rules address internal
procedures and because the repeal and re-write of these rules will only state
the Board's current opinion request procedures and because the proposed new
rules do not require anyone to do or not do anything that is not already occurring.
The Board specifically invites comments from the public on the issues of
whether or not the proposed new rules will have an adverse economic effect
on small business; if the rule is believed to have such an effect, then how
may the Board legally and feasibly reduce that effect considering the purpose
of the statute under which the rule is to be adopted; and if the rule is believed
to have such an effect, how the cost of compliance for a small business compares
with the cost of compliance for the largest business affected by the rule
under any of the following standards: (a) cost per employee; (b) cost for
each hour of labor; or (c) cost for each $100 of sales. See Texas Government
Code, §2006.002(c).
The proposed new rules are proposed under the Public Accountancy
Act, Texas Civil Statutes, Article 41a-1, 6(a) (Vernon Supp. 1998), which
authorizes the Board to adopt rules deemed necessary or advisable to effectuate
the Act.
No other article, statute or code is affected by the proposed new rules.
§526.1.Issuance of Opinions.
The board may issue opinions upon the written request of any person.
These opinions shall be based on actual, not hypothetical, fact situations
submitted in accordance with board instructions and shall be limited to areas
within the board's jurisdiction.
§526.2.Procedure.
(a)
The appropriate board committee will review requests for
opinions and recommend action to the board. All recommendations will be submitted
for consideration by the board at a regularly scheduled meeting.
(b)
The board will consider the recommendation of the committee
and will:
(1)
decline to ratify the recommendation of the committee;
(2)
approve or amend the recommendation of the committee
and issue an opinion; or
(3)
take such other action as the board may deem appropriate.
§526.3.Advisory Opinions.
The board's staff, board members or committee members may issue an
opinion to any person with a cover letter clearly identifying that the opinion
is advisory in nature, is restricted to the fact situation identified in the
opinion, and is not binding unless ratified by the board at a regularly scheduled
board meeting.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on
July 30, 1999.
TRD-9904639
William Treacy
Executive Director
Texas State Board of Public Accountancy
Earliest possible date of adoption: September 12, 1999
For further information, please call: (512) 305-7848
Chapter 593.
Licenses
22 TAC §593.7
The Structural Pest Control Board proposes amendments to
22 TAC Section 593.7 concerning Fees. The proposed amendments specify increased
fees for business, certified applicator, technician, original and renewal
licenses, for duplicate licenses and for reissuing licenses. The amendments
also specify new and increased fees for administering exams in each category
and for continuing education course approvals, specifying the fees based on
increments of six (6) months.
Benny M. Mathis, Executive Director has determined that there will be fiscal
implications as a result of enforcing or administering the rule.
Effect on state government for the first five year period the rule will
be in effect:
2000 2001 2002 2003 2004
Estimated additional cost $143,589 143,589 143,589 143,589
Estimated reduction in cost None None None None
Estimated loss or increase in revenue (per year) $143,589 143,589 143,589
143,589
Effect on local government for the first five year period the rule will
be in effect:
2000 2001 2002 2003
Estimated additional cost $16,699 16,699 16,699 16,699
Estimated reduction in cost None None None None
Estimated loss or increase in revenue (per year) $16,699 16,699 16,699
16,699
The cost of compliance with the rule for small business will be:
Business-$12.00 per year
Certified Applicators-$6.00 per year
Compare the cost of compliance for small business with the cost of compliance
for the largest businesses affected by the rule, based on at least one of
the following:
cost per employee Business Licensee-$12.00 per year
Certified Applicator-$6.00 per year
Technician-$9.00 per year
cost per hour of labor None
Cost per $100 of sales None
Benny M. Mathis, Executive Director has determined that for each year of
the first five years the rule as proposed is in effect, the public benefits
anticipated as a result of enforcing the rule as proposed will be increased
capacity of the Structural Pest Control Board to provide procedures and processes
to administer and enforce the Act and Board rules for the benefit of the customer/consumer;
the licensee/service provider and to the public at large.
The anticipated economic cost to individuals who are required to comply
with the rule as proposed will be:
Business Licenses-$12.00 per year
Certified Applicator-$6.00 per year
Technician-$9.00 per year
Comments may be submitted to William F. Greve, Jr., General Counsel, Structural
Pest Control Board, 1106 Clayton Lane #100LW, Austin, Texas 78723.
The amendment is proposed under TEX.REV.CIV.STAT.ANN., Article
135b-6, which provides the Structural Pest Control Board with the authority
to license and regulate the structural pest control industry.
The following is the (statutes, articles or code) that are affected by
this rule:
Rule Number Statute, Article or Code
22 TAC 593.7. Article 135b-6
22 TAC 593.21.
22 TAC 593.24.
22 TAC 593.5.
§593.7.Fees.
(a)
Applicants, [
(1)
$144 for an original or renewal of business license;
[
(2)
$72 for an original or renewal of a certified
applicators license;
[
(3)
$45 for an original or renewal of a technician
license;
[
(4)
$30 for duplicate business license, certified
applicator license or technician license when the original has been lost
or destroyed;
[
(5)
$30 for reissuing a business license, certified
applicators license or technician license due to a name change in the license;
[
(6)
$40 for administering exams in each category;
[
(7)
$37.50 for late renewal fee for up to
thirty
(30) days late;
(8)
$75 for late renewal fee for
thirty one
(31)-
sixty
(60) days late;
(9)
$75 for continuing education course.
(b)
The following fees are based on increments
of six (6) months.
(1)
Business License Fees
(A)
Issued/Renewed for 1-6 months $72.00
(B)
Issued/Renewed for 7-12 months $144.00
(C)
Issued/Renewed for 12-18 months $216.00
(2)
Certified Applicator License Fees
(A)
Issued/Renewed for 1-6 months $72.00
(B)
Issued/Renewed for 7-12 months $72.00
(C)
Issued/Renewed for 12-18 months $108.00
(3)
Technician License Fees
(A)
Issued/Renewed for 1-6 months $22.50
(B)
Issued/Renewed for 7-12 months $45.00
(C)
Issued/Renewed for 12-18 months $67.50
This agency hereby certifies that the proposal
has been reviewed by legal counsel and found to be within the agency's legal
authority to adopt.
Filed with the Office of the Secretary of State on July
29, 1999.
TRD-9904591
Benny M. Mathis, Jr.
Executive Director
Structural Pest Control Board
Earliest possible date of adoption: September 12, 1999
For further information, please call: (512) 451-7200
22 TAC §593.21
The Structural Pest Control Board proposes amendments of
22 TAC Section 593.21. concerning Technician License Requirements. The proposed
amendments remove the reference to the specific fees of $36 and $30, and restate
the fees provisions for each application and for each examination category.
Benny M. Mathis, Executive Director has determined that there will not
be fiscal implications as a result of enforcing or administering the rule.
There will be no estimated additional cost, estimated reduction in cost or
estimated loss or increase in revenue on state or local government for the
first five year period the rule will be in effect. There will be no cost
of compliance with the rule for small businesses. There will be no cost per
employee, cost per hour of labor or cost per $100 of sales by small or the
largest of businesses.
Benny M. Mathis, Executive Director has determined that for each year of
the first five years the rule as proposed is in effect, the public benefits
anticipated as a result of enforcing the rule as proposed will be better understanding
of the rule by the customer/consumer, the licensee/service provider and the
public at large, and the better application and enforcement of the rule for
the benefit of the customer/consumer and the public at large.
There is no anticipated economic cost to individuals who are required to
comply with the rule as proposed.
Comments on the proposal may be submitted to William F. Greve, Jr., General
Counsel, Structural Pest Control Board, 1106 Clayton Lane #100LW, Austin,
Texas 78723.
The amendment is proposed under TEX.REV.CIV.STAT.ANN., Article
135b-6, which provides the Structural Pest Control Board with the authority
to license and regulate the structural pest control industry.
The following is the (statutes, articles or code) that are affected by
this rule:
Rule Number Statute, Article or Code
22 TAC 593.21. Article 135b-6
22 TAC 593.7.
§593.21.Technician License Requirements.
(a)-(e)
(No change.)
(f)
A fee shall be charged for each application.
[
(g)-(k)
(No change.)
(l)
An apprentice becomes a licensed technician by:
(1)
(No change.)
(2)
making a passing grade on the technician examination.
(A)
(No change.)
(B)
There shall be a fee charged per category.
[
(C)-(E)
(No change.)
(3)-(4)
(No change.)
(m)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on July
29, 1999.
TRD-9904592
Benny M. Mathis, Jr.
Executive Director
Structural Pest Control Board
Earliest possible date of adoption: September 12, 1999
For further information, please call: (512) 451-7200
22 TAC §593.24
The Structural Pest Control Board proposes amendments of
22 TAC Section 593.24 concerning Criteria and Evaluation of Continuing Education.
The proposed amendment specifies the continuing education course annual approval
and monitoring fee as $75 in lieu of the fee otherwise specified.
Benny M. Mathis, Executive Director has determined that there will not
be fiscal implications as a result of enforcing or administering the rule.
There will be no estimated additional cost, estimated reduction in cost
or estimated loss or increase in revenue to state or local government for
the first five year period the rule will be in effect. There will be no cost
of compliance to small businesses, nor cost per employee, cost per hour of
labor or cost per $100 of sales to small or larger businesses.
Benny M. Mathis, Executive Director has determined that for each year of
the first five years the rule as proposed is in effect, the public benefits
anticipated as a result of enforcing the rule as proposed will be increased
capacity of the Structural Pest Control Board to provide procedures and processes
to administer and enforce the Act and Board rules for the benefit of the customer/consumer;
the licensee/service provider and to the public at large.
There is no anticipated economic cost to individuals who are required to
comply with the rule as proposed.
Comments on the proposal may be submitted to William F. Greve, Jr., General
Counsel, Structural Pest Control Board, 1006 Clayton Lane #100LW, Austin,
Texas 78723.
The amendment is proposed under TEX.REV.CIV.STAT.ANN., Article
135b-6, which provides the Structural Pest Control Board with the authority
to license and regulate the structural pest control industry.
The following is the (statutes, articles or code) that are affected by
this rule:
Rule Number Statute, Article or Code
22 TAC 593.24. Article 135b-6
22 TAC 593.7.
§593.24.Criteria and Evaluation of Continuing Education.
(a)-(c)
(No change.)
(d)
Each continuing education program submitted for approval
will be accompanied by:
(1)-(3)
(No change.)
(4)
a non-refundable annual fee of
$75
[
(e)-(i)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on July
29, 1999.
TRD-9904593
Benny M. Mathis, Jr.
Executive Director
Structural Pest Control Board
Earliest possible date of adoption: September 12, 1999
For further information, please call: (512) 451-7200
Chapter 661.
General Rules of Procedures and Practices
Subchapter C. Definitions of Terms
(
]without repeat
.
[
)
]
A recognized
educational institution must have accepted them for purposes of obtaining
a baccalaureate degree or its equivalent, and they must be shown on an official
transcript. At least 15 of these hours must result from physical attendance
at classes, meeting regularly on the campus of any transcript-issuing institution.
Not less than 20 semester hours must be in core accounting courses in the
following subject areas:
[
, taken at a recognized educational
institution shown on official transcripts, or accepted by a recognized educational
institution for purposes of obtaining a baccalaureate degree or its equivalent,
of which 20 semester hours must be in core accounting courses, in the following
subject areas:
]
Chapter 519.
Practice and Procedure
Section 21D
] of the Public
Accountancy Act.
21D(d)
] of the Public Accountancy Act shall clearly notify the
staff that the hearing must address issues relevant to the assessment of an
administrative penalty by including the language "RESPONDENT SPECIFICALLY
REQUESTS A HEARING ON ADMINISTRATIVE PENALTIES" in capital letters. Failure
to include such language shall be a waiver of the right to a hearing within
the meaning of §
901.554
[
21(D)(d)
] of the Public
Accountancy Act.
of 1991
],
after notice and hearing, impose direct administrative costs in addition to
other sanctions provided by law or these rules. Direct administrative costs
include, but are not limited to, attorneys' fees, investigative costs,
including the costs of the evaluation of the file by the board's committees,
witness fees and deposition expenses, travel expenses of witnesses,
fees for professional services of expert witnesses, the cost of a study, analysis,
audit, or other projects the board finds necessary in preparation of the state's
case
, paralegal fees and the costs of other support personnel in the
enforcement process, and the boards associated overhead costs.
Chapter 521.
Fee Schedule
1998
] license,
the annual fee for a license issued to a practice unit shall be
$50
[
$40
] and may not be prorated.
$120
]. The fee for any subsequent
examination shall be
apportioned as follows:
[
$30 per subject.
]
Chapter 526.
Board Opinions
Part XXV.
Structural Pest Control Board
and
] licensees
and continuing education providers
will be charged the following fees:
[
for Board Service:
]
$132 for an original or renewal of a business license;
]
$66 for an original or renewal of a certified
applicators license;
]
$36 for an original or renewal technician license;
]
$20 for duplicate business license, certified applicators
license or technician license when the original has been lost or destroyed;
]
$20 for reissuing a business license, certified applicators
license or technician license due to a name change in the license;
]
$30 for administering exams in each category;
]
A $36 fee must be included with the application.
]
The fee for this examination is $30 per category
]
$60
] for consideration of the course for approval and monitoring for
the calendar year. Non-profit organizations are exempt from this fee if the
course is presented as a part of the legally mandated function of the organization.
Part XXIX.
Texas Board of Professional Land Surveying