TITLE 22.EXAMINING BOARDS

Part 6. TEXAS BOARD OF PROFESSIONAL ENGINEERS

Chapter 131. PRACTICE AND PROCEDURE

Subchapter A. BYLAWS AND DEFINITIONS

22 TAC §131.20

The Texas Board of Professional Engineers adopts an amendment to §131.20, relating to Committees, without changes to the proposed text as published in the November 14, 2003, issue of the Texas Register (28 TexReg 10011) and will not be republished.

The adopted amendment adds the Policy Advisory Opinion Committee to the board's standing committee rule. The purpose of this committee is to prepare policy advisory opinions for the board as required by §1001.601 and §1001.602 of the Occupations Code.

No comments were received regarding the board's adoption of the amended section.

The amendment is adopted pursuant to the pursuant to the Texas Engineering Practice Act, Occupations Code §1001.202, which authorizes the board to make and enforce all rules and regulations and bylaws consistent with the Act as necessary for the performance of its duties, the governance of its own proceedings, and the regulation of the practice of engineering in this state.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 16, 2004.

TRD-200400304

Victoria J.L. Hsu, P.E.

Executive Director

Texas Board of Professional Engineers

Effective date: February 5, 2004

Proposal publication date: November 14, 2003

For further information, please call: (512) 440-7723


Subchapter H. LICENSING

1. PROFESSIONAL ENGINEER LICENSE

22 TAC §131.133

The Texas Board of Professional Engineers adopts an amendment to §131.133, relating to Professional Designations that adds a category of inactive licensed engineer as provided in Senate Bill 277, 78th Legislature. The amended section is adopted without changes to the proposed text as published in the November 14, 2003, issue of the Texas Register (28 TexReg 10012) and will not be republished.

Approximately 2,000 license holders do not renew licenses in Texas each year because they are no longer practicing engineering. The amendment provides for a licensed engineer to not practice, yet to remain licensed without having to meet the continuing education required of active licensed professional engineers. It also removes the requirement to pay the annual $200 professional license fee. The provisions of this amendment are consistent with other similar licensing organizations. The amendment also provides for reactivation requirements including payment of the professional fee and meeting specified continuing education program requirements.

No comments were received regarding the board's adoption of the amended section.

The amendment is adopted pursuant to the Texas Engineering Practice Act, Occupations Code §1001.202, which authorizes the board to make and enforce all rules and regulations and bylaws consistent with the Act as necessary for the performance of its duties, the governance of its own proceedings, and the regulation of the practice of engineering in this state; and pursuant to the Texas Engineering Practice Act, Occupations Code §1001.355 of the Act, which delegates to the board the authority to create an inactive status and determine reactivation requirements.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 16, 2004.

TRD-200400305

Victoria J.L. Hsu, P.E.

Executive Director

Texas Board of Professional Engineers

Effective date: February 5, 2004

Proposal publication date: November 14, 2003

For further information, please call: (512) 440-7723


22 TAC §131.139

The Texas Board of Professional Engineers adopts new §131.139, relating to the Continuing Education Program (CEP), with changes to the proposed text as published in the November 7, 2003, issue of the Texas Register (28 TexReg 9668). The text of the rule will be republished.

The adopted new section sets forth the requirements and conditions for the Continuing Education program required by Section 17 of SB277, 78th Regular Session of the Texas Legislature, 2003. The adopted new section is structured after the national CEP model. The adopted new section sets the CEP requirements for license renewal, defines acceptable activities for CEP credit, describes requirements for reporting CEP credits, lists exemptions from the CEP policy, describes the CEP requirements for activating an inactive or retired license, and describes noncompliance.

The adopted new section has been drafted to recognize the legislative intent to allow self determination of CEP activities and content by the license holder and builds on this intent by establishing a method of accounting and reporting CEP credits. The adopted new section has been developed to enhance the professional development of license holders while not imposing inappropriate requirements on their professional activities. The list of acceptable activities, equivalent CEP time values, methods for determination of credit, and exemptions is standard compared to the national CEP model and a review of CEP systems of other states. The inclusion of an audit process enhances the continuing education program by maintaining a strict record retention requirement while reducing the reporting requirement for license holders for every renewal cycle.

The board has received numerous comments during the public comment period regarding the board's adoption of the amended section. The board has received: 3 comments concerning adding an exemption for license holders over the age of 65; 5 comments concerning PDH credit allowed for presentations at associations or societies; 10 comments concerning the financial burden and activity availability for small business and sole proprietorships; 3 comments concerning fractional hours and PDH credits; 3 comments concerning raising the PDH limits for societies and associations; 2 comments concerning raising the PDH limit and counting multiple administrations of a course for teaching; 3 comments concerning exemptions for active and reserve military as well as associated DOD civilians; 1 comment concerning an exemption for working overseas; 3 comments concerning clarification of reporting requirements; 1 comment concerning carrying forward PDH for ethics; 2 comments concerning a time limit for makeup of unacceptable PDH credits; 4 comments concerning lowering the number of required PDH/year; 1 comment concerning clarification of language for inactive status exemption; 3 comments concerning raising the PDH limit for self-study; 2 comments concerning raising the PDH hours granted for a patent; and 1 comment against CEP altogether. Over 200 other general questions or comments have been received by the board.

The board has adopted the rule as proposed with the following non-substantive changes: clarification of the exemption for military personnel; clarification of association, society, or organization presentations; and increase of credits for patents.

The new section is adopted pursuant to the Texas Occupations Code, Chapter 1001.202, which authorizes the board to make and enforce all rules and regulations and bylaws consistent with the Act as necessary for the performance of its duties, the governance of its own proceedings, and the regulation of the practice of engineering in this state (formerly Texas Engineering Practice Act, Tex. Rev. Civ. Stat. Ann. art. 3271a, §8); and the Texas Occupations Code, Chapter 1001.210, which authorizes the creation and administration of a continuing education program for engineering license holders.

§131.139.Continuing Education Program.

(a) Each license holder shall meet the Continuing Education Program (CEP) requirements for professional development as a condition for license renewal.

(b) Terms used in this section are defined as follows:

(1) Professional Development Hour (PDH)--A contact hour (clock hour) of CEP activity. PDH is the basic unit for CEP reporting.

(2) Continuing Education Unit (CEU)--Unit of credit customarily used for continuing education courses. One continuing education unit equals 10 hours of class in an approved continuing education course.

(3) College/Unit Semester/Quarter Hour--Credit for course in ABET-approved program or other related college course.

(4) Course/Activity--Any qualifying course or activity with a clear purpose and objective which will maintain, improve, or expand the skills and knowledge relevant to the license holder's field of practice.

(c) Every license holder is required to obtain 15 PDH units during the renewal period year.

(d) A minimum of 1 PDH per renewal period must be in the area of professional ethics, roles and responsibilities of professional engineering, or review of the Texas Engineering Practice Act and Board Rules.

(e) If a license holder exceeds the annual requirement in any renewal period, a maximum of 15 PDH units may be carried forward into the subsequent renewal period. Professional Development Hours must not be anticipated and cannot be used for more than one renewal period.

(f) PDH units may be earned as follows:

(1) Successful completion or auditing of college credit courses.

(2) Successful completion of continuing education courses, either offered by a professional or trade organization, university or college, or offered in-house by a corporation, other business entity, professional or technical societies, associations, agencies, or organizations, or other group.

(3) Successful completion of correspondence, on-line, televised, videotaped, and other short courses/tutorials.

(4) Presenting or attending seminars, in-house courses, workshops, or professional or technical presentations made at meetings, conventions, or conferences sponsored by a corporation, other business entity, professional or technical societies, associations, agencies, or organizations, or other group.

(5) Teaching or instructing as listed in paragraphs (1) through (4) of this subsection.

(6) Authoring published papers, articles, books, or accepted licensing examination items.

(7) Active participation in professional or technical societies, associations, agencies, or organizations, including:

(A) Serving as an elected or appointed official;

(B) Serving on a committee of the organization;

(C) Serving in other official positions.

(8) Patents Issued.

(9) Engaging in self-directed study.

(g) All activities described in §131.139(f) of this title shall be relevant to the practice of a technical profession and may include technical, ethical, or managerial content.

(h) The conversion of other units of credit to PDH units is as follows:

(1) 1 College or unit semester hour--15 PDH

(2) 1 College or unit quarter hour--10 PDH

(3) 1 Continuing Education Unit--10 PDH

(4) 1 Hour of professional development in course work, seminars, or professional or technical presentations made at meetings, conventions, or conferences--1 PDH

(5) 1 Hour of professional development through self-directed study (Not to exceed 5 PDH)--1 PDH

(6) Each published paper, article, or book--10 PDH

(7) Active participation in professional or technical society, association, agency, or organization (Not to exceed 5 PDH per organization)--1 PDH

(8) Each patent issued--15 PDH

(9) Other activities shall be credited at 1 PDH for each hour of participation in the activity.

(i) Determination of Credit

(1) The Board shall be the final authority with respect to whether a course or activity meets the requirements of these rules.

(2) The Board shall not pre-approve or endorse any CEP activities. It is the responsibility of each license holder to assure that all PDH credits claimed meet CEP requirements.

(3) Credit for college or community college approved courses will be based upon course credit established by the college.

(4) Credit for seminars and workshops will be based on one PDH unit for each hour of attendance. Attendance at programs presented at professional and/or technical society meetings will earn PDH units for the actual time of each program.

(5) Credit for self-directed study will be based on one PDH unit for each hour of study and is not to exceed 5 PDH per renewal period. Credit determination for self-directed study is the responsibility of the license holder and subject to review as required by the board.

(6) Credit determination for activities described in subsection (h)(4) of this section is the responsibility of the license holder and subject to review as required by the board.

(7) Credit for activity described in subsection (h)(7) of this section requires that a license holder serve as an officer of the organization, actively participate in a committee of the organization, or serve in other official positions. PDH credits are not earned until the end of each year of service is completed.

(8) Teaching credit is valid for teaching a course or seminar for the first time only.

(j) The license holder is responsible for maintaining records to be used to support credits claimed. Records required include, but are not limited to:

(1) a log showing the type of activity claimed, sponsoring organization, location, duration, instructor's or speaker's name, and PDH credits earned; and

(2) attendance verification records in the form of completion certificates or other documents supporting evidence of attendance.

(k) The license holder must submit CEP certification and a list of each activity, date, and hours claimed that satisfy the CEP requirement for that renewal year with the renewal application and fee.

(l) CEP records for each license holder must be maintained for a period of three years by the license holder.

(m) CEP records for each license holder are subject to audit by the board or its authorized representative.

(1) Copies must be furnished, if requested, to the Board or its authorized representative for audit verification purposes.

(2) If upon auditing a license holder, the Board finds that the activities cited do not fall within the bounds of educational, technical, ethical, or professional management activities related to the practice of engineering; the board may require the license holder to acquire additional PDH as needed to fulfill the minimum CEP requirements.

(n) A license holder may be exempt from the professional development educational requirements for one of the following reasons listed in paragraphs (1)-(4) of this subsection:

(1) New license holders by way of examination shall be exempt for their first renewal period.

(2) A license holder serving on active duty and deployed outside the United States, its possessions and territories, in or for the military service of the United States for a period of time exceeding one hundred twenty (120) consecutive days in a year shall be exempt from obtaining the professional development hours required during that year.

(3) License holders experiencing physical disability, illness, or other extenuating circumstances as reviewed and approved by the board may be exempt. Supporting documentation must be furnished to the board.

(4) License holders who list their status as "Retired" or "Inactive" and who further certify that they are no longer receiving any remuneration from providing professional engineering services in Texas shall be exempt from the professional development hours required.

(o) A license holder may bring an inactive license to active status by obtaining all delinquent PDH units. However, if the total number required to become current exceeds 30, then 30 shall be the maximum number required.

(p) Noncompliance:

(1) If an engineer does not certify that CEP requirements have been met for a renewal period, the license shall be considered expired and subject to late fees and penalties.

(2) A determination by audit that CEP requirements have been falsely reported shall be considered to be misconduct and will subject the license holder to disciplinary action.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 16, 2004.

TRD-200400312

Victoria J.L. Hsu, P.E.

Executive Director

Texas Board of Professional Engineers

Effective date: February 5, 2004

Proposal publication date: November 7, 2003

For further information, please call: (512) 440-7723


2. REGISTRATION OF FIRMS

22 TAC §131.144

The Texas Board of Professional Engineers adopts new §131.144, relating to Firm Registration Compliance, without changes to the proposed text as published in the November 14, 2003, issue of the Texas Register (28 TexReg 10013) and will not be republished.

This adopted rule relates to the implementation of a statutory requirement to allow firms to voluntarily comply with firm registration requirements within 30 days of written notice from the board and not be assessed an administrative penalty for lacking firm registration. This provision does not apply to those firms who have registered and let that registration lapse.

No comments were received regarding the board's adoption of the new section.

The new section is adopted pursuant to the Texas Engineering Practice Act, Title 6, Subtitle A, Chapter 1001 of the Occupations code, which authorizes the board to make and enforce all rules and regulations and bylaws consistent with the Act as necessary for the performance of its duties, the governance of its own proceedings, and the regulation of the practice of engineering in this state; and pursuant to the Texas Engineering Practice Act, Title 6, Subtitle A, Chapter 1001.405 of the Occupations code, which delegates to the board the authority to adopt rules to allow a 30 day grace period for firm registrations.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 16, 2004.

TRD-200400306

Victoria J.L. Hsu, P.E.

Executive Director

Texas Board of Professional Engineers

Effective date: February 5, 2004

Proposal publication date: November 14, 2003

For further information, please call: (512) 440-7723


Subchapter J. COMPLIANCE AND ENFORCEMENT

22 TAC §131.167

The Texas Board of Professional Engineers adopts amendments to §131.167, relating to Disciplinary Actions, without changes to the proposed text as published in the November 14, 2003, issue of the Texas Register (28 TexReg 10014) and will not be republished.

In the adopted amendments, the board includes newly mandated statutory requirements relating to ability to require restitution as part of an informal conference settlement, conditions of probation for probated suspended licenses, and disciplinary actions for practicing while on inactive status and falsifying continuing education documentation. In addition, the rule and suggested sanction tables used by the board in determining disciplinary actions and administrative penalties have been updated to correct references to statute for the recently re-codification of the Texas Engineering Practice Act.

No comments were received regarding the board's adoption of the amended section.

The amendment is adopted pursuant to the Texas Engineering Practice Act, Title 6, Subtitle A, Chapter 1001 of the Occupations code, which authorizes the board to make and enforce all rules and regulations and bylaws consistent with the Act as necessary for the performance of its duties, the governance of its own proceedings, and the regulation of the practice of engineering in this state; and pursuant to the Texas Engineering Practice Act, Title 6, Subtitle A, Subchapters J, K, and L of the Occupations code, which delegates to the board the authority to enforce the Act and take disciplinary action against those who violate the Act.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 16, 2004.

TRD-200400307

Victoria J.L. Hsu, P.E.

Executive Director

Texas Board of Professional Engineers

Effective date: February 5, 2004

Proposal publication date: November 14, 2003

For further information, please call: (512) 440-7723


22 TAC §131.168

The Texas Board of Professional Engineers adopts amendments to §131.168, relating to Actions Against Non License Holders, without changes to the proposed text as published in the November 14, 2003, issue of the Texas Register (28 TexReg 10016) and will not be republished.

In the adopted amendments, the board modifies the existing rule to make it consistent with proposed changes to Subchapter K: Complaints.

No comments were received regarding the board's adoption of the amended section.

The amendment is adopted pursuant to the Texas Engineering Practice Act, Title 6, Subtitle A, Chapter 1001 of the Occupations Code, which authorizes the board to make and enforce all rules and regulations and bylaws consistent with the Act as necessary for the performance of its duties, the governance of its own proceedings, and the regulation of the practice of engineering in this state; and pursuant to the Texas Engineering Practice Act, Title 6, Subtitle A, Subchapters J, K, and L of the Occupations Code, which delegates to the board the authority to enforce the Act and take action against those who violate the Act.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 16, 2004.

TRD-200400308

Victoria J.L. Hsu, P.E.

Executive Director

Texas Board of Professional Engineers

Effective date: February 5, 2004

Proposal publication date: November 14, 2003

For further information, please call: (512) 440-7723


Subchapter K. COMPLAINTS

22 TAC §§131.171 - 131.173

The Texas Board of Professional Engineers adopts the repeal of §§131.171-131.173 under Subchapter K: Complaints, without changes to the proposal as published in the November 14, 2003, issue of the Texas Register (28 TexReg 10016) and will not be republished. The board is re-proposing this Subchapter in its entirety with new statutory mandates concurrently with this repeal.

No comments were received regarding the board's adoption of the repeal.

The repeals are adopted pursuant to the Texas Engineering Practice Act, Occupations Code §1001.202, which authorizes the board to make and enforce all rules and regulations and bylaws consistent with the Act as necessary for the performance of its duties, the governance of its own proceedings, and the regulation of the practice of engineering in this state; and pursuant to the Texas Engineering Practice Act, §1001.252 Occupations Code, which requires the board to specify by rule the process of complaint investigation and disposition.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 16, 2004.

TRD-200400309

Victoria J.L. Hsu, P.E.

Executive Director

Texas Board of Professional Engineers

Effective date: February 5, 2004

Proposal publication date: November 14, 2003

For further information, please call: (512) 440-7723


22 TAC §§131.171 - 131.177

The Texas Board of Professional Engineers adopts new board rules §§131.171-131.177 under Subchapter K: Complaints, relating to the receipt, investigation, resolution and reporting of complaints, without changes to the proposed text as published in the November 14, 2003, issue of the Texas Register (28 TexReg 10017) and will not be republished.

The new rules also prescribe the board's statutory authority to hire technical consultants to assist in the investigation and resolution of complaints. In conjunction with the adopted new rules, the board has adopted repeal of the existing rules, §§131.171-131.173, relating to Complaints.

As a result of the Sunset process, Chapter 1001 had several amendments relating to the receipt and processing of complaints and the adopted new rules serve to address these statutory mandates. The new rules prescribe the form of a complaint, the process for the board to receive a complaint, and the prioritization of complaints to ensure public safety concerns are addressed in advance of other complaints. In addition the new rules set forth the board's investigative authority and process and ability to obtain technical consultants and grant them immunity when acting in the official capacity of the board. The new rules address the final resolution of a complaint including the board's authority to pursue disciplinary action as prescribed in board rules §131.167, relating to Disciplinary Actions and §131.168, Actions Against Non-License Holders. The new rules also set forth the complaint reporting requirements mandated by the statute.

No comments were received regarding the board's adoption of the new sections.

The new rules are adopted pursuant to the Texas Engineering Practice Act, Title 6, Subtitle A, Chapter 1001 of the Occupations code, which authorizes the board to make and enforce all rules and regulations and bylaws consistent with the Act as necessary for the performance of its duties, the governance of its own proceedings, and the regulation of the practice of engineering in this state; and pursuant to the Texas Engineering Practice Act, Title 6, Subtitle A, Chapter 1001.252 of the Occupations code, which requires the board to specify by rule the process of complaint investigation and disposition.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 16, 2004.

TRD-200400310

Victoria J.L. Hsu, P.E.

Executive Director

Texas Board of Professional Engineers

Effective date: February 5, 2004

Proposal publication date: November 14, 2003

For further information, please call: (512) 440-7723


Subchapter M. POLICY ADVISORY OPINIONS

22 TAC §§131.301 - 131.307

The Texas Board of Professional Engineers adopts a new Subchapter M relating to Policy Advisory Opinions containing new §§131.301-131.307, without changes to the proposed text as published in the November 14, 2003, issue of the Texas Register (28 TexReg 10019) and will not be republished.

These new sections set forth the process and procedures the board will follow to issue and maintain advisory opinions regarding the interpretation and application of Chapter 1001, Occupations Code, as required by §1001.601 and §1001.602.

The adopted sections define an advisory opinion and set forth procedures for requesting an opinion from the board. The prescribed process allows for the executive director to receive and make preliminary determination on the nature of the advisory request. Advisory requests shall then be presented to a new standing committee formed specifically to review and prepare advisory opinions for the board as adopted in amendments to §131.20, relating to Committees. The provisions require the board to involve stakeholders and other resources as necessary to develop and prepare an opinion. Once a draft opinion is prepared, the new sections require the board to publish the draft opinion on the board website and in the Texas Register for comment. After a 30 day comment period, the policy advisory committee will consider comments and revise the draft opinion as necessary and prepare a final opinion recommendation for the full board. The new sections allow the full board to adopt the opinion or refer it back to the committee for further action. Notice of adoption will be published in the Texas Register . The adopted rules require the board to classify the advisory opinions and make them available on the agency website. And, finally, the new sections require the board to complete this process within 180 days as required by statute.

The board received comments regarding the procedure for reconsidering or revising an issued opinion in response to the board notice to adopt the new rules. In discussion, the board believes the proposed rules allow for this action and therefore adopt without changes.

The new sections are adopted pursuant to the Texas Engineering Practice Act, Occupations Code §1001.202, which authorizes the board to make and enforce all rules and regulations and bylaws consistent with the Act as necessary for the performance of its duties, the governance of its own proceedings, and the regulation of the practice of engineering in this state; and pursuant to the Texas Engineering Practice Act, Occupations Code §1001.601 and §1001.602 of the Act, which requires the board to issue advisory opinions and make them available on the agency website.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 16, 2004.

TRD-200400311

Victoria J.L. Hsu, P.E.

Executive Director

Texas Board of Professional Engineers

Effective date: February 5, 2004

Proposal publication date: November 14, 2003

For further information, please call: (512) 440-7723


Part 22. TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY

Chapter 501. RULES OF PROFESSIONAL CONDUCT

Subchapter A. GENERAL PROVISIONS

22 TAC §501.51, §501.52

The Texas State Board of Public Accountancy adopts an amendment to §501.51 concerning Preamble and General Principles and §501.52 concerning Definitions in Subchapter A regarding General Provisions without changes to the proposed text as published in the November 28, 2003 issue of the Texas Register (28 TexReg 10651). The text of the rules will not be republished.

The amendment to §501.51 was changed in subsection (e) to numerically list the services to which the board's rules apply and to add internal auditing and forensic accounting to that list of services. Subsection (e) was further changed to delete the statement that licensees practicing outside the United States should comply with that country's standards. New subsection (h) was added to provide an interpretive comment specifically stating that outsourced internal audit services are client practice engagements. The amendment to §501.52 adds a new paragraph (21) to the rule which states that the practice of public accountancy is defined in the Public Accountancy Act. These amendments are the result of rule review conducted pursuant to §2001.039 of the Government Code. Government Code §2001.039 requires that each state agency review and consider for readoption each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). The Board has reviewed §§501.51 and 501.52 in Subchapter A and has determined that the reasons for adopting continue to exist, however, changes were necessary as described in this preamble. The Board published a Notice of Intention to Review Title 22, TAC, Part 22, Chapter 501 in the February 7, 2003 issue of the Texas Register (28 TexReg 1234). No comments were received following publication of the notice.

The amendment to §501.51 will function by making it clear that outsourced internal audit services are considered by the board to be client practice engagements. The amendment to §501.52 will function by creating a new subsection (21) that directs readers to the statutory definition of the practice of public accountancy.

No comments were received regarding adoption of these rules.

The amendments are adopted under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act and §2001.039 of the Government Code Chapter 2001 (Administrative Procedure Act) that requires that each state agency review and consider for readoption each rule adopted by that agency.

No other article, statute or code is affected by these adoptions.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 15, 2004.

TRD-200400256

Rande Herrell

General Counsel

Texas State Board of Public Accountancy

Effective date: February 4, 2004

Proposal publication date: November 28, 2003

For further information, please call: (512) 305-7848


Subchapter C. RESPONSIBILITIES TO CLIENTS

22 TAC §§501.71, 501.73, 501.75 - 501.77

The Texas State Board of Public Accountancy adopts amendments to §501.71 concerning Receipt of Commissions and Other Compensation, §501.73 concerning Integrity and Objectivity, §501.75 concerning Confidential Client Communications, §501.76 concerning Records and Work Papers and §501.77 concerning Acting through Others in Subchapter C regarding Responsibilities to Clients without changes to the proposed text as published in the November 28, 2003 issue of the Texas Register (28 TexReg 10654). The text of the rules will not be republished.

The amendment to §501.71 adds a new subsection (f) that refers to §501.73 for payment of commissions. The amendment to §501.73 adds a new subsection (f) that makes reference to the section on Other Professional Standards. The amendment to §501.75 deletes "court proceedings" because it is restrictive and replaces "peer" reviews with "quality" reviews. The amendment to §501.76 in subsection (f), increases the record keeping period for attest services to five years. Failure to maintain such records has been added as a violation of this section. New subsection (g) recommends licensees obtain documentation of delivery of records to a client. The amendment to §501.77 adds "including non-CPA owners and employees" to subsection (a). These amendments are the result of rule review conducted pursuant to §2001.039 of the Government Code. Government Code §2001.039 requires that each state agency review and consider for readoption each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). The Board has reviewed §§501.71, 501.73, 501.75, 501.76, and 501.77 in Subchapter C and has determined that the reasons for adopting continue to exist, however, changes were necessary as described in this preamble. The Board published a Notice of Intention to Review Title 22, TAC, Part 22, Chapter 501 in the February 7, 2003 issue of the Texas Register (28 TexReg 1234). No comments were received following publication of the notice.

The amendment to §501.71 will function by creating a new subsection (f) that refers readers to §501.73 for payment of fees. The amendment to §501.73 will function by creating a new subsection (f) that directs readers to other sections for other possible issues. The amendment to §501.75 will function by making the rule easier for readers to understand. The amendment to §501.76 will function by having documents and working papers retained for longer periods. The amendment to §501.77 will function by clarifying that it applies to non-CPA owners and employees.

No comments were received regarding adoption of these rules.

The amendments are adopted under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act and §2001.039 of the Government Code Chapter 2001 (Administrative Procedure Act) that requires that each state agency review and consider for readoption each rule adopted by that agency.

No other article, statute or code is affected by these adoptions.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 15, 2004.

TRD-200400257

Rande Herrell

General Counsel

Texas State Board of Public Accountancy

Effective date: February 4, 2004

Proposal publication date: November 28, 2003

For further information, please call: (512) 305-7848


Subchapter D. RESPONSIBILITIES TO THE PUBLIC

22 TAC §§501.80, 501.81, 501.85

The Texas State Board of Public Accountancy adopts amendments to §501.80 concerning Practice of Public Accountancy, §501.81 concerning Firm License Requirements and §501.85 concerning Complaint Notice in Subchapter D concerning Responsibilities to the Public without changes to the proposed text as published in the November 28, 2003, issue of the Texas Register (28 TexReg 10657). The text of the rules will not be republished.

The amendment to §501.80 adds a new subsection (c) to the rule, which states that the section incorporates the definitions of the practice of public accountancy, professional services, and accounting work found in other sections and the Act. The amendment to §501.81 adds a new subsection (f) to the rule that requires a licensee who is employed by an unlicensed entity that offers the client practice of public accountancy services to use the disclaimer in subsection (c). The amendment to §501.85 simplifies the board's address by changing Roman Numeral III to 3. These amendments are the result of rule review conducted pursuant to §2001.039 of the Government Code. Government Code §2001.039 requires that each state agency review and consider for readoption each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). The Board has reviewed §§501.80, 501.81 and 501.85 in Subchapter D and has determined that the reasons for adopting continue to exist, however, changes were necessary as described in this preamble. The Board published a Notice of Intention to Review Title 22, TAC, Part 22, Chapter 501 in the February 7, 2003, issue of the Texas Register (28 TexReg 1234). No comments were received following publication of the notice.

The amendment to §501.80 will function by incorporating other named definitions found in other cited sections into this section. The amendment to §501.81 will function by creating a better understanding as to when licensees employed by unlicensed firms must use the disclaimer. The amendment to §501.85 will function by simplifying the Board's address.

No comments were received regarding adoption of these rules.

The amendments are adopted under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act and §2001.039 of the Government Code Chapter 2001 (Administrative Procedure Act) that requires that each state agency review and consider for readoption each rule adopted by that agency.

No other article, statute or code is affected by these adoptions.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 15, 2004.

TRD-200400258

Rande Herrell

General Counsel

Texas State Board of Public Accountancy

Effective date: February 4, 2004

Proposal publication date: November 28, 2003

For further information, please call: (512) 305-7848


Subchapter E. RESPONSIBILITIES TO THE BOARD/PROFESSION

22 TAC §§501.90 - 501.93

The Texas State Board of Public Accountancy adopts amendments to §501.90 concerning Discreditable Acts, §501.91 concerning Reportable Events, §501.92 concerning Frivolous Complaints and §501.93 concerning Responses in Subchapter E regarding Responsibilities to the Board/Profession without changes to the proposed text as published in the November 28, 2003, issue of the Texas Register (28 TexReg 10658). The text of the rules will not be republished.

The amendment to §501.90 adds a new part to paragraph (5) of the rule. The new part states that a final conviction, imposition of deferred adjudication or community supervision for a crime involving moral turpitude, alcohol abuse or controlled substances is a discreditable act. New paragraph (19) adds a reference to Board Rule 519.16 and also states that any crime involving moral turpitude, alcohol abuse or controlled substances directly relates to the practice of public accountancy and defines moral turpitude as a crime involving grave infringement of the moral sentiment of the community. The amendment to §501.91 moves "any crime of which fraud or dishonesty is an element" from subparagraph (A) to (C). It also moves language regarding the qualifications, functions or duties of a public accountant from subparagraph (B) to subparagraph (D). The remaining part of subparagraph (B) is re-written to include only crimes of moral turpitude. Subparagraph (C) adds crimes involving alcohol abuse and controlled substances to the list of crimes that must be reported to the Board. The amendment to §501.92 adds a "registration" holder to the rule, as a person who must comply with this section. The amendment to §501.93 adds "faxing" and "facsimile" to the methods the Board may use to communicate with its licensees. These amendments are the result of rule review conducted pursuant to §2001.039 of the Government Code. Government Code §2001.039 requires that each state agency review and consider for readoption each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). The Board has reviewed §§501.90, 501.91, 501.92 and 501.93 in Subchapter E and has determined that the reasons for adopting continue to exist, however, changes were necessary as described in this preamble. The Board published a Notice of Intention to Review Title 22, TAC, Part 22, Chapter 501 in the February 7, 2003, issue of the Texas Register (28 TexReg 1234). No comments were received following publication of the notice.

The amendment to §501.90 and §501.91 will function by clearly stating that crimes involving moral turpitude, alcohol abuse or controlled substances will continue to be investigated and prosecuted by the Board as discreditable acts. The amendment to §501.92 will function by removing an inapplicable term. The amendment to §501.93 will function by adding the use of facsimiles as a means to communicate with its licensees.

No comments were received regarding adoption of these rules.

The amendments are adopted under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act and §2001.039 of the Government Code Chapter 2001 (Administrative Procedure Act) that requires that each state agency review and consider for readoption each rule adopted by that agency.

No other article, statute or code is affected by these adoptions.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 15, 2004.

TRD-200400259

Rande Herrell

General Counsel

Texas State Board of Public Accountancy

Effective date: February 4, 2004

Proposal publication date: November 28, 2003

For further information, please call: (512) 305-7848


Chapter 511. CERTIFICATION AS A CPA

Subchapter B. CERTIFICATION BY EXAMINATION

22 TAC §511.22

The Texas State Board of Public Accountancy adopts an amendment to §511.22 concerning Initial Filing of the Application of Intent without changes to the proposed text as published in the November 28, 2003, issue of the Texas Register (28 TexReg 10660). The text of the rule will not be republished.

The amendment to §511.22 will make modifications needed to implement the computer-based Uniform CPA Examination. The amendment will make some minor editorial corrections, insert an acronym for the lengthy name of a law, substitute notarized copy for certified copy, and clarify the documentation that is required to comply with a federal statute. This amendment is the result of rule review conducted pursuant to §2001.039 of the Government Code. Government Code §2001.039 requires that each state agency review and consider for readoption each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). The Board has reviewed §511.22 and has determined that the reasons for adopting continue to exist, however, changes were necessary as described in this preamble. The Board published a Notice of Intention to Review Title 22, TAC, Part 22, Chapter 511 in the February 7, 2003, issue of the Texas Register (28 TexReg 1234). No comments were received following publication of the notice.

The amendment will function by making the rule easier to understand and provide clearer information about federally required documentation.

No comments were received regarding adoption of the rule.

The amendment is adopted under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act, §901.302 which authorizes applications of intent, and the Federal Responsibility and Work Opportunity Reconciliation Act of 1996 and §2001.039 of the Government Code Chapter 2001 (Administrative Procedure Act) that requires that each state agency review and consider for readoption each rule adopted by that agency.

No other article, statute or code is affected by the adoption.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 15, 2004.

TRD-200400260

Rande Herrell

General Counsel

Texas State Board of Public Accountancy

Effective date: February 4, 2004

Proposal publication date: November 28, 2003

For further information, please call: (512) 305-7848


22 TAC §511.29

The Texas State Board of Public Accountancy adopts new rule §511.29 concerning Examination Candidate Data with a change to the proposed text as published in the November 28, 2003, issue of the Texas Register (28 TexReg 10662). The non-substantive change is in subsection (a) in which the acronym (NASBA) was moved to the correct location within the rule.

The new rule §511.29 will assist in implementing the computer based Uniform CPA Examination. With exam candidates' authorization, the board will provide candidate data to NASBA so it may maintain a national database of eligible exam candidates. This new rule is the result of rule review conducted pursuant to §2001.039 of the Government Code. Government Code §2001.039 requires that each state agency review and consider for readoption each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). The Board published a Notice of Intention to Review Title 22, TAC, Part 22, Chapter 511 in the February 7, 2003, issue of the Texas Register (28 TexReg 1234). No comments were received following publication of the notice.

The new rule will function by vetting exam candidates through a national database, and eligible exam candidates will be able to take the Uniform CPA Examination at any approved testing center in the United States.

No comments were received regarding adoption of the rule.

The new rule is adopted under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act, §901.301 which authorizes the board to contract with another entity to conduct the Uniform CPA Examination and §2001.039 of the Government Code Chapter 2001 (Administrative Procedure Act) that requires that each state agency review and consider for readoption each rule adopted by that agency.

No other article, statute or code is affected by the adoption.

§511.29.Examination Candidate Data.

(a) The board shall provide candidate data to the National Association of State Boards of Accountancy (NASBA) for the sole and specific purpose of maintaining the national candidate database of individuals eligible for the Uniform CPA Examination.

(b) In compliance with §901.160(c)(1) of the Public Accountancy Act (Chapter 901 of the Occupations Code - Vernon's 2003), the Board shall obtain authorization from the candidate for the sharing of data with NASBA.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 15, 2004.

TRD-200400261

Rande Herrell

General Counsel

Texas State Board of Public Accountancy

Effective date: February 4, 2004

Proposal publication date: November 28, 2003

For further information, please call: (512) 305-7848


Subchapter C. EDUCATIONAL REQUIREMENTS

22 TAC §511.52, §511.56

The Texas State Board of Public Accountancy adopts an amendment to §511.52 concerning Recognized Colleges and Universities and §511.56 concerning Educational Qualifications under the Act without changes to the proposed text as published in the November 28, 2003, issue of the Texas Register (28 TexReg 10662). The text of the rules will not be republished.

The amendment to §511.52 deletes an associate degree as one of the criteria. The preamble submitted with the proposal for rule §511.56 erroneously stated that the amendment increased the hours of accounting coursework required from 20 hours to 30 semester hours. The correct reason for the amendment is as follows: The amendment to §511.56 deletes the requirement in subsection (b)(3) that 20 of the 30 semester hours of accounting courses include accounting core courses. These amendments are the result of rule review conducted pursuant to §2001.039 of the Government Code. Government Code §2001.039 requires that each state agency review and consider for readoption each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). The Board has reviewed §511.52 and §511.56 and has determined that the reasons for adopting continue to exist, however, changes were necessary as described in this preamble. The Board published a Notice of Intention to Review Title 22, TAC, Part 22, Chapter 511 in the February 7, 2003, issue of the Texas Register (28 TexReg 1234). No comments were received following publication of the notice.

The amendment to §511.52 will function by making the rule clearer as to which categories of colleges or universities are eligible for consideration. The amendment to §511.56 will function by not requiring that 20 of the 30 semester hours of accounting courses include core courses.

No comments were received regarding adoption of these rules.

The amendments are adopted under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act, § 901.254 which authorizes the board to determine accounting concentration by board rule and §2001.039 of the Government Code Chapter 2001 (Administrative Procedure Act) that requires that each state agency review and consider for readoption each rule adopted by that agency.

No other article, statute or code is affected by the adoption.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 15, 2004.

TRD-200400262

Rande Herrell

General Counsel

Texas State Board of Public Accountancy

Effective date: February 4, 2004

Proposal publication date: November 28, 2003

For further information, please call: (512) 305-7848


Subchapter D. CPA EXAMINATION

22 TAC §§511.70, 511.72, 511.83, 511.84, 511.87, 511.91, 511.93

The Texas State Board of Public Accountancy adopts an amendment to §511.70 concerning Grounds for Disciplinary Action of Candidates, §511.72 concerning Uniform Examination, §511.83 concerning Granting of Credit by Transfer of Credit, §511.84 concerning Partial Examination after Transfer of Credit, §511.87 concerning Loss of Credit, §511.91 concerning Board Responsibilities Regarding Requested Accommodations for Disabilities, and §511.93 concerning Applicant's Responsibility for Requesting Accommodations for Disabilities in Subchapter D regarding CPA Examination without changes to the proposed text as published in the November 28, 2003, issue of the Texas Register (28 TexReg 10663). The text of the rules will not be republished.

The amendments to §511.70 and §511.72 (except for one clarification statement in §511.70 regarding using devices, materials or documents), are non-substantive editorial changes necessary to recognize and implement the change from a written Uniform CPA Examination conducted at a few board selected, controlled and supervised examination centers to a computer-based Uniform CPA Examination conducted at several testing centers under the supervision and control of testing center vendors that were selected by and are under contract to NASBA, which has contracted with the board to administer the examination.

The amendment to §511.83 creates a pre-January 1, 2004 window of time in which an exam candidate may earn partial credit that may be transferred with a grade of at least 50, creates a post-January 1, 2004 opportunity to transfer credit earned with a grade of at least 75 and creates in both instances the requirement that the other jurisdiction awarded credit to the candidate and that the credit has not expired.

The amendment to §511.84 creates deadlines by which a candidate allowed conditional credit for transfer of credit must pass the remaining subjects or forfeit the conditional credit. A candidate with credit earned between September 1, 1989 and November 2, 2000 has the next six consecutive examinations in which to pass all parts of the exam. A candidate with credit earned between November 2, 2000 and January 1, 2004 has the next six written or computer examinations in which to pass all parts of the exam. A candidate who earns credit after January 1, 2004 has the next 18 months in which to pass all parts of the exam.

The amendment to §511.87 has several editorial changes for clarification.

The amendment to §511.91 eliminates the statement that all examination facilities will be physically accessible to disabled applicants because the computer-based examination testing centers will not be selected by or under the control of the board and because new section §511.104 states that all testing centers will conform to the standards of the Americans with Disabilities Act of 1990.

The amendment to §511.93 shifts the deadline for applying for accommodation from the application for examination deadline to the time of filing an Application of Intent or an Examination Application.

These amendments are the result of rule review conducted pursuant to §2001.039 of the Government Code. Government Code §2001.039 requires that each state agency review and consider for readoption each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). The Board has reviewed §511.70, §511.72, §511.83, §511.84, §511.87, §511.91, §511.93 and has determined that the reasons for adopting continue to exist, however, changes were necessary as described in this preamble. The Board published a Notice of Intention to Review Title 22, TAC, Part 22, Chapter 511 in the February 7, 2003 issue of the Texas Register (28 TexReg 1234). No comments were received following publication of the notice.

The amendments will function by updating the board's rules to incorporate computer-based examination.

No comments were received regarding adoption of these rules.

The amendments are adopted under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act, §901.301 which authorizes the board to contract with an entity to conduct uniform CPA examinations, §901.306 which authorizes the board to use the services of NASBA, §901.310 which authorizes the board to promulgate rules regarding conditional credit, §901.312 which authorizes the board to accept partial examination credit from another state and §2001.039 of the Government Code Chapter 2001 (Administrative Procedure Act) that requires that each state agency review and consider for readoption each rule adopted by that agency.

No other article, statute or code is affected by these adoptions.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 15, 2004.

TRD-200400270

Rande Herrell

General Counsel

Texas State Board of Public Accountancy

Effective date: February 4, 2004

Proposal publication date: November 28, 2003

For further information, please call: (512) 305-7848


22 TAC §511.97

The Texas State Board of Public Accountancy adopts new rule §511.97 concerning Examination of Applicant Approved with Accommodation without changes to the proposed text as published in the November 28, 2003, issue of the Texas Register (28 TexReg 10666). The text of the rule will not be republished.

New §511.97 lists a dozen types of accommodations that the board may authorize, establishes procedures and a deadline for applicants notifying the board of two possible testing dates and for the board to notify the applicant's testing center of the accommodations required, clarifies that the applicant may not make additional accommodation requests of the testing center, and requires the board to absorb the additional costs for any approved accommodations. This new rule is the result of rule review conducted pursuant to §2001.039 of the Government Code. Government Code §2001.039 requires that each state agency review and consider for readoption each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). The Board published a Notice of Intention to Review Title 22, TAC, Part 22, Chapter 511 in the February 7, 2003, issue of the Texas Register (28 TexReg 1234). No comments were received following publication of the notice.

The new rule will function by creating a rule that explains accommodations.

No comments were received regarding adoption of the rule.

The new rule is adopted under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act, § 901.301 which authorizes the board to promulgate rules regarding the manner in which the examination is conducted and the Americans with Disabilities Act and §2001.039 of the Government Code Chapter 2001 (Administrative Procedure Act) that requires that each state agency review and consider for readoption each rule adopted by that agency.

No other article, statute or code is affected by the adoption.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 15, 2004.

TRD-200400263

Rande Herrell

General Counsel

Texas State Board of Public Accountancy

Effective date: February 4, 2004

Proposal publication date: November 28, 2003

For further information, please call: (512) 305-7848


Subchapter E. VENDOR REQUIREMENTS

22 TAC §§511.102 - 511.107

The Texas State Board of Public Accountancy adopts new rules §511.102 concerning CPA Examination Availability, §511.103 concerning Examination Scheduling, §511.104 concerning Test Center Locations, §511.105 concerning Test Center Check-In, §511.106 concerning Compliance with Test Center Rules and §511.107 concerning No-Show, Late Arrival and Late Cancellation in new Subchapter E regarding Vendor Requirements without changes to the proposed text as published in the November 28, 2003, issue of the Texas Register (28 TexReg 10667). The text of the rules will not be republished.

New §511.102 identifies the months in 2004 and 2005 during which the examination will be available on designated days and times.

New §511.103 defines the method and availability of access by candidates to schedule the Uniform CPA Examination.

New §511.104 identifies where a list of test center locations may be obtained by anyone and that the test centers will conform to the standards of the Americans with Disabilities Act of 1990.

New §511.105 makes the test vendor and the exam candidate aware of the test center check-in policies.

New §511.106 informs exam candidates that they must comply with test center rules and procedures or face possible future exclusion from examinations, and states that the board will be informed of a candidate's removal and exclusion.

New §511.107 contains the policy to be applied to candidates that do not appear at the exam, that arrive late at the exam or that cancel the examination too near the exam date.

The new rules will function by implementing rules regarding exam candidates and the computer-based examination.

These new rules are the result of rule review conducted pursuant to §2001.039 of the Government Code. Government Code §2001.039 requires that each state agency review and consider for readoption each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). The Board published a Notice of Intention to Review Title 22, TAC, Part 22, Chapter 511 in the February 7, 2003, issue of the Texas Register (28 TexReg 1234). No comments were received following publication of the notice.

No comments were received regarding adoption of these rules.

The new rules are adopted under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act, §901.301 which authorizes the Board to contract with another entity and to promulgate rules regarding application for the exam and conduct of the exam and §2001.039 of the Government Code Chapter 2001 (Administrative Procedure Act) that requires that each state agency review and consider for readoption each rule adopted by that agency.

No other article, statute or code is affected by the adoptions.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 15, 2004.

TRD-200400264

Rande Herrell

General Counsel

Texas State Board of Public Accountancy

Effective date: February 4, 2004

Proposal publication date: November 28, 2003

For further information, please call: (512) 305-7848


Subchapter F. EXPERIENCE REQUIREMENTS

22 TAC §511.123

The Texas State Board of Public Accountancy adopts an amendment to §511.123 concerning Reporting Work Experience in Subchapter F regarding Experience Requirements without changes to the proposed text as published in the November 28, 2003 issue of the Texas Register (28 TexReg 10669). The text of the rule will not be republished.

The amendment to §511.123 will identify the full-time and part-time work experience requirements and describes the contents of the statement that is required from a candidate's supervising CPA. The amendment is the result of rule review conducted pursuant to §2001.039 of the Government Code. Government Code §2001.039 requires that each state agency review and consider for readoption each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). The Board has reviewed §511.123 and has determined that the reasons for adopting continue to exist, however, changes were necessary as described in this preamble. The Board published a Notice of Intention to Review Title 22, TAC, Part 22, Chapter 511 in the February 7, 2003 issue of the Texas Register (28 TexReg 1234). No comments were received following publication of the notice.

The amendment will function by clearly identifying the full-time and part-time work experience requirements and describing the contents of the statement that is required from a candidate's supervising CPA.

No comments were received regarding adoption of the rule.

The amendment is adopted under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act, §901.256 which authorizes the board to promulgate rules defining work experience and §2001.039 of the Government Code Chapter 2001 (Administrative Procedure Act) that requires that each state agency review and consider for readoption each rule adopted by that agency.

No other article, statute or code is affected by the adoption.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 15, 2004.

TRD-200400265

Rande Herrell

General Counsel

Texas State Board of Public Accountancy

Effective date: February 4, 2004

Proposal publication date: November 28, 2003

For further information, please call: (512) 305-7848


Subchapter H. CERTIFICATION

22 TAC §§511.161, 511.165, 511.168, 511.173, 511.176

The Texas State Board of Public Accountancy adopts amendments to §511.161 concerning Qualifications for Issuance of a Certificate, §511.165 regarding Certificate, §511.168 concerning Reinstatement of a Certificate or of a Registration, §511.173 regarding Filing Complaints and §511.176 concerning Certification Hearings in Subchapter H regarding Certification without changes to the proposed text as published in the November 28, 2003 issue of the Texas Register (28 TexReg 10669). The text of the rules will not be republished.

The amendment to §511.161 contain minor editorial changes. The amendment to §511.165 deletes the timing of the issuance of certificates twice a year to allow the board flexibility to accommodate computer-based testing which is scheduled to commence in April 2004. The amendment to §511.168 deletes references to complying with continuing professional education requirements and payment of all fees and penalties, inserts a reference to compliance with §901.405 of the Act and renumbers the remaining subsections. The amendment to §511.173 adds criminal convictions or deferred adjudication for crimes involving fraud, moral turpitude, alcohol abuse and controlled substances to the list of reasons justifying a hearing on a candidate's eligibility. The amendment to §511.176 makes some editorial changes and adds crimes involving alcohol abuse and controlled substances to the list of crimes that directly relate to the practice of public accountancy. These amendments are the result of rule review conducted pursuant to §2001.039 of the Government Code. Government Code §2001.039 requires that each state agency review and consider for readoption each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). The Board has reviewed §§511.161, 511.165, 511.168, 511.173 and 511.176 and has determined that the reasons for adopting continue to exist, however, changes were necessary as described in this preamble. The Board published a Notice of Intention to Review Title 22, TAC, Part 22, Chapter 511 in the February 7, 2003 issue of the Texas Register (28 TexReg 1234). No comments were received following publication of the notice.

The amendment to §511.161 will function by making the rule easier to understand. The amendment to §511.165 will function by giving the board the flexibility to issue certificates at times it considers appropriate. The amendment to §511.168 will function by trimming the rule of unnecessary language and making it easier to read. The amendment to §511.173 allows for the investigation of candidates convicted or placed on deferred adjudication for specified types of crimes. The amendment to §511.176 will function by adding crimes involving alcohol abuse and controlled substances to the list of crimes that directly relate to the practice of public accountancy, corrects a statutory citation and makes the rule easier to read.

No comments were received regarding adoption of these rules.

The amendments are adopted under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act and §2001.039 of the Government Code Chapter 2001 (Administrative Procedure Act) that requires that each state agency review and consider for readoption each rule adopted by that agency.

No other article, statute or code is affected by these adoptions.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 15, 2004.

TRD-200400266

Rande Herrell

General Counsel

Texas State Board of Public Accountancy

Effective date: February 4, 2004

Proposal publication date: November 28, 2003

For further information, please call: (512) 305-7848


22 TAC §511.171

The Texas State Board of Public Accountancy adopts the repeal of §511.171 concerning Consent Revocation without changes to the proposed text as published in the November 28, 2003 issue of the Texas Register (28 TexReg 10672).

The proposed repeal of §511.171 will repeal a rule that allowed certificate holders to voluntarily surrender their certificates but did not address the reexamination requirement for reinstatement of a surrendered certificate. This repeal is the result of rule review conducted pursuant to §2001.039 of the Government Code. Government Code §2001.039 requires that each state agency review and consider for readoption each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). The Board published a Notice of Intention to Review Title 22, TAC, Part 22, Chapter 511 in the February 7, 2003 issue of the Texas Register (28 TexReg 1234). No comments were received following publication of the notice.

The repeal will function by replacing this rule with another rule that more clearly describes a procedure for voluntary surrender of a certificate and set forth the requirements for waiver of the reexamination requirement.

No comments were received regarding adoption of the repeal.

The repeal is adopted under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act and §2001.039 of the Government Code Chapter 2001 (Administrative Procedure Act) that requires that each state agency review and consider for readoption each rule adopted by that agency.

No other article, statute or code is affected by the adoption.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 15, 2004.

TRD-200400267

Rande Herrell

General Counsel

Texas State Board of Public Accountancy

Effective date: February 4, 2004

Proposal publication date: November 28, 2003

For further information, please call: (512) 305-7848


22 TAC §511.171

The Texas State Board of Public Accountancy adopts new rule §511.171 concerning Voluntary Surrender of Certificate without changes to the proposed text as published in the November 28, 2003 issue of the Texas Register (28 TexReg 10673). The text of the rule will not be republished.

The new rule §511.171 will allow a certificate holder who is not under investigation by the Board to voluntarily surrender his certificate and avoid annual CPE reporting requirements until he seeks reinstatement of his certificate. The rule allows for reinstatement of a certificate without re-application and re-examination if certain requirements are satisfied. This new rule is the result of rule review conducted pursuant to §2001.039 of the Government Code. Government Code §2001.039 requires that each state agency review and consider for readoption each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). The Board published a Notice of Intention to Review Title 22, TAC, Part 22, Chapter 511 in the February 7, 2003 issue of the Texas Register (28 TexReg 1234). No comments were received following publication of the notice.

The new rule will function by allowing CPAs to voluntary revoke their certificates with the possibility of having their certificate reinstated without retaking the examination.

No comments were received regarding adoption of the rule.

The new rule is adopted under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act and §2001.039 of the Government Code Chapter 2001 (Administrative Procedure Act) that requires that each state agency review and consider for readoption each rule adopted by that agency.

No other article, statute or code is affected by the adoption.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 15, 2004.

TRD-200400268

Rande Herrell

General Counsel

Texas State Board of Public Accountancy

Effective date: February 4, 2004

Proposal publication date: November 28, 2003

For further information, please call: (512) 305-7848


Chapter 515. LICENSES

22 TAC §§515.1 - 515.4, 515.9

The Texas State Board of Public Accountancy adopts amendments to §§515.1 concerning License, 515.2 concerning Initial License; 515.3 concerning License Renewal for Individuals and Firm Offices; 515.4 concerning License Cancellation; and 515.9 concerning Collection of License Fees Following Disciplinary Action without changes to the proposed text as published in the November 28, 2003 issue of the Texas Register (28 TexReg 10674). The text of the rules will not be republished.

The amendment to §515.1 and §515.2 replaces "practice unit" with "office". The amendment to §515.3 replaces "Practice Units" with "Firm Offices", replaces "practice unit's" with "firm's office license", replaces "practice unit's" with "firm's office" in three locations, and replaces "quality review" with "peer review" in two locations. The amendment to §515.4 replaces "practice units'" with "firm office's" and replaces "practice unit's" with "office". The amendment to §515.9 deletes the term "temporary permit" in several places because temporary practice is now addressed in another section. These amendments are the result of rule review conducted pursuant to §2001.039 of the Government Code. Government Code §2001.039 requires that each state agency review and consider for readoption each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). The Board has reviewed §§515.1, 515.2, 515.3, 515.4 and 515.9 and has determined that the reasons for adopting continue to exist, however, changes were necessary as described in this preamble. The Board published a Notice of Intention to Review Title 22, TAC, Part 22, Chapter 515 in the February 7, 2003 issue of the Texas Register (28 TexReg 1234). No comments were received following publication of the notice.

The amendments will function by making the rules clearer and easier to read.

No comments were received regarding adoption of these rules.

The amendments are adopted under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act and §2001.039 of the Government Code Chapter 2001 (Administrative Procedure Act) that requires that each state agency review and consider for readoption each rule adopted by that agency.

No other article, statute or code is affected by the adoptions.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 15, 2004.

TRD-200400269

Rande Herrell

General Counsel

Texas State Board of Public Accountancy

Effective date: February 4, 2004

Proposal publication date: November 28, 2003

For further information, please call: (512) 305-7848


22 TAC §515.5

The Texas State Board of Public Accountancy adopts the repeal §515.5 concerning Reinstatement of a License without changes to the proposal as published in the November 28, 2003, issue of the Texas Register (28 TexReg 10675).

The repeal of §515.5 will repeal a rule that is being substantially re-written. This repeal is the result of rule review conducted pursuant to §2001.039 of the Government Code. Government Code §2001.039 requires that each state agency review and consider for readoption each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). The Board published a Notice of Intention to Review Title 22, TAC, Part 22, Chapter 515 in the February 7, 2003, issue of the Texas Register (28 TexReg 1234). No comments were received following publication of the notice.

The repeal will function by removing a rule and replacing it with a rewritten and improved new rule.

No comments were received regarding adoption of the repeal.

The repeal is adopted under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act, §901.405 of the Act which changes the renewal fees and §2001.039 of the Government Code Chapter 2001 (Administrative Procedure Act) that requires that each state agency review and consider for readoption each rule adopted by that agency.

No other article, statute or code is affected by the adoption.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 15, 2004.

TRD-200400271

Rande Herrell

General Counsel

Texas State Board of Public Accountancy

Effective date: February 4, 2004

Proposal publication date: November 28, 2003

For further information, please call: (512) 305-7848


22 TAC §515.5

The Texas State Board of Public Accountancy adopts new rule §515.5 concerning Reinstatement of a License without changes to the proposed text as published in the November 28, 2003, issue of the Texas Register (28 TexReg 10676). The text of the rule will not be republished.

The new rule §515.5 is necessary to comply with recently amended §901.405 of the Act regarding license reinstatement fees. The Act and the new rule create different license renewal fees for licenses that have been expired 90 days or less, expired for more than 90 days but less than one year, expired more than one year but less than two years, expired more than two years, and for expired licenses of persons who have been residing and practicing in another state for two years. This new rule is the result of rule review conducted pursuant to §2001.039 of the Government Code. Government Code §2001.039 requires that each state agency review and consider for readoption each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). The Board published a Notice of Intention to Review Title 22, TAC, Part 22, Chapter 515 in the February 7, 2003, issue of the Texas Register (28 TexReg 1234). No comments were received following publication of the notice.

The new rule will function complying with the recently amended §901.405 of the Act regarding license reinstatement fees.

No comments were received regarding adoption of the rule.

The new rule is adopted under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act and §2001.039 of the Government Code Chapter 2001 (Administrative Procedure Act) that requires that each state agency review and consider for readoption each rule adopted by that agency.

No other article, statute or code is affected by the adoption.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 15, 2004.

TRD-200400272

Rande Herrell

General Counsel

Texas State Board of Public Accountancy

Effective date: February 4, 2004

Proposal publication date: November 28, 2003

For further information, please call: (512) 305-7848


Chapter 519. PRACTICE AND PROCEDURE

22 TAC §519.16

The Texas State Board of Public Accountancy adopts new rule §519.16 concerning Misdemeanors that Subject a Certificate or Registration Holder to Discipline by the Board with a minor change to the proposed text as published in the November 28, 2003, issue of the Texas Register (28 TexReg 10677). The non-substantive change is in subsection (d) in which a grammatical mistake of using the word "an" was changed to "a".

The new rule §519.16 will implement §901.1565 of the Act by listing all misdemeanors that may subject a certificate or registration holder to discipline by the Board.

The new rule educates certificate or registration holders and the public regarding criminal conduct that subjects certificate or registration holders to discipline by the Board.

No comments were received regarding adoption of the rule.

The new rule is adopted under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act and under HB 1218.

No other article, statute or code is affected by the adoption.

§519.16.Misdemeanors that Subject a Certificate or Registration Holder to Discipline by the Board.

(a) Because a licensee is often placed in a position of trust with respect to client funds, and the public in general, and the business community in particular, rely on the veracity, integrity and honesty of licensees in the preparation of reports and provision of other accounting services, the board considers conviction or placement on deferred adjudication or community supervision for any crime involving dishonesty or fraud to relate directly to the practice of public accountancy and may subject the licensee to discipline by the board. The board has determined that misdemeanor offenses that involve dishonesty or fraud directly relate to the practice of accounting pursuant to Sections 53.021, 53.022, 53.023 and 53.025 of the Occupations Code. The following non-exclusive list of misdemeanor offenses may involve dishonesty or fraud:

(1) Theft;

(2) Theft of Service;

(3) Tampering with Identification Numbers;

(4) Theft of or Tampering with Multichannel Video or Information Services;

(5) Manufacture, Distribution, or Advertisement of Multichannel Video or Information Services Device;

(6) Sale or Lease of Multichannel Video or Information Services Device;

(7) Possession, Manufacture, or Distribution of Certain Instruments Used to Commit Retail Theft;

(8) Forgery;

(9) Criminal Simulation;

(10) Trademark Counterfeiting;

(11) Stealing or Receiving Stolen Check or Similar Sight Order;

(12) False Statement to Obtain Property or Credit;

(13) Hindering Secured Creditors;

(14) Credit Card Transaction Record Laundering;

(15) Issuance of Bad Check;

(16) Deceptive Business Practices;

(17) Rigging Publicly Exhibited Contest;

(18) Misapplication of Fiduciary Property or Property of Financial Institution;

(19) Securing Execution of Document by Deception;

(20) Fraudulent Destruction, Removal, or Concealment of Writing;

(21) Simulating Legal Process;

(22) Refusal to Execute Release of Fraudulent Lien or Claim;

(23) Breach of Computer Security;

(24) Unauthorized Use of Telecommunications Service;

(25) Theft of Telecommunications Service;

(26) Publication of Telecommunications Access Device;

(27) Insurance Fraud;

(28) False Alarm or Report;

(29) Engaging in Organized Criminal Activity;

(30) Violation of Court Order Enjoining Organized Criminal Activity;

(31) Unlawful Use of Criminal Instrument;

(32) Unlawful Access to Stored Communications;

(33) Burglary of Vehicles;

(34) Burglary of Coin-Operated or Coin Collection Machines;

(35) Coercion of Public Servant or Voter;

(36) Improper Influence;

(37) Gift to Public Servant by Person Subject to His Jurisdiction;

(38) Offering Gift to Public Servant;

(39) Perjury;

(40) False Report to Peace Officer or Law Enforcement Employee;

(41) Tampering With or Fabricating Physical Evidence;

(42) Tampering With Governmental Record;

(43) Fraudulent Filing of Financing Statement;

(44) False Identification as Peace Officer;

(45) Misrepresentation of Property;

(46) Record of a Fraudulent Court; and

(47) Bail Jumping and Failure to Appear.

(b) Because a licensee is often placed in a position of trust with respect to client funds, and the public in general, and the business community in particular, rely on the veracity, integrity and honesty of licensees in the preparation of reports and provision of other accounting services, the board considers conviction or placement on deferred adjudication or community supervision for any crime involving moral turpitude to relate directly to the practice of public accountancy and may subject the licensee to discipline by the board. The board has determined that misdemeanor offenses that involve moral turpitude directly relate to the practice of accounting pursuant to Sections 53.021, 53.022, 53.023 and 53.025 of the Occupations Code. The following non-exclusive list of misdemeanors offenses may involve moral turpitude:

(1) Prostitution;

(2) Promotion of Prostitution;

(3) Indecent Exposure;

(4) Public Lewdness;

(5) Obscenity;

(6) Obscene Display or Distribution;

(7) Sale, Distribution, or Display of Harmful Material to Minor;

(8) Employment Harmful to Children; and

(9) Abuse of a Corpse.

(c) Because a licensee is often placed in a position of trust with respect to client funds, and the public in general, and the business community in particular, rely on the veracity, integrity and honesty of licensees in the preparation of reports and provision of other accounting services, the board considers conviction or placement on deferred adjudication or community supervision for any crime involving alcohol abuse or controlled substances to relate directly to the practice of public accountancy and may subject a licensee to discipline by the board. The board has determined that misdemeanor offenses that involve alcohol abuse or controlled substances directly relate to the practice of accounting pursuant to Sections 53.021, 53.022, 53.023 and 53.025 of the Occupations Code. The following non-exclusive list of misdemeanors offenses may involve alcohol abuse or controlled substances:

(1) Possession of less than 28 grams of a controlled substance listed in penalty group 3 under the Texas Penal Code;

(2) Possession of less than 28 grams of a controlled substance listed in penalty group 4 under the Texas Penal Code;

(3) Manufacture, delivery or possession of a controlled substance listed in a schedule of controlled substances, but not listed in a penalty group under the Texas Penal Code;

(4) Manufacture, delivery or possession of a controlled substance analogue;

(5) Possession or delivery of marihuana;

(6) Possession or delivery of drug paraphernalia;

(7) Possession or transport of chemicals with the intent to manufacture a controlled substance; and

(8) Any misdemeanor involving intoxication under the influence of alcohol or a controlled substance.

(d) Because a licensee is often placed in a position of trust with respect to client funds, and the public in general, and the business community in particular, rely on the veracity, integrity and honesty of licensees in the preparation of reports and provision of other accounting services, the board considers repeated violations of any criminal law to relate directly to the practice of public accountancy.

(e) A conviction or placement on deferred adjudication or community supervision for a violation of any state or federal law that is equivalent to an offense listed in subsections (a) through (d) of this section is considered to directly relate to the practice of accounting and may subject a licensee to discipline by the board.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 15, 2004.

TRD-200400273

Rande Herrell

General Counsel

Texas State Board of Public Accountancy

Effective date: February 4, 2004

Proposal publication date: November 28, 2003

For further information, please call: (512) 305-7848


22 TAC §519.17

The Texas State Board of Public Accountancy adopts new rule §519.17 concerning Administrative Penalty Guidelines without changes to the proposed text as published in the November 28, 2003, issue of the Texas Register (28 TexReg 10679). The text of the rule will not be republished.

The new rule §519.17 implements §901.522(c) of the Act by providing administrative penalty guidelines.

The new rule educates certificate or registration holders and the public regarding the range of administrative penalties imposed against certificate or registration holders who violate the Act or Board rules.

No comments were received regarding adoption of the rule.

The new rule is adopted under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act and under HB1218.

No other article, statute or code is affected by the adoption.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 15, 2004.

TRD-200400274

Rande Herrell

General Counsel

Texas State Board of Public Accountancy

Effective date: February 4, 2004

Proposal publication date: November 28, 2003

For further information, please call: (512) 305-7848


Chapter 521. FEE SCHEDULE

22 TAC §521.2, §521.14

The Texas State Board of Public Accountancy adopts an amendment to §521.2 concerning Examination Fees and §521.14 concerning Eligibility Fee without changes to the proposed text as published in the November 28, 2003, issue of the Texas Register (28 TexReg 10680). The text of the rules will not be republished.

The amendments to §521.2 and §521.14 will correct the name of the exam subject.

The amendments will function by correcting the name of the exam subject.

No comments were received regarding adoption of these rules.

The amendments are adopted under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act.

No other article, statute or code is affected by these adoptions.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 15, 2004.

TRD-200400276

Rande Herrell

General Counsel

Texas State Board of Public Accountancy

Effective date: February 4, 2004

Proposal publication date: November 28, 2003

For further information, please call: (512) 305-7848


22 TAC §521.5, §521.11

The Texas State Board of Public Accountancy adopts an amendment to §521.5 concerning Temporary Firm Practice Permit Fee and §521.11 concerning Fee for a Replacement Certificate without changes to the proposed text as published in the November 28, 2003, issue of the Texas Register (28 TexReg 10681). The text of the rules will not be republished.

The amendment §521.5 will add "firm practice" to the rule caption and to the rule text. The amendment to §521.11 raises the fee for a replacement certificate to $50.00. These amendments are the result of rule review conducted pursuant to §2001.039 of the Government Code. Government Code §2001.039 requires that each state agency review and consider for readoption each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). The Board has reviewed §521.5 and §521.11 and has determined that the reasons for adopting continue to exist, however, changes were necessary as described in this preamble. The Board published a Notice of Intention to Review Title 22, TAC, Part 22, Chapter 521 in the February 7, 2003, issue of the Texas Register (28 TexReg 1234). No comments were received following publication of the notice.

The amendment to §521.5 will function by making the rule caption and text more descriptive and clearer and §521.11 will function by allowing the state to recoup its costs to replace lost certificates.

No comments were received regarding adoption of these rules.

The amendments are adopted under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act and §2001.039 of the Government Code Chapter 2001 (Administrative Procedure Act) that requires that each state agency review and consider for readoption each rule adopted by that agency.

No other article, statute or code is affected by the adoptions.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 15, 2004.

TRD-200400275

Rande Herrell

General Counsel

Texas State Board of Public Accountancy

Effective date: February 4, 2004

Proposal publication date: November 28, 2003

For further information, please call: (512) 305-7848


Part 38. TEXAS MIDWIFERY BOARD

Chapter 831. MIDWIFERY

Subchapter B. DOCUMENTATION

22 TAC §831.11

The Texas Midwifery Board (board), with the approval of the Texas Board of Health, adopts an amendment to §831.11, concerning the documentation of midwives. Section 831.11 is adopted with changes to the proposed text as published in the November 14, 2003, issue of the Texas Register (28 TexReg 10028).

The section is amended to ensure that fee increases mandated by the 2003 Texas Legislature are billed and collected starting with the 2004 midwifery documentation cycle, for both annual renewals and two year renewals starting in 2005. The amendment is necessary to implement House Bill 2292, 78th Legislature (2003) which added Health and Safety Code, §§12.0111 and 12.0112; and House Bill 2985, 78th Legislature (2003), which added Occupations Code, Chapter 101, Subchapter G, relating to fees.

The board is authorized by the Texas Midwifery Act (the Act), Occupations Code, §203.152, to adopt rules concerning fees for documentation of midwives. The amendment increases the documentation fees, including initial documentation, annual renewal, late fees, and fees for renewal after a lapse of documentation, and provide for the same requirements for two-year renewals. The amendment also ensures that legislatively mandated fees for the Office of Patient Protection may be collected.

The board received one public comment during the comment period on the proposed amendment. The commenter was an individual who was neither for nor against the rule.

Comment: One commenter requested that granny midwives with 50 years or more of service be granted honorary midwifery licenses.

Response: The board disagrees, because the Texas Midwifery Act does not authorize the board to exempt midwives from the documentation requirements established in the statute. No change was made as a result of the comment.

The board made minor editorial changes due to staff comments to clarify the rule related to two year renewals in the amendment to §831.11, and to ensure the collection of fees for the Texas Online Authority as required by legislative mandate.

Change: Concerning §§831.11(a), 831.11(b), 831.11(c), 831.11(f) and 831.11(g), the word "annual" was deleted when it occurred and language clarifying a renewal period for a two year term of documentation was added, as mandated by recent legislation.

Change: Concerning §831.11(f)(2), language was added clarifying that the same number of continuing education hours are required for a renewal period with a two year term of documentation as for two renewal periods, each with a one year term of documentation.

Change: Concerning §831.11, subsection (p) was added regarding the collection of subscription fees and convenience fees for Texas Online, as mandated by recent legislation.

The amendment is adopted under the Occupations Code, §203.152, which provides the board with the authority to adopt rules prescribing fees for midwifery documentation, subject to the approval of the board; and the Health and Safety Code, §12.001, which provides the Texas Board of Health with authority to adopt rules for the performance of every duty imposed by law on the Texas Board of Health, the Texas Department of Health, and the commissioner of health.

§831.11.Documentation.

(a) Purpose. This section details requirements for the documentation and redocumentation after revocation, suspension, or the surrender of documentation of midwives in Texas.

(b) Provisions. This section establishes:

(1) requirements and procedures for initial documentation;

(2) requirements and procedures for redocumentation;

(3) conditions for denial, revocation, suspension, or surrender of documentation;

(4) guidelines for reissuance of documentation after revocation, suspension, or surrender of documentation;

(5) guidelines for documentation of persons with criminal convictions; and

(6) a state midwifery roster.

(c) Applicability. In order for an individual to legally practice midwifery in Texas, she/he must be currently documented with the Midwifery Program. Documentation shall be valid for a renewal period of one year prior to March 1, 2005, one or two years between March 1, 2005, and March 1, 2006, and two years starting March 1, 2006, except for initial documentation. A midwife's initial documentation shall be valid from the date issued until March 1 of the following year.

(d) Initial documentation. An individual may apply for documentation as a midwife at any time during the year by submitting the following to the Midwifery Program:

(1) a completed documentation application form;

(2) proof of:

(A) satisfactory completion of a mandatory basic midwifery education course approved by the Midwifery Board and the North American Registry of Midwives (NARM) exam or any other comprehensive exam approved by the Midwifery Board;

(B) certified professional midwife (CPM) certification by NARM and satisfactory completion of a continuing education course covering the current Texas Midwifery Basic Information and Instructors Manual; or

(C) satisfactory completion of a basic midwifery education course accredited by the Midwifery Education Accreditation Council (MEAC); a continuing education course covering the current Texas Midwifery Basic Information and Instructors Manual; and the North American Registry of Midwives (NARM) exam or any other comprehensive exam approved by the Midwifery Board;

(3) proof of current cardiopulmonary resuscitation (CPR) certification for health care providers by the American Heart Association (formerly a C certificate) or equivalent certification for the professional rescuer from the Red Cross;

(4) proof of current certification for neonatal resuscitation, §§1-4, from the American Academy of Pediatrics, effective March 1, 1999;

(5) proof of satisfactory completion of training in the collection of newborn screening specimens or an established relationship with another qualified and appropriately credentialed health care provider who has agreed to collect newborn screening specimens on behalf of the applicant; and

(6) a nonrefundable $275 application fee.

(e) Initial documentation after interim of more than four years. A midwife seeking initial documentation who has not documented within four years of completing a basic midwifery education course approved by the Midwifery Board or accredited by MEAC shall provide proof of having completed at least 40 contact hours of approved continuing midwifery education within the year preceding the application, which shall be based upon a review of:

(1) the current Texas Midwifery Basic Information and Instructors Manual; and

(2) the current Midwives Alliance of North America (MANA) Core Competencies and Standards of Practice.

(f) Redocumentation. Documented midwives must apply for redocumentation during the last January of each renewal period. Documentation expires March 1 of the second or last year of the renewal period. The Midwifery Program will send renewal applications to documented midwives during the last December of each renewal period. However, each midwife is solely responsible for compliance with the requirements for redocumentation, and nonreceipt of the renewal application mailed by the Midwifery Program shall not constitute an acceptable excuse for failure to comply. A midwife's application for redocumentation must include the following:

(1) a completed redocumentation application form;

(2) proof of completion of at least ten contact hours of approved continuing midwifery education since March 1 of the previous one year renewal period, or at least 20 contact hours of approved midwifery education since March 1 of the previous two year renewal period;

(3) proof of current CPR certification for health care providers by the American Heart Association (formerly a C certificate) or equivalent certification for the professional rescuer from the Red Cross;

(4) proof of current certification for neonatal resuscitation, §§1-4, from the American Academy of Pediatrics, effective March 1, 1999; and

(5) a nonrefundable $275 application fee for each year included in the renewal period.

(g) Late redocumentation. A midwife who fails to apply for redocumentation by March 1 of the end of a renewal period in which the midwife is currently documented, as evidenced by a valid United States Postal Service or recognized commercial carrier postmark, may apply for late redocumentation on or before March 31 of that year. Applications for late redocumentation must include the following:

(1) each of the items listed in subsection (f) of this section; and

(2) an additional nonrefundable $125 late filing fee.

(h) Redocumentation after interim of less than four years. A midwife originally documented in Texas on or after January 1, 1995, who since that time has not been documented for a period of less than four years may redocument by:

(1) providing proof of having completed 20 contact hours of approved midwifery continuing education, including a continuing education course covering the current Texas Midwifery Basic Information and Instructor Manual, during the 12 months preceding the application for redocumentation;

(2) paying all redocumentation fees not paid during the interim plus a processing fee of $100; and

(3) meeting the initial documentation requirements in subsections (d)(1) and (d)(3)-(5) of this section.

(i) Redocumentation after interim of more than four years. A midwife documented in Texas on or after January 1, 1995, who has not been documented for a period of more than four years may redocument by:

(1) providing proof of having completed at least 40 contact hours of approved continuing midwifery education within the year preceding the application, which shall be based upon a review of:

(A) the current Texas Midwifery Basic Information and Instructor Manual; and

(B) the current Midwives Alliance of North America (MANA) Core Competencies and Standards of Practice;

(2) paying all redocumentation fees not paid during the interim plus a processing fee of $200; and

(3) meeting the initial documentation requirements in subsections (d)(1) and (d)(3)-(5) of this section.

(j) Grounds for denial of application for documentation or redocumentation and for disciplinary action. The Midwifery Board may deny an application for initial documentation or redocumentation and may take disciplinary action against any person based upon proof of the following:

(1) violation of the Act or rules adopted under the Act;

(2) submission of false or misleading information to the Midwifery Board, the board, or the department;

(3) conviction of a felony or a misdemeanor involving moral turpitude;

(4) intemperate use of alcohol or drugs while engaged in the practice of midwifery;

(5) unprofessional or dishonorable conduct that may reasonably be determined to deceive or defraud the public;

(6) inability to practice midwifery with reasonable skill and safety because of illness, disability, or psychological impairment;

(7) judgment by a court of competent jurisdiction that the individual is mentally impaired;

(8) disciplinary action taken by another jurisdiction affecting the applicant's legal authority to practice midwifery;

(9) submission of a birth or death certificate known by the individual to be false or fraudulent, or other noncompliance with Health and Safety Code, Chapter 191, or 25 TAC, Chapter 181 (relating to Vital Statistics);

(10) noncompliance with Health and Safety Code, Chapter 244, or 25 TAC, Chapter 137 (relating to Birthing Centers);

(11) failure to practice midwifery in a manner consistent with the public health and safety; or

(12) demonstrated lack of personal or professional character in the practice of midwifery.

(k) Surrender of documentation.

(1) A midwife may surrender his or her documentation prior to its expiration for the current period by mailing the original documentation acknowledgment letter back to the Midwifery Program together with a signed statement of his or her intent to surrender same.

(2) Surrender of documentation by a midwife after receipt of notification from the Midwifery Program that a complaint against the midwife is being investigated shall not deprive the Midwifery Board of jurisdiction in any disciplinary action which may result from said investigation.

(3) The Midwifery Board may enter any disciplinary order authorized by the Act or this subchapter to resolve a complaint against a midwife who has surrendered his or her documentation after receipt of notification from the Midwifery Program that a complaint is being investigated.

(l) Redocumentation after disciplinary action or surrender.

(1) A person whose documentation to practice midwifery in this state has been revoked or suspended by the Midwifery Board or who has surrendered his or her documentation after having received notice that the Midwifery Program is investigating a complaint may not apply for reissuance of documentation until the applicant has complied with all requirements imposed by the Midwifery Board in connection with the revocation, suspension, or surrender. If the Midwifery Board denies the application for reissuance of documentation, an applicant may request a hearing in accordance with the provisions of the Administrative Procedure Act (APA), Government Code, Chapter 2001, applicable state and federal statutes, the Rules of Practice and Procedures of the State Office of Administrative Hearings (SOAH) and this chapter. The decision of the hearing examiner shall be final.

(2) The Midwifery Board may reissue documentation to a midwife who surrendered his or her documentation while an investigation or disciplinary action was pending only if the Midwifery Board finds that:

(A) the applicant is competent to resume practice; and

(B) the Midwifery Program has no evidence of current or continuing violations by the applicant of the Act or this subchapter.

(m) Documentation of persons with criminal conviction.

(1) The Midwifery Board may refuse to issue documentation to any individual who has been initially convicted of a felony or a misdemeanor involving moral turpitude, or whose probation imposed pursuant to such conviction has been revoked by the court.

(2) The Midwifery Board shall consider the following factors:

(A) the nature and seriousness of the crime or the reason the applicant's probation was revoked;

(B) any relationship between the crime and the practice of midwifery;

(C) whether documentation might offer the applicant an opportunity to engage in the same or similar criminal activity as that for which the applicant was previously convicted; and

(D) the relationship of the crime to the ability, capacity, or fitness required to perform the duties and discharge the responsibilities of midwifery.

(3) the Midwifery Board, in determining the present fitness of a person who has been convicted of a felony or a misdemeanor involving moral turpitude, shall consider:

(A) the age of the applicant when the crime was committed;

(B) the amount of time that has elapsed since the applicant's conviction;

(C) the applicant's conduct and work history prior to and following the conviction;

(D) evidence of the applicant's progress toward rehabilitation while incarcerated, on probation, or following release; and

(E) other evidence of the person's present fitness, including letters of recommendation from:

(i) prosecutorial, law enforcement, probation, and correctional officers;

(ii) the sheriff or chief of police in the community where the applicant resides; and

(iii) other persons.

(n) Midwifery roster. The Midwifery Program shall maintain a roster of all individuals currently documented to practice midwifery in the state. A copy of the roster shall be provided to each county clerk and local registrar of births on request. The Midwifery Program shall provide information on new and/or late documentees to individual county clerks and local registrars of births during the course of a year as needed.

(o) For all applications and renewal applications, the department is authorized to collect fees to fund the Office of Patient Protection, Health Professions Council, as mandated by law.

(p) For all applications and renewal applications, the department is authorized to collect subscription and convenience fees, in amounts determined by the Texas Online Authority, to recover costs associated with application and renewal application processing through Texas Online.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 16, 2004.

TRD-200400361

Debra Evans

Chair

Texas Midwifery Board

Effective date: February 5, 2004

Proposal publication date: November 14, 2003

For further information, please call: (512) 458-7236