Part 17.
TEXAS STATE BOARD OF PLUMBING EXAMINERS
Chapter 361.
ADMINISTRATION
Subchapter A. GENERAL PROVISIONS
22 TAC §361.6
The Texas State Board of Plumbing Examiners (Board) proposes
amendments to §361.6, which specifies certain fees charged by the Board,
including the fees for initial applications for licenses, endorsements, and
registrations, as well as examination, renewal and late renewal fees.
The proposed amendments to §361.6 are necessary in order for the Board
to utilize revenue, as provided in Article VIII of the General Appropriations
Act (Senate Bill 1, 79th Legislature, Regular Session), which is contingent
upon the Board assessing fees sufficient to generate, during the 2006 - 2007
biennium, $219,690 in excess of $5,163,000 for fiscal years 2006 and 2007.
Under the current fee structure, the Board will not generate enough revenue
during the 2006 - 2007 biennium to meet the amount necessary for the Board
to access the contingent revenue.
Robert L. Maxwell, Executive Director of the Texas State Board of Plumbing
Examiners, has determined that there will be a fiscal impact for persons required
to comply with the amendments. For each year of the first five-year period
that the amended rule is in effect, persons who have successfully passed a
Master Plumber licensing examination will pay a one-time increased initial
license fee, in the following amount:
Initial Master Plumber license--$18
Mr. Maxwell has also determined that for the first five-year period that
the amendments are in effect, persons who renew a Master Plumber license will
be fiscally impacted by paying increased license renewal fees, in the following
amount:
Master Plumber license--$90 over five years ($18 annually)
Master Plumber with Journeyman Plumber License--$90 over five years ($18
annually)
As required by §1301.403(e) of the Plumbing License Law, individuals
who fail to renew a Master Plumber license by the annual renewal date of the
license must pay an additional late fee in order to renew a license. Individuals
who renew an expired license within 90 days after the expiration of the license,
will pay an additional increased late renewal fee equal to one-half of the
renewal fee. Individuals who renew an expired license more than 90 days after
the expiration of the license, will pay an additional increased late renewal
fee equal to the renewal fee. As prohibited by §1301.403(d) of the Plumbing
License Law, no individual may renew a license that has been expired for two
years or more.
Additionally, Mr. Maxwell has determined that each year of the first five
years the amendments are in effect there should be no mandated fiscal impact
on local government or state government as well as small businesses. Any local
governments or small businesses that choose to pay the fees for any of their
employees who hold a license or registration will be impacted by the amount
of the fee increases. Neither local governments nor small businesses are required
by state law or this rule to pay the fees of their employees.
The public benefit anticipated as a result of adopting the amendments will
be the Board's ability to better protect the health, safety and welfare of
the citizens by utilizing additional funding for administration and enforcement
of the Plumbing License Law and Board Rules. Administration and enforcement
of the Plumbing License Law includes the investigation of consumer complaints,
job-site compliance checks and pursuing action against persons who choose
to endanger the health, safety and welfare of the citizens by violating the
Plumbing License Law and Board Rules.
Comments on the proposed amendments may be submitted within 30 days of
publication of the proposal in the
Texas Register
, to Robert L. Maxwell, Executive Director, Texas State Board of Plumbing
Examiners, 929 East 41st Street, P.O. Box 4200, Austin, Texas 78765-4200,
or by e-mail to info@tsbpe.state.tx.us.
The amendments to §361.6 are proposed under and affect Title
8, Chapter 1301, Occupations Code ("Plumbing License Law" or "Act"), §§1301.251,
1301.253, 1301.403, the rule it amends and the General Appropriation Acts,
Article VIII, Board of Plumbing Examiners (Senate Bill 1, 79th Legislature,
Regular Session). Section 1301.251 requires the Board to adopt and enforce
rules necessary to administer the Plumbing License Law. Section 1301.253 requires
the Board to set fee amounts that are reasonable and necessary to cover the
costs of administering the Act. Section 1301.403 sets forth the requirements
for renewal of a license. The General Appropriations Act, Article VIII, Board
of Plumbing Examiners (Senate Bill 1, 79th Legislature, Regular Session),
provides additional funding to the Board contingent upon the Board assessing
fees sufficient to generate, during the 2006 - 2007 biennium, $219,690 in
excess of $5,163,000 for fiscal years 2006 and 2007.
No other statute, article or code is affected by the proposed amendments.
§361.6.Fees.
(a)
The Board has established the following fees:
(1)
Initial Licenses, Endorsements and Registrations
(A)
Master Plumber license--
$198
[
(B) - (L)
(No change.)
(2)
(No change.)
(3)
Renewals
(A)
Master Plumber license--
$198
[
(B) - (H)
(No change.)
(I)
Master Plumber with Journeyman Plumber License--
$198
[
(J) - (N)
(No change.)
(4)
Other fees
(A)
Late renewal
(i)
Master Plumber:
(I)
less than 90 days--one-half renewal fee--
$99
[
(II)
more than 90 days--renewal fee--
$198
[
(ii) - (vii)
(No change.)
(viii)
Master Plumber with Journeyman Plumber:
(I)
less than 90 days--one half renewal fee--
$99
[
(II)
more than 90 days--renewal fee--
$198
[
(ix) - (xiv)
(No change.)
(B) - (D)
(No change.)
(b)
Methods of payment
(1)
(No change.)
(2)
Fees paid by mail or in person may be made in the form
of money order, cashier's check, personal check, business check, or the exact
amount of cash (cash payments by mail are not recommended
)
.
(3) - (4)
(No change.)
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State on July 12, 2005.
TRD-200502834
Robert L. Maxwell
Executive Director
Texas State Board of Plumbing Examiners
Earliest possible date of adoption: August 28, 2005
For further information, please call: (512) 936-5224
Chapter 501.
RULES OF PROFESSIONAL CONDUCT
Subchapter C. RESPONSIBILITIES TO CLIENTS
22 TAC §501.72
The Texas State Board of Public Accountancy (Board) proposes
an amendment to §501.72, concerning Contingency Fees.
The amendment to §501.72 will correct two typographical errors.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the amendment will be zero.
B. the estimated reduction in costs to the state and to local governments
as a result of enforcing or administering the amendment will be zero.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the amendment will be zero.
Mr. Treacy has determined that for the first five-year period the amendment
is in effect the public benefits expected as a result of adoption of the proposed
amendment will be correction of two typographical errors.
The probable economic cost to persons required to comply with the amendment
will be zero.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed amendment will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
amendment from any interested person. Comments must be received at the Board
no later than noon on August 26, 2005. Comments should be addressed to Rande
Herrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe,
Tower 3, Suite 900, Austin, Texas 78701 or faxed to her attention at (512)
305-7854.
Mr. Treacy has determined that the proposed amendment will not have an
adverse economic effect on small businesses because there is no effect on
small businesses.
The Board specifically invites comments from the public on the issues of
whether or not the proposed amendment will have an adverse economic effect
on small businesses; if the amendment is believed to have such an effect,
then how may the Board legally and feasibly reduce that effect considering
the purpose of the statute under which the amendment is to be adopted; and
if the amendment is believed to have such an effect, how the cost of compliance
for a small business compares with the cost of compliance for the largest
business affected by the amendment under any of the following standards: (a)
cost per employee; (b) cost for each hour of labor; or (c) cost for each $100
of sales. See Texas Government Code, §2006.002(c).
The amendment is proposed under the Public Accountancy Act ("Act"),
Texas Occupations Code, §901.151 which authorizes the Board to adopt
rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§501.72.Contingency Fees.
(a) - (b)
(No change.)
(c)
A certificate or registration holder shall not perform
an engagement as a testifying accounting expert for a contingent fee. A testifying
accounting expert is one that at any time during the
proceeding
[
(d) - (e)
(No change.)
(f)
Interpretive Comment: A consulting accounting expert may
become a testifying accounting expert when the client for whom he is working
makes his work available to a testifying expert. A consulting accounting expert
who is working on a contingent fee basis should work closely with his client
to
ensure
[
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on July 14, 2005.
TRD-200502879
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 28, 2005
For further information, please call: (512) 305-7848
22 TAC §501.81
The Texas State Board of Public Accountancy (Board) proposes
an amendment to §501.81, concerning Firm License Requirements.
The amendment to §501.81 deletes references to a permissible disclaimer
that CPAs may use in conjunction with their association with an unlicensed
entity and refers a person to §501.86(a) for permissible disclaimers.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the amendment will be zero.
B. the estimated reduction in costs to the state and to local governments
as a result of enforcing or administering the amendment will be zero.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the amendment will be zero.
Mr. Treacy has determined that for the first five-year period the amendment
is in effect the public benefits expected as a result of adoption of the proposed
amendment will be increased clarity of the circumstances requiring the use
of a disclaimer that an unlicensed entity is not a CPA firm.
The probable economic cost to persons required to comply with the amendment
will be zero.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed amendment will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
amendment from any interested person. Comments must be received at the Board
no later than noon on August 26, 2005. Comments should be addressed to Rande
Herrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe,
Tower 3, Suite 900, Austin, Texas 78701 or faxed to her attention at (512)
305-7854.
Mr. Treacy has determined that the proposed amendment will not have an
adverse economic effect on small businesses because the cost of compliance
is negligible.
The Board specifically invites comments from the public on the issues of
whether or not the proposed amendment will have an adverse economic effect
on small businesses; if the amendment is believed to have such an effect,
then how may the Board legally and feasibly reduce that effect considering
the purpose of the statute under which the amendment is to be adopted; and
if the amendment is believed to have such an effect, how the cost of compliance
for a small business compares with the cost of compliance for the largest
business affected by the amendment under any of the following standards: (a)
cost per employee; (b) cost for each hour of labor; or (c) cost for each $100
of sales. See Texas Government Code, §2006.002(c).
The amendment is proposed under the Public Accountancy Act ("Act"),
Texas Occupations Code, §901.151 which authorizes the Board to adopt
rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§501.81.Firm License Requirements.
(a) - (b)
(No change.)
(c)
Each advertisement or written promotional statement that
refers to a CPA's designation and his or her association with an unlicensed
entity in the client practice of public accountancy must include the disclaimer
contained in §501.86(a) of this title (relating to Required Disclaimers).
[
(d)
The requirements of subsection (c) of this section do not
apply with regard to a certificate or registration holder performing services:
(1)
(No change.)
(2)
as an employee, officer, or director of a
financial
[
(e) - (f)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on July 14, 2005.
TRD-200502880
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 28, 2005
For further information, please call: (512) 305-7848
22 TAC §501.83
(Editor's note: The text of the following section proposed for
repeal will not be published. The section may be examined in the offices of
the Texas State Board of Public Accountancy or in the Texas Register office,
Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas State Board of Public Accountancy (Board)
proposes the repeal of §501.83, concerning Firm Names.
The proposed repeal of §501.83 will permit the Board to adopt a revised
rule regarding firm names.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed repeal will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the repeal will be zero.
B. the estimated reductions in costs to the state and to local governments
as a result of enforcing or administering the repeal will be zero.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the repeal will be zero.
Mr. Treacy has determined that for the first five-year period the repeal
is in effect the public benefits expected as a result of adoption of the proposed
repeal will be that this rule will have been replaced with a re-written rule.
The probable economic cost to persons required to comply with the repeal
will be zero.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed repeal will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
repeal from any interested person. Comments must be received at the Board
no later than noon on August 26, 2005. Comments should be addressed to Rande
Herrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe,
Tower 3, Suite 900, Austin, Texas 78701 or faxed to her attention at (512)
305-7854.
Mr. Treacy has determined that the proposed repeal will not have an adverse
economic effect on small businesses because there is no cost to small businesses.
The Board specifically invites comments from the public on the issues of
whether or not the proposed repeal will have an adverse economic effect on
small businesses; if the repeal is believed to have such an effect, then how
may the Board legally and feasibly reduce that effect considering the purpose
of the statute under which the repeal is to be adopted; and if the repeal
is believed to have such an effect, how the cost of compliance for a small
business compares with the cost of compliance for the largest business affected
by the repeal under any of the following standards: (a) cost per employee;
(b) cost for each hour of labor; or (c) cost for each $100 of sales. See Texas
Government Code, §2006.002(c).
The repeal is proposed 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 this proposed repeal.
§501.83.Firm Names.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State on July 14, 2005.
TRD-200502881
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 28, 2005
For further information, please call: (512) 305-7848
22 TAC §501.83
The Texas State Board of Public Accountancy (Board) proposes
new §501.83, concerning Firm Names.
The new §501.83 will establish the general rules applicable to all
firms when establishing a firm name.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed new rule will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the new rule will be zero.
B. the estimated reduction in costs to the state and to local governments
as a result of enforcing or administering the new rule will be zero.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the new rule will be zero.
Mr. Treacy has determined that for the first five-year period the new rule
is in effect the public benefits expected as a result of adoption of the proposed
new rule will be improved understanding of the Board's standards for firm
names as applicable to all firms as well as the additional requirements based
on legal form of ownership or in circumstances when an owner is prohibited
from practicing public accountancy.
The probable economic cost to persons required to comply with the new rule
will be zero.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed new rule will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
new rule from any interested person. Comments must be received at the Board
no later than noon on August 26, 2005. Comments should be addressed to Rande
Herrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe,
Tower 3, Suite 900, Austin, Texas 78701 or faxed to her attention at (512)
305-7854.
Mr. Treacy has determined that the proposed new rule will not have an adverse
economic effect on small businesses because the cost of compliance is minimal.
The Board specifically invites comments from the public on the issues of
whether or not the proposed new rule will have an adverse economic effect
on small businesses; if the new rule is believed to have such an effect, then
how may the Board legally and feasibly reduce that effect considering the
purpose of the statute under which the new rule is to be adopted; and if the
new rule is believed to have such an effect, how the cost of compliance for
a small business compares with the cost of compliance for the largest business
affected by the new rule under any of the following standards: (a) cost per
employee; (b) cost for each hour of labor; or (c) cost for each $100 of sales.
See Texas Government Code, §2006.002(c).
The new rule is proposed under the Public Accountancy Act ("Act"),
Texas Occupations Code, §901.151 which authorizes the Board to adopt
rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed new rule.
§501.83.Firm Names.
(a)
General Rules Applicable to all Firms:
(1)
A firm name may not contain words, abbreviations or other
language that are misleading to the public, or that may cause confusion to
the public as to the legal form or ownership of the firm.
(2)
A firm licensed by the board may not conduct business,
perform or offer to perform services for or provide products to a client under
a name other than the name in which the firm is licensed.
(3)
A word, abbreviation or other language is presumed to be
misleading if it:
(A)
is a trade name or assumed name that does not comply with
paragraph (4)(A) or (B) of this subsection;
(B)
states or implies the quality of services offered, special
expertise, expectation as to outcomes or favorable results, or geographic
area of service;
(C)
includes the name of a non-owner of the firm;
(D)
includes the name of a non-CPA, except as provided in paragraph
(4)(B) of this subsection;
(E)
states or implies educational or professional attainment
not supported in fact;
(F)
states or implies licensing recognition for the firm or
any of its owners not supported in fact; or
(G)
includes a designation such as "and company," "company,"
"associates," "and associates," "group" or abbreviations thereof or similar
designations implying that the firm has more than one employed licensee unless
there are at least two employed licensees involved in the practice. Independent
contractors are not considered employees under this subsection.
(4)
A word, abbreviation or other language is presumed not
misleading if it:
(A)
is the name, surname, or initials of one or more current
or former CPA owners of the firm, its predecessor firm or successor firm;
(B)
is the name, surname, or initials of one or more current
or former foreign practitioner owners of the firm, its predecessor firm or
successor firm who are or would have been eligible to practice public accountancy
in this state under §513.2 of this title (relating to Application for
Registration of Foreign Practitioners);
(C)
indicates the legal organization of the firm, or;
(D)
states or implies a limitation on the type of service offered
by the firm, such as "tax," "audit" or "investment advisory services," provided
the firm in fact principally limits its practice to the type of service indicated
in the name.
(5)
The board may place conditions on the licensing of a firm
in order to ensure compliance with the provisions of this section.
(b)
Additional Requirements Based on Legal Form or Ownership.
(1)
The names of a corporation, professional corporation, limited
liability partnership, professional limited liability company or other similar
legal forms of ownership must contain the form of ownership or an abbreviation
thereof, such as "Inc.," "P.C.," "L.L.P." or "P.L.L.C."; except that a limited
liability partnership organized before September 1, 1993 is not required to
utilize the words "limited liability partnership" or any abbreviation thereof.
(2)
Sole Proprietorships:
(A)
The name of a firm that is a sole proprietor must contain
the surname of the sole proprietor as it appears on the individual license
issued to the sole proprietor by the board.
(B)
A partner surviving the death of all other partners may
continue to practice under the partnership name for up to two years after
becoming a sole proprietor, notwithstanding subsection (d) of this section.
(c)
The name of any current or former owner may not be used
in a firm name during any period when such owner is prohibited from practicing
public accountancy and prohibited from using the title "certified public accountant,"
"public accountant" or any abbreviation thereof, unless specifically permitted
by the board.
(d)
A firm licensed by the board is required to report to the
board any change in the legal organization of the firm and amend the firm
name to comply with this section regarding firm names for the new organization
within thirty days of the effective date of such change.
(e)
This section regarding firm names does not affect firms
licensed by the board prior to the effective date of this section, but does
apply to any change in legal organization or name that occurs after the effective
date of this section. Nothing in this subsection prohibits the board from
placing conditions on the licensing of a firm pursuant to subsection (a)(5)
of this section at the time of renewal of the firm license.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on July 14, 2005.
TRD-200502882
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 28, 2005
For further information, please call: (512) 305-7848
22 TAC §501.86
The Texas State Board of Public Accountancy (Board) proposes
new §501.86, concerning Required Disclaimers.
The new §501.86 will establish the circumstances under which an entity
that is not qualified to register as a CPA firm may offer certain accounting
services or use certain forms reserved for CPAs by disclaiming any status
as a CPA firm.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed new rule will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the new rule will be zero.
B. the estimated reduction in costs to the state and to local governments
as a result of enforcing or administering the new rule will be zero.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the new rule will be zero.
Mr. Treacy has determined that for the first five-year period the new rule
is in effect the public benefits expected as a result of adoption of the proposed
new rule will be clarification of the circumstances in which an entity not
qualified to register as a CPA firm may offer certain services and the certain
terms if an appropriate disclaimer is used in advertising.
The probable economic cost to persons required to comply with the new rule
will be zero.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed new rule will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
new rule from any interested person. Comments must be received at the Board
no later than noon on August 26, 2005. Comments should be addressed to Rande
Herrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe,
Tower 3, Suite 900, Austin, Texas 78701 or faxed to her attention at (512)
305-7854.
Mr. Treacy has determined that the proposed new rule will not have an adverse
economic effect on small businesses because the cost of compliance is minimal.
The Board specifically invites comments from the public on the issues of
whether or not the proposed new rule will have an adverse economic effect
on small businesses; if the new rule is believed to have such an effect, then
how may the Board legally and feasibly reduce that effect considering the
purpose of the statute under which the new rule is to be adopted; and if the
new rule is believed to have such an effect, how the cost of compliance for
a small business compares with the cost of compliance for the largest business
affected by the new rule under any of the following standards: (a) cost per
employee; (b) cost for each hour of labor; or (c) cost for each $100 of sales.
See Texas Government Code, §2006.002(c).
The new rule is proposed under the Public Accountancy Act ("Act"),
Texas Occupations Code, §901.151 which authorizes the Board to adopt
rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed new rule.
§501.86.Required Disclaimers.
(a)
An entity that is not qualified to register as a CPA firm,
but which engages in aspects of public accountancy as permitted by statute
and employs or engages one or more certificate or registration holders in
such work must include an asterisk by the name of the employer or principal
in each advertisement or written statement by the certificate or registration
holder and/or by his employer or principal in which reference is made to the
certificate or registration holder or his association with the employer or
principal as such, which asterisk shall refer to a notation included in conspicuous
proximity and with reasonable prominence that says
"This firm is not qualified to be licensed as a CPA firm in Texas."
(b)
An entity that is not qualified to register as a CPA firm,
but which offers services using terms reserved to certificate or registration
holders and licensed CPA firms under the Act, but are permitted by statute
to be performed by persons or entities that do not hold a certificate or license
issued by the board, such as "internal audit services" or "forensic accounting
services", must include an asterisk by each such reserved term, which asterisk
shall refer to a notation included in conspicuous proximity and with reasonable
prominence that says
"This firm is not qualified
to be licensed as a CPA firm in Texas."
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on July 14, 2005.
TRD-200502883
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 28, 2005
For further information, please call: (512) 305-7848
22 TAC §505.10
The Texas State Board of Public Accountancy (Board) proposes
an amendment to §505.10, concerning Board Committees.
The amendment to §505.10 will modify the frequency with which the
peer assistance oversight committee reports to the Board.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the amendment will be zero.
B. the estimated reduction in costs to the state and to local governments
as a result of enforcing or administering the amendment will be zero.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the amendment will be zero.
Mr. Treacy has determined that for the first five-year period the amendment
is in effect the public benefits expected as a result of adoption of the proposed
amendment will be alignment of the committee's requirement to report to the
Board with the need for such reports based on the volume of information provided
by the committee.
The probable economic cost to persons required to comply with the amendment
will be zero.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed amendment will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
amendment from any interested person. Comments must be received at the Board
no later than noon on August 26, 2005. Comments should be addressed to Rande
Herrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe,
Tower 3, Suite 900, Austin, Texas 78701 or faxed to her attention at (512)
305-7854.
Mr. Treacy has determined that the proposed amendment will not have an
adverse economic effect on small businesses because the amendment does not
affect small businesses.
The Board specifically invites comments from the public on the issues of
whether or not the proposed amendment will have an adverse economic effect
on small business; if the amendment is believed to have such an effect, then
how may the Board legally and feasibly reduce that effect considering the
purpose of the statute under which the amendment is to be adopted; and if
the amendment is believed to have such an effect, how the cost of compliance
for a small business compares with the cost of compliance for the largest
business affected by the amendment under any of the following standards: (a)
cost per employee; (b) cost for each hour of labor; or (c) cost for each $100
of sales. See Texas Government Code, §2006.002(c).
The amendment is proposed under the Public Accountancy Act ("Act"),
Texas Occupations Code, §901.151 which authorizes the Board to adopt
rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§505.10.Board Committees.
(a) - (d)
(No change.)
(e)
Standing committee structure and charge to committees.
The standing committees shall consist of policy-making committees and working
committees comprised of the following individuals and shall be charged with
the following responsibilities.
(1) - (9)
(No change.)
(10)
The peer assistance oversight committee shall be a working
committee comprised of at least two board members, one of whom shall serve
as chair, assisted by at least two non-board members who shall serve in an
advisory capacity. The committee shall oversee the peer assistance program
administered by the Texas Society of Certified Public Accountants as required
under the Texas Health and Safety Code, Chapter 467.001(B), and insure that
the minimum criteria as set out by the Texas Commission on Alcohol and Drug
Abuse are met. It shall make recommendations to the board and the TSCPA regarding
modifications to the program and, if warranted, refer cases to other board
committees for consideration of disciplinary or remedial action by the board.
The committee shall report to the board on a
semi-annual
[
(11)
(No change.)
(f) - (h)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on July 14, 2005.
TRD-200502884
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 28, 2005
For further information, please call: (512) 305-7848
Subchapter C. EDUCATIONAL REQUIREMENTS
22 TAC §511.57
The Texas State Board of Public Accountancy (Board) proposes
an amendment to §511.57, concerning Definition of Accounting Courses.
The amendment to §511.57 will expand and clarify the means by which
an individual may comply with the Board's accounting course requirements.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the amendment will be zero.
B. the estimated reduction in costs to the state and to local governments
as a result of enforcing or administering the amendment will be zero.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the amendment will be zero.
Mr. Treacy has determined that for the first five-year period the amendment
is in effect the public benefits expected as a result of adoption of the proposed
amendment will be greater understanding of how an individual may meet the
Board's accounting course requirements.
The probable economic cost to persons required to comply with the amendment
will be zero.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed amendment will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
amendment from any interested person. Comments must be received at the Board
no later than noon on August 26, 2005. Comments should be addressed to Rande
Herrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe,
Tower 3, Suite 900, Austin, Texas 78701 or faxed to her attention at (512)
305-7854.
Mr. Treacy has determined that the proposed amendment will not have an
adverse economic effect on small businesses because the amendment does not
affect small businesses.
The Board specifically invites comments from the public on the issues of
whether or not the proposed amendment will have an adverse economic effect
on small business; if the amendment is believed to have such an effect, then
how may the Board legally and feasibly reduce that effect considering the
purpose of the statute under which the amendment is to be adopted; and if
the amendment is believed to have such an effect, how the cost of compliance
for a small business compares with the cost of compliance for the largest
business affected by the amendment under any of the following standards: (a)
cost per employee; (b) cost for each hour of labor; or (c) cost for each $100
of sales. See Texas Government Code, §2006.002(c).
The amendment is proposed under the Public Accountancy Act ("Act"),
Texas Occupations Code, §901.151 which authorizes the Board to adopt
rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§511.57.Definition of Accounting Courses.
(a)
An individual shall meet the
board's accounting course requirements in one of the following ways:
(1)
Hold a baccalaureate or higher degree from a
recognized educational institution and present a valid transcript from that
institution that shows degree credit for not fewer than 30 semester hours
of accounting courses as defined in subsection (c) of this section; or
(2)
Hold a baccalaureate or higher degree from a
recognized educational institution, and after obtaining the degree, complete
not fewer than 30 semester hours of accounting courses, as defined in subsection
(c) of this section, from four-year degree granting institutions, or accredited
community colleges, provided that all such institutions are recognized by
the board, and that the accounting programs offered at the community colleges
are reviewed and accepted by the board.
[
(b)
Credit for hours taken at recognized colleges and universities
using the quarter system shall be counted as 2/3 of a semester hour for each
hour of credit received under the quarter system.
(c)
The
[
(1)
intermediate accounting, advanced accounting;
(2)
cost accounting;
(3)
auditing, internal accounting control and evaluation;
(4)
report writing (principally writing financial reports,
internal control reports, and management letters);
(5)
financial statement analysis;
(6)
accounting theory, standards, and analysis;
(7)
up to twelve semester hours of income tax;
(8)
accounting for governmental and/or other nonprofit organizations;
(9)
up to twelve semester hours of accounting systems, including
management information systems ("MIS"), provided the MIS courses are listed
or cross-listed as accounting courses, and the college or university accepts
these courses as satisfying the accounting course requirements for graduation
with a degree in accounting;
(10)
fraud examination; and
(11)
an accounting internship program (not to exceed 3 semester
hours) which meets the following requirements:
(A)
the accounting knowledge gained is equal to or greater
than the knowledge gained in a traditional accounting classroom setting;
(B)
the employing firm provides the faculty coordinator and
the student with the objectives to be met during the internship;
(C)
the internship plan is approved in advance by the faculty
coordinator;
(D)
the employing firm provides a significant accounting work
experience with adequate training and supervision of the work performed by
the student;
(E)
the employing firm provides an evaluation of the student
at the conclusion of the internship, provides a letter describing the duties
performed and the supervision to the student, and provides a copy of the documentation
to the faculty coordinator and the student;
(F)
the student keeps a diary comprising a chronological list
of all work experience gained in the internship;
(G)
the student writes a paper demonstrating the knowledge
gained in the internship;
(H)
the student and/or faculty coordinator provides evidence
of all items upon request by the board;
(I)
the internship course shall not be taken until a minimum
of 12 semester hours of upper division course work has been completed; and
(J)
the internship course shall be taken prior to completing
the last full semester of course work in order to integrate the knowledge
gained during the internship into the curriculum requirements for the degree
program.
(12)
At its discretion, the board may accept up to three
semester hours of credit for accounting coursework not included in paragraphs
(1)-(11) of this subsection, including courses with substantial merit in the
context of a career in public accounting, and courses which are
[
(d)
The following types of courses do not meet
the accounting course definition in subsection (c) of this section:
(1)
elementary accounting;
(2)
principles of accounting;
(3)
financial and managerial accounting;
(4)
introductory accounting courses;
(5)
accounting software courses;
and,
(6)
[
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State on July 14, 2005.
TRD-200502885
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 28, 2005
For further information, please call: (512) 305-7848
22 TAC §515.8
The Texas State Board of Public Accountancy (Board) proposes
an amendment to §515.8, concerning Retirement Status or Permanent Disability.
The amendment to §515.8 will clarify the requirements and procedures
for a certificate or registration holder to claim and maintain retirement
or permanent disability status.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the amendment will be zero.
B. the estimated reduction in costs to the state and to local governments
as a result of enforcing or administering the amendment will be zero.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the amendment will be zero.
Mr. Treacy has determined that for the first five-year period the amendment
is in effect the public benefits expected as a result of adoption of the proposed
amendment will be improved understanding of the requirements to claim and
maintain retirement or permanent disability status.
The probable economic cost to persons required to comply with the amendment
will be zero.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed amendment will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
amendment from any interested person. Comments must be received at the Board
no later than noon on August 26th, 2005. Comments should be addressed to Rande
Herrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe,
Tower 3, Suite 900, Austin, Texas 78701 or faxed to her attention at (512)
305-7854.
Mr. Treacy has determined that the proposed amendment will not have an
adverse economic effect on small businesses because no new requirements are
imposed on small businesses.
The Board specifically invites comments from the public on the issues of
whether or not the proposed amendment will have an adverse economic effect
on small business; if the amendment is believed to have such an effect, then
how may the Board legally and feasibly reduce that effect considering the
purpose of the statute under which the amendment is to be adopted; and if
the amendment is believed to have such an effect, how the cost of compliance
for a small business compares with the cost of compliance for the largest
business affected by the amendment under any of the following standards: (a)
cost per employee; (b) cost for each hour of labor; or (c) cost for each $100
of sales. See Texas Government Code, §2006.002(c).
The amendment is proposed under the Public Accountancy Act ("Act"),
Texas Occupations Code, §901.151 which authorizes the Board to adopt
rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§515.8.Retirement Status or Permanent Disability.
(a)
Retired status. An individual who holds a current license
who is 60 years old and has filed a request on a form prescribed by the board
stating the licensee is no longer employed may be granted retired status at
the time of license renewal.
[
(1)
[
(2)
[
(3)
[
[
(b)
Permanent disability status. Permanent disability status
may be granted to a
certificate or registration holder
[
[
(1)
[
(2)
[
(3)
[
[
(c)
For purposes of this section
the term "association with accounting work" shall include the following:
(1)
working or supervising work performed in the
areas of financial accounting and reporting; tax compliance, planning or advice;
management advisory services; accounting information systems; treasury, finance,
or audit; or
(2)
representing to the public, including an employer,
that the licensee is a CPA or public accountant in connection with the sale
of any services or products involving accounting work, including such designation
on a business card, letterhead, promotional brochure, advertisement, or office;
or
(3)
offering testimony in a court of law purporting
to have expertise in accounting and reporting, auditing, tax, or management
services; or
(4)
for purposes of making a determination as to
whether the licensee fits one of the categories listed in subsections (a)
or (b) of this section the questions shall be resolved in favor of inclusion
of the work as in "association with accounting work."
(d)
All board rules and all provisions
of the Act apply to a certificate or registration holder in retired or permanent
disability status.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on July 14, 2005.
TRD-200502886
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 28, 2005
For further information, please call: (512) 305-7848
22 TAC §521.2
(Editor's note: The text of the following section proposed for
repeal will not be published. The section may be examined in the offices of
the Texas State Board of Public Accountancy or in the Texas Register office,
Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas State Board of Public Accountancy (Board)
proposes the repeal of §521.2 concerning Examination Fees.
The proposed repeal of §521.2 will remove a rule that is no longer
necessary. The fees shown in the rule are not collected by the Board; therefore
the rule is not needed.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the repeal will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the repeal will be zero.
B. the estimated reduction in costs to the state and to local governments
as a result of enforcing or administering the repeal will be zero.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the repeal will be zero.
Mr. Treacy has determined that for the first five-year period the repeal
is in effect the public benefits expected as a result of adoption of the repeal
will be removal of a rule that is no longer necessary.
The probable economic cost to persons required to comply with the repeal
will be zero.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed repeal will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
repeal from any interested person. Comments must be received at the Board
no later than noon on August 26, 2005. Comments should be addressed to Rande
Herrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe,
Tower 3, Suite 900, Austin, Texas 78701 or faxed to her attention at (512)
305-7854.
Mr. Treacy has determined that the proposed repeal will not have an adverse
economic effect on small businesses because there is no cost to small businesses.
The Board specifically invites comments from the public on the issues of
whether or not the proposed repeal will have an adverse economic effect on
small business; if the repeal is believed to have such an effect, then how
may the Board legally and feasibly reduce that effect considering the purpose
of the statute under which the repeal is to be adopted; and if the repeal
is believed to have such an effect, how the cost of compliance for a small
business compares with the cost of compliance for the largest business affected
by the repeal under any of the following standards: (a) cost per employee;
(b) cost for each hour of labor; or (c) cost for each $100 of sales. See Texas
Government Code, §2006.002(c).
The repeal is proposed 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 this proposed repeal.
§521.2.Examination Fees.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State on July 14, 2005.
TRD-200502887
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 28, 2005
For further information, please call: (512) 305-7848
Subchapter B. CONTINUING PROFESSIONAL EDUCATION RULES FOR INDIVIDUALS
$180
];
$180
];
$180
];
$90
];
$180
];
$90
];
$180
];
Part 22.
TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY
preceding
] becomes subject to disclosure and discovery under the procedural
rules of the forum where the matter for which his services were engaged is
pending.
insure
] that he does not inadvertently become
a testifying expert through the actions of his client. An accounting expert
may not accept a contingent fee for part of an engagement and a set fee for
part of the same engagement. A consulting accounting expert who becomes a
testifying expert may not accept a contingent fee for the part of his work
done as a consultant, but must be compensated on a set fee basis for all of
the work performed on the same engagement. A consulting accounting expert
who enters into a contingent fee engagement should reach an agreement, preferably
in writing, with the client as to how he will be compensated should he become
a testifying expert prior to beginning the engagement.
Subchapter D. RESPONSIBILITIES TO THE PUBLIC
: "This firm is not a CPA firm." The disclaimer must be included
in conspicuous proximity to the name of the unlicensed entity and be printed
in type not less bold than that contained in the body of the advertisement
or written statement. If the advertisement is in audio format only, the disclaimer
shall be clearly declared at the conclusion of each such presentation.
]
federally-insured depository
] institution,
as defined
by §201.101, Finance Code, from preparing or presenting records or documents
when lawfully acting within the scope of the [
legally permitted
] activities of the
institution
[
institution's trust
department
].
Chapter 505.
THE BOARD
quarterly
] basis, by case number, on the status of the program.
Chapter 511.
CERTIFICATION AS A CPA
(a)
An individual who holds a
baccalaureate degree from a recognized educational institution may enter into
a course of study at an accredited community college, provided that the accounting
program offered at the community college was reviewed and accepted by the
board.]
Effective January 1, 2004 the
]
board will accept not fewer than 30 passing semester hours of [
upper
division
] accounting courses without repeat from the courses listed
below.
The courses must meet the board's standards by containing sufficient
business knowledge and application to be useful to candidates taking the Uniform
CPA Examination.
A recognized educational institution must have accepted
the courses for purposes of obtaining a baccalaureate degree or its equivalent,
and they must be shown on an official transcript. At least 15 of these hours
must result from physical attendance at classes meeting regularly on the campus
of
the
[
any
] transcript-issuing institution.
any other course which is
] principally accounting or auditing in nature
but which may be designated by some other name
. For any course submitted
under this provision, the Accounting Faculty Head or Chair must affirm to
the board in writing its merit and content.
[
(and the verification
of which is obtained in writing from the particular college or university).
After the November 1997 examination, elementary accounting may not be considered
under this rule; and
]
(13)
] any CPA review course offered
by an educational institution or of a proprietary nature may not be considered
in meeting the requirements under this rule.
Chapter 515.
LICENSES
(1)
]
A
certificate or registration holder
[
licensee
] who has been granted retired status and who
reenters the work force in a position that has an association with accounting
work for which he receives compensation
[
becomes employed
]
automatically loses the retired status
. Upon reentry into the workforce
under such conditions, the certificate or registration holder
[
and
] must notify the board and request a new
license
renewal
notice and:
(A)
] pay the license fee established
by the board for the period since he became employed;
(B)
] complete a new license renewal
notice; and
(C)
] meet the continuing professional
education requirements for the period since he was granted the retired status.
(2)
All board rules and all provisions
of the Act apply to a licensee in either an active or retired status.]
licensee
] who submits to the board a statement and a notarized affidavit from
the licensee's physician stating that the
certificate or registration
holder
[
licensee
] is unable to work and clearly details the
disability. This status may be granted only at the time of license renewal.
(1)
]
A
certificate or registration holder
[
licensee
] who has been granted permanent disability status
and who
reenters the work force in a position that has an association
with accounting work for which he receives compensation
[
becomes
employed
] automatically loses the permanent disability status
. Upon reentry into the workforce under such conditions, the certificate or
registration holder
[
and
] must notify the board and request
a new license renewal notice and:
(A)
] pay the license fee established
by the board for the period since he became employed;
(B)
] complete a new license renewal
notice; and
(C)
] meet the continuing professional
education requirements for the period since he was granted disability status.
(2)
All board rules and all provisions
of the Act apply to a licensee in permanent disability status.]
Chapter 521.
FEE SCHEDULE
Chapter 523.
CONTINUING PROFESSIONAL EDUCATION