TITLE 22.EXAMINING BOARDS

Part 22. TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY

Chapter 519. PRACTICE AND PROCEDURE

Subchapter D. PROCEDURES AFTER HEARING

22 TAC §519.72

The Texas State Board of Public Accountancy adopts an amendment to §519.72 concerning Procedures After Hearing without changes to the proposed text as published in the November 24, 2006, issue of the Texas Register (31 TexReg 9567). The text of the rule will not be republished.

The amendment makes it clear that the responsibility of final decisions and sanctions rests with the Board.

The amendment states that the Board makes final decisions in all disciplinary matters, including the assessment of sanctions.

Two comments were received regarding adoption of the rule from Marc R. Core, CPA and President of the Texas Association of Certified Public Accountants.

The first comment suggested that the Board provide that the ruling of the Administrative Law Judge (ALJ), not the Board, make the final decision. Mr. Core suggested that the Board making the final determination could be construed as arbitrarily denying a licensee due process by having the same agency that brings the action also decide the matter. The committee does not agree with the comment because the Board members deciding the case are in no way associated with the prosecution of the case. The separation of the prosecution by the committee and the staff provide a fair process.

The second comment suggested that a copy of the final decision or order of the Board shall be delivered or mailed to all parties and, if represented by counsel, to their attorneys of record. We are in agreement that the respondent or respondent's attorney should be notified by the Board with sufficient time to provide an opportunity to file a timely motion for rehearing. The existing Board rule provides for mailed notices. The Board's practice has been to interpret those rules to mean that the 20 days to file a motion for rehearing, when the respondent was not present during the Board's action, does not begin to run until notice has been mailed. This allows the time Mr. Core is seeking.

Mailing notice of the decision to the respondent, as suggested by Mr. Core, in addition to respondent's attorney would be an inappropriate communication by the Board's legal staff. When an individual is represented by legal counsel the Board's legal staff may only communicate with that person's attorney. Mailing notice to both respondent and his attorney would violate State Bar rules.

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.

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 26, 2007.

TRD-200700218

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Effective date: February 15, 2007

Proposal publication date: November 24, 2006

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