Part 22. TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY
Chapter 501. RULES OF PROFESSIONAL CONDUCT
Subchapter A. GENERAL PROVISIONS
The Texas State Board of Public Accountancy (Board) proposes an amendment to §501.52 concerning Definitions.
The amendment to §501.52 will: replace (22) with (21) in paragraph (17).
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be zero because the amendment does not require the state to do anything.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the amendment will be none.
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 clearer definitions that are consistent with changes in the Texas Public Accountancy Act as well as changes in other Board rules.
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.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
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 May 12, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe, Tower 3, Suite 900, Austin, Texas 78701 or faxed to his attention at (512) 305-7854.
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 propose rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§501.52.Definitions.
The following words and terms, when used in title 22, part 22 of the Texas Administrative Code relating to the Texas State Board of Public Accountancy, shall have the following meanings, unless the context clearly indicates otherwise. The masculine shall be construed to include the feminine or neuter and vice versa, and the singular shall be construed to include the plural and vice versa.
(1) "Act" means the Public Accountancy Act, Chapter 901, Occupations Code;
(2) "Advertisement" means a message which is transmitted to persons by, or at the direction of, a person and which has reference to the availability of the person to perform Professional Accounting Services;
(3) "Affiliated entity" means an entity controlling or being controlled by or under common control with another entity, directly or indirectly, through one or more intermediaries;
(4) "Attest Service" means:
(A) an audit or other engagement required by the board to be performed in accordance with the auditing standards adopted by the AICPA, PCAOB, or another national or international accountancy organization recognized by the board;
(B) a review, compilation or other engagement required by the board to be performed in accordance with standards for accounting and review services adopted by the AICPA or another national or international accountancy organization recognized by the board;
(C) an engagement required by the board to be performed in accordance with standards for attestation engagements adopted by the AICPA or another national or international accountancy organization recognized by the board; or
(D) any other assurance service required by the board to be performed in accordance with professional standards adopted by the AICPA or another national or international accountancy organization recognized by the board;
(5) "Board" means the Texas State Board of Public Accountancy;
(6) "Charitable Organization" means an organization which has been granted tax-exempt status under the Internal Revenue Code of 1986, §501(c), as amended;
(7) "Client" means a party who enters into an agreement with a license holder or a license holder's employer to receive a professional accounting service or professional accounting work;
(8) "Client Practice of Public Accountancy" is the offer to perform or the performance by a person for a client or a potential client of professional accounting services or professional accounting work, and also includes:
(A) the advice or recommendations in connection with the sale or offer for sale of products (including the design and implementation of computer software), when the advice or recommendations routinely require or imply the possession of accounting or auditing skills or expert knowledge in auditing or accounting; and
(B) the performance of litigation support services;
(9) "Commission" means compensation for recommending or referring any product or service to be supplied by another party;
(10) "Contingent fee" means a fee for any service where no fee will be charged unless a specified finding or result is attained, or in which the amount of the fee is otherwise dependent upon the finding or result of such service. However, a person's non-Contingent fees may vary depending, for example, on the complexity of the services rendered. Fees are not contingent if they are fixed by courts or governmental entities acting in a judicial or regulatory capacity, or in tax matters if determined based on the results of judicial proceedings or the findings of governmental agencies acting in a judicial or regulatory capacity, or if there is a reasonable expectation of substantive review by a taxing authority;
(11) "Financial Statements" means a presentation of financial data, including accompanying notes, derived from accounting records and intended to communicate an entity's economic resources or obligations at a point in time, or the changes therein for a period of time, in accordance with generally accepted accounting principles or other comprehensive basis of accounting. Incidental financial data to support recommendations to a client or in documents for which the reporting is governed by Statements or Standards for Attestation Engagements and tax returns and supporting schedules do not constitute financial statements for the purposes of this definition;
(12) "Firm" means a sole proprietorship, partnership, limited liability partnership, limited liability company, corporation or other legally recognized business entity engaged in the practice of public accountancy;
(13) "Good standing" means compliance by a licensee with the board's licensing rules, including the mandatory continuing education requirements and payment of the annual license fee, and any penalties and other costs attached thereto. In the case of board-imposed disciplinary or administrative sanctions, the person must be in compliance with all the provisions of the board order to be considered in good standing;
(14) "Licensee" means the holder of a license issued by the board to a person pursuant to the Act, or pursuant to provisions of a prior Act;
(15) "Out of state practitioner and out of state firm" means a person licensed in another jurisdiction practicing in Texas pursuant to a practice privilege as provided for in §901.461 and §901.462 of the Act;
(16) "Peer review", "Quality Review" or "Compliance Assurance" means the study, appraisal, or review of the professional accounting work of a public accountancy firm that performs attest services by a certificate holder who is not affiliated with the firm;
(17) "Person" means an individual, sole proprietorship,
partnership, limited liability partnership, limited liability company,
corporation or other legally recognized business entity that provides
or offers to provide professional accounting services or professional
accounting work as defined in paragraph (21) [(22)]
of this section;
(18) "Principal office" means the location specified by the client as the address to which a service described in §517.1(a)(2) is directed and is synonymous with Home Office where it appears in the Act;
(19) "Practice unit" means an office of a firm required to be licensed with the board for the purpose of the client practice of public accountancy;
(20) "Practice privilege" means the privilege for an out-of-state person to provide certain Professional Accounting Services or Professional Accounting Work in Texas to the extent permitted under Chapter 517 of the board rules;
(21) "Professional Accounting Services" or "professional accounting work" means services or work that requires the specialized knowledge or skills associated with certified public accountants, including:
(A) issuing reports on financial statement(s);
(B) providing management or financial advisory or consulting services;
(C) preparing tax returns;
(D) providing advice in tax matters;
(E) providing forensic accounting services; and
(F) providing internal auditing services.
(22) "Report" means an opinion, report, or other document, prepared in connection with an attest service that states or implies assurance as to the reliability of financial statement(s); and includes or is accompanied by a statement or implication that the person issuing the opinion, report, or other document has special knowledge or competence in accounting or auditing. A statement or implication of assurance as to the reliability of a financial statement or as to the special knowledge or competence of the person issuing the opinion, report, or other document includes any form of language that is conventionally understood to constitute such a statement or implication. A statement or implication of special knowledge or competence in accounting or auditing may arise from the use by the issuer of the opinion, report, or other document of a name or title indicating that the person is an accountant or auditor; or the language of the opinion, report, or other document itself.
(23) Interpretive Comment: The practice of public accountancy is defined in §901.003 of the Act (relating to the Practice of Public Accountancy).
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 March 31, 2008.
TRD-200801678
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: May 11, 2008
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy (Board) proposes an amendment to §501.75, concerning Confidential Client Communications.
The amendment to §501.75 will replace the word "subpoena" with the phrase "court order".
William Treacy, Executive Director of the Board, has determined that, for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be zero because the amendment does not require the state to do anything.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the amendment will be none.
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 a rule that mirrors the requirement in the Texas Public Accountancy Act.
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.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
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 May 12, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe, Tower 3, Suite 900, Austin, Texas 78701 or faxed to his attention at (512) 305-7854.
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.
§501.75.Confidential Client Communications.
Except by permission of the client or the authorized representatives
of the client, a person or any partner, officer, shareholder, or employee
of a person shall not voluntarily disclose information communicated
to him by the client relating to, and in connection with, professional
accounting services or professional accounting work rendered to the
client by the person. Such information shall be deemed confidential.
However, nothing herein shall be construed as prohibiting the disclosure
of information required to be disclosed by the standards of the public
accounting profession in reporting on the examination of financial
statements or as prohibiting disclosures pursuant to a court order
[subpoena] or other compulsory process, in
investigations or proceedings under the Act, in ethical investigations
conducted by private professional organizations, or in the course
of peer reviews.
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 March 31, 2008.
TRD-200801679
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: May 11, 2008
For further information, please call: (512) 305-7848
Subchapter C. EDUCATIONAL REQUIREMENTS
The Texas State Board of Public Accountancy (Board) proposes new §511.59 concerning Definition of 150 Semester Hours.
The new §511.59 will provide a definition of the 150 semester hours required to qualify to sit for the CPA exam.
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 none.
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 none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the new rule will be none.
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 a clearer understanding of the 150 semester hours requirement necessary to qualify to sit for the CPA exam.
The probable economic cost to persons required to comply with the new rule will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed new rule will not affect a local economy.
Mr. Treacy has determined that the proposed new rule will not have an adverse economic effect on small businesses because the rule does not impose any additional requirements, it merely clarifies existing requirements.
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 May 12, 2008, Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe, Tower 3, Suite 900, Austin, Texas 78701 or faxed to his attention at (512) 305-7854.
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 business; 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 propose rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed new rule.
§511.59.Definition of 150 Semester Hours.
An individual holding a baccalaureate degree shall meet the board's 150 semester hours or quarter hour equivalents of courses in one of the following ways:
(1) Complete a master's degree or higher degree conferred by a university that is recognized by the Board; or
(2) Complete the upper level accounting courses needed to take the CPA examination as defined in §511.57 of this chapter. The hours required for a baccalaureate degree plus the additional hours must equal or exceed 150 semester hours; or
(3) Complete additional semester hours or quarter hour equivalents of upper level courses that enhance professional skills and competence, beyond the accounting hours required for a baccalaureate degree in accounting, from a university that is recognized by the Board. The hours required for a baccalaureate degree plus the additional hours must equal or exceed 150 semester hours. The coursework should be in established courses offered through colleges within the university such as: architecture, business administration, communications, engineering, fine arts, liberal arts, science, or another established discipline.
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 March 31, 2008.
TRD-200801677
J. Randell (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: May 11, 2008
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy (Board) proposes an amendment to §511.122, Acceptable Work Experience.
The amendment to §511.122, will insert the following text "or higher" after text "level" and insert text "add skills" after the text "knowledge" in subsection (b); in subsection (c)(5) replace the following text "as approved by the board will" with the following text "on a full time basis may"; add subsection (c)(8) with the following text "Self employment may not be used to satisfy the work experience requirement unless approved by 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 because the amendment does not require the state to do anything.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
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 a rule that clarifies what constitutes acceptable work experience.
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.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small business.
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 May 12, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe, Tower 3, Suite 900, Austin, Texas 78701 or faxed to his attention at (512) 305-7854.
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 propose rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§511.122.Acceptable Work Experience.
(a) (No change.)
(b) Non-routine accounting involves the use of independent judgment, applying entry level or higher professional accounting knowledge and skills to select, correct, organize, interpret, and present real-world data as accounting entries, reports, statements, and analyses extending over a diverse range of tax, accounting, assurance, and control situations.
(c) All work experience, to be acceptable, shall be gained in the following categories or in any combination of these.
(1) Client practice of public accountancy. All work experience gained in a firm in the client practice of public accountancy must be of a non-routine accounting nature which continually requires independent thought and judgment on important accounting matters. If such firm is a CPA firm it shall be in good standing with the board, or, if the experience is gained in another state or territory, the firm shall be in good standing and in compliance with all laws applicable to CPA firms of that state or territory.
(2) Industry. All work experience gained in industry shall be of a non-routine accounting nature which continually requires independent thought and judgment on important accounting matters. Acceptable industry work experience includes:
(A) internal auditor;
(B) staff, fund or tax accountant;
(C) accounting, financial or accounting systems analyst; and
(D) controller.
(3) Government. All work experience gained in government shall be of a non-routine accounting nature which continually requires independent thought and judgment on important accounting matters and which meets the criteria in subparagraphs (A) - (E) of this paragraph. The board will review on a case-by-case basis experience which does not clearly meet the criteria identified in subparagraphs (A) - (E) of this paragraph. Acceptable government work experience includes but is not limited to:
(A) employment in state government as an accountant or auditor at Salary Classification B6 or above, or a comparable rating;
(B) employment in federal government as an accountant or auditor at a GS Level 7 or above;
(C) employment as a special agent accountant with the FBI;
(D) military service, as an accountant or auditor as a Second Lieutenant or above; and
(E) employment with other governmental entities as an accountant or auditor.
(4) Law firm. All work experience gained in a law firm shall be of a non-routine accounting nature which continually requires independent thought and judgment on important accounting matters comparable to the experience ordinarily found in a CPA firm, shall be under the supervision of a CPA or an attorney, and shall be in one or more of the following areas:
(A) tax--planning, compliance and litigation and;
(B) estate planning.
(5) Education. Work experience gained as an instructor
at a college or university will qualify if evidence is presented showing
independent thought and judgment was used on non-routine accounting
matters. Only the teaching of upper division courses
on a full time basis may [
as approved by the board will] be
considered. All experience shall be supervised by the department chair
or faculty member who is a CPA.
(6) Internship. The Board will consider, on a case-by-case basis, experience acquired through the accounting internship program, provided evidence is submitted demonstrating that the experience was comparable to that of a full-time staff accountant in non-routine accounting matters. If an accounting internship course is counted toward fulfilling the education requirement, the internship may not be used to fulfill the work experience requirement.
(7) Other. Work experience gained in other positions may be approved by the board as experience comparable to that gained in the practice of public accountancy under the supervision of a CPA upon certification by the person or persons supervising the candidate that the experience was of a non-routine accounting nature which continually required independent thought and judgment on important accounting matters.
(8) Self employment may not be used to satisfy the work experience requirement unless approved by the Board.
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 March 31, 2008.
TRD-200801676
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: May 11, 2008
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy (Board) proposes an amendment to §511.163 concerning Examination on the Rules of Professional Conduct.
The amendment to §511.163 will delete the original subsection (a); add new subsection (a), the new text will be "Candidates applying for the issuance of the CPA certificate who have not completed a board-approved ethics course within the past two years to meet the education requirements to take the CPA Examination, must successfully complete a board-approved four-hour ethics course of comprehensive study on the Rules of Professional Conduct of the board (chapter 501) offered through a board-approved and registered provider of continuing professional education."; add new subsection (b) with the new text "Candidates applying for the issuance of the CPA certificate who completed a board-approved ethics course to meet the education requirements to take the CPA Examination more than two years prior to the date of submitting the application for issuance of the CPA certificate must successfully complete a board-approved four-hour ethics course of comprehensive study on the Rules of Professional Conduct of the board, (chapter 501) offered through a board-approved and registered provider of continuing professional education."; renumber the original subsection (b) with subsection (c); renumber the original subsection (c) with paragraph (1) and add the text "on the Rules of Professional Conduct"; renumber subsection (d) with paragraph (2); renumber subsection (d)(1) with subparagraph (A); delete subsection (d)(2).
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be zero because the amendment does not require the state to do anything.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
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 a rule that clarifies where a test candidate can find the rules that form the basis of the test on the rules of professional conduct and allows the candidate to take a second re-exam rather than waiting six months.
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.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small business.
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 May 12, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe, Tower 3, Suite 900, Austin, Texas 78701 or faxed to his attention at (512) 305-7854.
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.
§511.163. Board Approved Ethics Requirement and Examination on the Rules of Professional Conduct.
(a) Candidates applying for the issuance of the
CPA certificate who have not completed a board-approved ethics course
within the past two years to meet the education requirements to take
the CPA Examination, must successfully complete a board-approved four-hour
ethics course of comprehensive study on the Rules of Professional
Conduct of the board (chapter 501) offered through a board-approved
and registered provider of continuing professional education. [
Candidates applying for the issuance of the CPA certificate must successfully
complete a board-approved four-hour ethics course of comprehensive
study on the Rules of Professional Conduct of the board, offered through
a board-approved and registered provider of continuing professional
education.]
(b) Candidates applying for the issuance of the CPA certificate who completed a board-approved ethics course to meet the education requirements to take the CPA Examination more than two years prior to the date of submitting the application for issuance of the CPA certificate must successfully complete a board-approved four-hour ethics course of comprehensive study on the Rules of Professional Conduct of the board, (chapter 501) offered through a board-approved and registered provider of continuing professional education.
(c) [(b)] Candidates applying
for the issuance of the CPA certificate must also pass an examination
on the rules of professional conduct promulgated by the board.
(1) [(c)] The examination on
the Rules of Professional Conduct must be completed not more
than six months prior to the issuance of the CPA certificate.
(2) [(d)] A grade of 85% must
be scored on the exam in order to be considered passing.
(3) [(1)] If a grade of 85%
is not scored on the exam, the candidate will be sent another exam.
[(2) Failure to score at least 85%
on the re-exam test would prevent the candidate from taking the exam
for six months. Failure to again score less than 85% would continue the cycle.]
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 March 31, 2008.
TRD-200801675
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: May 11, 2008
For further information, please call: (512) 305-7848
22 TAC §§511.164 - 511.167, 511.171, 511.173, 511.174, 511.176
(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas State Board of Public Accountancy or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas State Board of Public Accountancy (Board) proposes the repeal of §§511.164, Names on Certificate; 511.165, Certificate; 511.166, Replacement Certificates; 511.167, Relinquishing a Certificate or Registration; 511.171, Voluntary Surrender of Certificate; 511.173, Filing Complaints; 511.174, Action Relating to Complaints; and 511.176, Certification Hearings.
The proposed repeal of these rules will be removed because they are no longer relevant. A new chapter will be added including these rules.
William Treacy, Executive Director of the Board, has determined that, for the first five-year period the proposed repeal will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the repeal will be none.
B. the estimated reductions in costs to the state and to local governments as a result of enforcing or administering the repeal will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the repeal will be none.
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 the elimination of a rule that is no longer relevant.
The probable economic cost to persons required to comply with the repeal will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed repeal will not affect a local economy.
Mr. Treacy has determined that the proposed repeal will not have an adverse economic effect on small businesses because the repeal does not impose any duties or obligations upon small businesses.
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 May 12, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe, Tower III, Suite 900, Austin, Texas 78701 or faxed to his attention at (512) 305-7854.
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.
§511.164.Names on Certificate.
§511.165.Certificate.
§511.166.Replacement Certificates.
§511.167.Relinquishing a Certificate or Registration.
§511.171.Voluntary Surrender of Certificate.
§511.173.Filing Complaints.
§511.174.Action Relating to Complaints.
§511.176.Certification Hearings.
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 March 31, 2008.
TRD-200801680
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: May 11, 2008
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy (Board) proposes new Chapter 514 concerning Certification as a CPA.
The new Chapter 514 will provide new §514.1, concerning Names on Certificates, §514.2, concerning Certificate, §514.3, concerning Replacement Certificates, §514.4, concerning Filing Complaints, §514.5, concerning Action Relating to Complaints, §514.6, concerning Voluntary Surrender of Certificate and §514.7, concerning Certification Hearings.
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed new rules will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the new rules will be none.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the new rules will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the new rules will be none.
Mr. Treacy has determined that for the first five-year period the new rules are in effect the public benefits expected as a result of adoption of the proposed new rules will be adding a new section to distinguish between certificate holders and applicants applying for certification.
The probable economic cost to persons required to comply with the new rules will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed new rules will not affect a local economy.
Mr. Treacy has determined that the proposed new rules will not have an adverse economic effect on small businesses because these rules do not enlarge the board's powers regarding certificates or applicants, but by grouping the rules pertaining to licensees together to distinguish the licensing rules from the rules for eligibility in Chapter 511.
The Board requests comments on the substance and effect of the proposed new rules from any interested person. Comments must be received at the Board no later than noon on May 12, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe, Tower 3, Suite 900, Austin, Texas 78701 or faxed to his attention at (512) 305-7854.
The Board specifically invites comments from the public on the issues of whether or not the proposed new rules will have an adverse economic effect on small business; if the new rules are 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 rules are to be adopted; and if the new rules are 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 rules 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 rules are 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 these proposed new rules.
§514.1.Names on Certificates.
(a) The certificate of a certified public accountant shall be issued under the legal name of the candidate as it appears on the birth certificate, current passport or alien registration card or as changed by court order, marriage license, or divorce decree.
(b) The license of a certified public accountant may be issued in the name of the licensee as it appears on the birth certificate or other appropriate legal document in accordance with §511.22 of this title (relating to Initial Filing of the Application of Intent) or as changed by court order, marriage license, or divorce decree.
(c) At the candidate's option, words or abbreviations such as "Jr." or "III" do not have to appear on the certificate, license, or the board's records even though such words or abbreviations are part of the candidate's legal name.
§514.2.Certificate.
All certificates shall be issued in the name of the board and may bear the signature of all board members and the seal of the Texas State Board of Public Accountancy.
§514.3.Replacement Certificates.
(a) Replacement certificates may be issued by the board in appropriate cases and upon payment by the certified public accountant or public accountant of the fee as determined by the board in §521.11 of this title (relating to Fee for the Replacement of a Certificate). A registration or certificate holder is specifically prohibited from possessing more than one Texas certificate as a certified public accountant or registration as a public accountant.
(b) When a replacement certificate is requested, the registration or certificate holder must return the original or registration certificate or submit a sworn affidavit describing the occurrence that necessitated the replacement certificate or registration.
§514.4.Filing Complaints.
The board may, on its own motion, or on the complaint of any person, initiate proceedings to determine the eligibility of any candidate for the issuance of a certificate. Chapter 519 of this title (relating to Practice and Procedure) provides for the notice and hearing. Sufficient cause for this action includes, but is not limited to, any of the following instances:
(1) fraud or deceit by a candidate on the certification application;
(2) final conviction of a felony or of any crime, involving dishonesty, fraud, moral turpitude, alcohol abuse or controlled substances, under the laws of any state or of the United States, or the imposition of deferred adjudication in connection with the criminal prosecution of such an offense; or
(3) conduct indicating a lack of fitness to serve the public as a professional accountant.
§514.5.Action Relating to Complaints.
(a) The board, having conducted a hearing under this title, may reach the following conclusions:
(1) deny the candidate the opportunity for issuance of a certificate;
(2) prohibit the candidate from certification for a period not to exceed five years;
(3) issue the candidate a certificate with conditions and requirements established by the board; or
(4) close the case without adverse action against the candidate.
(b) The board shall refund the fee submitted by the candidate for certification if the candidate is denied the issuance of a certificate.
(c) The candidate may petition the board in writing for a reversal of the board's findings. After notice and hearing the board may:
(1) approve an application for certification that was previously denied;
(2) uphold its prior findings;
(3) overturn its prior findings; or
(4) modify its prior findings.
§514.6.Voluntary Surrender of Certificate.
(a) A certificate holder who is not under investigation by the board may voluntarily surrender his certificate by delivering the certificate to the board along with a written statement of intent to voluntarily surrender the certificate. Once a certificate holder has surrendered his certificate, he is no longer eligible to hold a license under §901.402 of the Act and licensing exemptions will no longer apply.
(b) A former certificate holder who has voluntarily surrendered his certificate under subsection (a) of this section may apply for a new certificate upon completion of the examination requirement for a new certificate. The board may waive the examination requirement for a former certificate holder upon submission of the following to the board:
(1) evidence of completion of all CPE that would have been required to be completed up to a maximum of 120 hours over the three years immediately preceding application;
(2) a sworn affidavit in the form provided by the board stating that the former certificate holder has not been convicted of, placed on community supervision or accepted deferred adjudication for any felony crime or for any misdemeanor crime involving fraud, dishonesty or moral turpitude under the laws of any state or the United States and that the former certificate holder did not surrender the certificate to avoid disciplinary action by the board or to avoid administrative revocation under board rules adopted pursuant to §§901.159, 901.411 or 901.502 of the Act; and
(3) payment of all license fees that would have been paid if the former certificate holder's license had been active since the date of surrender and all applicable late fees.
(c) A new certificate issued to a former certificate holder will bear the same certificate number as the original certificate.
(d) If an individual, subject to the approval of the Board, voluntarily surrenders and resigns the certificate or registration during the course of a disciplinary investigation or proceeding conducted by the board, this fact shall be disclosed in any later application for a new certificate, and shall be considered before the issuance of a new certificate.
§514.7.Certification Hearings.
Unless otherwise determined by the board, the following are reasons why a person may not be certified as a CPA.
(1) The individual has been convicted of a felony offense, which results in incarceration, probation, parole, mandatory supervision or deferred adjudication.
(2) The individual has been convicted of a felony or misdemeanor offense, or granted a deferred adjudication which directly relates to the practice of public accountancy.
(3) A person applying for the issuance of a certificate who can be identified in paragraphs (1) or (2) of this section has the right to a hearing before the board, to present evidence relative to the conviction. As a part of the hearing, the board's consideration shall include the following issues before reaching a decision:
(A) the nature and seriousness of the crime as it applies to the board's statutory responsibility to ensure that a person maintains high standards of competence and integrity;
(B) the extent to which the person might have an opportunity to repeat criminal activity of the same type as that in which the individual was previously involved;
(C) the relationship of the crime to the ability, capacity, or fitness required to perform the duties and discharge the responsibilities of a certified public accountant; and
(D) the additional factors provided in §53.023 of the Texas Occupations Code.
(4) 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 reports and other services of licensees, the board considers that the following crimes directly relate to the practice of public accountancy:
(A) a felony offense or misdemeanor offense of which dishonesty or fraud is an element;
(B) a felony offense or misdemeanor offense which results in the suspension or revocation of the right to practice before any state or federal agency for a cause which in the opinion of the board warrants its action; and
(C) crimes involving moral turpitude, alcohol abuse or controlled substances.
(5) The following procedures shall apply in the processing of the application for certification.
(A) The candidate shall respond, under penalty of perjury, to the question, "Have you ever been convicted of a felony or a misdemeanor, placed on probation, or granted deferred adjudication in any state or by the federal government?"
(B) The board shall obtain criminal history record information as stipulated in this chapter on any candidate about whom the executive director finds evidence to warrant a record search.
(C) The board shall review the application, statements made by the candidate relating to criminal activity, criminal history record information, and shall approve or disapprove the application as the evidence warrants. All applications disapproved under these conditions shall be scheduled for a hearing upon written request of the applicant.
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 March 31, 2008.
TRD-200801674
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: May 11, 2008
For further information, please call: (512) 305-7848
Subchapter D. PROCEDURES AFTER HEARING
The Texas State Board of Public Accountancy (Board) proposes an amendment to §519.72, concerning Final Decisions and Orders.
The amendment to §519.72 will replace subsection (c)(1) - (8) with new subsection (c): The board may change a finding of fact or conclusion of law made by the administrative law judge, or may vacate or modify an order issued by the administrative judge, only if the board determines: (1) that the administrative law judge did not properly apply or interpret applicable law, agency rules, written policies provided to the administrative law judge with a written statement of applicable rules or policies, or prior administrative decisions; (2) that a prior administrative decision on which the administrative law judge relied is incorrect or should be changed; or (3) that a technical error in a finding of fact should be changed.
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 none.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
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 none.
The probable economic cost to persons required to comply with the amendment will be to facilitate implementation of §2001.058(c) of the Administrative Procedures Act before the Texas State Board of Public Accountancy.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
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 May 12, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe, Tower 3, Suite 900, Austin, Texas 78701 or faxed to his attention at (512) 305-7854.
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.
§519.72.Final Decisions and Orders.
(a) - (b) No change.)
(c) The board may change a finding of fact or conclusion of law made by the administrative law judge, or may vacate or modify an order issued by the administrative judge, only if the board determines:
(1) that the administrative law judge did not properly apply or interpret applicable law, agency rules, written policies provided to the administrative law judge with a written statement of applicable rules or policies, or prior administrative decisions;
(2) that a prior administrative decision on which the administrative law judge relied is incorrect or should be changed; or
(3) that a technical error in a finding of fact should be changed.
[(c) It is the policy of
the board to change a finding of fact or conclusion of law or to vacate
or modify any proposed order of an ALJ when the proposed order is:]
[(1) erroneous;]
[(2) against the weight of the evidence;]
[(3) based on unsound accounting principles or auditing standards;]
[(4) based on insufficient review of the evidence;]
[(5) not sufficient to protect the public interest;]
[(6) not sufficient to adequately allow rehabilitation of the licensee;]
[(7) an infringement on the board's discretion to determine the board's policies; or]
[(8) to correct a technical error.]
(d) - (g) (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 March 31, 2008.
TRD-200801672
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: May 11, 2008
For further information, please call: (512) 305-7848
Subchapter B. CONTINUING PROFESSIONAL EDUCATION RULES FOR INDIVIDUALS
The Texas State Board of Public Accountancy (Board) proposes an amendment to §523.112 concerning Mandatory CPE Attendance.
The amendment to §523.112 will replace the phrase (3)(B), (C), (D), and (F) in paragraph (5) with (3)(A), (B), (C), (D), (E) and (F).
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be zero because the amendment does not require the state to do anything.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
Mr. Treacy has determined that for the first five-year period the amendment is in effect the public benefits expected as a result of adoption of the proposed amendment will be that the amendment will provide greater clarity regarding the continuing professional education requirements necessary to re-activate a license.
The probable economic cost to persons required to comply with the amendment will vary according to the number of CPE courses the person decides to offer and take.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
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 May 12, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe, Tower 3, Suite 900, Austin, Texas 78701 or faxed to his attention at (512) 305-7854.
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.
§523.112.Mandatory CPE Attendance.
A licensee shall complete at least 120 hours of CPE in each three-year period, and a minimum of 20 hours in each one-year period. CPE, except as provided by board rule shall be offered by board contracted CPE sponsors. The exception to this requirement is an initial licensee, one who has been certified or registered for less than 12 months.
(1) The exception to the requirement of 120 hours of CPE is an initial licensee, one who is paying the license fee for the first time.
(A) To be issued a license that is less than twelve months from the date of certification or registration, the licensee does not have a CPE hour requirement. The first license period begins on the date of certification and ends with the last day of the licensee's birth month.
(B) To be issued a license for the first full twelve-month license period, the licensee does not have a CPE accrual requirement and can report zero hours. CPE earned prior to the first twelve month license period will not be applied toward the three year requirement.
(C) To be issued a license for the second full twelve-month period, the licensee must report a minimum of 20 CPE hours. The hours must be accrued in the 12 months preceding the license period.
(D) To be issued a license for the third full twelve-month license period, the licensee must report a total of at least 60 CPE hours that were accrued in the 24 months preceding the license period. At least 20 hours of the requirement must be accrued in the 12 months preceding the license period.
(E) To be issued a license for the fourth full twelve-month period, the licensee must report 100 CPE hours that were accrued in the 36 months preceding the license period. At least 20 hours of the requirement must be accrued in the 12 months preceding the license period.
(F) To be issued a license for the fifth and subsequent license periods, the licensee must report a total of at least 120 CPE hours that were accrued in the 36 months proceeding the license period, and at least 20 hours of the requirement must be accrued in the 12 months preceding the license period.
(2) A former licensee whose certificate or registration has been revoked for failure to pay the license fee and who makes application for reinstatement must pay the required fees and penalties and must accrue the minimum CPE credit hours missed.
(3) The board may consider granting an exemption from the CPE requirement on a case-by-case basis if:
(A) a licensee completes and forwards to the board a sworn affidavit indicating that the licensee will not be employed during the period for which the exemption is requested. A licensee who has been granted this exemption and who re-enters the work force shall be required to report prior to re-entering the workforce a minimum of 40 CPE hours. Such CPE hours shall be accrued from the technical area as described in §523.103 and §523.130 of this title (relating to Standards for CPE Program Development and Ethics Course Requirements for Licensees);
(B) a licensee completes and forwards to the board a sworn affidavit indicating no association with accounting work. The affidavit shall include, as a minimum, a brief description of the duties performed, job title, and verification by the licensee's immediate supervisor;
(i) For purposes of this section, the term "association with accounting work" shall include the following:
(I) 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
(II) 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 professional accounting services or professional accounting work, including such designation on a business card, letterhead, promotional brochure, advertisement, or office; or
(III) offering testimony in a court of law purporting to have expertise in accounting and reporting, auditing, tax, or management services; or
(IV) for purposes of making a determination as to whether the licensee fits one of the categories listed in this subclause and subclauses (I) - (III) of this clause, the questions shall be resolved in favor of including the work as an "association with accounting work."
(ii) A licensee who has been granted this exemption and who loses the exemption shall accrue 40 CPE hours prior to re-entering the workforce. Such CPE hours shall be earned in the technical area as described in §523.103 and §523.130 of this title (relating to Standards for CPE Program Development and Ethics Course Requirements for Licensees).
(C) a licensee not residing in Texas, who submits a sworn statement to the board that the licensee does not serve Texas clients from out of state;
(D) a licensee shows reasons of health, certified by a medical doctor, that prevent compliance with the CPE requirement. A licensee must petition the board for the exemption and provide documentation that clearly establishes the period of disability and the resulting physical limitations;
(E) a licensee is on extended active military duty during the period for which the exemption is requested, and files a copy of orders to active military duty with the board; or
(F) a licensee shows reason which prevents compliance that is acceptable to the board.
(4) A licensee who has been granted the retired or disabled status under §515.8 of this title (relating to Retirement Status or Permanent Disability) is not required to report any CPE hours.
(5) A licensee who has been granted exemptions under paragraph
(3)(A), (B), (C), (D), (E) and (F) [(3)(B), (C), (D), and (F)
] of this rule and no longer qualifies for
the exemption or has been granted retired or disabled status under §515.8
of this title and no longer qualifies for retired or disabled status
shall be required to report a minimum of 40 CPE hours prior to re-entry
into the workforce. Such CPE hours shall be earned in the technical
area as described in §523.103 and §523.130 of this title
(relating to Standards for CPE Program Development and Ethics Course
Requirements for Licensees).
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 March 31, 2008.
TRD-200801673
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: May 11, 2008
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy (Board) proposes an amendment to §523.143 concerning Sponsor's Record.
The amendment to §523.143 will require CPE sponsors to keep a copy of the complete course material as required by §523.140 rather than just an outline for the course.
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 negligible because the amendment does not impose additional costs to the state.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be negligible because the amendment does not reduce costs to the state.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the amendment will be negligible because the amendment does not affect revenue.
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 a more thorough record for CPE sponsors.
The probable economic cost to persons required to comply with the amendment will be negligible because the amendment does not impose additional costs on those required to comply.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose additional costs on small businesses.
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 May 12, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe, Tower 3, Suite 900, Austin, Texas 78701 or faxed to his attention at (512) 305-7854.
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.
§523.143. Sponsor's Record.
(a) In order to support the reports required of participants, the sponsor of group or self-study programs must retain for an appropriate period:
(1) record of participation;
(2) course materials as required by §523.140
of this title (relating to Program Standards); [outline
of the course (or equivalent);]
(3) date(s);
(4) location;
(5) instructor(s);
(6) number of credit hours; and
(7) evaluation of program as directed in §523.141(b) of this title (relating to Evaluation).
(b) To satisfy the detailed requirements of all jurisdictions, a retention period of three years from the date the program is completed is appropriate. The record of attendance should reflect the credit hours earned by each participant, including those who arrive late or leave early.
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 March 31, 2008.
TRD-200801671
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: May 11, 2008
For further information, please call: (512) 305-7848
Chapter 663. STANDARDS OF RESPONSIBILITY AND RULES OF CONDUCT
Subchapter A. ETHICAL STANDARDS
(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 Board of Professional Land Surveying or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Board of Professional Land Surveying (TBPLS) proposes the repeal of §663.11, concerning certification and monumentation of surveys. This rule is currently under Professional and Technical Standards, §663.17, which concerns monumentation.
The repeal of this rule is to remove wording that already exists in another rule.
Sandy Smith, Executive Director, has determined that for the first five year period the rule is in effect there will be no fiscal impact to state or local government as a result of enforcing or administering this amendment.
Ms. Smith has also determined that for each year of the first five years the rule is in effect the public will benefit from the rule because it will remove duplication of an existing rule.
There will be no effect on small or micro businesses that are in compliance with the Board's Act and Rules. There are no anticipated costs to those who are required to comply with the rule as proposed.
Comments on the repeal of the rule may be submitted in writing to Sandy Smith, Executive Director, Texas Board of Professional Land Surveying, 12100 Park 35 Circle, Building A, Suite 156, Austin, Texas 78753. Comments may also be faxed to Ms. Smith at the Board at (512) 239-5253 or may be sent electronically to ssmith@txls.state.tx.us. All requests for a public hearing on the proposed section submitted under the Administrative Procedure Act must be received by the Executive Director not more than 15 calendar days after notice of a proposed change in the section has been published in the Texas Register.
The repeal is proposed pursuant to §1071.151, Title 6, Occupations Code, Subtitle C, which authorizes the Board to adopt and enforce reasonable and necessary rules to perform its duties.
The repeal implements the Texas Administrative Code, Title 22, Part 29, General Rules of Procedures and Practices.
§663.11.Certification and Monumentation of Surveys.
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 March 27, 2008.
TRD-200801619
Sandy Smith
Executive Director
Texas Board of Professional Land Surveying
Earliest possible date of adoption: May 11, 2008
For further information, please call: (512) 239-5263
The Texas Board of Professional Land Surveying (TBPLS) proposes an amendment to §663.16, concerning Boundary Construction. This section identifies the requirements a registered professional land surveyor must follow in order to meet standards set up by the Board.
The amendment will further clarify what the surveyor should do when delineating a property or boundary line.
Sandy Smith, Executive Director, has determined that for the first five year period the rule is in effect there will be no fiscal impact to state or local government as a result of enforcing or administering this amendment.
Ms. Smith has also determined that for each year of the first five years the rule is in effect the public will benefit from the rule because it will clarify the steps a surveyor should following in delineating a property or boundary line.
There will be no effect on small or micro businesses that are in compliance with the Board's Act and Rules. There are no anticipated costs to those who are required to comply with the rule as proposed.
Comments on the proposed amendment may be submitted in writing to Sandy Smith, Executive Director, Texas Board of Professional Land Surveying, 12100 Park 35 Circle, Building A, Suite 156, Austin, Texas 78753. Comments may also be faxed to Ms. Smith at the Board at (512) 239-5253 or may be sent electronically to ssmith@txls.state.tx.us. All requests for a public hearing on the proposed section submitted under the Administrative Procedure Act must be received by the Executive Director not more than 15 calendar days after notice of a proposed change in the section has been published in the Texas Register.
The amendment is proposed pursuant to §1071.151, Title 6, Occupations Code, Subtitle C, which authorizes the Board to adopt and enforce reasonable and necessary rules to perform its duties.
The proposed amendment implements the Texas Administrative Code, Title 22, Part 29, General Rules of Procedures and Practices.
§663.16.Boundary Construction.
(a) When delineating a property or boundary line as
an integral portion of a survey, the surveyor shall respect junior/senior
property rights, footsteps of the original surveyor,
the record, the intent as evidenced by the record [
of the parties involved
], the proper application of the rules of dignity
or the priority of calls, and applicable statutory and case law of Texas.
(b) - (d) (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 March 27, 2008.
TRD-200801620
Sandy Smith
Executive Director
Texas Board of Professional Land Surveying
Earliest possible date of adoption: May 11, 2008
For further information, please call: (512) 239-5263
The Texas Board of Professional Land Surveying (TBPLS) proposes an amendment to §663.17, concerning monumentation. This section identifies the requirements a registered professional land surveyor must follow in regards to the setting of monuments.
The amendment will further clarify what the surveyor should do when setting monumentation.
Sandy Smith, Executive Director, has determined that for the first five year period the rule is in effect there will be no fiscal impact to state or local government as a result of enforcing or administering this amendment.
Ms. Smith has also determined that for each year of the first five years the rule is in effect the public will benefit from the rule because it will clarify the rule regarding the setting of monuments.
There will be no effect on small or micro businesses that are in compliance with the Board's Act and Rules. There are no anticipated costs to those who are required to comply with the rule as proposed.
Comments on the proposed amendment may be submitted in writing to Sandy Smith, Executive Director, Texas Board of Professional Land Surveying, 12100 Park 35 Circle, Building A, Suite 156, Austin, Texas 78753. Comments may also be faxed to Ms. Smith at the Board at (512) 239-5253 or may be sent electronically to ssmith@txls.state.tx.us. All requests for a public hearing on the proposed section submitted under the Administrative Procedure Act must be received by the Executive Director not more than 15 calendar days after notice of a proposed change in the section has been published in the Texas Register.
The amendment is proposed pursuant to §1071.151, Title 6, Occupations Code, Subtitle C, which authorizes the Board to adopt and enforce reasonable and necessary rules to perform its duties.
The proposed amendment implements the Texas Administrative Code, Title 22, Part 29, General Rules of Procedures and Practices.
§663.17.Monumentation.
(a) (No change.)
(b) When delineating a property or boundary line as an integral portion of a survey (survey being defined in the Act, §1071.002(6) or (8), the land surveyor shall set, or leave as found, sufficient, stable and reasonably permanent survey markers to represent or reference the property or boundary corners, angle points, and points of curvature or tangency.
(1) All survey markers shall be shown and described with sufficient evidence of the location of such markers on the surveyors' plat. If the land surveyor shall prepare a written description of the surveyed premise, he/she shall include in that written description:
(A) [(1)] reference to and a
description of the survey markers as shown on the plat; and
(B) [(2)] the seal and signature
of a registered or licensed surveyor.
(2) In addition, the surveyor may furnish an electronic copy of a written description provided that the text is verbatim to that on the certified document retained in the surveyor's file.
(c) - (d) (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 March 27, 2008.
TRD-200801621
Sandy Smith
Executive Director
Texas Board of Professional Land Surveying
Earliest possible date of adoption: May 11, 2008
For further information, please call: (512) 239-5263
The Texas Board of Professional Land Surveying (TBPLS) proposes an amendment to §663.19, concerning Plat/Description/Report. This section identifies what the registered land surveyor is required to include in surveying reports.
The amendment will further clarify the definition of what a report shall include.
Sandy Smith, Executive Director, has determined that for the first five year period the rule is in effect there will be no fiscal impact to state or local government as a result of enforcing or administering this amendment.
Ms. Smith has also determined that for each year of the first five years the rule is in effect the public will benefit from the rule because it will clarify the definition of a report.
There will be no effect on small or micro businesses that are in compliance with the Board's Act and Rules. There are no anticipated costs to those who are required to comply with the rule as proposed.
Comments on the proposed amendment may be submitted in writing to Sandy Smith, Executive Director, Texas Board of Professional Land Surveying, 12100 Park 35 Circle, Building A, Suite 156, Austin, Texas 78753. Comments may also be faxed to Ms. Smith at the Board at (512) 239-5253 or may be sent electronically to ssmith@txls.state.tx.us. All requests for a public hearing on the proposed section submitted under the Administrative Procedure Act must be received by the Executive Director not more than 15 calendar days after notice of a proposed change in the section has been published in the Texas Register.
The amendment is proposed pursuant to §1071.151, Title 6, Occupations Code, Subtitle C, which authorizes the Board to adopt and enforce reasonable and necessary rules to perform its duties.
The proposed amendment implements the Texas Administrative Code, Title 22, Part 29, General Rules of Procedures and Practices.
§663.19.Plat/Description/Report.
For the purposes of these rules the word "report" shall mean
any or all of the following survey plat, descriptions, or
written [separate] narratives.
(1) - (10) (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 March 27, 2008.
TRD-200801618
Sandy Smith
Executive Director
Texas Board of Professional Land Surveying
Earliest possible date of adoption: May 11, 2008
For further information, please call: (512) 239-5263