TITLE 22. EXAMINING BOARDS

PART 5. STATE BOARD OF DENTAL EXAMINERS

CHAPTER 115. EXTENSION OF DUTIES OF AUXILIARY PERSONNEL--DENTAL HYGIENE

22 TAC §115.6

The Texas State Board of Dental Examiners (Board) proposes new §115.6. The new section establishes a reference to the recordkeeping standard of care relating to dental hygiene practice.

Ms. Sherri Sanders Meek, Executive Director, Texas State Board of Dental Examiners has determined that for each year of the first five-year period this section is in effect, there will be no fiscal implications for local or state government as a result of enforcing or administering this section.

Ms. Meek has also determined that for each year of the first five year period the section is in effect, the public benefit anticipated as a result of enforcing or administering this section will be to ensure that a patient record of dental hygiene treatments will be appropriately made, maintained and kept.

There is no anticipated impact on large, small or micro-businesses.

There is no anticipated economic cost to persons as a result of enforcing or administering this section.

Comments on the proposal may be submitted to Sherri Sanders Meek, Executive Director, Texas State Board of Dental Examiners, 333 Guadalupe, Tower 3, Suite 800, Austin, Texas 78701, (512) 463-6400. To be considered, all written comments must be received by the Texas State Board of Dental Examiners no later than 30 days from the date that this new section is published in the Texas Register.

The new section is proposed under Texas Government Code §§2001.021 et seq., and the Texas Occupations Code §254.001, which provides the Board with the authority to adopt and enforce rules necessary for it to perform its duties.

The proposed new section affects Title 3, Subtitle D of the Occupations Code and Title 22, Texas Administrative Code, Chapters 101 - 125.

§115.6.Records.

A Texas dental hygiene licensee practicing dental hygiene in Texas shall make, maintain, and keep adequate records of the treatments delegated by a Texas licensed dentist and performed for and upon each dental patient for reference, identification, and protection of the patient and the dentist.

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 21, 2008.

TRD-200803726

Sherri Sanders Meek

Executive Director

State Board of Dental Examiners

Earliest possible date of adoption: September 7, 2008

For further information, please call: (512) 475-0972


CHAPTER 116. DENTAL LABORATORIES

22 TAC §116.3

The Texas State Board of Dental Examiners (Board) proposes an amendment to §116.3(b), concerning the registration and renewal requirements of Texas dental laboratories. The amendment is proposed to require a jurisprudence assessment be completed to ensure that dental laboratory owners understand Texas statutes and regulations regarding dental laboratories.

Sherri Sanders Meek, Executive Director of the Texas State Board of Dental Examiners, has determined that for each year of the first five-year period the section is in effect, there will be no fiscal implications for local or state government as a result of enforcing or administering the section.

Ms. Meek has also determined that for each year of the first five year period the section is in effect, the administration and enforcement of the proposed section is expected to benefit the public by ensuring that dental laboratories are operated with knowledge of relevant Texas laws and regulations.

There is no impact on large, small or micro-businesses.

There is no anticipated economic cost to persons as a result of enforcing or administering the section.

Comments on the proposal may be submitted to Sherri Sanders Meek, Executive Director, Texas State Board of Dental Examiners, 333 Guadalupe, Tower 3, Suite 800, Austin, Texas 78701, or by fax at (512) 463-7452. To be considered, all written comments must be received by the Texas State Board of Dental Examiners no later than 30 days from the date that this amended section is published in the Texas Register.

The amendment is proposed under Texas Government Code §§2001.021 et seq., and Texas Occupations Code §254.001, which provides the Board with the authority to adopt and enforce rules necessary for it to perform its duties.

The proposed amendment affects Title 3, Subtitle D of the Occupations Code and Title 22, Texas Administrative Code, Chapters 101 - 125.

§116.3.Registration and Renewal.

(a) (No change.)

(b) The Dental Laboratory Certification Council (DLCC) shall review each application for registration or renewal of registration to determine if the applicant meets the requirements of Occupations Code, Chapter 266. The DLCC shall provide the Board with a list of applicants who are eligible for registration with the Board. Applications will be forwarded with a recommendation to the Board for registration if the requirements of Occupations Code, Chapter 266 and this chapter are met, and the following materials are submitted:

(1) A complete application or renewal, with all required information;

(2) proof of compliance with §116.6 of this chapter; [and,]

(3) the appropriate fee; and,[.]

(4) effective January 1, 2009, for initial registrations only and once every three years for registration renewals, proof of completion of the Texas Jurisprudence Assessment for dental laboratories.

(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 July 21, 2008.

TRD-200803727

Sherri Sanders Meek

Executive Director

State Board of Dental Examiners

Earliest possible date of adoption: September 7, 2008

For further information, please call: (512) 475-0972


22 TAC §116.6

The Texas State Board of Dental Examiners (Board) proposes an amendment to §116.6(c), concerning continuing education requirements of Texas dental laboratories. The amendment is proposed to update the continuing education requirements that certain dental laboratory employees must take in order to be in compliance with recognized standards.

Sherri Sanders Meek, Executive Director of the Texas State Board of Dental Examiners, has determined that for each year of the first five-year period the section is in effect, there will be no fiscal implications for local or state government as a result of enforcing or administering the section.

Ms. Meek has also determined that for each year of the first five year period the section is in effect, the administration and enforcement of the proposed section is expected to benefit the public by ensuring that certain dental laboratory employees maintain appropriate continuing education requirements.

There is no impact on large, small or micro-businesses.

There is no anticipated economic cost to persons as a result of enforcing or administering the section.

Comments on the proposal may be submitted to Sherri Sanders Meek, Executive Director, Texas State Board of Dental Examiners, 333 Guadalupe, Tower 3, Suite 800, Austin, Texas 78701, or by fax at (512) 463-7452. To be considered, all written comments must be received by the Texas State Board of Dental Examiners no later than 30 days from the date that this amended section is published in the Texas Register.

The amendment is proposed under Texas Government Code §§2001.021 et seq., and Texas Occupations Code §254.001, which provides the Board with the authority to adopt and enforce rules necessary for it to perform its duties.

The proposed amendment affects Title 3, Subtitle D of the Occupations Code and Title 22, Texas Administrative Code, Chapters 101 - 125.

§116.6.Continuing Education.

(a) - (b) (No change.)

(c) Acceptable continuing education shall be comprised of business management, infection control, and technical competency courses presented in seminars or clinics as accepted by a recognized organization of dentistry or dental technology, subject to the following requirements:

(1) The designated employee must complete at least one course in regulatory compliance [infection control] annually. Examples include courses in Infection Control, Occupational Safety and Health Administration (OSHA), Federal Drug Administration (FDA), Texas Jurisprudence, Cardiopulmonary Resuscitation (CPR) or Ethics.

(2) - (3) (No change.)

(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 July 21, 2008.

TRD-200803728

Sherri Sanders Meek

Executive Director

State Board of Dental Examiners

Earliest possible date of adoption: September 7, 2008

For further information, please call: (512) 475-0972


22 TAC §116.10

The Texas State Board of Dental Examiners (Board) proposes an amendment to §116.10, concerning prosthetic identification. The amendment is proposed to require dental laboratories to clearly label or certify in writing to the prescribing dentist the place of manufacture of a dental prosthetic.

Sherri Sanders Meek, Executive Director of the Texas State Board of Dental Examiners, has determined that for each year of the first five-year period the section is in effect, there will be no fiscal implications for local or state government as a result of enforcing or administering the section.

Ms. Meek has also determined that for each year of the first five year period the section is in effect, the administration and enforcement of the proposed section is expected to benefit the public by ensuring that dentists are informed as to the place of manufacture of dental prosthetics.

There is no impact on large, small or micro-businesses.

There is no anticipated economic cost to persons as a result of enforcing or administering the section.

Comments on the proposal may be submitted to Sherri Sanders Meek, Executive Director, Texas State Board of Dental Examiners, 333 Guadalupe, Tower 3, Suite 800, Austin, Texas 78701, or by fax at (512) 463-7452. To be considered, all written comments must be received by the Texas State Board of Dental Examiners no later than 30 days from the date that this amended section is published in the Texas Register.

The amendment is proposed under Texas Government Code §§2001.021 et seq., and Texas Occupations Code §254.001, which provides the Board with the authority to adopt and enforce rules necessary for it to perform its duties.

The proposed amendment affects Title 3, Subtitle D of the Occupations Code and Title 22, Texas Administrative Code, Chapters 101 - 125.

§116.10.Prosthetic Identification.

(a) - (e) (No change.)

(f) A dental laboratory that is required to register with the State Board of Dental Examiners shall clearly label or certify in writing to the prescribing dentist that the prosthesis or appliance being delivered to the prescribing dentist was either:

(1) manufactured entirely by the SBDE registered dental laboratory;

(2) manufactured in part or whole by a domestic laboratory inside of the United States; or,

(3) manufactured in part or whole by a foreign laboratory outside of the United States.

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 21, 2008.

TRD-200803729

Sherri Sanders Meek

Executive Director

State Board of Dental Examiners

Earliest possible date of adoption: September 7, 2008

For further information, please call: (512) 475-0972


PART 11. TEXAS BOARD OF NURSING

CHAPTER 211. GENERAL PROVISIONS

22 TAC §211.7

The Texas Board of Nursing (Board) proposes an amendment to §211.7, concerning Executive Director. The proposed amendment outlines the Board's current policies that delegate authority to the Executive Director.

The Board by policy has authorized the Executive Director to offer proposed disciplinary orders upon evaluation of the investigation findings. The Executive Director may make these offers by mail at the conclusion of an investigation; or in person following an informal conference. Similarly, the Executive Director is authorized by Board policy to accept the voluntary surrender of a license and Board ratification is not required. The Executive Director is authorized to accept and enter the several types of agreed orders on behalf of the Board and ratification by the Board is not necessary.

The amendment includes delegated authority to enter board orders for remedial education and fine for violations including practice on a delinquent license; aiding, abetting or permitting a nurse to practice on a delinquent license; failure to comply with CE requirements; failure to comply with mandatory reporting requirements; failure to assure licensure/credentials of personnel for whom the nurse is administratively responsible; failure to provide employers, potential employers or the Board with complete and accurate answers to specific questions regarding employment or background (e.g., presenting incomplete employment history); failure to report unauthorized practice; failure to comply with Board requirements for change of name/address; failure to develop, maintain and implement a peer review plan according to statutory peer review requirements; failure to file, or cause to be filed, complete, accurate and timely reports required by Board Order; and failure to make complete and timely compliance with the terms of any stipulation contained in a Board Order. Additionally, the Executive Director may enter Orders requiring a licensee to comply with a peer assistance program and may also grant certain motion for rehearings on default orders. The Executive Director is to report summaries of dispositions to the Board at its regular meetings.

Katherine Thomas, Executive Director, has determined that for the first five-year period the proposed amendment is in effect there will be no additional fiscal implications for state or local government as a result of enforcing the amendment as proposed.

Ms. Thomas has also determined that for each year of the first five years the proposed amendment is in effect, the public benefit will be disciplinary cases will be resolved in a more timely basis without the delays often associated with docketing routine matters before board meetings. There will not be any foreseeable effect on small or micro businesses. There are no anticipated costs to affected individuals as a result of the implementation of the proposed amendment.

Written comments on the proposal may be submitted to Dusty Johnston, General Counsel, Texas Board of Nursing, 333 Guadalupe, Suite 3-460, Austin, Texas 78701, or by e-mail to dusty.johnston@bon.state.tx.us, or by fax to Dusty Johnston at (512) 305-8101.

The amendment is proposed pursuant to the authority of Texas Occupations Code §301.151 which authorizes the Texas Board of Nursing to adopt, enforce, and repeal rules consistent with its legislative authority under the Nursing Practice Act.

The amendment seeks to outline those duties the board wishes performed by the executive director as authorized by Texas Occupations Code §301.101(b). No other statutes, articles or codes are affected by this proposal.

§211.7.Executive Director.

(a) The board shall determine qualifications for and retain an executive director who shall be the chief executive officer of the agency.

(b) The executive director shall have the authority and responsibility for the operations and administration of the agency and such additional powers and duties as prescribed by the board. As chief executive of the board the executive director shall manage all aspects of the agency, including personnel, financial and other resources, in support of the NPA, rules and policies, the board's mission and strategic plan. The executive director shall attend all meetings of the board and may offer recommendations to the board, but shall not vote on matters brought before the board.

(c) The executive director shall have the authority to dismiss a complaint if an investigation demonstrates that a violation did not occur, or the subject of the complaint is outside the board's jurisdiction. At each public meeting of the board, the executive director shall report to the board each complaint dismissed since the board's last public meeting.

(d) The Executive Director, or the Executive Director's designee, is authorized to offer proposed disciplinary orders upon evaluation of the investigation findings. Such an offer may be made:

(1) by mail at the conclusion of an investigation; or

(2) in person following an informal conference.

(e) The Executive Director is authorized to accept the voluntary surrender of a license. Board ratification is not required. The Executive Director will report summaries of dispositions to the Board at its regular meetings.

(f) The Executive Director is authorized to accept the following orders on behalf of the Board and ratification by the Board is not necessary. The Executive Director will report summaries of dispositions to the Board at its regular meetings.

(1) Orders consisting of a fine and/or education stipulations. The following violations may be appropriate for disposition by fine with or without educational stipulations:

(A) practice on a delinquent license for more than six months but less than two years;

(B) practice on a delinquent license for two to four years;

(C) practice on a delinquent license over four years;

(D) aiding, abetting or permitting a nurse to practice on a delinquent license;

(E) failure to comply with CE requirements;

(F) failure to comply with mandatory reporting requirements;

(G) failure to assure licensure/credentials of personnel for whom the nurse is administratively responsible;

(H) failure to provide employers, potential employers or the Board with complete and accurate answers to specific questions regarding employment or background (e.g., presenting incomplete employment history);

(I) failure to report unauthorized practice;

(J) failure to comply with Board requirements for change of name/address;

(K) failure to develop, maintain and implement a peer review plan according to statutory peer review requirements;

(L) failure to file, or cause to be filed, complete, accurate and timely reports required by Board Order; and

(M) failure to make complete and timely compliance with the terms of any stipulation contained in a Board Order.

(2) Orders requiring a licensee to comply with a peer assistance program.

(g) The Executive Director may grant any motion for rehearing if he/she is of the opinion that the motion has merit based on the criteria of §213.16(j) of this title (relating to Respondent's Answer in a Disciplinary Matter). Otherwise, any motion considered untimely or without merit under the criteria of §213.16(j) of this title, would be scheduled without prejudice before the next practicable full Board or Eligibility and Disciplinary meeting for review and determination.

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 28, 2008.

TRD-200803909

James W. Johnston

General Counsel

Texas Board of Nursing

Earliest possible date of adoption: September 7, 2008

For further information, please call: (512) 305-6811


CHAPTER 214. VOCATIONAL NURSING EDUCATION

22 TAC §§214.1 - 214.13

The Texas Board of Nursing (Board) proposes amendments to §§214.1 - 214.13, concerning Vocational Nursing Education.

Elsewhere in this issue of the Texas Register , the Board is contemporaneously proposing amendments to §§215.1 - 215.13, concerning Professional Nursing Education.

At the July 2006 Board meeting, the Board issued a charge to the Advisory Committee on Education (ACE) to review rule language regarding clarity and consistency between Chapters 214 and Rule 215. ACE addressed this charge during the June 13, 2008 meeting in Austin and continued the process during the June 24, 2008 telephonic conference. The proposed amendments to Chapters 214 are as follows:

Section 214.1, General Requirements - addition of language provides clarity for the intent of the rule and matches wording in the statute;

Section 214.2, Definitions - addition, deletion, reorganization, rephrasing, and revision of language provide clarity for the intent of the rule, demonstrate consistency between the rules, and describe the processes that actually occur;

Section 214.3, Program Development, Expansion and Closure - addition, clarification, deletion and revision of language provide clarity for the intent of the rules, demonstrate consistency between the rules, and describe the processes that actually occur and are outlined in Board guidelines;

Section 214.4, Approval - addition, clarification, deletion, reorganization and revision of language provide clarity for the intent of the rules, demonstrate consistency between the rules, and describe the processes that actually occur;

Section 214.5, Philosophy/Mission and Objectives/Outcomes - addition and revision of language provide clarity for the intent of the rule, demonstrate consistency between the rules, and match wording in the statute;

Section 214.6, Administration and Organization - addition, reorganization, and revision of language provide clarity for the intent of the rule, consistency between the rules, and describe the processes that actually occur;

Section 214.7, Faculty - addition, deletion, revision, rephrasing, and reorganization of language provide clarity for the intent of the rule, demonstrate consistency between the rules, and describe the processes that actually occur;

Section 214.8, Students - addition, deletion, reorganization, rephrasing, and revision of language provide clarity for the intent of the rule, demonstrate consistency between the rules, and describe the processes that actually occur;

Section 214.9, Program of Study - addition, deletion, reorganization, rephrasing, and revision of language provide clarity for the intent of the rule, demonstrate consistency between the rules, and describe the processes that actually occur;

Section 214.10, Clinical Learning Experiences - addition, deletion, reorganization, rephrasing, and revision of language provide clarity for the intent of the rule, demonstrate consistency between the rules, and describe the processes that actually occur;

Section 214.11, Facilities, Resources and Services - addition, deletion, reorganization, rephrasing, and revision of language provide clarity for the intent of the rule, demonstrate consistency between the rules, and describe the processes that actually occur;

Section 214.12, Records and Reports - addition, deletion, reorganization, rephrasing, and revision of language provide clarity for the intent of the rule, demonstrate consistency between the rules, and describe the processes that actually occur; and

Section 214.13, Total Program Evaluation - addition, deletion, reorganization, rephrasing, and revision of language provide clarity for the intent of the rule, demonstrate consistency between the rules, and describe the processes that actually occur.

Additional non-substantive changes were made throughout Chapters 214 for the purposes of correcting spelling/grammatical errors and providing correct numbering of items.

Katherine Thomas, Executive Director, has determined that for the first five-year period the proposed amendments are in effect there will be no additional fiscal implications for state or local government as a result of enforcing the amendment as proposed.

Ms. Thomas has also determined that for each year of the first five years the proposed amendments are in effect, the public benefit will be to provide clarity for the intent of the rules, demonstrate consistency between the rules, and describe the processes that actually occur and are outlined in Board guidelines with regard to program evaluations and approval. Additionally, the rule amendments seek to comply with the Sunset Commissions recommendations outlined in Acts 2007 (H.B. 2426), 80th Leg., eff. Sept. 1, 2007 and statutory amendments to §301.157, Texas Occupations Code. There will not be any foreseeable effect on small or micro businesses. There are no anticipated costs to affected individuals as a result of the implementation of the proposed amendments.

Written comments on the proposal may be submitted to Dusty Johnston, General Counsel, Texas Board of Nursing, 333 Guadalupe, Suite 3-460, Austin, Texas 78701, or by e-mail to dusty.johnston@bon.state.tx.us, or by fax to Dusty Johnston at (512) 305-8101.

The amendments are proposed pursuant to the authority of Texas Occupations Code §301.157 and §301.151 which authorizes the Texas Board of Nursing to adopt, enforce, and repeal rules consistent with its legislative authority under the Nursing Practice Act.

No other statutes, articles or codes are affected by this proposal.

§214.1.General Requirements.

(a) The director/coordinator [Director or Coordinator ] and faculty are accountable for complying with the Board's rules and regulations and the Nursing Practice Act.

(b) Rules for vocational nursing educational [education ] programs shall provide reasonable and uniform standards based upon sound educational principles that allow the opportunity for flexibility, creativity and innovation [and creativity].

§214.2.Definitions.

Words and terms, when used in this chapter, shall have the following meanings unless the context clearly indicates otherwise:

(1) Accredited nursing educational program--a vocational nursing educational program having voluntary accreditation by a Board-approved national nursing accrediting body.

[(1) Affidavit of Graduation--an official Board form containing an approved nursing educational program's curriculum components and hours, a statement attesting to an applicant's qualifications for vocational nurse licensure in Texas, the official school seal and the signature of the nursing program director/coordinator.]

(2) Affidavit of Graduation--an official Board form containing an approved nursing educational program's curriculum components and hours, a statement attesting to an applicant's qualifications for vocational nurse licensure in Texas and the signature of the nursing program director/coordinator [Affiliating Agency or Clinical Facility--a health care facility or agency which provides learning experiences for students].

(3) Affiliating agency or clinical facility--a health care facility or agency which provides learning experiences for students.

(4) Alternative practice settings--settings which provide opportunities for clinical learning experiences although their primary function is not the delivery of health care.

(5) [(3)] Approved vocational nursing educational program--a vocational nursing educational program approved by the Texas Board of Nursing.

[(4) Assistant Program Coordinator--a registered nurse faculty member in the vocational nursing educational program who is designated to assist with program management when the director or coordinator assumes responsibilities other than the program. ]

(6) Articulation--a planned process between two or more educational systems to assist students to make a smooth transition from one level of education to another without duplication in learning.

(7) [(5)] Board--the Texas Board of Nursing composed of members appointed by the Governor for the State of Texas.

(8) Career school or college--see (35) Proprietary school--educational entity defined in Title 3, Texas Education Code, §132.0015 as "career school or college."

(9) [(6)] Class hours [Hours ]--those hours allocated to didactic instruction and testing in each subject.

[(7) Clinical Conferences--scheduled presentations and discussions of aspects of client care experiences.]

(10) [(8)] Clinical learning experiences [Learning Experiences]--faculty-planned and guided learning activities designed to assist students to meet stated program and course outcomes and to safely apply knowledge and skills when providing nursing care to clients across the life span as appropriate to the role expectations of the graduates. These experiences occur in actual patient care clinical learning situations, nursing skills and computer laboratories, in simulated clinical settings, in a variety of affiliating agencies or clinical practice settings including, but not limited to: acute care facilities, extended care facilities, clients' residences, and community agencies; and in associated clinical conferences.

(11) [(9)] Clinical practice hours [ Practice Hours]--hours spent in actual client care assignments, simulated laboratory experiences, observations, clinical conferences and clinical instruction.

(12) [(10)] Clinical preceptor [ Preceptor]--a licensed nurse who meets the minimum requirements in §214.10(i)(6) [§214.10 (l)(5)] of this chapter (relating to [Management of ] Clinical Learning Experiences [and Resources]), not employed [paid ] as a faculty member by the controlling agency/governing institution, and who directly supervises clinical learning experiences for no more than two students. A clinical preceptor facilitates student learning in a manner prescribed by a signed written agreement between the educational institution, preceptor, and affiliating agency (as applicable)

(13) [(11)] Compliance Audit--a document required by the Board to be submitted at a specified time by the nursing educational program director/ [or] coordinator that serves as verification of the program's adherence to this chapter.

(14) [(12)] Conceptual framework [ Framework]--theories or concepts giving structure to the curriculum and enabling faculty to make consistent decisions about [all aspects of ] curriculum development, implementation, and evaluation.

[(13) Concurrent Theory and Skills Laboratory Experiences--planned experiences which coincide or operate at the same time to provide a common effect.]

(15) [(14)] Controlling agency [ Agency]--institution that has direct authority and administrative responsibility for the operation of a board approved nursing educational program

(16) [(15)] Correlated theory and clinical practice [Theory and Clinical Practice ]--didactic and clinical experiences which have a reciprocal relationship or mutually complement each other.

(17) [(16)] Course--organized subject content and related activities, which may include didactic, laboratory and/or clinical experiences, planned to achieve specific objectives within a given time period.

(18) [(17)] Curriculum--course offerings which, in aggregate, make up the total learning activities in a program of study.

(19) [(18)] Differentiated Entry Level Competencies (DELC)--the expected educational outcomes to be demonstrated by nursing students at the time of graduation as published in Differentiated Entry Level Competencies of Graduates of Texas Nursing Programs, Vocational (VN), Diploma/Associate Degree (Dip/ADN), Baccalaureate (BSN), September 2002 (DELC).

(20) [(19)] Director/coordinator--a registered nurse who is accountable for administering a pre-licensure nursing educational program, who meets the requirements as stated in §214.6(f) of this chapter (relating to Administration and Organization), and is approved by the Board [ or Coordinator--denotes the nurse directly in charge chosen by the controlling agency, approved by the Board, and who is administratively responsible for the nursing educational program].

(21) [(20)] Examination year [Year ]--the period beginning January 1 and ending December 31 used for the purposes of determining programs' NCLEX-PN® [ NCLEX-PN™] examination pass rates.

(22) Extension program /campus--instruction provided by an approved vocational nursing educational program through a variety of instructional methods to any location(s) other than the program's main campus and where students are required to attend activities such as testing, group conferences, and/or campus laboratory. An extension program may offer the entire identical curriculum or may offer a single course or multiple courses.

(23) [(21)] Faculty member--an individual employed to teach in the vocational nursing educational program who meets the requirements as stated in §214.7 of this chapter (relating to Faculty [ Qualifications and Faculty Organization]).

(24) [(22)] Faculty waiver--a waiver granted by a director or coordinator of a vocational nursing educational program and submitted to the Board on a notarized notification form, or by the Board, as specified in §214.7(d)(1) [ (c)(2)(C)] of this chapter, to an individual who is currently licensed as an LVN or RN, or has a privilege to practice[, as appropriate,] in Texas and who is approved to be employed as a faculty member which is valid for up to one year.

(25) Governing institution--the entity with administrative and operational authority over a Board-approved vocational nursing educational program.

(26) Health care professional--an individual other than a licensed nurse who holds at least a bachelor's degree in the health care field, including, but not limited to: respiratory therapists, physical therapists, occupational therapists, dieticians, pharmacists, physicians, social workers and psychologists.

[(23) Lead Instructor--a licensed nurse approved by the Board who has the delegated administrative authority for the program.]

(27) MEEP--a Multiple Entry-Exit Program which allows students to challenge the NCLEX-PN® examination when they have completed sufficient course work in a professional nursing educational program that will meet all requirements as outlined in Chapter 213 of this title (relating to Practice and Procedure).

(28) [(24)] Mobility--the ability to advance without educational barriers.

(29) [(25)] Non-nursing faculty [ Non-Nursing Faculty]--instructors who teach non-nursing content [theory courses] such as pharmacology, pathophysiology, anatomy and physiology, growth and development, and nutrition, [pharmacology, nutrition, and anatomy and physiology ] and who have educational preparation appropriate to the assigned teaching responsibilities.

(30) [(26)] Objectives/Outcomes--clear statements of expected behaviors that are attainable and measurable.

(A) Program Objectives/Outcomes--broad statements used to direct overall student learning to meet [toward the] achievement of expectations upon graduation [ expected program outcomes].

(B) Clinical Objectives/Outcomes--statements describing expected student behaviors throughout the curriculum and which represent progression of students' cognitive, affective and psychomotor achievement in clinical practice across the curriculum.

(C) Course Objectives/Outcomes--statements describing expected behavioral changes in the learner upon successful completion of specific curriculum content and which serve as the mechanism for evaluation of student progression.

(31) [(27)] Observational experience--an assignment to a facility or unit where students observe activities within the facility and/or the role of nursing within the facility, but where students do not participate in patient/client care.

(32) [(28)] Pass rate--the percentage of first-time candidates within one examination year who pass the National Council Licensure Examination for Vocational Nurses (NCLEX-PN®) [(NCLEX-PN™)].

(33) [(29)] Philosophy/Mission--statement of concepts expressing fundamental values and beliefs regarding human nature as they apply to nursing education and practice and upon which the curriculum is based.

(34) [(30)] Program of Study--the courses and learning experiences that constitute the requirements for completion of a vocational nursing educational program.

(35) [(31)] Proprietary school [ Schools]--educational entity [entities ] defined in Title 3, Texas Education Code, §132.0015 as "career school or college." [by Texas Workforce Commission as "career schools and colleges."]

(36) [(32)] Recommendation--a specific suggestion based upon program assessment indirectly related to the rules to which the program must respond but in a method of their choosing.

(37) [(33)] Requirement--mandatory criterion based on program assessment directly related to the rule that must be addressed in the manner prescribed.

(38) [(34)] Shall--denotes mandatory requirements.

(39) [(35)] Staff--employees [ Employees] of the Texas Board of Nursing.

(40) [(36)] Supervision--immediate availability of a faculty member or clinical preceptor to coordinate, direct, and observe first hand the practice of students.

(41) [(37)] Survey visit [Visit ]--an on-site visit to a vocational nursing educational program by a Board representative. The purpose of the visit is to evaluate the program of learning by gathering data to determine whether the program is meeting the Board's requirements as specified in §§214.2 - 214.13 of this chapter.

(42) [(38)] Systematic approach [ Approach]--the organized process in nursing that [ which] provides individualized, goal-directed nursing care that [which] includes the vocational nurse's role in participating in data collection, assessment activities, planning and implementing client care, and evaluating the client's responses to nursing interventions and identification of client needs.

(43) [(39)] Texas Higher Education Coordinating Board (THECB)--a state agency created by the Legislature to provide coordination for the Texas higher education system, institutions, and governing boards, through the efficient and effective utilization and concentration of all available resources and the elimination of costly duplication in program offerings, faculties, and physical plants (Texas Education Code, Title 3, Subtitle B, Chapter 61).

(44) [(40)] Texas Workforce Commission (TWC)--the state agency charged with overseeing and providing workforce development services to employers and job seekers of Texas (Texas Labor Code, Title 4, Subtitle B, Chapter 301).

(45) [(41)] Vocational Nursing Educational Program-- an educational [a] unit [or entity ] within the structure of a school, including a college, university, or proprietary school (career school or college); and a program conducted by a hospital that [an educational setting which] provides a program of study preparing graduates who are competent to practice safely and who are eligible to take the NCLEX-PN® [NCLEX-PN™] examination. [Types of programs:]

[(A) Extension program--a site other than the program's main location where the program of study is provided, duplicating the current curriculum and teaching resources.]

[(B) MEEP--Multiple Entry Exit Program that offers mobility options for students.]

[(C) New program--a newly created program of study in which the curriculum, teaching resources, or program hours required to complete the program differs from that of the main location.]

§214.3.Program Development, Expansion and Closure.

(a) New programs.

(1) New nursing educational programs must be approved by the Texas Board of Nursing in order to operate in the State of Texas. The Texas Board of Nursing has established guidelines for the initial approval of schools of nursing or educational programs.

(2) [(1)] Proposal to establish a new vocational nursing educational program.

(A) An educational unit in nursing within the structure of a school, including a college, university, or proprietary school (career school or college), or a hospital is eligible to submit a proposal to establish a vocational nursing educational program. Specialized institutions such as nursing homes, tuberculosis hospitals, and others do not qualify as controlling agencies, but may participate with a program as an affiliating health care facility.

(B) The new vocational nursing educational program must be approved/licensed or deemed exempt by the appropriate Texas agency, Texas Workforce Commission (TWC), Texas Higher Education Coordinating Board (THECB), [i.e., THECB, TWC,] before approval can be granted by the Texas Board of Nursing for the program to be implemented. The proposal to establish a new vocational nursing educational program may be submitted to the Board at the same time that an application is submitted to THECB or TWC, but the proposal cannot be approved by the Board until such time as the proposed program is approved by THECB or TWC.

(C) The process to establish a new vocational nursing educational program shall be initiated with the Board office one year prior to the anticipated start of the program.

(D) The individual actually writing the proposal for a new nursing educational program does not have to be a registered nurse or hold a Texas license or a privilege to practice nursing in Texas. [ The proposal shall be completed under the direction/consultation of a registered nurse who meets the Board-approved qualifications for a program director according to §214.6 of this chapter.]

(i) The name and credentials of the author of the proposal must be included in the document.

(ii) At some point, and at least prior to the presentation of the proposal to the Board, an individual must be identified as the prospective director and this individual must meet the rule requirements in §214.6 of this chapter (relating to Administration and Organization) to be a program director.

(iii) The prospective program director must review/revise the proposal and agree with the components of the proposal as being representative of the proposed program that the individual will be responsible for administratively.

(E) Prior to presentation of the proposal to the Board for approval, a minimum of a prospective director and at least one prospective nursing faculty member must be identified and these individuals must review/revise and approve the curriculum that is included with the proposal. [Sufficient nursing faculty, with appropriate expertise, shall be in place for development of the curriculum component of the program.]

(F) The proposal shall include information outlined in Board guidelines.

(G) After the proposal is submitted and reviewed, a preliminary survey visit shall be conducted by Board staff prior to presentation to the Board.

(H) The proposal shall be considered by the Board following a public hearing at a regularly scheduled meeting of the Board. The Board may approve the proposal and grant initial approval to the new program, may defer action on the proposal, or may deny further consideration of the proposal.

(I) The program shall not admit students until the Board approves the proposal and grants initial approval.

(J) Prior to presentation of the proposal to the Board, evidence of approval from the appropriate regulatory/funding agencies shall be provided.

(K) When [After] the proposal is submitted [approved], an initial approval fee shall be assessed per §223.1 of this chapter (related to Fees).

(L) A proposal without action for one calendar year shall be inactivated.

(M) If the Board denies further consideration of a proposal, the educational unit in nursing within the structure of a school, including a college, university, or proprietary school (career school or college), or a hospital must wait a minimum of twelve calendar months from the date of the denial before submitting a new proposal to establish a vocational nursing educational program.

(3) [(2)] Survey visits shall be conducted, as necessary, by staff until full approval status is granted.

(b) Extension Program/Campus.

(1) Only vocational nursing educational programs which have full approval status are eligible to initiate or modify an extension program/campus.

(2) Instruction provided for the extension program/campus may include a variety of instructional methods, shall be congruent with the program's curriculum plan, and shall enable students to meet the goals, objectives, and competencies of the educational program and requirements of the Board as stated in §§214.2 - 214.13 of this chapter (relating to Vocational Nursing Education).

(3) [(2)] An approved vocational nursing educational program desiring to establish [ begin] an extension program/campus that [ which] duplicates the main program's/campus' current curriculum and teaching resources shall:

(A) Notify the Board office at least four (4) months prior to implementation of the extension program;

(B) Submit required information according to Board guidelines; and

(C) Provide documentation to the Board of notification or approval from the controlling agency/governing institution , THECB, TWC and /or other regulatory/funding agencies, as applicable, at least four (4) months prior to implementation, as appropriate.

(4) [(3)] When the curriculum of the extension program/campus [program's curriculum ] deviates from the original program in any way, the proposed extension is viewed as a new program and Board guidelines for a new program apply.

(5) [(4)] Extension programs of vocational nursing educational programs which have been closed may be reactivated by submitting notification of reactivation to the Board at least four (4) months prior to reactivation, using the Board guidelines for initiating an extension program.

(6) [(5)] A program intending to close an extension program shall:

(A) Notify the Board office at least four (4) months prior to closure of the extension program.

(B) Submit required information according to Board-approved guidelines including:

(i) reason for closing the program;

(ii) date of intended closure;

(iii) academic provisions for students; and

(iv) provisions made for access to and storage of vital school records.

(7) Consolidation. When a controlling agency/governing institution oversees an extension program/campus or multiple extension programs/campuses with curricula identical to the curriculum of the main program/campus, the controlling agency/governing institution and the program director may request consolidation of the extension program(s)/campus(es) with the main program utilizing one NCLEX-PN® examination testing code.

(A) The request to consolidate the extension program(s)/campus(es) with the main program shall be submitted in the form of a formal letter to the Board office at least four (4) months prior to the effective date of consolidation addressing the required information as outlined in Board guidelines.

(B) The notification of the consolidation will be presented, as information only, to the Board at a regularly scheduled Board meeting as no Board action is required.

(C) The program will receive an official letter of acknowledgment following the Board meeting.

(D) After the effective date of consolidation, the NCLEX-PN® examination testing code(s) for the extension program(s) will be deactivated/closed.

(E) The NCLEX-PN® examination testing code assigned to the main program will remain active.

(c) Transfer of Controlling Agency/Governing Institution . The authorities of the controlling agency/governing institution shall notify the Board office in writing of an intent to transfer the administrative authority of the program. This notification shall follow Board guidelines.

(d) Closing [Closure of] a Program. A program shall notify the Board office in writing of their intent to close the program.

(1) When the decision to close a program which provides the entire program of study has been made, the director must notify the Board and submit a written plan for closure which includes the following:

(A) reason for closing the program;

(B) date of intended closure;

(C) academic provisions for students to complete the nursing educational program and teach-out arrangements have been approved by the appropriate Texas agency, (i.e., TWC, THECB, Texas Board of Nursing);

(D) provisions made for access to and safe storage of vital school records, including transcripts of all graduates; and

(E) methods to be used to maintain requirements and standards until the program closes.

(2) The program shall continue within standards until all students, enrolled in the nursing educational program at the time of the decision to close, have graduated. In the event this is not possible, a plan shall be developed whereby students may transfer to other approved programs.

[(1) The controlling agency shall be responsible for graduating enrolled students or ensuring the satisfactory transfer of those students into another program.]

[(2) The controlling agency shall provide for permanent storage of student records.]

(3) A program is deemed closed when the program has not enrolled students for a period of two years since the last graduating class or student enrollment has not occurred for a two-year period. Board-ordered enrollment suspensions may be an exception.

(e) Approval of a Nursing Educational Program Outside Texas' Jurisdiction to Conduct Clinical Learning Experiences in Texas.

(1) The nursing educational program outside Texas' jurisdiction seeking approval to conduct clinical learning experiences in Texas should initiate the process with the Texas Board of Nursing two to three months prior to the anticipated start of the clinical learning experiences in Texas.

(2) A written request and the required supporting documentation shall be submitted to the Board office following Board guidelines.

(3) Evidence that the program has been approved/licensed or deemed exempt from approval/licensure by the appropriate Texas agency, (i.e., THECB, TWC), to conduct business in the State of Texas, must be obtained before approval can be granted by the Texas Board of Nursing for the program to conduct clinical learning experiences in Texas.

§214.4.Approval.

(a) The progressive designation of approval status is not implied by the order of the following listing. Approval status is based upon each program's performance and demonstrated compliance to the Board's requirements and response to the Board's recommendations. Change from one status to another is based on NCLEX-PN® [ NCLEX-PN™] examination pass rates, compliance audits, survey visits, and other factors listed under subsection (b) of this section [§214.4(b) of this chapter]. Types of approval include:

(1) Initial Approval.

(A) Initial approval is written authorization by the Board for a new program to admit students, is granted if the program meets the requirements and addresses the recommendations issued by the Board, and begins with the date of the first student enrollment.

(B) Student enrollment is determined by the Board and the specifics are included in the Board's initial approval letter [The program shall not enroll more than one class per year while on initial approval].

(C) Change from initial approval status to full approval status cannot occur until the program has met requirements and responded to all recommendations issued by the Board and the licensing examination result of the first graduating class is evaluated by the Board.

(2) Full Approval.

(A) Full Approval is granted by the Board to a vocational nursing educational program that is in compliance with all requirements and has responded to all recommendations.

(B) Only programs with full [Full] approval status may initiate extension programs, grant faculty waivers, and petition for faculty waivers.

(3) Full approval [Approval] with warning [Warning] is issued by the Board to a vocational nursing educational program that is not meeting legal and educational requirements.

(A) A program issued a warning will receive written notification from the Board of the warning.

(B) The program is given a list of the deficiencies and a specified time in which to correct the deficiencies.

(4) Conditional Approval. Conditional approval is issued by the Board for a specified time to provide the program opportunity to correct deficiencies.

(A) The program shall not admit students while on conditional status.

(B) The Board may establish specific criteria to be met in order for the program's conditional approval status to be changed.

(C) Depending upon the degree to which the Board's legal and educational requirements are met, the Board may change the approval status to full approval or full approval with warning, or may withdraw approval.

(5) Withdrawal of Approval. The Board may withdraw approval from a program which fails to meet legal and educational requirements within the specified time. The program shall be removed from the list of Board approved vocational nursing educational programs.

(b) Factors Jeopardizing Program Approval Status--Approval may be changed or withdrawn for any of the following reasons:

(1) deficiencies in compliance with the rule;

(2) utilization of students to meet staffing needs in health care facilities;

(3) noncompliance with school's stated philosophy/mission, program design, objectives/outcomes, and/or policies;

(4) continual failure to submit records and reports to the Board office within designated time frames;

(5) failure to provide sufficient variety and number of clinical learning opportunities for students to achieve stated objectives/outcomes;

(6) failure to comply with Board requirements or to respond to Board recommendations within the specified time;

(7) student enrollments without sufficient faculty, facilities and/or patient census;

(8) failure to maintain a 80% passing rate on the licensing examination by first-time candidates;

(9) failure of program director to document annually the currency of faculty licenses; or

(10) other activities or situations that demonstrate to the Board that a program is not meeting legal requirements and standards.

(c) Ongoing Approval Procedures. Approval status is determined biennially by the Board on the basis of the program's compliance audit, NCLEX-PN® [NCLEX-PN™] examination pass rate, and other pertinent data.

(1) Compliance Audit. Each approved vocational nursing educational program shall submit a biennial audit regarding its compliance with the Board's legal and educational requirements.

(2) NCLEX-PN® [NCLEX-PN™] Pass Rates.

(A) Eighty percent (80%) of first-time candidates who complete the program of study are required to achieve a passing score on the NCLEX-PN® [NCLEX-PN™] examination.

(B) When the passing score of first-time candidates who complete the vocational nursing educational program is less than 80% on the NCLEX-PN® [NCLEX-PN™] examination during the examination year, the nursing program shall submit a self-study report that evaluates factors which contributed to the graduates' performance on the NCLEX-PN® [NCLEX-PN™] examination and a description of the corrective measures to be implemented. The report shall follow Board guidelines.

(C) A warning shall be issued to the program when the pass rate of first-time candidates, as described in subsection (c)(2)(A) of this section, is less than 80% for two consecutive examination years.

(D) A program shall be placed on conditional approval status if, within one examination year from the date the warning is issued, the performance of first-time candidates fails to be at least 80% on the NCLEX-PN® [NCLEX-PN™] examination, or the faculty fail to implement appropriate corrective measures.

(E) Approval may be withdrawn if the performance of first-time candidates fails to be at least 80% during the examination year following the date that the program was placed on conditional approval.

(F) A program issued a warning or placed on conditional approval status may request a review of the program's approval status by the Board at a regularly scheduled meeting if the program's pass rate for first-time candidates during one examination year is at least 80%.

(3) Survey Visit. Each vocational nursing educational program shall be visited at least every six years after full approval has been granted, unless accredited by a Board-recognized national nursing accrediting agency.

(A) The Board may authorize staff to conduct a survey visit at any time based upon established criteria.

(B) After a program is fully approved by the Board, a report from a Board-recognized national nursing accrediting agency regarding a program's accreditation status may be accepted in lieu of a Board survey visit.

(C) A written report of the survey visit, compliance audit, and NCLEX-PN® [NCLEX-PN™] examination pass rate shall be reviewed by the Board biennially at a regularly scheduled meeting.

(4) The Texas Board of Nursing will select one or more national nursing accrediting agencies, recognized by the United States Department of Education and determined by the Board to have standards equivalent to the Board's ongoing approval standards. Identified areas that are not equivalent to the Board's ongoing approval standards will be monitored by the Board on an ongoing basis. [equivalent to the Board's ongoing approval standards.]

(5) [(A)] The Texas Board of Nursing will periodically review the standards of the national nursing accrediting agencies following revisions of accreditation standards or revisions in Board requirements for validation of continuing equivalency.

(6) [(B)] The Texas Board of Nursing will deny or withdraw approval from a school of nursing or educational program that fails to:

(A) [(i)] meet the prescribed course of study or other standard under which it sought approval by the Board.

(B) [(ii)] meet or maintain voluntary accreditation, by a school of nursing or educational program approved by the Board as stated in paragraph (7) of this subsection [§214.4(c)(4)(C) of this chapter ], with the national nursing accrediting agency selected by the Board under which it was approved or sought approval by the Board.

(C) [(iii)] maintain the approval of the state board of nursing of another state that the Board has determined has standards that are substantially equivalent to the Board's standards under which it was approved.

(7) [(C)] A school of nursing or educational program is considered approved by the Board and exempt from Board rules that require ongoing approval if the program:

(A) [(i)] is accredited and maintains voluntary accreditation through an approved national nursing accrediting agency that has been determined by the Board to have standards equivalent to the Board's ongoing approval standards; and

(B) [(ii)] maintains an acceptable pass rate, as determined by the Board, on the applicable licensing exam.

(8) [(D)] A school of nursing or educational program that fails to meet or maintain an acceptable pass rate, as determined by the Board, on applicable licensing examinations is subject to review by the Board.

(9) [(E)] A school of nursing or educational program, approved by the Board as stated in paragraph (7) of this subsection [§214.4(c)(4)(C)] of this chapter, that does not maintain voluntary accreditation through an approved national nursing accrediting agency that has been determined by the Board to have standards equivalent to the Board's ongoing approval standards is subject to review by the Board.

(10) [(F)] The Board may assist the school or program in its effort to achieve compliance with the Board's standards.

(11) [(G)] A school or program from which approval has been withdrawn may reapply for approval.

(12) [(H)] A school of nursing or educational program accredited by an agency recognized by the Board shall:

(A) [(i)] provide the board with copies of any reports submitted to or received from the national nursing accrediting agency selected by the Board within three (3) months of receipt of official reports;

(B) [(ii)] notify the Board of any change in accreditation status within two (2) weeks following receipt of official notification letter; and

(C) [(iii)] provide other information required by the Board as necessary to evaluate and establish nursing education and workforce policy in this state.

(d) Notice of a program's approval status shall be sent to the director, chief administrative officer of the controlling agency/governing institution, and others as determined by the Board.

§214.5.Philosophy/Mission and Objectives/Outcomes.

(a) The philosophy/mission and objectives/outcomes of the vocational nursing educational [education] program shall be consistent with the philosophy/mission of the controlling agency. They shall reflect the diversity of the community served and shall be consistent with professional, educational, and ethical standards of nursing.

(b) Program objectives/outcomes derived from the philosophy/mission shall reflect the Differentiated Entry Level Competencies of Graduates of Texas Nursing Programs, Vocational (VN), Diploma/Associate Degree (Dip/ADN), Baccalaureate (BSN), September 2002 (DELC).

(c) Clinical objectives/outcomes shall be stated in behavioral terms and shall serve as a mechanism for evaluating student progression.

(d) The conceptual framework shall provide the organization of major concepts from the philosophy/mission of the program that provides the underlying structure or theme of the curriculum and facilitates the achievement of program objectives/outcomes.

(e) The faculty shall periodically review the philosophy/mission and objectives/outcomes and shall make appropriate revisions to maintain currency.

§214.6.Administration and Organization.

(a) The controlling agency/governing institution shall be licensed/approved or deemed exempt [or accredited] by the Texas Workforce Commission (TWC) or the Texas Higher Education Coordinating Board (THECB) [a Board-recognized agency].

(b) There shall be an organizational chart indicating lines of authority between the vocational nursing educational program and the controlling agency/governing institution.

(c) The nursing educational program shall have comparable status with other educational units within the controlling agency/governing institution in such areas as budgetary authority, rank, promotion, tenure, leave, benefits and professional development [within the institution (controlling agency)].

(d) Salaries shall be adequate to recruit, employ, and retain sufficient qualified nursing faculty members with the expertise necessary for students to meet program goals.

(e) The controlling agency/governing institution shall provide financial support and resources needed to operate a nursing educational program which meets the legal and educational requirements of the Board and fosters achievement of program goals. The financial resources shall support adequate educational facilities, equipment and qualified administrative and instructional personnel.

(f) Each vocational nursing educational program shall be administered by a qualified individual who is accountable for the planning, implementation and evaluation of the vocational nursing educational program. The director/coordinator shall:

(1) hold a current license or privilege to practice as a registered nurse in the state of Texas;

(2) have been actively employed in nursing for the past five years, preferably in supervision or teaching;

(3) if the director has not been actively employed in nursing for the past five years, the director's advanced preparation in nursing, nursing education, and nursing administration and prior relevant nursing employment may be taken into consideration by the Board staff in evaluating qualifications for the position;

(4) have a degree or equivalent experience that will demonstrate competency and advanced preparation in nursing, education, and administration;

(5) have had five years of varied nursing experience since graduation from a professional nursing educational program;

(6) the director may have responsibilities other than the program provided that another qualified nursing faculty member is designated to assist with the program management; and

(7) a director with responsibilities other than the program shall not have major teaching responsibilities.

(g) When the director/coordinator of the program changes, the director/coordinator shall submit to the Board office written notification of the change indicating the final date of employment.

(1) A new Dean/Director/Coordinator Qualification Form shall be submitted to the office by the controlling agency/governing institution for approval prior to the appointment of a new director/coordinator or an interim director/coordinator in an existing program or a new nursing educational program according to Board guidelines.

(2) A vitae and all applicable official transcripts shall be submitted with the new Dean/Director/Coordinator Qualification Form, according to Board guidelines.

(3) If an interim director/coordinator is appointed to fill the position, this appointment shall not exceed one year.

(4) In a fully approved vocational nursing educational program, if the individual to be appointed as director/coordinator or interim director/coordinator does not meet the requirements for director/coordinator as specified in subsection (f) of this section, the administration is permitted to petition for a waiver of the Board's requirements, according to Board guidelines, prior to the appointment of said individual.

(h) A newly appointed director/coordinator or interim director/coordinator of a vocational nursing educational program shall attend the next scheduled education workshop provided by the Board related to the education rules and the role and responsibilities of newly appointed directors/coordinators.

(i) The director/coordinator shall have the authority to direct the nursing educational program in all its phases, including approval of teaching staff, selection of appropriate clinical sites, admission, progression, probation, dismissal of students, and enforcement of student policies. Additional responsibilities include, but are not limited to:

(1) providing evidence of faculty expertise and knowledge to teach curriculum content;

(2) verifying student's completion of program requirements;

(3) completing and submitting the Texas Board of Nursing Affidavit of Graduation; and

(4) completing and submitting the Texas Board of Nursing Educational Program Information Survey (NEPIS) and Compliance Audit (CANEP) by the required dates.

[(d) The controlling agency shall:]

[(1) be responsible for satisfactory operation of the vocational nursing educational program;]

[(2) meet rules and regulations as stated in this chapter;]

[(3) provide the number of faculty necessary to meet minimum standards set by the Board and to insure a sound educational program;]

[(4) provide for suitable classroom and clinical facilities;]

[(5) provide secretarial assistance;]

[(6) provide sufficient funds for operation and maintenance of the program to meet requirements set by the Board; and]

[(7) select and appoint a qualified registered nurse director or coordinator for the program who meets the requirements of the Board. The director shall:]

[(A) hold a current license or privilege to practice as a registered nurse in the state of Texas;]

[(B) have been actively employed in nursing for the past five years, preferably in supervision or teaching. If the director has not been actively employed in nursing for the past five years, the director's advanced preparation in nursing, nursing education, and nursing administration and prior relevant nursing employment may be taken into consideration by the Board staff in evaluating qualifications for the position;]

[(C) have a degree or equivalent experience that will demonstrate competency and advanced preparation in nursing, education, and administration; and]

[(D) have had five years of varied nursing experience since graduation from a professional nursing educational program.]

[(e) When the director or coordinator of the program changes, the director or coordinator shall submit to the Board office written notification of the change indicating the final date of employment. The controlling agency shall ensure that:]

[(1) a new director or coordinator qualification form is submitted to the Board office for approval prior to being hired at an existing program or a new program;]

[(2) the director may have responsibilities other than the program provided that an assistant program coordinator/lead instructor is designated to assist with the program management;]

[(3) a director with responsibilities other than the program shall not have major teaching responsibilities; and ]

[(4) written job descriptions exist which clearly delineate responsibilities of the director, coordinator and lead instructor, as appropriate.]

[(f) In a fully approved vocational nursing educational program, if the individual to be appointed as director or coordinator does not meet the requirements for director or coordinator as specified in subsection (d)(7) of this section, the administration is permitted to petition for a waiver of the Board's requirements, according to Board guidelines, prior to the appointment of said individual.]

[(g) A newly appointed director or coordinator of a vocational nursing educational program shall attend the next scheduled orientation provided by the Board staff.]

[(h) The director or coordinator shall have the authority to direct the program in all its phases, including approval of teaching staff, selection of appropriate clinical sites, admission, progression, probation, and dismissal of students. Additional responsibilities include but are not limited to:]

[(1) providing evidence of faculty expertise and knowledge to teach curriculum content;]

[(2) acting as agent of the Board and issuing temporary permits to eligible graduates, upon completion of the program;]

[(3) verifying student's completion of program requirements on the Affidavit of Graduation; and]

[(4) completing and submitting the Texas Board of Nursing Compliance Audit and Nursing Educational Program Information Survey by the required dates.]

§214.7.Faculty [ Qualifications and Faculty Organization ].

(a) There shall be written personnel policies for nursing faculty that are in keeping with accepted educational standards and are consistent with the policies of the controlling agency/governing institution. [Faculty policies shall include, but not be limited to: qualifications, responsibilities, performance evaluation criteria, and terms of employment.]

(1) Nursing policies that differ from those of the controlling agency/governing institution shall be consistent with nursing unit mission and goals (philosophy and outcomes).

(2) Written policies concerning workload for the director or coordinator shall allow for sufficient time for administrative responsibilities consistent with §214.6 of this chapter (relating to Administration and Organization).

(3) Faculty policies shall include, but not be limited to: qualifications, responsibilities, performance evaluation criteria, and terms of employment.

(4) Written policies for nursing faculty workload shall allow sufficient time for faculty to accomplish those activities related to the teaching-learning process.

(5) Position descriptions for the director/coordinator and nursing faculty outlining their responsibilities directly related to the nursing program shall be included in the nursing faculty handbook.

(6) Written policies for nursing faculty shall include: plans for faculty orientation to the institution and the nursing program, faculty development, and evaluation of faculty.

(A) Orientation of new nursing faculty members shall be initiated at the onset of employment.

(B) A plan for nursing faculty development shall be offered to encourage and assist faculty members to meet the nursing program's needs as well as individual faculty members' professional development needs.

(C) A variety of means shall be used to evaluate faculty performance such as self, student, peer and administrative evaluation.

[(1) Policies concerning workload for faculty and the director or coordinator shall be in writing.]

[(2) There shall be written plans for faculty orientation, development and evaluation.]

[(3) There shall be orientation of new faculty members at the onset of employment.]

[(4) A variety of means shall be used to evaluate faculty performance such as self, student, peer and administrative evaluation.]

(b) A vocational nursing educational program shall employ sufficient faculty members with educational preparation and expertise necessary to enable the students to meet the program goals. The number of faculty members shall be determined by such factors as: [Minimum Teaching Personnel--There shall be a minimum of one full-time nursing instructor for the program. A director/coordinator without major teaching or clinical responsibilities shall not be considered a full-time instructor. Use of part-time instructors is permissible.]

(1) The number and level of students enrolled;

(2) The curriculum plan;

(3) Activities and responsibilities required of faculty;

(4) The number and geographic locations of affiliating agencies and clinical practice settings; and

(5) The level of care and acuity of clients.

(c) Faculty Qualifications and Responsibilities.

(1) Documentation of faculty qualifications shall be included in the official files of the program.

(2) Each nurse faculty member shall:

(A) Hold [hold] a current license or privilege to practice nursing in the State of Texas;

(B) Have [have] been actively employed in nursing for the past three years or have advanced preparation in nursing, nursing education, and/or nursing administration. [If the instructor has not been actively employed in nursing for the past three years, the instructor's advanced preparation in nursing, nursing education, and nursing administration, and prior relevant nursing employment may be taken into consideration in evaluating qualifications for the position; and]

(C) Have [have] had three years varied nursing experiences since graduation.

(d) Faculty Waivers.

(1) [(2)] In fully approved programs, if an individual to be appointed as faculty member does not meet the requirements for faculty as specified in subsection (c) of this section, the director or coordinator is permitted to waive the Board's requirements, if the program and prospective faculty member meet the following criteria and after notification to the Board of the intent to waive the Board's faculty requirements for a temporary time period not to exceed one year:

(2) [(A)] Minimum [minimum ] program criteria:

(A) [(i)] program's NCLEX-PN Examination pass rate for the preceding exam year was 80% or above.

(B) [(ii)] total number of faculty waivers at program shall not exceed 10% of the total number of nursing faculty.

[(iii) waiver is valid for up to one year and shall not be extended without Board approval.]

(3) [(B)] Minimum [minimum ] criteria for prospective faculty member:

(A) [(i)] holds a current license or privilege to practice as a vocational or registered nurse in the State of Texas;

(B) [(ii)] has been actively employed in nursing for at least two years in the last three years;

(C) [(iii)] if not actively employed in nursing for the past three (3) years, the prospective faculty's advanced preparation in nursing, nursing education, and nursing administration shall be considered; and

(D) [(iv)] prior relevant nursing employment.

(4) [(C)] When [when ] the program does not meet the minimum program criteria or the prospective faculty member does not meet the minimum criteria for a faculty member, a petition for a waiver shall be submitted to the Board and be reviewed by the members of the Education Liaison Committee (ELC) for recommendation regarding approval and referred to the full Board for ratification.

(5) [(D)] A [a] waiver is valid for up to one year.

(6) [(E)] The [the] director or coordinator shall submit a sworn (notarized) notification of waiver to the Board.

(7) [(F)] If [if] an extension of the waiver is needed, the director or coordinator shall petition the Board for an extension of the original waiver.

[(3) Faculty shall be responsible for:]

[(A) supervision of students in clinical learning experiences;]

[(B) all initial nursing procedures in the clinical area and ascertain that the student is competent before allowing the student to perform an actual nursing procedure independently; ]

[(C) developing, implementing, and evaluating curriculum; and]

[(D) participating in the development of standards for admission, progression, probation, dismissal of students, and participation in academic guidance and counseling.]

[(4) Non-nursing faculty are exempt from meeting the faculty qualifications as long as the teaching assignments are not nursing didactic or clinical courses.]

[(5) Clinical preceptors shall be responsible for providing clinical instruction and/or supervision when a program faculty member is unavailable in clinical sites. The clinical preceptor shall meet the requirements of Rule 214.10(k)(1).]

[(6) Substitute faculty may be employed to meet emergent program needs. Substitute faculty beyond ten consecutive working days and/or on an interim basis shall meet qualifications as specified in Rule 214.7(c)(1).]

[(7) Part-time faculty may participate in all aspects of the program. Clear lines of communication of program policies, objectives and evaluative criteria shall be included in policies for part-time faculty.]

(e) [(8)] Military faculty--Federal laws and regulations regarding licensure of military nursing personnel shall apply to Texas based military faculty members functioning within vocational nursing educational programs.

(f) Non-nursing faculty are exempt from meeting the faculty qualifications as long as the teaching assignments are not nursing content or clinical nursing courses.

(g) All nursing faculty, as well as non-nursing faculty, who teach non-clinical nursing courses that are part of the nursing curriculum, e.g., biological, physical, social, behavioral and nursing sciences, including, body structure and function, microbiology, pharmacology, nutrition, signs of emotional health, and human growth and development, shall have sufficient educational preparation verified by the program director/coordinator as appropriate to these areas of teaching responsibility.

(h) Non-nursing faculty assigned to teach didactic nursing content shall be required to co-teach with nursing faculty in order to meet nursing course objectives.

(i) Teaching assignments shall be commensurate with the faculty member's education and experience in nursing.

(j) Faculty shall be responsible for:

(1) supervision of students in clinical learning experiences;

(2) all initial nursing procedures in the clinical area and ascertain that the student is competent before allowing the student to perform an actual nursing procedure independently;

(3) developing, implementing, and evaluating curriculum; and

(4) participating in the development, implementation, and enforcement of standards/policies for admission, progression, probation, and dismissal of students, and participation in academic guidance and counseling.

(k) Teaching activities shall be coordinated among full-time faculty, part-time faculty, and clinical preceptors.

(l) There shall be a minimum of one full-time nursing instructor for the program.

(m) A director/coordinator without major teaching or clinical responsibilities shall not be considered a full-time instructor for purposes of meeting the Board's requirements related to having a sufficient number of nursing faculty for a nursing educational program.

(n) Substitute faculty may be employed to meet emergent program needs. Substitute faculty beyond ten consecutive working days and/or on an interim basis shall meet qualifications as specified in subsection (c) of this section.

(o) Faculty Organization:

(1) The faculty shall be organized with written policies and procedures and/or bylaws to guide the faculty and program's activities, including processes for enforcement of written student policies.

(2) The faculty shall meet regularly and function in such a manner that all members participate in planning, implementing and evaluating the nursing program. Such participation includes, but is not limited to the initiation and/or change in program policies, personnel policies, curriculum, utilization of affiliating agencies, and program evaluation.

(A) Committees necessary to carry out the functions of the program shall be established with duties and membership of each committee clearly defined in writing.

(B) Minutes of faculty organization and meetings shall document the reasons for actions and the decisions of the faculty and shall be available for reference.

(C) Part-time faculty may participate in all aspects of the program. Clear lines of communication of program policies, objectives and evaluative criteria shall be included in policies for part-time faculty.

[(d) The faculty shall meet regularly and function in such a manner that all members participate in planning, implementing and evaluating the nursing program. Such participation includes, but is not limited to the initiation and/or change in program policies, personnel policies, curriculum, utilization of affiliating agencies, and program evaluation. Minutes of faculty organization and meetings shall document the reasons for actions and the decisions of the faculty and shall be available for reference.]

§214.8.Students.

(a) The number of students admitted to the program shall be determined by the number of qualified faculty, adequate educational facilities and resources, and the availability of appropriate clinical learning experiences for students. Programs shall not accept admissions after the third day of class [The program shall have well defined student policies based upon statutory and Board requirements].

(b) Individuals enrolled in approved vocational nursing education programs preparing students for licensure shall be provided verbal and written information regarding conditions that may disqualify graduates from licensure and of their rights to petition the Board for a Declaratory Order of Eligibility. Required eligibility information includes:

(1) Texas Occupations Code §§301.252, 301.257, and 301.452-.469; and

(2) Sections [§§] 213.27 - 213.30 of the Texas Administration Code (relating to Good Professional Character, Licensure of Persons with Criminal Convictions, Criteria and Procedure Regarding Intemperate Use and Lack of Fitness in Eligibility and Disciplinary Matters, and Declaratory Order of Eligibility for Licensure).

(c) The vocational nursing educational program shall maintain written receipt of eligibility notification for up to six months after the enrolled individual completes the nursing educational program or permanently withdraws from the nursing educational program [Admission requirements shall be stated in the student policies. Programs shall set reasonable educational requirements for admission. Applicants shall present evidence of being able to meet objectives/outcomes of the program. All students shall be pretested. Tests shall measure reading comprehension and mathematical ability].

(d) The program shall have well-defined written nursing student policies based upon statutory and Board requirements, including nursing student admission, dismissal, progression, and graduation policies that shall be developed, implemented and enforced.

(1) Student policies shall be in accordance with the requirements of applicable federal and state agencies.

(2) Nursing student policies which differ from those of the governing institution shall be in writing and shall be made available to faculty and students.

(3) Applicants shall present evidence of being able to meet objectives/outcomes of the program.

(4) All students shall be pretested. Tests shall measure reading comprehension and mathematical ability.

(e) Reasons for dismissal shall be clearly stated in written nursing student policies and shall include any demonstration of the following, including, but not limited to:

(1) evidence of actual or potential harm to patients, clients, or the public;

(2) criminal behavior whether violent or non-violent, directed against persons, property or public order and decency;

(3) intemperate use, abuse of drugs or alcohol, or diagnosis of or treatment for chemical dependency, mental illness, or diminished mental capacity; and

(4) the lack of good professional character as evidenced by a single incident or an integrated pattern of personal, academic and/or occupational behaviors which, in the judgment of the Board, indicates that an individual is unable to consistently conform his or her conduct to the requirements of the Nursing Practice Act, the Board's rules and regulations, and generally accepted standards of nursing practice including, but not limited to, behaviors indicating honesty, accountability, trustworthiness, reliability, and integrity.

(f) Policies shall facilitate mobility/articulation, be consistent with acceptable educational standards, and be available to students and faculty.

[(d) Reasons for dismissal shall be stated in student policies.]

(g) [(e)] Student [ Copies of the student] policies shall be furnished manually or electronically to all students at the beginning of the students' enrollment in the nursing educational program [ school year].

(1) The program [school] shall maintain a signed receipt of student policies in all students' records.

(2) It is the [school's] responsibility of the program and the nursing faculty to define and enforce nursing student policies.

(h) Acceptance of transfer students and evaluation of allowable credit for advanced placement remains at the discretion of the director or coordinator of the program and the controlling agency/governing institution. Upon completing the receiving program's requirements, the individual is considered to be a graduate of the program.

(i) Students shall have mechanisms for input into the development of academic policies and procedures, curriculum planning, and evaluation of teaching effectiveness.

(j) Students shall have the opportunity to evaluate faculty, courses, and learning resources and these evaluations shall be documented.

[(f) The number of students admitted to the program shall be determined by the number of qualified faculty, adequate educational facilities and resources, and the availability of appropriate clinical learning experiences for students. Programs shall not accept admissions after the third day of class.]

[(g) Students shall be allocated at least 18 days leave for vacation and/or holidays. All scheduled holidays are to be observed on the holidays designated by the controlling agency. Vacation time shall be scheduled at the same time for all students.]

[(h) Students shall meet the requirements of Rule 214.9(e) related to Program of Study to be eligible for graduation from an approved vocational nursing education program.]

[(i) Acceptance of transfer students and evaluation of allowable credit for advanced placement remains at the discretion of the coordinator or director of the program and the controlling agency. Upon completing the program's requirements, the individual is considered to be a graduate of the school.]

[(j) Records of student conferences shall be kept and made available to the student involved and all faculty members. Students shall be provided written documentation of all conferences. ]

[(k) Students shall have the opportunity to evaluate faculty, courses, and learning resources and these evaluations shall be documented.]

§214.9.Program of Study.

(a) The program of study shall include both didactic and clinical learning experiences and shall be:

(1) a minimum of 1,398 clock hours: 558 hours for classroom instruction and 840 hours for clinical practice; [. Class hours shall include actual hours of classroom instruction in nursing and non-nursing Board-required courses/content. Clinical practice shall include actual hours of practice in clinical areas, clinical conferences, and/or simulated lab experiences.]

(2) planned, implemented, and evaluated by the faculty;

(3) based on the philosophy/mission and objectives/outcomes;

(4) organized by subject and content to meet the needs of the program;

(5) scheduled with the placement of courses or course content throughout the entire length of the program;

[(2) scheduled with the placement of courses or course content throughout the entire length of the program;]

[(3) organized by subject and content to meet the needs of the program;]

[(4) based on the philosophy/mission and objectives/outcomes;]

(6) [(5)] based on sound educational principles;

(7) [(6)] designed to prepare graduates to practice according to the [The Nursing Practice Act,] Standards of Nursing Practice as set forth in the Board's Rules and Regulations [, Unprofessional Conduct Rules, and other laws and regulations which pertain to various practice settings];

(8) [(7)] designed and implemented to prepare students to demonstrate the Differentiated Entry Level Competencies of Graduates of Texas Nursing Programs, Vocational (VN), Diploma/Associate Degree (Dip/ADN), Baccalaureate (BSN), September 2002 (DELC); and

(9) [(8)] designed to teach students to use a systematic approach to clinical decision making and safe patient care.

(b) The faculty shall be responsible for the development, implementation and evaluation of the curriculum based upon the following guidelines:

(1) There shall be a reasonable balance between non-nursing courses and nursing courses which are offered in a supportive sequence with rationale which are clearly appropriate for the study of vocational nursing.

[(1) Framework. The philosophy/mission shall be the basis for curriculum development and shall reflect the purpose of the organization, faculty beliefs, and education concepts. Clinical learning objectives/outcomes derived from the philosophy/mission shall be representative of the Differentiated Entry Level Competencies of Graduates of Texas Nursing Programs, Vocational (VN), Diploma/Associate Degree (Dip/ADN), Baccalaureate (BSN), September 2002 for preparation of a vocational nurse graduate. Clinical and course objectives/outcomes shall be stated in behavioral terms and shall serve as the mechanism for student progression. The conceptual framework shall define the internal and external influences impacting vocational nursing education and shall identify the educational method and focus.]

[(2) Design and Implementation. The curriculum shall be designed and implemented to prepare students to demonstrate the Differentiated Entry Level Competencies of Graduates of Texas Nursing Programs, Vocational (VN), Diploma/Associate Degree (Dip/ADN), Baccalaureate (BSN), September 2002. The curriculum design shall allow for flexibility to incorporate current nursing education theories and the implications of current developments in health care and health care delivery to assist graduates in meeting professional, legal, and societal expectations. Educational mobility shall also be a consideration in curriculum design. ]

(2) [(3)] [Specific provisions ] Instruction shall be provided in nursing roles; biological, physical, social, behavioral, and nursing sciences, including body structure and function, microbiology, pharmacology, [and] nutrition, signs of emotional health,[; and] human growth and development; vocational [. Vocational] adjustments; and nursing skills [shall also be included]. Courses may be integrated or separate. [The selection and organization of the learning experiences in the curriculum shall provide continuity, sequence, and integration of learning. Didactic and skills laboratory experiences shall be concurrent. Correlated didactic and clinical practice shall be provided in the following areas, but not necessarily in separate courses:]

[(A) Nursing Care of Children. Experiences shall include care of children and meeting their needs in a variety of age groups in both the acute and non-acute care setting. Day care and clinic settings may be utilized as supplementary experience. Common health deviations, physical, psychological, and neurological handicaps, and nutritional needs shall be emphasized. Students shall have opportunities to develop understanding of normal growth and development and the influences of the family, home, church, school, and community. Student practice in caring for and understanding the needs of newborn infants shall also be included.]

[(B) Maternity Nursing. Opportunities shall be provided for students to gain an understanding of the psychological and physiological aspects of pregnancy, labor, and puerperium. Assisting mothers in the care of their infants shall be emphasized. A variety of settings, including clinics, organized maternity units, and maternity cases in non-segregated units, may be utilized for provision of maternity nursing experience.]

[(C) Nursing Care of the Aged. Opportunities shall be included for the care of individuals experiencing specific changes related to the aging process. Students shall develop an understanding of the physical and mental changes associated with aging and the implications of aging in planning nursing care.]

[(D) Nursing Care of Adults. Opportunities shall be provided to the student through the use of various resources to care for adults who have health deviations. Resources used shall include learning experiences to illustrate the individual as a member of the family, the responsibilities and functions of the community in the provision of nursing care, and the types of agencies where nursing is practiced. Preventive, therapeutic, and rehabilitative aspects shall be provided. Experiences shall also include the physical, psychological, and spiritual components of health and disease. Experience shall include, but not be limited to, the acute care settings.]

[(E) Nursing Care of Individuals With Mental Health Problems. Learning opportunities shall include an understanding of personality development, human needs, common mental mechanisms, and factors influencing mental health and mental illness. Common mental disorders and related therapy shall be included. Clinical experience in a unit or facility specifically designed for psychiatric care is optional.]

(c) Instruction [Classroom instruction] shall include, but not be limited to, organized student/faculty interactive learning activities, formal lecture, audiovisual presentations, [and] simulated laboratory instruction, and actual patient care clinical learning experiences.

(1) Class hours shall include actual hours of classroom instruction in nursing and non-nursing Board-required courses/content;

(2) Laboratory activities/instruction may be counted as either classroom or laboratory hours for the purpose of calculating the hours in the curriculum;

(3) Clinical hours shall be sufficient to meet program of study requirements;

(4) Clinical practice shall include actual hours of practice in clinical areas, clinical conferences, and simulated lab experiences, if counted as clinical hours for the purposed of calculating the hours in the curriculum;

(5) The total weekly schedule throughout the length of the program shall not exceed 40 hours per week, including both class and clinical practice hours;

(6) Students shall be assigned two consecutive non-class/clinical days off each week;

(7) Students shall be allocated at least 18 days leave for vacation and/or holidays;

(8) All scheduled holidays are to be observed on the holidays designated by the controlling agency/governing institution; and

(9) Vacation time shall be scheduled at the same time for all students.

(d) Educational mobility shall be a consideration in curriculum design [The curriculum plan, including course outlines, shall be kept current and available to faculty and Board representatives].

(e) The program of study shall include, but not be limited to, the following areas: [A system of grading shall be in place which does not allow grades of less than a "C" on any subject area required for licensure eligibility listed in this chapter].

(1) Nursing Care of Children. Opportunities shall be provided for students to gain an understanding of the common health deviations, physical, psychological, and neurological handicaps, and nutritional needs of pediatric patients. Day care and clinic settings may be utilized as supplementary experiences. Normal growth and development and the influences of the family, home, church, school, and community shall be emphasized. Student practice in caring for and understanding the needs of newborn infants shall also be included. A variety of settings, including acute and non-acute, may be utilized for the provision of pediatric nursing experiences.

(2) Maternity Nursing. Opportunities shall be provided for students to gain an understanding of the psychological and physiological aspects of pregnancy, labor, and puerperium. Assisting mothers in the care of their infants shall be emphasized. A variety of settings, including clinics, organized maternity units, and maternity cases in non-segregated units, may be utilized for provision of maternity nursing experience.

(3) Nursing Care of the Aged. Opportunities shall be included for the care of individuals experiencing specific changes related to the aging process. Students shall develop an understanding of the physical and mental changes associated with aging and the implications of aging in planning nursing care.

(4) Nursing Care of Adults. Opportunities shall be provided to the student through the use of various resources to care for adults who have health deviations. Resources used shall include learning experiences to illustrate the individual as a member of the family, the responsibilities and functions of the community in the provision of nursing care, and the types of agencies where nursing is practiced. Preventive, therapeutic, and rehabilitative aspects shall be provided. Experiences shall also include the physical, psychological, and spiritual components of health and disease. Experience shall include, but not be limited to, the acute care settings.

(5) Nursing Care of Individuals With Mental Health Problems. Learning opportunities shall include an understanding of personality development, human needs, common mental mechanisms, and factors influencing mental health and mental illness. Common mental disorders and related therapy shall be included. Clinical experience in a unit or facility specifically designed for psychiatric care is optional.

(f) The selection and organization of the learning experiences in the curriculum shall provide continuity, sequence, and integration of learning. [Major revisions to the curriculum must be submitted to the Board office following Board guidelines for review and approval prior to implementation. Major revisions include:]

(1) The learning experiences shall provide for progressive development of values, knowledge, judgment, and skills.

(2) Didactic learning experiences shall be provided either prior to or concurrent (at the same time) with the related clinical learning experiences.

(3) Clinical learning experiences shall be sufficient in quantity and quality to provide opportunities for students to achieve the stated outcomes.

(4) Students shall have sufficient opportunities in simulated or clinical settings to develop manual technical skills, using contemporary technologies, essential for safe, effective nursing practice.

(5) Learning opportunities shall assist students to develop communication and interpersonal relationship skills.

[(1) changes in philosophy/mission;]

[(2) revisions in program hours; and]

[(3) addition/reduction of courses in the program of study.]

(g) Course content shall be appropriate to the role expectations of the graduate.

(1) Professional values, including ethics, safety, diversity, and confidentiality shall be addressed.

(2) The Nursing Practice Act, Standards of Nursing Practice, Unprofessional Conduct Rules, and other laws and regulations which pertain to various practice settings shall be addressed.

(3) The curriculum plan, including course outlines, shall be kept current and available to faculty and Board representatives.

(h) Faculty shall develop and implement evaluation methods and tools to measure progression of students' cognitive, affective and psychomotor achievements in course/clinical objectives, according to Board guidelines.

(1) A system of grading shall be in place which does not allow grades of less than a "C" on any subject areas required for licensure eligibility listed in this chapter.

(2) Programs may allow individuals to challenge the vocational nursing educational curriculum, and shall develop and define such policies to meet theory and practice requirements for challenging credit.

(i) Curriculum changes shall be developed by the faculty according to Board standards and shall include information outlined in the Board guidelines. The two types of curriculum changes are:

(1) Minor curriculum changes not requiring prior Board staff approval, and may include:

(A) Editorial updates of philosophy/mission and objectives/outcomes; or

(B) Redistribution of course content or course hours.

(2) Major curriculum changes requiring Board staff approval prior to implementation, including:

(A) Changes in program philosophy/mission and objectives/outcomes which result in a reorganization or re-conceptualization of the entire curriculum, including but not limited to, changing from a block to an integrated curriculum;

(B) Revisions in program hours; and

(C) Addition/reduction of course(s) in the program of study.

(j) Documentation of controlling agency/governing institution approval, and approval from the Texas Workforce Commission (TWC) or the Texas Higher Education Coordinating Board (THECB) if approved/licensed by the TWC or THECB, must be provided to the Board prior to implementation of changes, as appropriate.

(k) Nursing educational programs that have full approval status and are undergoing major curriculum changes shall submit an abbreviated proposal, as outlined in Board guidelines, to the Board office for approval at least four (4) months prior to implementation. The abbreviated proposal shall contain at least the following:

(1) new and old philosophy/mission, major concepts, program objectives/outcomes, course objectives/outcomes;

(2) new and old curriculum plans;

(3) clinical evaluation tools for each clinical course; and

(4) additional information, as requested, in order to provide clarity for Board staff.

(l) Nursing educational programs not having full approval status, but proposing a major curriculum change shall submit a full curriculum change proposal, as outlined in Board guidelines, to the Board office and meet the requirements as outlined in subsection (i) of this section.

(m) All nursing educational programs implementing a curriculum change shall submit an evaluation of the outcomes of the implemented curriculum change through the first graduating class under the new curriculum.

[(g) All programs implementing a curriculum change shall provide an evaluation of the outcomes of these changes and submit them with the Annual Report through the first graduating class.]

[(h) There shall be provision for continuous development, implementation, and evaluation of the curriculum.]

[(i) Programs may allow individuals to challenge the vocational nursing education curriculum, and shall develop and define such policies to meet theory and practice requirements for challenging credit.]

[(j) Adaptation to the calendar in the college catalog is permissible.]

§214.10.[Management of] Clinical Learning Experiences [and Resources].

(a) Faculty shall be responsible and accountable for managing clinical learning experiences and observational experiences of students. [Faculty shall be responsible for student clinical practice evaluations. Clinical practice evaluations shall be correlated with level and/or course objectives including formative and summative evaluation. Students shall receive a minimum of three clinical evaluations during the program year.]

(b) Faculty shall develop criteria for the selection of affiliating agencies/clinical facilities or clinical practice settings which address safety and the need for students to achieve the program outcomes (goals) and course objectives through the practice of nursing care or observational experiences. Consideration of selection of a clinical site shall include: [Clinical practice shall include actual hours of practice in clinical areas, clinical conferences, and/or simulated lab experiences.]

(1) client census in sufficient numbers to meet the clinical objectives/outcomes of the program/courses; and

(2) evidence of collaborative arrangements for scheduling clinical rotations with those facilities that support multiple nursing programs.

(c) Faculty shall select and evaluate affiliating agencies/clinical facilities or clinical practice settings which provide students with opportunities to achieve the goals of the program.

(1) Written agreements between the program and the affiliating agencies shall be in place before clinical learning experiences begin and shall specify the responsibilities of the program to the agency and the responsibilities of the agency to the program.

(2) Agreements shall be reviewed periodically and include provisions for adequate notice of termination and a withdrawal of participation clause indicating a minimum period of time to be given for notice of such withdrawal.

(3) Affiliation agreements are optional for those clinical experiences which are observation only.

[(c) Clinical experiences shall include the administration of medications, health promotion and preventive aspects, nursing care of persons throughout the life span with acute and chronic illnesses, and rehabilitative care. Students shall participate in instructor supervised patient teaching. Students shall also be provided opportunities for participation in clinical conferences. The focus of clinical conferences shall be student experiences in the clinical setting. Simulated laboratory experiences may also be utilized as a teaching strategy in classroom and clinical settings to meet objectives. ]

(d) The faculty member shall be responsible for the supervision of students in clinical learning experiences and scheduling [Scheduling] of student time and clinical rotations [shall be made by the program faculty].

(1) Selected clinical learning experiences will remain unchanged unless a client's condition demands reassignment.

(2) Reassignment must be approved with prior consent of faculty.

(3) The student's daily client assignment shall be made in accordance with clinical objectives/outcomes and learning needs of the students.

(4) The total number of daily assignments shall not exceed five (5) clients.

(e) Clinical learning experiences shall include the administration of medications, health promotion and preventive aspects, nursing care of persons throughout the life span with acute and chronic illnesses, and rehabilitative care.

(1) Students shall participate in instructor supervised patient teaching.

(2) Students shall also be provided opportunities for participation in clinical conferences.

(3) Simulated laboratory experiences may also be utilized as a teaching strategy in classroom and clinical settings to meet objectives and may be counted as either classroom or clinical hours for the purpose of calculating the hours in the curriculum.

(f) Faculty shall be responsible for student clinical practice evaluations. Clinical practice evaluations shall be correlated with level and/or course objectives and shall include a minimum of a formative and summative evaluation for each clinical in the curriculum.

(g) The following ratios only apply to clinical learning experiences involving direct patient care:

(1) When a faculty member is the only person officially responsible for a clinical group, the group shall total no more than ten (10) students.

(2) Patient safety shall be a priority and may mandate lower ratios, as appropriate.

(3) The faculty member shall supervise that group in only one facility at a time, unless some portion or all of the clinical group are assigned to observational experiences in additional settings.

(4) Direct faculty supervision is not required for an observational experience.

(h) Clinical preceptors may be used to enhance clinical learning experiences after a student has received clinical and didactic instruction in all basic areas of nursing or within a course after a student has received clinical and didactic instruction in the basic areas of nursing for that course or specific learning experience.

(1) In courses which use clinical preceptors for a portion of clinical learning experiences, faculty shall have no more than twelve (12) students in a clinical group.

(2) In a course which uses clinical preceptors as the sole method of student instruction and supervision in clinical settings, faculty shall coordinate the preceptorship for no more than twenty-four (24) students.

(3) The preceptor may supervise student clinical learning experiences without the physical presence of the faculty member in the affiliating agency or clinical practice setting.

(4) The preceptor shall be responsible for the clinical learning experiences of no more than two (2) students at a time per clinical group.

(i) When faculty use clinical preceptors to enhance clinical learning experiences and to assist faculty in the clinical supervision of students, the following applies:

(1) Faculty shall develop written criteria for the selection of clinical preceptors.

(2) When clinical preceptors are used, written agreements between the vocational nursing educational program, clinical preceptor, and the affiliating agency, when applicable, shall delineate the functions and responsibilities of the parties involved.

(3) Faculty shall be readily available to students and clinical preceptors during clinical learning experiences.

(4) The designated faculty member shall meet periodically with the clinical preceptors and student(s) for the purpose of monitoring and evaluating learning experiences.

(5) Written clinical objectives shall be shared with the clinical preceptors prior to or concurrent with the experience. Written clinical objectives shall be shared with the clinical preceptors prior to or concurrent with the experience.

(6) Clinical preceptors shall have the following qualifications:

(A) competence in designated areas of practice;

(B) philosophy of health care congruent with that of the nursing program; and

(C) current licensure or privilege to practice as a licensed nurse in the State of Texas; or

(D) if not a licensed nurse, a current license in Texas as a health care professional with a minimum of a bachelor's degree in that field.

(j) During clinical learning experiences, programs shall not permit utilization of students for health care facility staffing.

[(e) The student's daily client assignment shall be made in accordance with clinical objectives/outcomes and learning needs of the students. The total number of daily assignments shall not exceed five clients.]

[(f) Consideration of selection of a clinical site shall include:]

[(1) client census in sufficient numbers to meet the clinical objectives/outcomes of the program; and]

[(2) evidence of collaborative arrangements in those facilities, which support multiple nursing programs.]

[(g) There shall be a written affiliation agreement between the controlling agency and the affiliating agency before the affiliation begins. The agreement shall outline the responsibilities of each agency entering the agreement. The agreement shall contain a withdrawal of participation clause indicating a minimum period of time to be given for notice of such withdrawal.]

[(h) Affiliation agreements are optional for those clinical experiences which are observation only.]

(k) [(i)] The affiliating agency shall:

(1) provide clinical facilities for student experiences;

(2) provide space for conducting clinical conferences for use by the school if classrooms are located elsewhere;

(3) provide assistance with clinical supervision of students, including preceptorships, by mutual agreement between the affiliating agency and controlling agency; and

(4) have no authority to dismiss faculty or students. Should the affiliating agency wish to recommend dismissal of faculty or students, such recommendation(s) shall be in writing.

[(j) The faculty member shall be responsible for the supervision of students in clinical learning experiences.]

[(k) The following ratios only apply to clinical learning experiences involving direct patient care:]

[(1) When a faculty member is the only person officially responsible for a clinical group, then the group shall total no more than ten (10) students. Patient safety shall be a priority and may mandate lower ratios, as appropriate. The faculty member shall supervise that group in only one facility at a time, unless some portion or all of the clinical group are assigned to observational experiences in additional settings.]

[(2) Direct faculty supervision is not required for an observational experience. Observational experiences may be used to supplement, but not replace patient care experiences, and must serve the purpose of student attainment of clinical objectives.]

[(l) Clinical preceptors may be used to enhance clinical learning experiences after a student has received clinical and didactic instruction in all basic areas of nursing or within a course after a student has received clinical and didactic instruction in the basic areas of nursing for that course or specific learning experience.]

[(1) In courses which use clinical preceptors for a portion of clinical learning experiences, faculty shall have no more than twelve (12) students in a clinical group.]

[(2) In a course which uses clinical preceptors as the sole method of student instruction and supervision in clinical settings, faculty shall coordinate the preceptorship for no more than twenty-four (24) students.]

[(3) The preceptor may supervise student clinical learning experiences without the physical presence of the faculty member in the affiliating agency or clinical practice setting.]

[(4) The preceptor shall be responsible for the clinical learning experiences of no more than two students (2) at a time per clinical group.]

[(m) When faculty use clinical preceptors to enhance clinical learning experiences and to assist faculty in the clinical supervision of students the following applies:]

[(1) Faculty shall develop written criteria for the selection of clinical preceptors.]

[(2) When clinical preceptors are used, written agreements between the vocational nursing education program, clinical preceptor, and the affiliating agency, when applicable, shall delineate the functions and responsibilities of the parties involved.]

[(3) Faculty shall be readily available to students and clinical preceptors during clinical learning experiences. ]

[(4) The designated faculty member shall meet periodically with the clinical preceptors and student(s) for the purpose of monitoring and evaluating learning experiences.]

[(5) Written clinical objectives, evaluation criteria, and written description of expectations shall be shared with the clinical preceptors prior to or concurrent with the experience. ]

[(6) The preceptor shall be accountable for evaluating the student using clinical objectives developed by vocational nursing faculty.]

[(7) Clinical preceptors shall have the following qualifications: ]

[(A) competence in designated areas of practice;]

[(B) philosophy of health care congruent with that of the nursing program; and]

[(C) current licensure or privilege to practice nursing in the State of Texas.]

[(n) The total weekly schedule throughout the length of the program shall not exceed 40 hours per week including both class and clinical practice hours. Class and clinical practice hours shall be continuous. Students shall be assigned two consecutive non-class days off each week.]

[(o) Programs shall not permit utilization of students for health care facility staffing.]

§214.11.Facilities, Resources, and Services.

(a) The controlling agency/governing institution shall be responsible for providing: [Classrooms and nursing skills laboratory facilities shall be provided to accommodate the learning needs of the students.]

(1) educational facilities,

(2) resources, and

(3) services which support the effective development and implementation of the nursing educational program.

(b) An appropriately equipped skills laboratory shall be provided to accommodate maximum number of students allowed for the program.

(1) The laboratory shall be equipped with hot and cold running water.

(2) The laboratory shall have adequate [cabinets for ] storage for [of] equipment.

(c) The director/coordinator and faculty shall have adequate secretarial and clerical assistance to meet the needs of the program.

(d) The physical facilities shall be adequate to meet the needs of the program in relation to the size of the faculty and the student body.

(1) The director/coordinator shall have a private office.

(2) Faculty offices shall be conveniently located and adequate in number and size to provide faculty with privacy for conferences with students and uninterrupted work.

(3) Space for clerical staff, records, files, and equipment shall be adequate.

(4) There shall be mechanisms which provide for the security of sensitive materials, such as examinations and health records.

(5) Classrooms, laboratories, and conference rooms shall be conducive to learning and adequate in number, size, and type for the number of students and the educational purposes for which the rooms are used.

(6) Teaching aids shall be provided to meet the objectives/outcomes of the program.

(7) Adequate restrooms and lounges shall be provided convenient to the classroom.

(e) The learning resources, library, and departmental holdings shall be current, use contemporary technology appropriate for the level of the curriculum, and be sufficient for the size of the student body and the needs of the faculty.

(1) Provisions shall be made for accessibility, availability, and timely delivery of information resources.

(2) Facilities and policies shall promote effective use, i.e. environment, accessibility, and hours of operation.

[(c) The director or coordinator and faculty shall have office space provided, other than the classroom. There shall be privacy for counseling of students.]

[(d) The learning resources, library, and departmental holdings shall be current, use contemporary technology appropriate for the level of the curriculum, and be sufficient for the size of the student body and the needs of the faculty.]

[(1) Provisions shall be made for accessibility, availability, and timely delivery of information resources.]

[(2) Facilities and policies shall promote effective use, i.e. environment, accessibility, and hours of operation.]

[(e) Teaching aids shall be provided to meet the objectives of the program.]

[(f) Adequate restrooms and lounges shall be provided convenient to the classroom.]

§214.12.Records and Reports.

(a) Accurate and current records shall be maintained for a minimum of two (2) years in a confidential manner and be accessible to appropriate parties, including Board representatives. These records shall include, but are not limited to: [Student Forms--Student records shall be maintained on all students and shall be accessible to all faculty members and to Board representatives. Record forms may be developed by an individual school. Hospital employment forms are not to be used for student records.]

(1) records of current students, including the student's application and required admission documentation, evidence of student's ability to meet objectives/outcomes of the program, final clinical practice evaluations, signed receipt of student policies furnished by manual and/or electronic means, evidence of student receipt of the Texas Board of Nursing license eligibility information as specifically outlined in §214.8(b) of this chapter (relating to Students), and the statement of withdrawal from the program, if applicable;

(2) faculty records;

(3) administrative records, which include minutes of faculty meetings for the past three years, and school catalogs;

(4) the current program of study and curriculum including mission and goals (philosophy and outcomes), and course outlines;

(5) agreements with affiliating agencies; and

(6) the master plan of evaluation with most recent data collection.

(b) Record forms may be developed by an individual school.

(c) Hospital employment forms are not to be used for student records.

(d) Records shall be safely stored to prevent loss, destruction, or unauthorized use.

(e) Copies of the program's Texas Board of Nursing Educational Program Information Survey (NEPIS), Compliance Audit of the Nursing Educational Program (CANEP), and important Board communication shall be maintained as appropriate.

[(b) Required Student Forms--The required student forms are the student application, evidence of student's ability to meet objectives/outcomes of the program, clinical practice evaluation, transcript, signed receipt of written student policies, evidence of student receipt of eligibility information, and statement of withdrawal. ]

[(c) Record Storage--Records shall be safely stored to prevent loss, destruction, or unauthorized use. Records of all graduates must be completed prior to permanent storage. Records on students who withdraw from the program shall be completed up to the date of withdrawal]

[(d) Retention of Student Records-All records shall be maintained for two years. At minimum, a transcript shall be retained as a permanent record on all students.]

[(e) Copies of the program's Texas Board of Nursing Compliance Audit of the Nursing Educational Program (CANEP), Nursing Educational Program Information Survey (NEPIS), and important Board communication shall be maintained as appropriate.]

§214.13.Total Program Evaluation.

P>(a) There shall be a written plan for the systematic evaluation of the total program. The plan shall include evaluative criteria, methodology, frequency of evaluation, assignment of responsibility, and indicators (benchmarks) of program and instructional effectiveness. The following broad areas shall be periodically evaluated:

(1) organization and administration of the program;

(2) philosophy/mission and objectives/outcomes;

(3) program of study, curriculum, and instructional techniques;

(4) educational facilities, resources, and services;

(5) affiliating agencies and clinical learning activities;

(6) students' achievement;

(7) graduates' performance on the licensing examination;

(8) graduates' nursing competence;

(9) faculty members' performance; and

(10) extension programs.

(b) All evaluation methods and instruments shall be periodically reviewed for appropriateness.

(c) Implementation of the plan for total program evaluation shall be documented in the minutes.

(d) Major changes in the nursing educational [education ] program shall be evidence-based and supported by rationale.

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 28, 2008.

TRD-200803914

James W. Johnston

General Counsel

Texas Board of Nursing

Earliest possible date of adoption: September 7, 2008

For further information, please call: (512) 305-6811


CHAPTER 215. PROFESSIONAL NURSING EDUCATION

22 TAC §§215.1 - 215.13

The Texas Board of Nursing (Board) proposes amendments to §§215.1 - 215.13, concerning Professional Nursing Education.

Elsewhere in this issue of the Texas Register , the Board is contemporaneously proposing amendments to §§214.1 - 214.13, concerning Vocational Nursing Education.

At the July 2006 Board meeting, the Board issued a charge to the Advisory Committee on Education (ACE) to review rule language regarding clarity and consistency between Chapter 214 and Chapter 215. ACE addressed this charge during the June 13, 2008, meeting in Austin and continued the process during the June 24, 2008, telephonic conference. The proposed amendments to Chapter 215 are as follows:

Section 215.1, General Requirements - addition of language provides clarity for the intent of the rule and matches wording in the statute;

Section 215.2, Definitions - addition, deletion, reorganization, rephrasing, and revision of language provide clarity for the intent of the rule, demonstrate consistency between the rules, and describe the processes that actually occur;

Section 215.3, Program Development, Expansion, and Closure - addition, clarification, deletion and revision of language provide clarity for the intent of the rules, demonstrate consistency between the rules, and describe the processes that actually occur and are outlined in Board guidelines;

Section 215.4, Approval - addition, clarification, deletion, reorganization and revision of language provide clarity for the intent of the rules, demonstrate consistency between the rules, and describe the processes that actually occur;

Section 215.5, Philosophy/Mission and Objectives/Outcomes - addition and revision of language provide clarity for the intent of the rule, demonstrate consistency between the rules, and match wording in the statute;

Section 215.6, Administration and Organization - addition, reorganization, and revision of language provide clarity for the intent of the rule, consistency between the rules, and describe the processes that actually occur;

Section 215.7, Faculty Qualifications and Faculty Organization - addition, deletion, revision, rephrasing, and reorganization of language provide clarity for the intent of the rule, demonstrate consistency between the rules, and describe the processes that actually occur;

Section 215.8, Students - addition, deletion, reorganization, rephrasing, and revision of language provide clarity for the intent of the rule, demonstrate consistency between the rules, and describe the processes that actually occur;

Section 215.9, Program of Study - addition, deletion, reorganization, rephrasing, and revision of language provide clarity for the intent of the rule, demonstrate consistency between the rules, and describe the processes that actually occur;

Section 215.10, Management of Clinical Learning Experiences and Resources - addition, deletion, reorganization, rephrasing, and revision of language provide clarity for the intent of the rule, demonstrate consistency between the rules, and describe the processes that actually occur;

Section 215.11, Facilities, Resources, and Services - addition, deletion, reorganization, rephrasing, and revision of language provide clarity for the intent of the rule, demonstrate consistency between the rules, and describe the processes that actually occur;

Section 215.12, Records and Reports - addition, deletion, reorganization, rephrasing, and revision of language provide clarity for the intent of the rule, demonstrate consistency between the rules, and describe the processes that actually occur; and

Section 215.13, Total Program Evaluation - addition, deletion, reorganization, rephrasing, and revision of language provide clarity for the intent of the rule, demonstrate consistency between the rules, and describe the processes that actually occur.

Additional non-substantive changes were made throughout Chapter 215 for the purposes of correcting spelling/grammatical errors and providing correct numbering of items.

Katherine Thomas, Executive Director, has determined that for the first five-year period the proposed amendments are in effect there will be no additional fiscal implications for state or local government as a result of enforcing the amendments as proposed.

Ms. Thomas has also determined that for each year of the first five years the proposed amendments are in effect, the public benefit will be to provide clarity for the intent of the rules, demonstrate consistency between the rules, and describe the processes that actually occur and are outlined in Board guidelines with regard to program evaluations and approval. Additionally, the rule amendments seek to comply with the Sunset Commissions recommendations outlined in Acts 2007 (HB 2426), 80th Legislature, effective September 1, 2007 and statutory amendments to §301.157, Texas Occupations Code. There will not be any foreseeable effect on small or micro businesses. There are no anticipated costs to affected individuals as a result of the implementation of the proposed amendments.

Written comments on the proposal may be submitted to Dusty Johnston, General Counsel, Texas Board of Nursing, 333 Guadalupe, Suite 3-460, Austin, Texas 78701, or by e-mail to dusty.johnston@bon.state.tx.us, or by fax to Dusty Johnston at (512) 305-8101.

The amendments are proposed pursuant to the authority of Texas Occupations Code §301.157, and §301.151 which authorizes the Texas Board of Nursing to adopt, enforce, and repeal rules consistent with its legislative authority under the Nursing Practice Act.

No other statutes, articles or codes are affected by this proposal.

§215.1.General Requirements.

(a) The dean/director [dean or director] and faculty are accountable for complying with the Board's rules and regulations and the Nursing Practice Act.

(b) Rules for professional nursing educational [education ] programs shall provide reasonable and uniform standards based upon sound educational principles that allow the opportunity for flexibility, creativity and innovation [ and creativity].

§215.2.Definitions.

Words and terms, when used in this chapter, shall have the following meanings unless the context clearly indicates otherwise:

(1) Accredited nursing educational program--a professional nursing educational program having voluntary accreditation by a Board-approved national nursing accrediting body.

(2) Affidavit of Graduation--an official Board form containing an approved nursing educational program's curriculum components and hours, a statement attesting to an applicant's qualifications for registered nurse licensure in Texas and the signature of the nursing program dean/director.

(3) [(2)] Affiliating agency or clinical facility [Agency or Clinical Facility]--a health care facility or agency which provides learning experiences for students.

(4) [(3)] Alternative practice settings--settings which provide opportunities for clinical learning experiences although their primary function is not the delivery of health care.

(5) [(4)] Approved professional nursing educational program--a professional nursing educational program approved by the Texas Board of Nursing.

(6) [(5)] Articulation--a planned process between two or more educational systems to assist students to make a smooth transition from one level of education to another without duplication in learning.

(7) [(6)] Board--the Texas Board of Nursing composed of members appointed by the Governor for the State of Texas.

(8) Career school or college--see paragraph (33) of this section (relating to Proprietary school)--educational entity defined in Title 3, Texas Education Code, §132.0015 as "career school or college."

(9) [(7)] Clinical learning experiences-- faculty planned [faculty-planned] and guided learning activities designed to assist students to meet stated program and course outcomes and to safely apply knowledge and skills when providing nursing care to clients across the life span as appropriate to the role expectations of the graduates. These experiences occur in actual patient care clinical learning situations; nursing skills and computer laboratories; in simulated clinical settings; in a variety of affiliating agencies or clinical practice settings including, but not limited to: acute care facilities, extended care facilities, clients' residences, and community agencies; and in associated clinical conferences.

(10) [(8)] Clinical preceptor--a registered nurse or other licensed health professional who meets the minimum requirements in §215.10(j)(6)[(f)(5)] of this chapter (relating to [Management of] Clinical Learning Experiences [and Resources]), not employed [ paid] as a faculty member by the controlling agency/ governing institution, and who directly supervises a student's clinical learning experience. A clinical preceptor facilitates student learning in a manner prescribed by a signed written agreement between the educational institution, preceptor, and affiliating agency (as applicable).

(11) [(9)] Clinical teaching assistant--a registered nurse licensed in Texas, who is employed to assist in the clinical area and work under the supervision of a Master's or Doctorally prepared nursing faculty member and who meets the minimum requirements in §215.10(j)(8)[(g)(4)] of this chapter.

(12) [(10)] Compliance Audit--a document required by the Board to be submitted at a specified time by the nursing educational program dean or director or coordinator that serves as verification of the program's adherence to this chapter.

(13) [(11)] Conceptual framework [ Framework]--theories or concepts giving structure to the curriculum and enabling faculty to make consistent decisions about [all aspects of] curriculum development, implementation, and evaluation.

(14) Controlling agency--institution that has direct authority and administrative responsibility for the operation of a board approved nursing educational program.

(15) Correlated theory and clinical practice--didactic and clinical experiences which have a reciprocal relationship or mutually complement each other.

(16) [(12)] Course--organized subject content and related activities, which may include didactic, laboratory and/or clinical experiences, planned to achieve specific objectives within a given time period.

(17) [(13)] Curriculum--course offerings, which in aggregate, make up the total learning activities in a program of study.

(18) [(14)] Dean/director [ or Director]--a registered nurse who is accountable for administering a pre-licensure nursing educational program, who meets the requirements as stated in §215.6(f) of this chapter (relating to Administration and Organization), and is approved by the Board.

(19) [(15)] Differentiated Entry Level Competencies (DELC)--the expected educational outcomes to be demonstrated by nursing students at the time of graduation as published in Differentiated Entry Level Competencies [ Compentencies] of Graduates of Texas Nursing Programs, Vocational (VN), Diploma/Associate Degree (Dip/ADN), Baccalaureate (BSN), September 2002 (DELC).

(20) [(16)] Examination year--the period beginning October 1 and ending September 30 used for the purposes of determining programs' NCLEX-RN® [NCLEX-RN™] examination pass rates.

(21) [(17)] Extension program/campus [ Program]--instruction provided by an approved professional pre-licensure nursing educational program through [providing ] a variety of instructional methods to any location(s) other than the program's main campus and where students are required to attend activities such as testing, group conferences, and/or campus laboratory. An extension program may offer the entire identical curriculum or may offer a single course or multiple courses.

[(A) Complete program--provides the entire program of study at a site other than the program's main campus.]

[(B) Partial program--provides a course, or courses, from the program of study at a site other than the program's main campus.]

(22) [(18)] Faculty member--an individual employed to teach in the professional nursing educational program who meets the requirements as stated in §215.7 of this chapter (relating to Faculty [ Qualifications and Faculty Organization]).

(23) [(19)] Faculty waiver--a waiver granted by a dean or director of a professional nursing educational program and submitted to the Board on a notarized notification form, or by the Board, as specified in §215.7(d)(4) [ (c)(1)(E)(iii)] of this chapter, to an individual who has a baccalaureate degree in nursing and is currently licensed in Texas, or has a privilege to practice, to be employed as a faculty member which is valid for up to one year.

(24) [(20)] Governing institution--the entity with administrative and operational authority over a Board-approved professional nursing educational program.

(25) [(21)] Health care professional--an individual other than a RN who holds at least a bachelor's degree in the health care field, including, but not limited to: respiratory therapists, physical therapists, occupational therapists, dieticians, pharmacists, physicians, social workers and psychologists.

[(22) Mobility--the ability to advance without educational barriers.]

(26) MEEP--a Multiple Entry-Exit Program which allows students to challenge the NCLEX-RN® examination when they have completed sufficient course work in a professional nursing educational program that will meet all requirements as outlined in Chapter 213 of this title (relating to Practice and Procedure).

(27) [(23)] Non-nursing faculty [ Nursing Faculty]--instructors who teach non-nursing content [theory courses] such as pharmacology, pathophysiology, research, management and statistics, and who have educational preparation appropriate to the assigned teaching responsibilities.

(28) [(24)] Objectives/Outcomes--clear statements of expected behaviors that are attainable and measurable.

(A) Program Objectives/Outcomes--broad statements used to direct [the] overall student learning to meet [toward the] achievement of expectations upon graduation [expected program outcomes].

(B) Clinical Objectives/Outcomes--statements describing expected student behaviors throughout the curriculum and which represent progression of students' cognitive, affective and psychomotor achievement in clinical practice across the curriculum.

(C) Course Objectives/Outcomes--statements describing expected behavioral changes in the learner upon successful completion of specific curriculum content and which serve as the mechanism for evaluation of student progression.

(29) [(25)] Observational experience--an assignment to a facility or unit where students observe activities within the facility and/or the role of nursing within the facility, but where students do not participate in patient/client care.

(30) [(26)] Pass rate--the percentage of first-time candidates within one examination year who pass the National Council Licensure Examination for Registered Nurses NCLEX-RN® [NCLEX-RN™].

(31) [(27)] Philosophy/Mission--statement of concepts expressing fundamental values and beliefs regarding human nature as they apply to nursing education and practice and upon which the curriculum is based.

(32) [(28)] Professional Nursing Educational Programs--an educational unit [entity] that offers [the] courses and learning experiences preparing [that prepares ] graduates who are competent to practice safely and who are eligible to take the NCLEX-RN® [ NCLEX-RN™] examination, [and ] often referred to as a pre-licensure nursing program. Types of pre-licensure professional nursing programs:

(A) Associate degree nursing educational program--a program leading to an associate degree in nursing conducted by an educational unit in nursing within the structure of a college or university.

(B) Baccalaureate degree nursing educational program--a program leading to a bachelor's degree in nursing conducted by an educational unit in nursing which is a part of a senior college or university.

(C) Master's degree nursing educational program--a program leading to a master's degree, which is an individual's first professional degree in nursing, and conducted by an educational unit in nursing within the structure of a senior college or university.

(D) Diploma nursing educational program--a program leading to a diploma in nursing conducted by a single purpose school usually under the control of a hospital.

[(E) MEEP--a Multiple Entry-Exit Program which allows students to challenge the NCLEX-PN™ examination when they have completed sufficient course work in a professional nursing educational program that will meet all requirements for the examination.]

(33) Proprietary school--educational entity defined in Title 3, Texas Education Code, §132.0015 as "career school or college."

(34) [(29)] Program of study--the courses and learning experiences that constitute the requirements for completion of a professional pre-licensure nursing educational program (associate degree nursing educational program, baccalaureate degree nursing educational program, master's degree nursing educational program, or diploma nursing educational program).

(35) [(30)] Recommendation--a specific suggestion based upon program assessment indirectly related to the rules to which the program must respond but in a method of their choosing.

(36) [(31)] Requirement--mandatory criterion based upon program assessment directly related to the rules that must be addressed in the manner prescribed.

(37) [(32)] Shall--denotes mandatory requirements.

(38) [(33)] Staff--employees of the Texas Board of Nursing.

(39) [(34)] Supervision--immediate availability of a faculty member, clinical preceptor, or clinical teaching assistant to coordinate, direct, and observe first hand the practice of students.

(40) [(35)] Survey visit [Visit ]--an on-site visit to a professional nursing educational program by a Board representative. The purpose of the visit is to evaluate the program of learning by gathering data to determine whether the program is meeting the Board's requirements as specified in §§215.2 - 215.13 of this chapter (relating to Professional Nursing Education).

(41) [(36)] Systematic approach [ Approach]--the organized process in nursing that [which ] provides individualized, goal-directed nursing care by performing comprehensive nursing assessments regarding the health status of the client, making nursing diagnoses that serve as the basis for the strategy of care, developing a plan of care based on the assessment and nursing diagnosis, implementing nursing care, and evaluating the client's responses to nursing interventions.

(42) [(37)] Texas Higher Education Coordinating Board (THECB)--a state agency created by the Legislature to provide coordination for the Texas higher education system, institutions, and governing boards, through the efficient and effective utilization and concentration of all available resources and the elimination of costly duplication in program offerings, faculties, and physical plants (Texas Education Code, Title 3, Subtitle B, Chapter 61).

(43) [(38)] Texas Workforce Commission (TWC)--the state agency charged with overseeing and providing workforce development services to employers and job seekers of Texas (Texas Labor Code, Title 4, Subtitle B, Chapter 301).

§215.3.Program Development, Expansion, and Closure.

(a) New Programs.

(1) New nursing educational programs must be approved by the Texas Board of Nursing in order to operate in the State of Texas. The Texas Board of Nursing has established guidelines for the initial approval of schools of nursing or educational programs.

(2) [(1)] Proposal to establish a new professional pre-licensure nursing educational program.

(A) The proposal to establish a professional nursing educational program may be submitted by:

(i) a college or university accredited by an agency recognized by the Texas Higher Education Coordinating Board (THECB) [THECB ] or holding a certificate of authority from the THECB under provisions leading to accrediting of the institution in due course; or

(ii) a single-purpose school, such as a hospital, proposing a new diploma program.

(B) The new professional nursing educational program must be approved/licensed or deemed exempt by the appropriate Texas agency, [i.e., THECB, TWC,] before approval can be granted by the Texas Board of Nursing for the program to be implemented. The proposal to establish a new professional nursing educational program may be submitted to the Board at the same time that an application is submitted to THECB or TWC, but the proposal cannot be approved by the Board until such time as the proposed program is approved by THECB or TWC.

(C) The process to establish a new professional nursing educational program shall be initiated with the Board office one year prior to the anticipated start of the program.

(D) The individual actually writing the proposal for a new nursing educational program does not have to be a registered nurse or hold a Texas license or a privilege to practice nursing in Texas.

(i) The name and credentials of the author of the proposal must be included in the document.

(ii) At some point, and at least prior to the presentation of the proposal to the Board, an individual must be identified as the prospective dean/director and this individual must meet the rule requirements in §215.6 of this chapter (relating to Administration and Organization) to be a program director.

(iii) The prospective dean/program director must review/revise the proposal and agree with the components of the proposal as being representative of the proposed program that the individual will be responsible for administratively.

(E) Prior to presentation of the proposal to the Board for approval, a minimum of a prospective dean/director and at least one prospective nursing faculty member must be identified and these individuals must review/revise and approve the curriculum that is included with the proposal.

[(D) The proposal shall be completed under the direction/consultation of a registered nurse who meets the approved qualifications for a program director according to §215.6 of this chapter (relating to Administration and Organization).]

[(E) Sufficient nursing faculty with appropriate expertise shall be in place for development of the curriculum component of the program.]

(F) The proposal shall include information outlined in [applicable] Board guidelines.

(G) A proposal for a new diploma nursing educational program must include a written plan addressing the legislative mandate that all nursing diploma programs in Texas must have a process in place by 2015 to ensure that their graduates are entitled to receive a degree from a public or private institution of higher education accredited by an agency recognized by the THECB and, [.] at a minimum, entitle a graduate of the diploma program to receive an associate degree in nursing.

(H) After the proposal is submitted and reviewed, a preliminary survey visit shall be conducted by Board staff prior to presentation to the Board.

(I) The proposal shall be considered by the Board following a public hearing at a regularly scheduled meeting of the Board. The Board may approve the proposal and grant initial approval to the new program, may defer action on the proposal, or may deny further consideration of the proposal.

(J) The program shall not admit students until the Board approves the proposal and grants initial approval.

(K) Prior to presentation of the proposal to the Board, evidence of approval from the appropriate regulatory/funding agencies shall be provided.

(L) When [After] the proposal is submitted [approved], an initial approval fee shall be assessed per §223.1 of this title (relating to Fees).

(M) A proposal without action for one calendar year shall be inactivated.

(N) If the Board denies further consideration of a proposal, the educational unit in nursing within the structure of a school, including a college, university, or proprietary school (career school or college), or a hospital must wait a minimum of twelve calendar months from the date of the denial before submitting a new proposal to establish a professional pre-licensure nursing educational program.

(3) [(2)] Survey visits shall be conducted, as necessary, by staff until full approval status is granted.

(b) Extension Program/Campus.

(1) Only nursing educationalprograms that have full approval are eligible to initiate or modify an extension program/campus [programs].

(2) Instruction provided for the extension program/campus may include a variety of instructional methods, shall be congruent with the program's curriculum plan, and shall enable students to meet the goals, objectives, and competencies of the educational program and requirements of the Board as stated in §§215.2 - 215.13 of this chapter (relating to Professional Nursing Education).

(3) An approved professional nursing educational [A ] program intending to establish an extension program/campus that duplicates the main program's/campus' current curriculum and teaching resources shall:

(A) Notify the Board office at least four (4) months prior to implementation of extension programs by any approved program;

(B) Submit required information according to Board-approved guidelines; [and]

(C) Provide documentation to the Board of notification or approval from the controlling agency/governing institution, THECB, TWC and/or other regulatory/funding agencies, as applicable, at least four (4) months prior to implementation, as appropriate [to the Regional Council of the governing institution about plans for establishment of extension programs to the Board office at least four (4) months prior to implementation, as appropriate; and].

[(D) Provide evidence of approval from the THECB, TWC and/or other regulating/accrediting bodies, as applicable, to the Board four (4) months prior to implementation, as appropriate.]

(4) When the curriculum of the extension/campus deviates from the original program in any way, the proposed extension is viewed as a new program and Board guidelines for a new program apply.

(5) [(4)] Extension programs of professional pre-licensure nursing educational programs which have been closed may be reactivated by submitting notification of reactivation to the Board at least four (4) months prior to reactivation, using the Board guidelines for initiating an extension program.

(6) [(5)] A program intending to close an extension program shall:

(A) Notify the Board at least four (4) months prior to closure of the extension program; and

(B) Submit required information according to Board-approved guidelines including:

(i) reason for closing the program;

(ii) date of intended closure;

(iii) academic provisions for students; and

(iv) provisions made for access to and storage of vital school records.

(c) Transfer of Administrative Control by Controlling Agency/Governing Institution [Institutions]. The authorities of the controlling agency/governing institution shall notify the Board office in writing of an intent to transfer the administrative authority of the program. This notification shall follow Board guidelines.

(d) Closing a Program.

(1) When the decision to close a program which provides the entire program of study has been made, the director must notify the Board and submit a written plan for closure which includes the following:

(A) reason for closing the program;

(B) date of intended closure;

(C) academic provisions for students to complete the nursing educational program and teach-out arrangements have been approved by the appropriate Texas agency, (i.e., TWC, THECB, Texas Board of Nursing);

(D) provisions made for access to and safe storage of vital school records, including transcripts of all graduates; and

(E) methods to be used to maintain requirements and standards until the program closes.

(2) The program shall continue within standards until all students [classes, which are] enrolled in the nursing educational program at the time of the decision to close, have graduated. In the event this is not possible, a plan shall be developed whereby students may transfer to other approved programs.

(3) A program is deemed closed when the program has not enrolled students for a period of two years since the last graduating class or student enrollment has not occurred for a two-year period. Board-ordered enrollment suspensions may be an exception.

(e) Approval of a Nursing Educational Program Outside Texas' Jurisdiction to Conduct Clinical Learning Experiences in Texas.

(1) The nursing educational program outside Texas' jurisdiction seeking approval to conduct clinical learning experiences in Texas should initiate the process with the Texas Board of Nursing two to three months prior to the anticipated start of the clinical learning experiences in Texas.

(2) A written request and the required supporting documentation shall be submitted to the Board office following Board guidelines.

(3) Evidence that the program has been approved/licensed or deemed exempt from approval/licensure by the appropriate Texas agency, i.e., THECB, to conduct business in the State of Texas , must be obtained before approval can be granted by the Texas Board of Nursing for the program to conduct clinical learning experiences in Texas.

§215.4.Approval.

(a) The progressive designation of approval status is not implied by the order of the following listing. Approval status is based upon each program's performance and demonstrated compliance to the Board's requirements and responses to the Board's recommendations. Change from one status to another is based on NCLEX-RN® [ NCLEX-RN™] examination pass rates, compliance audits, survey visits, and other factors listed under subsection (b) of this section. Types of approval include:

(1) Initial Approval.

(A) Initial approval is written authorization by the Board for a new program to admit students and is granted if the program meets the requirements and addresses the recommendations issued by the Board.

(B) Student enrollment is determined by the Board and the specifics are included in the Board's initial approval letter. [Change from initial approval status to full approval status cannot occur until the program has met requirements and responded to all recommendations issued by the Board and the licensing examination result of the first graduating class is evaluated by the Board.]

(C) Change from initial approval status to full approval status cannot occur until the program has met requirements and responded to all recommendations issued by the Board and the licensing examination result of the first graduating class is evaluated by the Board.

(2) Full Approval.

(A) Full approval is granted by the Board to a professional pre-licensure nursing educational program that is in compliance with all Board requirements and has responded to all Board recommendations.

(B) Only programs with full approval status may initiate extension programs, grant faculty waivers and petition for faculty waivers.

(3) Full approval with warning is issued by the Board to a professional nursing educational program that is not meeting legal and educational requirements.

(A) A program issued a warning will receive written notification from the Board of the warning.

(B) The program is given a list of the deficiencies and a specified time in which to correct the deficiencies.

(4) Conditional Approval. Conditional approval is issued by the Board for a specified time to provide the program the opportunity to correct deficiencies.

(A) The program shall not admit students while on conditional status.

(B) The Board may establish specific criteria to be met in order for the program's conditional approval status to be removed.

(C) Depending upon the degree to which the Board's legal and educational requirements are met, the Board may change the approval status to full approval or full approval with warning, or may withdraw approval.

(5) Withdrawal of Approval. The Board may withdraw approval from a program which fails to meet legal and educational requirements within the specified time. The program shall be removed from the list of Board-approved professional nursing educational programs.

(6) A diploma program of study in Texas that leads to an initial license as a registered nurse under this chapter must have a process in place by 2015 to ensure that their graduates are entitled to receive a degree from a public or private institution of higher education accredited by an agency recognized by the THECB. At a minimum, a graduate of a diploma program will be entitled to receive an associate degree in nursing.

(b) Factors Jeopardizing Program Approval Status--Approval may be changed or withdrawn for any of the following reasons:

(1) deficiencies in compliance with the rule;

(2) utilization of students to meet staffing needs in health care facilities;

(3) noncompliance with school's stated philosophy/mission, program design, objectives/outcomes, and/or policies;

(4) continual failure to submit records and reports to the Board office within designated time frames;

(5) failure to provide sufficient variety and number of clinical learning opportunities for students to achieve stated objectives/outcomes;

(6) failure to comply with Board requirements or to respond to Board recommendations within the specified time;

(7) student enrollments without sufficient faculty, facilities and/or patient census;

(8) failure to maintain a 80% passing rate on the licensing examination by first-time candidates;

(9) failure of the program dean or director to document annually the currency of faculty licenses; or

(10) other activities or situations that demonstrate to the Board that a program is not meeting legal requirements and standards.

(c) Ongoing Approval Procedures. Approval status is determined biennially by the Board on the basis of the program's compliance audit, NCLEX-RN® [NCLEX-RN™] examination pass rate, and other pertinent data.

(1) Compliance Audit. Each approved professional nursing educational program shall submit a biennial audit regarding its compliance with the Board's legal and educational requirements.

(2) NCLEX-RN® [NCLEX-RN™] Pass Rates.

(A) Eighty percent (80%) of first-time candidates who complete the program of study are required to achieve a passing score on the NCLEX-RN® [NCLEX-RN™] examination.

(B) When the passing score of first-time candidates who complete the professional nursing educational program of study is less than 80% on the NCLEX-RN® [NCLEX-RN™] examination during the examination year, the nursing program shall submit a self-study report that evaluates factors which contributed to the graduates' performance on the NCLEX-RN® [ NCLEX-RN™] examination and a description of the corrective measures to be implemented. The report shall follow Board guidelines.

(C) A warning shall be issued to the program when the pass rate of first-time candidates, as described in subparagraph (A) of this paragraph [ subsection (c)(2)(A) of this section], is less than 80% for two consecutive examination years.

(D) A program shall be placed on conditional approval status if, within one examination year from the date of the warning, the performance of first-time candidates on the NCLEX-RN® [NCLEX-RN™ ] examination fails to be at least 80%, or the faculty fails to implement appropriate corrective measures.

(E) Approval may be withdrawn if the performance of first-time candidates fails to be at least 80% during the examination year following the date that the program is placed on conditional approval.

(F) A program issued a [placed on] warning or placed on conditional approval status may request a review of the program's approval status by the Board at a regularly scheduled meeting if the program's pass rate for first-time candidates during one examination year is at least 80%.

(3) Survey Visit. Each professional nursing educational program shall be visited at least every six years after full approval has been granted, unless accredited by a Board-recognized national nursing accrediting agency.

(A) The Board may authorize staff to conduct a survey visit at any time based upon established criteria.

(B) After a program is fully approved by the Board, a report from a Board-recognized national nursing accrediting agency regarding a program's accreditation status may be accepted in lieu of a Board survey visit.

(C) A written report of the survey visit, compliance audit, and NCLEX-RN® [NCLEX-RN™] examination pass rate shall be reviewed by the Board biennially at a regularly scheduled meeting.

(4) The Texas Board of Nursing will select one or more national nursing accrediting agencies, recognized by the United States Department of Education and determined by the Board to have standards equivalent to the Board's ongoing approval standards. Identified areas that are not equivalent to the Board's ongoing approval standards will be monitored by the Board on an ongoing basis.

(5) [(A)] The Texas Board of Nursing will periodically review the standards of the national nursing accrediting agencies following revisions of accreditation standards or revisions in Board requirements for validation of continuing equivalency.

(6) [(B)] The Texas Board of Nursing will deny or withdraw approval from a school of nursing or educational program that fails to:

(A) [(i)] meet the prescribed course of study or other standard under which it sought approval by the Board;

(B) [(ii)] meet or maintain voluntary accreditation, by a school of nursing or educational program approved by the Board as stated in paragraph (7) of this subsection [ subparagraph (C) of this paragraph], with the national nursing accrediting agency selected by the Board under which it was approved or sought approval by the Board; and

(C) [(iii)] maintain the approval of the state board of nursing of another state that the Board has determined has standards that are substantially equivalent to the Board's standards under which it was approved.

(7) [(C)] A school of nursing or educational program is considered approved by the Board and exempt from Board rules that require ongoing approval if the program:

(A) [(i)] is accredited and maintains voluntary accreditation through an approved national nursing accrediting agency that has been determined by the Board to have standards equivalent to the Board's ongoing approval standards; and

(B) [(ii)] maintains an acceptable pass rate, as determined by the Board, on the applicable licensing exam.

(8) [(D)] A school of nursing or educational program that fails to meet or maintain an acceptable pass rate, as determined by the Board, on applicable licensing examinations is subject to review by the Board.

(9) [(E)] A school of nursing or educational program, approved by the Board as stated in paragraph (7) of this subsection [ subparagraph (C) of this paragraph], that does not maintain voluntary accreditation through an approved national nursing accrediting agency that has been determined by the Board to have standards equivalent to the Board's ongoing approval standards is subject to review by the Board.

(10) [(F)] The Board may assist the school or program in its effort to achieve compliance with the Board's standards.

(11) [(G)] A school or program from which approval has been withdrawn may reapply for approval.

(12) [(H)] A school of nursing or educational program accredited by an agency recognized by the Board shall:

(A) [(i)] provide the board with copies of any reports submitted to or received from the national nursing accrediting agency selected by the Board within three (3) months of receipt of official reports;

(B) [(ii)] notify the Board of any change in accreditation status within two (2) weeks following receipt of official notification letter; and

(C) [(iii)] provide other information required by the Board as necessary to evaluate and establish nursing education and workforce policy in this state.

(d) Notice of a program's approval status shall be sent to the director, chief administrative officer of the controlling agency/ governing institution, and others as determined by the Board.

§215.5.Philosophy/Mission and Objectives/Outcomes.

(a) The philosophy/mission and objectives/outcomes of the professional nursing educational [education] program shall be consistent with the philosophy/mission of the governing institution. They shall reflect the diversity of the community served and shall be consistent with professional, educational, and ethical standards of nursing.

(b) Program objectives/outcomes derived from the philosophy/mission shall reflect the Differentiated Entry Level Competencies [ Compentencies] of Graduates of Texas Nursing Programs, Vocational (VN), Diploma/Associate Degree (Dip/ADN), Baccalaureate (BSN), September 2002 (DELC).

(c) Clinical objective/outcomes shall be stated in behavioral terms and shall serve as a mechanism for evaluating student progression.

(d) The conceptual framework shall provide the organization of major concepts from the philosophy/mission of the program that provides the underlying structure or theme of the curriculum and facilitates the achievement of the program objectives/outcomes.

(e) The faculty shall periodically review the philosophy/mission and objectives/outcomes and shall make appropriate revisions to maintain currency.

§215.6.Administration and Organization.

(a) The controlling agency/governing institution of a professional nursing school/educational program, not including a diploma program, must be accredited by an agency recognized by the Texas Higher Education Coordinating Board (THECB) [THECB] or hold a certificate of authority from the THECB under provisions leading to accreditation of the institution in due course.

(b) There shall be an organizational chart which demonstrates the relationship of the professional pre-licensure nursing educational program to the controlling agency/governing institution, and indicates lines of responsibility and authority.

(c) In colleges and universities, the nursing educational program shall have comparable status with other academic units within the controlling agency/governing institution in such areas as budgetary authority, rank, promotion, tenure, leave, benefits and professional development.

(d) Salaries shall be adequate to recruit, employ, and retain sufficient qualified nursing faculty members with graduate preparation and expertise necessary for students to meet program goals.

(e) The controlling agency/governing institution shall provide financial support and resources needed to operate a nursing educational program which meets the legal and educational requirements of the Board and fosters achievement of program goals. The financial resources shall support adequate educational facilities, equipment and qualified administrative and instructional personnel.

(f) Each professional nursing educational program shall be administered by a qualified individual who is accountable for the planning, implementation and evaluation of the professional nursing educational program. The dean or director shall:

(1) hold a current license or privilege to practice as a registered nurse in the state of Texas;

(2) hold a master's degree or a doctorate degree in nursing;

(3) hold a doctoral degree, if administering a baccalaureate or master's degree program;

(4) have a minimum of three years teaching experience in a professional nursing educational program;

(5) have demonstrated knowledge, skills and abilities in administration within a professional nursing educational program; and

(6) not carry a teaching load of more than three clock hours per week if required to teach.

(g) When the dean/director [dean or director ] of the program changes, the dean/director [ dean or director qualification form] shall submit to the Board office written notification of the change indicating the final date of employment.

(1) A new Dean/Director/Coordinator Qualification Form [dean or director ] shall be submitted to the office by the controlling agency/ governing institution for approval prior to the appointment of a new dean/director or interim dean/director [dean or director ] in an existing program or a new nursing educational program, according to Board guidelines.

(2) A vitae and all official transcripts shall be submitted with the new Dean/Director/Coordinator Qualification Form according to Board guidelines [dean or director qualification form].

(3) If an interim dean/director [dean or director ] is appointed to fill the position, this appointment shall not exceed one year.

(4) In a fully approved professional nursing educational program, if the individual to be appointed as dean/director or interim dean/director [dean or director] does not meet the requirements for dean/director [dean or director ] as specified in subsection (f) of this section, the administration is permitted to petition for a waiver of the Board's requirements, according to Board guidelines, prior to the appointment of said individual.

(h) A newly appointed dean/director or interim dean/director [ dean, director, interim dean, or interim director ] of a professional nursing educational program shall attend the next scheduled education workshop [orientation ] provided by the Board related to the education rules and the role and responsibilities of newly appointed deans/directors.

(i) The dean/director shall have the authority to direct the nursing educational program in all its phases, including approval of teaching staff, selection of appropriate clinical sites, admission, progression, probation, dismissal of students, and enforcement of student policies. Additional responsibilities include, but are not limited to:

(1) providing evidence of faculty expertise and knowledge to teach curriculum content;

(2) verifying student's completion of program requirements;

(3) completing and submitting the Texas Board of Nursing Affidavit of Graduation; and

(4) completing and submitting the Texas Board of Nursing Educational Program Information Survey (NEPIS) and Compliance Audit (CANEP) by the required dates.

§215.7.Faculty [Qualifications and Faculty Organization].

(a) There shall be written personnel policies for nursing faculty that are in keeping with accepted educational standards and are consistent with those of the controlling agency/ governing institution.

(1) Nursing policies that [Policies which ] differ from those of the controlling agency/governing institution shall be consistent with nursing unit mission and goals (philosophy and outcomes).

(2) Written policies concerning workload for the dean or director shall allow for sufficient time for administrative responsibilities consistent with §215.6 of this chapter (relating to Administration and Organization).

(3) Faculty policies shall include, but not be limited to: qualifications, responsibilities, performance evaluation criteria, and terms of employment.

(4) Written policies for nursing faculty workload shall allow sufficient time for faculty to accomplish those activities related to the teaching-learning process.

(5) Position descriptions for the dean/director and nursing faculty outlining their responsibilities directly related to the nursing program shall be included in the nursing faculty handbook.

(6) Written policies for nursing faculty shall include: plans for faculty orientation to the institution and the nursing program, faculty development, and evaluation of faculty.

(A) Orientation of new nursing faculty members shall be initiated at the onset of employment.

(B) A plan for nursing faculty development shall be offered to encourage and assist faculty members to meet the nursing program's needs as well as individual faculty members' professional development needs.

(C) A variety of means shall be used to evaluate faculty performance such as self, student, peer and administrative evaluation.

[(1) Policies concerning workload for faculty and the dean or director shall be in writing.]

[(2) Sufficient time shall be provided faculty to accomplish those activities related to the teaching-learning process.]

[(3) Teaching activities shall be coordinated among full-time, part-time faculty, clinical preceptors and clinical teaching assistants.]

(b) A professional nursing educational [education ] program shall employ sufficient faculty members with graduate preparation and expertise necessary to enable the students to meet the program goals. The number of faculty members shall be determined by such factors as:

(1) The number and level of students enrolled;

(2) The curriculum plan;

(3) Activities and responsibilities required of faculty;

(4) The number and geographic locations of affiliating agencies and clinical practice settings; and

(5) The level of care and acuity of clients.

(c) Faculty Qualifications and Responsibilities.

(1) Documentation of faculty qualifications shall be included in the official files of the programs.

(2) Each nurse faculty member shall:

(A) Hold a current license or privilege to practice as a registered nurse in the State of Texas;

(B) Show evidence of teaching abilities and maintaining current knowledge, clinical expertise, and safety in subject area of teaching responsibility;

(C) Hold a master's degree or doctorate degree, preferably in nursing.

(D) A nurse faculty member holding a master's degree or doctorate degree in a discipline other than nursing shall hold a bachelor's degree in nursing from an approved or accredited baccalaureate program in nursing; and

(i) if teaching in a diploma or associate degree nursing program, shall have at least six graduate semester hours [of graduate level content ] in nursing appropriate to assigned teaching responsibilities, or

(ii) if teaching in a baccalaureate level program, shall have at least 12 graduate semester hours [of graduate-level content] in nursing appropriate to assigned teaching responsibilities.

(d) Faculty Waivers.

(1) [(E) ] In fully approved programs, if an individual to be appointed as faculty member does not meet the requirements for faculty as specified in [this] subsection (c) of this section, the dean or director is permitted to waive the Board's requirements, if the program and prospective faculty member meet the following criteria and after notification to the Board of the intent to waive the Board's faculty requirements for a temporary time period not to exceed one year:

(2) [(i)] Minimum [minimum ] program criteria:

(A) [(I)] program's NCLEX-RN® Examination pass rate for the preceding exam year was 80% or above;

(B) [(II)] total number of faculty waivers at program shall not exceed 10% of the total number of nursing faculty; and

(3) [(ii)] Minimum [minimum ] criteria for prospective faculty member:

(A) [(I)] holds a current license or privilege to practice as a registered nurse in the State of Texas;

(B) [(II)] has at least two years in the last four years of nursing practice experience in the anticipated subject area of teaching responsibility;

(C) [(III)] has earned a bachelor's degree in nursing or completed, as part of a nursing education program culminating in a master's or doctorate degree in nursing, the course work equivalent to the course work required for a bachelor's degree in nursing; and either

(i) [(-a-)] is currently enrolled in a master's nursing education program and has earned a minimum of 50% of the required credits toward the master's degree in nursing, excluding thesis or professional paper; or

(ii) [(-b-)] holds a master's degree in another field and has a documented plan to complete, within a designated time frame, the required number of graduate semester hours in nursing [level nursing credits ] appropriate to the anticipated subject area of teaching responsibility, six [6] graduate semester hours in nursing [level nursing credits ] to teach in a diploma or associate degree nursing education program or 12 graduate semester hours in nursing [ level nursing credits] to teach in a baccalaureate degree or entry-level master's degree in nursing education program.

(4) [(iii)] When [when ] the program does not meet the minimum program criteria or the prospective faculty member does not meet the minimum criteria for a faculty member:

(A) [(I)] a petition for a waiver shall be submitted to the Board and be reviewed by the members of the Education Liaison Committee (ELC) for recommendation regarding approval and referred to the full Board for ratification; or

(B) [(II)] a petition for an emergency waiver may be submitted to the Board staff for approval when a vacancy occurs because a faculty member fails to report as planned, i.e., sudden illness or death of a faculty member, or there is an unexpected resignation, or qualified applicants/prospective faculty are not available.

(5) [(iv)] A [a] waiver is valid for up to one year.

(6) [(v)] The [the] director or coordinator shall submit a sworn (notarized) notification of waiver to the Board.

(7) [(vi)] If [if ] an extension of the waiver is needed, the director or coordinator shall petition the Board for an extension of the original waiver.

[(F) In baccalaureate programs, an increasing number of faculty members should hold doctoral degrees appropriate to their responsibilities.]

[(2) All nursing faculty, as well as non-nursing faculty, who teach theory nursing courses, e.g., pathophysiology, pharmacology, research, management and statistics, shall have graduate level educational preparation verified by the program dean or director as appropriate to these areas of responsibility.]

(e) [(3)] Non-nursing faculty are exempt from meeting the faculty qualifications as long as the teaching assignments are not nursing content or clinical nursing courses [ assigned to teach didactic nursing courses shall be required to co-teach with nursing faculty in order to meet nursing course objectives].

(f) All nursing faculty, as well as non-nursing faculty, who teach non-clinical nursing courses that are part of the nursing curriculum, e.g., biological, physical, social, behavioral and nursing sciences, including pathophysiology, pharmacology, research, nutrition, human growth and development, management, and statistics, shall have sufficient graduate level educational preparation verified by the program dean or director as appropriate to these areas of responsibility.

(g) Non-nursing faculty assigned to teach didactic nursing content shall be required to co-teach with nursing faculty in order to meet nursing course objectives.

(h) Teaching assignments shall be commensurate with the faculty member's education and experience in nursing.

(i) Faculty shall be responsible for:

(1) supervision of students in clinical learning experiences;

(2) all initial nursing procedures in the clinical area and ascertain that the student is competent before allowing the student to perform an actual nursing procedure independently;

(3) developing, implementing, and evaluating curriculum; and

(4) participating in the development, implementation, and enforcement of standards/policies for admission, progression, probation, and dismissal of students, and participation in academic guidance and counseling.

(j) Teaching activities shall be coordinated among full-time faculty, part-time faculty, clinical preceptors and clinical teaching assistants.

(k) There shall be a minimum of one full-time nursing instructor for the program.

>(l) A dean/director without major teaching or clinical responsibilities shall not be considered a full-time instructor for purposes of meeting the Board's requirements related to having a sufficient number of nursing faculty for a nursing educational program.

(m) Substitute faculty may be employed to meet emergent program needs. Substitute faculty shall meet qualifications as specified in subsection (c)(2) of this section.

(n) Faculty Organization:

(1) The faculty shall be organized with written policies and procedures and/or bylaws to guide the faculty and program's activities, including processes for enforcement of written student policies.

(2) The faculty shall meet regularly and function in such a manner that all members participate in planning, implementing and evaluating the nursing program. Such participation includes, but is not limited to the initiation and/or change in program policies, personnel policies, curriculum, utilization of affiliating agencies, and program evaluation.

(A) Committees necessary to carry out the functions of the program shall be established with duties and membership of each committee clearly defined in writing.

(B) Minutes of faculty organization and meetings shall document the reasons for actions and the decisions of the faculty and shall be available for reference.

(C) Part-time faculty may participate in all aspects of the program. Clear lines of communication of program policies, objectives and evaluative criteria shall be included in policies for part-time faculty.

[(d) Teaching assignments shall be commensurate with the faculty member's education and experience in nursing.]

[(e) The faculty shall be organized with written policies and procedures and/or bylaws to guide the faculty and program's activities.]

[(f) The faculty shall meet regularly and function in such a manner that all members participate in planning, implementing and evaluating the nursing program. Such participation includes, but is not limited to the initiation and/or change of academic policies, personnel policies, curriculum, utilization of affiliating agencies, and program evaluation.]

[(1) Committees necessary to carry out the functions of the program shall be established with duties and membership of each committee clearly defined in writing.]

[(2) Minutes of faculty organization and committee meetings shall document the reasons for actions and the decisions of the faculty and shall be available for reference.]

[(g) There shall be written plans for faculty orientation, development, and evaluation.]

[(1) Orientation of new faculty members shall be initiated at the onset of employment.]

[(2) A program of faculty development shall be offered to encourage and assist faculty members to meet the nursing program's needs as well as individual faculty member's professional development needs.]

[(3) A variety of means shall be used to evaluate faculty performance such as self, student, peer and administrative evaluation.]

§215.8.Students.

(a) The number of students admitted to the program shall be determined by the number of qualified faculty, adequate educational facilities and resources, and the availability of appropriate clinical learning experiences for students. [Students shall have mechanisms for input into the development of academic policies and procedures, curriculum planning, and evaluation of teaching effectiveness. ]

(b) Individuals enrolled in approved professional nursing educational programs preparing students for initial licensure shall be provided verbal and written information regarding conditions that may disqualify graduates from licensure and of their rights to petition the Board for a Declaratory Order of Eligibility. Required eligibility information includes: [The number of students admitted to the program shall be determined by the number of qualified faculty, adequate educational facilities and resources, and the availability of appropriate clinical learning experiences for students.]

(1) Texas Occupations Code §§301.252, 301.257 and 301.452 - 301.469; and

(2) Sections 213.27 - 213.30 of this title (relating to Good Professional Character, Licensure of Persons with Criminal Offenses, Criteria and Procedure Regarding Intemperate Use and Lack of Fitness in Eligibility and Disciplinary Matters, Declaratory Order of Eligibility for Licensure).

(c) The professional nursing educational program shall maintain written receipt of eligibility notification for up to six months after the enrolled individual completes the nursing educational program or permanently withdraws from the nursing educational program.

(d) [(c)] The program shall have well-defined written nursing student policies based upon statutory and Board requirements, including nursing student admission, dismissal, progression, and graduation policies that shall be developed, implemented and enforced. [Written policies regarding nursing student admission and progression shall be developed and implemented]

(1) Student policies shall be in accordance with the requirements of applicable federal and state agencies [ that the governing institution must meet to maintain accreditation].

(2) Nursing student [Student] policies which differ from those of the governing institution shall be in writing and shall be made available to faculty and students.

(e) Reasons for dismissal shall be clearly stated in written nursing student policies and shall include any demonstration of the following, including, but not limited to:

(1) evidence of actual or potential harm to patients, clients, or the public;

(2) criminal behavior whether violent or non-violent, directed against persons, property or public order and decency;

(3) intemperate use, abuse of drugs or alcohol, or diagnosis of or treatment for chemical dependency, mental illness, or diminished mental capacity; and

(4) the lack of good professional character as evidenced by a single incident or an integrated pattern of personal, academic and/or occupational behaviors which, in the judgment of the Board, indicates that an individual is unable to consistently conform his or her conduct to the requirements of the Nursing Practice Act, the Board's rules and regulations, and generally accepted standards of nursing practice including, but not limited to, behaviors indicating honesty, accountability, trustworthiness, reliability, and integrity.

(f) [(d)] Policies shall facilitate mobility/articulation, be consistent with acceptable educational standards, and be available to students and faculty.

(g) Student policies shall be furnished manually or electronically to all students at the beginning of the students' enrollment in the nursing educational program.

(1) The program shall maintain a signed receipt of student policies in all students' records.

(2) It is the responsibility of the program and the nursing faculty to define and enforce nursing student policies.

(h) Acceptance of transfer students and evaluation of allowable credit for advanced placement remains at the discretion of the director or coordinator of the program and the controlling agency/governing institution. Upon completing the receiving program's requirements, the individual is considered to be a graduate of the program.

(i) Students shall have mechanisms for input into the development of academic policies and procedures, curriculum planning, and evaluation of teaching effectiveness.

(j) Students shall have the opportunity to evaluate faculty, courses, and learning resources and these evaluations shall be documented.

[(e) Students shall have the opportunity to evaluate faculty, courses, and learning resources and these evaluations shall be documented.]

[(f) Individuals enrolled in approved professional nursing educational programs preparing students for initial licensure shall be provided verbal and written information regarding conditions that may disqualify graduates from licensure and of their rights to petition the Board for a Declaratory Order of Eligibility. Required eligibility information includes:]

[(1) Texas Occupations Code §§301.252, 301.257 and 301.452 - .469; and]

[(2) Sections 213.27 - 213.30 of the Texas Administrative Code (relating to Good Professional Character, Licensure of Persons with Criminal Convictions, Criteria and Procedure Regarding Intemperate Use and Lack of Fitness in Eligibility and Disciplinary Matters, Declaratory Order of Eligibility for Licensure).]

[(g) The professional nursing education program shall maintain written receipt of eligibility notification for up to six months after the individual enrolled completes the nursing education program or permanently withdraws from the nursing education program.]

§215.9.Program of Study.

(a) The program of study shall include both didactic and clinical learning experiences and shall be:

(1) at least the equivalent of two academic years and shall not exceed four calendar years;

(2) planned, implemented, and evaluated by the faculty;

(3) based on the philosophy/mission and objectives/outcomes;

(4) organized logically, sequenced appropriately;

(5) based on sound educational principles;

(6) designed to prepare graduates to practice according to the Standards of Nursing Practice as set forth in the Board's Rules and Regulations; [and]

(7) designed and implemented to prepare students to demonstrate the Differentiated Entry Level Competencies [ Compentencies] of Graduates of Texas Nursing Programs, Vocational (VN), Diploma/Associate Degree (Dip/ADN), Baccalaureate (BSN), September 2002 (DELC); and

(8) designed to teach students to use a systematic approach to clinical decision making and safe patient care.

(b) The faculty shall be responsible for the development, implementation and evaluation of the curriculum based upon the following guidelines: [There shall be a reasonable balance between non-nursing courses and nursing courses which are offered in a supportive sequence with rationale and are clearly appropriate for collegiate study.]

(1) There shall be a reasonable balance between non-nursing courses and nursing courses which are offered in a supportive sequence with rationale and are clearly appropriate for collegiate study.

(2) Instruction shall be provided in nursing roles; biological, physical, social, behavioral, and nursing sciences, including body structure and function, microbiology, pharmacology, nutrition, signs of emotional health, human growth and development; and nursing skills.

(c) Instruction shall include, but not be limited to, organized student/faculty interactive learning activities, formal lecture, audiovisual presentations, simulated laboratory instruction, and actual patient care clinical learning experiences. [There shall be a rationale for the ratio of contact hours assigned to classroom and clinical learning experiences. The recommended ratio is three contact hours of clinical learning experiences for each contact hour of classroom instruction.]

(1) Class hours shall include actual hours of classroom instruction in nursing and non-nursing Board-required courses/content;

(2) Laboratory activities/instruction may be counted as either classroom or laboratory hours for the purpose of calculating the hours in the curriculum;

(3) Clinical practice shall include actual hours of practice in clinical areas, clinical conferences, and simulated lab experiences, if counted as clinical hours for the purpose of calculating the hours in the curriculum; and

(4) Clinical hours shall be sufficient to meet program of study requirements. There shall be a rationale for the ratio of contact hours assigned to classroom and clinical learning experiences. The recommended ratio is one contact hour of didactic to three contract hours of associated clinical learning experiences (1:3), but could be expanded to a 1:4, 1:5, or 1:6 ratio depending on the type of clinical learning experience.

(d) The program of study should facilitate articulation among programs.

(e) The program of study shall include, but not be limited to, the following areas:

(1) non-nursing courses, clearly appropriate for collegiate study, offered in a supportive sequence.

(2) nursing courses which include didactic and clinical learning experiences in the four content areas, medical-surgical, maternal/child health, pediatrics, and mental health nursing that teach students to use a systematic approach to clinical decision making and prepare students to safely practice professional nursing through the promotion, prevention, rehabilitation, maintenance, and restoration of the health of individuals of all ages.

(A) Course content shall be appropriate to the role expectations of the graduate.

(B) Professional values including ethics, safety, diversity, and confidentiality shall be addressed.

(C) The Nursing Practice Act, Standards of Nursing Practice, Unprofessional Conduct Rules, Delegation Rules, and other laws and regulations which pertain to various practice settings shall be addressed.

(3) Nursing courses shall prepare students to recognize and analyze health care needs, select and apply relevant knowledge and appropriate methods for meeting the heath care needs of individuals and families, and evaluate the effectiveness of the nursing care.

(4) Baccalaureate and entry-level master's degree programs in nursing shall include learning activities in basic research and management/leadership, and didactic and clinical learning experiences in community health nursing.

(f) The selection and organization of the learning experiences in the curriculum shall provide continuity, sequence, and integration of learning.

(1) [(f)] The learning experiences shall provide for progressive development of values, knowledge, judgment, and skills.

(2) [(1)] Didactic learning experiences shall be provided either prior to or concurrent (at the same time) with the related clinical learning experiences.

(3) [(2)] Clinical learning experiences shall be sufficient in quantity and quality to provide opportunities for students to achieve the stated outcomes.

(4) [(3)] Students shall have sufficient opportunities in simulated or clinical settings to develop manual technical skills, using contemporary technologies, essential for safe, effective nursing practice.

(5) [(4)] Learning opportunities shall assist students to develop communication and interpersonal relationship skills.

(g) Course content shall be appropriate to the role expectations of the graduate.

(1) Professional values, including ethics, safety, diversity, and confidentiality shall be addressed.

(2) The Nursing Practice Act, Standards of Nursing Practice, Unprofessional Conduct Rules, and other laws and regulations which pertain to various practice settings shall be addressed.

(3) The curriculum plan, including course outlines, shall be kept current and available to faculty and Board representatives.

(h) [(g)] Faculty shall develop and implement evaluation methods and tools to measure progression of students' cognitive, affective and psychomotor achievements in course/clinical objectives, according to Board guidelines.

(i) [(h)] Curriculum changes shall be developed by the faculty according to Board standards and shall include information outlined in the Board guidelines. The two types of curriculum changes are:

(1) Minor curriculum changes not requiring prior Board staff approval, and may include:

(A) Editorial [editorial] updates of philosophy/mission and objectives/outcomes; or

(B) Redistribution [redistribution] of course content or course hours.

(2) Major curriculum changes requiring Board staff approval prior to implementation, including:

(A) Change [changes] in program philosophy/mission and objectives/outcomes which result in a reorganization or re-conceptualization of the entire curriculum, including but not limited to, changing from a block to an integrated curriculum.

(B) The [the] addition of transition course(s), tracks/alternative programs of study, including MEEP, that provide educational mobility.

(C) Mobility [mobility] programs desiring to establish a generic program are treated as a new program and the appropriate proposal should be developed.

(j) Documentation of controlling agency/governing institution approval, and approval from the Texas Workforce Commission (TWC) or the Texas Higher Education Coordinating Board (THECB) if approved/licensed by the TWC or THECB, must be provided to the Board prior to implementation of changes, as appropriate.

(k) Nursing educational programs that have full approval status and are undergoing major curriculum changes shall submit an abbreviated proposal, as outlined in Board guidelines, to the Board office for approval at least four (4) months prior to implementation. The abbreviated proposal shall contain at least the following:

(1) new and old philosophy/mission, major concepts, program objectives/outcomes, course objectives/outcomes;

(2) new and old curriculum plans;

(3) clinical evaluation tools for each clinical course; and

(4) additional information, as requested, in order to provide clarity for Board staff.

(l) Nursing educational programs not having full approval status, but proposing a major curriculum change, shall submit a full curriculum change proposal, as outlined in Board guidelines, to the Board office and meet the requirements as outlined in subsection (i) of this section.

(m) All nursing educational programs implementing a curriculum change shall submit an evaluation of the outcomes of the implemented curriculum change through the first graduating class under the new curriculum.

[(i) All programs implementing a curriculum change shall provide an evaluation of the outcomes of these changes and submit with the Annual Report through the first graduating class.]

[(j) Documentation of Governing Institution approval or Texas Higher Education Coordinating Board approval must be provided to the Board prior to implementation of changes, as appropriate.]

[(k) Nursing educational programs that have full approval and are undergoing major curriculum changes shall submit an abbreviated proposal to the office for approval at least four (4) months prior to implementation. The abbreviated proposal shall contain at least the following:]

[(1) new and old philosophy/mission, major concepts, program objectives/outcomes, course objectives/outcomes;]

[(2) new and old curriculum plans;]

[(3) clinical evaluation tools for each clinical course; and]

[(4) additional information as requested in order to provide clarity for Board staff.]

[(l) Nursing education programs not having full approval but proposing a major curriculum change shall submit a full curriculum change proposal and meet the requirements as outlined in §215.9(h).]

§215.10.[Management of] Clinical Learning Experiences [and Resources].

(a) Faculty [In all cases faculty] shall be responsible and accountable for managing clinical learning experiences and observational experiences of students.

(b) Faculty shall develop criteria for the selection of affiliating agencies/clinical facilities or clinical practice settings which address safety and the need for students to achieve the program outcomes (goals) and course objectives through the practice of nursing care or observational experiences. Consideration of selection of a clinical site shall include:

(1) client census in sufficient numbers to meet the clinical objectives/outcomes of the program/courses; and

(2) evidence of collaborative arrangements for scheduling clinical rotations with those facilities that support multiple nursing programs.

(c) Faculty shall select and evaluate affiliating agencies/clinical facilities or clinical practice settings which provide students with opportunities to achieve the goals of the program.

(1) Written agreements between the program and the affiliating agencies shall specify the responsibilities of the program to the agency and the responsibilities of the agency to the program.

(2) Agreements shall be reviewed periodically and include provisions for adequate notice of termination.

(3) Affiliation agreements are optional for those clinical experiences which are observation only.

(d) The faculty member shall be responsible for the supervision of students in clinical learning experiences.

(e) Clinical learning experiences shall include the administration of medications, health promotion and preventive aspects, nursing care of persons throughout the life span with acute and chronic illnesses, and rehabilitative care.

(1) Students shall participate in instructor supervised patient teaching.

(2) Students shall also be provided opportunities for participation in clinical conferences.

(3) Simulated laboratory experiences may also be utilized as a teaching strategy in classroom and clinical settings to meet objectives and may be counted as either classroom or clinical hours for the purpose of calculating the hours in the curriculum.

(f) Faculty shall be responsible for student clinical practice evaluations. Clinical practice evaluations shall be correlated with level and/or course objectives and shall include a minimum of a formative and summative evaluation for each clinical in the curriculum.

(g) [(e)] The following ratios only apply to clinical learning experiences involving direct patient care:

(1) When a faculty member is the only person officially responsible for a clinical group, the group shall total no more than ten (10) students.

(2) Patient safety shall be a priority and may mandate lower ratios, as appropriate.

(3) The faculty member shall supervise that group in only one facility at a time, unless some portion or all of the clinical group are assigned to observational experiences in additional settings.

(4) [(2)] Direct faculty supervision is not required for an observational experience.

(h) [(f)] Clinical preceptors may be used to enhance clinical learning experiences after a student has received clinical and didactic instruction in all basic areas of nursing or within a course after a student has received clinical and didactic instruction in the basic areas of nursing for that course or specific learning experience.

(1) In courses which use clinical preceptors for a portion of clinical learning experiences, faculty shall have no more than twelve (12) students in a clinical group.

(2) In a course which uses clinical preceptors as the sole method of student instruction and supervision in clinical settings, faculty shall coordinate the preceptorship for no more than twenty-four (24) students.

(3) The preceptor may supervise student clinical learning experiences without the physical presence of the faculty member in the affiliating agency or clinical practice setting.

(4) The preceptor shall be responsible for the clinical learning experiences of no more than two (2) students at a time per clinical group.

(i) [(g)] Clinical teaching assistants may assist qualified, experienced faculty with clinical learning experiences.

(1) In clinical learning experiences where a faculty member is supported by a clinical teaching assistant, the ratio of faculty to students shall not exceed two (2) to fifteen (15) (one faculty plus one clinical teaching assistant to fifteen students).

(2) Clinical teaching assistants shall supervise student clinical learning experiences only when the qualified and experienced faculty member is physically present in the affiliating agency or alternative practice setting.

(j) [(h)] When faculty use clinical preceptors or clinical teaching assistants to enhance clinical learning experiences and to assist faculty in the clinical supervision of students the following applies:

(1) Faculty shall develop written criteria for the selection of clinical preceptors and clinical teaching assistants.

(2) When clinical preceptors or clinical teaching assistants are used, written agreements between the professional nursing educational [education ] program, clinical preceptor or clinical teaching assistant, and the affiliating agency, when applicable, shall delineate the functions and responsibilities of the parties involved.

(3) Faculty shall be readily available to students and clinical preceptors or clinical teaching assistants during clinical learning experiences.

(4) The designated faculty member shall meet periodically with the clinical preceptors or clinical teaching assistants and student(s) for the purpose of monitoring and evaluating learning experiences.

(5) Written clinical objectives shall be shared with the clinical preceptors or clinical teaching assistants prior to or concurrent with the experience.

(6) Clinical preceptors shall have the following qualifications:

(A) competence in designated areas of practice;

(B) philosophy of health care congruent with that of the nursing program; and

(C) current licensure or privilege to practice as a registered nurse in the State of Texas; or

(D) if not a registered nurse, a current license in Texas as a health care professional with a minimum of a bachelor's degree in that field.

(7) When acting as a clinical teaching assistant, the RN shall not be responsible for other staff duties, such as supervising other personnel and/or patient care.

(8) Clinical teaching assistants shall meet the following criteria:

(A) hold a current license or privilege to practice as a registered nurse in the State of Texas; and

(B) have the clinical expertise to function effectively and safely in the designated area of teaching.

§215.11.Facilities, Resources, and Services.

(a) The controlling agency/governing institution shall be responsible for providing:

(1) educational facilities,

(2) resources, and

(3) services which support the effective development and implementation of the nursing educational [education] program.

(b) An appropriately equipped skills laboratory shall be provided to accommodate maximum number of students allowed for the program.

(1) The laboratory shall be equipped with hot and cold running water.

(2) The laboratory shall adequate storage for equipment.

(c) The dean/director and faculty shall have adequate secretarial and clerical assistance to meet the needs of the program.

(d) The physical facilities shall be adequate to meet the needs of the program in relation to the size of the faculty and the student body.

(1) The dean/director shall have a private office.

(2) Faculty offices shall be conveniently located and adequate in number and size to provide faculty with privacy for conferences with students and uninterrupted work.

(3) Space for clerical staff, records, files, and equipment shall be adequate.

(4) There shall be mechanisms which provide for the security of sensitive materials, such as examinations and health records.

(5) Classrooms, laboratories, and conference rooms shall be conducive to learning and adequate in number, size, and type for the number of students and the educational purposes for which the rooms are used.

(6) Teaching aids shall be provided to meet the objectives/outcomes of the program.

(7) Adequate restrooms and lounges shall be provided convenient to the classroom.

(e) The learning resources, library, and departmental holdings shall be current, use contemporary technology appropriate for the level of the curriculum, and be sufficient for the size of the student body and the needs of the faculty.

(1) Provisions shall be made for accessibility, availability, and timely delivery of information resources.

(2) Facilities and policies shall promote effective use, i.e. environment, accessibility, and hours of operation.

[(b) The dean or director and faculty shall have adequate secretarial and clerical assistance to meet the needs of the program.]

[(c) The physical facilities shall be adequate to meet the needs of the program in relation to the size of the faculty and the student body.]

[(1) The dean or director shall have a private office.]

[(2) Faculty offices shall be conveniently located and adequate in number and size to provide faculty with privacy for conferences with students and uninterrupted work.]

[(3) Space for clerical staff, records, files, and equipment shall be adequate.]

[(4) There shall be mechanisms which provide for the security of sensitive materials, such as examinations and health records.]

[(5) Classrooms, laboratories, and conference rooms shall be conducive to learning and adequate in number, size, and type for the number of students and the educational purposes for which the rooms are used.]

[(d) The learning resources, library, and departmental holdings shall be current, use contemporary technology appropriate for the level of the curriculum, and be sufficient for the size of the student body and the needs of the faculty.]

[(1) Provisions shall be made for accessibility, availability, and timely delivery of information resources.]

[(2) Facilities and policies shall promote effective use, i.e. environment, accessibility, and hours of operation.]

§215.12.Records and Reports.

(a) Accurate and current records shall be maintained for a minimum of two years in a confidential manner and be accessible to appropriate parties, including Board representatives. These records shall include, but are not limited to:

(1) records of current students , including the student's application and required admission documentation, evidence of student's ability to meet objectives/outcomes of the program, final clinical practice evaluations, signed receipt of written student policies furnished by manual and/or electronic means, evidence of student receipt of the Texas Board of Nursing license eligibility information as specifically outlined in §215.8(b) of this chapter (relating to Students), and the statement of withdrawal from the program, if applicable;

[(2) transcripts/permanent record cards of graduates;]

(2) [(3)] faculty records;

(3) [(4)] administrative records, which include minutes of faculty meetings for the past three years, and school catalogs;

(4) [(5)] the current program of study and curriculum including mission and goals (philosophy and outcomes), and course outlines;

(5) [(6)] agreements with affiliating agencies; and

(6) [(7)] the master plan of evaluation with most recent data collection.

(b) Record forms may be developed by an individual school.

(c) Hospital employment forms are not to be used for student records.

(d) [(b)] Records shall be safely stored to prevent loss, destruction, or unauthorized use.

(e) [(c)] Copies of the program's Texas Board of Nursing Compliance Audit of the Nursing Educational Program (CANEP), Nursing Educational Program Information Survey (NEPIS), and important Board communication shall be maintained as appropriate.

§215.13.Total Program Evaluation.

(a) There shall be a written plan for the systematic evaluation of the total program. The plan shall include evaluative criteria, methodology, frequency of evaluation, assignment of responsibility, and indicators (benchmarks) of program and instructional effectiveness. The following broad areas shall be periodically evaluated:

(1) organization and administration of the program;

(2) philosophy/mission and objectives/outcomes;

(3) program of study, curriculum, and instructional techniques;

(4) education facilities, resources, and services;

(5) affiliating agencies and clinical learning activities;

(6) students' achievement;

(7) graduates' performance on the licensing examination;

(8) graduates' nursing competence;

(9) faculty members' performance; and

(10) extension programs.

(b) All evaluation methods and instruments shall be periodically reviewed for appropriateness.

(c) Implementation of the plan for total program evaluation shall be documented in the minutes.

(d) Major changes in the nursing educational [education ] program shall be evidence-based and supported by rationale.

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 28, 2008.

TRD-200803915

James W. Johnston

General Counsel

Texas Board of Nursing

Earliest possible date of adoption: September 7, 2008

For further information, please call: (512) 305-6811


CHAPTER 217. LICENSURE, PEER ASSISTANCE AND PRACTICE

22 TAC §217.17

The Texas Board of Nursing (Board) proposes an amendment to §217.17, concerning Nursing Jurisprudence Exam (NJE). The proposed amendment is necessary to implement the recommendations made by the Sunset Advisory Commission.

House Bill 2426 (80th Regular Tex. Legis. Session, 2007, Truitt), in part enacted the requirement in NPA §301.252 that requires the Board of Nursing (BON) to adopt a rule regarding the development of the examination, applicable fees, administration of the examinations, re-examination procedures, grading procedures, and notice of results. This requirement will effect applications received on or after September 1, 2008, from candidates for initial licensure by examination and those seeking to endorse their nursing license to Texas. Since the initial adoption of §217.17 in November 2007, board staff have continued to work out the details of development and administration of the NJE. In doing so, staff have determined that the original rule language requires revision in order to accurately reflect the processes now being put into place for this new examination.

Katherine Thomas, Executive Director, has determined that for the first five-year period the proposed amendment is in effect there will be no additional fiscal implications for state or local government as a result of enforcing the amendment as proposed.

Ms. Thomas has also determined that for each year of the first five years the proposed amendment is in effect, the public benefit will be that those individuals seeking licensure as a nurse in Texas will have had to demonstrate minimum competency concerning knowledge of the law and standards that effect nursing practice in Texas before being licensed. There will not be any foreseeable effect on small or micro businesses. There are no anticipated costs to affected individuals as a result of the implementation of the proposed amendment.

Written comments on the proposal may be submitted to Dusty Johnston, General Counsel, Texas Board of Nursing, 333 Guadalupe, Suite 3-460, Austin, Texas 78701, or by e-mail to dusty.johnston@bon.state.tx.us, or by fax to Dusty Johnston at (512) 305-8101.

The amendment is proposed pursuant to the authority of Texas Occupations Code §301.151 which authorizes the Texas Board of Nursing to adopt, enforce, and repeal rules consistent with its legislative authority under the Nursing Practice Act.

No other statutes, articles or codes are affected by this proposal.

§217.17.Nursing Jurisprudence Exam (NJE).

(a) Exam Development.

(1) The Board will develop a Nursing Jurisprudence Exam (NJE) as authorized by Nursing Practice Act (NPA) 301.252.

(2) The NJE will be required for each person who submits an application seeking initial licensure on or after September 1, 2008.

(3) The NJE will be a minimum of 50 questions and shall be psychometrically validated.

(4) The NJE shall be designed to test an applicant's knowledge relating to board statutes, rules, position statements, guidelines, disciplinary sanction policies, frequently asked questions, and other resource documents accessible on the board's web page relating to the regulation, licensure, and practice of nursing under the following categories:

(A) Nursing Licensure and Regulation in Texas;

(B) Nursing Ethics;

(C) Nursing Practice;

(D) Nursing Peer Review;

(E) Disciplinary Action.

(b) Grading Procedures.

(1) [(a)] In this chapter, [when ] applicants [are] required to take [pass ] the NJE exam, [applicants] must achieve a passing [pass the NJE with a] score as determined by the Board of Nursing in consultation with a psychometrician [of 75 or better]. Should an [the ] applicant fail to achieve a passing score [ minimum grade of 75] on the NJE, such applicant, [ in order to be licensed], shall retake the NJE until such time as a passing score [grade of 75] is achieved.

(2) In accordance with NPA §301.252(a)(3), an applicant for initial nursing licensure in Texas shall not be granted a nursing license until the applicant achieves a passing score on the NJE.

[(b) An examinee shall not utilize a proxy or bring books, notes, or other help into the examination room, nor be allowed to communicate by word or sign with another examinee while the examination is in progress.]

[(c) Irregularities during an examination such as giving or obtaining unauthorized information or aid as evidenced by observation of subsequent statistical analysis of answer sheets, shall be sufficient cause to terminate an applicant's participation in an examination, invalidate the applicant's examination results, or take other appropriate action.]

(3) [(d)] A person who has passed the NJE shall not be required to retake the NJE for another or similar license, except as a specific requirement of the board.

(4) A passing grade on the NJE is valid for purposes of licensure for one year from the date the passing grade is achieved.

(c) Taking the NJE.

(1) An applicant may take the NJE at any time during the application process.

(2) Should an applicant fail to achieve a minimum passing score on the NJE, such applicant may retake the NJE until such time as a passing score is achieved.

(d) Notice of Results.

(1) Attaining a passing score on the NJE is a requirement of initial licensure in Texas effective September 1, 2008.

(2) Each applicant will be notified upon successful completion of all requirements for initial licensure.

[(e) If the applicant should fail one of the Nursing Jurisprudence examinations, the grade of the examination which the applicant initially passed may be used for the purpose of licensure by examination for a period of two years from the date of passing the initial examination.]

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 28, 2008.

TRD-200803910

James W. Johnston

General Counsel

Texas Board of Nursing

Earliest possible date of adoption: September 7, 2008

For further information, please call: (512) 305-6811


CHAPTER 221. ADVANCED PRACTICE NURSES

The Texas Board of Nursing (Board) proposes amendments to §221.4 and §221.6 and the repeal of §221.5, concerning Advanced Practice Nurses. The proposed amendments and repeal are necessary for the purpose of aligning 22 TAC Chapter 221 with Chapter 305 of the Nursing Practice Act (the Advanced Practice Registered Nurse (APRN) Compact) and national standards.

At its October 2007 meeting, the Board charged the Advanced Practice Nursing Advisory Committee (APNAC) with reviewing Rule 221 and discussing issues related to recognition of advanced practice nurses in preparation for implementation of the APRN Compact. As part of its discussion, the Board directed the APNAC to examine two specific issues. First, the issue of whether Texas should begin referring to nurses in advanced practice as APRNs rather than as APNs (advanced practice nurses). APRN is the term utilized in the compact language, and the term clearly identifies the licensee as both an advanced practice nurse and a registered nurse. It was the consensus of the APNAC to recommend that the Board begin using APRN in order to be consistent with Chapter 305 of the Nursing Practice Act.

The other issue the Board directed the APNAC to discuss is whether it would be in the best interest of the public to refer to authorization to practice as licensure rather than continuing to refer to advanced practice approval as an authorization that is linked to registered nurse (RN) licensure. The process used to review and approve applicants as advanced practice nurses is a licensure process, even though it is not presently called a license. Calling the approval a license will not change the advanced practice nurse's scope of practice in any way. The APRN's scope of practice will remain as set forth in current laws and regulations.

The Board utilizes a licensure process because it believes advanced practice nursing has evolved as a result of the complexity of services provided and the level of knowledge, skills, and competence required by individuals who provide such care. The services provided by APRNs exceed the scope of practice of RNs. Therefore, the potential for harm to the public is significantly greater for APRNs than for RNs, and a higher level of accountability is necessary. The Board's approval process ensures public protection through activities that include but are not limited to a detailed review of the individual's advanced practice nursing educational preparation related to the specialty for which he/she is seeking approval, verification of current RN licensure, and verification of appropriate national certification in the role and specialty that is congruent with the advanced practice nursing education. At least 50% of boards that are members of the National Council of State Boards of Nursing (NCSBN) already refer to their approval process for nurse anesthetists, nursemidwives and nurse practitioners as licensure. Nearly 40% also license clinical nurse specialists (NCSBN Member Board Profiles, data last updated January 22,2008).

Typically, licensure is considered the preferred method of regulation when the regulated activities are complex, requiring specialized knowledge, skills, and decision-making. Licensure in any profession is required when the potential for greater risk of harm to the public exists and the professional must be held to the highest level of accountability. Another key element of licensure is a unique and identifiable scope of practice. APRNs are engaged in activities that may include functions such as making medical diagnoses and ordering appropriate pharmacologic and non-pharmacologic care in collaboration with a delegating physician. The knowledge, skills and abilities required to provide advanced practice nursing care significantly exceed those acquired through entry-level nursing education programs that prepare individuals as RNs. Likewise, their scope of practice goes well beyond that of the RN and cannot be performed without completing an advanced practice nursing educational program. Therefore, the Board has established the minimum qualifications necessary for safe and competent practice, and applications for licensure are reviewed to determine that all qualifications have been met.

Calling the approval a license is not intended to replace RN licensure; rather, it will assist the public by providing greater clarity in identifying those RNs who are eligible to practice as APRNs in this state. The public is familiar with the concept of licensure for LVNs and RNs, and this change would reinforce to the public that APRNs complete formal education beyond the RN level and must meet certain criteria to practice at the advanced practice level. The APNAC recommends that the Board consider using the term licensure to describe the advanced practice recognition process.

One of the biggest changes recommended by the APNAC is to eliminate provisional authorization to practice for new graduates. The public, employers, and legislators have relayed to staff that the concept of provisional authorization is confusing. Eliminating this level will help to eliminate the confusion associated with it. Additionally, all certifying examinations are available via computer testing methods, allowing applicants to test quickly after graduation. Based on data from the NCSBN, graduates who delay taking VN or RN licensure examinations after graduation are less likely to be successful. It is reasonable to consider that this same concept is applicable to APRNs and certification examinations. In order to allow adequate time for test results to be received, the APNAC also recommends changing the interim approval period to 120 days from the current 90.

Katherine Thomas, Executive Director, has determined that for the first five-year period the proposal is in effect there will be no additional fiscal implications for state or local government as a result of enforcing the rules as proposed.

Ms. Thomas has also determined that for each year of the first five years the proposal is in effect, the public benefit will be that those individuals seeking authorization to practice as an advanced practice registered nurse will have demonstrated minimum qualifications necessary for safe and competent practice, and applications for licensure are reviewed to determine that all qualifications have been met. There will not be any foreseeable effect on small or micro businesses. There are no anticipated costs to affected individuals as a result of the implementation of the proposed rules.

Written comments on the proposal may be submitted to Dusty Johnston, General Counsel, Texas Board of Nursing, 333 Guadalupe, Suite 3-460, Austin, Texas 78701, or by e-mail to dusty.johnston@bon.state.tx.us, or by fax to Dusty Johnston at (512) 305-8101.

22 TAC §221.4, §221.6

The amendments are proposed pursuant to the authority of Texas Occupations Code §301.151 which authorizes the Texas Board of Nursing to adopt, enforce, and repeal rules consistent with its legislative authority under the Nursing Practice Act.

No other statutes, articles or codes are affected by this proposal.

§221.4.Advanced Practice Registered Nurse Licensure Requirements [for Full Authorization to Practice].

(a) Advanced practice registered nurse licensure is issued for the purpose of authorizing a registered nurse to practice in a specific advanced practice role and population-focus area.

(b) [(a)] The applicant for licensure as an advanced practice registered [ professional] nurse shall [ who seeks authorization to practice as an advanced practice nurse must]:

(1) Hold [hold] a current, valid, unencumbered license or privilege to practice as a registered nurse in the State of Texas [or reside in any party state and hold a current, valid, unencumbered registered nurse license in that state];

(2) Submit [submit] to the board such evidence as required by the board to insure compliance with the advanced practice educational requirements set forth in [ §221.3 of] this chapter . Such evidence shall include official documentation verifying graduation from a graduate level advanced practice registered nurse educational program accredited by a national nursing education accrediting body that is recognized by the U.S. Department of Education and the Board. This documentation shall verify the date of graduation, credential conferred and provide evidence of meeting the standards of advanced practice registered nursing education in this state as described in this chapter. All applicants, including those seeking licensure by endorsement, must demonstrate that the educational requirements set forth in this chapter have been met. A transcript is required prior to the issuance of a permanent license. [(relating to Education);]

(3) Attest [attest], on forms provided by the board, to having completed a [ met the] minimum of 400 hours of current practice within the last 24 calendar months in the advanced practice role and population-focus area for which the applicant is applying [the preceding biennium] unless the applicant has completed an advanced practice registered nursing educational program in this advanced practice role and population-focus area within the last 24 calendar months. [preceding biennium;]

(A) If less than four years but more than two years have lapsed since completion of the advanced practice nursing educational program and/or the applicant does not have 400 hours of current practice in the advanced practice role and population focus area during the previous 24 calendar months, the advanced practice registered nurse shall be required to demonstrate proof of completion of 400 hours of current practice obtained under the direct supervision of an advanced practice registered nurse licensed by the board in the same role and population focus area or by a physician in the same specialty.

(B) If more than four years have lapsed since completion of the advanced practice nursing educational program and/or the applicant has not practiced in the advanced practice role during the previous four years, the applicant shall successfully complete a refresher course or extensive orientation in the appropriate advanced practice role and population focus area that includes a supervised clinical component by a qualified instructor/sponsor.

(i) The course(s)/orientation shall be of sufficient length to satisfy the learning needs of the applicant and to assure that he/she meets the minimum standard for safe, competent care and include a minimum of 400 hours of current practice as described in subparagraph (A) of this paragraph. The course(s)/orientation shall cover the entire scope of the authorized advanced practice role and population focus area. Content shall include, but not be limited to that which is specified in board guidelines.

(ii) The instructor/sponsor must provide written verification of satisfactory completion of the refresher course/extensive orientation on forms provided by the board and assurance that the individual has reviewed current practice-related information pertinent to his/her advanced practice role and population focus area.

(4) Attest [attest], on forms provided by the board, to having obtained 20 contact hours of continuing education within the last 24 calendar months appropriate for [ in] the advanced practice [specialty and] role and population-focus area for which the applicant is applying [recognized by the board every two years]. Continuing education in the advanced practice [specialty and] role and population-focus area must meet the requirements of Chapter 216 of this title (relating to Continuing Education). The 20 contact hours required for RN licensure may be met by the 20 hours required by this subsection; and

(5) Respond to questions regarding personal background, including, but not limited to, information relating to:

(A) Disciplinary action or investigation regarding any professional license or credential;

(B) Criminal offenses, including those pending appeal;

(C) Current investigation by a grand jury or governmental agency;

(D) Any chemical, physical or mental impairment and/or disability or treatment for such that impacts the advanced practice registered nurse's ability to practice nursing safely, and a description of accommodations and/or practice limitations needed, if any;

(E) Any current substance use, misuse, or abuse; and,

(F) A detailed explanation and supporting documentation regarding any background information disclosed.

(6) [(5)] Submit [submit ] the required , non-refundable application [ credentialing] fee[, which is not refundable].

(c) [(b)] Applicants who completed their advanced practice nursing educational programs on or after January 1, 1996 must submit evidence of current certification in an advanced practice role and population focus area recognized by the Board that is congruent with the advanced practice nursing educational preparation. The certification examination shall be recognized by the Board for the role and population-focus area. If a specific certification examination does not exist for the role and population focus area, the board [The applicant for advanced practice nurse authorization who completed an advanced educational programs on or after January 1, 1996 must submit to the board such evidence as required by the board to ensure the applicant holds current certification in an the advanced nursing role and specialty recognized by the board. Such certification must be granted by a national certifying body recognized by the board. The Board] reserves the right to designate a [an available] national certification examination in a closely related population focus area. [ specialty which that must be taken in lieu of an examination specifically related to the specialty.] If [ an appropriate certification examination is not available and] the Board [board] has not designated an alternate examination, the applicant may petition the board for waiver from the certification requirement, according to the exceptions specified in [§221.7(c) of] this chapter [(relating to Petitions for Waiver)].

(d) [(c)] Advanced practice registered nurse applicants who wish to practice in [ be authorized by the board for] more than one role and/or population-focus area [designation] shall complete additional education in the desired area(s) of licensure [ approval] in compliance with the educational requirements set forth in [§221.3 of] this chapter and meet all requirements for licensure in each additional role or population-focus area [obtain national certification in the advanced role and specialty from a national certifying body recognized by the board]. To apply for licensure [authorization] for more than one title [designation], the applicant shall submit a separate application and fee for each desired title [designation]. Additional licensure is required for those licensed advanced practice registered nurses seeking to include an additional:

(1) Advanced practice role and population-focus area,

(2) Population-focus area within the same advanced practice role, or

(3) Advanced practice role within the same population focus area.

(e) [(d)] After review by the board and verification that all requirements have been met, [ notification of acceptability of credentials and] a certificate verifying licensure [approval] shall be sent to the advanced practice registered nurse.

§221.6.Interim Approval.

(a) Interim approval is a time-limited permit to practice nursing in a specific advanced practice role and population-focus area.

(b) [(a)] Interim approval may be granted to eligible applicants. Interim approval permits the advanced practice registered nurse applicant to practice without prescriptive authority while [by the board pending completion of] the application is reviewed [process for a period not to exceed 90 days. Extensions of the interim approval period shall not be granted].

(1) The [registered nurse seeking interim approval as an] advanced practice registered nurse applicant who meets all requirements and applies for interim approval must complete documents [documentation] provided by the board attesting [verifying] that: [ he/she meets all requirements of this chapter and has completed and mailed the appropriate documents to the educational program or organization for completion.]

(A) He/She meets all requirements for full licensure in an advanced practice registered nurse role and population-focus area in the state of Texas; and,

(B) Has completed and submitted the appropriate documents to the advanced practice nursing educational program or designated organization for completion.

(2) An applicant for licensure as an advanced practice registered nurse who is a new graduate of an advanced practice registered nursing education program may be eligible for interim approval.

(A) The graduate advanced practice registered nurse applicant must apply for interim approval within six months of the program completion date.

(B) The graduate advanced practice registered nurse applicant must provide verification that he/she is approved by a national certifying body to sit for the national certification examination recognized by the Board for the advanced practice role and population focus area that is congruent with his/her advanced practice nursing educational preparation.

(C) The graduate advanced practice registered nurse shall notify the board of the official national certification examination results.

(D) Interim approval to practice as a graduate advanced practice registered nurse shall expire immediately when the applicant receives notice from the national certifying body that he/she has failed the national certification examination.

(i) Failure to pass the certification examination on the first attempt immediately renders the applicant ineligible to practice in the advanced practice role or utilize that advanced practice registered nurse title or titles that imply the bearer is an advanced practice registered nurse.

(ii) The applicant must immediately notify the board of the examination results and return the original interim approval document to the board's office accompanied by a photocopy of the examination results. Upon notification of the examination failure, the board will issue written notification that the interim approval to practice is rescinded and the application for advanced practice registered nurse licensure is denied.

(iii) An applicant who fails to pass the certification examination may continue to practice as a registered nurse.

[(2) A letter shall be issued by the board granting interim approval.]

(3) Interim approval may be granted for a period of up to 120 days. An eligible applicant may be granted [is eligible for ] interim approval one time only per [ specialty and] role and population-focus area. Extensions or renewals of the interim approval period shall not be granted.

(4) The Board grants interim approval to eligible advanced practice registered nurse applicants.

(c) [(b) ] An advanced practice registered nurse applicant who submits a request for waiver from the requirements for licensure [of the rules as ] set forth in [§221.4 (relating to Full Authorization to Practice) and §221.5 (relating to Provisional Authorization) of] this chapter shall not be eligible for interim approval unless otherwise indicated in this chapter.

(d) [(c)] If an advanced practice registered nurse applicant is deemed ineligible for licensure [advanced practice authorization ], the interim approval will be rescinded immediately, effective on the date the notice is sent by mail. The applicant must cease practicing [ holding him/herself out] as an advanced practice registered nurse and may no longer use any [or using] titles that [to] imply to the public that he/she is an advanced practice registered nurse.

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 28, 2008.

TRD-200803911

James W. Johnston

General Counsel

Texas Board of Nursing

Earliest possible date of adoption: September 7, 2008

For further information, please call: (512) 305-6811


22 TAC §221.5

(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 Nursing or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed pursuant to the authority of Texas Occupations Code §301.151 which authorizes the Texas Board of Nursing to adopt, enforce, and repeal rules consistent with its legislative authority under the Nursing Practice Act.

No other statutes, articles or codes are affected by this proposal.

§221.5.Provisional Authorization.

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 28, 2008.

TRD-200803912

James W. Johnston

General Counsel

Texas Board of Nursing

Earliest possible date of adoption: September 7, 2008

For further information, please call: (512) 305-6811


CHAPTER 223. FEES

22 TAC §223.1

The Texas Board of Nursing (Board) proposes an amendment to §223.1, concerning Fees. The proposed amendment sets a "not to exceed" fee for the jurisprudence exam. Currently, the jurisprudence exam is being developed in house by the Board staff and iBridge Group. The Board staff anticipates that the board will be able to absorb all developmental and maintenance costs at this time but would like the option to charge of fee if it is deemed necessary at a later date. The Board staff will evaluate the costs of the jurisprudence examination on March 1, 2009 and again on August 31, 2009.

Katherine Thomas, Executive Director, has determined that for the first five-year period the proposed amendment is in effect there will be no additional fiscal implications for state or local government as a result of enforcing the amendment as proposed.

Ms. Thomas has also determined that for each year of the five years the proposed amendment is in effect, the public benefit will be that those individuals seeking licensure as a nurse in Texas will have had to demonstrate minimum competency in nursing jurisprudence and that any costs associated with the regulatory requirement is recovered. There will not be any foreseeable effect on small or micro businesses. There are no anticipated costs to affected individuals as a result of the implementation of the proposed amendment.

Written comments on the proposal may be submitted to Dusty Johnston, General Counsel, Texas Board of Nursing, 333 Guadalupe, Suite 3-460, Austin, Texas 78701, or by e-mail to dusty.johnston@bon.state.tx.us, or by fax to Dusty Johnston at (512) 305-8101.

The amendment is proposed pursuant to the authority of Texas Occupations Code §301.151 which authorizes the Texas Board of Nursing to adopt, enforce, and repeal rules consistent with its legislative authority under the Nursing Practice Act.

No other statutes, articles or codes are affected by this proposal.

§223.1.Fees.

(a) The Texas Board of Nursing has established reasonable and necessary fees for the administration of its functions.

(1) - (21) (No change.)

(22) fee for Federal Bureau of Investigations (FBI) and Department of Public Safety (DPS) criminal background check for licensees, initial licensure applicants and endorsement applicants as determined by fees imposed by the Criminal Justice Information Services (CJIS) Division and the Texas Department of Public Safety; [and]

(23) Disciplinary monitoring fees as stated in a Board order; and[.]

(24) Nursing Jurisprudence Examination fee: not to exceed $25.

(b) (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 28, 2008.

TRD-200803913

James W. Johnston

General Counsel

Texas Board of Nursing

Earliest possible date of adoption: September 7, 2008

For further information, please call: (512) 305-6811


PART 22. TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY

CHAPTER 501. RULES OF PROFESSIONAL CONDUCT

SUBCHAPTER C. RESPONSIBILITIES TO CLIENTS

22 TAC §501.76

The Texas State Board of Public Accountancy (Board) proposes an amendment to §501.76, concerning Records and Work Papers.

The amendment to §501.76(a) will remove the phrases "regardless of the status of the client or former client's account" and "either in hard copy or other useable form" and will add the sentence "The records and work papers may be provided to the client in either hard copy or other useable form."

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 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 clarity regarding the format of the records and work papers returned to a client or former client. The amendment also clarifies the concept that certain records and work papers must be returned to clients and former clients, whether or not the client or former client paid his bill.

The probable economic cost to persons required to comply with the amendment will vary according to the requests made by clients or former clients.

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 it does not add additional costs in order to comply with the amendment.

Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.

The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on September 8, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe Street, 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 businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted; finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. 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.

§501.76.Records and Work Papers.

(a) Upon request, [regardless of the status of the client or former client's account,] a person shall provide to the client or former client any accounting or other records, [ either in hard copy or other useable form,] belonging to, or obtained from or on behalf of, the client that the person removed from the client's premises or received on behalf of the client. The records and work papers may be provided to the client in either hard copy or other useable form. A person may make and retain copies of such records when they form the basis of work done by him. For a reasonable charge, a person shall furnish to his client or former client, upon request made within a reasonable time after original issuance of the document in question:

(1) - (3) (No change.)

(b) - (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 July 28, 2008.

TRD-200803836

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


CHAPTER 502. PEER ASSISTANCE

22 TAC §502.2

The Texas State Board of Public Accountancy (Board) proposes new §502.2, concerning Texas State Board of Public Accountancy Policy Statement of the Peer Assistance Oversight Committee.

The new §502.2 will provide the public with a policy statement describing the duties of the Peer Assistance Oversight Committee.

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 Board committee dedicated to overseeing peer assistance programs for CPAs.

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.

Mr. Treacy has determined that the proposed new rule will not have an adverse economic effect on small businesses because the amendment does not apply to small businesses.

Mr. Treacy had determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed new rule will not adversely affect small or micro businesses.

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 September 8, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe Street, 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 businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the new rule is to be adopted; finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. 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.

§502.2.Texas State Board of Public Accountancy Policy Statement of the Peer Assistance Oversight Committee.

(a) The Texas State Board of Public Accountancy has established the Peer Assistance Oversight committee to oversee the activities of the Texas Society of Certified Public Accountants' peer assistance program as mandated under the Texas Health and Safety Code, Chapter 467.

(b) The Peer Assistance Oversight Committee operates under the premise that impairments caused by substance abuse and mental illness are treatable.

(c) The Peer Assistance Oversight Committee's responsibilities include, but are not limited to:

(1) protecting the public from CPAs whose ethical, behavioral, and technical violations due to chemical dependency and/or mental illness have harmed, or have the potential to harm, the public;

(2) encouraging CPAs, CPA candidates, and accounting students to seek assistance for impairment due to chemical dependency and/or mental illness;

(3) cooperating with the Texas Society of CPAs peer assistance program in promoting confidential assistance to CPAs, CPA candidates, and accounting students who suffer from chemical dependency and/or mental illness; and

(4) disseminating information about the peer assistance program to CPAs, CPA candidates, and accounting students.

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 28, 2008.

TRD-200803859

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


CHAPTER 505. THE BOARD

22 TAC §505.7

The Texas State Board of Public Accountancy (Board) proposes an amendment to §505.7, concerning Vacancies in the Board.

The amendment to §505.7 will replace the word "offices" with the word "officers".

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 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 greater clarity regarding vacancies in the Board.

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 apply to small businesses.

Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.

The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on September 8, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe Street, 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 businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted; finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. 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.

§505.7.Vacancies in the Board.

If for any reason a vacancy shall occur in the board, the presiding officer shall provide a notice to the governor and ask for the appointment of a new member to fill the unexpired term. If the vacancy shall occur in any of the officers [offices] of the board, the board shall elect from its own membership at the first regular or special meeting following the vacancy a new officer to serve for the balance of the unexpired term.

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 28, 2008.

TRD-200803874

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


22 TAC §505.8

The Texas State Board of Public Accountancy (Board) proposes an amendment to §505.8, concerning Board Meetings.

The amendment to §505.8 will replace the phrase "presiding officer shall give written" with the phrase "executive director is responsible for providing" and replace the phrase "as required by law" with the phrase "pursuant to the Open Meetings Act" in subsection (a) and in subsection (b) delete the phrase "as required by statute" and replace the word "or" with the phrase "the board and".

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 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 clearer statement regarding those Board procedures necessary to comply with the Open Meetings 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 apply to small businesses.

Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.

The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on September 8, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe Street, 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 businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted; finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. 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.

§505.8.Board Meetings.

(a) Board meetings shall be open to the public. The executive director is responsible for providing [ presiding officer shall give written ] notice of board meetings pursuant to the Open Meetings Act [ as required by law].

(b) Board meetings [as required by statute] shall take place at the headquarters of the board or, if the convenience of the public , the board and [or] the parties to a hearing will be better served thereby, at such place as the board may designate.

(c) Special meetings may be held upon the call of the presiding officer, or upon call of a majority of the members of the board, after reasonable notice.

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 28, 2008.

TRD-200803840

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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(e) will remove paragraph (1)(C) and reletter subparagraphs (D), (E), (F), (G) and (H) to subparagraphs (C), (D), (E), (F) and (G); in paragraph (3)(A) add the phrase "and courses that may be used to meet the education requirements to take the examination"; in paragraph (6), replace "1" and "2" with "I" and "II"; and in paragraph (10) remove the phrase "who shall also serve as investigators" and add the phrase "constructive enforcement advisory".

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 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 greater clarity regarding the Executive Committee's responsibilities.

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 apply to small businesses.

Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.

The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on September 8, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe Street, 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 businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted; finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. 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) The executive committee shall be a policy-making committee comprised of the board's presiding officer, assistant presiding officer, secretary, treasurer, immediate past presiding officer of the board if still serving on the board, and at least one other officer elected by the board. The Executive Committee shall also be the board's audit committee. The executive committee may act on behalf of the full board in matters of urgency, or when a meeting of the full board is not feasible; the executive committee's actions are subject to full board ratification at its next regularly scheduled meeting. The functions of the executive committee shall be to advise, consult with, and make recommendations to the board concerning matters requested by the board's presiding officer, including:

(A) - (B) (No change.)

[(C) cease and desist orders pursuant to board rule §518.2 of this title and violations of cease and desist orders pursuant to board rule §518.3 of this title;]

(C) [(D)] proposed changes in the board rules of professional conduct (the rules);

(D) [(E)] amendments to the Act;

(E) [(F)] responses/positions relating to papers, reports, and other submissions from national associations or boards;

(F) [(G)] legislative oversight, including, but not limited to, budget, performance measures, proposed changes in legislation affecting the board, and computer utilization; and [;]

(G) [(H)] special issues.

(2) (No change.)

(3) The qualifications 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 make recommendations to the board regarding:

(A) the educational qualifications of an applicant for the Uniform Certified Public Accountant Examination in accordance with §§511.51 through 511.59 of this title (relating to Educational Requirements) and courses that may be used to meet the education requirements to take the examination;

(B) - (E) (No change.)

(4) - (5) (No change.)

(6) The technical standards review I [1] committee and the technical standards review II [2] committee shall be working committees each comprised of at least two board members, one of whom shall serve as chair, assisted by at least three non-board members who shall serve in an advisory capacity. The committees shall:

(A) - (C) (No change.)

(7) - (9) (No change.)

(10) The constructive enforcement committee shall be a working committee comprised of at least two board members, one of whom shall serve as chair, assisted by non-board CPA members [ who shall also serve as investigators ]. At least one Committee member shall be a public member of the board. The committee shall approve the constructive enforcement program, coordinate its activities with board committees and staff, and supervise the training of constructive enforcement advisory committee members. A staff attorney of the board shall supervise the day to day administration of the constructive enforcement program and activities of the committee's non-board members on behalf of the committee chairman. The committee shall:

(A) - (E) (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 28, 2008.

TRD-200803841

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


22 TAC §505.11

(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 §505.11, concerning Texas State Board of Public Accountancy Policy Statement of the Peer Assistance Oversight Committee.

The proposed repeal of §505.11 will remove a rule that is no longer relevant to Chapter 505. This rule will be relocated to Chapter 502.

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 more streamlined rules.

The probable economic cost to persons required to comply with the repeal will be nothing.

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 rule is being relocated to Chapter 502.

Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the repeal will not adversely affect small or micro 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 September 8, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe Street, 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 repeal will have an adverse economic effect on small businesses; if the repeal is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted: finally, describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. See Texas Government Code, §2006.002.

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.

§505.11.Texas State Board of Public Accountancy Policy Statement of the Peer Assistance Oversight Committee.

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 28, 2008.

TRD-200803860

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


22 TAC §505.12

The Texas State Board of Public Accountancy (Board) proposes an amendment to §505.12, concerning Enforcement Committees.

The amendment to §505.12 in subsection (a) will add the word "the"; replace the phrase "committee, major case enforcement committee" with the phrase "I and II committees"; add the word "the"; remove the word "each" and remove the phrase "one of"; in subsection (b) replace the word "and" with the phrase "serving on"; replace the word "in" with the word "of" and replace the word "considered" with the word "investigated".

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 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 the consistent use of the new title for the former Major Case Committee, now called the Technical Standards Review II 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.

Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not apply to small businesses.

Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.

The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on September 8, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe Street, 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 businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted; finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. 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.

§505.12.Enforcement Committees.

(a) The behavioral enforcement committee, the technical standards review I and II committees [committee, major case enforcement committee] and the constructive enforcement committee shall [each] be [one of] the board's enforcement committees.

(b) A member of the board serving on [and] an enforcement committee shall recuse himself and take no part in the board's vote on the final disposition of [in] any case investigated [considered ] by that enforcement committee.

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 28, 2008.

TRD-200803842

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


CHAPTER 507. EMPLOYEES OF THE BOARD

22 TAC §507.2

The Texas State Board of Public Accountancy (Board) proposes an amendment to §507.2, concerning Staff.

The amendment to §507.2(a) will add the phrase "employed in an executive, administrative or professional capacity as that phrase is used for purposes of establishing an exemption to the overtime provisions of the Fair Labor Standards Act and its subsequent amendments if the prospective employee is acting in the capacity of an officer, executive board or executive committee member, employee, or paid consultant of a Texas trade association in the field of public accountancy or the prospective employee's spouse is acting in the capacity of an officer, executive board or executive committee member, manager or paid consultant of a Texas trade association or be".

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 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 clearer statement regarding those Board procedures necessary to comply with the Fair Labor Standards 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 apply to small businesses.

Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.

The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on September 8, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe Street, 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 businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted; finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. 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.

§507.2.Staff.

(a) The executive director shall employ such staff as is authorized and necessary for the conduct of its affairs. Applications for employment by the board shall notify prospective employees that no employee of the board may be employed in an executive, administrative or professional capacity as that phrase is used for purposes of establishing an exemption to the overtime provisions of the Fair Labor Standards Act and its subsequent amendments if the prospective employee is acting in the capacity of an officer, executive board or executive committee member, employee, or paid consultant of a Texas trade association in the field of public accountancy or the prospective employee's spouse is acting in the capacity of an officer, executive board or executive committee member, manager or paid consultant of a Texas trade association or be related within the second degree of affinity or within the second degree of consanguinity to a person who is an officer, employee, or paid consultant of a trade association of the profession of public accountancy.

(b) Each employee shall be hired without regard to race, color, handicap, sex, religion, age, or national origin. The executive director shall report at least annually to the board on compliance with this policy.

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 28, 2008.

TRD-200803843

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


22 TAC §507.4

The Texas State Board of Public Accountancy (Board) proposes an amendment to §507.4, concerning Confidentiality.

The amendment to §507.4(b) will replace the phrase "under the following circumstances:" with the phrase "to another governmental, regulatory or law enforcement agency engaged in an enforcement action." and delete subsection (b)(1) and (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 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 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 clarification regarding who has access to confidential files maintained by the Board.

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 apply to small businesses.

Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.

The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on September 8, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe Street, 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 businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted; finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. 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.

§507.4.Confidentiality.

(a) Members of the board, the executive director, members of board staff, and independent contractors retained by the board shall not disclose any confidential information which comes to their attention, except as may be required by law.

(b) All complaints, investigation files, investigation reports, and other investigative information in the possession of, received or gathered by the board is confidential and any employee, agent, or member of the board may not disclose the information contained in these files except to another governmental, regulatory or law enforcement agency engaged in an enforcement action. [ under the following circumstances:]

[(1) to another state, local or federal governmental or regulatory enforcement agency if sought in the furtherance of an investigation by the requesting agency in an enforcement action regarding the licensee; and]

[(2) to appropriate law enforcement agencies if sought in the furtherance of a criminal investigation by the requesting agency.]

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 28, 2008.

TRD-200803844

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


CHAPTER 509. RULEMAKING PROCEDURES

22 TAC §509.2

The Texas State Board of Public Accountancy (Board) proposes an amendment to §509.2, concerning Suspension of Rules.

The amendment to §509.2 will replace the phrase "a public emergency or imperative public necessity" with the phrase "an imminent peril to the public health, safety or welfare or a requirement of a state or federal law" and correct the spelling of the word "therefore".

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 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 clarification regarding the circumstances under which the Board may suspend the operation of its 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 apply to small businesses.

Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.

The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on September 8, 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 businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted; finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. 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.

§509.2.Suspension of Rules.

In any case in which an imminent peril to the public health, safety or welfare or a requirement of a state or federal law [ a public emergency or imperative public necessity] so requires, the board may suspend the operation of these sections to the extent authorized by law, stating its reasons therefore [therefor ] in writing.

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 28, 2008.

TRD-200803845

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


22 TAC §509.6

The Texas State Board of Public Accountancy (Board) proposes an amendment to §509.6, concerning Rulemaking Procedures.

The amendment to §509.6(d) will replace the word "encourage" with the word "utilize".

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 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 more definite statement regarding the Board's use of negotiated rulemaking.

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 apply to small businesses.

Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.

The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on September 8, 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 businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted; finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. 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.

§509.6.Rulemaking Procedures.

(a) Notice of a proposed new rule or amendment of any existing rule shall be made in accordance with the provisions of §2001.023 and §2001.024 of the Administrative Procedure Act.

(b) A request for a public hearing to receive comments on a proposed new rule or amendment to an existing rule must be received in the offices of the board no later than 5:00 p.m. of the thirtieth calendar day prior to the board meeting scheduled to consider the adoption of the proposed rule unless the board announces a different filing date.

(c) A person wishing to testify at a public hearing to receive comments on a proposed new rule or amendment to an existing rule must file a written copy of the proposed testimony in the offices of the board by no later than 5:00 p.m. of the fifth calendar day prior to the public hearing unless the board announces a different filing date.

(d) It is the board's policy to utilize [encourage ] negotiated rule making when appropriate.

(e) The executive director shall designate a board employee as the board's Negotiated Rulemaking Director to implement the provisions of the Negotiated Rulemaking Act, chapter 2008 of the Texas Government Code, and perform the following functions:

(1) maintain necessary agency records of negotiated rulemaking procedures while maintaining the confidentiality of participants;

(2) establish a method of choosing conveners and facilitators as defined by the Negotiated Rulemaking Act, chapter 2008 of the Texas Government Code;

(3) establish a method of convening negotiated rules committees;

(4) provide information about the negotiated rulemaking process to agency employees, potential users, and users of the negotiated rulemaking program;

(5) arrange training or education necessary to implement the negotiated rulemaking process; and

(6) establish a system to evaluate the negotiated rulemaking program, conveners, facilitators, and committees.

(f) The board or the Rules Committee may request the Negotiated Rulemaking Director to institute negotiated rulemaking proceedings on a specified subject. Upon receipt of such a request, the Negotiated Rulemaking Director shall institute the negotiated rulemaking process pursuant to chapter 2008 of the Texas Government Code.

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 28, 2008.

TRD-200803846

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


CHAPTER 518. UNAUTHORIZED PRACTICE OF PUBLIC ACCOUNTANCY

22 TAC §518.2

The Texas State Board of Public Accountancy (Board) proposes an amendment to §518.2, concerning Cease and Desist Orders.

The amendment to §518.2 will replace the word "Committee" with the word "Director" twice in the beginning of the rule, remove the sentence "The Executive Committee may issue a cease and desist order by agreement or after a hearing in a contested matter.", replace the phrase "A cease and desist order issued by the Executive Committee "with the phrase" The Executive Director and the person under investigation may agree to a cease and desist order at any time;" add the phrase "however, such an agreed cease and desist order", replace the word "by" with the word "be" and remove the phrase at its next regularly scheduled meeting", add new "(1) The Executive Director may refer an investigation to the Constructive Enforcement Committee for its consideration before taking any action. In such cases, the Constructive Enforcement Committee may recommend that staff dismiss the matter without further action, instruct staff to investigate the matter further or recommends that staff offer the person under investigation a cease and desist order.", add new "(2) The Executive Director may enlist the aid of the members of the Constructive Enforcement Advisory Committee in gathering evidence during investigations of the unauthorized practice of public accountancy.", in subsection (b) replace the phrase "; provided that the time limits provided in this rule control." with a ".", and remove subsection (c) and (d).

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 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 clearer, more streamlined procedure for investigating and prosecuting unauthorized practice cases.

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 apply to small businesses.

Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.

The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on September 8, 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 businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted; finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. 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.

§518.2.Cease and Desist Orders.

(a) Whenever the board, through its Executive Director [ Committee], determines that a person is engaging in an act or practice that constitutes the practice of public accountancy without a license issued under the Act, the board, through its Executive Director [Committee], after notice and an opportunity for a hearing, may issue a cease and desist order prohibiting the person from engaging in that activity. The Executive Director and the person under investigation may agree to a cease and desist order at any time; however, such an agreed cease and desist order [ The Executive Committee may issue a cease and desist order by agreement or after a hearing in a contested matter. A cease and desist order issued by the Executive Committee] must be [by ] ratified by the board [ at its next regularly scheduled meeting].

(1) The Executive Director may refer an investigation to the Constructive Enforcement Committee for its consideration before taking any action. In such cases, the Constructive Enforcement Committee may recommend that staff dismiss the matter without further action, instruct staff to investigate the matter further or recommends that staff offer the person under investigation a cease and desist order.

(2) The Executive Director may enlist the aid of the members of the Constructive Enforcement Advisory Committee in gathering evidence during investigations of the unauthorized practice of public accountancy.

(b) A hearing under this rule shall be conducted in the manner of a contested case pursuant to the Act, the APA, the board's rules and SOAH's rules[; provided that the time limits provided in this rule control].

[(c) Upon the filing of a request to docket the case, SOAH shall set the matter for hearing no later than 20 days from the date of the request. The ALJ shall deliver a PFD and recommendation as to whether a cease and desist order should be issued to the Executive Committee no later than five days after the completion of the hearing. The Executive Committee shall make its determination as to whether to issue a cease and desist order no later than five days after receipt of the PFD and recommendation.]

[(d) Pursuant to Chapter 551 of the Texas Government Code (relating to Open Meetings), the Executive Committee may hold a meeting by telephone conference call if immediate action is required and the convening at one location of the Executive Committee is inconvenient for any member of the Committee.]

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 28, 2008.

TRD-200803837

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


22 TAC §518.3

The Texas State Board of Public Accountancy (Board) proposes an amendment to §518.3, concerning Violation of a Cease and Desist Order.

The amendment to §518.3 will add the phrase "and Subchapter L of the Texas Public Accountancy Act, as amended.", add new subsection "(b) The board staff acting through the Executive Director will offer the person found in violation of a cease and desist order an agreed consent order.", add new paragraph "(1) The agreed consent order will act as the preliminary report as required by §901.553 of the Act, including findings of fact to support the administrative penalty as well as the amount of the penalty to be imposed.", add new paragraph "(2) Board staff will advise the person found in violation of a cease and desist order that he has 20 days to either sign the agreed consent order or to request a hearing in writing, as required by §901.554 of the Act.", add new paragraph "(3) If the person found to be in violation of a cease and desist order signs the agreed consent order, then the agreed consent order will be presented to the board for its consideration. If the board ratifies the agreed consent order, then it will issue a board order." and delete subsection (b) and (c).

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 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 enforcement procedure that follows the procedure outlined in Subchapter L of the 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 apply to small businesses.

Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.

The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on September 8, 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 businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted; finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. 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.

§518.3.Violation of a Cease and Desist Order.

(a) Whenever the board, through its Executive Director, determines that a person subject to a cease and desist order issued by the board has violated that order, the board, through its Executive Director, after notice and an opportunity for a hearing, may assess an administrative penalty, after consulting with the board's presiding officer, against the person in violation in accordance with the guidelines contained in §518.4 of this title (relating to Administrative Penalty Guidelines for Violations of Cease and Desist Orders) and Subchapter L of the Texas Public Accountancy Act, as amended.

(b) The board staff acting through the Executive Director will offer the person found in violation of a cease and desist order an agreed consent order.

(1) The agreed consent order will act as the preliminary report as required by §901.553 of the Act, including findings of fact to support the administrative penalty as well as the amount of the penalty to be imposed.

(2) Board staff will advise the person found in violation of a cease and desist order that he has 20 days to either sign the agreed consent order or to request a hearing in writing, as required by §901.554 of the Act.

(3) If the person found to be in violation of a cease and desist order signs the agreed consent order, then the agreed consent order will be presented to the board for its consideration. If the board ratifies the agreed consent order, then it will issue a board order.

[(b) The board shall give notice of the assessment of an administrative penalty in accordance with §901.553 of the Act. The person may pay the penalty or request a hearing in accordance with §901.554 of the Act. A hearing under this rule shall be conducted in the manner of a contested case pursuant to the Act, the APA, the board's rules and SOAH's rules; provided that the time limits provided in this rule control.]

[(c) If a penalty is assessed the person may pay or appeal the board's order in accordance with §901.556 of the Act.]

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 28, 2008.

TRD-200803838

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


22 TAC §518.4

The Texas State Board of Public Accountancy (Board) proposes an amendment to §518.4, concerning Administrative Penalty Guidelines for Violations of Cease and Desist Orders.

The amendment to §518.4 will replace the phrase "claims to provide "accounting services" or other non-attest services reserved for licensed certified public accountants and licensed certified public accounting firms" with the phrase "asserts an expertise in accounting through use of the term "accounting service" or any variation of that term" in paragraph (3) and replace the phrase "claims to provide "accounting services" or other non-attest services reserved for licensed certified public accountants and licensed certified public accounting firms" with the phrase "asserts an expertise in accounting through use of the term "accounting service" or any variation of that term" in paragraph (4).

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 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 clearer correlation between activity that violates the Public Accountancy Act and the penalties that the Board can impose upon a person that engages in that activity.

The probable economic cost to persons required to comply with the amendment will vary according to the activity and the range of penalties that correspond with that activity.

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 applies only to those persons or entities that violate the Public Accountancy Act.

Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.

The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on September 8, 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 businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted; finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. 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.

§518.4.Administrative Penalty Guidelines for Violations of Cease and Desist Orders.

The amount of the administrative penalty assessed under this chapter will be in accordance with the following guidelines:

(1) an unlicensed individual who uses terms restricted for use by certified public accountants only in violation of §§901.451, 901.452 and 901.453 of the Act shall pay a penalty of no less than $1,000.00 and no more than $5,000.00;

(2) an unlicensed entity that uses terms restricted for use by licensed firms only in violation of §901.351(a) of the Act shall pay a penalty of no less than $5,000.00 and no more than $10,000.00;

(3) an unlicensed individual who asserts an expertise in accounting through use of the term "accounting service" or any variation of that term [claims to provide "accounting services" or other non-attest services reserved for licensed certified public accountants and licensed certified public accounting firms] shall pay a penalty of no less than $1,000.00 and no more than $5,000.00;

(4) an unlicensed entity that asserts an expertise in accounting through use of the term "accounting service" or any variation of that term [claims to provide "accounting services" or other non-attest services reserved for licensed certified public accountants and licensed certified public accounting firms] shall pay a penalty of no less than $5,000.00 and no more than $10,000.00;

(5) an unlicensed individual who claims to provide attest services shall pay a penalty of no less than $5,000.00 and no more than $25,000.00;

(6) an unlicensed entity that claims to provide attest services shall pay a penalty of no less than $5,000.00 and no more than $25,000.00;

(7) an unlicensed individual who claims to be a certified public accountant shall pay a penalty of no less than $5,000.00 and no more than $25,000.00; and

(8) an unlicensed entity that claims to be a certified public accounting firm shall pay a penalty of no less than $5,000.00 and no more than $25,000.00.

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 28, 2008.

TRD-200803839

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


CHAPTER 519. PRACTICE AND PROCEDURE

SUBCHAPTER A. GENERAL PROVISIONS

22 TAC §519.2

The Texas State Board of Public Accountancy (Board) proposes an amendment to §519.2, concerning Definitions.

The amendment to §519.2 will remove the phrase "which are the Behavioral Enforcement Committee, the Technical Standards Review I Committee and the Technical Standards Review II Committee" in paragraph (5); in paragraph (7) add the word "the" and in paragraph (8) replace the word "costs" with the word "Costs".

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 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 more concise and clear definitions.

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 apply to small businesses.

Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.

The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on September 8, 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 businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted; finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. 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.

§519.2.Definitions.

In this chapter:

(1) "Address of record" means the last address provided to the board by a certificate or registration holder pursuant to board rule 501.93 of this title (relating to Responses);

(2) "ALJ" means administrative law judge;

(3) "APA" means the Texas Administrative Procedure Act, chapter 2001 of the Texas Government Code;

(4) "Board staff" means the employees or independent contractors of the board;

(5) "Committee" means an enforcement committee of the board [which are the Behavioral Enforcement Committee, the Technical Standards Review I Committee and the Technical Standards Review II Committee];

(6) "Complaint" means information available to or provided to the board indicating that a certificate or registration holder may have violated the Act, board rules, or order of the board;

(7) "Complainant" means the person or entity who initiates a complaint with the board against a certificate or registration holder;

(8) "Direct Administrative Costs [costs]" means those costs actually incurred by the board through payment to outside vendors and the resources expended by the board in the investigation and prosecution of a matter within the board's jurisdiction, including but not limited to, staff salary, payroll taxes and benefits and other non-salary related expenses, expert fees and expenses, witness fees and expenses, fees and expenses paid to the Office of the Attorney General, filing fees, SOAH utilization fees, court reporting fees, copying fees, delivery fees, case management fees, costs of exhibit creation, technical fees, travel costs and any other cost or fee that can reasonably be attributed to the matter;

(9) "PFD" means the proposal for decision prepared by an administrative law judge;

(10) "Respondent" means a certificate or registration holder against whom a complaint has been filed; and

(11) "SOAH" means the State Office of Administrative 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 July 28, 2008.

TRD-200803847

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


22 TAC §519.4

The Texas State Board of Public Accountancy (Board) proposes an amendment to §519.4, concerning Conduct and Decorum.

The amendment to §519.4 will replace the word "Committees" with the word "committee" in subsections (a) and (b).

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 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 consistent use of terms within the rule.

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 apply to small businesses.

Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.

The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on September 8, 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 businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted; finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. 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.

§519.4.Conduct and Decorum.

(a) Every party, witness, attorney, or other representative appearing before the board, board committee [ Committees] or board staff shall comport himself in all proceedings with proper dignity, courtesy, and respect for the board, the executive director, and all other participants. Disorderly conduct will not be tolerated. Attorneys and other representatives of parties shall observe and practice the standards of ethical behavior prescribed for attorneys at law by the State Bar of Texas.

(b) Any person engaging in disorderly conduct or communicating with board members in violation of the prohibitions on ex parte communication may be excluded from any board, committee [Committee] or staff proceeding and treated as if defaulting on obligations to 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 July 28, 2008.

TRD-200803848

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


22 TAC §519.7

The Texas State Board of Public Accountancy (Board) proposes an amendment to §519.7, concerning Misdemeanors that Subject a Certificate or Registration Holder to Discipline by the Board.

The amendment to §519.7 will add the phrase "deferred prosecution, withheld adjudication" twice in subsections (a), (b), (c), (d) and once in subsection (f) and in subsection (c)(5) replace the word "marihuana" with the word "marijuana".

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 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 clarification regarding an additional type of plea bargain agreement that may subject persons to discipline by the Board.

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 apply to small businesses.

Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.

The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on September 8, 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 businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted; finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. 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.

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

(a) Final conviction or placement on deferred adjudication , deferred prosecution, withheld adjudication or community supervision in connection with misdemeanors that involve dishonesty or fraud may subject a certificate or registration holder to disciplinary action pursuant to §501.90 of this title (relating to Discreditable Acts). Because a certificate or registration holder is often placed in a position of trust with respect to client funds, and the public in general, and the business community in particular, rely on the veracity, integrity and honesty of certificate or registration holders in the preparation of reports and provision of other accounting services, the board considers conviction or placement on deferred adjudication , deferred prosecution, withheld adjudication or community supervision for any crime involving dishonesty or fraud to relate directly to the practice of public accountancy and may subject the certificate or registration holder to discipline by the board. The board has determined that misdemeanor offenses that involve dishonesty or fraud directly relate to the practice of accounting pursuant to Sections 53.021, 53.022, 53.023 and 53.025 of the Occupations Code. The following non-exclusive list of misdemeanor offenses may involve dishonesty or fraud:

(1) - (47) (No change.)

(b) Final conviction or placement on deferred adjudication , deferred prosecution, withheld adjudication or community supervision in connection with misdemeanors that involve moral turpitude may subject a certificate or registration holder to disciplinary action pursuant to §501.90 of this title (relating to Discreditable Acts). Because a certificate or registration holder is often placed in a position of trust with respect to client funds, and the public in general, and the business community in particular, rely on the veracity, integrity and honesty of certificate or registration holders in the preparation of reports and provision of other accounting services, the board considers conviction or placement on deferred adjudication, deferred prosecution, withheld adjudication or community supervision for any crime involving moral turpitude to relate directly to the practice of public accountancy and may subject the certificate or registration holder to discipline by the board. The board has determined that misdemeanor offenses that involve moral turpitude directly relate to the practice of accounting pursuant to Sections 53.021, 53.022, 53.023 and 53.025 of the Occupations Code. The following non-exclusive list of misdemeanor offenses may involve moral turpitude:

(1) - (9) (No change.)

(c) Final conviction or placement on deferred adjudication , deferred prosecution, withheld adjudication or community supervision in connection with misdemeanors that involve alcohol abuse or controlled substances may subject a certificate or registration holder to disciplinary action pursuant to §501.90 of this title (relating to Discreditable Acts). Because a certificate or registration holder is often placed in a position of trust with respect to client funds, and the public in general, and the business community in particular, rely on the veracity, integrity and honesty of certificate or registration holders in the preparation of reports and provision of other accounting services, the board considers conviction or placement on deferred adjudication , deferred prosecution, withheld adjudication or community supervision for any crime involving alcohol abuse or controlled substances to relate directly to the practice of public accountancy and may subject a certificate or registration holder to discipline by the board. The board has determined that misdemeanor offenses that involve alcohol abuse or controlled substances directly relate to the practice of accounting pursuant to Sections 53.021, 53.022, 53.023 and 53.025 of the Occupations Code. The following non-exclusive list of misdemeanor offenses may involve alcohol abuse or controlled substances:

(1) - (4) (No change.)

(5) Possession or delivery of marijuana [marihuana];

(6) - (8) (No change.)

(d) Final conviction or placement on deferred adjudication , deferred prosecution, withheld adjudication or community supervision in connection with misdemeanors that involve physical injury or threats of physical injury to a person may subject a certificate or registration holder to disciplinary action pursuant to §501.90 of this title (relating to Discreditable Acts). Because certificate or registration holders regularly deal directly with clients and other members of the public during the performance of their professional duties, often under highly stressful conditions, the public in general, and the business community in particular, rely on the stability and integrity of certificate or registration holders in the provision of accounting services. The board considers conviction or placement on deferred adjudication, deferred prosecution, withheld adjudication or community supervision for any crime involving physical injury or threats of physical injury to a person to relate directly to the practice of public accountancy and may subject the certificate or registration holder to discipline by the board. The board has determined that misdemeanor offenses that involve physical injury or threats of physical injury to a person directly relate to the practice of accounting pursuant to Sections 53.021, 53.022, 53.023 and 53.025 of the Occupations Code. The following non-exclusive list of misdemeanor offenses may involve physical injury or threats of physical injury to a person:

(1) - (9) (No change.)

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

(f) A conviction or placement on deferred adjudication , deferred prosecution, withheld adjudication or community supervision for a violation of any state or federal law that is equivalent to an offense listed in subsections (a) through (e) of this section is considered to directly relate to the practice of accounting and may subject a certificate or registration holder to discipline 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 July 28, 2008.

TRD-200803849

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


22 TAC §519.9

The Texas State Board of Public Accountancy (Board) proposes an amendment to §519.9, concerning Administrative Penalty Guidelines.

The amendment to §519.9 will replace the word "subpoena" with the word "court order" in item number 33 of Figure: 22 TAC §519.9(a).

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 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 penalty guidelines that are consistent with other 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 apply to small businesses.

Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.

The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on September 8, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe Street, 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 businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted; finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. 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.

§519.9.Administrative Penalty Guidelines.

(a) The following table contains guidelines for the assessment of administrative penalties in disciplinary matters. In determining whether a violation is minor, moderate or major, the board will apply the factors to be considered set forth in §901.552(b) of the Public Accountancy Act. In all cases where the board has determined a violation has occurred, administrative costs will be assessed, regardless of any other sanction imposed by the board.

Figure: 22 TAC §519.9(a)

(b) The amounts specified in subsection (a) of this section are guidelines only. The board retains the right to increase or decrease the amount of an administrative penalty based on the circumstances of each case it considers.

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 28, 2008.

TRD-200803850

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


22 TAC §519.10

The Texas State Board of Public Accountancy (Board) proposes new §519.10, concerning Cooperation with Regulatory Bodies.

The new §519.10 will establish guidelines to assist the Board in exercising its authority to share confidential information with other governmental, regulatory, or law enforcement agencies in accordance with §901.160, Texas Occupations Code.

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 greater clarity regarding the conditions under which confidential information can be shared with governmental, regulatory, or law enforcement agencies.

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.

Mr. Treacy has determined that the proposed new rule will not have an adverse economic effect on small businesses because the rule does not apply to small businesses.

Mr. Treacy had determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed new rule will not adversely affect small or micro businesses.

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 September 8, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe Street, 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 businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the new rule is to be adopted; finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. 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.

§519.10.Cooperation with Regulatory Bodies.

The board, pursuant to §901.160(e) of the Public Accountancy Act, may disclose information that is confidential under §901.160(c) of the Public Accountancy Act to a governmental, regulatory or law enforcement agency if the requesting agency makes the request in writing and states that it is involved in an enforcement action.

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 28, 2008.

TRD-200803875

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


SUBCHAPTER B. COMPLAINTS AND INVESTIGATIONS

22 TAC §519.24

The Texas State Board of Public Accountancy (Board) proposes an amendment to §519.24, concerning Committee Recommendations.

The amendment to §519.24 will replace the word "will" with the word "may" in subsection (b) and (c); in subsection (d) replace the "30" with the phrase "a specified number of" and add the phrase "in writing"; and replace "30 day period" with the phrase "specified number of days".

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 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 greater enforcement committee discretion regarding what it can recommend as the final disposition of an investigation, as well as more discretion in offering settlements to respondents in investigations.

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 apply to small businesses.

Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.

The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on September 8, 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 businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted; finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. 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.

§519.24.Committee Recommendations.

(a) At the conclusion of its investigation the Committee will make a recommendation to the board regarding the disposition of the investigation.

(b) If the Committee determines the board no longer has jurisdiction, there is insufficient evidence of a violation of the Act or the Rules or the Respondent comes into compliance with the Act or Rules, the Committee may [will] recommend dismissal of the complaint. The Committee will inform the Respondent of its recommendation and may issue a letter of comment stating the Committee's concerns about Respondent's practice and make suggestions that may improve Respondent's practice. The Committee's recommendation of dismissal is not final until it is ratified by the board in an open meeting.

(c) If the Committee determines that there is a violation of the Act or Rules, the Committee may [will] recommend appropriate disciplinary action. The Committee may recommend any disciplinary sanction provided in Section 901.501 of the Act, singularly or any combination. The Respondent will be informed of the Committee's action.

(d) In the appropriate case, the Committee will offer to enter into an agreed consent order with the Respondent. The agreed consent order shall contain the Committee's factual findings and conclusions, and the recommended terms and conditions for final resolution of the matter. The Respondent will have a specified number of [30 ] days in writing to accept or reject the agreed consent order in accordance with §519.3 of this title (relating to Computation of Time). A rejection must be made in writing; however, failure to accept or reject the proposed agreed consent order within the specified number of days [30 day period] will be deemed a rejection. An agreed consent order is not final until it has been ratified by the board in an open meeting. If the agreed consent order is rejected the matter will be referred to SOAH for a contested case hearing.

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 28, 2008.

TRD-200803851

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


22 TAC §519.25

The Texas State Board of Public Accountancy (Board) proposes an amendment to §519.25, concerning Mediation and Alternative Dispute Resolution.

The amendment to §519.25 will add the word "to" in subsection (c).

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 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 clarification regarding when a respondent can request mediation in a disciplinary matter.

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 apply to small businesses.

Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.

The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on September 8, 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 businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted; finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. 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.

§519.25.Mediation and Alternative Dispute Resolution.

(a) It is the board's policy to encourage the resolution and early settlement of all disputed matters, internal and external, through voluntary settlement procedures.

(b) The executive director shall designate a board employee as the board's Alternative Dispute Resolution Director to perform the following functions:

(1) maintain necessary agency records of alternative dispute resolution procedures while maintaining the confidentiality of participants;

(2) establish a method for the appointment of impartial third party mediators, moderators or arbitrators for alternative dispute resolution proceedings;

(3) provide information about available alternative dispute resolution processes to agency employees, potential users, and users of the alternative dispute resolution program;

(4) arrange training or education necessary to implement alternative dispute resolution processes; and

(5) establish a system to evaluate the alternative dispute resolution program and mediators.

(c) The board, a committee of the board, a respondent in a disciplinary matter pending before the board, the executive director of the board or a board employee engaged in a dispute with the executive director may request that a contested matter be submitted for alternative dispute resolution through mediation as described in §154.023 of the Texas Civil Practice and Remedies Code, moderated settlement conference as described in §154.025 of the Texas Civil Practice and Remedies Code, and non-binding arbitration as described in §154.027 of the Texas Civil Practice and Remedies Code by making a written request for alternative dispute resolution that states the type of alternative dispute resolution requested and sets forth the issues to be submitted for alternative dispute resolution. A respondent in a disciplinary proceeding may not request mediation until a recommendation regarding that disciplinary matter has been made to a Committee of the board. The request must be delivered to the Alternative Dispute Resolution Director at the board's office.

(d) The party who requests alternative dispute resolution shall pay the cost of the impartial third party mediator, moderators or arbitrators and shall otherwise bear their own costs of alternative dispute resolution.

(e) Any resolution reached as a result of an alternative dispute resolution procedure is intended to be through the voluntary agreement of all of the parties. The resolution of a contested matter reached as a result of an alternative dispute resolution procedure must be in writing, signed by all of the parties, and is enforceable in the same manner as any other written contract; provided however, that any signed resolution that purports to bind the board must be ratified by the board and may be made public depending upon the terms of the agreed resolution.

(f) A communication relating to the subject matter made by a party in an alternative dispute resolution procedure is confidential, is not subject to disclosure, and may not be used as evidence in any further proceeding. Any notes or record made of an alternative dispute resolution procedure are confidential, and parties, including impartial third party mediators, moderators, or arbitrators may not be required to testify in any proceedings relating to or arising out of the matter in dispute or be subject to process requiring disclosure of confidential information or data relating to or arising out of the matter in dispute or under consideration. An oral communication or written material used in or made a part of an alternative dispute resolution procedure is admissible or discoverable only if it is admissible or discoverable independent of the procedure. If this section conflicts with other legal requirements for disclosure of communications or materials, the issue of confidentiality may be presented to a judge or administrative law judge in Travis County, Texas to determine, in camera, whether the facts, circumstances, and context of the communications or materials sought to be disclosed warrant a protective order or whether the communications or materials are subject to disclosure.

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 28, 2008.

TRD-200803852

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


SUBCHAPTER C. PROCEEDINGS AT SOAH

22 TAC §519.40

The Texas State Board of Public Accountancy (Board) proposes an amendment to §519.40, concerning General Provisions.

The amendment to §519.40 will add the phrase "determine the sanctions and" in subsection (a).

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 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 definitive statement that the Board reserves the right to determine sanctions in disciplinary cases.

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 apply to small businesses.

Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.

The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on September 8, 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 businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted; finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. 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.

§519.40.General Provisions.

(a) The board appoints SOAH to be its finder of fact in contested cases pursuant to section 901.508 of the Act. The board does not delegate to the ALJ and retains for itself the right to determine the sanctions and make the final decision in any contested case.

(b) SOAH hearings of contested cases shall be conducted in accordance with the APA by an ALJ assigned by SOAH. Jurisdiction over the case is acquired by SOAH when the board staff files a request to docket case.

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 28, 2008.

TRD-200803853

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


CHAPTER 519. PRACTICE AND PROCEDURE

The Texas State Board of Public Accountancy (Board) proposes the repeal of §§519.41 concerning Pleadings in Contested Cases, 519.42 concerning Service in SOAH Preceedings, 519.44 concerning Default, 519.45 concerning Discovery, 519.46 concerning Official Notice and Business Records Affidavit, 519.47 concerning Waiver of Privilege/Confidentiality, 519.48 concerning Final Witness List, 519.49 concerning Exhibits, 519.50 concerning Reporter and Transcripts, 519.51 concerning Evidence, 519.52 concerning Motions, 519.53 concerning Dismissal by the Board and 519.70 concerning Proposals for Decision.

The proposed repeal of §§519.41, 519.42, 519.44, 519.45, 519.46, 519.47, 519.48, 519.49, 519.50, 519.51, 519.52, 519.53 and 519.70 will remove rules that are no longer relevant.

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 more streamlined rules that are consistent with procedural rules promulgated by the State Office of Administrative Hearings.

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 concern small businesses.

Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the repeal amendment will not adversely affect small or micro 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 September 8, 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 repeal will have an adverse economic effect on small businesses; if the repeal is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted: finally, describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. See Texas Government Code, §2006.002.

SUBCHAPTER C. PROCEEDINGS AT SOAH

22 TAC §§519.41, 519.42, 519.44 - 519.53

(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 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.

§519.41.Pleadings in Contested Cases.

§519.42.Service in SOAH Preceedings.

§519.44.Default.

§519.45.Discovery.

§519.46.Official Notice and Business Records Affidavit.

§519.47.Waiver of Privilege/Confidentiality.

§519.48.Final Witness List.

§519.49.Exhibits.

§519.50.Reporter and Transcripts.

§519.51.Evidence.

§519.52.Motions.

§519.53.Dismissal 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 July 28, 2008.

TRD-200803861

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


SUBCHAPTER D. PROCEDURES AFTER HEARING

22 TAC §519.70

(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 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.

§519.70.Proposals for Decision.

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 28, 2008.

TRD-200803873

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


SUBCHAPTER C. PROCEEDINGS AT SOAH

22 TAC §519.43

The Texas State Board of Public Accountancy (Board) proposes an amendment to §519.43, concerning Emergency Suspension.

The amendment to §519.43 will replace the phrase "inconvenient for any member of the Committee" with the phrase "difficult or impossible" in subsection (c).

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 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 regarding emergency suspensions that is consistent with the Open Meetings 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 apply to small businesses.

Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.

The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on September 8, 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 businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted; finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. 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.

§519.43.Emergency Suspension.

(a) Whenever the board, through its Executive Committee, determines that a certificate or registration holder is engaged in or about to engage in an act of fraud or a violation of the Act and the certificate or registration holder's continued practice constitutes an immediate threat to the public welfare, the board, through its Executive Committee, may issue an order temporarily suspending the certificate or registration holder's license without notice and without a hearing. An order temporarily suspending a license issued by the Executive Committee must be ratified by the board at its next regularly scheduled meeting.

(b) "Immediate threat to the public welfare" means a real and present danger to clients caused through the certificate or registration holder's lack of competence, impaired status, or failure to adequately service clients. A "real and present danger" exists if clients have a likely exposure to or significant risk of loss of funds or records or financial injury and is based on actual actions or inactions of the certificate or registration holder. The Executive Committee may consider information that the certificate or registration holder previously committed similar actions or inactions in determining whether the certificate or registration holder poses an immediate threat to commit such actions or inactions in the future.

(c) Pursuant to Chapter 551 of the Texas Government Code (relating to Open Meetings), the Executive Committee may hold a meeting by telephone conference call if immediate action is required and the convening at one location of the Executive Committee is difficult or impossible [ inconvenient for any member of the Committee]. Whenever possible, the Executive Committee will attempt to provide the certificate or registration holder with notice and an opportunity to be present at the emergency suspension proceeding.

(d) The determination of the Executive Committee may be based not only on evidence admissible under the Texas Rules of Evidence, but may be based on information of a type on which a reasonably prudent person commonly relies in the conduct of the person's affairs. Presentations by the parties may be based on evidence or information and shall not be excluded on objection of a party unless determined by the chair that the evidence or information is clearly irrelevant or unduly inflammatory in nature; however, objections by a party may be noted for the record. Witnesses may provide sworn statements in writing or verbally and may choose to provide statements that are not sworn. However, whether a statement is sworn may be a factor to be considered by the Executive Committee in evaluating the weight to be given to the statement. Questioning of witnesses by board staff, the Respondent or Executive Committee members is under the control of the Executive Committee chair.

(e) The Executive Committee shall immediately serve notice of the suspension on the certificate or registration holder in accordance with section 901.5045(b) of the Act. The suspended certificate or registration holder shall be provided the opportunity to request a hearing in accordance with §901.5045(c) of the Act. The hearing shall be conducted in the manner of a contested case pursuant to the Act, the APA, the board's rules and SOAH's rules; provided that time limits provided in §901.5045(c) of the Act shall control. At the close of the hearing, the ALJ shall recommend to the Executive Committee whether to uphold, vacate or modify the suspension order. If the ALJ's recommendation is to vacate the emergency suspension order, the Executive Committee shall determine whether to adopt that recommendation no later than the second day after it receives that recommendation.

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 28, 2008.

TRD-200803854

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


SUBCHAPTER D. PROCEDURES AFTER HEARING

22 TAC §519.71

The Texas State Board of Public Accountancy (Board) proposes an amendment to §519.71, concerning Exceptions and Replies.

The amendment to §519.71 will add the statement to subsection (d) "The presiding officer may waive the twenty day notice requirement if such action would best serve the public interest."

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 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 greater flexibility when determining if and/or when oral arguments will be made before the Board.

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 apply to small businesses.

Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.

The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on September 8, 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 businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted; finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. 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.

§519.71.Exceptions and Replies.

(a) Exceptions to the PFD and any replies to exceptions must be filed within the time specified in SOAH's rules.

(b) The form of exceptions and replies is governed by SOAH's rules.

(c) Each exception or reply to a finding of fact or conclusion of law shall be concisely stated and shall summarize the evidence in support thereof. Arguments shall be logical and citations to authorities shall be complete.

(d) Any party may request oral argument before the board after service of the PFD and disposition of the exceptions, if any, and before the board's final determination of the matter. The written request for oral argument must be filed with the Board's Executive Director no later than 5:00 p.m. on the twentieth day prior to the board meeting at which the matter is to be considered. The presiding officer may waive the twenty day notice requirement if such action would best serve the public interest. Oral argument is allowed only at the discretion of the board. In the event oral argument is granted by the board, each party will be notified of the time and place of the argument and the amount of time allotted for the presentation. Only one spokesman per party and position will be allowed to speak. At the conclusion of the presentation, board members may ask questions of the person who made the presentation. Under no circumstances may any party making oral argument to the board refer to or urge reliance on materials that are not part of the administrative record.

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 28, 2008.

TRD-200803855

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


CHAPTER 526. BOARD OPINIONS

22 TAC §526.1

The Texas State Board of Public Accountancy (Board) proposes an amendment to §526.1, concerning Issuance of Opinions.

The amendment to §526.1 will replace the phrase "fact situations" with the phrase "facts specific to the situation and".

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 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 clarity regarding the scope of opinions issued by the Board.

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 apply to small businesses.

Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.

The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on September 8, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe Street, 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 businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted; finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. 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.

§526.1.Issuance of Opinions.

The board may issue opinions upon the written request of any person. These opinions shall be based on actual facts specific to the situation and [fact situations] submitted in accordance with board instructions and shall be limited to areas within the board's jurisdiction.

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 28, 2008.

TRD-200803856

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


22 TAC §526.2

The Texas State Board of Public Accountancy (Board) proposes an amendment to §526.2, concerning Procedure.

The amendment to §526.2(a) will add the phrase "determine if the opinion request is appropriate for board consideration and"; replace the word "recommend" with the phrase "if so submit a recommended"; and add the statement "The board may decline to consider requests for opinions on interpretations of the Public Accountancy Act or board rules from persons involved in litigation".

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 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 clarity regarding the circumstances under which the Board may issue opinions.

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 apply to small businesses.

Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.

The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on September 8, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe Street, 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 businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted; finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. 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.

§526.2.Procedure.

(a) The appropriate board committee will review requests for opinions and determine if the opinion request is appropriate for board consideration and if so submit a recommended [ recommend] action to the board. The board may decline to consider requests for opinions on interpretations of the Public Accountancy Act or board rules from persons involved in litigation. All recommendations will be submitted for consideration by the board at a regularly scheduled meeting.

(b) The board will consider the recommendation of the committee and will:

(1) decline to ratify the recommendation of the committee;

(2) approve or amend the recommendation of the committee and issue an opinion; or

(3) take such other action as the board may deem appropriate.

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 28, 2008.

TRD-200803857

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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


22 TAC §526.3

The Texas State Board of Public Accountancy (Board) proposes an amendment to §526.3, concerning Advisory Opinions.

The amendment to §526.3 will add the word "and", add the word "specific", replace the phrase "unless ratified by the board at a regularly scheduled board meeting" with the phrase "on the board"; and add the sentence "Board staff may respond to routine questions without the need for issuing formal staff opinions".

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 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 clarification regarding the scope of opinions issued by Board staff.

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 apply to small businesses.

Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.

The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on September 8, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe Street, 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 businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted; finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. 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.

§526.3.Advisory Opinions.

The board's staff or board members may issue an opinion to any person with a cover letter clearly identifying that the opinion is advisory in nature, and is restricted to the specific fact situation identified in the opinion, and is not binding on the board [unless ratified by the board at a regularly scheduled board meeting]. Board staff may respond to routine questions without the need for issuing formal staff opinions.

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 28, 2008.

TRD-200803858

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 7, 2008

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