Adopted Sections
An agency may take final action on a section 30 days after a proposal has been 
published in the Texas Register. The section becomes effective 20 days after the 
agency files the correct document with the Texas Register, unless a later date 
is specified or unless a federal statute or regulation requires implementation 
of the action on shorter notice.
If an agency adopts the section without any changes to the proposed text, only 
the preamble of the notice and statement of legal authority will be published. 
If an agency adopts the section with changes to the proposed text, the proposal 
will be republished with the changes.
TITLE 22. EXAMINING BOARDS
Part XXII. Texas State Board of Public Accountancy
Chapter 501. Professional Conduct
General Provisions
22 TAC sec.501.2
The Texas State Board of Public Accountancy adopts an amendment to sec.501.2, 
concerning definitions, with changes to the proposed text as published in the 
July 30, 1991, issue of the Texas Register (16 TexReg 4126). The amendment added 
the following definitions: "charitable organizations," "good standing", and 
"licensee," moved from another section of the rules.
This section is necessary in order to ensure that the rules defining public 
accountancy will be consistent with the Public Accountancy Act of 1991.
The rule amends the definition of the practice of public accountancy, and moves 
existing definitions into one section.
No comments were received regarding adoption of the amendment.
The amendment is adopted under Texas Civil Statutes, Article 41a-1, sec.6(a), 
which provide the Texas State Board of Public Accountancy with the authority to 
promulgate rules relating to definitions used in the rules of professional 
conduct.
sec.501.2. Definitions.  The following words and terms, when used in this 
chapter, shall have the following meanings, unless the context clearly indicates 
otherwise.
   Act-The Public Accountancy Act of 1991, Texas Civil Statutes Article 41a-1, 
1991.
   Charitable organization -An organization which has been granted tax exempt 
status under the Internal Revenue Code of 1986, sec.501(e), as amended.
   Corporation-A professional public accounting corporation organized under the 
Texas Professional Corporation Act, as amended (Texas Civil Statutes, Article 
1528e), or other corporation authorized by applicable statutes, or an equivalent 
law of another state, territory, or foreign country.
   Firm-A proprietorship, partnership, or professional or other corporation, or 
other business engaged in the practice of public accountancy.
   Good standing-Compliance by a certificate or registration holder with the 
licensing regulations of the board, including the mandatory continuing education 
requirements and payment of the annual license fee, and any penalties and other 
costs attached thereto. In the ease of board-imposed disciplinary or 
administrative sanctions, the certificate or registration holder must have 
complied with all the provisions of the board order to be considered in good 
standing.
   Licensee-The holder of a license by the board to a certificate or 
registration holder pursuant to the Act, or pursuant to provisions of a prior 
law or prior public accountancy act.
   Person-An individual, partnership, corporation, or other legal entity.
   Practice of public accountancy-The offer to perform or performance by a 
person holding himself out to the public as a certificate or registration holder 
for a client or client, or the performance by a certificate or registration 
holder for a client of a service involving the use of accounting, attesting, or 
auditing skills. The phrase "service involving the use of accounting, attesting, 
or auditing skills" includes:
(A) the issuance of reports on, or the preparation of, financial statements;
(B) the furnishing of management or financial advisory or consulting services; 
and
(C) the preparation of tax returns or the furnishing of advice or consultation 
on tax matters; or
(D) when performed by a person or practice unit licensed under this Act, the 
preparation of, or reporting on, a financial statement when the financial 
statement or report is to be used by an investor, except for a report prepared 
for internal use by the management of an organization, a third party, or a 
financial institution, or the preparation of a tax return if the tax return is 
filed with a taxing authority, as well as the supervision of those activities.
   Practice unit-An office of a firm required to be registered with the board 
for the purpose of practicing public accountancy.
   Sole proprietorship -An unincorporated firm that is owned and controlled by 
one person engaged in the practice of public accountancy.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on October 30, 1991.
TRD-9113944
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: November 27, 1991
Proposal publication date: July 30, 1991
For further information, please call: (512) 450-7066
       
TITLE 22. EXAMINING BOARDS
Part XXII. Texas State Board of Public Accountancy
Chapter 511. Certification as CPA
Education Requirements
22 TAC sec.511.57
The Texas State Board of Public Accountancy adopts an amendment to sec.511. 57, 
concerning definition of accounting courses, with changes to the proposed text 
as published in the July 30, 1991, issue of the Texas Register  (16 TexReg 
4131). The section is adopted with changes to paragraph (1)(A) and (2)(D).
This amendment is necessary to ensure that examination applicants meet certain 
standards of educational achievements.
The amendment strengthens the educational requirements for examination 
applicants.
Nineteen written comments were submitted to the board; six persons submitted 
oral comments at a public hearing at the offices of the Texas State Board of 
Public Accountancy on August 8, 1991; three of the six speakers had already 
submitted written comments.
Fourteen commenters recommended that the rule be scheduled to go into effect at 
a later date. Eight commenters opposed the exclusion of elementary accounting 
courses from the core accounting requirements. Fourteen commenters supported the 
exclusion of elementary accounting courses from the core accounting 
requirements. One commenter supported exclusion of only three hours of 
elementary accounting courses from the core accounting requirements.
President of Incarnate Word College supported exclusions of elementary 
accounting courses from core requirements.
Senior lecturers and accounting faculty advisors, the University of Texas at 
Dallas stated that the rule should go into effect at a later date and that three 
semester hours of credit for elementary accounting should be accepted.
Assistant professor at the University of Mary Hardin-Baylor stated that the rule 
should go into effect at a later date.
Professor and director, College of Business, Division of Accounting and 
Information Systems, the University of Texas at San Antonio supported the 
exclusion of elementary accounting courses from core requirements.
Professor of Accounting at San Angelo University stated that the rule should go 
into effect at a later date and opposed the exclusion of elementary accounting 
courses from the core.
Chairman of Dean's Council, North Harris/Montgomery County Community College 
District opposed the exclusion of elementary accounting courses from the core 
requirements.
Chair, Department of Accounting and Information Systems at Prairie View A&M 
University supported exclusion of elementary accounting courses and stated that 
the rule should go into effect at a later date.
Stanley H. Kaplan CPA Review and CPE supported exclusion of elementary 
accounting courses from core requirements and stated that, the rule should go 
into effect at a later date.
Professor, University of Texas at Arlington supported exclusion of elementary 
accounting courses from core requirements.
Hill College opposed exclusion of elementary accounting courses.
Dallas County Community College District Accounting Committee opposed exclusion 
of elementary accounting courses and stated that the rule should go into effect 
at a later date.
Interm chair, Department of Accounting, College of Business Administration, the 
University of Texas at El Paso supported exclusion of elementary accounting 
courses from core requirements and stated that the rule should go into effect at 
a later date.
Southwest Texas State University supported exclusion of elementary accounting 
courses.
Cooper & Lybrand opposed exclusion of elementary accounting courses from core 
requirements.
Vice-President, Brazosport College opposed exclusion of elementary accounting 
courses from core requirements.
Associate Professor of Accounting, College of Business, Division of Accounting 
and Information Systems, the University of Texas at San Antonio supported 
exclusion of elementary accounting courses from core requirements and stated 
that the rule should go into effect at a later date.
Chairman, Department of Accounting at Stephen F. Austin State University opposed 
exclusion of elementary accounting courses from core requirements and stated 
that the rule should go into effect at a later date.
Professor of Accounting and Associate Dean for Academic Affairs, commenting on 
behalf of the accounting faculty at Rice University, opposed exclusion of 
elementary accounting courses from core requirements.
Chairman, Department of Accounting and Computer Information Systems, Texas A&I 
University supported exclusion of elementary accounting courses from core 
requirements and stated that the rule should go into effect at a later date.
Director, Professional Program in Accounting, College of Business 
Administration, the University of Texas at Austin supported exclusion of 
elementary accounting courses from core requirements and stated that the rule 
should go into effect at later date.
Professor of Accounting, Rice University opposed exclusion of elementary 
accounting courses from core requirements.
The board agrees with the commenters expressing concern about the effective date 
and has changed the effective date to September 1, 1997. The board also agrees 
with the comments that expressed support for excluding elementary accounting 
courses from the core accounting requirements.
However, the board did not agree with the commenters who opposed exclusion of 
elementary accounting courses from the core accounting requirements, because the 
board believes that the amendment is necessary in order to ensure that 
applicants meet high standards of educational achievement. The board believes 
that a minimum of 30 advanced course hours is needed in order to assure the 
public that the CPA has an adequate background in the basic courses.
The amendment is adopted under Texas Civil Statutes, Article 41-1, sec.6(a) 
which provides the Texas State Board of Public Accountancy with the authority to 
promulgate rules relating to education requirements.
sec.511.57. Definition of Accounting Courses. The board will accept not fewer 
than 30 passing semester hours of accounting courses (without repeat), taken at 
a recognized educational institution shown on official transcripts, of which 20 
semester hours must be in core accounting courses, in the following subject 
areas:
(1) accounting core courses:
(A) elementary accounting;
(B) intermediate accounting, advanced accounting;
(C) cost accounting;
(D) auditing, internal accounting control and evaluation;
(E) report writing (principally writing financial reports, internal control 
reports, and management letters);
(F) financial statement analysis;
(G) accounting theory;
(H) up to six semester hours of income tax;
(I) accounting for governmental and/or other nonprofit organizations; and
(J) accounting systems;
(2) other accounting courses:
(A) income tax accounting (not to exceed 10 semester hours, including hours in 
paragraph (1)(G) of this section);
(B) accounting consultation;
(C) accounting for specialized businesses or industries (such as fiduciaries, 
banks, etc.);
(D) any other course which is principally accounting or auditing in nature but 
which may be designated by some other name (and the verification of which is 
obtained in writing from the particular college or university). After the 
November 1997 examination, elementary accounting may not be considered under 
this title.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on October 30, 1991.
TRD-9113945
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: November 27, 1991
Proposal publication date: July 30, 1991
For further information, please call: (512) 450-7066
       
TITLE 40. SOCIAL SERVICES AND ASSISTANCE
Part I. Texas Department of Human Services
Chapter 29. Purchased Health Services
Subchapter G. Hospital Services
40 TAC sec.29.606
The Texas Department of Human Services (DHS) adopts an amendment to sec.29. 606, 
without changes to the proposed text as published in the October 1, 1991, issue 
of the Texas Register (16 TexReg 5393).
Justification for the amendment is that providers of services to Medicaid 
recipients will receive a higher reimbursement rate, resulting in continued 
provider enrollment and access to care.
The amendment will function by eliminating the 5.5% budgetary reduction factor 
which is applied to inpatient hospital admissions. (The budgetary reduction 
factor is also being eliminated from payments to physicians and other providers 
who are reimbursed on a reasonable charge basis. However, rule amendments are 
not necessary to eliminate the budgetary reduction factor in payments to these 
providers.)
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Human Resources Code, Title 2, Chap- ters 22 
and 32, which authorizes the department to administer public and medical 
assistance programs.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on November 7, 1991.
TRD-9114029
Nancy Murphy
Agency liaison, Policy and Document Support
Texas Department of Human Services
Effective date: December 1, 1991
Proposal publication date: October 1, 1991
For further information, please call: (512) 450-3765
       
TITLE 40. SOCIAL SERVICES AND ASSISTANCE
Part V. Veterans Land Board
Chapter 175. General Rules
40 TAC sec.175.17
The Veterans Land Board adopts an amendment to sec.175.17, concerning fees and 
deposits, with changes to the proposed text as published in the September 10, 
1991, issue of the Texas Register (16 TexReg 4934).
As a result of adopting the amendment, it is anticipated that the cost of 
running the veterans programs will be passed on to those individuals who utilize 
the services of the board and the public will not have to subsidize that 
expense.
As adopted, this amendment will incorporate application, bid, and mineral lease 
assignment fees into the rules of the board. As proposed, the amendment provided 
for an increase in the returned check fee to $25. After review of the matter the 
board decided not to increase the returned check fee at this time.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the provisions of the Natural Resources Code, 
sec.161.061 and sec.161.063, which authorize the Veterans Land Board to adopt 
rules that is considers necessary or advisable to ensure the proper 
administration of the Veterans Land Program.
sec.175.17. Fees and Deposits. In addition to the fees cited in this chapter, 
the board is authorized and required to collect the following fees when they are 
applicable:
(1)-(10) (No change.)
(11) returned check fee-$15;
(12) application packet fee-$25;
(13) forfeited land sale bid fee-$25;
(14) mineral lease assignment fee-$25.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on August 28, 1991.
TRD-9114047
Garry Mauro
Chairman
Veterans Land Board
Effective date: November 29, 1991
Proposal publication date: September 10, 1991
For further information, please call: (512) 463-5394
       
Chapter 177. Veterans Housing Assistance Program
40 TAC sec.177.8, sec.177.9
The Veterans Land Board adopts amendments to sec.177.8 and sec.177.9, concerning 
qualifying homes and fees, expenses, and interest. Section 177.8 is adopted with 
changes to the proposed text as published in the September 10, 1991, issue of 
the  Texas Register (16 TexReg 4934). Section 177.9 is adopted without changes 
and will not be republished.
The amendment for sec.177.8 provides that for purposes of the veterans housing 
assistance program a modular home and HUD Code manufactured homes are as defined 
in Texas Civil Statutes, Article 5221f, as amended. It also provides that the 
board will establish qualification requirements for home improvement loans, 
whether FHA Title 1 insured, or privately insured. The amendment to sec.177.9 
provides a listing of fees and charges for participating in the housing 
assistance and home improvement loan programs, provides that such fees and 
charges are approved as a part of the program and servicing guide, and that such 
fees shall be consistent with the prudent lending practices prevalent in the 
residential mortgage lending industry.
The amendment to sec.177.8 will drop certain references to provisions of Article 
5221f which have been repealed, and provides for the use of private mortgage 
insurance in the home improvement loan program. The amendment to sec.177. 9 will 
clarify the fees to be charged veterans for participating in the housing and 
home improvement loan programs and list those fees which the board has 
determined to be prevalent in the residential mortgage lending industry.
No comments were received regarding adoption of the amendments.
The amendments are adopted under the Natural Resources Code, sec.162.003, which 
authorizes the Veterans Land Board to adopt rules governing the administration 
of the housing fund and program.
sec.177.8. Qualifying Homes.
(a)-(c) (No change.)
(d) In addition to any requirements or specifications placed on the type and 
quality of home by the participating lending institution, the home must be on a 
permanent foundation that is part of the real estate. "HUD-code manufactured 
homes" as defined by Texas Civil Statutes, Article 5221f, sec.3 are eligible 
under the program if they meet FNMA or FHLMC guidelines; however, "mobile homes" 
as defined by Texas Civil Statutes, Article 5221f, sec.3 are not eligible. Any 
other type of home will be considered on a case-by-case basis by the 
administrator under guidelines approved by the board.
(e) The home in which a veteran actually resides may be eligible for a home 
improvement loan (as such loans are commonly defined in the real estate lending 
industry) if the home and the veteran meet the qualification requirements 
established by the board for a home improvement loan. The board will adopt 
guidelines setting forth the requirements for obtaining a home improvement loan 
through the program, whether FHA Title I or other. The guidelines will be 
provided to all participating lending institutions.
This agency hereby certifies that the rule as adopted has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Issued in Austin, Texas, on November 7, 1991.
TRD-9114048
Garry Mauro
Chairman
Veterans Land Board
Effective date: November 29, 1991
Proposal publication date: September 10, 1991
For further information, please call: (512) 463-5394