Part 6.
TEXAS BOARD OF PROFESSIONAL ENGINEERS
Chapter 131.
PRACTICE AND PROCEDURE
Subchapter B. APPLICATION FOR LICENSE
22 TAC §131.52
The Texas Board of Professional Engineers proposes to amend §131.52,
relating to Applications for a Professional Engineer License. Section 131.52
currently sets forth what must be included as part of a person's application
to the board for licensure as a professional engineer.
The proposed amendment adds language to clarify that a person must list
his or her full, legal name on the application for licensure as a professional
engineer without nicknames or abbreviations. The amendment also requires by
rule the applicant to submit proof of a legal name change to substantiate
other required documentation submitted with the application such as transcripts
or examination results.
David J. Lusk, P.E., Director of Licensing for the board, has determined
that for the first five-year period the section as amended is in effect, there
will be no fiscal implications for state or local government as a result of
enforcing or administering the section as amended.
Mr. Lusk has also determined that for each year of the first five years
the section as amended is in effect, the public benefit anticipated as a result
of enforcing and administering the proposed amendment will be that persons
who intend to apply or are applying to be licensed as a professional engineer
in Texas will receive more specific guidance regarding what information is
required by the board, thereby reducing the possibility that applicants will
submit incomplete applications and, therefore, allowing the board to evaluate
applications for licensure more thoroughly and in a more timely manner. For
the same period, there is no anticipated adverse economic effect on small
or micro-businesses.
Mr. Lusk has determined that for each of the first five years the section
as amended is in effect, there may be a minimal economic cost to certain persons
who are required to comply with the amendment as proposed. In such a case,
the rule requires the applicant to obtain such documentation from the courts
or other authorities and, if necessary, if required by that authority to pay
a fee to the authority for the documentation. In most cases, the cost of obtaining
such documentation is estimated to consist of a fee of $25 or less or nominal
charges assessed by the authority to cover its own costs associated with providing
the copies.
Comments may be submitted, no later than September 8, 2003, to David J.
Lusk, Director of Licensing, Texas Board of Professional Engineers, 1917 IH
35 South, Austin, Texas 78741 or faxed to his attention at (512) 442-1414.
The amendment is proposed pursuant to the Texas Engineering Practice
Act, Occupations Code §1001.202 (formerly Texas Revised Civil Statutes
Annotated article 3271a, §8), which authorizes the board to make and
enforce all rules and regulations and bylaws consistent with the Act as necessary
for the performance of its duties, the governance of its own proceedings,
and the regulation of the practice of engineering in this state; and pursuant
to the Texas Engineering Practice Act, Occupations Code §1001.302 (formerly
Texas Revised Rival Statutes Annotated article 3271a, §12) of the Act,
which delegates to the board the authority to evaluate applications and sets
forth general licensure requirements.
The following are the statutes, articles, or codes affected by the proposed
amendment:
Section 131.52--Occupations Code §1001.202 and §1001.302 (formerly
Texas Revised Rival Statutes Annotated article 3271a, §8 and §12).
§131.52.Applications for a Professional Engineer License.
(a) - (c)
(No change.)
(d)
Applications for a license shall be submitted on forms
prescribed by the board, sworn under oath and accompanied by the current application
fee.
On the application, the applicant shall list his or her full, legal
and complete name without abbreviations, nicknames, or other variations of
the full legal name. If applicable, the applicant shall submit proof of a
legal name change including but not limited to a marriage certificate, passport,
court documents, or nationalization documents to substantiate other documentation
submitted in the application.
(e) - (i)
(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, 2003.
TRD-200304550
Victoria J.L. Hsu, P.E.
Executive Director
Texas Board of Professional Engineers
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 440-7723
22 TAC §131.92
The Texas Board of Professional Engineers proposes amendments
to §131.92, relating to Proof of Educational Requirements--Non-Accredited/
Non-Approved Programs. The proposed amendment modifies the evaluation requirements
required for a degree evaluation for those applicants with sufficient years
of engineering experience to qualify under §1001.302 of the Texas Engineering
Practice Act (Act). The proposed amendment allows for the applicant to forego
a detailed comparison in the evaluation to the Accreditation Board for Engineering
and Technology program criteria since the applicant meets the requirements
in §1001.302 of the Act.
David J. Lusk, P.E., Director of Licensing for the board, has determined
that for the first five-year period the proposed amendment is in effect, there
will be no fiscal implications for state or local government as a result of
enforcing or administering the section as amended.
Mr. Lusk has also determined that for each year of the first five years
the amendment is in effect, the public benefit anticipated as a result of
enforcing and administering the proposed amendment will be that applicants
will be able to avoid increased costs for the more detailed evaluation which
grants no additional benefits to the applicants requiring degree evaluation
but possessing the minimum eight years of experience to qualify under §1001.302
of the Act.
Mr. Lusk has also determined that, for each year of the first five years
the proposed amendment is in effect, there is no anticipated adverse economic
effect on small or micro-businesses.
Comments may be submitted, no later than September 8, 2003, to David J.
Lusk, P.E., Director of Licensing, Texas Board of Professional Engineers,
1917 IH 35 South, Austin, Texas 78741 or faxed to his attention at (512) 442-1414.
The amendment is proposed pursuant to the Texas Engineering Practice
Act, Occupations Code §1001.202 (formerly Texas Revised Civil Statutes
Annotated article 3271a, §8), which authorizes the board to make and
enforce all rules and regulations and bylaws consistent with the Act as necessary
for the performance of its duties, the governance of its own proceedings,
and the regulation of the practice of engineering in this state; and pursuant
to the Texas Engineering Practice Act, Occupations Code §1001.302 (formerly
Texas Revised Civil Statutes Annotated article 3271a, §12) of the Act,
which delegates to the board the authority to evaluate applications and sets
forth general licensure requirements; and Occupations Code §1001. 309
(formerly §12.1) of the Act, which authorizes the board to evaluate and
approve applications from individuals who wish to be certified as an engineer-in-training.
The following are the statutes, articles, or codes affected by the proposed
amendment:
Section 131.92--Occupations Code §§1001.202. 1001.302, and 1001.309
(formerly Texas Revised Civil Statutes Annotated article 3271a, §§8,
12, and 12.1)
§131.92.Proof of Educational Qualifications--Non-Accredited/Non-Approved Programs.
(a)
An applicant for licensure who has graduated from a program
other than one that has been accredited or approved by any of the organizations
identified in §131.91(a)(1)(A) or (a)(2)(A) of this title (relating to
Educational Requirements for Applicants) shall furnish both an official transcript
(including either grades or mark sheets and proof that the degree was conferred)
and an evaluation for each degree to be relied upon to meet the educational
requirements of licensure as a professional engineer or certification as an
engineer-in-training. In addition to providing a transcript reflecting the
degree(s) earned by an applicant, the applicant shall also provide an official
transcript from each school from which more than 15 semester hours were earned
towards the degree.
(1)
(No change.)
(2)
The degree evaluation must:
(A) - (B)
(No change.)
(C)
a comparison of the applicant's
degree program to criteria of the Accreditation Board for Engineering and
Technology applicable to the applicant's year of graduation; and a determination
whether the curriculum of the degree program being evaluated meets the applicable
criteria;
(D)
[
(E)
[
(b)
(No change.)
(c)
Upon receipt or waiver of a commercial degree evaluation,
the executive director shall evaluate, under the standards of §131.91
(a)(1)(C) or
(a)(2)(B) of this title (relating to Educational Requirements
for Applicants), the curricula of a degree program that has not been accredited
or approved by any of the organizations identified in §131.91(a)(1)(A)
or (a)(2)(A) of this title.
(d)
If a transcript cannot be transmitted directly to the evaluation
service from the issuing institution, the executive director may, at his or
her discretion, approve an alternative method of evaluating the applicant's
educational qualifications, upon written request from the applicant explaining
why the transcript cannot be directly transmitted from the issuing institution.
An alternative method approved by the executive director may include validation
of transcript(s) in the applicant's possession through a commercial evaluation
service approved by the board. In the event the executive director approves
an alternative method such as validation of a transcript in the applicant's
possession by an evaluation service, the evaluation service shall forward
to the board
the evaluation and all documentation provided by the applicant
[
(e)
The board will not accept a commercial evaluation of a
degree in lieu of an official transcript or a validated transcript that was
in the applicant's possession.
An official transcript or validated transcript
must be submitted with the application.
(f)
An applicant seeking an educational credential
evaluation under this section but wishing to qualify for licensure only under §131.91(a)(2)(B)
of this title is exempt from the evaluation requirement in subsection (a)(2)(C)
of this section.
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, 2003.
TRD-200304551
Victoria J.L. Hsu, P.E.
Executive Director
Texas Board of Professional Engineers
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 440-7723
The Texas Board of Professional Engineers proposes amendments to §§131.101,
131.104 and 131.106, relating to Examinations and §131.113, relating
to Reconsideration of Non-Approved Applications or Examination Waivers. The
proposed amendments modify the existing rules to include provisions for complying
with the American with Disabilities Act for examination candidates, for adding
provisions to allow those applicants who have been called into active military
duty alternatives for examination scheduling, and for clarifying a recent
modification in the rule to allow currently licensed professional engineers
the ability to sit for an examination for record purposes. In addition, the
amendment to §131.113, clarifies the current board practice for requesting
an appeal to the Board's action on a denied application or examination waiver
request.
David J. Lusk, P.E., Director of Licensing for the board, has determined
that for the first five-year period the amended sections are in effect, there
will be no anticipated fiscal implications for state or local government as
a result of enforcing or administering the section.
Mr. Lusk has also determined that for each year of the first five years
the sections are in effect, the public benefit anticipated as a result of
enforcing and administering the amended sections will be that the board will
have rules regarding the compliance with ADA requirements, will have flexibility
in the examination schedule for those applicants who have been called into
active duty, and will be able to provide the regulated community clarity in
the application appeals process. Finally, Mr. Lusk has determined that, for
the first five years the section is in effect, there is no anticipated adverse
economic effect on small or micro-businesses, or anticipated economic cost
to persons who are required to comply with the sections as proposed.
Comments may be submitted, no later than September 8, 2003 to David J.
Lusk, P.E., Director of Licensing, Texas Board of Professional Engineers,
1917 IH 35 South, Austin, Texas 78741 or faxed to his attention at (512) 442-1414.
Subchapter F. EXAMINATIONS
22 TAC §§131.101, 131.104, 131.106
The amendments are proposed pursuant to the Texas Engineering
Practice Act, Occupations Code §1001.202 (formerly Texas Revised Civil
Statutes Annotated article 3271a, §8), which authorizes the board to
make and enforce all rules and regulations and bylaws consistent with the
Act as necessary for the performance of its duties, the governance of its
own proceedings, and the regulation of the practice of engineering in this
state; and pursuant to the Texas Engineering Practice Act, Occupations Code §1001.302
(formerly Texas Revised Civil Statutes Annotated article 3271a, §12)
of the Act, which delegates to the board the authority to evaluate applications
and sets forth general licensure requirements; and Occupations Code §1001.304
(formerly §14) of the Act, which sets forth requirements concerning examinations
to be administered by the board to applicants for licensure as a professional
engineer in Texas.
The following are the statutes, articles, or codes affected by the proposed
amendments:
Sections 131.101 ,131.104, 131.106--Occupations Code §§1001.202,
1001.302, and 1001.304 (formerly Texas Revised Civil Statutes Annotated article
3271a, §§8, 12, and 14)
§131.101.Engineering Examinations Required for a License to Practice as a Professional Engineer.
(a) - (h)
(No change.)
(i)
Examination candidates who have been called
into active U.S. military duty or who are re-assigned military personnel and
will not be available to sit for an examination may request the examination
cycle be postponed and any paid examination fees incumbered toward a future
examination date. Such candidates shall submit adequate documentation, including
copies of orders, and a request to postpone the examination cycle to the board.
The candidate shall notify the board within 60 days of release from active
duty or when deployed to a location providing access to sit for the examination
of their availability to resume the examination cycle.
(j)
All examinations shall be administered
to applicants with disabilities in compliance with the Americans with Disabilities
Act of 1990 (42 U.S.C. Section 12101 et seq.), and its subsequent amendments.
Special accommodations can be provided for examinees with physical or mental
impairments that substantially limit life activities.
(1)
Any individual with a disability who wishes to request
special accommodations must submit a Disability Assessment Form that has been
completed and signed by the examinee and an appropriate licensed health care
professional.
(2)
The Disability Assessment Form must be submitted at least
sixty (60) days prior to the examination to assure ample time to process the
request. Requests for special accommodations submitted less than sixty (60)
days prior to the date of the examination may not leave sufficient time for
approval with the testing service.
(3)
The board may request additional documentation to substantiate
a request for special accommodations.
(4)
The board will accept, review, and submit requests for
special accommodations to the testing service for approval and an examinee
will be notified of approval of the request or reason for denial of the request.
(k)
[
§131.104.Examination on the Principles and Practice of Engineering.
(a)
(No change.)
(b)
Applicants approved to take the examination on the principles
and practice of engineering shall:
(1) - (3)
(No change.)
(4)
have no more than four consecutive examination opportunities,
including the examination given on the date of the first available examination,
to pass the examination.
Except as provided for in §131.101(i) of
this title , no
[
(A) - (B)
(No change.)
(c) - (e)
(No change.)
§131.106.Examination for Record Purposes.
A licensed engineer
[
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, 2003.
TRD-200304552
Victoria J.L. Hsu, P.E.
Executive Director
Texas Board of Professional Engineers
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 440-7723
22 TAC §131.113
The amendment is proposed pursuant to the Texas Engineering
Practice Act, Occupations Code §1001.202 (formerly Texas Revised Civil
Statutes Annotated article 3271a, §8), which authorizes the board to
make and enforce all rules and regulations and bylaws consistent with the
Act as necessary for the performance of its duties, the governance of its
own proceedings, and the regulation of the practice of engineering in this
state; and pursuant to the Texas Engineering Practice Act, Occupations Code §1001.302
(formerly Texas Revised Civil Statutes Annotated article 3271a, §12)
of the Act, which delegates to the board the authority to evaluate applications
and sets forth general licensure requirements; and Occupations Code §1001.304
(formerly §14) of the Act, which sets forth requirements concerning examinations
to be administered by the board to applicants for licensure as a professional
engineer in Texas.
The following are the statutes, articles, or codes affected by the proposed
amendment:
Section 131.113--Occupations Code §§1001.202, 1001.302, and 1001.304
(formerly Texas Revised Civil Statutes Annotated article 3271a, §§8,
12, and 14)
§131.113.Reconsideration of Denied [
(a)
Reconsideration is not available to persons whose application
is
denied
[
(b)
If the application is
denied
[
(1) - (4)
(No change.)
(c)
If a valid request for reconsideration is received, the
application shall repeat the process of application review. Applicants whose
applications or requests for an examination waiver are
denied
[
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, 2003.
TRD-200304553
Victoria J.L. Hsu, P.E.
Executive Director
Texas Board of Professional Engineers
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 440-7723
2.
REGISTRATION OF FIRMS
22 TAC §§131.141 - 131.143
The Texas Board of Professional Engineers proposes amendments
to §§131.141 - 131.143, relating to Firm Registration. The proposed
amendments modify the existing rules to include provisions to clarify the
definition of "public" as referenced in the Act, to clarify the required information
necessary for firm registration and to clarify the board's interpretation
of a full-time employee of a part-time firm. In addition, the proposed amendments
clarify the firm renewal process, set deadlines for certificate expiration,
and clarify reporting requirements for firms no longer offering engineering
services to the public in Texas.
The proposed amendments clarify and formalize into rules the existing board
practices and procedures for firm registration. The intent of these modifications
is to aid those applying for firm registration better definitions and guidance
to ensure compliance with the rule. The Act does not prohibit an engineer
from practicing on a part-time basis; however, a firm that only operates on
a part-time basis must have a full-time employee who is a professional engineer
licensed in Texas. The proposed amendment clarifies the requirements of a
licensed engineer to fulfill the full-time employment requirements of a part-time
business.
David J. Lusk, P.E., Director of Licensing for the board, has determined
that for the first five-year period the amended sections are in effect, there
will be no anticipated fiscal implications for state or local government as
a result of enforcing or administering the sections.
Mr. Lusk has also determined that for each year of the first five years
the sections are in effect, the public benefit anticipated as a result of
enforcing and administering the amended sections will be that the general
and regulated public will have better guidance and rule clarity in which to
determine the necessity for firm registration and how to comply with the rules
in effect. Finally, Mr. Lusk has determined that, for the first five years
the section is in effect, there is no anticipated adverse economic effect
on small or micro-businesses, or anticipated economic cost to persons who
are required to comply with the sections as proposed.
Comments may be submitted, no later than September 8, 2003 to David J.
Lusk, Director of Licensing, Texas Board of Professional Engineers, 1917 IH
35 South, Austin, Texas 78741 or faxed to his attention at (512) 442-1414.
The amendments are proposed pursuant to the Texas Engineering
Practice Act, Occupations Code §1001.202 (formerly Texas Revised Civil
Statutes Annotated article 3271a, §8), which authorizes the board to
make and enforce all rules and regulations and bylaws consistent with the
Act as necessary for the performance of its duties, the governance of its
own proceedings, and the regulation of the practice of engineering in this
state; and pursuant to the Texas Engineering Practice Act, Occupations Code §1001.405
(formerly Texas Revised Civil Statutes Annotated article 3271a, §17 and §18),
which sets forth requirements for a firm to practice engineering within the
state.
The following are the statutes, articles, or codes affected by the proposed
amendment:
Sections 131.141 - 131.143--Occupations Code §1001.202 and §1001.405
(formerly Texas Revised Civil Statutes Annotated article 3271a, §§8,
17, and 18).
§131.141.Authority.
The Texas Board of Professional Engineers shall receive, evaluate,
and process all applications for a certificate of registration issued under
the authority of the Texas Engineering Practice Act (Act). Applications for
the certificate of registration shall be accepted from all firms offering
to engage or engaging in the practice of professional engineering for the
public in
Texas
[
§131.142.Application for a Certificate of Registration.
(a)
The board may issue a certificate of registration only
to applicant firms having submitted sufficient information to meet the requirements
set forth in [
(b)
The authorized official of the firm shall complete the
application form furnished by the board including but not limited to the following
listed in paragraphs (1) - (6) of this subsection:
(1)
the name, address, and communication
number
[
(2)
the name, position, address,
and
communication
numbers of each officer or director;
(3)
the name, address, current Texas professional engineer
license number of each
regular,
full-time engineer
employee
performing engineering for the public in Texas on behalf of the firm;
(4)
the name, location, and communication numbers of each subsidiary
or branch office offering
to engage or engaging in the practice of professional
engineering for
[
(5)
a signed statement
[
(6)
a
[
(c)
For a firm that operates only on a part-time
basis, the engineer who has physical presence, is an employee of the firm,
and offers or performs the engineering work or who directly supervises the
engineering work while the firm is in operation shall satisfy the requirement
of the regular, full-time employee.
(d)
The application fee will not be refunded.
§131.143. Registration Modification, Renewal and Expiration.
(a)
The certificate of registration shall be valid until the
last day of the
twelfth
[
(b)
No engineering services are to be offered or performed
for the public in Texas by a firm while that firm does not have a current
certificate of registration.
(c)
Notification in writing shall be given to the board within
fifteen (
15
)
calendar days of:
(1)
any change of the firm name
or address
;
(2)
any change in the
officers or directors;
[
(3)
change in the employment status
of
the
professional engineers of the firm;
(4)
[
(5)
[
(d)
A
[
(e)
If a certificate of registration has been
expired for more than one year, the firm must re-apply for certification under
the laws and rules in effect at the time of the new application and shall
be issued a new certificate of registration serial number if the new application
is approved.
(f)
[
[(f)
Notice in writing to the board by the
firm shall be given that the firm no longer offers or is providing engineering
services to the public in Texas or the firm may be subject to administrative
penalties.]
(g)
The [
(h)
If a firm has notified the board that
it is no longer offering or performing engineer services to the public, including
the absence of a regular, full-time employee who is a professional engineer
licensed in Texas, the certificate of registration record will be placed in
inactive status until the board is notified of resumed offering and services.
If firm certificate of registration is inactive, the certificate of registration
will expire under the same requirements of subsections (d) and (e) of this
section unless renewed.
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, 2003.
TRD-200304554
Victoria J.L. Hsu, P.E.
Executive Director
Texas Board of Professional Engineers
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 440-7723
22 TAC §131.162
The Texas Board of Professional Engineers proposes amendment
to §131.162, relating to Firm Compliance. The proposed amendment adds
language to the existing rule to include providing engineering services in
addition to the offering engineering services to reflect the statutory language
in Section 1001.405 of the Texas Engineering Practice Act.
Charles Pennington, P.E., Director of Compliance Assistance for the board,
has determined that for the first five-year period the amendment is in effect,
there will be no fiscal implications for state or local government as a result
of enforcing or administering the section as amended. The proposed rule change
serves to reflect the existing statutory language and enforcement practices
of the Board and staff.
Mr. Pennington has also determined that for each year of the first five
years the amendment is in effect, the public benefit anticipated as a result
of enforcing and administering the amended section will be that the regulated
and general public will be able to understand that offering and/or providing
engineering services to the public without certification is a violation of
the Act. Mr. Pennington has also determined that, for each year of the first
five years the proposed new section is in effect, there is no anticipated
adverse economic effect on small or micro-businesses as the amendment only
clarifies the existing practice and rule.
Comments may be submitted, no later than September 8, 2003, to Charles
Pennington, Director of Compliance Assistance, Texas Board of Professional
Engineers, 1917 IH 35 South, Austin, Texas 78741 or faxed to her attention
at (512) 442-1414.
The amendment is proposed pursuant to the Texas Engineering Practice
Act, Occupations Code §1001.202 (formerly Tex. Rev. Civ. Stat. Ann. art.
3271a, §8), which authorizes the board to make and enforce all rules
and regulations and bylaws consistent with the Act as necessary for the performance
of its duties, the governance of its own proceedings, and the regulation of
the practice of engineering in this state; and pursuant to the Texas Engineering
Practice Act, Occupations Code §1001.405 (formerly Tex. Rev. Civ. Stat.
Ann. art. 3271a, §§17 and 18), which sets forth requirements for
a firm to practice engineering within the state; and pursuant to the Texas
Engineering Practice Act, Occupations Code Subchapters J and K (formerly Tex.
Rev. Civ. Stat. Ann. art. 3271a, §§22 and 22C), which authorize
the board to impose certain sanctions and administrative penalties if the
board determines that violations of the Texas Engineering Practice Act and/or
board rules have occurred; and pursuant to the Texas Engineering Practice
Act, Occupations Code Subchapter L (formerly Tex. Rev. Civ. Stat. Ann. art.
3271a,§23), which authorizes the board to refer matters for criminal
prosecution if the board determines that violations of the Texas Engineering
Practice Act and/or board rules have occurred.
The following are the statutes, articles, or codes affected by the proposed
amendment:
§131.162 - Occupations Code §§1001.202 and 1001.405 and
Subchapters J, K, and L (formerly Tex. Rev. Civ. Stat. Ann. art. 3271a, §§8,
17, 18, 22, 22C and 23).
§131.162.Firm Compliance.
(a)
The board shall not consider any firm, partnership, association,
corporation, or other business entity as being in compliance with the Texas
Engineering Practice Act (Act), §17 and §18, unless a licensed professional
engineer is a regular full-time employee of the firm, partnership, association,
corporation or other business entity. The engineer shall provide to the board
evidence of such employment upon its request. This section does not prohibit
a licensed professional engineer from performing consulting engineering services
on a part-time basis as an individual. An engineering firm shall provide that
at least one full-time engineer employee directly supervises all engineering
work performed in branch, remote, or project offices.
(b)
In accordance with §17 of the Act and §131.141
of this title (relating to Authority), all sole proprietorships, firms, partnerships,
corporations and joint stock associations offering
and/or providing
engineering
services to the public must be registered by the board. Effective October
1, 2000, any qualifying entity under §17 of the Act that offers
and/or provides
consulting engineering services to the public and does
not hold a current certificate of registration with the board shall be considered
to be in violation of the Act and board rules and will be subject to administrative
penalties as set forth in §22C of the Act and §131.167(i) of this
title (relating to Disciplinary Actions).
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, 2003.
TRD-200304555
Victoria J.L. Hsu, P.E.
Executive Director
Texas Board of Professional Engineers
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 440-7723
22 TAC §131.167
The Texas Board of Professional Engineers proposes an amendment
to §131.167, relating to Disciplinary Actions. The proposed amendment
separates the infractions of practicing with an expired or suspended license
and modifies the penalties associated with each type of infraction.
The proposed amendment distinguishes between the intent of the license
holder while practicing without a valid license. In the case of practicing
with an expired license, the license holder may have not received notice and
paid the renewal timely. Although a violation of the Act and the Board processes
a substantial number of cases for practicing with an expired license, the
license holder does not exhibit a willful intent to defy the law and rules.
In the case of practicing with a suspended license, the Board has previously
disciplined the license holder and subsequent practice is a willful violation
of the Board authority. The Board believes the latter requires a more substantial
penalty and proposes to amend the rule accordingly. The proposed recommended
sanction for practicing with an expired license is a probated suspension of
the license and $500 fine. The proposed recommended sanction for practicing
with a suspended license is revocation and $3,000 fine.
Charles Pennington, P.E., Director of Compliance Assistance for the board,
has determined that for the first five-year period the amendment is in effect,
there will be no fiscal implications for state or local government as a result
of enforcing or administering the section as amended. The proposed rule change
serves to increase the penalty for deliberate and willful violation of a previous
sanction. Mr. Pennington has also determined that for each year of the first
five years the amendment is in effect, the public benefit anticipated as a
result of enforcing and administering the amended section will be that the
regulated and general public will be able to understand that, while practicing
engineering with an expired license is a violation of the Act, practicing
with a suspended license is a more severe violation. Mr. Pennington has also
determined that, for each year of the first five years the proposed amendment
is in effect, there is no anticipated adverse economic effect on small or
micro-businesses as the amendment only clarifies the existing practice and
rule.
Comments may be submitted, no later than September 8, 2003, to Charles
Pennington, Director of Compliance Assistance, Texas Board of Professional
Engineers, 1917 IH 35 South, Austin, Texas 78741 or faxed to his attention
at (512) 442-1414.
The amendment is proposed pursuant to the Texas Engineering Practice
Act, Occupations Code §1001.202 (formerly Tex. Rev. Civ. Stat. Ann. art.
3271a, §8), which authorizes the board to make and enforce all rules
and regulations and bylaws consistent with the Act as necessary for the performance
of its duties, the governance of its own proceedings, and the regulation of
the practice of engineering in this state; and pursuant to the Texas Engineering
Practice Act, Occupations Code Subchapters J and K (formerly Tex. Rev. Civ.
Stat. Ann. art. 3271a, §§22 and 22C), which authorize the board
to impose certain sanctions and administrative penalties if the board determines
that violations of the Texas Engineering Practice Act and/or board rules have
occurred; and pursuant to the Texas Engineering Practice Act, Occupations
Code Subchapter L (formerly Tex. Rev. Civ. Stat. Ann. art. 3271a,§23),
which authorizes the board to refer matters for criminal prosecution if the
board determines that violations of the Texas Engineering Practice Act and/or
board rules have occurred.
The following are the statutes, articles, or codes affected by the proposed
amendment:
§131.167 - Occupations Code §1001.202 and Subchapters J, K, and
L (formerly Tex. Rev. Civ. Stat. Ann. art. 3271a, §§8, 22, 22C and
23).
§131.167.Disciplinary Actions.
(a)-(g)
(No change).
(h)
The following is a table of suggested sanctions the board
may impose against license holders for specific violations of the Act or rules;
the minimum administrative penalty will be $100 per violation:
(i) -(k) (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, 2003.
TRD-200304556
Victoria J.L. Hsu, P.E.
Executive Director
Texas Board of Professional Engineers
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 440-7723
Chapter 505.
THE BOARD
22 TAC §§505.1, 505.3, 505.4, 505.7- 505.10, 505.12
The Texas State Board of Public Accountancy (Board) proposes
amendments to §§505.1, 505.3, 505.4, 505.7, 505.8, 505.9, 505.10,
and 505.12 concerning Headquarters of the Board; Presiding Officer of the
Board; Assistant Presiding Officer of the Board; Vacancies in the Board; Board
Meetings; Order of Business; Board Committees and Enforcement Committee Member
Recusals.
§505.1 is being amended to replace "III" as part of the Board's street
address with "3" to remove any confusion that it might be 111, and to add
the 4-digit zip code suffix.
§§505.3, 505.4, 505.7, 505.8 and 505.9 are being amended to replace
"chairman" with "Presiding Officer" as required by §901.055 of the Public
Accountancy Act ("Act"). §505.3 is also being amended to remove a redundant
sentence and §505.4 is also being amended to replace "vice chairman"
with "Presiding Officer" as required by §901.055 of the Act.
Proposed §505.10 is intended to eliminate the Regulatory Compliance
Committee and consolidate its duties in the Executive Committee.
Proposed §505.12 is intended to comply with the directive of §901.102
and §901.1525(g) of the Public Accountancy Act (Act).
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 amendments will be zero because the proposed amendments
do not require anyone to do or not do anything.
B. the estimated reduction in costs to the state and to local governments
as a result of enforcing or administering the amendments will be zero because
the proposed amendments do not require anyone to do or not do anything.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the amendments will be zero because the proposed
amendments do not require anyone to do or not do anything.
Mr. Treacy has determined that for the first five-year period the amendments
are in effect the public benefits expected as a result of adoption of the
proposed amendments will be for §505.1 reduced confusion about the board's
address. The Postal Service has previously stated that use of the 4-digit
zip code suffix will speed up mail delivery and reduce the cost of mail delivery.
The public benefits expected from §§505.3, 505.4, 505.7, 505.8 and
505.9 will be that the rule will use the correct term as required by statute.
The public benefits expected from §505.10 will be that the executive
committee will assume the duties of the regulatory compliance committee, which
is being abolished. This will reduce committee meeting time and should also
streamline policy decisions by vesting decision-making with only one committee.
The public benefits expected from §505.12 will be that the board will
have a rule on recusal as required by §901.102 and §901.1525(g)
of the Act.
The probable economic cost to persons required to comply with the amendments
will be zero because the proposed amendments do not require anyone to do or
not do anything.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed amendments will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
amendments from any interested person. Comments must be received at the Board
no later than noon on September 4, 2003. Comments should be addressed to Rande
Herrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe,
Tower III, Suite 900, Austin, Texas 78701 or faxed to her attention at (512)
305-7854.
Mr. Treacy has determined that the proposed amendments will not have an
adverse economic effect on small businesses because the proposed amendments
do not require anyone to do or not do anything. The incremental cost in §505.1
to write or type the 4-digit zip code suffix is negligible.
The Board specifically invites comments from the public on the issues of
whether or not the proposed amendments will have an adverse economic effect
on small business; if the amendments are believed to have such an effect,
then how may the Board legally and feasibly reduce that effect considering
the purpose of the statute under which the amendments are to be adopted; and
if the amendments are believed to have such an effect, how the cost of compliance
for a small business compares with the cost of compliance for the largest
business affected by the amendments under any of the following standards:
(a) cost per employee; (b) cost for each hour of labor; or (c) cost for each
$100 of sales. See Texas Government Code, §2006.002(c).
The amendments are proposed under the Public Accountancy Act,
Tex. Occupations Code, §901.151 (Vernon 2001) which authorizes the Board
to adopt rules deemed necessary or advisable to effectuate the Act and §505.12
is also proposed under §901.102 of the Act that authorizes the board
to develop policies defining the responsibilities of the board and staff and §901.1525(g)
of the Act that authorizes the board to adopt rules regarding recusal.
No other article, statute or code is affected by these proposed amendments.
§505.1.Headquarters of the Board.
The headquarters and administrative offices of the board shall be at
333 Guadalupe, Tower
3
[
§505.3. Presiding Officer [
[
§505.4. Assistant Presiding Officer [
The
assistant presiding officer
[
§505.7.Vacancies in the Board.
If for any reason a vacancy shall occur in the board, the
presiding
officer
[
§505.8.Board Meetings.
(a)
Board meetings shall be open to the public. The
presiding
officer
[
(b)
Board meetings shall take place at the headquarters of
the board or, if the convenience of the public or the parties to a hearing
will be better served thereby, at such place as the board may designate.
(c)
An annual meeting shall be held each year, not later than
July 31, and written notice of at least 10 days shall be given to each member
of the time and place of such meeting.
(d)
Special meetings may be held upon the call of the
presiding officer
[
§505.9.Order of Business.
(a)
The executive director, in conjunction with the
presiding
officer
[
(b)
Any board member may place an item on the board's agenda
by written request to the
presiding officer
[
(c)
Conduct of board meetings shall be guided by Roberts' Rules
of Order, except that no board action shall be invalidated by reason of failure
to comply with those rules.
(d)
Any person may request an appearance before the board for
the purpose of making a presentation on a matter under the board's jurisdiction,
provided that at least 20 days' advance written request to appear is made
to the
presiding officer
[
§505.10.Board Committees.
(a)
Committee appointments. Appointments to standing committees
and ad hoc committees shall be considered annually by the board's presiding
officer to assist in carrying out the functions of the board under the provisions
of the Public Accountancy Act. Committee appointments shall be made by the
presiding officer for a term of two years but may be terminated at any point
by the presiding officer. Committee members may be re-appointed at the discretion
of the presiding officer. The board's presiding officer shall be an ex officio
member of each standing committee and ad hoc committee and chairman of the
executive committee.
(b)
Committee actions. The actions of the committees are recommendations
only and are not binding until ratification by the board at a regularly scheduled
meeting.
(c)
Committee meetings. Committee meetings shall be held at
the call of the committee chairman, and a report to the board at its next
regularly scheduled meeting shall be made by such chairman or, in the absence
of the chairman, by another board member serving on the committee.
(d)
Vacancies. If for any reason a vacancy occurs on a committee,
the board's presiding officer may appoint a replacement in accordance with
subsection (a) of this section.
(e)
Standing committee structure and charge to committees.
The standing committees shall consist of the following individuals and shall
be charged with the following responsibilities.
(1)
The executive committee shall be 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 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)
litigation;
(B)
proposed changes in the board rules of professional conduct
(the rules);
(C)
amendments to the Act;
(D)
responses/positions relating to papers, reports, and other
submissions from national associations or boards; [
(E)
legislative oversight, including, but
not limited to, budget, performance measures, proposed changes in legislation
affecting the board, and computer utilization and;
(F)
[
(2)
The continuing professional education committee shall be
comprised of at least two board members, one of whom shall serve as chairman,
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 mandatory continuing professional education program
as it relates to reporting and attendance requirements, registration and monitoring
of continuing professional education sponsors, disciplinary actions, reporting
forms, and office procedures;
(B)
proposed changes in board rules, opinions, and policies
related to the mandatory continuing professional education program as it relates
to licensees and to relations with sponsors of continuing professional education;
(C)
investigations of sponsor compliance with the terms of
the sponsor agreements, including the related recordkeeping requirements;
(D)
the results of monitoring continuing professional education
courses for the purpose of evaluating the facilities, course content as presented,
and the adequacy of the course presenter(s); and
(E)
any significant deficiencies observed in carrying out subparagraphs
(C) and (D) of this paragraph.
(3)
The qualifications committee shall be comprised of at least
two board members, one of whom shall serve as chairman. 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);
(B)
the administration, security, discipline, and other aspects
of the conduct of the Uniform Certified Public Accountant Examination in Texas;
(C)
the work experience qualifications of an applicant for
the certified public accountant certificate in accordance with §§511.121
through 511.124 of this title (relating to Experience Requirements); and/or
(D)
where applicable, the equivalency examination measuring
the professional competency of an applicant for a CPA certificate by reciprocity;
and
(E)
proposed changes in board rules, opinions, and policies
relating to the qualifications process.
(4)
The licensing committee shall be comprised of at least
two board members, one of whom shall serve as chairman. The committee shall
make recommendations to the board regarding:
(A)
applications for certification, registration, and licensure;
(B)
requests or applications for reinstatement of any certificate,
registration, or license which the board previously has revoked, suspended,
or refused to renew; and
(C)
proposed changes in board rules, opinions, and policies
as they relate to the licensing process.
(5)
The behavioral enforcement committee shall be comprised
of at least two board members, one of whom shall serve as chairman, assisted
by at least two non-board members who shall serve in an advisory capacity.
The committee shall:
(A)
study complaints from any source involving possible violations
of the Act by certificate or registration holders and others;
(B)
study possible violations by certificate or registration
holders of the behavioral standards within the rules;
(C)
make recommendations to the board concerning the disposition
of such possible violations;
(D)
follow up on board orders to insure that certificate or
registration holders and others adhere to sanctions prescribed by or agreements
with the board; and
(E)
make recommendations to the board concerning proposed changes
in board rules, opinions, and policies related to the behavioral restraints
of the rules and the Act.
(6)
The technical standards review committee shall be comprised
of at least two board members, one of whom shall serve as chairman, and at
least three non-board members with recognized experience in industry, government,
and education. The committee shall:
(A)
study complaints from any source involving suspected violations
of the technical standards included in the rules and shall make recommendations
to the board as appropriate; and
(B)
follow up on board orders to insure that certificate or
registration holders and others adhere to sanctions prescribed by or agreements
with the board.
(7)
The peer review committee shall be comprised of at least
two board members, one of whom shall serve as chairman, assisted by any number
of non-board members who shall serve in an advisory capacity. The committee
shall:
(A)
conduct a periodic review and evaluation of reports publicly
filed with the State of Texas (or any board, commission, or agency thereof)
and of each of the various types of reports, as defined by board rule, of
each practice unit, as defined by board rule, which is engaged in the practice
of public accountancy in the State of Texas;
(B)
refer to the technical standards review committee egregious
substandard reports issued by practice units for which educational rehabilitation
has not been effective; and
(C)
make recommendations to the board with regard to proposed
changes in board rules, opinions, and policies relating to the quality review
program.
(8)
The board rules committee shall be comprised of at least
two board members, one of whom shall serve as chairman, assisted by any number
of non-board members who shall serve in an advisory capacity. The committee
shall make recommendations to the board and propose changes regarding board
rules. All committees shall endeavor to consult with the board rules committee
concerning proposed rules.
[(9)
The regulatory compliance committee shall
be comprised of at least two board members, one of whom shall serve as chairman,
assisted by any number of non-board members who shall serve in an advisory
capacity. The committee shall make recommendations to the board regarding
legislative oversight, including, but not limited to, budget, performance
measures, proposed changes in legislation affecting the board, and computer
utilization.]
(9)
[
(10)
[
(11)
[
(A)
investigate matters forwarded to the committee from any
other board committee or board staff in accordance with board instruction
and policy;
(B)
prepare, as appropriate, investigative reports regarding
each referred matter;
(C)
inform referring board committees or board staff of the
results of its investigations;
(D)
inform the appropriate committee when possible violations
of board rules and the Public Accountancy Act are observed; and
(E)
make recommendations to the board concerning proposed changes
in board rules, opinions, and policies relating to the constructive enforcement
program.
(f)
Ad hoc advisory committees. Ad hoc advisory committees
may be established by the board's presiding officer and members and advisory
members appointed as appropriate.
(g)
Definition of terms. As used in this section, the terms
"chairman" and "chairmen" are used for convenience and are intended to include
persons of either sex.
(h)
Policy guidelines. All advisory committee members performing
any duties utilizing board facilities and/or who have access to board records,
shall conform and adhere to the standards, board rules, and personnel policies
of the board as described in its personnel manual and to the laws of the State
of Texas governing state employees.
§505.12.Enforcement Committee Member Recusals.
(a)
A member of the board and an enforcement committee
shall recuse himself and take no part in the board's vote on the final disposition
in any case considered by that enforcement committee.
(b)
A member of an enforcement committee may
not participate in the discussion and may not vote on an issue before the
committee in which the member has a personal or financial interest. Each committee
member who is ineligible to participate in the disposition of an issue by
reason of this subsection shall provide a concise, factual statement of the
reason why the member is not participating prior to the commencement of discussion
of that issue by 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 24, 2003.
TRD-200304480
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 305-7848
22 TAC §505.2
(Editor's note: The text of the following section proposed for
repeal will not be published. The section may be examined in the offices of
the Texas State Board of Public Accountancy or in the Texas Register office,
Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas State Board of Public Accountancy (Board)
proposes the repeal of §505.2 concerning Organization of the Board.
The proposed repeal of §505.2 will remove a rule that is being re-written
to comply with Section 5 of House Bill 1218, amended §901.102 of the
Public Accountancy Act.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed repeal will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the repeal will be zero because the repeal does not require
anyone to do or not do anything.
B. the estimated reductions in costs to the state and to local governments
as a result of enforcing or administering the repeal will be zero because
the repeal does not require anyone to do or not do anything.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the repeal will be zero because the repeal does
not require anyone to do or not do anything.
Mr. Treacy has determined that for the first five-year period the repeal
is in effect the public benefits expected as a result of adoption of the proposed
repeal will be that this rule will be re-written to comply with Section 5
of House Bill 1218.
The probable economic cost to persons required to comply with the repeal
will be zero because the repeal does not require anyone to do or not do anything.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed repeal will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
repeal from any interested person. Comments must be received at the Board
no later than noon on September 4, 2003. Comments should be addressed to Rande
Herrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe,
Tower III, Suite 900, Austin, Texas 78701 or faxed to her attention at (512)
305-7854.
Mr. Treacy has determined that the proposed repeal will not have an adverse
economic effect on small businesses because the repeal does not require anyone
to do or not do anything.
The Board specifically invites comments from the public on the issues of
whether or not the proposed repeal will have an adverse economic effect on
small business; if the repeal is believed to have such an effect, then how
may the Board legally and feasibly reduce that effect considering the purpose
of the statute under which the repeal is to be adopted; and if the repeal
is believed to have such an effect, how the cost of compliance for a small
business compares with the cost of compliance for the largest business affected
by the repeal under any of the following standards: (a) cost per employee;
(b) cost for each hour of labor; or (c) cost for each $100 of sales. See Texas
Government Code, §2006.002(c).
The repeal is proposed under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 2001) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act, Section 5 of House Bill 1218, and amended §901.102
of the Public Accountancy Act, which requires the board to develop and implement
a policy such as the one stated in this rule.
No other article, statute or code is affected by this proposed repeal.
§505.2.Organization of 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 24, 2003.
TRD-200304481
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 305-7848
22 TAC §505.2
The Texas State Board of Public Accountancy (Board) proposes
new rule §505.2 concerning Duties of the Board.
The new rule §505.2 will re-write the former rule to comply with Section
5 of House Bill 1218, new §901.102 and §901.1525(g) of the Public
Accountancy Act ("Act").
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 because the new rule is a re-write
of a former rule in order to plainly state the dictate of new §901.102
and §901.1525(g) of the Act and because this has in fact been the actual
practice.
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 because
the new rule is a re-write of a former rule in order to plainly state the
dictate of new §901.102 and §901.1525(g) of the Act and because
this has in fact been the actual practice.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the new rule will be zero because the new rule
is a re-write of a former rule in order to plainly state the dictate of new §901.102
and §901.1525(g) of the Act and because this has in fact been the actual
practice.
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 that the re-written rule will plainly state the dictate of
new §901.102 and §901.1525(g) of the Act.
The probable economic cost to persons required to comply with the new rule
will be zero because the new rule is a re-write of a former rule in order
to plainly state the dictate of new §901.102 and §901.1525(g) of
the Act and because this has in fact been the actual practice.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed new rule will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
new rule from any interested person. Comments must be received at the Board
no later than noon on September 4, 2003. Comments should be addressed to Rande
Herrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe,
Tower III, Suite 900, Austin, Texas 78701 or faxed to her attention at (512)
305-7854.
Mr. Treacy has determined that the proposed new rule will not have an adverse
economic effect on small businesses because the new rule is a re-write of
a former rule in order to plainly state the dictate of new §901.102 and §901.1525(g)
of the Act and because this has in fact been the actual practice.
The Board specifically invites comments from the public on the issues of
whether or not the proposed new rule will have an adverse economic effect
on small business; if the new rule is believed to have such an effect, then
how may the Board legally and feasibly reduce that effect considering the
purpose of the statute under which the amendment is to be adopted; and if
the new rule is believed to have such an effect, how the cost of compliance
for a small business compares with the cost of compliance for the largest
business affected by the new rule under any of the following standards: (a)
cost per employee; (b) cost for each hour of labor; or (c) cost for each $100
of sales. See Texas Government Code, §2006.002(c).
The new rule is proposed under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 2001) which authorizes the Board to
adopt rules deemed necessary or advisable to effectuate the Act, §901.102
of the Act that authorizes the board to develop policies defining the responsibilities
of the board and staff and §901.1525(g) of the Act that authorizes the
board to adopt rules regarding recusal.
No other article, statute or code is affected by this proposed new rule.
§505.2.Duties of the Board.
(a)
The board is statutorily empowered to regulate the practice
of accountancy in Texas.
(b)
The board may adopt rules as necessary to govern its proceedings,
perform its duties, regulate the practice of accountancy in Texas, and enforce
applicable law.
(c)
The board may act directly under its statute and rules
or through the executive director or a committee of the board.
(d)
Pursuant to the Public Accountancy Act, the board is responsible
for policy-making decisions and the executive director is responsible for
the agency's management decisions.
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 24, 2003.
TRD-200304482
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 305-7848
22 TAC §507.5
(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 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 §507.5 concerning Duties of the Executive Director.
The proposed repeal of §507.5 will remove a rule that is being re-written
to comply with Section 5 of House Bill 1218, amended §901.102 of the
Public Accountancy Act ("Act").
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed repeal will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the repeal will be zero because the repeal does not require
anyone to do or not do anything.
B. the estimated reductions in costs to the state and to local governments
as a result of enforcing or administering the repeal will be zero because
the repeal does not require anyone to do or not do anything.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the repeal will be zero because the repeal does
not require anyone to do or not do anything.
Mr. Treacy has determined that for the first five-year period the repeal
is in effect the public benefits expected as a result of adoption of the proposed
repeal will be that this rule will be re-written to comply with Section 5
of House Bill 1218.
The probable economic cost to persons required to comply with the repeal
will be zero because the repeal does not require anyone to do or not do anything.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed repeal will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
repeal from any interested person. Comments must be received at the Board
no later than noon on September 4, 2003. Comments should be addressed to Rande
Herrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe,
Tower III, Suite 900, Austin, Texas 78701 or faxed to her attention at (512)
305-7854.
Mr. Treacy has determined that the proposed repeal will not have an adverse
economic effect on small businesses because the repeal does not require anyone
to do or not do anything.
The Board specifically invites comments from the public on the issues of
whether or not the proposed repeal will have an adverse economic effect on
small business; if the repeal is believed to have such an effect, then how
may the Board legally and feasibly reduce that effect considering the purpose
of the statute under which the repeal is to be adopted; and if the repeal
is believed to have such an effect, how the cost of compliance for a small
business compares with the cost of compliance for the largest business affected
by the repeal under any of the following standards: (a) cost per employee;
(b) cost for each hour of labor; or (c) cost for each $100 of sales. See Texas
Government Code, §2006.002(c).
The repeal is proposed under the Public Accountancy Act, Texas
Occupations Code, §901.151 (Vernon 2001) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act and Section 5 of House Bill 1218, amended §901.102
of the Act, which requires the board to develop and implement a policy such
as the one stated in this rule.
No other article, statute or code is affected by this proposed repeal.
§507.5.Duties of the Executive Director.
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 24, 2003.
TRD-200304483
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 305-7848
22 TAC §507.5
The Texas State Board of Public Accountancy (Board) proposes
new rule §507.5 concerning Duties of the Executive Director.
The new rule §507.5 will re-write the former rule to comply with Section
5 of House Bill 1218, new §901.102 of the Public Accountancy Act ("Act").
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 because the new rule is a re-write
of a former rule in order to plainly state the dictate of new §901.102
of the Act and because this has in fact been the actual practice.
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 because
the new rule is a re-write of a former rule in order to plainly state the
dictate of new §901.102 of the Act and because this has in fact been
the actual practice.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the new rule will be zero because the new rule
is a re-write of a former rule in order to plainly state the dictate of new §901.102
of the Act and because this has in fact been the actual practice.
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 that the re-written rule will plainly state the dictate of
new §901.102 of the Act.
The probable economic cost to persons required to comply with the new rule
will be zero because the new rule is a re-write of a former rule in order
to plainly state the dictate of new §901.102 of the Act and because this
has in fact been the actual practice.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed new rule will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
new rule from any interested person. Comments must be received at the Board
no later than noon on September 4, 2003. Comments should be addressed to Rande
Herrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe,
Tower III, Suite 900, Austin, Texas 78701 or faxed to her attention at (512)
305-7854.
Mr. Treacy has determined that the proposed new rule will not have an adverse
economic effect on small businesses because the new rule is a re-write of
a former rule in order to plainly state the dictate of new §901.102 of
the Act and because this has in fact been the actual practice.
The Board specifically invites comments from the public on the issues of
whether or not the proposed new rule will have an adverse economic effect
on small business; if the new rule is believed to have such an effect, then
how may the Board legally and feasibly reduce that effect considering the
purpose of the statute under which the amendment is to be adopted; and if
the new rule is believed to have such an effect, how the cost of compliance
for a small business compares with the cost of compliance for the largest
business affected by the new rule under any of the following standards: (a)
cost per employee; (b) cost for each hour of labor; or (c) cost for each $100
of sales. See Texas Government Code, §2006.002(c).
The new rule is proposed under the Public Accountancy Act, Texas
Occupations Code, §901.151 (Vernon 2001) which authorizes the Board to
adopt rules deemed necessary or advisable to effectuate the Act and §901.102
of the Act which requires the board to develop and implement a policy such
as the one stated in this rule.
No other article, statute or code is affected by this proposed new rule.
§507.5.Duties of the Executive Director.
(a)
The board shall determine the qualifications for and employ
an executive director who shall be the chief administrative officer of the
agency.
(b)
The duties of the executive director shall be to administer
and enforce the applicable law, to assist in conducting meetings of the board,
and to carry out other responsibilities as assigned by the board.
(c)
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 administrative officer of
the agency, the executive director shall be responsible for the management
of all aspects of administration of the agency to include personnel, financial
and other resources in support of the applicable law, rules, policies, mission
and strategic plan of the agency.
(d)
The duties imposed on the executive director under this
section may be discharged through board staff.
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 24, 2003.
TRD-200304484
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 305-7848
22 TAC §521.14
The Texas State Board of Public Accountancy (Board) proposes
new §521.14, concerning Eligibility Fee.
The new §521.14 will apportion the total examination fee among the
parts of an examination that an applicant's eligible to take on a particular
examination date.
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 because the board is already collecting
an examination fee from applicants.
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 because
the new rule does not address or affect cost reduction.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the new rule will be zero because the costs incurred
should be offset by the revenues collected.
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 that the examination fees will be apportioned by examination
topic and then collected by the board.
The probable economic cost to persons required to comply with the new rule
will be $70 for each of the four parts of the exam up to a total cost of $280
for each time an applicant applies for and is eligible to take the examination.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed new rule will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
new rule from any interested person. Comments must be received at the Board
no later than noon on September 4, 2003. Comments should be addressed to Rande
Herrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe,
Tower III, Suite 900, Austin, Texas 78701 or faxed to her attention at (512)
305-7854.
Mr. Treacy has determined that the proposed new rule will not have an adverse
economic effect on small businesses because there is a current examination
fee being imposed and collected; this rule merely changes the apportionment
of the examination fee.
The Board specifically invites comments from the public on the issues of
whether or not the proposed new rule will have an adverse economic effect
on small business; if the new rule is believed to have such an effect, then
how may the Board legally and feasibly reduce that effect considering the
purpose of the statute under which the amendment is to be adopted; and if
the new rule is believed to have such an effect, how the cost of compliance
for a small business compares with the cost of compliance for the largest
business affected by the new rule under any of the following standards: (a)
cost per employee; (b) cost for each hour of labor; or (c) cost for each $100
of sales. See Texas Government Code, §2006.002(c).
The new rule is proposed under the Public Accountancy Act, Texas
Occupations Code, §901.151 (Vernon 2001) which authorizes the Board to
adopt rules deemed necessary or advisable to effectuate the Act and §901.304(a)
which authorizes the board to pass a rule regarding apportioning of the examination
fee.
No other article, statute or code is affected by this proposed new rule.
§521.14.Eligibility Fee.
(a)
Upon implementation of the computer-based CPA examination
an eligibility fee shall become effective for each section for which an applicant
is eligible and applies.
(1)
Auditing and Attestation--$70.00.
(2)
Financial Accounting and Reporting--$70.00.
(3)
Regulation--$70.00.
(4)
Business and Economic Concepts--$70.00.
(b)
The eligibility fee shall be paid to the Texas State Board
of Public Accountancy. This is a non-refundable fee.
(c)
The fee paid shall be valid for 90 days after the board
determines that an applicant is eligible for a section of the CPA examination.
The board may extend the 90 day eligibility to accommodate the psychometric
evaluation and performance of test questions by the test provider.
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 24, 2003.
TRD-200304485
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 305-7848
Subchapter A. CONTINUING PROFESSIONAL EDUCATION (CPE) PROGRAMS
22 TAC §§523.1 - 523.7
(Editor's note: The text of the following sections proposed for
repeal will not be published. The sections may be examined in the offices
of the Texas State Board of Public Accountancy or in the Texas Register office,
Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas State Board of Public Accountancy (Board)
proposes the repeal of Chapter 523, Subchapter A, Continuing Professional
Education (CPE) Programs, §§523.1 - 523.7, concerning Continuing
Professional Education Purpose and Definition; Standards for Continuing Professional
Education Program Development; Program Objectives; Education and Experience
Prerequisites; Program Developers; Program Content and Program Review.
The proposed repeal of §§523.1 - 523.7 will remove rules that
are being re-written and regrouped. The repeals are a result of rule review
being conducted pursuant to §2001.039 of the Government Code.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed repeals will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the repeals will be zero because the repeals do not require
anyone to do or not do anything new or additional.
B. the estimated reductions in costs to the state and to local governments
as a result of enforcing or administering the repeals will be zero because
the repeals do not require anyone to do or not do anything new or additional.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the repeals will be zero because the repeals do
not require anyone to do or not do anything new or additional.
Mr. Treacy has determined that for the first five-year period the repeals
are in effect the public benefits expected as a result of adoption of the
proposed repeals will be that these rules were repealed, re-written, and regrouped.
The probable economic cost to persons required to comply with the repeals
will be zero because the repeals do not require anyone to do or not do anything
new or additional.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed repeals will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
repeals from any interested person. Comments must be received at the Board
no later than noon on September 4, 2003. Comments should be addressed to Rande
Herrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe,
Tower III, Suite 900, Austin, Texas 78701 or faxed to her attention at (512)
305-7854.
Mr. Treacy has determined that the proposed repeals will not have an adverse
economic effect on small businesses because the repeals do not require anyone
to do or not do anything new or additional.
The Board specifically invites comments from the public on the issues of
whether or not the proposed repeals will have an adverse economic effect on
small business; if the repeals are believed to have such an effect, then how
may the Board legally and feasibly reduce that effect considering the purpose
of the statute under which the repeals are to be adopted; and if the repeals
are believed to have such an effect, how the cost of compliance for a small
business compares with the cost of compliance for the largest business affected
by the repeal under any of the following standards: (a) cost per employee;
(b) cost for each hour of labor; or (c) cost for each $100 of sales. See Texas
Government Code, §2006.002(c).
The repeals are proposed under the Public Accountancy Act, Texas
Occupations Code, §901.151 (Vernon 2001) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act and §901.411 which authorizes the board to adopt
rules regarding continuing professional education.
No other article, statute or code is affected by these proposed repeals.
§523.1.Continuing Professional Education Purpose and Definition.
§523.2.Standards for Continuing Professional Education Program Development
§523.3.Program Objectives.
§523.4.Education and Experience Prerequisites.
§523.5.Program Developers.
§523.6.Program Content.
§523.7.Program Review.
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 24, 2003.
TRD-200304486
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 305-7848
22 TAC §§523.1 - 523.3
The Texas State Board of Public Accountancy (Board) proposes
new rules, Chapter 523, Subchapter A, Continuing Professional Education Purpose
and Definitions, §§523.1 - 523.3, concerning CPE Purpose and Definitions;
Standards for CPE Program Development and Savings Provisions and Dispositions
Table.
Sections 523.1 - 523.3 are proposed new rules intended to renumber the
sections, change the section captions to be more descriptive titles, to replace
any references to "continuing professional education" with "CPE" in the section
caption and in the section text and, because the CPE rules are being repealed,
re-written and renumbered, to correct references to section numbers. These
new rules are the result of rule review conducted pursuant to §2001.039
of the Government Code.
Proposed new §523.1 states that continuing professional education
will be referred to as CPE.
Proposed new §523.3 is designed to show the disposition of the repealed
CPE rules and to state that pending CPE complaints will continue.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed new rules will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the new rules will be zero because the proposed new rules
change the section's name, identifies the meaning of CPE and neither requires
anyone to do or not do anything.
B. the estimated reduction in costs to the state and to local governments
as a result of enforcing or administering the new rules will be zero because
the proposed new rules change the section's name, identifies the meaning of
CPE and neither requires anyone to do or not do anything.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the new rules will be zero because the proposed
new rules change the section's name, identifies the meaning of CPE and neither
requires anyone to do or not do anything.
Mr. Treacy has determined that for the first five-year period the new rules
are in effect the public benefits expected as a result of adoption of the
proposed new rules will be that the section's caption will be more descriptive,
which will make it easier for readers to find the subjects of this rule.
The probable economic cost to persons required to comply with the new rules
will be zero because the proposed new rules change the section's name, identifies
the meaning of CPE and neither requires anyone to do or not do anything.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed new rules will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
new rules from any interested person. Comments must be received at the Board
no later than noon on September 4, 2003. Comments should be addressed to Rande
Herrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe,
Tower III, Suite 900, Austin, Texas 78701 or faxed to her attention at (512)
305-7854.
Mr. Treacy has determined that the proposed new rules will not have an
adverse economic effect on small businesses because the proposed new rules
change the section's name, identifies the meaning of CPE and neither requires
anyone to do or not do anything.
The Board specifically invites comments from the public on the issues of
whether or not the proposed new rules will have an adverse economic effect
on small business; if the new rules are believed to have such an effect, then
how may the Board legally and feasibly reduce that effect considering the
purpose of the statute under which the amendment is to be adopted; and if
the new rules are believed to have such an effect, how the cost of compliance
for a small business compares with the cost of compliance for the largest
business affected by the new rules under any of the following standards: (a)
cost per employee; (b) cost for each hour of labor; or (c) cost for each $100
of sales. See Texas Government Code, §2006.002(c).
The new rules are proposed under the Public Accountancy Act,
Texas Occupations Code, §901.151 (Vernon 2001) which authorizes the Board
to adopt rules deemed necessary or advisable to effectuate the Act and §901.411
which authorizes the board to adopt rules regarding continuing professional
education.
No other article, statute or code is affected by these proposed new rules.
§523.1.CPE Purpose and Definitions.
(a)
Continuing Professional Education will be referred to herein
as CPE.
(b)
The purpose of CPE is to help ensure that licensees are
able to serve the public in a competent manner.
(c)
The following terms when used in this section, shall have
the meanings, given below, unless the context clearly indicates otherwise:
(1)
A "program" is designed to permit a participant to use
a given body of knowledge at specified level of skill.
(2)
A "formal group program" is a program that complies with
the standards in the board's Rules.
(3)
A "self-study program" is a program designed to permit
a participant to learn a given subject without major interaction with an instructor.
(4)
A "formal self-study program" is one for which the sponsor:
(A)
requires and evaluates evidence (such as a workbook or
examination paper) the participant has completed the course satisfactorily;
(B)
provides a certificate based upon evidence of satisfactory
completion; and
(C)
complies with the standards in the board's Rules.
(5)
A "computer-based interactive format program" is one designed
to simulate a classroom learning process by employing structured software
or technology-based systems that provide significant ongoing interactive feedback
for the participant regarding the learning process. This type of program clearly
defines lesson objectives and manages the participant through the learning
process by:
(A)
requiring frequent response to questions that test for
understanding of the material presented;
(B)
providing evaluative feedback to incorrectly-answered questions;
and
(C)
providing reinforcement feedback to correctly-answered
questions.
(d)
Sponsors are responsible for ensuring that their programs:
(1)
use appropriate delivery methodology;
(2)
deliver what participants may reasonable expect based on
the program description; and
(3)
comply with all the standards in the Board's Rules.
§523.2.Standards for CPE Program Development.
(a)
The fundamental purpose of CPE is to increase the licensee's
professional competence that benefits the public.
(b)
Courses the board regards as increasing the licensee's
professional competence include:
(1)
technical courses in areas such as accounting, audit, tax,
management advisory services, and other technical areas of benefit to a licensee
and a licensee's employer(s); and
(2)
non-technical courses such as communications, ethics, behavioral
science, practice management and advanced courses in foreign languages relating
to accounting, which are of benefit to a licensee or a licensee's employer(s).
Refer to §523.29 of this title (relating to Limitation for Non-Technical
Courses).
§523.3.Savings Provisions and Dispositions Table.
(a)
Repeal or amendment of Chapter 523 shall not abate any
pending CPE complaints.
(b)
The following table shows the disposition of board rules
in Chapter 523:
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 24, 2003.
TRD-200304487
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 305-7848
22 TAC §§523.21 - 523.34
(Editor's note: The text of the following sections proposed for
repeal will not be published. The sections may be examined in the offices
of the Texas State Board of Public Accountancy or in the Texas Register office,
Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas State Board of Public Accountancy (Board)
proposes the repeal of Chapter 523, Subchapter B, Continuing Professional
Education Standards, §§523.21 - 523.34, concerning Program Description
Standards; Instructors; Program Sponsors Other Responsibilities; Learning
Environment; Evaluation; Program Time Credit Measurement; Credits for Instructors
and Discussion Leaders; Credits for Published Articles and Books; Minimum
Hours Required Per CPE Reporting Period as a Participant; Limitation for Non-Technical
Courses; Alternative Sources of Continuing Professional Education; Board Rules
and Ethics Course; Course Content and Board Approval and Course Content and
Board Approval after September 1, 2003.
The proposed repeal of §§523.21 - 523.34 will remove rules that
are being re-written and regrouped. The repeals are a result of rule review
being conducted pursuant to §2001.039 of the Government Code.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed repeals will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the repeals will be zero because the repeals do not require
anyone to do or not do anything new or additional.
B. the estimated reductions in costs to the state and to local governments
as a result of enforcing or administering the repeals will be zero because
the repeals do not require anyone to do or not do anything new or additional.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the repeals will be zero because the repeals do
not require anyone to do or not do anything new or additional.
Mr. Treacy has determined that for the first five-year period the repeals
are in effect the public benefits expected as a result of adoption of the
proposed repeals will be that these rules were repealed, re-written, and regrouped.
The probable economic cost to persons required to comply with the repeals
will be zero because the repeals do not require anyone to do or not do anything
new or additional.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed repeals will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
repeals from any interested person. Comments must be received at the Board
no later than noon on September 4, 2003. Comments should be addressed to Rande
Herrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe,
Tower III, Suite 900, Austin, Texas 78701 or faxed to her attention at (512)
305-7854.
Mr. Treacy has determined that the proposed repeals will not have an adverse
economic effect on small businesses because the repeals do not require anyone
to do or not do anything new or additional.
The Board specifically invites comments from the public on the issues of
whether or not the proposed repeals will have an adverse economic effect on
small business; if the repeals are believed to have such an effect, then how
may the Board legally and feasibly reduce that effect considering the purpose
of the statute under which the repeals are to be adopted; and if the repeals
are believed to have such an effect, how the cost of compliance for a small
business compares with the cost of compliance for the largest business affected
by the repeal under any of the following standards: (a) cost per employee;
(b) cost for each hour of labor; or (c) cost for each $100 of sales. See Texas
Government Code, §2006.002(c).
The repeals are proposed under the Public Accountancy Act, Texas
Occupations Code, §901.151 (Vernon 2001) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act and §901.411 which authorizes the board to adopt
rules regarding continuing professional education.
No other article, statute or code is affected by these proposed repeals.
§523.21.Program Description Standards.
§523.22.Instructors.
§523.23.Program Sponsors Other Responsibilities.
§523.24.Learning Environment.
§523.25.Evaluation.
§523.26.Program Time Credit Measurement.
§523.27.Credits for Instructors and Discussion Leaders.
§523.28.Credits for Published Articles and Books.
§523.29.Minimum Hours Required Per CPE Reporting Period as a Participant.
§523.30.Limitation for Non-Technical Courses.
§523.31.Alternative Sources of Continuing Professional Education.
§523.32.Board Rules and Ethics Course.
§523.33.Course Content and Board Approval.
§523.34.Course Content and Board Approval after September 1, 2003.
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 24, 2003.
TRD-200304488
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 305-7848
22 TAC §§523.21 - 523.32
The Texas State Board of Public Accountancy (Board) proposes
new rules, Chapter 523, Subchapter B, Continuing Professional Education Rules
for Individuals, §§523.21 - 523.32, concerning Establishment of
Mandatory CPE Program; Mandatory CPE Reporting; Mandatory CPE Attendance;
Denial of a License; Disciplinary Actions Relating to CPE; Credits for Instructors
and Discussion Leaders; Credits for Published Articles and Books; Minimum
Hours Required Per CPE Reporting Period as a Participant; Limitation for Non-Technical
Courses; Alternative Sources of CPE; Standards for CPE Reporting and CPE for
non-CPA Owners.
Sections 523.21 - 523.32 are proposed new rules intended to renumber the
sections, to change the section captions to be more descriptive titles, to
replace any references to "continuing professional education" with "CPE" in
the section caption and in section text and, because the CPE rules are being
repealed, re-written and renumbered, to correct references to section numbers.
These new rules are the result of rule review conducted pursuant to §2001.039
of the Government Code.
Proposed new §523.26 will increase from the former rule, the credit
hours that a CPE program instructor may receive for preparation and presentation
of the program from double to triple the program's approved credit hours.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed new rules will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the new rules will be zero because the proposed new rules
do not require anyone to do or not do anything new or additional.
B. the estimated reduction in costs to the state and to local governments
as a result of enforcing or administering the new rules will be zero because
the proposed new rules do not require anyone to do or not do anything new
or additional.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the new rules will be zero because the proposed
new rules do not require anyone to do or not do anything new or additional.
Mr. Treacy has determined that for the first five-year period the new rules
are in effect the public benefits expected as a result of adoption of the
proposed new rules will be that the section caption will be descriptive, which
will make it easier for readers to find the subject of the rule, and that
the acronym CPE will speed up reading and require fewer type space. In §523.26
CPE program course instructors will receive more CPE credit then in the former
rule, which might increase the pool of available CPE instructors.
The probable economic cost to persons required to comply with the new rules
will be zero because the proposed new rules do not require anyone to do or
not do anything new or additional.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed new rules will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
new rules from any interested person. Comments must be received at the Board
no later than noon on September 4, 2003. Comments should be addressed to Rande
Herrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe,
Tower III, Suite 900, Austin, Texas 78701 or faxed to her attention at (512)
305-7854.
Mr. Treacy has determined that the proposed new rules will not have an
adverse economic effect on small businesses because the proposed new rules
do not require anyone to do or not do anything new or additional.
The Board specifically invites comments from the public on the issues of
whether or not the proposed new rules will have an adverse economic effect
on small business; if the new rules are believed to have such an effect, then
how may the Board legally and feasibly reduce that effect considering the
purpose of the statute under which the amendment is to be adopted; and if
the new rules are believed to have such an effect, how the cost of compliance
for a small business compares with the cost of compliance for the largest
business affected by the new rules under any of the following standards: (a)
cost per employee; (b) cost for each hour of labor; or (c) cost for each $100
of sales. See Texas Government Code, §2006.002(c).
The new rules are proposed under the Public Accountancy Act,
Texas Occupations Code, §901.151 (Vernon 2001) which authorizes the Board
to adopt rules deemed necessary or advisable to effectuate the Act and §901.411
which authorizes the board to adopt rules regarding continuing professional
education.
No other article, statute or code is affected by these proposed new rules.
§523.21.Establishment of Mandatory CPE Program.
A licensee shall be responsible for ensuring that CPE credit hours
claimed conform to the board's standards as outlined in:
(1)
§523.26 regarding Credits for Instructors and Discussion
Leaders;
(2)
§523.27 regarding Credits for Published Articles and
Books;
(3)
§523.28 regarding Minimum Hours Required Per CPE Reporting
Period as a Participant;
(4)
§523.29 regarding Limitation for Non-Technical Courses;
(5)
§523.30 regarding Alternative Sources of CPE;
(6)
§523.41 regarding Board Rules and Ethics Course.
(7)
§523.51 regarding Program Standards;
(8)
§523.52 regarding Evaluation;
(9)
§523.53 regarding Program Time Credit Measurement;
§523.22.Mandatory CPE Reporting.
(a)
To receive a license, a licensee shall earn and report
at least the minimum mandatory CPE credit hours required for the reporting
period under §523.23 and §523.41 of this title (relating to Mandatory
CPE Attendance and Board Rules and Ethics Course).
(b)
A licensee shall report CPE credit hours accrued during
the reporting period on the license renewal form. Appropriate instructions
shall accompany the license renewal form.
(c)
The board may not grant exemptions from the requirement
to report CPE credit hours accrued. A licensee must report CPE credit hours
on the license renewal form, even if the number reported is zero.
(d)
A licensee who fails to report the minimum mandatory CPE
credit hours accrued during the reporting period will be subject to disciplinary
action under §523.25 of this title (relating to Disciplinary Actions
Relating to CPE).
§523.23.Mandatory CPE Attendance.
A licensee shall complete at least 120 hours of CPE in each three-year
period, and a minimum of 20 hours in each one-year period. For all CPE completed
after January 31, 2003, except as provided by board rule, this CPE shall be
offered by board contracted CPE sponsors. The exception to this requirement
is an initial licensee, one who has been certified or registered for less
than 12 months.
(1)
The exception to the 120 CPE requirement is an initial
licensee, one who is paying the license fee for the first time.
(A)
To be issued a license that is less than twelve months
from the date of certification or registration, the licensee does not have
a CPE hour requirement. The first twelve-month period begins on the date of
certification and ends with the last day of the licensee's birth month.
(B)
To be issued a license for the first full twelve-month
license period, the licensee does not have a CPE accrual requirement and can
report zero hours.
(C)
To be issued a license for the second full twelve-month
period, the licensee must report a minimum of 20 CPE hours. The hours must
be accrued in the 12 months preceding the license period.
(D)
To be issued a license for the third full twelve-month
license period, the licensee must report a total of at least 60 CPE hours
that were accrued in the 24 months preceding the license period. At least
20 hours of the requirement must be accrued in the 12 months preceding the
license period.
(E)
To be issued a license for the fourth full twelve-month
period, the licensee must report 100 CPE hours that were accrued in the 36
months preceding the license period. At least 20 hours of the requirement
must be accrued in the 12 months preceding the license period.
(F)
To be issued a license for the fifth and subsequent license
periods, the licensee must report a total of at least 120 CPE hours that were
accrued in the 36 months preceding the license period, and at least 20 hours
of the requirement must be accrued in the 12 months preceding the license
period.
(2)
A former licensee whose certificate or registration has
been revoked for failure to pay the license fee and who makes application
for reinstatement, must pay the required fees and penalties and must accrue
the minimum CPE credit hours missed.
(3)
The board may consider granting an exemption from the CPE
requirement on a case-by-case basis if:
(A)
a licensee completes and forwards to the board a sworn
affidavit indicating that the licensee will not be employed during the period
for which the exemption is requested. A licensee who has been granted this
exemption and who re-enters the work force shall be required to report CPE
hours missed as a result of the exemption subject to a maximum of 200 hours.
Such CPE hours shall be accrued from the technical area as described in §523.2
and §523.41 of this title (relating to Standards for CPE Program Development
and Board Rules and Ethics Course);
(B)
a licensee completes and forwards to the board a sworn
affidavit indicating no association with accounting work. The affidavit shall
include, as a minimum, a brief description of the duties performed, job title,
and verification by the licensee's immediate supervisor;
(i)
For purposes of this section, the term "association with
accounting work" shall include the following:
(I)
working or supervising work performed in the areas of financial
accounting and reporting; tax compliance, planning or advice; management advisory
services; data processing; treasury, finance, or audit; or
(II)
representing to the public, including an employer, that
the licensee is a CPA or public accountant in connection with the sale of
any services or products, including such designation on a business card, letterhead,
promotional brochure, advertisement, or office; or
(III)
offering testimony in a court of law purporting to have
expertise in accounting and reporting, auditing, tax, or management services;
or
(IV)
for purposes of making a determination as to whether the
licensee fits one of the categories listed in this subclause and subclauses
(I) - (III) of this clause, the questions shall be resolved in favor of inclusion
of the work as "association with accounting work."
(ii)
A licensee who has been granted this exemption and who
loses the exemption shall accrue CPE hours missed as a result of the exemption
subject to a maximum of 200 hours. Such CPE hours shall be earned in the technical
area as described in §523.2 and §523.41 of this title (relating
to Standards for CPE Program Development and Board Rules and Ethics Course).
(C)
a licensee not residing in Texas, who submits a sworn statement
to the board that the licensee does not serve Texas clients from out of state;
(D)
a licensee shows reasons of health, certified by a medical
doctor, that prevent compliance with the CPE requirement. A licensee must
petition the board for the exemption and provide documentation that clearly
establishes the period of disability and the resulting physical limitations;
(E)
a licensee is on extended active military duty during the
period for which the exemption is requested, and files a copy of orders to
active military duty with the board; or
(F)
a licensee shows reason which prevents compliance, that
is acceptable to the board.
(4)
A licensee who has been granted the retired or disabled
status under §515.8 of this title (relating to Retirement Status or Permanent
Disability) is not required to report any CPE hours.
§523.24.Denial of a License.
The board shall not issue or renew a license to an individual who has
not earned the required CPE credit hours unless an exemption has been granted
by the board.
§523.25.Disciplinary Actions Relating to CPE.
(a)
A licensee who fails to comply with the provisions of §523.41
of this title (relating to Board Rules and Ethics Course), §523.22 of
this title (relating to Mandatory CPE Reporting) §523.23 of this title
(relating to Mandatory CPE Attendance) may be subject to disciplinary action
under the Act, for violation of the Rules of Professional Conduct, §501.94
of this title (relating to Mandatory CPE), which requires compliance with §523.41
of this title (relating to Board Rules and Ethics Course, §523.22 of
this title (relating to Mandatory CPE Reporting) and §523.23 of this
title (relating to Mandatory CPE Attendance).
(b)
A licensee shall retain documents or other evidence supporting
CPE credit hours claimed for the three most recent full reporting periods
to the date the credit hours are reported to the board, and shall submit the
supporting evidence to the board if such data is specifically requested.
(c)
The board may, as deemed appropriate, audit CPE supplied
by a licensee and request that all documentation be provided to the board
within a reasonable period of time.
(d)
Evidence of falsification, fraud, or deceit in the CPE
documentation may necessitate disciplinary action as authorized in the Public
Accountancy Act.
§523.26.Credits for Instructors and Discussion Leaders.
When an instructor or discussion leader serves at a program for which
participants receive credit and at a level that contributes to the instructor's
or discussion leader's professional competence, credit may be given for preparation
and presentation time measured in terms of credit hours. For the first time
a program is presented, instructors may receive up to three times the number
of credit hours approved for the program. For repetitious presentations, the
instructor may receive credit only if it can be demonstrated that the subject
matter involved was changed sufficiently to require significant additional
study or research. The maximum credit for preparation and presentation cannot
exceed 20 hours in the reporting period.
§523.27.Credits for Published Articles and Books.
CPE credit hours may be claimed for published articles and books provided
they contribute to the professional competence of the licensee. Credit hours
for preparation of such publications may be claimed up to 10 hours in any
CPE reporting period. In exceptional circumstances, a licensee may submit
a request to the board for additional credit, not to exceed a total of 20
credit hours in the reporting period. The request should be accompanied by
a copy of the article(s) or book(s) and an explanation justifying the request
for additional CPE hours.
§523.28.Minimum Hours Required Per CPE Reporting Period as a Participant.
A minimum of 20 credit hours per CPE reporting period must be as a
participant in a qualified CPE in a live classroom instruction and/or self-study
if the licensee is claiming credit of the requirement as provided for in §523.26
and §523.27 of this title (relating to Credits for Instructors and Discussion
Leaders and Credits for Published Articles and Books).
§523.29.Limitation for Non-Technical Courses.
CPE credit hours may be claimed for non-technical courses limited to
not more than 20 credit hours in the reporting period.
§523.30.Alternative Sources of CPE.
(a)
Credit hours may be claimed from other organizations not
recognized as formal CPE sponsors. Credit from membership in the committees
listed can be claimed using 50 minutes per contact hour at meetings to equal
one credit hour:
(1)
Financial Accounting Standards Board (FASB);
(2)
Governmental Accounting Standards Board (GASB);
(3)
FASB's Emerging Issues Task Force (EITF);
(4)
AICPA's Auditing Standards Board and Accounting Standards
Executive Committee;
(5)
Financial Executives Institute's Committee on Corporate
Reporting (FEI/CCR);
(6)
National Association of Accountants' Management Accounting
Practices Committee;
(7)
AICPA's Accounting and Review Services Committee (ARSC);
and
(8)
The AICPA's Private Companies Section on Technical Issues
Committee.
(b)
Credit hours earned from sources other than registered
sponsors, or membership on designated committees, must receive prior approval
before credit may be claimed.
§523.31.Standards for CPE Reporting.
(a)
Participants in group or self-study programs must document
their participation, including:
(1)
sponsor;
(2)
title or description of content, or both;
(3)
date(s);
(4)
location; and
(5)
number of credit hours.
(b)
These standards are designed to encourage participants
to document their attendance at group programs or participation in self-study
programs. Evidence of completion would normally be the certificate supplied
by the sponsor. Documentation by the licensee must be retained for the three
most recent full reporting periods.
§523.32.CPE for non-CPA Owners.
(a)
Each non-CPA owner of a licensed CPA firm shall complete
an average of 120 hours of CPE in each three-year period and have a minimum
of 20 hours per year. These hours shall be reported on the required board
forms. The failure of any non-CPA owner of a licensed CPA firm to complete
and report such CPE shall be grounds for revoking the firm's license on the
grounds that the owner is not qualified.
(b)
The board will accept any CPE that is offered or accepted
by organizations or regulatory bodies issuing any professional designation
used by the non-CPA owner. All other CPE must be provided by board-accepted
CPE sponsors or be otherwise approved by the board, provided however, that
the board reserves the right to reject any claimed CPE.
(c)
Every non-CPA owner of a licensed CPA firm shall complete
a board-approved rules and ethics course in accordance with §523.41 of
this title (relating to Board Rules and Ethics Course).
(d)
The board has the right to audit any CPE hours claimed.
A firm shall provide the board all information required for this audit in
accordance with §501.93 of this title (relating to Responses) and the
firm shall be responsible for its non-CPA owner's cooperation with the audit.
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 24, 2003.
TRD-200304489
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 305-7848
22 TAC §523.41, §523.42
(Editor's note: The text of the following sections proposed for
repeal will not be published. The sections may be examined in the offices
of the Texas State Board of Public Accountancy or in the Texas Register office,
Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas State Board of Public Accountancy (Board)
proposes the repeal of Chapter 523, Subchapter C, Continuing Professional
Education Reporting §§523.41 and 523.42 concerning Standards for
Continuing Professional Education Reporting and Sponsor's Record.
The proposed repeal of §§523.41 and 523.42 will remove rules
that are being re-written and regrouped. The repeals are a result of rule
review being conducted pursuant to §2001.039 of the Government Code.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed repeals will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the repeals will be zero because the repeals do not require
anyone to do or not do anything new or additional.
B. the estimated reductions in costs to the state and to local governments
as a result of enforcing or administering the repeals will be zero because
the repeals do not require anyone to do or not do anything new or additional.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the repeals will be zero because the repeals do
not require anyone to do or not do anything new or additional.
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
repeals will be that these rules were repealed, re-written, and regrouped.
The probable economic cost to persons required to comply with the repeals
will be zero because the repeals do not require anyone to do or not do anything
new or additional.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed repeals will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
repeal from any interested person. Comments must be received at the Board
no later than noon on September 4, 2003. Comments should be addressed to Rande
Herrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe,
Tower III, Suite 900, Austin, Texas 78701 or faxed to her attention at (512)
305-7854.
Mr. Treacy has determined that the proposed repeals will not have an adverse
economic effect on small businesses because the repeals do not require anyone
to do or not do anything new or additional.
The Board specifically invites comments from the public on the issues of
whether or not the proposed repeals will have an adverse economic effect on
small business; if the repeals are believed to have such an effect, then how
may the Board legally and feasibly reduce that effect considering the purpose
of the statute under which the repeals are to be adopted; and if the repeals
are believed to have such an effect, how the cost of compliance for a small
business compares with the cost of compliance for the largest business affected
by the repeal under any of the following standards: (a) cost per employee;
(b) cost for each hour of labor; or (c) cost for each $100 of sales. See Texas
Government Code, §2006.002(c).
The repeals are proposed under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 2001) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act and §901.411 which authorizes the board to adopt
rules regarding continuing professional education.
No other article, statute or code is affected by these proposed repeals.
§523.41.Standards for Continuing Professional Education Reporting.
§523.42.Sponsor's 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 24, 2003.
TRD-200304490
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 305-7848
22 TAC §§523.41 - 523.43
The Texas State Board of Public Accountancy (Board) proposes
new rules, Chapter 523, Subchapter C, Ethics Rules: Individuals and Sponsors, §§523.41,
523.42, and 523.43 concerning Board Rules and Ethics Course; Course Content
and Board Approval after January 1, 2004 and Course Content and Board Approval.
Sections 523.41, 523.42 and 523.43 are proposed new rules intended to renumber
the sections and to replace any references to "continuing professional education"
with "CPE" in the section caption and in section text. These new rules are
the result of rule review conducted pursuant to §2001.039 of the Government
Code.
Section 523.42 is proposed for several other reasons. The proposed section
caption date reflects the delayed implementation of the rule. Additional changes
from the former rule are clarifying statements that licensees must take their
ethics course from board-approved and board-contracted instructors in order
to receive credit for completing the course and that a person cannot be an
ethics instructor if they have ever been disciplined by the board. A further
change from the former rule is the deletion of non-licensee ethics instructors.
Another change from the former rule is the addition of five requirements that
a person must satisfy in order to be eligible for approval as an ethics instructor.
These changes caused some former subsections to be re-numbered. The last change
is the addition of a simultaneous interpretive comment by the board.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed new rules will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering new rules §§523.41 and 523.43 will be zero because
the proposed new sections do not require anyone to do or not do anything.
The additional estimated cost to the state expected as a result of enforcing
or administering §523.42 will be the staff cost of processing an application
which is expected to equal the application processing fee of $250.00 per application.
B. the estimated reduction in costs to the state and to local governments
as a result of enforcing or administering new rules §§523.41 and
523.43 will be zero because the proposed new sections do not require anyone
to do or not do anything. The estimated reduction in costs to the state and
to local governments as a result of enforcing or administering §523.43
will be zero because the proposed new section has no effect on reducing state
costs and does not have any effect on local governments at all.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the new rules §§523.41 and 523.43 will
be zero because the proposed new sections do not require anyone to do or not
do anything. As a result of enforcing or administering new rule §523.42,
there will be no lost revenue because others are expected to step up to replace
any instructors that might be lost because of the proposed eligibility requirements.
There are currently 9 approved instructors and, for estimating purposes, the
board expects that there will be 9 instructors under the proposed rule, albeit
possibly different ones. Assuming all 9 apply during the first year, the estimated
increased revenue from the initial application processing fee will be $2,250.00
(9 x $250.00 application processing fee). The estimated annual recurring increased
revenue from the contract fee will be $1,080.00 (9 x $120.00 annual contract
fee). The estimated total first year increased revenue will be $3,300.00 ($2,250
+ 1,080).
Mr. Treacy has determined that for the first five-year period the new rules
are in effect the public benefits expected as a result of adoption of the
proposed new rules §§523.41 and 523.43 will be that the section
caption will be more descriptive, which will make it easier for readers to
find the subject of this rule. The public benefit of §523.42 will be
that the rule will be renumbered and rearranged in a more logical understandable
manner
The probable economic cost to persons required to comply with new rules §§523.41
and 523.43 will be zero because the proposed new section does not require
anyone to do or not do anything. The probable economic cost to persons required
to comply with new rule §523.42 will be $370.00 ($250.00 application
processing fee + $120.00 annual contract fee) for the first year and $120.00
for each subsequent year.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed new rules will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
new rules from any interested person. Comments must be received at the Board
no later than noon on September 4, 2003. Comments should be addressed to Rande
Herrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe,
Tower III, Suite 900, Austin, Texas 78701 or faxed to her attention at (512)
305-7854.
Mr. Treacy has determined that the proposed new rules will not have an
adverse economic effect on small businesses because §§523.41 and
523.43 does not require anyone to do or not do anything and with §523.42
the total initial annual cost will be only $370.00 and the subsequent annual
cost will be only $120.00. These amounts are not large enough to cause an
adverse economic effect. Also, these costs should be viewed in terms of their
offsetting revenue potential from teaching the courses.
The Board specifically invites comments from the public on the issues of
whether or not the proposed new rules will have an adverse economic effect
on small business; if the new rules are believed to have such an effect, then
how may the Board legally and feasibly reduce that effect considering the
purpose of the statute under which the amendment is to be adopted; and if
the new rules are believed to have such an effect, how the cost of compliance
for a small business compares with the cost of compliance for the largest
business affected by the new rules under any of the following standards: (a)
cost per employee; (b) cost for each hour of labor; or (c) cost for each $100
of sales. See Texas Government Code, §2006.002(c).
The new rules are proposed under the Public Accountancy Act,
Tex. Occupations Code, §901.151 (Vernon 2001) which authorizes the Board
to adopt rules deemed necessary or advisable to effectuate the Act and §901.411
which authorizes the board to adopt rules regarding continuing professional
education.
No other article, statute or code is affected by these proposed new rules.
§523.41.Board Rules and Ethics Course.
(a)
An individual applying for certification or registration
must complete a board-approved four-hour ethics course on the Rules of Professional
Conduct no more than six months prior to submission of the application. Proof
of completion of this course must be submitted with the application.
(b)
Every licensee must take a board-approved two-hour ethics
course on the Rules of Professional Conduct every three years. Licensees shall
report completion of the course on the annual license renewal notice at least
every third year.
(c)
A licensee granted retired, permanent disability, or other
exempt status is not required to complete the ethics course during the licensee's
exempt status. When the exempt status is no longer applicable, the individual
must complete either a board-approved four-hour ethics course or a board-approved
two-hour ethics course, whichever is applicable, and report it on the license
renewal notice if due.
(d)
A certificate or registration holder who resides in the
state of Texas may not take the ethics course via self-study but must take
the ethics course in a live instructor format or in an interactive computer-based
format.
(e)
A certificate or registration holder who does not reside
in the state of Texas may take the course in either a live instructor format
or a computer-based interactive format or may write the board to request an
exemption.
§523.42.Course Content and Board Approval after January 1, 2004.
(a)
Effective January 1, 2004 the content of an ethics course
must be submitted to and approved by the CPE committee of the board for initial
approval and every three years thereafter. Course content shall be approved
only after the developer of the course demonstrates, either in a live instructor
format or a computer-based interactive format, as defined in §523.1(c)(5)
of this title (relating to CPE Purpose and Definitions), that the course meets
the following objectives:
(1)
the course shall be designed to teach CPAs to achieve and
maintain the highest standards of ethical conduct;
(2)
the course shall be designed to teach the core values of
the profession, integrity, objectivity and independence, as ethical principles
in addition to rules of conduct;
(3)
the course shall be designed to teach compliance with the
spirit and intent of the Rules of Professional Conduct, in addition to technical
compliance with the Rules; and
(4)
the course shall address ethical considerations and the
application of the Rules of Professional Conduct to all aspects of the professional
accounting work whether performed by CPAs in client practice or CPAs who are
not in client practice.
(b)
To receive credit for an ethics course, a licensee must
take the course from an instructor approved by and under contract to the board.
The board will contract with any instructor wishing to offer this course who
can demonstrate that:
(1)
the instructor is a certified public accountant licensed
in Texas and has completed the board's ethics training program within the
last three years or as required by the board;
(2)
the instructor has never been disciplined for a violation
of the Rules of Professional Conduct; and
(3)
the instructor is qualified to teach ethical reasoning
because he has:
(A)
experience in the study and teaching of ethical reasoning;
and
(B)
formal training in organizational or ethical behavior instruction.
(c)
An instructor demonstrates that he is qualified to teach
ethical reasoning upon proof that he has:
(1)
at the time of application or by June 30, 2005, whichever
is later, obtained a minimum of 6 hours of credit in an ethics course from
an accredited University, College or Community College, of which at least
three hours must be in organizational ethics;
(2)
two or more full time semesters teaching experience at
an accredited University, College or Community College;
(3)
spent at least one year working in the accounting field;
(4)
no record of a violation of the rules of professional conduct
of the American Institute of Certified Public Accountants, the Texas Society
of Certified Public Accountants or other national accountancy organization
recognized by the board; and
(5)
goals and interests consistent with the board’s purpose
of protecting the public interest pursuant to the provisions of the Public
Accountancy Act.
(d)
An Instructor who can demonstrate substantially equivalent
qualifications or who conducts training solely in-house for a governmental
entity may request an exemption from the qualifications for teaching ethical
reasoning set forth in subsection (c) of this section.
(e)
The board may refuse to contract, refuse to renew a contract
or cancel the contract of any instructor who has engaged in conduct rendering
that instructor unsuitable for teaching ethics.
(f)
A sponsor of an approved ethics course shall comply with
the board rules concerning sponsors of CPE and shall provide its advertising
materials to the board's CPE committee for approval. Such advertisements shall:
(1)
avoid commercial exploitation;
(2)
identify the primary focus of the course; and
(3)
be professionally presented and consistent with the intent
of §501.82 of this title (relating to Advertising).
(g)
Board Rules and Ethics courses will be reevaluated every
three years or as required by the board.
(h)
As part of each course, the sponsor shall administer a
test to determine whether the program participants have obtained a basic understanding
of the course content, including the need for a high level of ethical standards
in the accounting profession.
(i)
Interpretive comments: To have goals and interests consistent
with the board’s purpose of protecting the public interest pursuant
to the provisions of the Public Accountancy Act an instructor must refrain
from using the instruction of an ethics course as a marketing tool for other
products and services offered by the instructor during the term of the contract.
An instructor must be free from conflicts of interest with the board in both
fact and appearance. Representation of a respondent in a disciplinary proceeding
pending before the board during the term of the contract creates the appearance
of a conflict of interest.
§523.43.Course Content and Board Approval.
(a)
Before a provider of CPE can offer the Board Rules and
Ethics Course, the content of the course must be submitted to and approved
by the CPE committee of the board for initial approval and every three years
thereafter. Course content shall be approved only after demonstrating, either
in a live instructor format or a computer-based interactive format, as defined
in §523.1(c)(5) of this title (relating to CPE Purpose and Definitions),
that the course contains the underlying intent established in the following
criteria.
(1)
The course shall encourage the certificate or registration
holder to educate himself or herself in the ethics of the profession, specifically
the Rules of Professional Conduct of the board.
(2)
The course shall convey the intent of the board's Rules
of Professional Conduct in the certificate or registration holder's performance
of professional services, and not mere technical compliance. A certificate
or registration holder is expected to apply ethical judgment in interpreting
the rules and determining the public interest. The public interest should
be placed ahead of self-interest, even if it means a loss of job or client.
(3)
The primary objectives of the Board Rules and Ethics Course
shall be to:
(A)
emphasize the ethical standards of the profession, as described
in this section; and
(B)
review and discuss the board's Rules of Professional Conduct
and their implications for certificate or registration holders in a variety
of practices, including:
(i)
a certificate or registration holder engaged in the client
practice of public accountancy who performs attest and non-attest services,
as defined in §501.52 of this title (relating to Definitions);
(ii)
a certificate or registration holder employed in industry
who provides internal accounting and auditing services; and
(iii)
a certificate or registration holder working in education
or in government accounting or auditing.
(4)
The Board Rules and Ethics Course shall meet the requirements
of the board's CPE rules as described in this chapter (relating to CPE). Prior
to offering and scheduling an approved Board Rules and Ethics Course, a sponsor
shall:
(A)
ensure that the instructor is a certified public accountant
licensed in Texas or that the instructor is team teaching with a certified
public accountant licensed in Texas and that both have completed the board's
ethics training program at least every three years or as required by the board.
This subsection is prospective only;
(B)
ensure that the instructor's certificate or license has
never been suspended or revoked for violation of the Rules of Professional
Conduct; and
(C)
provide its advertising materials to the board's CPE Committee
for approval. Such advertisements shall:
(i)
avoid commercial exploitation;
(ii)
identify the primary focus of the course; and
(iii)
be professionally presented and consistent with the intent
of §501.82 of this title (relating to Advertising).
(b)
Board Rules and Ethics Courses will be reevaluated every
three years or as required by the board.
(c)
At the conclusion of each course, the sponsor shall administer
a test to determine whether the program participants have obtained a basic
understanding of the course content, including the need for a high level of
ethical standards in the accounting profession.
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 24, 2003.
TRD-200304491
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 305-7848
22 TAC §§523.51 - 523.58
The Texas State Board of Public Accountancy (Board) proposes
new rules, Chapter 523, Subchapter D, Standards for Continuing Professional
Education Program and Rules for Sponsors, §§523.51 - 523.58 concerning
Program Standards; Evaluation; Program Time Credit Measurement; Sponsor's
Record; Board Contracted CPE Sponsors; Obligation of the Sponsor; Registry
of CPE Sponsors and Sponsor Review Oversight Program.
The new rules §§523.51 - 523.58 are proposed new rules intended
to renumber the sections, to replace any references to "continuing professional
education" with "CPE" in the section caption and in section text and, because
the CPE rules are being repealed, re-written and renumbered, to correct references
to section numbers. These new rules are the result of rule review conducted
pursuant to §2001.039 of the Government Code.
Proposed new §523.51 is intended to absorb several former rules that
are being repealed. This new section will describe a program's education and
experience prerequisites, require a program developer to demonstrate competence
to design a high quality course, require a program developer to periodically
review a program's content for accuracy and to ascertain that it is meeting
specified standards, require qualified persons other than the preparers to
review course material to ensure compliance with specified standards, require
sponsors to distribute specified accurate information about their programs,
require sponsors to evaluate instructor's performances to ensure they are
qualified as to program content and teaching methods, require sponsors to
comply with determined standards by encouraging certain specified activity,
and requires sponsors to create and maintain a specified learning environment.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed new rules will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the new rules will be zero because the proposed new rules
are a renumbering and rearranging of existing rules and do not require anyone
to do or not do anything additional or new.
B. the estimated reduction in costs to the state and to local governments
as a result of enforcing or administering the new rules will be zero because
the proposed new rules are a renumbering and rearranging of existing rules
and do not require anyone to do or not do anything additional or new.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the new rules will be zero because the proposed
new rules are a renumbering and rearranging of existing rules and do not require
anyone to do or not do anything additional or new.
Mr. Treacy has determined that for the first five-year period the new rules
are in effect the public benefits expected as a result of adoption of the
proposed new rules will be that the rules will be renumbered and rearranged
in a more logical understandable manner.
The probable economic cost to persons required to comply with the new rules
will be zero because the proposed new rules are a renumbering and rearranging
of existing rules and do not require anyone to do or not do anything additional
or new.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed new rules will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
new rules from any interested person. Comments must be received at the Board
no later than noon on September 4, 2003. Comments should be addressed to Rande
Herrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe,
Tower III, Suite 900, Austin, Texas 78701 or faxed to her attention at (512)
305-7854.
Mr. Treacy has determined that the proposed new rules will not have an
adverse economic effect on small businesses because the proposed new rules
are a renumbering and rearranging of existing rules and do not require anyone
to do or not do anything additional or new.
The Board specifically invites comments from the public on the issues of
whether or not the proposed new rules will have an adverse economic effect
on small business; if the new rules are believed to have such an effect, then
how may the Board legally and feasibly reduce that effect considering the
purpose of the statute under which the amendment is to be adopted; and if
the new rules are believed to have such an effect, how the cost of compliance
for a small business compares with the cost of compliance for the largest
business affected by the new rules under any of the following standards: (a)
cost per employee; (b) cost for each hour of labor; or (c) cost for each $100
of sales. See Texas Government Code, §2006.002(c).
The new rules are proposed under the Public Accountancy Act,
Tex. Occupations Code, §901.151 (Vernon 2001) which authorizes the Board
to adopt rules deemed necessary or advisable to effectuate the Act and §901.411
which authorizes the board to adopt rules regarding continuing professional
education.
No other article, statute or code is affected by these proposed new rules.
§523.51.Program Standards.
(a)
The stated program objectives should clearly communicate
the specific concepts and skills the program will transfer to persons completing
it.
(b)
All programs must clearly identify what prerequisites are
necessary for enrollment, so a potential participant can determine whether
they are qualified to participate in and benefit from the program. If no prerequisite
is necessary, a statement to this effect should be made.
(c)
A program developer must be prepared to demonstrate satisfactorily
their competence to design the program at a high quality level.
(d)
The program developer must review the course materials
periodically to assure that they are accurate and consistent with currently
accepted standards relating to the program's subject matter. Between these
reviews, errata sheets should be issued where appropriate and obsolete materials
should be deleted. However, between the time a new pronouncement is issued
and the issuance of errata sheets or removal of obsolete materials, the instructor
is responsible for informing participants of changes.
(e)
Course material should be reviewed by a qualified person(s)
other than the preparer(s) to ensure compliance with the provisions of these
sections and with high standards of content and instructional design. In the
case of short or once only programs, more reliance may be placed on the competence
of the presenter.
(f)
Participants should be informed in advance of objectives,
prerequisites, experience level, content, advance preparation, teaching method(s),
and recommended credit hours. Sponsors are responsible for distributing accurate
information about their programs.
(g)
Instructors must be qualified both with respect to program
content and teaching methods used. Sponsors should evaluate the performance
of instructors at the conclusion of each program to determine their suitability
for continuing to serve as instructors.
(h)
Sponsors should comply with the program standards by encouraging:
(1)
enrollment only by eligible participants;
(2)
timely distribution of materials;
(3)
completion of any advance preparation; and
(4)
assigning the appropriate number of credit hours for participants
who arrive late or leave before a program is completed.
(i)
The number of participants and physical facilities should
be consistent with the teaching method(s) specified. The learning environment
is affected by the number of participants and by the quality of the physical
facilities. Sponsors have an obligation to pay serious attention to these
two factors. The maximum number of participants for a case-oriented discussion
program should be considerably less than for a lecture program. Class size,
quality of facilities, and seating arrangements are integral and important
aspects of the educational environment and should be carefully controlled.
§523.52.Evaluation.
(a)
All programs should include some means for evaluating quality
by both participants and instructors to determine whether:
(1)
objectives have been met;
(2)
prerequisites were necessary or desirable;
(3)
facilities were satisfactory;
(4)
the instructor was effective;
(5)
advance preparation materials, if any, were satisfactory;
and
(6)
the program content was timely and effective.
(b)
Evaluations should take the form of:
(1)
pretests for advance preparation; and/or
(2)
post-tests for effectiveness of the program; and/or
(3)
other evaluation forms or questionnaires completed at the
end of the program or later.
(c)
Instructors should be informed of their performance, and
sponsors should systematically review the evaluation process to ensure its
effectiveness.
§523.53.Program Time Credit Measurement.
(a)
All programs should be measured in terms of 50-minute contact
hours. The shortest recognized program should consist of one contact hour.
A contact hour is 50 minutes of continuous participation in a group program.
Under this standard, a credit hour is granted only for each contact hour.
(b)
For continuous conferences and conventions, when individual
segments are less than 50 minutes, the sum of the segments should be considered
one total program. For example, five 30-minute presentations would equal 150
minutes and should be counted as three contact hours.
(c)
For university or college courses, each semester hour credit
should equal 15 hours toward the requirement. A quarter hour credit should
equal 10 hours.
(d)
Self-study programs should be pre-tested to determine average
completion time. If the self-study course has been approved by the Quality
Assurance Service (QAS) of the National Association of State Boards of Accountancy
(NASBA), the credit allowed shall be hour-for-hour credit. Otherwise, one
half of the average completion time is the maximum credit to be allowed.
§523.54.Sponsor's Record.
(a)
In order to support the reports required of participants,
the sponsor of group or self-study programs must retain for an appropriate
period:
(1)
record of participation;
(2)
outline of the course (or equivalent);
(3)
date(s);
(4)
location;
(5)
instructor(s);
(6)
number of credit hours; and
(7)
evaluation of program as directed in §523.52 of this
title (relating to Evaluation).
(b)
To satisfy the detailed requirements of all jurisdictions,
a retention period of three years from the date the program is completed is
appropriate. The record of attendance should reflect the credit hours earned
by each participant, including those who arrive late or leave early.
§523.55.Board Contracted CPE Sponsors.
(a)
The board may contract with any sponsor of CPE programs
to become a board contracted CPE sponsor where the sponsor, in the opinion
of the board, demonstrates that it will comply with its contractual obligations
to the board and that its programs will conform to the board's standards as
outlined in:
(1)
§523.26 of this title (relating to Credits for Instructors
and Discussion Leaders);
(2)
§523.41 of this title (relating to Board Rules and
Ethics Course), (if applicable);
(3)
§523.51 of this title (relating to Program Standards);
(4)
§523.52 of this title (relating to Evaluation); and
(5)
§523.53 of this title (relating to Program Time Credit
Measurement).
(b)
The board will also require that each organization desiring
to become a board contracted CPE sponsor agree that in the conduct of its
business it will:
(1)
Not commit fraud, deceit or engage in fiscal dishonesty
of any kind;
(2)
Not misrepresent facts or make false or misleading statements;
(3)
Not make false statements to the Board or to the Board's
agents; and
(4)
Comply with the laws of the United States and the State
of Texas.
(c)
Each organization desiring to become a board contracted
CPE sponsor must submit an application on contract forms provided by the board.
The application must be complete in all respects and shall include the contract
payment of $120 for each twelve month period of the contract.
(d)
To implement the program initially, sponsors previously
registered with the board will be assigned an initial contract term based
on the month of their current registration. The board will not prorate the
contract payment for an organization for less than one year. Upon renewal
in the second and succeeding years, the contract amount may be increased to
cover the costs of review of individual courses.
(e)
Board staff will review each application and notify the
applicant of its acceptance or rejection. Accepted applicants will be assigned
a sponsor number and can represent that they are a board contracted CPE sponsor.
An acceptance in any given year shall not bind the board to accept a sponsor
in any future year.
(f)
After the contract has been accepted, the board, in its
sole and exclusive discretion, may determine that a contracted sponsor is
not in compliance with the contract. The board will provide the contracted
sponsor reasonable notice it may make such a determination and shall provide
the contracted sponsor a reasonable opportunity to respond to the facts which
lead to the board determination. When the board has made a determination that
a contracted sponsor is not in compliance with the contract, the board may
request that the CPE sponsor make changes to meet board rules or the contract
or the board may also terminate the contract. The contract amount shall not
be prorated or refunded if the contract is terminated.
(g)
All contracts with board contracted CPE sponsors may be
renewable not less than annually by completion of a form provided by the board.
At least 30 days before the expiration of the contract, the board will send
notice of the impending expiration of the contract as a CPE sponsor.
§523.56.Obligations of the Sponsor.
(a)
In consideration for the contract as a board contracted
CPE sponsor every organization shall agree, in writing, to the following:
(1)
"We understand that after acceptance of the application
or reapplication for a contract by the board we may advise prospective attendees
of the program sponsor agreement, our sponsor number, and the number of credit
hours recommended. We further agree that if we notify licensees of this agreement
we shall do so by use of the following language. "We have entered into an
agreement with the Texas State Board of Public Accountancy to meet the requirements
of CPE rules covering maintenance of attendance records, retention of program
outlines, qualifications of instructors, program content, physical facilities,
and length of class hours. This agreement does not constitute an endorsement
by the board as to the quality of the program or its contribution to the professional
competence of the licensee."
(2)
"We understand that our advertising shall not be false
or misleading, nor contain words such as "accredited" or "approved" or any
terms which may imply that a determination has been made by the board regarding
the merits or quality of the program."
(3)
"We agree that board members, board staff, or its official
designees may inspect our facilities, examine our records, attend our courses
or seminars at no charge, and audit our program to determine compliance with
the sponsor agreement and the CPE standards of the board."
(4)
"We understand and agree that if we fail to comply with
this agreement or fail to meet acceptable standards in our programs, our sponsor
agreement may be terminated at any time by the board, our sponsor agreement
renewal application denied, and notice of such termination or denial may be
provided to licensees by the board."
(b)
Every board contracted CPE sponsor shall cooperate fully
with the board's sponsor review oversight program. This cooperation shall
include, but not be limited to providing information, records and access to
programs and instructors as requested. Failure to cooperate with the program
shall be grounds for terminating the contract.
§523.57.Registry of CPE Sponsors.
(a)
The board shall accept courses offered by sponsors shown
as being in good standing on the National Association of State Boards of Accountancy's
National Registry of CPE Sponsors; however, organizations are not required
to register with the National Association of State Boards of Accountancy.
(b)
The board shall accept courses offered by CPE sponsors
that have registered with the board.
(c)
CPE sponsors registered with the board shall:
(1)
comply with all board standards for CPE sponsors; and
(2)
cooperate with the board's sponsor review oversight program,
including but not limited to providing information, records and access to
programs and instructors as requested.
(d)
The board may revoke the registration of any CPE sponsor
registered under this section for failure to comply with board standards or
board rules.
§523.58.Sponsor Review Oversight Program.
(a)
A sponsor review oversight program is hereby established
for the purpose of monitoring the compliance by board contracted CPE sponsors
and the courses they offer with board contracts, standards and board rules.
The program shall emphasize high quality education and compliance with professional
standards. In the event a sponsor does not comply with board rules, or instruction
or materials are inadequate, the board shall take appropriate action.
(b)
The board shall contract with a sponsor review oversight
board (SROB) composed of five (5) persons designated by the CPE Committee.
The board shall set compensation of SROB members from revenue received from
sponsors requesting review.
(1)
Each member of the SROB must be CPA in good standing with
the board.
(2)
An SROB member must recuse himself or herself from service
if the member has an interest in the sponsoring organization under review
or if the member believes he/she cannot be impartial or objective.
(3)
An SROB member may not concurrently serve as a member of
the Texas State Board of Public Accountancy or its committees, or of any CPA
society's ethics committee or CPE committee.
(c)
The SROB shall:
(1)
monitor board-contracted sponsors of CPE to provide reasonable
assurance that quality CPE is being offered in accordance with board contracts,
standards and rules;
(2)
review the policies and procedures of board-contracted
CPE sponsors as to their conformity with the rules;
(3)
when necessary, prescribe actions designed to assure correction
of the deficiencies in the curriculum or CPE;
(4)
report to the CPE committee as required;
(5)
communicate to the CPE committee on a recurring basis:
(A)
problems experienced with sponsor compliance;
(B)
problems experienced in the implementation of the review
program; and
(C)
a summary of the historical results of the SROB.
(d)
The procedures used by the SROB in monitoring of sponsors
of CPE may include, but not be limited to:
(1)
random visits of sponsors as deemed appropriate, and review
of course materials;
(2)
meetings with the sponsor to review educational materials
and other record keeping documents;
(3)
reviewing the sponsor's educational philosophy;
(4)
reviewing, on the basis of a random selection, the course
evaluations from licensees to determine whether the materials have received
adverse comments;
(5)
expanding the review of records if significant deficiencies,
problems, or inconsistencies are encountered during the review of the materials;
(6)
reviewing the applications submitted by the board-contracted
CPE sponsors to determine that they will provide reasonable assurance of conforming
to the minimum standards for offering high quality CPE; and
(7)
determining that courses offered by board-contracted CPE
sponsors provide that:
(A)
education meets the needs of the licensees;
(B)
course material is up-to-date and relevant; and
(C)
adequate record keeping procedures are in place and specified
occurrences requiring consultation are outlined.
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 24, 2003.
TRD-200304493
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 305-7848
22 TAC §§523.61 - 523.66
(Editor's note: The text of the following sections proposed for
repeal will not be published. The sections may be examined in the offices
of the Texas State Board of Public Accountancy or in the Texas Register office,
Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas State Board of Public Accountancy (Board)
proposes the repeal of Chapter 523, Subchapter D, Mandatory Continuing Professional
Education (CPE) Program, §§523.61 - 523.66 concerning Establishment
of Mandatory Continuing Professional Education Program; Mandatory Continuing
Professional Education Reporting; Mandatory Continuing Professional Education
Attendance; Disciplinary Actions Relating to Continuing Professional Education;
Denial of a License and Continuing Professional Education for non-CPA Owners.
The proposed repeal of §§523.61 - 523.66 will remove rules that
are being re-written and regrouped. The repeals are a result of rule review
being conducted pursuant to §2001.039 of the Government Code.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed repeals will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the repeals will be zero because the repeals do not require
anyone to do or not do anything new or additional.
B. the estimated reductions in costs to the state and to local governments
as a result of enforcing or administering the repeals will be zero because
the repeals do not require anyone to do or not do anything new or additional.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the repeals will be zero because the repeals do
not require anyone to do or not do anything new or additional.
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
repeals will be that these rules were repealed, re-written, and regrouped.
The probable economic cost to persons required to comply with the repeals
will be zero because the repeals do not require anyone to do or not do anything
new or additional.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed repeals will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
repeal from any interested person. Comments must be received at the Board
no later than noon on September 4, 2003. Comments should be addressed to Rande
Herrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe,
Tower III, Suite 900, Austin, Texas 78701 or faxed to her attention at (512)
305-7854.
Mr. Treacy has determined that the proposed repeals will not have an adverse
economic effect on small businesses because the repeals do not require anyone
to do or not do anything new or additional.
The Board specifically invites comments from the public on the issues of
whether or not the proposed repeals will have an adverse economic effect on
small business; if the repeals are believed to have such an effect, then how
may the Board legally and feasibly reduce that effect considering the purpose
of the statute under which the repeals are to be adopted; and if the repeals
are believed to have such an effect, how the cost of compliance for a small
business compares with the cost of compliance for the largest business affected
by the repeal under any of the following standards: (a) cost per employee;
(b) cost for each hour of labor; or (c) cost for each $100 of sales. See Texas
Government Code, §2006.002(c).
The repeals are proposed under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 2001) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act and §901.411 which authorizes the board to adopt
rules regarding continuing professional education.
No other article, statute or code is affected by these proposed repeals.
§523.61.Establishment of Mandatory Continuing Professional Education Program.
§523.62.Mandatory Continuing Professional Education Reporting.
§523.63.Mandatory Continuing Professional Education Attendance.
§523.64.Disciplinary Actions Relating to Continuing Professional Education.
§523.65.Denial of a License.
§523.66.Continuing Professional Education for non-CPA Owners.
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 24, 2003.
TRD-200304492
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 305-7848
22 TAC §§523.71, 523.73 - 523.75
(Editor's note: The text of the following sections proposed for
repeal will not be published. The sections may be examined in the offices
of the Texas State Board of Public Accountancy or in the Texas Register office,
Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas State Board of Public Accountancy (Board)
proposes the repeal of Chapter 523, Subchapter E, Registered Continuing Education
Sponsors §§523.71, 523.73, 523.74, 523.75 concerning Board Contracted
Continuing Professional Education Sponsors; Obligations of the Sponsor; Registry
of Continuing Professional Education Sponsors and Sponsor Review Oversight
Program.
The proposed repeal of §§523.71, 523.73, 523.74, 523.75 will
remove rules that are being re-written and regrouped. The repeals are a result
of rule review being conducted pursuant to §2001.039 of the Government
Code.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed repeals will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the repeals will be zero because the repeals do not require
anyone to do or not do anything new or additional.
B. the estimated reductions in costs to the state and to local governments
as a result of enforcing or administering the repeals will be zero because
the repeals do not require anyone to do or not do anything new or additional.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the repeals will be zero because the repeals do
not require anyone to do or not do anything new or additional.
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
repeals will be that these rules were repealed, re-written, and regrouped.
The probable economic cost to persons required to comply with the repeals
will be zero because the repeals do not require anyone to do or not do anything
new or additional.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed repeals will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
repeal from any interested person. Comments must be received at the Board
no later than noon on September 4, 2003. Comments should be addressed to Rande
Herrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe,
Tower III, Suite 900, Austin, Texas 78701 or faxed to her attention at (512)
305-7854.
Mr. Treacy has determined that the proposed repeals will not have an adverse
economic effect on small businesses because the repeals do not require anyone
to do or not do anything new or additional.
The Board specifically invites comments from the public on the issues of
whether or not the proposed repeals will have an adverse economic effect on
small business; if the repeals are believed to have such an effect, then how
may the Board legally and feasibly reduce that effect considering the purpose
of the statute under which the repeals are to be adopted; and if the repeals
are believed to have such an effect, how the cost of compliance for a small
business compares with the cost of compliance for the largest business affected
by the repeal under any of the following standards: (a) cost per employee;
(b) cost for each hour of labor; or (c) cost for each $100 of sales. See Texas
Government Code, §2006.002(c).
The repeals are proposed under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 2001) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act and §901.411 which authorizes the board to adopt
rules regarding continuing professional education.
No other article, statute or code is affected by these proposed repeals.
§523.71.Board Contracted Continuing Professional Education Sponsors.
§523.73.Obligation of the Sponsor.
§523.74.Registry of Continuing Professional Education Sponsors.
§523.75.Sponsor Review Oversight Program.
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 24, 2003.
TRD-200304494
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 305-7848
Chapter 851.
TEXAS BOARD OF PROFESSIONAL GEOSCIENTISTS LICENSING RULES
Subchapter A. LICENSING
Subchapter E. EDUCATION
(C)
] establish that the applicant
has received a conferred degree as determined by the placement recommendations
approved by the National Council for the Evaluation of Foreign Educational
Credentials; and
(D)
] be sent by the commercial evaluation
service directly to the board, accompanied by the applicant's official transcript
or a copy of the transcript verified by the commercial evaluation service.
to the board
].
Chapter 131.
PRACTICE AND PROCEDURE
(i)
] Upon successful passage of
the examinations, or being granted a waiver of one or both examinations pursuant
to §131.105 of this title (relating to Waiver of Examinations), an applicant
shall be considered to have met the examination requirements for licensure
as a professional engineer.
No
] extensions shall be granted under any
circumstances.
An applicant for licensure
]
may, upon written request to the board
and submittal of the appropriate
forms and fees,
, take an examination for record purposes only. An
individual
[
applicant
] may only take the examination on the
principles and practice of engineering if the
individual
[
applicant
] is licensed in Texas as a professional engineer or has been
given permission by the board to do so.
Subchapter G. BOARD REVIEW OF APPLICATION Non-Approved ] Applications or Examination Waivers.
non-approved
] because of the failure to pass
the Principles and Practice of Engineering examination[
, the failure
to possess an acceptable education, the failure to claim the required creditable
experience, or the failure of the applicant who is not licensed in another
jurisdiction to establish Texas residency
].
voted non-approved
] because of the merits of the application, the completeness or incompleteness
of the application,
the failure to demonstrate an acceptable education,
the failure to claim the required creditable experience,
or if the board
did not grant a request to waive one or more examinations, then the applicant
may initiate a request that the application be reconsidered provided:
non-approved
] under reconsideration may request a personal interview.
Subchapter H. LICENSING
this state
].
For the purposes of
this section, the term "public" includes but is not limited to political subdivisions
of the state, business entities, and individuals.
The board has the
authority under the Act to issue an annual certificate of registration to
applicants that, subsequent to review and evaluation, are found to have met
all requirements of the Act and board rules. The board has the authority under
the Act to deny a certificate of registration to any applicant found not to
have met all requirements of the Act and board rules.
the Texas Engineering Practice Act (Act),
] §17
and §18 of the Texas Engineering Practice Act (Act)
and this section.
numbers
] of the firm
offering to engage or engaging in the practice
of professional engineering for the public in Texas
;
engineering services to
] the public in Texas
, if any
;
an affidavit
]
attesting to the correctness and completeness of the application; and
an annual
] registration fee as
determined by the board.
12th
] month following the date
of issuance of the certificate of registration [
and may be renewed by
filing an updated application and paying the annual registration fee set by
the board
].
At least one month in advance of the date of the expiration,
the board shall notify each firm holding a certificate of registration of
the date of the expiration and the amount of the fee that shall be required
for its renewal for one year. Such notice shall be mailed of said registration
to the last address provided by the firm to the board. The certificate of
registration may be renewed by completing the renewal application and paying
the annual registration renewal fee set by the board. It is the sole responsibility
of the firm to pay the required renewal fee at the time of payment, regardless
of whether the renewal notice is received.
president or chief executive officer or lack
]
(3)
] the dissolution of the firm;
or
(4)
] the firm no longer offers to
provide or is
not
providing engineering services to the public
in Texas.
An expired
] certificate of registration
which has been expired for less than one year
may be renewed by
completing the renewal statement sent by the board and
[
filing
an updated application,
] payment of
two (2) times
the
normal
renewal fee
. When renewing an expired certificate of registration
, [
plus a penalty fee set by the board. The board may waive the
penalty fee if
] the
authorized official
[
officer
]
of the firm
shall submit a written statement of whether
[
attests in writing that no
] engineering services were offered, pending,
or performed for the public in Texas during the time the certificate of registration
was expired.
(e)
]
Offering to engage or
engaging in the practice of professional engineering for the public in Texas
with an expired
[
The penalty fee for the renewal of a
] certificate
of registration may also
result in
[
include
] administrative
penalties under the Texas Engineering Practice Act (Act), §22c and §131.167(i)
of this title (relating to Disciplinary Actions).
application fee and
] renewal fee will not
be refunded.
Subchapter J. COMPLIANCE AND ENFORCEMENT
Part 22.
TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY
III
], Suite 900, Austin, Texas
78701-
3900
[
3942
].
Chairman ] of the Board.
The chairman shall be the presiding officer of the board.
]When
present, the
presiding officer
[
chairman
] shall conduct
all board meetings. The
presiding officer
[
chairman
]
shall appoint such committees as the board may authorize under §505.10
of this title (relating to Board Committees) and may delegate the signing
of official documents. The
presiding officer
[
chairman
]
may sign board orders on behalf of the board after the board has approved
adoption of the order. The
presiding officer
[
chairman
]
shall serve as the official spokesman of the board and shall have such other
responsibilities as assigned and such other authority as conferred by the
board.
Vice-Chairman ] of the Board.
vice-chairman
],
in the absence of the
presiding officer
[
chairman
], shall
perform the duties of the
presiding officer
[
chairman
]
as specified in §505.3 of this title (relating to
Presiding Officer
[
Chairman
] of the Board), and shall perform such other duties
as the board shall designate.
chairman
] 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 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.
chairman
] shall give written notice of board meetings
as required by law.
chairman
], or upon call of a majority of
the members of the board, after reasonable notice.
chairman
], shall prepare a written agenda for each
board meeting and distribute a copy of the agenda to each board member.
chairman
]
at least 20 days before the next board meeting.
chairman
]; however, the
presiding officer
[
chairman
] may waive the 20-day notice requirement
if such action would best serve the public interest. The
presiding officer
[
chairman
] may deny a request to appear based on time constraints
or other reasons which, in the
presiding officer's
[
chairman's
] opinion, warrant such denial. When practicable, a specific date and
time to appear shall be set by the
presiding officer
[
chairman
], and a time limit may also be imposed. The person requesting the appearance
should state in writing in reasonable detail the request to be made of the
board and the estimated time needed.
and
]
(E)
] special issues.
(10)
] The major case enforcement
committee shall be comprised of at least two board members, one of whom shall
serve as chairman. At least one committee member shall be a public member
of the board. The committee shall make recommendations to the board regarding
legal matters on litigation or potential litigation, and other major cases
to which the board is a party. The committee shall have the authority to act
on behalf of the board in instances where disclosure of facts to the full
board could cause the board's objectivity to be jeopardized, subject to final
approval by the board. The board shall have sole authority to determine whether
cases shall be heard by the major case enforcement committee or other enforcement
committee.
(11)
] The peer assistance oversight
committee shall be comprised of at least two board members, one of whom shall
serve as chairman. The committee shall oversee the peer assistance program
administered by the Texas Society of Certified Public Accountants as required
under the Texas Health and Safety Code, Chapter 467.001(B), and insure that
the minimum criteria as set out by the Texas Commission on Alcohol and Drug
Abuse are met. It shall make recommendations to the board and the TSCPA regarding
modifications to the program and, if warranted, refer cases to other board
committees for consideration of disciplinary or remedial action by the board.
The committee shall report to the board on a quarterly basis, by case number,
on the status of the program.
(12)
] The constructive enforcement
committee shall be comprised of at least two board members, one of whom shall
serve as chairman, 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 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:
Chapter 507.
EMPLOYEES OF THE BOARD
Chapter 521.
FEE SCHEDULE
Chapter 523.
CONTINUING PROFESSIONAL EDUCATION
Subchapter A. CONTINUING PROFESSIONAL EDUCATION PURPOSE AND DEFINITIONS
Subchapter B. CONTINUING PROFESSIONAL EDUCATION STANDARDS
Subchapter B. CONTINUING PROFESSIONAL EDUCATION RULES FOR INDIVIDUALS
Subchapter C. CONTINUING PROFESSIONAL EDUCATION REPORTING
Subchapter C. ETHICS RULES: INDIVIDUALS AND SPONSORS
Subchapter D. STANDARDS FOR CONTINUING PROFESSIONAL EDUCATION PROGRAMS AND RULES FOR SPONSORS
Subchapter D. MANDATORY CONTINUING PROFESSIONAL EDUCATION (CPE) PROGRAM
Subchapter E. REGISTERED CONTINUING EDUCATION SPONSORS
Part 39.
TEXAS BOARD OF PROFESSIONAL GEOSCIENTISTS