Part 5.
STATE BOARD OF DENTAL EXAMINERS
Chapter 117.
FACULTY AND STUDENTS IN ACCREDITED DENTAL SCHOOLS
22 TAC §117.1
The Texas State Board of Dental Examiners (Board) proposes
amendments to §117.1, concerning exemptions. The amendment provides that
members of the faculty of a reputable dental or dental hygiene college or
school are no longer exempt from licensure and must be licensed to practice
dentistry in Texas or must obtain a license to practice where such faculty
members perform their services for the sole benefit of such school or college.
Senate Bill 263, §26, 78th Legislature amends the exemption for licensure
faculty members of dental or dental hygiene schools.
Mr. Bobby D. Schmidt, Executive Director, Texas State Board of Dental Examiners
has determined for the first five year period the amended rule is in effect
there will be limited fiscal implications for local or state government as
a result of enforcing or administering the rule.
There is an anticipated economic cost to persons who are required to comply
with the amended section. Those persons required to comply with the amendment
will have to obtain a faculty license. There is no anticipated local employment
impact as a result of enforcing this amended section.
Mr. Schmidt has determined that for each year of the first five years the
amended rule is in effect, the public benefit anticipated as a result of enforcing
the rule will be the licensure of qualified individuals to practice dentistry
in the State of Texas.
The fiscal implications for small or large businesses will be minimal or
none at all. Therefore, the Board has determined that compliance with the
proposed amended rule will not have an adverse economic impact on small business
when compared to large businesses. The requirement under §117.1 will
impact individuals who make application for faculty licensure and not small
businesses.
Comments on the proposal may be submitted to Bobby D. Schmidt, M.Ed. Executive
Director, Texas State Board of Dental Examiners, 333 Guadalupe, Tower 3, Suite
800, Austin, Texas 78701, (512) 475-1660. To be considered, all written comments
must be received by the Texas State Board of Dental Examiners no later than
30 days from the date that this amended rule is published in the
Texas Register
.
The amendment is proposed under Texas Government Code §§2001.021
et seq; Texas Civil Statutes, the Occupations Code §254.001 which provides
the Board with the authority to adopt and enforce rules necessary for it to
perform its duties, and Senate Bill 263, §26, 78th Legislature, 2003,
which requires the Board to establish rules for the licensure of faculty members
of dental or dental hygiene schools.
Title 3, Subtitle D, Chapter 267 of the Occupations Code and Title 22,
Texas Administrative Code, Section 117 are affected by this proposal.
§117.1.Exemptions.
(a)
The definition of dentistry as contained in
the Occupations
Code, Title 3, Chapter 251.003
[
[
(1)
[
(2)
[
(3)
[
(4)
[
[
(b)
[
[
(c)
[
(d)
[
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 November 14, 2003.
TRD-200307855
Bobby D. Schmidt, M.Ed.
Executive Director
State Board of Dental Examiners
Earliest possible date of adoption: December 28, 2003
For further information, please call: (512) 475-0972
22 TAC §117.2
The Texas State Board of Dental Examiners (Board) proposes
new §117.2, concerning dental faculty licensure. The new language provides
that any person who serves as a faculty member of a dental school must hold
a dental school faculty license. Senate Bill 263, §26, 78th Legislature
amends the requirements for licensure of faculty members of a dental or dental
hygiene school.
Mr. Bobby D. Schmidt, Executive Director, Texas State Board of Dental Examiners
has determined for the first five year period the new rule is in effect there
will be limited fiscal implications for local or state government as a result
of enforcing or administering the rule.
There is an anticipated economic cost to persons who are required to comply
with the new section. There is no anticipated local employment impact as a
result of enforcing this new section.
Mr. Schmidt has determined that for each year of the first five years the
new rule is in effect, the public benefit anticipated as a result of enforcing
the rule will be the licensure of qualified individuals to serve as a faculty
member of a dental school in the state of Texas.
The fiscal implications for small or large businesses will be minimal or
none at all. Therefore, the Board has determined that compliance with the
proposed new rule will not have an adverse economic impact on small business
when compared to large businesses. The requirement under §117.2 will
impact individuals who make application for licensure by credentials and not
small businesses.
Comments on the proposal may be submitted to Bobby D. Schmidt, M.Ed. Executive
Director, Texas State Board of Dental Examiners, 333 Guadalupe, Tower 3, Suite
800, Austin, Texas 78701, (512) 475-1660. To be considered, all written comments
must be received by the Texas State Board of Dental Examiners no later than
30 days from the date that this new rule is published in the
Texas Register
.
The new section is proposed under Texas Government Code §§2001.021
et seq; Texas Civil Statutes, the Occupations Code §254.001 which provides
the Board with the authority to adopt and enforce rules necessary for it to
perform its duties, and Senate Bill 263, §26, 78th Legislature, 2003,
which requires the Board to establish rules for the licensure of faculty members
of dental or dental hygiene schools.
Title 3, Subtitle D, Chapter 267 of the Occupations Code and Title 22,
Texas Administrative Code, Section 117 are affected by this proposal.
§117.2.Dental Faculty Licensure.
(a)
Effective March 1, 2004, the SBDE will issue a license
to a dental school faculty member that provides direct patient care, upon
payment of a fee in an amount set by the Board, who meets all the following
criteria:
(1)
has graduated from a dental school;
(2)
holds a full-time or part-time salaried faculty position
at a dental or dental hygiene school accredited by the Commission on Dental
Accreditation of the American Dental Association;
(3)
obtains endorsement of the application from the Dean, Department
Chair, or Program Director of the employer-school;
(4)
pays an application fee set by the Board; and
(5)
has taken and passed the jurisprudence examination administered
by the SBDE or its designated testing service.
(b)
An applicant for a license under this chapter must file
an application for the license within six months of employment date.
(c)
A license under this chapter must be renewed annually.
(d)
A license issued under this chapter expires on the termination
of employment with the dental or dental hygiene school.
(e)
A license holder whose employment with a dental or dental
hygiene school terminates and who is subsequently employed by the same or
different dental or dental hygiene school must comply with requirements for
obtaining an original license, except that the person is not required to re-take
the jurisprudence exam.
(f)
A license issued under this chapter does not authorize
the license holder to engage in the practice of dentistry or dental hygiene
outside the auspices of the employing dental or dental hygiene school or 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 November 14, 2003.
TRD-200307856
Bobby D. Schmidt, M.Ed.
Executive Director
State Board of Dental Examiners
Earliest possible date of adoption: December 28, 2003
For further information, please call: (512) 475-0972
22 TAC §117.3
The Texas State Board of Dental Examiners (Board) proposes
new §117.3, concerning dental hygiene faculty licensure. The new language
provides that any person who serves as a faculty member of a dental hygiene
school must hold a dental or dental hygiene school faculty license. Senate
Bill 263, §26, 78th Legislature amends the requirements for licensure
of faculty members of a dental or dental hygiene school.
Mr. Bobby D. Schmidt, Executive Director, Texas State Board of Dental Examiners
has determined for the first five year period the new rule is in effect there
will be limited fiscal implications for local or state government as a result
of enforcing or administering the rule.
There is an anticipated economic cost to persons who are required to comply
with the new section. There is no anticipated local employment impact as a
result of enforcing this new section.
Mr. Schmidt has determined that for each year of the first five years the
new rule is in effect, the public benefit anticipated as a result of enforcing
the rule will be the licensure of qualified individuals to serve as a faculty
member of a dental hygiene school in the state of Texas.
The fiscal implications for small or large businesses will be minimal or
none at all. Therefore, the Board has determined that compliance with the
proposed new rule will not have an adverse economic impact on small business
when compared to large businesses. The requirement under §117.3 will
impact individuals who make application for licensure by credentials and not
small businesses.
Comments on the proposal may be submitted to Bobby D. Schmidt, M.Ed. Executive
Director, Texas State Board of Dental Examiners, 333 Guadalupe, Tower 3, Suite
800, Austin, Texas 78701, (512) 475-1660. To be considered, all written comments
must be received by the Texas State Board of Dental Examiners no later than
30 days from the date that this new rule is published in the
Texas Register
.
The new section is proposed under Texas Government Code §§2001.021
et seq; Texas Civil Statutes, the Occupations Code §254.001 which provides
the Board with the authority to adopt and enforce rules necessary for it to
perform its duties, and Senate Bill 263, §26, 78th Legislature, 2003,
which requires the Board to establish rules for the licensure of faculty members
of dental or dental hygiene schools.
Title 3, Subtitle D, Chapter 267 of the Occupations Code and Title 22,
Texas Administrative Code, Section 117 are affected by this proposal.
§117.3.Dental Hygiene Faculty Licensure.
(a)
Effective March 1, 2004, the SBDE will issue a license
to a dental hygiene school faculty member that provides direct patient care,
upon payment of a fee in an amount set by the Board, who meets all the following
criteria:
(1)
has graduated from a dental hygiene school;
(2)
holds a full-time or part-time salaried faculty position
at a dental or dental hygiene school accredited by the Commission on Dental
Accreditation of the American Dental Association;
(3)
obtains endorsement of the application from the Dean, Department
Chair, or Program Director of the employer-school;
(4)
pays an application fee set by the Board; and
(5)
has taken and passed the jurisprudence examination administered
by the SBDE or its designated testing service.
(b)
An applicant for a license under this chapter must file
an application for the license within six months of employment date.
(c)
A license under this chapter must be renewed annually
(d)
A license issued under this chapter expires on the termination
of employment with the dental or dental hygiene school
(e)
A license holder whose employment with a dental or dental
hygiene school terminates and who is subsequently employed by the same or
different dental or dental hygiene school must comply with requirements for
obtaining an original license, except that the person is not required to re-take
the jurisprudence exam.
(f)
A license issued under this chapter does not authorize
the license holder to engage in the practice of dentistry or dental hygiene
outside the auspices of the employing dental or dental hygiene school or 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 November 14, 2003.
TRD-200307857
Bobby D. Schmidt, M.Ed.
Executive Director
State Board of Dental Examiners
Earliest possible date of adoption: December 28, 2003
For further information, please call: (512) 475-0972
Chapter 501.
RULES OF PROFESSIONAL CONDUCT
Subchapter A. GENERAL PROVISIONS
22 TAC §501.51, §501.52
The Texas State Board of Public Accountancy (Board) proposes
amendments to §501.51 concerning Preamble and General Principles and §50.1.52
concerning Definitions in Subchapter A regarding General Provisions. The Board
is simultaneously withdrawing a prior proposal to renumber Chapter 501 that
was in the October 10, 2003 issue of the
Texas Register
(28 TexReg 8775).
The amendment to §501.51 was changed in subsection (e) to numerically
list the services to which the board's rules apply and to add internal auditing
and forensic accounting to that list of services. Subsection (e) was further
changed to delete the statement that licensees practicing outside the United
States should comply with that country's standards. New subsection (h) was
added to provide an interpretive comment specifically stating that outsource
internal audit services are client practice engagements. The amendment to §501.52
adds a new paragraph (21) to the former rule which states that the practice
of public accountancy is defined in the Public Accountancy Act. These amendments
are the result of rule review conducted pursuant to §2001.039 of the
Government Code. Government Code §2001.039 requires that each state agency
review and consider for readoption each rule adopted by that agency pursuant
to the Government Code, Chapter 2001 (Administrative Procedure Act). The Board
has reviewed §§501.51 and 501.52 in Subchapter A and has determined
that the reasons for adopting continue to exist, however, changes were necessary
as described in this preamble. The Board published a Notice of Intention to
Review Title 22, TAC, Part 22, Chapter 501 in the February 7, 2003 issue of
the
Texas Register
(28 TexReg 1234). No comments
were received following publication of the notice.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed amendments 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 new or additional.
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 new
or additional.
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 new or additional.
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 amendment to §501.51 will be a clear understanding that outsource
internal audit services are considered by the board to be client practice
engagements. The public benefits expected as a result of adoption of the proposed
amendment to §501.52 will be that new subsection 21 directs readers to
the statutory definition of the practice of public accountancy.
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 new or additional.
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 Monday, December 29, 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 new or additional.
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 §2001.039
of the Government Code Chapter 2001 (Administrative Procedure Act) that requires
that each state agency review and consider for readoption each rule adopted
by that agency.
No other article, statute or code is affected by these proposed amendments.
§501.51.Preamble and General Principles.
(a)
These rules of professional conduct were promulgated under
the Public Accountancy Act, which directs the Texas State Board of Public
Accountancy to promulgate rules of professional conduct "in order to establish
and maintain high standards of competence and integrity in the practice of
public accountancy and to insure that the conduct and competitive practices
of licensees serve the purposes of the Act and the best interest of the public."
(b)
The services usually and customarily performed by those
in the public, industry, or government practice of accountancy involve a high
degree of skill, education, trust, and experience which are professional in
scope and nature. The use of professional designations carries an implication
of possession of the competence associated with a profession. The public,
in general, and the business community, in particular, rely on this professional
competence by placing confidence in reports and other services of accountants.
The public's reliance, in turn, imposes obligations on persons utilizing professional
designations, both to their clients and to the public in general. These obligations
include maintaining independence of thought and action, continuously improving
professional skills, observing[
(c)
The board has an underlying duty to the public to insure
that these obligations are met in order to achieve and maintain a vigorous
profession capable of attracting the bright minds essential to serving adequately
the public interest.
(d)
These rules recognize the First Amendment rights of the
general public as well as licensees and do not restrict the availability of
accounting services. However, public accountancy, like other professional
services, cannot be commercially exploited without the public being harmed.
While information as to the availability of accounting services and qualifications
of licensees is desirable, such information should not be transmitted to the
public in a misleading fashion.
(e)
The rules are intended to have application to all kinds
of professional services performed [
(1)
accounting, auditing and other assurance services,
(2)
taxation,
(3)
financial advisory services,
(4)
litigation support
,
(5)
internal auditing,
(6)
forensic accounting,
and
(7)
management advice and consultation
.
[
(f)
Finally, these rules also recognize the duty of certified
public accountants to refrain from committing acts discreditable to the profession.
These acts, whether or not related to the accountant's practice, impact negatively
upon the public's
trust in
[
(g)
In the interpretation and enforcement of these rules, the
board may consider relevant interpretations, rulings, and opinions issued
by the boards of other jurisdictions and appropriate committees of professional
organizations, but will not be bound thereby.
(h)
Interpretive Comment: Outsourced internal
audit services are considered engagements in the client practice of public
accountancy as defined in §501.52(9) of this title (relating to Definitions).
§501.52.Definitions.
The following words and terms, when used in this chapter, shall have
the following meanings, unless the context clearly indicates otherwise. The
masculine shall be construed to include the feminine or neuter and vice versa,
and the singular shall be construed to include the plural and vice versa.
(1)
Act--The Public Accountancy Act, Chapter 901, Occupations
Code.
(2)
Advertisement--A message which is transmitted to persons
by, or at the direction of, a certificate or registration holder and which
has reference to the availability of the certificate or license holder to
perform Professional Services.
(3)
Affiliated entity--An entity controlling or being controlled
by or under common control with another entity, directly or indirectly, through
one or more intermediaries.
(4)
"Attest Service" means:
(A)
an audit or other engagement required by the board to be
performed in accordance with the auditing standards adopted by the American
Institute of Certified Public Accountants or another national accountancy
organization recognized by the board;
(B)
a review, compilation or other engagement required by the
board to be performed in accordance with standards for accounting and review
services adopted by the American Institute of Certified Public Accountants
or another national accountancy organization recognized by the board;
(C)
an engagement required by the board to be performed in
accordance with standards for attestation engagements adopted by the American
Institute of Certified Public Accountants or another national accountancy
organization recognized by the board; or
(D)
any other assurance service required by the board to be
performed in accordance with professional standards adopted by the American
Institute of Certified Public Accountants or another national accountancy
organization recognized by the board.
(5)
Board--The Texas State Board of Public Accountancy.
(6)
Certificate or registration holder--The holders of all
currently valid:
(A)
certificates issued to individuals who have been awarded
the designation certified public accountant by the board pursuant to the Act,
or pursuant to corresponding provisions of a prior Act;
(B)
registrations with the board under §901.355 of the
Act; and
(C)
firm licenses or registrations.
(7)
Charitable Organization--An organization which has been
granted tax-exempt status under the Internal Revenue Code of 1986, §501(c),
as amended.
(8)
Client--A person who enters into an agreement with a license
holder or a license holder's employer to receive a professional accounting
service.
(9)
Client Practice of Public Accountancy is the offer to perform
or the performance by a certificate or registration holder for a client or
a potential client of a service involving the use of accounting, attesting,
or auditing skills. The phrase "service involving the use of accounting, attesting,
or auditing skills" includes:
(A)
the issuance of reports on, or the preparation of, financial
statements, including historical or prospective financial statements or any
element thereof;
(B)
the furnishing of management or financial advisory or consulting
services;
(C)
the preparation of tax returns or the furnishing of advice
or consultation on tax matters;
(D)
the advice or recommendations in connection with the sale
or offer for sale of products (including the design and implementation of
computer software), when the advice or recommendations routinely require or
imply the possession of accounting or auditing skills or expert knowledge
in auditing or accounting; and/or
(E)
litigation support services.
(10)
Commission--Compensation for recommending or referring
any product or service to be supplied by another person.
(11)
Contingent fee--A fee for any service where no fee will
be charged unless a specified finding or result is attained, or in which the
amount of the fee is otherwise dependent upon the finding or result of such
service. However, a certificate or registration holder's non-Contingent fees
may vary depending, for example, on the complexity of the services rendered.
Fees are not contingent if they are fixed by courts or governmental entities
acting in a judicial or regulatory capacity, or in tax matters if determined
based on the results of judicial proceedings or the findings of governmental
agencies acting in a judicial or regulatory capacity, or if there is a reasonable
expectation of substantive review by a taxing authority.
(12)
Financial Statements--A presentation of financial data,
including accompanying notes, derived from accounting records and intended
to communicate an entity's economic resources or obligations at a point in
time, or the changes therein for a period of time, in accordance with generally
accepted accounting principles. Incidental financial data to support recommendations
to a client or in documents for which the reporting is governed by Statements
or Standards for attestation Engagements and tax returns and supporting schedules
do not constitute financial statements for the purposes of this definition.
(13)
Firm--A proprietorship, partnership, or professional or
other corporation, or other business engaged in the practice of public accountancy.
(14)
Good standing--Compliance by a certificate or registration
holder with the Board's licensing rules, including the mandatory continuing
education requirements and payment of the annual license fee, and any penalties
and other costs attached thereto. In the case of board-imposed disciplinary
or administrative sanctions, the certificate or registration holder must be
in compliance with all the provisions of the board order to be considered
in Good standing.
(15)
Licensee--The holder of a license issued by the board
to a certificate or registration holder pursuant to the Act, or pursuant to
provisions of a prior Act.
(16)
Peer review or Quality Review--The study, appraisal, or
review of the professional accounting work of a public accountancy firm that
performs attest services by a certificate holder who is not affiliated with
the firm.
(17)
Person--An individual, partnership, corporation, registered
limited liability partnership, or limited liability company.
(18)
Practice unit--An office of a firm required to be licensed
with the board for the purpose of practicing public accountancy.
(19)
Professional services or professional accounting work--means
services or work that requires the specialized knowledge or skills associated
with certified public accountants, including:
(A)
issuing reports on financial statements;
(B)
providing management or financial advisory or consulting
services;
(C)
preparing tax returns; and
(D)
providing advice in tax matters.
(20)
Report--When used with reference to financial statements,
means either an engagement performed through the application of procedures
under the Statement on Standards for Accounting and Review Services or any
opinion, report, or other form of language that states or implies assurance
as to the reliability of any financial statements and/or includes or is accompanied
by any statement or implication that the person or firm issuing it has special
knowledge or competence in accounting or auditing. Such a statement or implication
of special knowledge or competence may arise from use by the issuer of the
report of names or titles indicating that he or it is an accountant or auditor
or from the language of the report itself. The term "report" includes any
form of language which disclaims an opinion when such form of language is
conventionally understood to imply any assurance as to the reliability of
the financial statements to which reference is made. It also includes any
form of language conventionally used with respect to a compilation or review
of financial statements, and any other form of language that implies such
special knowledge or competence.
(21)
Interpretive Comment: The practice of
public accountancy is defined in §901.003 of the Act (relating to the
Practice of Public Accountancy).
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State on November 13, 2003.
TRD-200307827
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: December 28, 2003
For further information, please call: (512) 305-7848
22 TAC §§501.71, 501.73, 501.75 - 501.77
The Texas State Board of Public Accountancy (Board) proposes
amendments to §501.71 concerning Receipt of Commissions and Other Compensation, §501.73
concerning Integrity and Objectivity, §501.75 concerning Confidential
Client Communications, §501.76 concerning Records and Work Papers and §501.77
concerning Acting through Others in Subchapter C regarding Responsibilities
to Clients. The Board is simultaneously withdrawing a prior proposal to renumber
Chapter 501 that was in the October 10, 2003 issue of the
Texas Register
(28 TexReg 8775).
The amendment to §501.71 adds a new subsection (f) that refers to §501.73
for payment of commissions. The amendment to §501.73 adds a new subsection
(f) which makes reference to the section on Other Professional Standards.
The amendment to §501.75 deletes "court proceedings" because it is restrictive
and replaces "peer" reviews with "quality" reviews. The amendment to §501.76
in subsection (f), increases the record keeping period for attest services
to five years. Failure to maintain such records has been added as a violation
of this section. New subsection (g) recommends licensees obtain documentation
of delivery of records to a client. The amendment to §501.77 adds "including
non-CPA owners and employees" to subsection (a). These amendments are the
result of rule review conducted pursuant to §2001.039 of the Government
Code. Government Code §2001.039 requires that each state agency review
and consider for readoption each rule adopted by that agency pursuant to the
Government Code, Chapter 2001 (Administrative Procedure Act). The Board has
reviewed §§501.71, 501.73, 501.75, 501.76, and 501.77 in Subchapter
C and has determined that the reasons for adopting continue to exist, however,
changes were necessary as described in this preamble. The Board published
a Notice of Intention to Review Title 22, TAC, Part 22, Chapter 501 in the
February 7, 2003 issue of the
Texas Register
(28
TexReg 1234). No comments were received following publication of the notice.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed amendments 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 the state 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 amendments will be zero because
the amendments do not require the state and local governments 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 amendments will be zero because the proposed
amendments do not require the state to do or not do anything new or additional.
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 amendment to §501.71 will be that new subsection (f) refers
readers to §501.73 for payment of fees, the public benefits for §501.73
will be that new subsection (f) directs readers to other section for other
possible issues, for §501.75 will be that the rule will be easier for
readers to understand, for §501.76 will be that documents and working
papers will be retained and therefore available for longer periods and for §501.77
will be clarification that this rule applies to non-CPA owners and employees.
The probable economic cost to persons required to comply with the amendments
to §§501.71, 501.73, 501.75, and 501.77 will be zero because the
proposed amendments do not require anyone to do or not do anything new or
additional. The probable economic cost to persons required to comply with §501.76
is impossible for the board to estimate with any reliable accuracy. For attestation,
the cost would be the incremental cost of retaining records for one additional
year. With a request for anyone to provide accurate historical data, the board
estimates that the additional cost to retain might be $100.00.
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 Monday, December 29, 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 to §§501.71,
501.73, 501.75, and 501.77 will not have an adverse economic effect on small
businesses because the proposed amendments do not require anyone to do or
not do anything new or additional. In regards to §501.76 as explained
previously herein, the additional or incremental cost does not rise to the
level of an adverse economic effect.
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
("Act"), Tex. Occupations Code, §901.151 which authorizes the Board to
adopt rules deemed necessary or advisable to effectuate the Act and §2001.039
of the Government Code Chapter 2001 (Administrative Procedure Act) that requires
that each state agency review and consider for readoption each rule adopted
by that agency.
No other article, statute or code is affected by these proposed amendments.
§501.71.Receipt of Commissions and Other Compensation.
(a)
A certificate or registration holder shall not for a commission
recommend or refer to a client any product or service or refer any product
or service to be supplied to a client, or receive a commission, when the licensee
or the licensee's firm also performs services for that client requiring independence
under §501.70 of this chapter (relating to Independence).
(b)
This prohibition applies during the period in which the
certificate or registration holder is engaged to perform any of the services
requiring independence and during the period covered by any of the historical
financial statements involved in such services requiring independence.
(c)
A certificate or registration holder who receives or agrees
to receive other compensation with respect to services or products recommended,
referred, or sold by him to another person shall, no later than the making
of such recommendation, referral, or sale, make the following disclosures
in writing to such other persons:
(1)
if the other person is a client, the nature, source, and
amount of all such other compensation; or
(2)
if the other person is not a client, the nature and source
of any such other compensation.
(d)
The disclosure shall be made regardless of the amount of
other compensation involved.
(e)
This section does not apply to payments received from the
sale of all, or a material part, of an accounting practice, or to retirement
payments to persons formerly engaged in the practice of public accountancy.
(f)
Interpretive Comment: Reference should
be made to §501.73(d) of this title (relating to Integrity and Objectivity)
for issues relating to the payment of fees by a certificate or registration
holder to any person to obtain clients for the certificate or registration
holder.
§501.73.Integrity and Objectivity
(a)
A certificate or registration holder in the performance
of professional services shall maintain integrity and objectivity, shall be
free of conflicts of interest and shall not knowingly misrepresent facts nor
subordinate his or her judgment to others. In tax practice, however, a certificate
or registration holder may resolve doubt in favor of his client as long as
there is reasonable support for the position.
(b)
A conflict of interest may occur if a certificate or registration
holder performs a professional service for a client or employer and the certificate
or registration holder has a relationship with another person, entity, product,
or service that could, in the certificate or registration holder's professional
judgment, be viewed by the client, employer, or other appropriate parties
as impairing the certificate or registration holder's objectivity. If the
certificate or registration holder believes that the professional service
can be performed with objectivity, and the relationship is disclosed to and
consent is obtained from such client, employer, or other appropriate parties,
then this rule shall not operate to prohibit the performance of the professional
service because of a conflict of interest.
(c)
Certain professional engagements, such as audits, reviews,
and other services, require independence. Independence impairments under §501.70
(relating to Independence), its interpretations and rulings cannot be eliminated
by disclosure and consent.
(d)
A certificate or registration holder shall not pay a commission
to a third party to obtain a client unless, prior to being engaged by such
client, the certificate or registration holder discloses to the client in
writing the fact and the fixed or variable amount of such commission. This
section does not apply to payments made to a certificate or registration holder
for the purchase of all, or a material part, of an accounting practice, or
to retirement payments to persons formerly engaged in the practice of public
accountancy.
(e)
A certificate or registration holder shall not concurrently
engage in the practice of public accountancy and in any other business or
occupation which impairs independence or objectivity in rendering professional
services, or which is conducted so as to augment or benefit the accounting
practice unless these rules are observed in the conduct thereof.
(f)
Interpretive Comment: Reference should
be made to §501.62(4) and (5) of this title (relating to Other Professional
Standards) where applicable.
§501.75.Confidential Client Communications.
Except by permission of the client or the authorized representatives
of the client, a certificate or registration holder or any partner, officer,
shareholder, or employee of a certificate or registration holder shall not
voluntarily disclose information communicated to him by the client relating
to, and in connection with, professional services rendered to the client by
the certificate or registration holder. Such information shall be deemed confidential.
However, nothing herein shall be construed as prohibiting the disclosure of
information required to be disclosed by the standards of the public accounting
profession in reporting on the examination of financial statements or as prohibiting
disclosures [
§501.76.Records and Work Papers.
(a)
Upon request, regardless of the status of the client or
former client's account, a certificate or registration holder shall provide
to the client or former client any accounting or other records, whether in
the form of hard copy or computer readable format, belonging to, or obtained
from or on behalf of, the client that the certificate or registration holder
removed from the client's premises or received on behalf of the client. The
certificate or registration holder may make and retain copies of such records
when they form the basis of work done by him. For a reasonable charge for
personnel time and photocopying, a certificate or registration holder shall
furnish to his client or former client, upon request made within a reasonable
time after original issuance of the document in question:
(1)
a copy of the client's tax return;
(2)
a copy of any report or other document previously issued
by the certificate or registration holder to or for such client provided that
furnishing such reports to or for a client or former client would not cause
the certificate or registration holder to be in violation of the portions
of Section 501.60 of this title (relating to Auditing Standards) concerning
subsequent events;
(3)
a copy of the certificate or registration holder's working
papers, to the extent that such working papers include records which would
ordinarily constitute part of the client's books and records and are not otherwise
available to the client.
(b)
A certificate or registration holder, when performing an
engagement that is terminated prior to the completion of the engagement, is
required to return or furnish the originals of only those records originally
obtained by the certificate or registration holder from the client.
(c)
Working papers developed by a certificate or registration
holder during the course of a professional engagement as a basis for, and
in support of, an accounting, audit, consulting, tax, or other professional
report prepared by the certificate or registration holder for a client, shall
be and remain the property of the certificate or registration holder who developed
the working papers.
(1)
Working papers, whether in the form of hard copy or computer
readable format, are those papers developed by the certificate or registration
holder incident to the performance of his engagement which do not result in
changes to the client's records or are in part of the records ordinarily maintained
by the client.
(2)
Analyses of inventory or other accounts as part of the
certificate or registration holder's selective audit procedures, even when
prepared by client personnel at the request of the certificate or registration
holder, are the certificate or registration holder's working papers.
(3)
If the analyses described in paragraph (2) of this subsection
result in changes to the client's records, the certificate or registration
holder is required to furnish the details from his working papers in support
of the journal entries recording such changes unless the journal entries themselves
contain all necessary details.
(d)
Working papers include, but are not limited to:
(1)
letters of confirmation and representation;
(2)
excerpts of company documents;
(3)
audit programs;
(4)
internal memoranda;
(5)
schedules;
(6)
flowcharts; and
(7)
narratives.
(e)
Working papers which constitute client records include,
but are not limited to:
(1)
worksheets in lieu of books of original entry such as listings
and distributions of cash receipts or cash disbursements;
(2)
worksheets in lieu of general ledger or subsidiary ledgers,
such as accounts receivable, job cost and equipment ledgers, or similar depreciation
records;
(3)
all adjusting and closing journal entries and supporting
details when the supporting details are not fully set forth in the explanation
of the journal entry; and
(4)
consolidating or combining journal entries and worksheets
and supporting detail in arriving at final figures incorporated in an end
product such as financial statements or tax returns.
(f)
Documentation or working papers required by professional
standards for attest services shall be maintained in paper or electronic format
by a certificate or registration holder for a period of not less than
five
[
(g)
Interpretive Comment: It is recommended
that a certificate or registration holder obtain a receipt or other written
documentation of the delivery of records to a client.
§501.77.Acting through Others.
(a)
A certificate or registration holder shall not permit others
including non-CPA owners and employees,
to carry out on his behalf,
either with or without compensation, acts, which, if carried out by the certificate
or registration holder, would place him in violation of these rules of professional
conduct.
(b)
The board shall consider that the conduct of any non-CPA
owner or employee in connection with the business of a licensed firm is the
conduct of that licensed firm for the purposes of the rules of professional
conduct.
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 November 13, 2003.
TRD-200307828
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: December 28, 2003
For further information, please call: (512) 305-7848
22 TAC §§501.80, 501.81, 501.85
The Texas State Board of Public Accountancy (Board) proposes
amendments to §501.80 concerning Practice of Public Accountancy, §501.81
concerning Firm License Requirements and §501.85 concerning Complaint
Notice in Subchapter D. The Board is simultaneously withdrawing a prior proposal
to renumber Chapter 501 that was in the October 10, 2003 issue of the
The amendment to §501.80 adds a new subsection (c) to the rule, which
states that the section incorporates the definitions of the practice of public
accountancy, professional services, and accounting work found in other sections
and the Act. The amendment to §501.81 adds a new subsection (f) to the
rule that requires a licensee who is employed by an unlicensed entity that
offers the client practice of public accountancy services to use the disclaimer
in subsection (c). The amendment to §501.85 simplifies the board's address
by changing Roman Numeral III to 3. These amendments are the result of rule
review conducted pursuant to §2001.039 of the Government Code. Government
Code §2001.039 requires that each state agency review and consider for
readoption each rule adopted by that agency pursuant to the Government Code,
Chapter 2001 (Administrative Procedure Act). The Board has reviewed §§501.80,
501.81 and 501.85 in Subchapter D and has determined that the reasons for
adopting continue to exist, however, changes were necessary as described in
this preamble. The Board published a Notice of Intention to Review Title 22,
TAC, Part 22, Chapter 501 in the February 7, 2003 issue of the
Texas Register
(28 TexReg 1234). No comments were received following
publication of the notice.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed amendments 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 new or additional.
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 new
or additional.
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 new or additional.
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 amendment to §501.80 will be other named definitions found in
other cited sections are incorporated into this section. The public benefits
expected as a result of adoption of the proposed amendment to §501.81
will be that licensees employed by unlicensed firms will have a better understanding
as to when they must use the disclaimer. The public benefits expected as a
result of adoption of the proposed amendment to §501.85 will be that
the board's address will be simplified.
The probable economic cost to persons required to comply with the amendment
will be zero because the proposed amendments 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 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 Monday, December 29, 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 new or additional.
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 §2001.039
of the Government Code Chapter 2001 (Administrative Procedure Act) that requires
that each state agency review and consider for readoption each rule adopted
by that agency.
No other article, statute or code is affected by these proposed amendments.
§501.80.Practice of Public Accountancy.
(a)
A certificate or registration holder may not engage in
the practice of public accountancy unless he holds a valid license issued
by the board. A license is not valid for any date or for any period prior
to the date it is issued by the board and it automatically expires and is
no longer valid after the end of the period for which it is issued.
(b)
Any licensee of this board in good standing as a certified
public accountant or public accountant may use such designation whether or
not the licensee is in the client, industry, or government practice of public
accountancy. However, a licensee who is not in the client practice of public
accountancy may not in any manner, through use of the CPA designation or otherwise,
claim or imply independence from his employer or that the licensee is in the
client practice of public accountancy.
(c)
Interpretive Comment: This section incorporates
the definitions of the practice of public accountancy and professional services
and accounting work found in §501.52(9) and §501.52(19) of this
title (relating to Definitions) as well as §901.003 of the Act (relating
to Practice of Public Accountancy).
§501.81.Firm License Requirements.
(a)
A Firm, including a sole proprietorship, may not provide
attest services or use the title "CPA," "CPAs," "CPA Firm," "Certified Public
Accountants," "Certified Public Accounting Firm," or "Auditing Firm" or any
variation of those titles unless the firm holds a firm license.
(b)
An individual may not provide attest services unless:
(1)
the individual has a license or registration issued under
the Act; and
(2)
the individual offers the attest services through an entity
holding a firm license.
(c)
Each advertisement or written promotional statement that
refers to a CPA's designation and his or her association with an unlicensed
entity in the client practice of public accountancy must include the disclaimer:
"This firm is not a CPA firm." The disclaimer must be included in conspicuous
proximity to the name of the unlicensed entity and be printed in type not
less bold than that contained in the body of the advertisement or written
statement. If the advertisement is in audio format only, the disclaimer shall
be clearly declared at the conclusion of each such presentation.
(d)
The requirements of subsection (c) of this section do not
apply with regard to a certificate or registration holder performing services:
(1)
as a licensed attorney at law of this state while in the
practice of law or as an employee of a licensed attorney when acting within
the scope of the attorney's practice of law; or
(2)
as an employee, officer, or director of a federally-insured
depository institution, when lawfully acting within the scope of the legally
permitted activities of the institution's trust department.
(e)
On the third determination by the board that a certificate
holder has practiced without a license or through an unregistered entity in
violation of subsection (c) of this section, the individual's certificate
shall be subject to revocation and may not be reinstated for at least 12 months
from the date of the revocation.
(f)
Interpretive Comment: A certificate or
registration holder who is employed by an unlicensed firm that offers services
that fall within the definitions of the client practice of public accountancy
as defined in §501.2(9) and §501.2(19) of this title (relating to
Definitions) and §901.003 of the Act (relating to Practice of Public
Accountancy) must comply with the disclaimer requirement found in subsection
(c) of this section.
§501.85.Complaint Notice.
When a firm receives a complaint that an alleged violation of the Act
or Rules of Professional Conduct has occurred, a certificate or registration
holder shall provide to the complainant a statement that: Complaints concerning
Certified Public Accountants may be addressed in writing to the Texas State
Board of Public Accountancy at 333 Guadalupe, Tower
3
[
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 November 13, 2003.
TRD-200307829
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: December 28, 2003
For further information, please call: (512) 305-7848
22 TAC §§501.90 - 501.93
The Texas State Board of Public Accountancy (Board) proposes
amendments to §501.90, concerning Discreditable Acts, §501.91, concerning
Reportable Events, §501.92, concerning Frivolous Complaints and §501.93,
concerning Responses in Subchapter E, regarding Responsibilities to the Board/Profession.
The Board is simultaneously withdrawing a prior proposal to renumber Chapter
501 that was in the October 10, 2003, issue of the
Texas Register
(28 TexReg 8775).
The amendment to §501.90 adds a new part to paragraph (5) of the rule.
The new part states that a final conviction, imposition of deferred adjudication
or community supervision involving moral turpitude, alcohol abuse or controlled
substances is a discreditable act. New paragraph (19) adds a reference to
Board Rule, §519.16, and also states that any crime of moral turpitude,
alcohol abuse or controlled substances directly relates to the practice of
public accountancy and defines moral turpitude as a crime involving grave
infringement of the moral sentiment of the community. The amendment to §501.91(a)(1)
moves "any crime of which fraud or dishonesty is an element" from subparagraph
(A) to (C). It also moves language regarding the qualifications, functions
or duties of a public accountant from subparagraph (B) to subparagraph (D).
The remaining part of subparagraph (B) is re-written to include only crimes
of moral turpitude. Subparagraph (C) adds alcohol abuse and controlled substances
to the list of crimes that must be reported to the Board. The amendment to §501.92
adds a "registration" holder to the rule, as a person who must comply with
this section. The amendment to §501.93 adds "faxing" and "facsimile"
to the methods the Board may use to communicate with its licensees. These
amendments are the result of rule review conducted pursuant to §2001.039
of the Government Code. Government Code §2001.039 requires that each
state agency review and consider for readoption each rule adopted by that
agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure
Act). The Board has reviewed §§501.90 - 501.93 in Subchapter E and
has determined that the reasons for adopting continue to exist, however, changes
were necessary as described in this preamble. The Board published a Notice
of Intention to Review Texas Administrative Code, Title 22, Part 22, Chapter
501 in the February 7, 2003, issue of the
Texas Register
(28 TexReg 1234). No comments were received following publication
of the notice.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed amendments 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 new or additional and also
for §501.90 and §501.91 the Board has already been pursuing these
types of cases.
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 new
or additional and also for §501.90 and §501.91 the Board has already
been pursuing these types of cases.
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 new or additional
and also for §501.90 and §501.91 the Board has already been pursuing
these types of cases.
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 to §501.90 and §501.91 will be that it will
be clearly stated that crimes involving moral turpitude will continue to be
investigated and prosecuted by the board as discreditable acts. The public
benefits expected as a result of adoption of the proposed amendment to §501.92
will be that an inapplicable term will be removed from the rule. The public
benefits expected as a result of adoption of the proposed amendment to §501.93
will be that the board's use of facsimiles to communicate with its licensees
be included in the rule.
The probable economic cost to persons required to comply with the amendments
to §501.90 and §501.91 should not change because the board had been
pursing these types of cases. The probable economic cost to persons required
to comply with the amendments to §501.92 and §501.93 will be zero
because the proposed amendments 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 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 Monday, December 29, 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 in regards to §501.90
and §501.91 the board has been pursuing these types of cases. In regards
to §501.92 and §501.93 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 new
or additional.
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,
Texas Occupations Code, §901.151 (Vernon 2001) which authorizes the Board
to adopt rules deemed necessary or advisable to effectuate the Act and §2001.039
of the Government Code Chapter 2001 (Administrative Procedure Act) that requires
that each state agency review and consider for readoption each rule adopted
by that agency.
No other article, statute or code is affected by these proposed amendments.
§501.90.Discreditable Acts.
A certificate or registration holder shall not commit any act that
reflects adversely on his fitness to engage in the practice of public accountancy.
A discreditable act includes but is not limited to:
(1) - (4)
(No change.)
(5)
final conviction of any crime or imposition of deferred
adjudication or community supervision in connection with a criminal prosecution,
an element of which is dishonesty or fraud under the laws of any state or
the United States
, or a criminal prosecution for a crime of moral turpitude,
or a criminal prosecution involving alcohol abuse or controlled substances
;
(6) - (16)
(No change.)
(17)
voluntarily disclosing information communicated to the
certificate holder by an employer, past or present, or through the certificate
holder's employment in connection with accounting services rendered to the
employer, except:
(A) - (B)
(No change.)
(C)
pursuant to a subpoena or other compulsory process [
(D) - (E)
(No change.)
(18)
(No change.)
(19)
Interpretive Comment: The board has found
in §519.16 of this title (relating to Misdemeanors that Subject a Certificate
or Registration Holder to Discipline by the Board) and §525.1 of this
title (relating to Applications for the Uniform CPA Examination, Issuance
of the CPA Certificate, a License, or Renewal of a License for Individuals
with Criminal Backgrounds) that any crime of moral turpitude directly relates
to the practice of public accountancy. A crime of moral turpitude is defined
in this chapter as a crime involving grave infringement of the moral sentiment
of the community. The board has found in §519.16 of this title that any
crime involving alcohol abuse or controlled substances directly relates to
the practice of public accountancy.
§501.91.Reportable Events.
(a)
A licensee shall report in writing to the board the occurrence
of any of the following events within 30 days of the date the licensee has
knowledge of these events:
(1)
the conviction or imposition of deferred adjudication of
the licensee of any of the following:
(A)
a felony [
(B)
a
[
(C)
any crime of which fraud or dishonesty
is an element or that involves alcohol abuse or controlled substances; and
(D)
any crime related to the qualifications,
functions, or duties of a public accountant or certified public accountant,
or to acts or activities in the course and scope of the practice of public
accountancy or as a fiduciary.
(2) - (3)
(No change.)
(b) - (d)
(No change.)
(e)
Interpretive Comment: A crime of moral
turpitude is defined in this chapter as a crime involving grave infringement
of the moral sentiment of the community.
§501.92.Frivolous Complaints.
A certificate
or registration
holder who, in writing to
the board, accuses another certificate holder of violating the rules of the
board shall assist the board in any investigation and/or prosecution resulting
from the written accusation. Failure to do so, such as not appearing to testify
at a hearing or to produce requested documents necessary to the investigation
or prosecution, without good cause is a violation of this rule.
§501.93.Responses.
(a)
An applicant, certificate or registration holder shall
substantively respond in writing to any communication from the board requesting
a response, within 30 days of the mailing
or faxing
of such communication
by registered or certified mail
or facsimile
to the last address
or facsimile number
furnished to the board by the applicant, certificate
or registration holder.
(b)
An applicant, certificate or registration holder shall
provide copies of documentation and/or working papers in response to the board's
request at no expense to the board within 30 days
of the date of transmission
of the facsimile or
of the mailing of such a request by registered or
certified mail to the last address furnished to the board by the applicant,
certificate or registration holder. An applicant, certificate or registration
holder may comply with this subsection by providing the board with original
records for the board to duplicate. In such a circumstance, upon request the
board will provide an affidavit from the custodian of records documenting
custody and control of the records.
(c) - (e)
(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 November 13, 2003.
TRD-200307830
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: December 28, 2003
For further information, please call: (512) 305-7848
Subchapter B. CERTIFICATION BY EXAMINATION
22 TAC §511.22
The Texas State Board of Public Accountancy (Board) proposes
an amendment to §511.22, concerning Initial Filing of the Application
of Intent.
The amendment to §511.22 will make modifications needed to implement
the computer-based Uniform CPA Examination. The amendment will make some minor
editorial corrections, insert an acronym for the lengthy name of a law, substitute
notarized copy for certified copy, and clarify the documentation that is required
to comply with a federal statute. This amendment is the result of rule review
conducted pursuant to §2001.039 of the Government Code. Government Code §2001.039
requires that each state agency review and consider for readoption each rule
adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative
Procedure Act). The Board has reviewed §511.22 and has determined that
the reasons for adopting continue to exist, however, changes were necessary
as described in this preamble. The Board published a Notice of Intention to
Review Texas Administrative Code, Title 22, Part 22, Chapter 511 in the February
7, 2003, issue of the
Texas Register
(28 TexReg
1234). No comments were received following publication of the notice.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the amendment will be zero because the amendment does not
require the state to do anything additional.
B. the estimated reduction in costs to the state and to local governments
as a result of enforcing or administering the amendment will be zero because
the amendment does not require the state to do anything additional.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the amendment will be zero because the amendment
does not require the state to do anything additional.
Mr. Treacy has determined that for the first five-year period the amendment
is in effect the public benefits expected as a result of adoption of the proposed
amendment will be that the rule be easier to understand and will be clearer
about federally required documentation.
The probable economic cost to persons required to comply with the amendment
will be zero because the amendment only changes the types of documentation
required, it does not increase the requirement for documentation.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed amendment will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
amendment from any interested person. Comments must be received at the Board
no later than noon on Monday, December 29, 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 amendment will not have an
adverse economic effect on small businesses because the amendment only changes
the types of documentation required, it does not increase the requirement
for documentation.
The Board specifically invites comments from the public on the issues of
whether or not the proposed amendment will have an adverse economic effect
on small business; if the amendment is believed to have such an effect, then
how may the Board legally and feasibly reduce that effect considering the
purpose of the statute under which the amendment is to be adopted; and if
the amendment is believed to have such an effect, how the cost of compliance
for a small business compares with the cost of compliance for the largest
business affected by the amendment under any of the following standards: (a)
cost per employee; (b) cost for each hour of labor; or (c) cost for each $100
of sales. See Texas Government Code, §2006.002(c).
The amendment is proposed under the Public Accountancy Act ("Act"),
Texas Occupations Code, §901.151 which authorizes the Board to adopt
rules deemed necessary or advisable to effectuate the Act, §901.302 which
authorizes applications of intent, and the Federal Responsibility and Work
Opportunity Reconciliation Act of 1996 and §2001.039 of the Government
Code Chapter 2001 (Administrative Procedure Act) that requires that each state
agency review and consider for readoption each rule adopted by that agency.
No other article, statute or code is affected by this proposed amendment.
§511.22.Initial Filing of the Application of Intent.
(a)
The initial filing of the application of intent shall be
made on forms prescribed by the board and shall also be in compliance with
board rules and with all applicable laws. The application of intent may be
submitted at any time and will be used to determine compliance and eligibility
for the applicant to take the Uniform CPA Examination. The application of
intent will remain active until:
(1)
the applicant
takes
[
(2)
(No change.)
(b) - (f)
(No change.)
(g)
In compliance with the Federal Personal Responsibility
and Work Opportunity Reconciliation Act of 1996
FPRWOR
, the board
must verify proof of legal status in the United States. The applicant shall
provide evidence of legal status by submitting a
notarized copy
[
(1)
(No change.)
(2)
An acceptable document from list A or list B, and an acceptable
document from list C.
(A)
List A:
(i) - (iv)
(No change.)
(v)
other document in compliance with FPRWOR
[
[(vi)
Unexpired Temporary Resident Card (INS
Form I-688);]
[(vii)
Unexpired Employment Authorization
Card (INS Form I-688A);]
[(viii)
Unexpired Reentry Permit (INS Form
I-327);]
[(ix)
Unexpired Refugee Travel Document (INS
Form I-571); or]
[(x)
Unexpired Employment Authorization Document
issued by the INS which contains a photograph (INS Form I-688B).]
(B)
List B:
(i) - (iii)
(No change.)
(iv)
other document in compliance with the FPRWOR
[
[(v)
U.S. Military card or draft record;]
[(vi)
Military dependent's ID card;]
[(vii)
U.S. Coast Guard Merchant Mariner card;]
[(viii)
Native American tribal document; or]
[(ix)
Driver's license issued by a Canadian
government authority]
(C)
List C:
(i) - (iii)
(No change.)
(iv)
other document in compliance with the FPRWOR.
[
[(v)
U.S. Citizen ID Card (INS Form I-197);]
[(vi)
ID Card for use of Resident Citizen
in the United States (INS Form I-179); or]
[(vii)
Unexpired employment authorization
document issued by the INS (other than those listed under List A)]
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 November 13, 2003.
TRD-200307831
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: December 28, 2003
For further information, please call: (512) 305-7848
22 TAC §511.29
The Texas State Board of Public Accountancy (Board) proposes
new §511.29, concerning Examination Candidate Data.
The new §511.29 will assist in implementing the computer based Uniform
CPA Examination. With exam candidates' authorization, the board will provide
candidate data to NASBA so it may maintain a national database of eligible
exam candidates. This new rule is the result of rule review conducted pursuant
to §2001.039 of the Government Code. Government Code §2001.039 requires
that each state agency review and consider for readoption each rule adopted
by that agency pursuant to the Government Code, Chapter 2001 (Administrative
Procedure Act). The Board published a Notice of Intention to Review Texas
Administrative Code, Title 22, Part 22, Chapter 511 in the February 7, 2003,
issue of the
Texas Register
(28 TexReg 1234).
No comments were received following publication of the notice.
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 insignificant and minimal because the
data will be transmitted electronically.
B. the estimated reduction in costs to the state and to local governments
as a result of enforcing or administering the new rule will be zero.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the new rule will be zero.
Mr. Treacy has determined that for the first five-year period the new rule
is in effect the public benefits expected as a result of adoption of the proposed
new rule will be that exam candidates will have been vetted through a national
database and eligible exam candidates will be able to take the Uniform CPA
Examination at any approved testing center in the United States.
The probable economic cost to persons required to comply with the new rule
will be zero.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed new rule will not affect a local economy.
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 Monday, December 29, 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 data will be transmitted electronically.
The Board specifically invites comments from the public on the issues of
whether or not the proposed new rule will have an adverse economic effect
on small business; if the new rule is believed to have such an effect, then
how may the Board legally and feasibly reduce that effect considering the
purpose of the statute under which the new rule is to be adopted; and if the
new rule is believed to have such an effect, how the cost of compliance for
a small business compares with the cost of compliance for the largest business
affected by the new rule under any of the following standards: (a) cost per
employee; (b) cost for each hour of labor; or (c) cost for each $100 of sales.
See Texas Government Code, §2006.002(c).
The new rule is proposed under the Public Accountancy Act ("Act"),
Texas Occupations Code, §901.151 which authorizes the Board to adopt
rules deemed necessary or advisable to effectuate the Act, §901.301 which
authorizes the board to contract with another entity to conduct the Uniform
CPA Examination and §2001.039 of the Government Code Chapter 2001 (Administrative
Procedure Act) that requires that each state agency review and consider for
readoption each rule adopted by that agency.
No other article, statute or code is affected by this proposed new rule.
§511.29.Examination Candidate Data.
(a)
The board shall provide candidate data to the National
Association of State Boards (NASBA) of Accountancy for the sole and specific
purpose of maintaining the national candidate database of individuals eligible
for the Uniform CPA Examination.
(b)
In compliance with §901.160(c)(1) of the Public Accountancy
Act (Chapter 901 of the Occupations Code--Vernon's 2003), the Board shall
obtain authorization from the candidate for the sharing of data with NASBA.
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 November 13, 2003.
TRD-200307832
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: December 28, 2003
For further information, please call: (512) 305-7848
22 TAC §511.52, §511.56
The Texas State Board of Public Accountancy (Board) proposes
an amendment to §511.52, concerning Recognized Colleges and Universities
and §511.56, concerning Educational Qualifications under the Act.
The amendments delete associate degree as one of the criteria from §511.52
and increase the accounting courses requirement from 20 semester hours to
30 semester hours in §511.56. These amendments are the result of rule
review conducted pursuant to §2001.039 of the Government Code. Government
Code §2001.039 requires that each state agency review and consider for
readoption each rule adopted by that agency pursuant to the Government Code,
Chapter 2001 (Administrative Procedure Act). The Board has reviewed §511.52
and §511.56 and has determined that the reasons for adopting continue
to exist, however, changes were necessary as described in this preamble. The
Board published a Notice of Intention to Review Texas Administrative Code,
Title 22, Part 22, Chapter 511 in the February 7, 2003 issue of the
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed amendments 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 amendments do not
require any additional work.
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.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the amendments will be zero.
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 amendment to §511.52 will be that this rule is clearer as to
which categories of colleges or universities are eligible for consideration
and for §511.56 will be that CPA examination candidates will have completed
an additional 10 hours of accounting courses as part of their educational
preparation.
The probable economic cost to persons required to comply with the amendments
will be zero because the amendment to §511.52 has no effect at all and
the amendment to §511.56 does not increase the total number of semester
hours that is required.
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 Monday, December 29, 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 amendment to §511.52
has no effect at all and the amendment to §511.56 does not increase the
total number of semester hours that is required.
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
("Act"), Texas Occupations Code, §901.151 which authorizes the Board
to adopt rules deemed necessary or advisable to effectuate the Act, §901.254
which authorizes the board to determine accounting concentration by board
rule and §2001.039 of the Government Code Chapter 2001 (Administrative
Procedure Act) that requires that each state agency review and consider for
readoption each rule adopted by that agency.
No other article, statute or code is affected by this proposed amendments.
§511.52.Recognized Colleges and Universities.
In passing upon the qualifications of an applicant, the board shall
generally accept colleges or universities which offer
a
[
(1) - (7)
(No change.)
§511.56.Educational Qualifications under the Act.
(a)
(No change.)
(b)
An applicant for the Uniform CPA Examination under the
current Act shall meet the following educational requirements at the time
of filing the initial application to take the examination and in order to
qualify to write the examination:
(1) - (2)
(No change.)
(3)
complete not fewer than 30 semester hours or quarter-hour
equivalents of accounting courses [
(4)
(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 November 13, 2003.
TRD-200307833
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: December 28, 2003
For further information, please call: (512) 305-7848
22 TAC §§511.70, 511.72, 511.83, 511.84, 511.87, 511.91, 511.93
The Texas State Board of Public Accountancy (Board) proposes
amendments to §511.70, concerning Grounds for Disciplinary Action of
Candidates, §511.72, concerning Uniform Examination, §511.83, concerning
Granting of Credit by Transfer of Credit, §511.84, concerning Partial
Examination after Transfer of Credit, §511.87, concerning Loss of Credit, §511.91,
concerning Board Responsibilities Regarding Requested Accommodations for Disabilities,
and §511.93, concerning Applicant's Responsibility for Requesting Accommodations
for Disabilities in Subchapter D, regarding CPA Examination.
The amendments to §511.70 and §511.72 (except for one clarification
statement in §511.70 regarding using devices, materials or documents),
are non-substantive editorial changes necessary to recognize and implement
the change from a written Uniform CPA Examination conducted at a few board
selected, controlled and supervised examination centers to a computer-based
Uniform CPA Examination conducted at several testing centers under the supervision
and control of testing center vendors that were selected by and are under
contract to NASBA, which has contracted with the board to administer the examination.
The amendment to §511.83 creates a pre-January 1, 2004 window of time
in which an exam candidate may earn partial credit that may be transferred
with a grade of at least 50, creates a post-January 1, 2004 opportunity to
transfer credit earned with a grade of at least 75 and creates in both instances
the requirements that the other jurisdiction awarded credit to their candidate
and that the credit has not expired.
The amendment to §511.84 creates deadlines by which a candidate allowed
conditional credit for transfer of credit must pass the remaining subjects
or forfeit the conditional credit. Credit earned between September 1, 1989
and November 2, 2000 has the next six consecutive examinations. Credit earned
between November 2, 2000 and January 1, 2004 has the next six written or computer
examinations. Credit earned after January 1, 2004 has the next 18 months.
The amendment to §511.87 has several editorial changes for clarification.
The amendment to §511.91 eliminates the statement that all examination
facilities will be physically accessible to disabled applicants because the
computer-based examination testing centers will not be selected by or under
the control of the board and because new §511.104 states that all testing
centers will conform to the standards of the Americans with Disabilities Act
of 1990.
The amendment to §511.93 shifts the deadline for applying for accommodation
from the application for examination deadline to the time of filing an Application
of Intent or an Examination Application.
These amendments are the result of rule review conducted pursuant to §2001.039
of the Government Code. Government Code §2001.039 requires that each
state agency review and consider for readoption each rule adopted by that
agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure
Act). The Board has reviewed §§511.70, 511.72, 511.83, 511.84, 511.87,
511.91, and 511.93 and has determined that the reasons for adopting continue
to exist, however, changes were necessary as described in this preamble. The
Board published a Notice of Intention to Review Texas Administrative Code,
Title 22, Part 22, Chapter 511 in the February 7, 2003, issue of the
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed amendments 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.
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.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the amendments will be zero.
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 that the board's rules will be updated to incorporate
computer-based examination.
The probable economic cost to persons required to comply with the amendments
will be zero.
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 Monday, December 29, 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 amendments do not
cause the expenditure of funds or assets by small businesses.
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
("Act"), Texas Occupations Code, §901.151 which authorizes the Board
to adopt rules deemed necessary or advisable to effectuate the Act, §901.301
which authorizes the board to contract with an entity to conduct uniform CPA
examinations, §901.306 which authorizes the board to use the services
of NASBA, §901.310 which authorizes the board to promulgate rules regarding
conditional credit, §901.312 which authorizes the board to accept partial
examination credit from another state and §2001.039 of the Government
Code Chapter 2001 (Administrative Procedure Act) that requires that each state
agency review and consider for readoption each rule adopted by that agency.
No other article, statute or code is affected by this proposed amendments.
§511.70.Grounds for Disciplinary Action of Candidates.
(a)
The board may discipline a candidate for any grounds specified
in Section 901.503 of the Public Accountancy Act. Such grounds include but
are not limited to the conduct described in subsections (b) -
(e)
[
(b)
(No change.)
(c)
The board may discipline any candidate for failing to comply
with written guidelines of conduct to be adhered to by candidates during the
examination or oral guidance by
a testing center administrator
[
(d)
(No change.)
(e)
Cheating, subverting, attempting to subvert, aiding, abetting
or conspiring to cheat on the CPA Examination includes, but is not limited
to, engaging in, solicitation, or procuring any of the following:
(1)
any communication between
the examinee
[
(2)
any communication between
the examinee
[
(3)
taking by another of all or any part of the examination
for the examination candidate
;
[
(4)
possession or use at any time during the examination or
while the examinee is in the examination
testing center
[
(5)
using or referring at any time after the
commencement of the examination and prior to the conclusion of the examination,
to include all breaks during the examination, to any device, material, or
document that is not expressly authorized for use by examinees.
§511.72.Uniform Examination.
(a)
The board shall [
(b) - (d)
(No change.)
§511.83.Granting of Credit by Transfer of Credit.
(a)
In order for the board to grant credit to a candidate for
partial completion of the Uniform CPA Examination given by the licensing authority
of another jurisdiction
taken after September 1, 1991 and prior to January
1, 2004
, the candidate must have met the following requirements
:
[
(1)
the
[
(2)
the
[
(3)
the
[
(4)
the candidate was awarded credit by the
licensing authority of another jurisdiction for the subject(s) taken while
a candidate of that board; and
(5)
the credit awarded by the licensing authority
of another jurisdiction has not expired.
(b)
In order for the board to grant credit
to a candidate for partial completion of the Uniform CPA Examination given
by the licensing authority of another jurisdiction taken after January 1,
2004, the candidate must have met the following requirements:
(1)
the candidate earned a grade of 75 or higher on any subject
of the examination;
(2)
the candidate was awarded credit by the licensing authority
of another jurisdiction for the subject(s) taken while a candidate of that
board; and
(3)
the credit awarded by the licensing authority of another
jurisdiction has not expired.
(c)
[
(d)
[
§511.84.Partial Examination after Transfer of Credit.
(a)
Any candidate allowed conditional credit for subjects passed
after September 1, 1989
and prior to November 2, 2000
, must pass
the remaining subjects within the next six consecutive examinations or forfeit
credits received.
(b)
Any candidate allowed conditional credit
for subjects passed after November 2, 2000 and prior to January 1, 2004, must
pass the remaining subjects within the next six consecutive examinations,
which may be offered in a paper or computer format, or forfeit credits received.
(c)
Any candidate allowed conditional credit
for subject(s) passed after January 1, 2004, must pass the remaining subject(s)
within the next eighteen (18) months from the date conditional credit was
awarded or forfeit credit received for the subject.
(d)
[
§511.87.Loss of Credit.
(a)
Any candidate having earned [
(b)
Any candidate failing to receive credit for all subjects
within the time limitation of this Act shall be notified that credits have
expired
[
(c)
The
expiration
[
§511.91. Board Responsibilities Regarding Requested [
(a)
(No change.)
(b)
[
§511.93. Applicant's Responsibility for Requesting [
An applicant seeking an accommodation is responsible for making a request
for accommodation and providing documentation of the need
with the Application
of Intent or the Examination Application submitted to the board
[
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on November 13, 2003.
TRD-200307834
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: December 28, 2003
For further information, please call: (512) 305-7848
22 TAC §511.97
The Texas State Board of Public Accountancy (Board) proposes
new §511.97, concerning Examination of Applicant Approved with Accommodation
in Subchapter D, regarding CPA Examination.
New §511.97 lists a dozen types of accommodations that the board may
authorize, establishes procedures and a deadline for applicant's notifying
the board of two possible testing dates and for the board to notify the applicant's
testing center of the accommodations required, clarifies the applicant may
not make additional accommodation requests of the testing center, and requires
the board to absorb the additional costs for the approved accommodations.
This new rule is the result of rule review conducted pursuant to §2001.039
of the Government Code. Government Code §2001.039 requires that each
state agency review and consider for readoption each rule adopted by that
agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure
Act). The Board published a Notice of Intention to Review Texas Administrative
Code, Title 22, Part 22, Chapter 511 in the February 7, 2003, issue of the
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 occur in §511.97 where the board will
absorb the cost of the approved accommodations. The board is unable to estimate
the total cost because it is affected by the number of applicants whose accommodations
are approved, the types of accommodations that are approved, the cost of the
particular approved accommodation, whether the applicant possesses their own
accommodation, and whether any of the testing centers already have any of
the approved accommodations.
B. the estimated reduction in costs to the state and to local governments
as a result of enforcing or administering the new rule will be zero.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the new rule will be zero.
Mr. Treacy has determined that for the first five-year period the new rule
is in effect the public benefits expected as a result of adoption of the proposed
new rule will be that there is a rule explaining accommodations.
The probable economic cost to persons required to comply with the new rule
will be zero.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed new rule will not affect a local economy.
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 Monday, December 29, 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 does not require
small businesses to expend any funds or assets.
The Board specifically invites comments from the public on the issues of
whether or not the proposed new rule will have an adverse economic effect
on small business; if the new rule is believed to have such an effect, then
how may the Board legally and feasibly reduce that effect considering the
purpose of the statute under which the new rule is to be adopted; and if the
new rule is believed to have such an effect, how the cost of compliance for
a small business compares with the cost of compliance for the largest business
affected by the new rule under any of the following standards: (a) cost per
employee; (b) cost for each hour of labor; or (c) cost for each $100 of sales.
See Texas Government Code, §2006.002(c).
The new rule is proposed under the Public Accountancy Act ("Act"),
Texas Occupations Code, §901.151 which authorizes the Board to adopt
rules deemed necessary or advisable to effectuate the Act, §901.301 which
authorizes the board to promulgate rules regarding the manner in which the
examination is conducted and the Americans with Disabilities Act and §2001.039
of the Government Code Chapter 2001 (Administrative Procedure Act) that requires
that each state agency review and consider for readoption each rule adopted
by that agency.
No other article, statute or code is affected by this proposed new rule.
§511.97.Examination of Applicant Approved with Accommodation.
(a)
The board may authorize one or more of the following accommodations
for an applicant for the CPA examination.
(1)
Additional testing time--typically time and a half or double
time.
(2)
Separate room--must be monitored throughout test administration.
(3)
Reader--a board approved individual to read information
verbatim from the screen for examinees, separate room required.
(4)
Amanuensis--a board approved individual to operate mouse
and/or keyboard for examinee, separate room required.
(5)
Sign Language Interpreter--a board approved individual
to sign instructions and serve as interpreter between the test center administrator
and examinee. Sign language interpreters are normally not allowed to accompany
examinees into the testing room.
(6)
Intelikeys keyboard--allows examinee with limited use of
hands to operate the keyboard.
(7)
Intelikeys keyboard with magic arm and super clamp--swivel
arm that allows precise placement of the keyboard.
(8)
Kensington expert mouse--trackball mouse.
(9)
Headmaster plus mouse unit--mouse operated by head movements.
(10)
Selectable background and foreground colors--allows selection
of text and background colors for ease of reading on screen.
(11)
Screen magnifier--attaches to monitor and enlarges the
screen.
(12)
Zoomtext software--screen magnification.
(b)
If the board approves the applicant's request for accommodation,
the board will contact the testing center not less than 30 days prior to the
date that the applicant may test. It is the applicant's responsibility to
advise the board of a primary and secondary date for testing.
(c)
Upon arrival at the testing center the applicant may not
request other accommodations or accommodations in addition to those the board
has authorized.
(d)
There will be no additional fee charged to any candidate
for an accommodation approved by the board under this rule.
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 November 13, 2003.
TRD-200307835
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: December 28, 2003
For further information, please call: (512) 305-7848
22 TAC §§511.102 - 511.107
The Texas State Board of Public Accountancy (Board) proposes
new rules §§511.102, 511.103, 511.104, 511.105, 511.106 and 511.107
concerning CPA Examination Availability; Examination Scheduling; Test Center
Locations; Test Center Check-In; Compliance with Test Center Rules.; and No-Show,
Late Arrival and Late Cancellation in new Subchapter E regarding Vendor Requirements.
New §511.102 identifies the months in 2004 and 2005 during which the
examination will be available on designated days and times.
New §511.103 defines the method and availability; of access by candidates
to schedule the Uniform CPA Examination.
New §511.104 identifies where a list of test center locations may
be obtained by anyone and that the test centers will conform to the standards
of the Americans with Disabilities Act of 1990.
New §511.105 makes the test vendor and the exam candidate aware of
the test center check-in policies.
New §511.106 makes exam candidates aware that they must comply with
test center rules and procedures or face possible future exclusion from examinations.
New §511.107 contains the policy to be applied to candidates that
do not appear at the exam, that arrive late at the exam or that cancel the
examination too near the exam date.
These new rule are the result of rule review conducted pursuant to §2001.039
of the Government Code. Government Code §2001.039 requires that each
state agency review and consider for readoption each rule adopted by that
agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure
Act). The Board published a Notice of Intention to Review Title 22, TAC, Part
22, Chapter 511 in the February 7, 2003 issue of the
Texas Register
(28 TexReg 1234). No comments were received following
publication of the notice.
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.
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.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the new rules will be zero.
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 exam candidates and others will have rules
regarding the computer-based examination.
The probable economic cost to persons required to comply with the new rules
will be zero for all rules except §511.107. The cost associated with §511.107
ranges from $35 for cancellation during a period from 29 days to 5 days before
the exam to the full test fee for cancellation less than 5 days before the
exam. The full test fee ranges from $100.50 to $134.50, depending on the number
of subjects to be covered in the candidate's exam.
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 Monday, December 29, 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 §§511.102,
511.103, 511.104, 511.105 and 511.106 will not have an adverse economic effect
on small businesses because the new rules do not cause the expenditure of
any funds or assets. Mr. Treacy has determined that the proposed new rule §511.107
will not have an adverse economic effect on small businesses because the cost,
in the situations where there is a cost, ranges from a low of $35.00 to a
high of $134.50 and this amount is not large enough to be an adverse amount.
The Board specifically invites comments from the public on the issues of
whether or not the proposed new rules will have an adverse economic effect
on small business; if the new rules are believed to have such an effect, then
how may the Board legally and feasibly reduce that effect considering the
purpose of the statute under which the new rules are to be adopted; and if
the new rules are believed to have such an effect, how the cost of compliance
for a small business compares with the cost of compliance for the largest
business affected by the new rules under any of the following standards: (a)
cost per employee; (b) cost for each hour of labor; or (c) cost for each $100
of sales. See Texas Government Code, §2006.002(c).
The new rules are proposed under the Public Accountancy Act ("Act"),
Tex. Occupations Code, §901.151 which authorizes the Board to adopt rules
deemed necessary or advisable to effectuate the Act, §901.301 which authorizes
the Board to contract with another entity and to promulgate rules regarding
application for the exam and conduct of the exam and §2001.039 of the
Government Code Chapter 2001 (Administrative Procedure Act) that requires
that each state agency review and consider for readoption each rule adopted
by that agency.
No other article, statute or code is affected by this proposed new rules.
§511.102.CPA Examination Availability.
(a)
The examination will be available at test centers on designated
days and at designated times during the months of April, May, July, August,
October and November during 2004.
(b)
Beginning in 2005, the examination will be available at
test centers on designated days and at designated times during the months
of January, February, April, May, July, August, October and November.
§511.103.Examination Scheduling.
(a)
Candidates shall schedule the CPA Examination through a
call center maintained for that purpose, through the internet at a website
maintained for that purpose or at a designated test center. Contact information
for the call centers, websites and test centers is available at the board's
office and through its website.
(b)
A candidate who schedules at least 45 days in advance of
their requested exam session will be offered a seat on a specific date if
requested and at a test center within 60 miles of the requested test center.
If the candidate does not request a specific exam date, the candidate will
be offered the first available exam date at the requested test center or at
a test center within 60 miles of the requested test center.
§511.104.Test Center Locations.
(a)
A list of test center locations is available at the board's
office and on the board's website.
(b)
All test center locations will conform to the standards
established by the Americans with Disabilities Act of 1990.
§511.105.Test Center Check-In.
(a)
A candidate for the CPA examination must present two forms
of identification to the test center administrator at the time of check-in
to take a section of the exam. One form of identification must be a government
issued document, and contain the photograph and signature of the candidate.
The candidate's name on the form of identification must match the record in
the vendor's database of the candidate scheduled to take the exam.
(b)
The candidate is required to have his photograph taken
by the test center administrator during check-in.
(c)
The candidate is permitted to take into the testing room
only items authorized by the board, examined by the test center administrator,
and not in violation of the vendor's security policy and procedures.
§511.106.Compliance with Test Center Rules.
(a)
A candidate who fails to follow reasonable test center
rules and procedures or who fails to operate the test center equipment with
reasonable care may be removed from the test center and excluded from future
examinations for up to five years.
(b)
The board shall be informed of the removal and exclusion
of a candidate.
§511.107.No-Show, Late Arrival and Late Cancellation.
(a)
A candidate is not eligible for a refund of the hourly
testing fee if the candidate:
(1)
fails to appear for a scheduled section of the CPA exam;
(2)
arrives more than 15 minutes after the scheduled start
time for taking the section of the CPA exam and is refused admission to the
exam; or
(3)
changes or cancels a section of the CPA exam after the
applicable Test Cancellation/Change Deadline.
(b)
The candidate may be charged a reasonable fee for a rescheduled
exam or cancellation.
(1)
A candidate that requests a change in scheduling or cancellation
30 or more days prior to the original day of testing will not be charged an
additional fee.
(2)
A candidate that requests a change in scheduling or cancellation
29 to 5 days prior to the original day of testing will be charged an additional
fee of $35.00. The candidate must make direct contact by noon of the fifth
business day before the day of the exam with personnel at the call center
or at a local testing center. Leaving a message on a recorder or a voice mail
is not sufficient to confirm a change or cancellation.
(3)
A candidate that requests a change in scheduling or cancellation
less than 5 days prior to the original day of testing will be charged an additional
fee equal to the amount of the full test fee.
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 November 13, 2003.
TRD-200307836
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: December 28, 2003
For further information, please call: (512) 305-7848
22 TAC §511.123
The Texas State Board of Public Accountancy (Board) proposes
an amendment to §511.123 concerning Reporting Work Experience in Subchapter
F regarding Experience Requirements.
The amendment to §511.123 will identify the full time and part time
work experience requirements and describe the contents of the statement that
is required from the supervising CPA. The amendment is the result of rule
review conducted pursuant to §2001.039 of the Government Code. Government
Code §2001.039 requires that each state agency review and consider for
readoption each rule adopted by that agency pursuant to the Government Code,
Chapter 2001 (Administrative Procedure Act). The Board has reviewed §511.123
and has determined that the reasons for adopting continue to exist, however,
changes were necessary as described in this preamble. The Board published
a Notice of Intention to Review Title 22, TAC, Part 22, Chapter 511 in the
February 7, 2003 issue of the
Texas Register
(28
TexReg 1234). No comments were received following publication of the notice.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the amendment will be zero.
B. the estimated reduction in costs to the state and to local governments
as a result of enforcing or administering the amendment will be zero.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the amendment will be zero.
Mr. Treacy has determined that for the first five-year period the amendment
is in effect the public benefits expected as a result of adoption of the proposed
amendment will be that this rule will be clearer.
The probable economic cost to persons required to comply with the amendment
will be zero.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed amendment will not affect a local economy.
The Board requests comments on the substance and effect of the proposed
amendment from any interested person. Comments must be received at the Board
no later than noon on Monday, December 29, 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 amendment will not have an
adverse economic effect on small businesses because the amendment does not
require the expenditure of any funds or assets.
The Board specifically invites comments from the public on the issues of
whether or not the proposed amendment will have an adverse economic effect
on small business; if the amendment is believed to have such an effect, then
how may the Board legally and feasibly reduce that effect considering the
purpose of the statute under which the amendment is to be adopted; and if
the amendment is believed to have such an effect, how the cost of compliance
for a small business compares with the cost of compliance for the largest
business affected by the amendment under any of the following standards: (a)
cost per employee; (b) cost for each hour of labor; or (c) cost for each $100
of sales. See Texas Government Code, §2006.002(c).
The amendment is proposed under the Public Accountancy Act ("Act"),
Tex. Occupations Code, §901.151 which authorizes the Board to adopt rules
deemed necessary or advisable to effectuate the Act, §901.256 which authorizes
the board to promulgate rules defining work experience and §2001.039
of the Government Code Chapter 2001 (Administrative Procedure Act) that requires
that each state agency review and consider for readoption each rule adopted
by that agency.
No other article, statute or code is affected by this proposed amendment.
§511.123.Reporting Work Experience.
(a)
Work experience must be reported in years and months.
(b)
The board
requires full time work experience of 40
hours per week, but
may consider work experience earned on a part-time
basis, provided at least 20 hours per week are worked.
(c)
All work experience presented to the board for consideration
shall be accompanied by the following items:
(1)
the candidate's detailed job description; [
(2)
a statement from the supervising CPA describing the non-routine
work performed by the candidate and a description of the important accounting
matters requiring the candidate's independent thought and judgment
; and
[
(3)
a statement from the supervising CPA describing
the type of experience that the CPA possesses which qualifies the CPA to supervise
the candidate.
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 November 13, 2003.
TRD-200307837
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: December 28, 2003
For further information, please call: (512) 305-7848
22 TAC §§511.161, 511.165, 511.168, 511.173, 511.176
The Texas State Board of Public Accountancy (Board) proposes
amendments to §511.161 concerning Qualifications for Issuance of a Certificate, §511.165
regarding Certificate, §511.168 concerning Reinstatement of a Certificate
or of a Registration, §511.173 regarding Filing Complaints and §511.176
concerning Certification Hearings in Subchapter H regarding Certification.
The amendment to §511.161 contains minor editorial changes. The amendment
to §511.165 deletes the timing of the issuance of certificates twice
a year to allow the board flexibility to accommodate computer-based testing
which if scheduled to commence in April 2004. The amendment to §511.168
deletes references to complying with continuing professional education requirements
and payment of all fees and penalties, inserts a reference to compliance with §901.405
of the Act and renumbers the remaining subsections. The amendment to §511.173
added criminal convictions involving fraud, moral turpitude, alcohol abuse
and controlled substances to the list of reasons justifying a hearing on a
candidate's eligibility. The amendment to §511.176 made some editorial
changes and added crimes involving alcohol abuse and controlled substances
to the list of crimes that directly relate to the practice of public accountancy.
These amendments are the result of rule review conducted pursuant to §2001.039
of the Government Code. Government Code §2001.039 requires that each
state agency review and consider for readoption each rule adopted by that
agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure
Act). The Board has reviewed §§511.161, 511.165, 511.168, 511.173
and 511.176 and has determined that the reasons for adopting continue to exist,
however, changes were necessary as described in this preamble. The Board published
a Notice of Intention to Review Title 22, TAC, Part 22, Chapter 511 in the
February 7, 2003 issue of the
Texas Register
(28
TexReg 1234). No comments were received following publication of the notice.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed amendments will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the amendments to §§511.161, 511.165, 511.168,
511.173 and 511.176 will be zero.
B. the estimated reduction in costs to the state and to local governments
as a result of enforcing or administering the amendments to §§511.161,
511.165, 511.168, 511.173 and 511.176 will be zero.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the amendments to §§511.161, 511.165,
511.168, 511.173 and 511.176 will be zero.
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 amendment to §511.161 will be that the rule will be easier to
understand, for §511.165 will be that the board has the flexibility to
issue certificates at times it considers appropriate, for §511.168 will
be that the rule will be free of unnecessary language and will be easier to
read, for §511.173 will be that candidates convicted of these types of
crimes will be investigated for eligibility by the board and for §511.176
will be that a statutory citation is correct, the rule is easier to read,
and crimes involving alcohol abuse and controlled substances were added to
the list of crimes that directly relate to the practice of public accountancy.
The probable economic cost to persons required to comply with the amendments
to §§511.161, 511.165, 511.168, 511.173 and 511.176 will be zero
because the amendments do not require anyone to do anything new or additional.
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 Monday, December 29, 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 amendment to §§511.161,
511.165, and 511.168 will not have an adverse economic effect on small businesses
because the amendments do not impact on small business. The amendment to §511.173
will have an economic effect but probably not an adverse economic effect because
there will already have been costs incurred in connection with the conviction
for these crimes. The board's inquiry will cause an incremental cost for photocopying
documents generated by the arrest and conviction, correspondence and possibly
an appearance before a committee of the Board. The amendment to §511.176
will have an economic effect but probably not an adverse economic effect because
there will already have been costs incurred in connection with the conviction
for these crimes. The board's inquiry will cause an incremental cost for photocopying
documents generated by the arrest and conviction, correspondence and possibly
an appearance before a committee of the Board.
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
("Act"), Tex. Occupations Code, §901.151 which authorizes the Board to
adopt rules deemed necessary or advisable to effectuate the Act and §2001.039
of the Government Code Chapter 2001 (Administrative Procedure Act) that requires
that each state agency review and consider for readoption each rule adopted
by that agency.
No other article, statute or code is affected by these proposed amendments.
§511.161.Qualifications for Issuance of a Certificate.
The certificate of a certified public accountant shall be granted by
the board to any individual who qualifies under the current Act and has met
the following qualifications:
(1)
[
(2)
[
(3)
submitted
[
(4)
submitted
[
(5)
provided
[
(6)
submitted
[
(7)
executed
[
(8)
completed
[
(9)
[
(10)
provided
[
§511.165.Certificate.
[
[
§511.168.Reinstatement of a Certificate or of a Registration.
(a)
An individual seeking reinstatement of a certificate as
a certified public accountant or of a registration as a public accountant
(PA) must
comply with §901.405 of the Act and §515.5 of this
title (relating to Reinstatement of a License).
[
[
(b)
[
(1)
The primary state of certification is a state other than
Texas. Certification in Texas was obtained by reciprocity or under §901.355
of the Act (relating to Registration for Certain Out-of-State or Foreign Applicants).
(2)
No certificate or registration held by an individual was
revoked either voluntarily or involuntarily as a result of a disciplinary
investigation or proceeding, except for nonpayment of license fees while the
individual was a nonresident of Texas.
(3)
The individual presents to the board satisfactory documentation
of the status of certificate and residency and practice requirements stated
in this subsection.
(4)
The individual pays the current year's fees and provides
the board satisfactory evidence of successful completion of 120 hours of continuing
professional education in technical courses obtained within the three-year
period of the application for reinstatement.
§511.173.Filing Complaints.
The board may, on its own motion, or on the complaint of any person,
initiate proceedings to determine the eligibility of any candidate for the
issuance of a certificate. Chapter 519 of this title (relating to Practice
and Procedure) provides for the notice and hearing. Sufficient cause for this
action includes, but is not limited to, any of the following instances:
(1)
fraud or deceit by a candidate on the certification application;
(2)
final conviction of a felony or of any crime,
involving
[
(3)
conduct indicating a lack of fitness to serve the public
as a professional accountant.
§511.176.Certification Hearings.
Unless otherwise determined by the board, the following are reasons
why a person is not authorized to be certified as a CPA.
(1)
The individual has been convicted of a felony offense,
which results in incarceration, probation, parole, mandatory supervision or
deferred adjudication.
(2)
The individual has been convicted of a felony or misdemeanor
offense, or granted a deferred adjudication which directly relates to the
practice of public accountancy.
(3)
A person applying for the issuance of a certificate who
can be identified in paragraphs (1) or (2) of this section has the right to
a hearing before the board to present evidence relative to the conviction.
As a part of the hearing, the board shall consider the following issues before
reaching a verdict:
(A)
the nature and seriousness of the crime;
(B)
the relationship of the crime to the board's statutory
responsibility to ensure that a person, at some point in the future, professing
to practice public accountancy, maintains high standards of competence and
integrity in light of the reliance of the public, and the business community
in particular, on the report or other services provided by accountants;
(C)
the extent to which the person might have an opportunity
to engage in future criminal activity of the same type as that in which the
individual was previously involved;
(D)
the relationship of the crime to the ability, capacity,
or fitness required to perform the duties and discharge the responsibilities
of a certified public accountant, once the person passes the examination and
is licensed by the board;
and
(E)
the additional factors provided in section 53.023
of the Texas Occupations Code.
[
(4)
Because
a licensee
[
(A)
any felony
offense
or misdemeanor
offense
of which
dishonesty or
fraud [
(B)
any felony
offense
or misdemeanor
offense
which results in the suspension or revocation of the right to practice
before any state or federal agency for a cause which in the opinion of the
board warrants its action; and
(C)
any crime involving moral turpitude
, alcohol abuse
or controlled substances
.
(5)
The following procedures shall apply in the processing
of the application for certification.
(A)
The candidate shall respond, under penalty of perjury,
to the question, "Have you ever been convicted of a felony or a misdemeanor,
placed on probation, or granted deferred adjudication in any state or by the
federal government?"
(B)
The board shall obtain criminal history record information
as stipulated in this chapter on any candidate about whom the executive director
finds evidence to warrant a record search.
(C)
The board shall review the application, statements made
by the candidate relating to criminal activity, criminal history record information,
and shall approve or disapprove the application as the evidence warrants.
All applications disapproved under these conditions shall be scheduled for
a hearing upon written request of the applicant.
This agency hereby certifies that the proposal
has been reviewed by legal counsel and found to be within the agency's legal
authority to adopt.
Filed with the Office of
the Secretary of State on November 13, 2003.
TRD-200307838
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: December 28, 2003
For further information, please call: (512) 305-7848
22 TAC §511.171
(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 §511.171 concerning Consent Revocation.
The proposed repeal of §511.171 will repeal a rule that allowed certificate
holders to voluntary surrender their certificates but required reexamination
for reinstatement of their certificate. This repeal is the result of rule
review conducted pursuant to §2001.039 of the Government Code. Government
Code §2001.039 requires that each state agency review and consider for
readoption each rule adopted by that agency pursuant to the Government Code,
Chapter 2001 (Administrative Procedure Act). The Board published a Notice
of Intention to Review Title 22, TAC, Part 22, Chapter 511 in the February
7, 2003 issue of the
Texas Register
(28 TexReg
1234). No comments were received following publication of the notice.
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 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 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 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 repealed and replaced with another rule
that does not require reexamination for reinstatement of certificate.
The probable economic cost to persons required to comply with the repeal
will be zero because the repeal does not require anyone to 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 Monday, December 29, 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 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 ("Act"),
Tex. Occupations Code, §901.151 which provides the agency with the authority
to amend, adopt and repeal rules deemed necessary or advisable to effectuate
the Act and §2001.039 of the Government Code Chapter 2001 (Administrative
Procedure Act) that requires that each state agency review and consider for
readoption each rule adopted by that agency.
No other article, statute or code is affected by this proposed repeal.
§511.171.Consent Revocation.
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 November 13, 2003.
TRD-200307839
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: December 28, 2003
For further information, please call: (512) 305-7848
22 TAC §§511.171
The Texas State Board of Public Accountancy (Board) proposes
new rule §511.171 concerning Voluntary Surrender of Certificate.
The new rule §511.171 will allow certificate holders who are not under
investigation by the Board to voluntarily surrender their certificates and
avoid annual CPE reporting requirements until and unless they want their certificates
reinstated. The rule allows reinstatement of certificate without re-application
and re-examination if certain requirements are satisfied. This new rule is
the result of rule review conducted pursuant to §2001.039 of the Government
Code. Government Code §2001.039 requires that each state agency review
and consider for readoption each rule adopted by that agency pursuant to the
Government Code, Chapter 2001 (Administrative Procedure Act). The Board published
a Notice of Intention to Review Title 22, TAC, Part 22, Chapter 511 in the
February 7, 2003 issue of the
Texas Register
(28
TexReg 1234). No comments were received following publication of the notice.
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 merely replaces
an old rule that was based on a different section of the Act.
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 merely replaces an old rule that was based on a different section
of the Act.
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
merely replaces an old rule that was based on a different section of the Act.
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 this rule will allow CPAs to voluntary revoke their
certificates with the possibility of having their certificate reinstated without
retaking the examination.
The probable economic cost to persons required to comply with the new rule
will be zero because the new rule merely replaces an old rule that was based
on a different section of the Act.
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 Monday, December 29, 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 merely replaces an
old rule that was based on a different section of the Act.
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 ("Act"),
Tex. Occupations Code, §901.151 which authorizes the Board to adopt rules
deemed necessary or advisable to effectuate the Act and §2001.039 of
the Government Code Chapter 2001 (Administrative Procedure Act) that requires
that each state agency review and consider for readoption each rule adopted
by that agency.
No other article, statute or code is affected by this proposed new rule.
§511.171.Voluntary Surrender of Certificate.
(a)
A certificate holder who is not under investigation by
the board may voluntarily surrender his certificate by delivering the certificate
to the board along with a written statement of intent to voluntarily surrender
the certificate. Once a certificate holder has surrendered his certificate,
he is no longer eligible to hold a license under §901.402 of the Act
and licensing exemptions will no longer apply.
(b)
A former certificate holder who has voluntarily surrendered
his certificate under subsection (a) of this section may apply for a new certificate
upon completion of the examination requirement for a new certificate. The
board may waive the examination requirement for a former certificate holder
upon submission of the following to the board:
(1)
a completed application in the form provided by the board,
together with an application fee that is equal to the examination fee set
by the board;
(2)
evidence of completion of all CPE that would have been
required to be completed up to a maximum of 200 hours over the five years
immediately preceding application;
(3)
a sworn affidavit in the form provided by the board stating
that the former certificate holder has not been convicted of, placed on community
supervision or accepted deferred adjudication for any felony crime or for
any misdemeanor crime involving fraud, dishonesty or moral turpitude under
the laws of any state or the United States and that the former certificate
holder did not surrender the certificate to avoid disciplinary action by the
board or to avoid administrative revocation under board rules adopted pursuant
to §§901.159, 901.411 or 901.502 of the Act; and
(4)
payment of all license fees that would have been paid if
the former certificate holder's license had been active since the date of
surrender and all applicable late fees.
(c)
A new certificate issued to a former certificate holder
will bear the same certificate number as the original certificate.
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 November 13, 2003.
TRD-200307840
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: December 28, 2003
For further information, please call: (512) 305-7848
22 TAC §§515.1 - 515.4, 515.9
The Texas State Board of Public Accountancy (Board) proposes
amendments to §§515.1, 515.2, 515.3, 515.4 and 515.9 concerning
License; Initial License; License Renewal for Individuals and Firm Offices;
License Cancellation; and Collection of License Fees Following Disciplinary
Action.
The amendment to §515.1 and §515.2 replaces "practice unit" with
"office". The amendment to §515.3 replaces "Practice Units" with "Firm
Offices", replaces "practice unit’s" with "firm’s office license",
replaces "practice unit’s" with "firm’s office" in three locations,
and replaces "quality review" with "peer review" in two locations. The amendment
to §515.4 replaces "practice units’" with "firm office’s"
and "practice unit’s" with "office". The amendment to §515.9 deletes
the term "temporary permit" in several places because temporary practice is
now addressed in another section. These amendments are the result of rule
review conducted pursuant to §2001.039 of the Government Code. Government
Code §2001.039 requires that each state agency review and consider for
readoption each rule adopted by that agency pursuant to the Government Code,
Chapter 2001 (Administrative Procedure Act). The Board has reviewed §§515.1,
515.2, 515.3, 515.4 and 515.9 and has determined that the reasons for adopting
continue to exist, however, changes were necessary as described in this preamble.
The Board published a Notice of Intention to Review Title 22, TAC, Part 22,
Chapter 515 in the February 7, 2003 issue of the
Texas Register
(28 TexReg 1234). No comments were received following
publication of the notice.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed amendments 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 none of the amendments
are substantive and do not require anyone to do anything additional.
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
none of the amendments are substantive and do not require anyone to do anything
additional.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the amendments will be zero because none of the
amendments are substantive and do not require anyone to do anything additional.
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 that the rules are clearer and easier to read.
The probable economic cost to persons required to comply with the amendments
will be zero because none of the amendments are substantive and do not require
anyone to do anything additional.
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 Monday, December 29, 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 none of the amendments
are substantive and do not require anyone to do anything additional.
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
("Act"), Tex. Occupations Code, §901.151 which authorizes the Board to
adopt rules deemed necessary or advisable to effectuate the Act and §2001.039
of the Government Code Chapter 2001 (Administrative Procedure Act) that requires
that each state agency review and consider for readoption each rule adopted
by that agency.
No other article, statute or code is affected by these proposed amendments.
§515.1.License.
(a)
Individuals certified or registered by this board must
obtain a license for each 12-month interval.
(b)
Firms registered with this board must obtain an annual
license for each
office
[
(c)
A license shall not be issued or renewed unless all required
fees, continuing professional education and a completed application have been
received by the board.
§515.2.Initial License.
(a)
An initial license is the first license issued to an individual
who has been certified or registered under the Act. The board will prorate
the initial license fee for an individual who is licensed for less than a
full year.
(b)
The board will not prorate the initial license fee for
a firm's
office
[
§515.3.License Renewal for Individuals and Firm Offices [
(a)
Licenses for individuals will have staggered expiration
dates based on the last day of the individuals' birth months. The license
will be issued for a 12-month period.
(b)
At least 30 days before the expiration of an individual's
license, the board shall send written notice of the impending license expiration
to the individual at the last known address according to board records.
(c)
The expiration date of a
firm's office
[
(d)
At least 30 days before the expiration of a
firm's
office
[
(e)
A
firm's office
[
(f)
If a firm is subject to
peer
[
§515.4.License Cancellation.
Failure to submit to the board a completed renewal notice, the renewal
fee and any other required documents before the license expiration date will
result in the cancellation of the individual's or the
firm office's
[
§515.9.Collection of License Fees Following Disciplinary Action.
(a)
A certificate
or
[
(b)
The board will not refund any fees paid for the license
year in which the suspension or revocation occurs.
(c)
If the certificate, license,
or
registration
[
(d)
It is the responsibility of the certificate, license,
or
registration [
(e)
Continuing professional education requirements are addressed
in Chapter 523 of this title (relating to Continuing Professional Education).
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 November 13, 2003.
TRD-200307841
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: December 28, 2003
For further information, please call: (512) 305-7848
22 TAC §515.5
(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 §515.5 concerning Reinstatement of a License.
The proposed repeal of §515.5 will repeal a rule that is being substantially
re-written. This repeal is the result of rule review conducted pursuant to §2001.039
of the Government Code. Government Code §2001.039 requires that each
state agency review and consider for readoption each rule adopted by that
agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure
Act). The Board published a Notice of Intention to Review Title 22, TAC, Part
22, Chapter 515 in the February 7, 2003 issue of the
Texas Register
(28 TexReg 1234). No comments were received following
publication of the notice.
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 proposed repeal does
not require anyone to 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 repeal will be zero because
the proposed repeal does not require anyone to do anything new or additional.
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 proposed repeal
does not require anyone to 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
repeal will be that this repealed rule has been rewritten and improved in
a new rule.
The probable economic cost to persons required to comply with the repeal
will be zero because the proposed repeal does not require anyone to do anything
new or additional.
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 Monday, December 29, 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 proposed repeal does not require
small businesses to do anything new or additional.
The Board specifically invites comments from the public on the issues of
whether or not the proposed repeal will have an adverse economic effect on
small business; if the repeal is believed to have such an effect, then how
may the Board legally and feasibly reduce that effect considering the purpose
of the statute under which the repeal is to be adopted; and if the repeal
is believed to have such an effect, how the cost of compliance for a small
business compares with the cost of compliance for the largest business affected
by the repeal under any of the following standards: (a) cost per employee;
(b) cost for each hour of labor; or (c) cost for each $100 of sales. See Texas
Government Code, §2006.002(c).
The repeal is proposed under the Public Accountancy Act ("Act"),
Tex. Occupations Code, §901.151 which provides the agency with the authority
to amend, adopt and repeal rules deemed necessary or advisable to effectuate
the Act, §901.405 of the Act which changes the renewal fees and §2001.039
of the Government Code Chapter 2001 (Administrative Procedure Act) that requires
that each state agency review and consider for readoption each rule adopted
by that agency.
No other article, statute or code is affected by this proposed repeal.
§515.5.Reinstatement of a License.
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 November 13, 2003.
TRD-200307842
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: December 28, 2003
For further information, please call: (512) 305-7848
22 TAC §515.5
The Texas State Board of Public Accountancy (Board) proposes
new rule §515.5 concerning Reinstatement of a License.
The new rule §515.5 will rewrite this rule to comply with recently
amended §901.405 of the Act. The Act and the new rule create different
license renewal fees for licenses that have been expired 90 days or less,
expired for more than 90 days but less than one year, for licenses expired
more than one year but less than two years, for licenses expired more than
two years, and for expired licenses of persons who have been residing and
practicing in another state for two years. This new rule is the result of
rule review conducted pursuant to §2001.039 of the Government Code. Government
Code §2001.039 requires that each state agency review and consider for
readoption each rule adopted by that agency pursuant to the Government Code,
Chapter 2001 (Administrative Procedure Act). The Board published a Notice
of Intention to Review Title 22, TAC, Part 22, Chapter 515 in the February
7, 2003 issue of the
Texas Register
(28 TexReg
1234). No comments were received following publication of the notice.
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 was already enforcing
a rule regarding a charge for reinstatement of license and, while the new
rule replaces the old rule and changes the fee mounts, it does not alter the
board’s enforcement of a license reinstatement fee.
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 board was already enforcing a rule regarding a charge for reinstatement
of license and, while the new rule replaces the old rule and changes the fee
amounts, it does not alter the board’s enforcement of a license reinstatement
fee.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the new rule is difficult to estimate because the
board has no control over many variables, such as licensees electing to allow
their annual licenses to lapse, whether to renew their licenses, when to renew
their licenses, and whether and when to return to Texas.
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 rule will comply with recently amended §901.405
of the Act regarding license reinstatement fees.
The probable economic cost to persons required to comply with the new rule
is as stated in the rule. For persons whose licenses have been expired 90
days or less, the cost is 11/2 times the normal license renewal fee. For persons
whose licenses have been expired more than 90 days but less than one year
and for persons who have been residing and practicing in another state for
two years, the cost is twice the normal license renewal fee. For persons whose
license has been expired more than one year but less than two years, the cost
is three times the normal license renewal fee. Persons whose licenses have
been expired more than two years may not renew their licenses and must apply
for recertification.
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 Monday, December 29, 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 board was already enforcing
a rule regarding a charge for reinstatement of license and, while the new
rule replaces the old rule and changes the fee amounts, it does not alter
the board’s enforcement of a license reinstatement fee, because the
benefit of possessing a license to practice accountancy in Texas far outweighs
the license renewal fee, and because the license renewal fee is not an adverse
amount.
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 ("Act"),
Tex. Occupations Code, §901.151 which authorizes the Board to adopt rules
deemed necessary or advisable to effectuate the Act, §901.405 of the
Act which amends the license renewal fees and §2001.039 of the Government
Code Chapter 2001 (Administrative Procedure Act) that requires that each state
agency review and consider for readoption each rule adopted by that agency.
No other article, statute or code is affected by this proposed new rule.
§515.5.Reinstatement of a License.
(a)
A person whose license has been expired for 90 days or
less may renew the license by paying to the board a renewal fee that is equal
to 1½ times the normally required renewal fee.
(b)
A person whose license has been expired for more than 90
days but less than one year may renew the license by paying to the board a
renewal fee that is equal to two times the normally required renewal fee.
(c)
A person whose license has been expired for at least one
year but less than two years may renew the license by paying to the board
a renewal fee that is equal to three times the normally required renewal fee.
(d)
A person whose license has been expired for two years or
more may not renew the license. The person may obtain a new license by complying
with the requirements and procedures, including the examination requirements,
for obtaining an original license.
(e)
A person who was licensed in this state, moved to another
state, and is currently licensed and has been in practice in the other state
for the two years preceding the date of application may obtain a new license
without reexamination. The person must pay to the board a fee that is equal
to two times the normally required renewal fee for the license.
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 November 13, 2003.
TRD-200307843
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: December 28, 2003
For further information, please call: (512) 305-7848
22 TAC §519.16
The Texas State Board of Public Accountancy (Board) proposes
new rule §519.16 concerning Misdemeanors that Subject a Certificate or
Registration Holder to Discipline by the Board.
The new rule §519.16 will implement §901.1565 of the Act by listing
all misdemeanors that may subject a certificate or registration holder to
discipline by the Board.
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 negligible because the Board already
disciplines certificate or registration holders for criminal convictions related
to the accounting profession.
B. the estimated reduction in costs to the state and to local governments
as a result of enforcing or administering the new rule will be none.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the new rule will be none.
Mr. Treacy has determined that for the first five-year period the new rule
is in effect the public benefits expected as a result of adoption of the proposed
new rule will be education of certificate or registration holders and the
public regarding criminal conduct that subjects certificate or registration
holders to discipline by the Board.
The probable economic cost to persons required to comply with the new rule
will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the proposed new rule will not affect a local economy.
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 Monday, December 29, 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 Board already disciplines
certificate or registration holders for criminal convictions related to the
accounting profession.
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 ("Act"),
Tex. Occupations Code, §901.151 which authorizes the Board to adopt rules
deemed necessary or advisable to effectuate the Act and under HB 1218.
No other article, statute or code is affected by this proposed new rule.
§519.16.Misdemeanors that Subject a Certificate or Registration Holder to Discipline by the Board.
(a)
Because a licensee is often placed in a position of trust
with respect to client funds, and the public in general, and the business
community in particular, rely on the veracity, integrity and honesty of licensees
in the preparation of reports and provision of other accounting services,
the board considers conviction or placement on deferred adjudication or community
supervision for any crime involving dishonesty or fraud to relate directly
to the practice of public accountancy and may subject the licensee to discipline
by the board. The board has determined that misdemeanor offenses that involve
dishonesty or fraud directly relate to the practice of accounting pursuant
to Sections 53.021, 53.022, 53.023 and 53.025 of the Occupations Code. The
following non-exclusive list of misdemeanor offenses may involve dishonesty
or fraud:
(1)
Theft;
(2)
Theft of Service;
(3)
Tampering with Identification Numbers;
(4)
Theft of or Tampering with Multichannel Video or Information
Services;
(5)
Manufacture, Distribution, or Advertisement of Multichannel
Video or Information Services Device;
(6)
Sale or Lease of Multichannel Video or Information Services
Device;
(7)
Possession, Manufacture, or Distribution of Certain Instruments
Used to Commit Retail Theft;
(8)
Forgery;
(9)
Criminal Simulation;
(10)
Trademark Counterfeiting;
(11)
Stealing or Receiving Stolen Check or Similar Sight Order;
(12)
False Statement to Obtain Property or Credit;
(13)
Hindering Secured Creditors;
(14)
Credit Card Transaction Record Laundering;
(15)
Issuance of Bad Check;
(16)
Deceptive Business Practices;
(17)
Rigging Publicly Exhibited Contest;
(18)
Misapplication of Fiduciary Property or Property of Financial
Institution;
(19)
Securing Execution of Document by Deception;
(20)
Fraudulent Destruction, Removal, or Concealment of Writing;
(21)
Simulating Legal Process;
(22)
Refusal to Execute Release of Fraudulent Lien or Claim;
(23)
Breach of Computer Security;
(24)
Unauthorized Use of Telecommunications Service;
(25)
Theft of Telecommunications Service;
(26)
Publication of Telecommunications Access Device;
(27)
Insurance Fraud;
(28)
False Alarm or Report;
(29)
Engaging in Organized Criminal Activity;
(30)
Violation of Court Order Enjoining Organized Criminal
Activity;
(31)
Unlawful Use of Criminal Instrument;
(32)
Unlawful Access to Stored Communications;
(33)
Burglary of Vehicles;
(34)
Burglary of Coin-Operated or Coin Collection Machines;
(35)
Coercion of Public Servant or Voter;
(36)
Improper Influence;
(37)
Gift to Public Servant by Person Subject to His Jurisdiction;
(38)
Offering Gift to Public Servant;
(39)
Perjury;
(40)
False Report to Peace Officer or Law Enforcement Employee;
(41)
Tampering With or Fabricating Physical Evidence;
(42)
Tampering With Governmental Record;
(43)
Fraudulent Filing of Financing Statement;
(44)
False Identification as Peace Officer;
(45)
Misrepresentation of Property;
(46)
Record of a Fraudulent Court; and
(47)
Bail Jumping and Failure to Appear.
(b)
Because a licensee is often placed in a position of trust
with respect to client funds, and the public in general, and the business
community in particular, rely on the veracity, integrity and honesty of licensees
in the preparation of reports and provision of other accounting services,
the board considers conviction or placement on deferred adjudication or community
supervision for any crime involving moral turpitude to relate directly to
the practice of public accountancy and may subject the licensee to discipline
by the board. The board has determined that misdemeanor offenses that involve
moral turpitude directly relate to the practice of accounting pursuant to
Sections 53.021, 53.022, 53.023 and 53.025 of the Occupations Code. The following
non-exclusive list of misdemeanors offenses may involve moral turpitude:
(1)
Prostitution;
(2)
Promotion of Prostitution;
(3)
Indecent Exposure;
(4)
Public Lewdness;
(5)
Obscenity;
(6)
Obscene Display or Distribution;
(7)
Sale, Distribution, or Display of Harmful Material to Minor;
(8)
Employment Harmful to Children; and
(9)
Abuse of a Corpse.
(c)
Because a licensee is often placed in a position of trust
with respect to client funds, and the public in general, and the business
community in particular, rely on the veracity, integrity and honesty of licensees
in the preparation of reports and provision of other accounting services,
the board considers conviction or placement on deferred adjudication or community
supervision for any crime involving alcohol abuse or controlled substances
to relate directly to the practice of public accountancy and may subject a
licensee to discipline by the board. The board has determined that misdemeanor
offenses that involve alcohol abuse or controlled substances directly relate
to the practice of accounting pursuant to Sections 53.021, 53.022, 53.023
and 53.025 of the Occupations Code. The following non-exclusive list of misdemeanors
offenses may involve alcohol abuse or controlled substances:
(1)
Possession of less than 28 grams of a controlled substance
listed in penalty group 3 under the Texas Penal Code;
(2)
Possession of less than 28 grams of a controlled substance
listed in penalty group 4 under the Texas Penal Code;
(3)
Manufacture, delivery or possession of a controlled substance
listed in a schedule of controlled substances, but not listed in a penalty
group under the Texas Penal Code;
(4)
Manufacture, delivery or possession of a controlled substance
analogue;
(5)
Possession or delivery of marihuana;
(6)
Possession or delivery of drug paraphernalia;
(7)
Possession or transport of chemicals with the intent to
manufacture a controlled substance; and
(8)
Any misdemeanor involving intoxication under the influence
of alcohol or a controlled substance.
(d)
Because an licensee is often placed in a position of trust
with respect to client funds, and the public in general, and the business
community in particular, rely on the veracity, integrity and honesty of licensees
in the preparation of reports and provision of other accounting services,
the board considers repeated violations of any criminal law to relate directly
to the practice of public accountancy.
(e)
A conviction or placement on deferred adjudication or community
supervision for a violation of any state or federal law that is equivalent
to an offense listed in subsections (a) through (d) of this section is considered
to directly relate to the practice of accounting and may subject a licensee
to discipline by the board.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on November 13, 2003.
TRD-200307844
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: December 28, 2003
For further information, please call: (512) 305-7848
22 TAC §519.17
The Texas State Board of Public Accountancy (Board) proposes
new rule §519.17 concerning Administrative Penalty Guidelines.
The new rule §519.17 will implement §901.522(c) of the Act by
providing administrative penalty guidelines.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed new rule will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the new rule will be none because the guidelines reflect
current Board policy.
B. the estimated reduction in costs to the state and to local governments
as a result of enforcing or administering the new rule will be none because
the guidelines reflect current Board policy.
C. the estimated loss or increase in revenue to the state as a result of
enforcing or administering the new rule will be none because the guidelines
reflect current Board policy.
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 education of certificate or registration holders and the
public regarding imposition of administrative penalties against certificate
or registration holders by the Board.
The probable economic cost to persons required to comply with the new rule
will be none because the guidelines reflect current Board policy.
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 Monday, December 29, 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 guidelines reflect current
Board policy.
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 ("Act"),
Tex. Occupations Code, §901.151 which authorizes the Board to adopt rules
deemed necessary or advisable to effectuate the Act and under HB1218.
No other article, statute or code is affected by this proposed new rule.
§519.17.Administrative Penalty Guidelines.
(a)
The following table contains guidelines for the assessment
of administrative penalties in disciplinary matters. In determining whether
a violation is minor, moderate or major, the board will apply the factors
to be considered set forth in §901.552(b) of the Public Accountancy Act.
In all cases where the board has determined a violation has occurred, administrative
costs will be assessed, regardless of any other sanction imposed by the board.
(b)
The amounts specified in subsection (a) of this section
are guidelines only. The board retains the right to increase or decrease the
amount of an administrative penalty based on the circumstances of each case
it considers.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on November 13, 2003.
TRD-200307845
Rande Herrell
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: December 28, 2003
For further information, please call: (512) 305-7848
Texas Civil Statutes Articles 4543-
4551j, as amended
], shall not apply to the following:
(1)
Members of the faculty of
a reputable dental or dental hygiene college or school who are not licensed
to practice dentistry in Texas where such faculty members perform their services
for the sole benefit of such school or college.]
(2)
] Students of a reputable dental
college or school who are candidates for a degree and who perform their operations
without pay except for actual costs of materials, in the presence of an under
the direct personal supervision of a demonstrator or teacher who is a member
of the faculty of a reputable dental college or school approved by the State
Board of Dental Examiners, or for an on behalf of and in a school, hospital,
state institution, public health clinic, or other facility approved for student
dental services by the State Board of Dental Examiners.
(3)
] Students of a reputable dental
hygiene college or school who are candidates for a degree who practice dental
hygiene without pay in strict conformity with the laws of this state regulating
the practice of dental hygiene under the direct personal supervision of a
demonstrator or teacher who is a member of the faculty of a reputable dental
hygiene college or school approved by the State Board of Dental Examiners,
or for and on behalf of and in a school, hospital, state institution, public
health clinic, or other facility approved for student dental hygiene services
by the State Board of Dental Examiners.
(4)
] Dental interns who pursue advanced
education in dentistry under the auspices of an institution, such as a dental
school or hospital, which offers the type of advanced program designed to
meet accreditation requirements as established by the Commission on Dental
Accreditation of the American Dental Association. Dental interns may perform
any clinical service included in the program of advanced education for which
he/she is enrolled, as long as such service is accomplished under the auspices
of the sponsoring institution, and as authorized by the program supervisor.
A dental intern not licensed in Texas may not assess fees for clinical services
rendered. An unlicensed dental intern may not engage in private practice.
(5)
] Dental residents who pursue
advanced education in dentistry under the auspices of an institution, such
as a dental school or hospital, which offers the type of advanced program
designed to meet accreditation requirements as established by the Commission
of Dental Accreditation of the American Dental Association. The residency
program usually follows an internship and the objective customarily is to
prepare specialists in selected field of clinical dentistry. Dental residents
may perform any clinical service included in the program of advanced education
for which he/she is enrolled, as long as such service is accomplished under
the auspices of the sponsoring institution, and as authorized by the program
supervisor. A dental resident not licensed in Texas may not asses fees for
clinical services rendered. An unlicensed dental resident may not engage in
private practice.
(b)
Members of the faculty of
a reputable dental college or school who perform their services for the sole
benefit of such school or college shall be entitled to apply for and to receive
a non-renewable identification number issued by the SBDE to be used solely
for the purpose of applying for a Controlled Substances narcotics registration
from the Texas Department of Public Safety and the Drug Enforcement Administration
to prescribe, administer, or dispense controlled substances.]
(c)
] Dental interns and residents
shall be entitled to apply for and to receive an identification number issued
by the SBDE to be used solely for the purpose of applying for a Controlled
Substances narcotics registration from the Texas Department of Public Safety
and the Drug Enforcement Administration to prescribe, administer, or dispense
controlled substances.
(d)
The SBDE will void each identification
number issued to faculty members two years after the date of issuance. Identification
numbers issued to interns and residents will be voided upon termination of
the internship or residency as applicable.]
(e)
] The SBDE will notify the Texas
Department of Public Safety and the Drug Enforcement Administration when an
identification number is issued and when an identification number is voided.
(f)
]Each application for an SBDE identification
number shall be accompanied by a fee in an amount set by the Board.
Part 22.
TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY
, where applicable,
] generally accepted
accounting principles and generally accepted auditing standards, promoting
sound and informative financial reporting, holding the affairs of clients
in confidence, upholding the standards of the public accountancy profession,
and maintaining high standards of personal and professional conduct in all
matters.
for the public
] in the practice
of public accountancy, including services relating to
:
, to mention only the broad areas in which services are currently being offered
by those in the practice of public accountancy. A licensee who is engaged
in the practice of public accountancy outside the United States may conduct
that practice in accordance with the standards of professional conduct applicable
to the country in which he is practicing.
]
view of
] the profession.
Subchapter C. RESPONSIBILITIES TO CLIENTS
in court proceedings,
] pursuant to a subpoena or other
compulsory process, in investigations or proceedings under the Act, in ethical
investigations conducted by private professional organizations, or in the
course of
peer
[
quality
] reviews.
four
] years from the date of any report issued in connection
with the attest service
, unless otherwise required by another regulatory
body
. Failure to maintain such documentation or working papers
constitutes a violation of this section and
may be deemed an admission
that they do not comply with professional standards.
Subchapter D. RESPONSIBILITIES TO THE PUBLIC
III
], Suite 900, Austin, Texas 78701-3900, telephone (512) 305-7800, email
to enforcement@tsbpa.state.tx.us, or fax (512) 305-7854.
Subchapter E. RESPONSIBILITIES TO THE BOARD/PROFESSION
in a court proceeding
];
or any crime of which fraud or dishonesty
is an element
];
any
] crime
of moral turpitude;
[
related to the qualifications, functions, or duties of a public
accountant or certified public accountant, or to acts or activities in the
course and scope of the practice of public accountancy or as a fiduciary.
]
Chapter 511.
CERTIFICATION AS A CPA
writes
] the
Uniform CPA Examination within two years from the date of submission of the
application; or
certified copy
] of a document from either paragraph (1) or (2) of this
subsection.
Alien Registration Receipt Card With photograph (INS Form I-151 or I-551)
];
Voter's registration card
];
Native American tribal document; or
]
Subchapter C. EDUCATIONAL REQUIREMENTS
an associate,
] baccalaureate[
,
] or higher degree, and which
are recognized by one of the following accrediting associations:
with 20 semester hours or quarter-hour
equivalents of accounting core courses, as defined by board rule
]; and
Subchapter D. CPA EXAMINATION
(d)
] of this rule.
representatives of the board
] at any examination location.
one or more examinees
] and any person, other than a proctor or exam
administrator while the examination is in progress
;
[
.
]
one or more examinees
] and any person at any time concerning the content
of the examination including, but not limited to, any exam question or answer,
unless the examination has been publicly released by the preparer of the examination
;
[
except for communication with a proctor or exam administrator
while the examination is in progress.
]
.
]
site
] of any device, material, or document that is not expressly authorized
for use by examinees during the examination including but not limited to,
notes, crib sheets, books, and electronic devices
; or
[
.
]
administer or may
] contract
with
the National Association of State Boards of Accountancy
[
a testing vendor
] for the administration of the examination
, in
conjunction with the American Institute of Certified Public Accountants and
a test vendor,
for a certificate as a certified public accountant
within the board's jurisdiction
. The examination may be offered at the
board's office and at testing facilities within the state that are approved
and monitored by the board or its designee. The examination shall be offered
during scheduled months as determined by the American Institute of Certified
Public Accountants, the National Association of State Boards of Accountancy,
and the testing vendor.
.
]
The
] candidate sat for all subjects
for which the candidate was eligible
;
[
on examinations taken
after September 1, 1991.
]
The
] candidate earned a grade
of 75 or higher on any two subjects of the examination
;
[
.
]
The
] candidate scored a minimum
grade of 50 on each subject not passed
;
[
on the examinations
taken after September 1, 1991.
]
(b)
] If the board accepts transfers
of credit [
for two or more subjects
], it will also accept transfers
of credit for subjects passed at subsequent examinations.
(c)
] The grades made by the candidate
on subjects under consideration must be the ones reported to the
licensing
authority of another jurisdiction
[
examining board
] by the
American Institute of Certified Public Accountants
through the National
Association of State Boards of Accountancy
.
(b)
] Any candidate who has earned
the right to partial reexamination and who fails to pass the remaining subjects
of the examination within the applicable time limits shall lose the right
to partial reexamination and must take the entire examination upon later application.
conditioning
] credit
under this Act or a prior Act and who has
two
[
three
]
examinations remaining before the
expiration
[
forfeiture
]
of credits earned shall be notified prior to each examination of these facts.
been forfeited
], and this action shall be ratified
by the board.
forfeiture
] of credits
shall not hinder an examination candidate from reapplying for the examination.
Examination Applicants Requesting ] Accommodations for Disabilities.
All examination facilities will be physically accessible
to disabled applicants.
] The Board recognizes its responsibility to
accommodate the identified needs of qualified individuals with disabilities
by making reasonable modifications and/or providing auxiliary aids. This does
not mean that all requests for accommodation, and/or auxiliary aids will be
granted, or that the applicant will receive the particular accommodations
or services sought
at every testing center
. The Board is not required
to grant the request if doing so would fundamentally alter the measurement
of the skills or knowledge the examination is intended to test, or would create
an undue financial or administrative burden.
Application for ] Accommodations for Disabilities.
by the application deadline established for all applicants
]. This information
shall be kept confidential to the extent provided by law. The board will evaluate
each request individually, in accordance with the guidelines set forth herein,
to provide an appropriate and effective accommodation. All requests to the
board for accommodation shall be submitted on the prescribed form.
Subchapter E. VENDOR REQUIREMENTS
Subchapter F. EXPERIENCE REQUIREMENTS
and
]
.
]
Subchapter H. CERTIFICATION
must have
] successfully completed the Uniform
CPA Examination;
must have
] met the education requirements;
must submit
] an application
prescribed by the board;
must submit
] the requisite
fee for issuance of the certificate set by the board;
must provide
] evidence of
good moral character;
must submit
], on a form
prescribed by the board, evidence of completion of the work experience requirements
commensurate with the education requirements;
must execute
] an oath of
office stating support of the Constitution of the United States and of this
state and the laws thereof, and
compliance
[
will comply
]
with the Rules of Professional Conduct promulgated by the board;
must complete
] a board-approved
four-hour ethics course of comprehensive study on the Rules of Professional
Conduct of the board;
must
] successfully
completed
[
complete
] the [
written
] examination on the Rules of Professional
Conduct promulgated by the board; and
must provide
] any other
information requested by the board.
(a)
]
All certificates shall be issued in the name
of the board and may bear the signature of all board members and the seal
of the Texas State Board of Public Accountancy.
(b)
Certificates will be awarded twice a year
at sites to be determined by the board.
]
, unless otherwise
provided by board order, show satisfactory evidence of completion of a minimum
of 120 hours of qualifying continuing professional education courses within
the three most recent reporting periods.
]
(b)
Prior to reinstatement of the certificate
all fees and penalties, if any, must be paid in full.
]
(c)
] An individual who has practiced
and resided outside of Texas for three consecutive years and who meets all
the following requirements may be reinstated.
where an element is
] dishonesty
, fraud, moral turpitude,
alcohol abuse or controlled substances,
[
or fraud,
] under
the laws of any state or of the United States, or the imposition of deferred
adjudication in connection with the criminal prosecution of such an offense;
or
Article 6252-13c (Texas Civil Statutes).
]
an accountant
]
is often placed in a position of trust with respect to client funds, and the
public in general, and the business community in particular, rely on the reports
and other services of
licensees
[
accountants
], the board
considers that the following crimes directly relate to the practice of public
accountancy:
or deceit
] is an
[
essential
] element;
Chapter 515.
LICENSES
practice unit
] associated with
the firm.
practice unit
] whose license is for
less than one year. The firm's initial and subsequent
office
[
practice unit
] license shall not be issued until such time as the sole
proprietor, all partners, officers, directors, members, or shareholders of
the firm who reside in Texas
and who are certified or registered under
the Act
have obtained a license.
Practice Units ].
practice unit's
] license is December 31. The license will be issued
for a 12-month period.
practice unit's
] license, the board shall send written
notice of the impending license expiration to the main office of the firm
at the last known address according to the records of the board.
practice unit's
]
license shall not be renewed unless the sole proprietor, each partner, officer,
director, or shareholder of the firm who is listed as a member of the firm
and who is certified or registered under the Act has a current individual
license.
quality
]
review, then a
firm's office
[
practice unit's
] license
shall not be renewed unless the
office
[
practice unit
]
has notified the board of the
peer
[
quality
] review date
assigned by a board approved sponsoring organization.
practice units'
] license. A firm will not be considered in good standing
until all of its
office
[
practice unit's
] licenses have
been issued.
,
] registration [
or temporary permit
] holder whose certificate, license
or
[
,
] registration, [
or temporary permit
] has been suspended
or revoked by the board for failure to comply with the Board's Rules of Professional
Conduct, exclusive of §501.94 of this title (relating to Mandatory Continuing
Professional Education), will not be assessed license fees and penalties for
the license years during which the certificate, license
or
[
,
] registration [
, or temporary permit
] was suspended or
revoked but the individual must pay prorated license year fees for that portion
of the license period for which reinstatement of the certificate, license
or
[
,
] registration[
, or temporary permit
] is
granted.
or temporary permit
] was suspended or revoked for non-payment
of annual license fees or failure to comply with §501.94 of this title
(relating to Mandatory Continuing Professional Education), upon written application
the executive director will decide on an individual basis whether the fees
and penalties must be paid for the license years of suspension or revocation
and whether any fee exemption is applicable.
or temporary permit
] holder whose certificate,
license, registration or temporary permit is suspended to apply to the board
for the issuance of a certificate, license,
or
registration [
or temporary permit
] upon termination of suspension.
Chapter 519.
PRACTICE AND PROCEDURE
Chapter 521.
FEE SCHEDULE