TITLE 22.EXAMINING BOARDS

Part 22. TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY

Chapter 511. CERTIFICATION AS A CPA

Subchapter C. EDUCATIONAL REQUIREMENTS

22 TAC §511.57

The Texas State Board of Public Accountancy (Board) proposes amendments to §511.57, concerning Definition of Accounting Courses.

The amendments to §511.57 will add clarity to the courses that the Board may consider in meeting the definition of accounting coursework for the CPA examination by clarifying that the internship can be taken after completing a requisite number of upper division accounting courses; and clarifying that the Board may accept up to three semester hours of credit as accounting for coursework with substantial merit in the context of a career in public accounting, provided the course is predominately accounting or auditing in nature but not included elsewhere in the rule.

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 additional oversight on the Board's part.

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 additional oversight on the Board's part.

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 amendments do not require additional oversight on the Board's part.

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 a clarification of the educational requirements for certification.

The probable economic cost to persons required to comply with the amendments will be the same as it was before the amendments were adopted by the Board.

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 August 29, 2006. Comments should be addressed to J. Randel Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe, Tower 3, Suite 900, Austin, Texas 78701 or faxed to his attention at (512) 305-7854.

Mr. Treacy has determined that the proposed amendments will not have an adverse economic effect on small businesses because the amendments do not concern 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.

No other article, statute or code is affected by these proposed amendments.

§511.57.Definition of Accounting Courses.

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

(c) The board will accept not fewer than 30 passing semester hours of accounting courses without repeat from the courses listed below. The courses must meet the board's standards by containing sufficient business knowledge and application to be useful to candidates taking the Uniform CPA Examination. A recognized educational institution must have accepted the courses for purposes of obtaining a baccalaureate degree or its equivalent, and they must be shown on an official transcript. At least 15 of these hours must result from physical attendance at classes meeting regularly on the campus of the transcript-issuing institution.

(1) - (10) (No change.)

(11) an accounting internship program (not to exceed 3 semester hours) which meets the following requirements:

(A) - (H) (No change.)

(I) the internship course shall not be taken until a minimum of 12 semester hours of upper division accounting course work has been completed . [ ; and ]

[(J) the internship course shall be taken prior to completing the last full semester of course work in order to integrate the knowledge gained during the internship into the curriculum requirements for the degree program.]

(12) At its discretion, the board may accept up to three semester hours of credit as [ for ] accounting for coursework with substantial merit in the context of a career in public accounting, provided the course is predominantly accounting or auditing in nature but not included in paragraph (1)-(11) of this subsection . [ , including courses with substantial merit in the context of a career in public accounting, and courses which are principally accounting or auditing in nature but which may be designated by some other name. ] For any course submitted under this provision, the Accounting Faculty Head or Chair must affirm to the board in writing its merit and content.

(d) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 20, 2006.

TRD-200603827

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 3, 2006

For further information, please call: (512) 305-7848


Chapter 519. PRACTICE AND PROCEDURE

Subchapter A. GENERAL PROVISIONS

22 TAC §519.2

The Texas State Board of Public Accountancy (Board) proposes an amendment to §519.2, concerning Definitions.

The amendment to §519.2 will eliminate the Major Case Enforcement Committee and replace it with the Technical Standards Review 2 Committee.

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 it does not create an additional committee; rather it replaces one committee for another.

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 it does not create an additional committee; rather it replaces one committee for another.

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 replaces one committee with another.

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 expedited investigation and prosecution of cases involving technical standard violations.

The probable economic cost to persons required to comply with the amendment will be zero because the amendment does not directly affect individuals.

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 August 29, 2006. Comments should be addressed to J. Randel Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe, Tower 3, Suite 900, Austin, Texas 78701 or faxed to his attention at (512) 305-7854.

Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not directly affect small businesses.

The Board specifically invites comments from the public on the issues of whether or not the proposed amendment will have an adverse economic effect on small business; if the amendment is believed to have such an effect, then how may the Board legally and feasibly reduce that effect considering the purpose of the statute under which the amendment is to be adopted; and if the amendment is believed to have such an effect, how the cost of compliance for a small business compares with the cost of compliance for the largest business affected by the amendment under any of the following standards: (a) cost per employee; (b) cost for each hour of labor; or (c) cost for each $100 of sales. See Texas Government Code, §2006.002(c).

The amendment is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act.

No other article, statute or code is affected by this proposed amendment.

§519.2.Definitions.

In this chapter:

(1) - (4) (No change.)

(5) "Committee" means an enforcement committee of the board which are the Behavioral Enforcement Committee, the Technical Standards Review 1 Committee and the Technical Standards Review 2 [ Major Case Enforcement ] Committee;

(6) - (11) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 20, 2006.

TRD-200603828

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Earliest possible date of adoption: September 3, 2006

For further information, please call: (512) 305-7848