Part 22. TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY
Chapter 511. CERTIFICATION AS A CPA
Subchapter F. EXPERIENCE REQUIREMENTS
The Texas State Board of Public Accountancy (Board) proposes an amendment to §511.122, concerning Acceptable Work Experience.
The amendment to §511.122, will insert the following text "or higher" after text "level" and insert text "add skills" after the text "knowledge" in subsection (b); in subsection (c)(5) replace the following text "as approved by the board will" with the following text "on a full time basis may"; add subsection (c)(8) with the following text "Self employment, unless approved by the board, may not be used to satisfy the work experience requirement."
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.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
Mr. Treacy has determined that for the first five-year period the amendment is in effect the public benefits expected as a result of adoption of the proposed amendment will be a rule that clarifies what constitutes acceptable work experience.
The probable economic cost to persons required to comply with the amendment will be zero.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small business.
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 February 27, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe, Tower 3, Suite 900, Austin, Texas 78701 or faxed to his attention at (512) 305-7854.
The Board specifically invites comments from the public on the issues of whether or not the proposed amendment will have an adverse economic effect on small 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.
§511.122.Acceptable Work Experience.
(a) (No change.)
(b) Non-routine accounting involves the use of independent judgment, applying entry level or higher professional accounting knowledge and skills to select, correct, organize, interpret, and present real-world data as accounting entries, reports, statements, and analyses extending over a diverse range of tax, accounting, assurance, and control situations.
(c) All work experience, to be acceptable, shall be gained in the following categories or in any combination of these.
(1) - (4) (No change.)
(5) Education. Work experience gained as an instructor
at a college or university will qualify if evidence is presented showing
independent thought and judgment was used on non-routine accounting
matters. Only the teaching of upper division courses
on a full time basis may
[
as approved by the board will
] be considered. All experience shall be supervised by the department chair
or faculty member who is a CPA.
(6) - (7) (No change.)
(8) Self employment, unless approved by the board, may not be used to satisfy the work experience requirement.
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 January 28, 2008.
TRD-200800366
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: March 9, 2008
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy (Board) proposes an amendment to §511.163. The current section is titled "Examination on the Rules of Professional Conduct." The new section title will be "Board Approved Ethics Requirement and Examination on the Rules of Professional Conduct."
The amendment to §511.163 will delete the original subsection (a); add new subsection (a) the new text will be "Candidates applying for the issuance of the CPA certificate who have not completed a board-approved ethics course within the past two years to meet the education requirements to take the CPA Examination, must successfully complete a board-approved four-hour ethics course of comprehensive study on the Rules of Professional Conduct of the board (chapter 501) offered through a board-approved and registered provider of continuing professional education."; add new subsection (b) with the new text "Candidates applying for the issuance of the CPA certificate who completed a board-approved ethics course to meet the education requirements to take the CPA Examination more than two years prior to the date of submitting the application for issuance of the CPA certificate must successfully complete a board-approved four-hour ethics course of comprehensive study on the Rules of Professional Conduct of the board, (chapter 501) offered through a board-approved and registered provider of continuing professional education."; renumber the original subsection (b) with subsection (c); renumber the original subsection (c) with paragraph (1) and add the text "on the Rules of Professional Conduct"; renumber subsection (d) with paragraph (2); the text of subsection (d)(1) will be included in new subsection (c)(2); delete subsection (d)(2).
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be zero because the amendment does not require the state to do anything.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
Mr. Treacy has determined that for the first five-year period the amendment is in effect the public benefits expected as a result of adoption of the proposed amendment will be a rule that clarifies where a test candidate can find the rules that form the basis of the test on the rules of professional conduct and allows the candidate to take a second re-exam rather than waiting six months.
The probable economic cost to persons required to comply with the amendment will be zero.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small business.
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 February 27, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe, Tower 3, Suite 900, Austin, Texas 78701 or faxed to his attention at (512) 305-7854.
The Board specifically invites comments from the public on the issues of whether or not the proposed amendment will have an adverse economic effect on small 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.
§511.163. Board Approved Ethics Requirement and Examination on the Rules of Professional Conduct.
(a) Candidates applying for the issuance of the CPA certificate who have not completed a board-approved ethics course within the past two years to meet the education requirements to take the CPA Examination, must successfully complete a board-approved four-hour ethics course of comprehensive study on the Rules of Professional Conduct of the board (chapter 501) offered through a board-approved and registered provider of continuing professional education.
[
(a)
Candidates applying
for the issuance of the CPA certificate must successfully complete
a board-approved four-hour ethics course of comprehensive study on
the Rules of Professional Conduct of the board, offered through a
board-approved and registered provider of continuing professional
education.]
(b) Candidates applying for the issuance of the CPA certificate who completed a board-approved ethics course to meet the education requirements to take the CPA Examination more than two years prior to the date of submitting the application for issuance of the CPA certificate must successfully complete a board-approved four-hour ethics course of comprehensive study on the Rules of Professional Conduct of the board, (chapter 501) offered through a board-approved and registered provider of continuing professional education.
(c)
[
(b)
] Candidates applying
for the issuance of the CPA certificate must also pass an examination
on the rules of professional conduct promulgated by the board.
(1)
[
(c)
] The examination
on the Rules of Professional Conduct
must be completed not more
than six months prior to the issuance of the CPA certificate.
(2)
[
(d)
] A grade of 85% must be scored on the exam in order to be considered passing.
[
(1)
]
If a grade of 85% is not scored on
the exam, the candidate will be sent another exam.
[
(2)
Failure to score at
least 85% on the re-exam test would prevent the candidate from taking
the exam for six months. Failure to again score less than 85% would
continue the cycle.]
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 January 28, 2008.
TRD-200800365
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: March 9, 2008
For further information, please call: (512) 305-7848
22 TAC §§511.164 - 511.167, 511.171, 511.173, 511.174, 511.176
(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas State Board of Public Accountancy or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas State Board of Public Accountancy (Board) proposes the repeal of §§511.164 - 511.167, 511.171, 511.173, 511.174 and 511.176, concerning Names on Certificates, Certificate, Replacement Certificates, Relinquishing a Certificate or Registration, Voluntary Surrender of Certificate, Filing Complaints, Action Relating to Complaints, and Certification Hearings.
The proposed repeal of §§511.164 - 511.167, 511.171, 511.173, 511.174 and 511.176 will be removed because it is no longer relevant. A new chapter will be added including these rules.
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed repeal will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the repeal will be none.
B. the estimated reductions in costs to the state and to local governments as a result of enforcing or administering the repeal will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the repeal will be none.
Mr. Treacy has determined that for the first five-year period the repeal is in effect the public benefits expected as a result of adoption of the proposed repeal will be the elimination of a rule that is no longer relevant to this section.
The probable economic cost to persons required to comply with the repeal will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed repeal will not affect a local economy.
Mr. Treacy has determined that the proposed repeal will not have an adverse economic effect on small businesses because the repeal does not impose any duties or obligations upon small businesses.
The Board requests comments on the substance and effect of the proposed repeal from any interested person. Comments must be received at the Board no later than noon on February 27, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe, Tower III, Suite 900, Austin, Texas 78701 or faxed to his attention at (512) 305-7854.
The Board specifically invites comments from the public on the issues of whether or not the proposed repeal will have an adverse economic effect on small 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"), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed repeal.
§511.164.Names on Certificates.
§511.165.Certificate.
§511.166.Replacement Certificates.
§511.167.Relinquishing a Certificate or Registration.
§511.171.Voluntary Surrender of Certificate.
§511.173.Filing Complaints.
§511.174.Action Relating to Complaints.
§511.176.Certification Hearings.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800461
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: March 9, 2008
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy (Board) proposes new Chapter 514, concerning Certification as a CPA.
The new Chapter 514 will provide new §514.1, concerning Names on Certificates, §514.2, concerning Certificate, §514.3, concerning Replacement Certificates, §514.4, concerning Filing Complaints, §514.5, concerning Action Relating to Complaints, §514.6, concerning Voluntary Surrender of Certificate, and §514.7, concerning Certification Hearings.
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 none.
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 none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the new rules will be none.
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 adding a new section to distinguish between certificate holders and applicants applying for the certification.
The probable economic cost to persons required to comply with the new rules will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed new rules will not affect a local economy.
Mr. Treacy has determined that the proposed new rules will not have an adverse economic effect on small businesses because this does not concern small businesses.
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 February 27, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe, Tower 3, Suite 900, Austin, Texas 78701 or faxed to his attention at (512) 305-7854.
The Board specifically invites comments from the public on the issues of whether or not the proposed 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"), 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 new rules.
§514.1.Names on Certificates.
(a) The certificate of a certified public accountant shall be issued under the legal name of the candidate as it appears on the birth certificate, current passport or alien registration card or as changed by court order, marriage license, or divorce decree.
(b) The license of a certified public accountant may be issued in the name of the licensee as it appears on the birth certificate or other appropriate legal document in accordance with §511.22 of this title (relating to Fee for a Replacement Certificate) or as changed by court order, marriage license, or divorce decree.
(c) At the candidate's option, words or abbreviations such as "Jr." or "III" do not have to appear on the certificate, license, or the board's records even though such words or abbreviations are part of the candidate's legal name.
§514.2.Certificate.
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.
§514.3.Replacement Certificates.
(a) Replacement certificates may be issued by the board in appropriate cases and upon payment by the certified public accountant or public accountant of the fee as determined by the board in §521.11 of this title (relating to Fee for the Replacement of a Certificate). A registration or certificate holder is specifically prohibited from possessing more than one Texas certificate as a certified public accountant or registration as a public accountant.
(b) When a replacement certificate is requested, the registration or certificate holder must return the original or registration certificate or submit a sworn affidavit describing the occurrence that necessitated the replacement certificate or registration.
§514.4.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 dishonesty, fraud, moral turpitude, alcohol abuse or controlled substances, 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
(3) conduct indicating a lack of fitness to serve the public as a professional accountant.
§514.5.Action Relating to Complaints.
(a) The board, having conducted a hearing under this title, may reach the following conclusions:
(1) deny the candidate the opportunity for issuance of a certificate;
(2) prohibit the candidate from certification for a period not to exceed five years;
(3) issue the candidate a certificate with conditions and requirements established by the board; or
(4) close the case without adverse action against the candidate.
(b) The board shall refund the fee submitted by the candidate for certification if the candidate is denied the issuance of a certificate.
(c) The candidate may petition the board in writing for a reversal of the board's findings. After notice and hearing the board may:
(1) approve an application for certification that was previously denied;
(2) uphold its prior findings;
(3) overturn its prior findings; or
(4) modify its prior findings.
§514.6.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) evidence of completion of all CPE that would have been required to be completed up to a maximum of 120 hours over the three years immediately preceding application;
(2) 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
(3) 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.
(d) If an individual, subject to the approval of the Board, voluntarily surrenders and resigns the certificate or registration during the course of a disciplinary investigation or proceeding conducted by the board, this fact shall be disclosed in any later application for a new certificate, and shall be considered before the issuance of a new certificate.
§514.7.Certification Hearings.
Unless otherwise determined by the board, the following are reasons why a person not 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's consideration shall include, the following issues before reaching a decision:
(A) the nature and seriousness of the crime as it applies to the board's statutory responsibility to ensure that a person, maintains high standards of competence and integrity.
(B) the extent to which the person might have an opportunity to repeat criminal activity of the same type as that in which the individual was previously involved;
(C) 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, and
(D) the additional factors provided in §53.023 of the Texas Occupations Code.
(4) 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 reports and other services of licensees, the board considers that the following crimes directly relate to the practice of public accountancy:
(A) a felony offense or misdemeanor offense of which dishonesty or fraud is an element;
(B) a 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) crimes 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 January 28, 2008.
TRD-200800460
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: March 9, 2008
For further information, please call: (512) 305-7848
Subchapter D. PROCEDURES AFTER HEARING
The Texas State Board of Public Accountancy (Board) proposes an amendment to §519.72, concerning Final Decisions and Orders.
The amendment to §519.72 will replace subsection (c)(1) - (8) with new subsection (c): The board may change a finding of fact or conclusion of law made by the administrative law judge, or may vacate or modify an order issued by the administrative judge, only if the board determines:, new (c)(1) that the administrative law judge did not properly apply or interpret applicable law, agency rules, written policies provided to the administrative law judge with a written statement of applicable rules or policies, or prior administrative decisions; new (c)(2) that a prior administrative decision on which the administrative law judge relied is incorrect or should be changed; or and new (c)(3) that a technical error in a finding of fact should be changed.
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the amendment will be none.
Mr. Treacy has determined that for the first five-year period the amendment is in effect the public benefits expected as a result of adoption of the proposed amendment will comport state law.
The probable economic cost to persons required to comply with the amendment will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because this will not affect small businesses.
The Board requests comments on the substance and effect of the proposed amendment from any interested person. Comments must be received at the Board no later than noon on February 27, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe, Tower 3, Suite 900, Austin, Texas 78701 or faxed to his attention at (512) 305-7854.
The Board specifically invites comments from the public on the issues of whether or not the proposed amendment will have an adverse economic effect on small 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.
§519.72.Final Decisions and Orders.
(a) - (b) (No change.)
(c) The board may change a finding of fact or conclusion of law made by the administrative law judge, or may vacate or modify an order issued by the administrative judge, only if the board determines:
(1) that the administrative law judge did not properly apply or interpret applicable law, agency rules, written policies provided to the administrative law judge with a written statement of applicable rules or policies, or prior administrative decisions;
(2) that a prior administrative decision on which the administrative law judge relied is incorrect or should be changed; or
(3) that a technical error in a finding of fact should be changed.
[
(c)
It is the policy of
the board to change a finding of fact or conclusion of law or to vacate
or modify any proposed order of an ALJ when the proposed order is:]
[
(1)
erroneous;]
[
(2)
against the weight of the evidence;]
[
(3)
based on unsound accounting principles
or auditing standards;]
[
(4)
based on insufficient review of the
evidence;]
[
(5)
not sufficient to protect the public
interest;]
[
(6)
not sufficient to adequately allow
rehabilitation of the licensee;]
[
(7)
an infringement on the board's discretion
to determine the board's policies; or]
[
(8)
to correct a technical error.]
(d) - (g) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800367
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: March 9, 2008
For further information, please call: (512) 305-7848
Subchapter C. ETHICS RULES: INDIVIDUALS AND SPONSORS
The Texas State Board of Public Accountancy (Board) proposes an amendment to §523.132, concerning Board Contracted Ethics Instructors after January 1, 2005.
The amendment to §523.132 will delete "after January 1, 2005" from the description of the rule; add the text "The" to the beginning of subsection (a); delete the following text "Effective January 1, 2005, the" and the following text "after January 1, 2005". In subsection (a)(1) after the text "Texas" insert the following text "or that the instructor is team teaching with a certified public accountant licensed in Texas". Delete the following text "within the last three years or". In subsection (b)(1) delete the following text "or by June 30, 2005, whichever is later,". In subsection (b)(5) delete the text "Public Accountancy". Delete subsection (d) and replace with the following text "An instructor must submit a current resume with the contract."
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.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
Mr. Treacy has determined that for the first five-year period the amendment is in effect the public benefits expected as a result of adoption of the proposed amendment will be greater clarity regarding the requirements for ethics course instructors.
The probable economic cost to persons required to comply with the amendment will be zero.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
The Board requests comments on the substance and effect of the proposed amendment from any interested person. Comments must be received at the Board no later than noon on February 27, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe, Tower 3, Suite 900, Austin, Texas 78701 or faxed to his attention at (512) 305-7854.
The Board specifically invites comments from the public on the issues of whether or not the proposed amendment will have an adverse economic effect on small 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.
§523.132.Board Contracted Ethics Instructors [ after January 1, 2005 ].
(a)
The
[
Effective January 1, 2005, the
] board may contract with any instructor wishing to offer
an ethics course approved by the board pursuant to §523.131 of
this title (relating to Board Approval of Ethics Course Content [
after January 1, 2005
]) who can demonstrate that:
(1) the instructor is a certified public accountant licensed in Texas
or that the instructor is team teaching with
a certified public accountant licensed in Texas
and has completed the board's ethics training program [
within the last three years or
] as required by the board;
(2) - (3) (No change.)
(b) An instructor demonstrates that he is qualified to teach ethical reasoning upon proof that he has:
(1) at the time of application [
or by June 30, 2005, whichever is later,
] obtained education in ethics substantially
equivalent to a minimum of 6 hours of credit from an accredited University,
College or Community College, of which at least three hours must be
in organizational ethics;
(2) - (4) (No change.)
(5) goals and interests consistent with the board's
purpose of protecting the public interest pursuant to the provisions
of the [
Public Accountancy
] Act.
(c) (No change.)
(d) An instructor must submit a current resume with the contract.
[
(d)
Interpretive comments:
To have goals and interests consistent with the board's purpose of
protecting the public interest pursuant to the provisions of the Public
Accountancy Act an instructor must refrain from using the instruction
of an ethics course as a marketing tool for other products and services
offered by the instructor. An instructor must be free from conflicts
of interest with the board in both fact and appearance. Representation
of a respondent or a complainant in a disciplinary proceeding pending
before the board creates the appearance of a conflict of interest.]
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 January 28, 2008.
TRD-200800364
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: March 9, 2008
For further information, please call: (512) 305-7848