Part 22. TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY
Chapter 501. RULES OF PROFESSIONAL CONDUCT
Subchapter A. GENERAL PROVISIONS
The Texas State Board of Public Accountancy adopts an amendment to §501.51, concerning Preamble and General Principles, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9012). The text of the rule will not be republished.
The amendment to §501.51 will replace the phrase "of thought and action" in subsection (b) with the phrase "in fact and in appearance" and the rule referenced in subsection (h) is changed from §501.52(9) to §501.52(8).
The amendment will function by providing greater clarity and consistency regarding license holders' independence.
No comments were received regarding adoption of the amendment.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800368
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §501.52, concerning Definitions, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9013). The text of the rule will not be republished.
The amendment to §501.52 will: replace the phrase "certificate or registration holder" with the word "person" and add the word "Accounting" to paragraph (2); replace the phrase "American Institute of Certified Public Accountants" with "AICPA", and add the acronym "PCAOB", add the phrase "or international" to paragraph (4)(A); replace the phrase "American Institute of Certified Public Accountants" with "AICPA" and add the phrase "or international" to paragraph (4)(B); delete the definition for "Certificate or registration holder" formerly in paragraph (6); renumber the original paragraph (7) as paragraph (6); renumber the original paragraph (8) as paragraph (7); replace the word "person" with "party" and add the phrase "or professional accounting work" to paragraph (7); renumber the original paragraph (9) as paragraph (8); replace the phrase "certificate or registration holder" with the word "person", delete the word "a", add the phrase "professional accounting services", delete the word "service", add the phrase "or professional accounting work, and includes:" and delete the phrase "service involving the use of accounting, attesting, or auditing skills." and delete subparagraphs (A) - (C) which 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;", reletter subparagraph (D) to subparagraph (A), and reletter subparagraph (E) to subparagraph (B) in new paragraph (8); renumber the original paragraph (10) as paragraph (9); replace "person" with "party" in paragraph (9); renumber the original paragraph (11) as paragraph (10); replace the phrase "certificate or registration holder" with the word "person's" in paragraph (10); renumber the original paragraph (12) as paragraph (11); add the phrase "or other comprehensive basis of accounting" in paragraph (11); renumber the original paragraph (13) as paragraph (12); add the word "sole" and replace "or professional or other corporation or other business" with "corporation or other legally recognized business entity" in paragraph (12); renumber the original paragraph (14) as paragraph (13); replace the word "certificate" with "licensee", replace the word "certificate or registration holder" with "person", and replace the word "certificate or registration holder" with "person" in paragraph (13); renumber the original paragraph (15) as paragraph (14); add a new definition of "Out-of-state practitioner and out of state firm," that "means a person licensed in another jurisdiction practicing in Texas pursuant to a practice privilege as provided for in §901.461 and §901.462 of the Act" and insert that definition as the new paragraph (15); delete "or" and add "or "Compliance Assurance" in paragraph (16); replace "or professional or other corporation, or other business individual, partnership, corporation, registered limited liability partnership or limited liability company" with "sole proprietorship, partnership, limited liability partnership, limited liability company, corporation or other legally recognized business entity" and add the phrase "that provides or offers to provide professional accounting services or professional accounting work as defined in paragraph (22) of this section" to paragraph (17); replace "practicing" with "the client practice of" in paragraph (19); replace "person" for "firm or individual", replace "accounting" with "Accounting" and add "Professional Accounting Work" in paragraph (20); add the word "Accounting" to paragraph (21); add "(s)" to the "statement" in paragraph (21)(A); delete the word "and" in paragraph (21)(C); add "(E) providing forensic accounting services; and" and "(F) providing internal auditing services" to paragraph (21); replace the following language "when used with reference to financial statements, 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" with the language "an opinion, report, or other document prepared in connection with an attest service that states or implies assurance as to the reliability of the financial statement(s); and includes or is accompanied by a statement or implication that the person issuing the opinion, report, or other document has special knowledge or competence in accounting or auditing. A statement or implication of assurance as to the reliability of a financial statement or as to the special knowledge or competence of the person issuing the opinion, report, or other document includes any form of language that is conventionally understood to constitute such a statement or implication. A statement or implication of special knowledge or competence in accounting or auditing may arise from the use by the issuer of the opinion, report, or other document of a name or title indicating that the person is an accountant or auditor; or the language of the opinion, report, or other document itself" in the new paragraph (22).
The amendment will function by providing clearer definitions that are consistent with changes in the Texas Public Accountancy Act as well as changes in other Board rules.
No comments were received regarding adoption of the amendment.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800369
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §501.60, concerning Auditing Standards, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9016). The text of the rule will not be republished.
The amendment to §501.60 will replace the phrase "certificate or registration holder" with the word "person" and add the phrase "Public Company Accounting Oversight Board."
The amendment will function by allowing Board to enforce auditing standards promulgated by the Public Company Accounting Oversight Board in addition to those promulgated by other standard setting institutions over any person who provides professional accounting services or professional accounting work as defined by Board rule and the Texas Public Accountancy Act.
No comments were received regarding adoption of the amendment.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800370
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §501.61, concerning Accounting Principles, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9017). The text of the rule will not be republished.
The amendment §501.61 will replace the phrase "certificate or registration holder" with the phrase "person or person practicing under a practice privilege as provided for in §901.462 of the Act"; and add "(s)" to "statement"; and replace the phrase "In such a case, the certificate, or registration holder's" with the word "The".
The amendment will function by allowing the Board to enforce generally accepted accounting principles over persons who provide professional accounting services or professional accounting work as defined by Board rule and the Texas Public Accountancy Act, including those persons licensed in another state who perform that work in this state.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800371
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §501.62, concerning Other Professional Standards, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9017). The text of the rule will not be republished.
The amendment to §501.62 will replace the phrase "certificate or registration holder" with the word "person" in the first sentence; and replace the phrase "generally recognized" with "national or international" in paragraph (5).
The amendment will function by allowing the Board to enforce professional standards over persons who provide professional accounting services or professional accounting work as defined by Board rule and the Texas Public Accountancy Act
No comments were received regarding adoption of the amendment.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800372
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §501.70 concerning Independence without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9018). The text of the rule will not be republished.
The amendment to §501.70 will: replace the phrase "certificate or registration holder" with the word "person"; add the word "accounting"; add "or professional accounting work," add ", the PCAOB" and add "national or international".
The amendment will function by allowing the Board to enforce independence standards, including those promulgated by the Public Company Accounting Oversight Board, over persons who provide professional accounting services or professional accounting work as defined by Board rule and the Texas Public Accountancy Act.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800373
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §501.71 concerning Receipt of Commissions and Other Compensation without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9019). The text of the rule will not be republished. The amendment to §501.71 will: replace the phrase "certificate or registration holder" with the word "person" in subsections (a), (b), and (c); replace the phrase "licensee or the licensee's firm" with the phrase "person" in subsection (a); adds the phrase "pays or agrees to pay" in subsection (c); deletes the phrase "to another person" from subsection (c); deletes the phrase "to such other persons" from subsection (c); deletes the phrase "the other person is" from subsections (c)(1) and (c)(2); replaces the phrase "to persons formerly engaged in the practice of public accountancy" with a "." in subsection (e); and deletes subsection (f). The amendment will function by allowing the Board to enforce its rule regarding the receipt of commissions and other compensation over persons who provide professional accounting services or professional accounting work as defined by Board rule and the Texas Public Accountancy Act.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800374
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Pubic Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §501.72 concerning Contingency Fees without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9020). The text of the rule will not be republished. The amendment to §501.72 will: replace the phrase "certificate or registration holder" with the word "person" in subsections (a), (b), (c), and (d); add the word "accounting" to subsection (a); add the phrase "or professional accounting work" to subsection (a); add the phrase "professional accounting" to subsection (a); add the phrase "or professional accounting work" to subsection (a); replaced the phrase "licensee or the licensee's firm" with the word "person" in subsection (b); delete subsection (e); and renumber subsection (f) as subsection (e). The amendment will function by allowing the Board to enforce its rule regarding contingency fees over persons who provide professional accounting services or professional accounting work as defined by Board rule and the Texas Public Accountancy Act.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800375
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §501.73 concerning Integrity and Objectivity without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9021). The text of the rule will not be republished.
The amendment §501.73 will: replace the phrase "certificate or registration holder" with the word "person" in subsections (a), (b), and (d); add the word "accounting" in subsections (a) and (b); add the phrase "or professional accounting work" in subsections (a), (b) and (d); replace the phrase "as there is reasonable support for the position" with the phrase "as any tax position taken complies with standards set forth in Circular 230 issued by the Internal Revenue Service and AICPA Statements on Standards for Tax Services."; delete subsection (d); renumber subsection (e) as subsection (d); and renumber subsection (f) as subsection (e).
The amendment will function by allowing the Board to enforce its rule regarding integrity and objectivity over persons who provide professional accounting services or professional accounting work as defined by Board rule and the Texas Public Accountancy Act.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800376
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy (Board) adopts an amendment to §501.74 concerning Competence without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9022). The text of the adopted rule will not be republished.
The adopted amendment to §501.74 will: replace the phrase "certificate or registration holder" with the word "person" in subsections (a), (a)(1), (a)(2), (b), (c), and (d); add the word "accounting" in subsection (a); add the phrase "or professional accounting work" in subsection (a); add the word "accounting" to subsection (a)(1); add the phrase "or professional accounting work" to subsection (a)(1); delete the sentence "The certificate or registration holder may have the knowledge required to complete the professional services with competence prior to performance. In some cases, however, additional research or consultation with others may be necessary during the performance of the professional services." in subsection (a)(2); replace the phrase "through these means" with the phrase "to perform professional accounting services or professional accounting work" in subsection (a)(2); add the phrase "accounting or professional accounting work" to subsection (a)(2); replace the words "sufficient data" with the phrase "and maintain appropriate documentation" in subsection (d); add subsection (e) "Interpretive comment: The person may have the knowledge required to complete the professional services with competence prior to performance. In some cases, however, additional research or consultation with others may be necessary during the performance of the professional services."
The adopted amendment will function by allowing the Board to enforce its rule regarding competence over persons who provide professional accounting services or professional accounting work as defined by Board rule and the Texas Public Accountancy Act, as well as greater clarity regarding cases where such a person is not competent to perform professional accounting services.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800377
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy (Board) adopts an amendment to §501.75, concerning Confidential Client Communications, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9023). The adopted text of the rule will not be republished.
The adopted amendment to §501.75 will replace the phrase "certificate or registration holder" with the word "person" and add the word "accounting" and the phrase "or professional accounting work".
The adopted amendment will function by allowing the Board to enforce its rule regarding confidential client communications over persons who provide professional accounting services or professional accounting work as defined by Board rule and the Texas Public Accountancy Act.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800378
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy (Board) adopts an amendment to §501.76 concerning Records and Work Papers, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9024). The adopted text of the rule will not be republished.
The adopted amendment to §501.76 will replace the phrase "certificate or registration holder" with the word "person" in subsections (a), (a)(2), (a)(3), (b), (c), (c)(1), (c)(2), (c)(3), (f), and (g); replace the word "whether" with the word "either" in subsection (a); delete the phrase "the form of" from subsection (a); replace the phrase "computer readable format" with the phrase "other useable form" in subsection (a); delete the phrase "for personnel time and photocopying" from subsection (a); replace the word "working" with the word "work" in subsection (a)(3); replace the phrase "certificate or registration holder's" with "person's" in subsections (a)(3) and (c)(2); replace the word "working" with the word "work" in subsections (a)(3), (c), (c)(1), (c)(2), (c)(3), (d), (e), and (f); replace the word "papers" with the word "documents" in subsections (c)(1) and (f); replace the word "documents" for the words "worksheets" in subsections (e)(1), (e)(2), and (e)(4) and "papers" in subsection (f).
The adopted amendment will function by allowing the Board to enforce its rule regarding records and work papers over persons who provide professional accounting services or professional accounting work as defined by Board rule and the Texas Public Accountancy Act.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800379
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §501.77, concerning Acting through Others, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9026). The text of the rule will not be republished.
The amendment to §501.77 will replace the phrase "certificate or registration holder" with the word "person" in subsection (a).
The amendment will function by allowing the Board to enforce its rule regarding acting through others over persons who provide professional accounting services or professional accounting work as defined by Board rule and the Texas Public Accountancy Act.
No comments were received regarding adoption of the amendment.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800380
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §501.78, concerning Withdrawal or Resignation, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9026). The text of the rule will not be republished.
The amendment to §501.78 will replace the phrase "certificate or registration holder" with the word "person" in subsections (a) - (c); add the phrase "to provide public accounting services and public accounting work" to subsection (a); and replace the reference to "§501.90(17)" with "§501.90(16)" in subsection (c).
The amendment will function by allowing the Board to enforce its rule regarding withdrawal or resignation over persons who provide professional accounting services or professional accounting work as defined by Board rule and the Texas Public Accountancy Act.
No comments were received regarding adoption of the amendment.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800381
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §501.80, concerning Practice of Public Accountancy, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9027). The text of the rule will not be republished.
The amendment to §501.80 will replace the phrase "certificate or registration holder" with the word "person", replace the phrase "issued by the board" with the phrase "or qualifies under a practice privilege", and add the phrase "or qualifies under a practice privilege" to subsection (a); change the reference in subsection (c) from "§501.52(9)" to "§501.52(8)" and from "§501.52(19)" to "§501.52(21)".
The amendment will function by allowing the Board to enforce its rule regarding the practice of public accountancy over persons who provide professional accounting services or professional accounting work as defined by Board rule and the Texas Public Accountancy Act.
No comments were received regarding adoption of the amendment.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800382
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §501.81, concerning Firm License Requirements, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9028). The text of the rule will not be republished.
The amendment to §501.81 will remove the phrase "including a sole proprietorship", add the phrase "or offer to provide", and add the phrase "issued by the board or qualifies under a practice privilege" to subsection (a); replace the language in subsection (b) with the following language "(b) A firm is required to hold a license issued by the board if the firm establishes or maintains an office in this state."; delete subsection (b)(1) and (2); add subsection (c) that reads "(c) A firm is required to hold a license issued by the board and an individual must practice through a firm that holds such a license, if for a client that has its principal office in this state, the individual performs: (1) a financial statement audit or other engagement that is to be performed in accordance with the Statements on Auditing Standards; (2) an examination of prospective financial information that is to be performed in accordance with the Statement on Standards of Attestation Engagements; or (3) an engagement that is to be performed in accordance with auditing standards of the PCAOB or its successor."; reletter former subsection (c) to subsection (d); reletter former subsection (d) to subsection (e); replace the phrase "certificate or registration holder" with the word "person", correct the reference from subsection (c) to subsection (d), and add a new paragraph (3) that reads "(3) pursuant to a practice privilege." to the new subsection (e); reletter former subsection (e) to subsection (f); replace the word "individual's" with "person's", delete the word "third", replace "certificate holder" with "person", and replace the phrase "unregistered entity" with the phrase "an unlicensed firm" in the new subsection (f); reletter subsection (f) to subsection (g); replace the phrase "certificate or registration holder" with the word "person", change the reference from "§501.2(9)" to "§501.52(8)", change the reference from "§501.52(19)" to "§501.52(21)", and change the reference from subsection (c) to subsection (d) in the new subsection (g).
The amendment will function by requiring a firm license rule that is consistent with changes in the Texas Public Accountancy Act concerning out of state certified public accountants who practice in this state as well as allowing the Board to enforce its rule regarding firm license requirements over persons who provide professional accounting services or professional accounting work as defined by Board rule and the Texas Public Accountancy Act.
No comments were received regarding adoption of the amendment.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800383
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §501.82, concerning Advertising, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9029). The text of the rule will not be republished.
The amendment to §501.82 will replace the phrase "certificate or registration holder" with the word "person" in the subsections (a), (a)(1), (a)(2), (c), (d), (e)(1), and (f); add the word "cellular", add the phrase "or any other electronic means", and delete the word "or" from subsection (b)(2); delete the word "annoy" and delete the "," after "alarm" in subsection (b)(7); replace the phrase "a person" with "anyone" in subsections (b)(9) and (e)(1) - (3); replace the word "the person" with the word "anyone" in subsection (b)(10); replace the word "persons'" with the word "parties" in subsections (d); replace the word "a person" with the word "anyone" in subsection (e); delete the phrase ", which are currently not being provided by another certificate or registration holder" in subsection (e)(3); and delete the phrase "radio and television" in subsection (f).
The amendment will function by taking into account changes in technology as well as allowing the Board to enforce its rule regarding advertising over persons who provide professional accounting services or professional accounting work as defined by Board rule and the Texas Public Accountancy Act.
No comments were received regarding adoption of the amendment.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800384
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §501.84, concerning Form of Practice, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9031). The text of the rule will not be republished.
The amendment to §501.84 will replace the phrase "certificate or registration holder" with the word "person", replace the phrase "a proprietorship, a partnership, a limited liability company, a registered limited liability partnership, a professional public accounting corporation, or business corporation" with the phrase "a sole proprietorship, partnership, limited liability partnership, liability company, corporation or other legally recognized business entity that provides professional accounting services or professional accounting work"; and replace the phrase "state, territory, or foreign country" with the word "jurisdiction".
The amendment will function by providing a clearer rule that allows the Board to enforce its rule regarding advertising over persons who provide professional accounting services or professional accounting work as defined by Board rule and the Texas Public Accountancy Act.
No comments were received regarding adoption of the amendment.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800385
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §501.85, concerning Complaint Notice, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9031). The text of the rule will not be republished.
The amendment to §501.85 will replace the phrase "certificate or registration holder" with the word "person".
The amendment will function by allowing the Board to enforce its rule regarding complaint notices over persons who provide professional accounting services or professional accounting work as defined by Board rule and the Texas Public Accountancy Act.
No comments were received regarding adoption of the amendment.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800386
. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §501.90, concerning Discreditable Acts, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9032). The text of the rule will not be republished.
The amendment to §501.90 will: replace the phrase "certificate or registration holder" with the word "person" in the first sentence and in paragraph (18); delete the phrase "to a person" at the end of paragraph (5); replace the phrase "a voluntary" with the word "any" and replace the word "agency" with the phrase "federal regulatory or licensing body" in paragraph (7); replace the word "authority" with the word "body" in paragraph (13); delete paragraph (16); renumber paragraph (17) as paragraph (16), replace the phrase "certificate holder" with "person" in new paragraph (16); renumber paragraph (18) as paragraph (17); renumber paragraph (19) as paragraph (18); and replace the word "Individuals" with the word "Persons" in new paragraph (18).
The amendment will function by allowing the Board to enforce its rule regarding discreditable acts over persons who provide professional accounting services or professional accounting work as defined by Board rule and the Texas Public Accountancy Act. In addition, the rule makes clear that any consent decree concerning the right to practice before any state or federal regulatory or licensing body for a cause which in the opinion of the board warrants its action is a discreditable act. Finally, the rule removes the discreditable act of causing a breach in the security of the CPA exam so that issue can be addressed in the rules regarding the CPA exam.
No comments were received regarding adoption of the amendment.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800387
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §501.91, concerning Reportable Events, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9033). The text of the rule will not be republished.
The amendment to §501.91 will add subsection (a)(4) and (5) to read "(4) an unappealable adverse finding by any state or federal court or an agreed settlement in a civil action against a licensee concerning professional accounting services or professional accounting work; or (5) the loss of a professional license from another state or federal regulatory agency such as an insurance license or a securities license, resulting from an unappealable adverse finding." and add the phrase "and further defined in §501.90(18) and §519.7 of this title" in subsection (e).
The amendment will function by making it easier for the Board to become aware of any legal action that results in an adverse finding against a license holder, thereby facilitating investigations into possible violations of the Board's rules and the Texas Public Accountancy Act.
No comments were received regarding adoption of the amendment.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800388
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §501.92, concerning Frivolous Complaints, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9034). The text of the rule will not be republished.
The amendment to §501.92 will replace the phrase "certificate or registration holder" with the word "person"; replace the phrase "certificate holder" with the word "person" and add a new, final sentence that reads: "A person who makes a complaint against another person that is groundless and brought in bad faith, for the purpose of harassment, or for any other improper purpose shall be in violation of this rule."
The amendment will function by allowing the Board to enforce its rule regarding frivolous complaints over persons who provide professional accounting services or professional accounting work as defined by Board rule and the Texas Public Accountancy Act. In addition, the rule makes clear that the Board considers complaints made in bad faith to be violations of the rules of professional conduct and sanctionable.
No comments were received regarding adoption of the amendment.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800389
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §501.93, concerning Responses, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9035). The text of the rule will not be republished.
The amendment to §501.93 will: replace the phrase "An applicant, certificate or registration holder" with the phrase "A person" in subsections (a) and (b); replace the phrase "the applicant, certificate or registration holder" with the phrase "a person" in subsection (b); replace the word "working" with the word "work" in subsections (b) and (c); delete the word "board" in subsection (c); delete the phrase ", certificate holder" from subsection (d); add a new subsection (f) which reads "(f) Interpretive Comment. In this section, the term board includes board staff."
The amendment will function by allowing the Board to enforce its rule regarding responses over persons who provide professional accounting services or professional accounting work as defined by Board rule and the Texas Public Accountancy Act. In addition, the rule makes clear that Board staff represents the Board for purposes of making requests for substantive responses to Board inquiries.
No comments were received regarding adoption of the amendment.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800390
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
Subchapter B. CERTIFICATION BY EXAMINATION
The Texas State Board of Public Accountancy adopts an amendment to §511.21, concerning Examination Application, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9036). The text of the rule will not be republished.
The amendment to §511.21 will replace the word "subject" with the word "section" in subsection (d); replace the phrase "reexamination applicant" with the word "application" and replace the word "continue" with the phrase "be verified" in subsection (e).
The amendment will function by creating a rule regarding the application for the CPA exam that is consistent with the requirements of the computer based exam.
No comments were received regarding adoption of the amendment.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800391
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §511.22, concerning Initial Filing of the Application of Intent, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9037). The text of the rule will not be republished.
The amendment to §511.22 will add the phrase "at least one section of" in subsection (a)(1) and replace the phrase "Section 521.11" with the phrase "Section 521.12" in subsection (c).
The amendment will function by being a rule regarding the procedure for filing the application of intent to take the CPA exam that is consistent with the requirements of the computer based exam.
No comments were received regarding adoption of the amendment.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800392
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §511.52 concerning Recognized Colleges and Universities without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9038). The text of the rule will not be republished.
The amendment to §511.52 will replace the phrase "passing upon" with the phrase "considering"; add the phrase "--Higher Learning Commission" to paragraph (2); add the phrase "--Commission on Institutions of Higher Education" to paragraph (3); replace the phrase "Association of Schools and Colleges" with the phrase "Commission on Colleges and Universities" in paragraph (4); add the phrase "--Commission on Colleges" to paragraph (5); add the phrase "--Commission for Senior Colleges" at the end of paragraph (6); and add a new paragraph (8) that states "The board recognizes and accepts only community colleges that offer an accounting program reviewed and accepted by the board. (See §511.57(a)(2) and §511.58(a) of this chapter for degree and course requirements.)"
The amendment will function by clarifying which colleges and community college programs are recognized by the Board.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800393
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §511.56 concerning Educational Qualifications under the Act without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9039). The text of the rule will not be republished.
The amendment to §511.56 will replace the word "and" with the words "consisting of" in subsection (b)(2); renumber (b)(3) to (b)(2)(A) and (b)(4) to (b)(2)(B); delete the word "complete" at the start of subsections (b)(2)(A) and (b)(2)(B); add the following text "upper level" after the word "of" in subsection (b)(2)(A) and (b)(2)(B); in subsection (b)(2)(A) delete the word "and"; in subsection (b)(2)(B) replace "20" with "24"; add the following "; and" at the end of (b)(2)(B) and add a new subsection (b)(2)(C) is created with the text "a 3 semester hour board approved ethics course as defined by board rule, §511.58 of this chapter".
The amendment will function by clarifying the education requirements for candidates for a license issued by the Board.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800394
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §511.58 concerning Definitions of Related Business Subjects without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9039). The text of the rule will not be republished.
The amendment to §511.58 will add the word "level" to subsection (a), in subsection (b) replace the text "Effective July 1, 2005, the" with the text "The", and replace "21" with "24"; replace the word "division" with the word "level" in subsection (b); in subsection (c) replace the text "21" with "24"; and in subsection (c) replace "21" with "24" and delete the text "effective July 1, 2005.
The amendment will function by reflecting the increased number of passing semester hours of upper division courses required by the Board as part of the education requirement for candidates of licenses issued by the Board.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800395
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy (Board) adopts an amendment to §511.70, concerning Grounds for Disciplinary Action of Candidates, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9040). The adopted text of the rule will not be republished.
The adopted amendment to §511.70 in section (d) will replace the text "applicant" with "candidate"; in subsection (e)(1) replace the text "examinee" with the text "candidate"; in subsection (e)(2) replace the text "examinee" with the text "candidate"; in subsection (e)(3) replace the text "examination" with the text "candidate"; in subsection (e)(4) replace the text "examinee" with the text "candidate"; and in subsection (e)(5) replace the text "examinees" with the text "candidates".
The adopted amendment will function by reflecting a change in terminology from "examinee" with "candidate."
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption of this rule amendment.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800396
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7648
The Texas State Board of Public Accountancy (Board) adopts an amendment to §511.72, concerning Uniform Examination without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9041). The adopted text of the rule will not be republished.
The adopted amendment to §511.72 in subsection (a) twice will replace both "National Association of State Boards of Accountancy" with "NASBA" and "American Institute of Certified Public Accountants" with "AICPA"; subsection (b) replace the text "subjects" with the text "sections"; in subsection (c) replace the following text "board authorization form and one other" with the text "Notice to Schedule form provided by NASBA" and add the following text ", and a second form of identification such as a board issued form" after the text "candidate".
William Treacy, Executive Director of the Board, has determined that, for the first five-year period the adopted amendment will be in effect:
The amendment will function by establishing a rule regarding the uniform examination that reflects changes in requirements as well as changes imposed by the computer based exam.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800397
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy (Board) adopts an amendment to §511.73, concerning Notice to Candidate to Schedule Taking a CPA Exam Subject, without changes to the proposed text as published in the December 7, 2007 issue of the Texas Register (32 TexReg 9042). The adopted text of the rule will not be republished.
The adopted amendment to §511.73 will replace the text "Subject" with "Section" in the rule's title; in subsection (a) following the text "examination" add the following text "within the next ninety days from the approval of the eligibility application."; in subsection (b) replace the word "applicant" with the word "candidate", replace the text "National Association of State Boards of Accountancy" with the text "NASBA", replace the text "subject" with the text "section", replace the word "is" with the word "has" after the text "applicant", add the word "applied", and delete the text "eligible. The actual fee set by the board is identified in §521.2 of this title (relating to Examination Fees)."; in subsection (c) after the text "schedule" add the text "with the vendor" and replace the text "subject" with the text "section"; and in subsection (d) replace the text "subject" with the text "section"; and replace the last use of the text "section" with the text "this rule".
The adopted amendment will function by reflecting changes to the schedule for payment as well as the notice provided by the Board to exam candidates imposed by the computer based exam.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800398
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy (Board) adopts an amendment to §511.77 concerning Scoring without changes to the proposed text as published in the December 7, 2007 issue of the Texas Register (32 TexReg 9043). The adopted text of the rule will not be republished.
The adopted amendment to §511.77 will replace the text "Grading" with the text "Scoring" in the rule's title; replace all text "grade" with the text "score"; replace the text "grades" with the text "score"; replace text "the grading authority" with the following text "NASBA"; and delete the "%".
The adopted amendment will function by reflecting the changes made to grading the exam imposed by the computer based exam.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800399
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy (Board) adopts an amendment to §511.79 concerning Request for Review without changes to the proposed text as published in the December 7, 2007 issue of the Texas Register (32 TexReg 9044). The adopted text of the rule will not be republished.
The adopted amendment to §511.79 will delete the text "and Appeal" from the rule's title; delete text ": (1)"; replace the text "paper" with the text "result"; replace the text "American Institute of Certified Public Accountants" with "AICPA"; replace the text "graded the paper; or" with the text "scored the uniform examination."; and delete paragraph (2) including the following text "(2) may upon written requests and payment of the requisite fee, inspect a copy of the questions and answers at the board office during regular office hours, and submit a written statement which may be an appeal to the American Institute of Certified Public Accountants which originally graded the paper. Copies of the examination questions or answers may not be made."
The adopted amendment will function by a test score review reflecting changes imposed by the computer based exam.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800400
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy (Board) adopts an amendment to §511.80 concerning Granting of Credit, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9044). The adopted text of the rule will not be republished.
The adopted amendment to §511.80 will in subsection (a) replace the text "grade" with the text "score", replace the text "subject" with the text "section", and replace the following text "the candidate took the subject" with the text "from the actual date of notification of passing score results"; in subsection (b) replace all text "subjects" with the text "sections"; delete subsections (c), (c)(1), (c)(2), (c)(3), and (c)(4); renumber subsection (d) as subsection (c); in new subsection (c) replace the first "subject" with the text "section"; renumber subsection (e) as subsection (d); and replace the word "subjects" with the word "sections" in the new subsection (d).
The adopted amendment will function by reflecting changes made to granting credit for the CPA exam imposed by the computer based exam.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800401
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy (Board) adopts an amendment to §511.82 concerning Application for Transfer of Credits without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9045). The adopted text of the rule will not be republished.
The adopted amendment to §511.82 will in subsection (a)(1) replace the text "graded" with the text "scored"; in subsection (b) replace the following text "It shall be submitted to the executive director, and shall" with the following text "to"; and replace the last use of the text "grades" with the text "scores".
The adopted amendment will function by reflecting changes in the procedure for the transfer of credits imposed by the computer based exam.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800402
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy (Board) adopts an amendment to §511.83 concerning Application of Transfer of Credit without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9046). The adopted text of the rule will not be republished.
The adopted amendment to §511.83 will delete subsection (a); renumber subsection (b) as subsection (a); delete the following text "taken after January 1, 2004," in new subsection (a)(1); replace the text "grade" with the text "score" in new subsection (a)(1); replace the word "subject" with the word "section" in new subsections (a)(1), and (a)(2); renumber subsection (c) as subsection (b) and replace the word "subjects" with the word "sections" in the new subsection (b); renumber subsection (d) as subsection (c); replace the word "subjects" with the word "sections" in the new subsection (c); replace "American Institute of Certified Public Accountants" with "AICPA" and replace "National Association of State Boards of Accountancy" with "NASBA"; insert new sections (d), (e), and (f) with the text "(d) Any candidate allowed conditional credit for sections passed must pass the remaining sections within the next eighteen (18) months from the date conditional credit was awarded or forfeit credit received for the section. (e) Any candidate allowed conditional credit for section(s) passed must pass the remaining section(s) within the next eighteen (18) months from the date conditional credit was awarded for forfeit credit received for the section. (f) Any candidate who has earned the right to partial reexamination and who fails to pass the remaining sections of the examination within the applicable time limits shall lose the right to partial reexamination and must take the entire examination upon later application."
The adopted amendment will function by updating of the rule regarding the transfer of credit for partial completion of the CPA exam to reflect changes imposed by the computer based exam.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800403
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts the repeal of §511.84 concerning Partial Examination after Transfer of Credit without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9047).
The repeal will remove a rule that is no longer relevant.
The repeal will function by the elimination of a rule that is no longer relevant.
No comments were received regarding adoption of the repeal.
The repeal is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800404
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy (Board) adopts an amendment to §511.87 concerning Loss of Credit without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9048). The adopted text of the rule will not be republished.
The adopted amendment to §511.87 will replace the word "examinations" with the phrase "testing windows" in subsection (a) and add the phrase "(See §511.102 of this chapter for the definition of testing window.)" at the end of subsection (a).
The adopted amendment will function by reflecting changes imposed by the computer-based exam regarding loss of credit.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800405
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §511.102 concerning CPA Examination Availability without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9049). The text of the rule will not be republished.
The amendment to §511.102 will: delete subsection (a); delete the following text from subsection (b): "(b) Beginning in 2005, the"; add the word "The" to the beginning of former subsection (b); replace the word "months" with the phrase "testing windows" in former subsection (b); replace "," with "/" between January and February, April and May, July and August, and October in the former subsection (b); delete "and" between October and November and replace the "," between August and October with an "and" in the former subsection (b).
The amendment will function by reflecting changes in examination schedules.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800406
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §511.103 concerning Examination Scheduling without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9049). The text of the rule will not be republished.
The amendment to §511.103 will add the text "by the vendor" in subsection (a).
The amendment will function by clarifying who maintains call centers.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800407
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §511.104 concerning Test Center Locations without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9050). The text of the rule will not be republished.
The amendment to §511.104 will add a new subsection (b) add the following text "The board may require that the CPA exam be discontinued at a test center due to: (1) inadequate staffing; (2) breach in security; or (3) other conditions that are not in compliance with requirements set out by the Board, AICPA or NASBA."; renumber former subsection (b) with subsection (c); in subsection (c) add the following text "All test center locations will conform to the standards established by the Americans with Disabilities Act of 1990."
The amendment will function by explicitly stating the reasons why a test center may be closed as well as a statement that testing centers will conform to the standards established by the Americans with Disabilities Act of 1990.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800408
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §511.105 concerning Test Center Check-In without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9051). The text of the rule will not be republished.
The amendment to §511.105 will insert the following text "such as a valid driver license or unexpired passport," in subsection (a).
The amendment will function by providing examples of what kinds of government issued documents are acceptable at test center check in.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800409
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §511.107 concerning No-Show, Late Arrival and Late Cancellation without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9052). The text of the rule will not be republished.
The amendment to §511.107 will insert the following text "set by the test vendor" and delete the text "of $35.00" in subsection (b)(2).
The amendment will function by establishing who will set the additional fee when a candidate requests a schedule change or a cancellation.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800410
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §511.121 concerning Application for Approval of Experience without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9052). The text of the rule will not be republished.
The amendment to §511.121 will replace the previous language in subsection (b)(1) including "and/or compilation, services" with "services as defined in §501.52(2)"; replace subsection (b)(2) text with the following text "Professional accounting services or professional accounting work as defined in §501.52(21)"; delete subsections (b)(3), (b)(4), (b)(5); in subsection (d) delete the following text "to the executive director".
The amendment will function by clarifying what constitutes acceptable work experience.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800411
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §511.123 concerning Reporting Work Experience without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9054). The text of the rule will not be republished.
The amendment to §511.123 will add a new subsection (a) that states "One year of experience shall consist of full or part-time employment that extends over a period of not less than one year and not more than three years and includes not fewer than 2000 hours of performance of services described in Section 511.122."; renumber the original subsection (a) as subsection (b); delete the former subsection (b) which read" 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."
The amendment will function by stating how many hours of work experience is necessary for candidates seeking a license issued by the Board.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800412
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §511.161 concerning Qualifications for Issuance of a Certificate without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9055). The text of the rule will not be republished.
The amendment to §511.161 will delete the text "successfully completed the Uniform CPA Examination" from the first sentence of the rule.
The amendment will function by establishing a rule without duplicate provisions.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800413
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
Subchapter A. CONTINUING PROFESSIONAL EDUCATION PURPOSE AND DEFINITIONS
The Texas State Board of Public Accountancy adopts the repeal of §523.101, concerning Savings Provisions and Dispositions Table, without changes to the proposal as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9057).
The repeal will remove a rule that is repetitious with §523.131.
The repeal will function by eliminating a redundant rule.
No comments were received regarding adoption of the repeal.
The repeal is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800415
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §523.102, concerning Purpose and Definitions, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9058). The text of the rule will not be republished.
The amendment to §523.102 will replace the original subsection (c) with a new subsection (c) that states: "(c) Licensees may participate in a variety of sponsored learning activities, such as "live classroom programs" or "self-study programs". (1) "Live programs" are those educational processes that are designed to permit a participant to learn a given subject through interaction with an instructor and other participants either in a classroom or conference setting or by using the internet which includes the following: (A) Workshops, seminars, and conferences with substantial interaction by a qualified instructor/facilitator. A sponsor will issue certificates of completion at the end of the class for participants who attended the entire program. (B) "Blended programs or interactive computer programs" include: (i) "Group self-study" programs that are based on self-study materials presented in a group format with substantial interaction from a qualified instructor who is responsible for answering participant's questions or who leads the discussion of individual topics presented in the materials. (ii) "Webinar" is a program that is a web cast and the participants are led by a discussion leader/facilitator that interacts with the web cast instructors. Sponsors will issue certificates of completion at the end of the class. (2) "Self-study programs" provide ongoing feedback for the participant regarding the learning process without substantial interaction of an instructor/facilitator. (A) This type of program clearly defines learning objectives and manages the participant through the learning process by: (i) requiring frequent response to questions that test for understanding of the material presented: providing evaluative feedback to incorrectly answered questions; and (ii) providing evaluative feedback to correctly answered questions. (B) Sponsor will provide a certificate of completion upon successfully passing the final exam. (C) Self-study programs include the following: (i) programs that are taken on the internet individually and involve the participant answering questions that test for understanding the course and passing a final exam to earn credit for the course. A certificate of completion is immediately received once the participant successfully passes the final exam. (ii) courses in which course materials are sent to a participant and after completing the course and the final exam, the participant sends the final exam to the sponsor either electronically or by mail for grading. The sponsor may send the grade either electronically or by mail to the participant."
The amendment will function by clarifying what the board means when it refers to a variety of sponsored learning activities.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800416
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §523.103, concerning Standards for CPE Program Development, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9059). The text of the rule will not be republished.
The amendment to §523.103 will replace the phrase "in areas such as" with the phrase "pertaining to the profession of accounting such as, but not limited to," in subsection (b)(1); delete the phrase "in areas such as" in subsection (b)(1); adds the phrase "but not limited to" in subsection (b)(2); and adds subsection (c) that states: "(c) Staff meetings or other settings that do not include technical issues that enhance a licensee's professional development can not be claimed for CPE credit."
The amendment will function by clarifying what the board expects from courses that increase a CPA's professional competence.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800417
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §523.110, concerning Establishment of Mandatory CPE Program, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9060). The text of the rule will not be republished.
The amendment to §523.110 will delete the phrase "Board Rules and" and add the phrase "Requirements for Licensees" in paragraph (6).
The amendment will function by referencing the new title of another rule.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800418
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §523.111, concerning Mandatory CPE Reporting, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9061). The text of the rule will not be republished.
The amendment to §523.111 will insert the phrase "or retain" and delete the phrase "Board Rules and" and add the phrase "Requirements for Licensees" in subsection (a).
The amendment will function by referencing the new title of another rule.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 29, 2008.
TRD-200800497
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 18, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §523.112, concerning Mandatory CPE Attendance, with changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9061). The changes are new paragraph (5) with the text "A licensee who has been granted exemptions under paragraph (3)(B), (C), (D), and (F) of this rule and no longer qualifies for the exemption or has been granted retired or disabled status under §515.8 of this title and no longer qualifies for retried or disabled status shall be required to report a minimum of 40 CPE hours prior to re-entry into the work force." The text of the rule will be republished.
The amendment to §523.112 will delete the phrases "For all" and "completed after January 1, 2005" and ", this CPE". In paragraph (1)(A) replace the words "twelve month" with the word "license". Insert the phrase "CPE earned prior to the first twelve month license period will not be applied toward the three year requirement." to the end of paragraph (1)(B). In paragraph (3)(A), delete the text "Board Rules and" and insert the phrase "Requirements for Licensees" at the end of paragraph (3)(A). In paragraph (3)(B)(i)(II) add the phrase "professional accounting services or professional". In paragraph (3)(B)(ii) insert the phrase "hours prior to re-entering the workforce.", delete the phrase "Board Rules and." and insert the phrase "Requirements for Licensees". Insert new paragraph (5) with the text "A licensee who has been granted exemptions under paragraph (3)(B), (C), (D), and (F) of this rule and no longer qualifies for the exemption or has been granted retired or disabled status under §515.8 of this title and no longer qualifies for retried or disabled status shall be required to report a minimum of 40 CPE hours prior to re-entry into the work force. Such CPE hours shall be earned in the technical area as described in §523.103 and §523.130 of this title (relating to Standards for CPE Program Development and Ethics Course Requirement for Licensees)."
The amendment will function by providing greater clarity regarding the continuing professional education requirements necessary to maintain or re-activate a license.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
§523.112.Mandatory CPE Attendance.
A licensee shall complete at least 120 hours of CPE in each three-year period, and a minimum of 20 hours in each one-year period. CPE, except as provided by board rule shall be offered by board contracted CPE sponsors. The exception to this requirement is an initial licensee, one who has been certified or registered for less than 12 months.
(1) The exception to the requirement of 120 hours of CPE is an initial licensee, one who is paying the license fee for the first time.
(A) To be issued a license that is less than twelve months from the date of certification or registration, the licensee does not have a CPE hour requirement. The first license period begins on the date of certification and ends with the last day of the licensee's birth month.
(B) To be issued a license for the first full twelve-month license period, the licensee does not have a CPE accrual requirement and can report zero hours. CPE earned prior to the first twelve month license period will not be applied toward the three year requirement.
(C) To be issued a license for the second full twelve-month period, the licensee must report a minimum of 20 CPE hours. The hours must be accrued in the 12 months preceding the license period.
(D) To be issued a license for the third full twelve-month license period, the licensee must report a total of at least 60 CPE hours that were accrued in the 24 months preceding the license period. At least 20 hours of the requirement must be accrued in the 12 months preceding the license period.
(E) To be issued a license for the fourth full twelve-month period, the licensee must report 100 CPE hours that were accrued in the 36 months preceding the license period. At least 20 hours of the requirement must be accrued in the 12 months preceding the license period.
(F) To be issued a license for the fifth and subsequent license periods, the licensee must report a total of at least 120 CPE hours that were accrued in the 36 months proceeding the license period, and at least 20 hours of the requirement must be accrued in the 12 months preceding the license period.
(2) A former licensee whose certificate or registration has been revoked for failure to pay the license fee and who makes application for reinstatement must pay the required fees and penalties and must accrue the minimum CPE credit hours missed.
(3) The board may consider granting an exemption from the CPE requirement on a case-by-case basis if:
(A) a licensee completes and forwards to the board a sworn affidavit indicating that the licensee will not be employed during the period for which the exemption is requested. A licensee who has been granted this exemption and who re-enters the work force shall be required to report prior to re-entering the workforce a minimum of 40 CPE hours. Such CPE hours shall be accrued from the technical area as described in §523.103 and §523.130 of this title (relating to Standards for CPE Program Development and Ethics Course Requirements for Licensees);
(B) a licensee completes and forwards to the board a sworn affidavit indicating no association with accounting work. The affidavit shall include, as a minimum, a brief description of the duties performed, job title, and verification by the licensee's immediate supervisor;
(i) For purposes of this section, the term "association with accounting work" shall include the following:
(I) working or supervising work performed in the areas of financial accounting and reporting; tax compliance, planning or advice; management advisory services; accounting information systems; treasury, finance, or audit; or
(II) representing to the public, including an employer, that the licensee is a CPA or public accountant in connection with the sale of any services or products involving professional accounting services or professional accounting work, including such designation on a business card, letterhead, promotional brochure, advertisement, or office; or
(III) offering testimony in a court of law purporting to have expertise in accounting and reporting, auditing, tax, or management services; or
(IV) for purposes of making a determination as to whether the licensee fits one of the categories listed in this subclause and subclauses (I) - (III) of this clause, the questions shall be resolved in favor of including the work as an "association with accounting work."
(ii) A licensee who has been granted this exemption and who loses the exemption shall accrue 40 CPE hours prior to re-entering the workforce. Such CPE hours shall be earned in the technical area as described in §523.103 and §523.130 of this title (relating to Standards for CPE Program Development and Ethics Course Requirements for Licensees).
(C) a licensee not residing in Texas, who submits a sworn statement to the board that the licensee does not serve Texas clients from out of state;
(D) a licensee shows reasons of health, certified by a medical doctor, that prevent compliance with the CPE requirement. A licensee must petition the board for the exemption and provide documentation that clearly establishes the period of disability and the resulting physical limitations;
(E) a licensee is on extended active military duty during the period for which the exemption is requested, and files a copy of orders to active military duty with the board; or
(F) a licensee shows reason which prevents compliance that is acceptable to the board.
(4) A licensee who has been granted the retired or disabled status under §515.8 of this title (relating to Retirement Status or Permanent Disability) is not required to report any CPE hours.
(5) A licensee who has been granted exemptions under paragraph (3)(B), (C), (D), and (F) of this rule and no longer qualifies for the exemption or has been granted retired or disabled status under §515.8 of this title and no longer qualifies for retired or disabled status shall be required to report a minimum of 40 CPE hours prior to re-entry into the workforce. Such CPE hours shall be earned in the technical area as described in §523.103 and §523.130 of this title (relating to Standards for CPE Program Development and Ethics Course Requirements for Licensees).
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800419
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §523.114, concerning Disciplinary Actions Relating to CPE, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9063). The text of the rule will not be republished.
The amendment to §523.114 will delete the phrase "Board Rules and" before the text "Ethics Course" and after the text "Ethics Course" insert the following phrase "Requirements for Licensees" in subsection (a). After the text "§523.111 of this title" insert the following text "relating to Mandatory CPE Reporting". After text "§523.112 of this title" insert the following text "relating to Mandatory CPE Attendance". In subsection (d) delete the following text "Public Accountancy".
The amendment will function by providing greater clarity regarding the persons'/licensees' requirements to complete and document mandatory continuing professional education participation or face disciplinary actions.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800420
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §523.115, concerning Credits for Instructors and Discussion Leaders, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9064). The text of the rule will not be republished.
The amendment to §523.115 will divide the existing §523.115 text so each sentence will now be placed in its own respective subsection from (a) - (d) and add an additional subsection (e) with text "Instructors cannot claim credit for teaching entry level accounting courses.
The amendment will function by providing greater clarity regarding the continuing professional education requirements necessary to maintain a license for a CPA who is a continuing professional education instructor or discussion leader.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800421
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §523.116, concerning Credits for Published Articles and Books, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9064). The text of the rule will not be republished.
The amendment to §523.116 will replace in the title the following words "Credits for" with the words "Authors of". Also, insert the following text "Authors of published articles and books may claim" before the following text "CPE credit hours". Delete the following text "may be claimed for published articles and books".
The amendment will function by providing greater clarity regarding the continuing professional education requirements and credit for their published works for those CPAs who are published authors.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800422
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §523.117, concerning Minimum Hours Required Per CPE Reporting Period as a Participant, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9065). The text of the rule will not be republished.
The amendment to §523.117 will insert the text "program." after the following text "participant in a qualified CPE". Add the phrase "To qualify the hours must be from" after "program". Delete the word "in". Delete the following text "of the requirement"; replace the word "title" with the word "chapter", after the first "title" insert the text "relating to Credits for Instructors and Discussion Leaders)"; after the second "title" replace "Credits for Instructors and Discussion Leaders and Credits for Writers" with "Authors of".
The amendment will function by provide greater clarity regarding the requirements to maintain a license.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800423
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §523.118, concerning Limitation for Non-Technical Courses, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9066). The text of the rule will not be republished.
The amendment to §523.118 will delete the following text "CPE credit hours may be claimed for non-technical courses limited to not more than 20 credit hours in the reporting period" and insert the following text "A licensee may not claim more than fifty percent of the total CPE credit hours required from the non-technical area in any reporting period".
The amendment will function by providing greater clarity regarding the continuing professional education requirements and the board's emphasis on technical knowledge, competence, and proficiency.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800424
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §523.119, concerning Alternative Sources of CPE, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9067). The text of the rule will not be republished.
The amendment to §523.119(a)(6) will delete the following text "National Association of Accountants' Management Accounting Practices Committee"; renumber the remaining subsections under section (a), so the former subsection (a)(7) becomes subsection (a)(6), and the former (a)(8) becomes subsection (a)(7). In subsection (b) replace the following text "must receive prior approval before credit may be claimed." with the following text "should be claimed at the time the license renewal is submitted on the appropriate form "Claiming Credit from a Non-Registered Sponsor" justifying the reason the CPE credit hours are being claimed.". Add the following subsection (c) with the following phrase "Licensees may not claim more than fifty percent of their hours from non-registered sponsors."
The amendment will function by clarifying the continuing professional education requirements necessary to maintain a license.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800425
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §523.120, concerning Standards for CPE Reporting, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9068). The text of the rule will not be republished.
The amendment to §523.120(a)(1) will add the following text "name and identification number" after the text "sponsor".
The amendment will function by providing greater clarity regarding the continuing professional education reporting requirements.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800426
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §523.121, concerning CPE for non-CPA Owners, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9068). The text of the rule will not be republished.
The amendment to §523.121 will delete the following text "Board Rules and" in subsection (c). In subsection (c) after the text "Ethics Course" add the following text "Requirements for Licensees".
The amendment will function by providing greater clarity regarding the existence of non-CPA Owners and their continuing professional education requirements.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800427
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §523.130 concerning Board Rules and Ethics Course without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9069). The text of the rule will not be republished.
The amendment to §523.130 will delete the text "Board Rules and" and insert the following text "Requirements for Individuals" in rule name. Delete subsection (b). Renumber subsection (c) to subsection (b) and replace the following text "Beginning on January 1, 2005, every" with the text "A" at the beginning of subsection (b). Delete the following text "after January 1, 2005" from subsection (b). Delete subsection (d). Renumber subsection (e) with subsection (c). In subsection (c) replace "individual" with the word "licensee." In subsection (c) replace the phrase "certificate or registration holder" with "licensee". In subsection (c) add the following text "annual" before the following text "license renewal notice if due." Renumber subsection (f) with subsection (d) and in subsection (d) replace the text "certificate or registration holder" with the following text "licensee". Also in subsection (d) replace the following text "an interactive computer-based" with the following word "a" and replace "(b)(5)" with "(c)(1)". Renumber subsection (g) with (e). In subsection (e) replace the following text "certificate or registration holder" with "person". Delete subsection (h). Delete the Attached Graphic Figure: 22 TAC §523.130(h).
The amendment will function by providing greater clarity regarding the ethics course requirements necessary to maintain a license.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800428
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §523.131 concerning Board Approval of Ethics Course Content after January 1, 2005 without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9070). The text of the rule will not be republished.
The amendment to §523.131 will delete "after January 1, 2005" from the rule name, add the text "The" to the beginning of subsection (a). In subsection (a) delete the following text "Effective January 1, 2005 the" , "Board Rules and", and "Course content shall be approved only after the developer of the course demonstrates the course meets the following objectives." Insert the text "Requirements for Licensees", "CPE committee of the", "for initial approval and upon request thereafter. The primary objectives of the Ethics Course shall be to:" Insert new subsections (a)(1), (a)(2), (a)(3), (a)(4), (a)(5), (a)(5)(A), (a)(5)(B), and (a)(5)(C) with the following text (1) encourage the licensee to become educated in the ethics of the profession; (2) convey the intent of the Board's Rules of Professional Conduct in the licensee's performance of professional accounting services or professional accounting work, and not mere technical compliance, (3) apply ethical judgment in interpreting the rules and determining the public interest. The public interest should be placed ahead of self-interest, even if it means a loss of job or client, (4) emphasize the ethical standards of the profession, as described in this section; and (5) review and discuss the Board's Rules of Professional Conduct and their implications for persons in a variety of practices, including (A) a licensee engaged in the client practice of public accountancy who performs attest and non-attest services, as defined in §501.52 of this title (relating to Definitions); (B) a licensee holder employed in industry who provides internal accounting and auditing services; and (C) a licensee employed in education or in government accounting or auditing. Delete former subsection (a)(1) "the course shall be designed to teach CPAs to achieve and maintain the highest standards of ethical conduct through ethical reasoning;" delete former subsection (a)(2) "the course shall be designed to teach the core values of the profession: integrity, objectivity and independence, as ethical principles in addition to rules of conduct;" delete former subsection (a)(3) "the course shall be designed to teach compliance with the spirit and intent of the board's Rules of Professional Conduct, in addition to technical compliance with the Rules; and". Delete former (a)(4) "the course shall address ethical considerations and the application of the board's Rules of Professional Conduct to all aspects of professional accounting work whether performed by CPAs in client practice or CPAs who are not in client practice." In subsection (b)(4) insert the word "sufficient"; In subsection (c) replace the text "To be approved, the course must be taught in either a live instructor format or a computer-based interactive format, as defined in §523.101(b)(5) of this title (relating to CPE Purpose and Definitions). with the text "Course content shall be approved only after demonstrating, either in a live instructor format or a blended program format or interactive (computer based) format, as defined in §523.102(c)(1) of this title (relating to CPE Purpose and Definitions), that the course contains the underlying intent established in the following criteria: (1) the course shall be designed to teach CPAs to achieve and maintain the highest standards of ethical conduct through ethical reasoning and the core values of the profession: integrity, objectivity and independence, as ethical principles in addition to rules of conduct; (2) the course shall address ethical considerations and the application of the Board's Rules of Professional Conduct to all aspects of the professional accounting work whether performed by CPAs in client practice or CPAs who are not in client practice; and (3) the course shall convey the spirit and intent of the Board's Rules of Professional Conduct in the licensee's performance of accounting services or professional accounting work, and not mere technical compliance." At the beginning of subsection (d) replace the words "Each ethics course approved pursuant to this section will" with the words "Ethics Courses may". At the beginning of subsection (e) replace the phrase "As a part of each course" with the phrase "At the conclusion of each course," the sponsor shall administer a test to determine whether the program participants have obtained a basic understanding of the course content, including the need for a high level of ethical standards in the accounting profession.
The amendment will function by clarifying the ethics course content requirements.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800429
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy (Board) adopts the repeal of §523.133 concerning Course Content and Board Approval without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9073).
The adopted repeal will remove a rule that is no longer relevant.
No comments were received regarding adoption of the repeal.
The repeal is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800430
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy (Board) adopts an amendment to §523.140 concerning Program Standards, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9074). The adopted text of the rule will not be republished.
The adopted amendment to §523.140 will replace the sentence "The stated program objectives should clearly communicate the specific concepts and skills the program will transfer to persons completing it." with the following sentences "The sponsor "program" must clearly state in the course materials, registration materials and advertisements related to the course, the objectives, prerequisites, experience level, content, advance preparation, teaching method(s), and recommended credit hours. Sponsors are responsible for distributing accurate information about their programs." in subsection (a); add paragraph (1) with the following statements "The stated learning objectives should clearly communicate the specific concepts and skills the program will transfer to persons completing it."; renumber subsection (b) to paragraph (2): replace the word "should" with the word "must" in paragraph (2); add a new subsection "(b)" which states "The program developer must organize the program around the stated learning objectives. The course materials must be periodically reviewed to assure that they are accurate and consistent with currently accepted standards relating to the program's subject matter."; add paragraph (1) that reads "The program developer should provide the instructor with separate materials that emphasize sections of the course that need reinforcement, if appropriate;"; add paragraph (2) which reads "The program developer should provide materials for the participants that explain the learning objective in detail."; replace the phrase "A program developer" with the word "Instructors" in subsection (c); replace the text "The program developer must review the course materials periodically to assure that they are accurate and consistent with currently accepted standards relating to the program's subject matter. Between these reviews, errata sheets should be issued where appropriate and obsolete materials should be deleted. Between the time a new pronouncement is issued and the issuance of errata sheets or removal of obsolete materials, the instructor is responsible for informing participants of changes." with the new text "Course material should be reviewed by a qualified party other than the preparer(s) to ensure compliance with the provisions of these sections and with high standards of content and instructional design. In case of short or once only programs, more reliance may be placed on the competence of the presenter." in subsection (d); replace the text "Course material should be reviewed by a qualified person(s) other than the preparer(s) to ensure compliance with the provisions of these sections and with high standards of content and instructional design. In the case of short or once only programs, more reliance may be placed on the competence of the presenter." with the text "All programs must provide for some means to evaluate both the competence of the instructor and the course material. Refer to §523.141 of this title (relating to Evaluation)." in subsection (e); replace the text "Participants should be informed in advance of objectives, prerequisites, experience level, content, advance preparation, teaching method(s), and recommended credit hours. After January 1, 2005, an ethics course not approved by the board under §523.131 of this title (relating to Board Approval of Ethics Course Content after January 1, 2005) must clearly state in the course materials, registration materials and any advertisements related to the course that it is not approved for ethics credit pursuant to §523.131 of this title and the course will not satisfy the ethics course requirements of §523.130 of this title (relating to Board Rules and Ethics Course). Sponsors are responsible for distributing accurate information about their programs." with the text "Self-study programs must conform to the requirements outlined in §523.102(c)(2) of this title (relating to CPE Purpose and Definitions)." in subsection (f); replace the text "Instructors must be qualified both with respect to program content and teaching methods used. Sponsors should evaluate the performance of instructors at the conclusion of each program to determine their suitability for continuing to serve as instructors. After January 1, 2005, the sponsor of an ethics course taught by an instructor who is not under contract with the board pursuant to §523.132 of this title (relating to Board Contracted Ethics Instructors after January 1, 2005) must clearly state in the course materials, registration materials and any advertisements related to the course that the instructor is not a board contracted ethics instructor under §523.132 of this title and the course will not satisfy the ethics course requirements of §523.130 of this title (relating to Board Rules and Ethics Course)." with the text "Sponsors are responsible for ensuring the participants register their attendance during the program. The sponsor is responsible for assigning the appropriate number of credit hours for participants, including reduced hours for those participants who arrive late or leave early. Refer to §523.142 of this tile (relating to Time Credit Measurement)." in subsection (g); and replace "Sponsors should comply with the standard by encouraging: (1) enrollment only by eligible participants; (2) timely distribution of materials; (3) completion of any advance preparation; and (4) assigning the appropriate number of credit hours for participants who arrive late or leave before a program is completed. The number of participants and physical facilities should be consistent with the teaching method(s) specified. The learning environment is affected by the number of participants and by the quality of the physical facilities. Sponsors have an obligation to pay serious attention to these two factors. The maximum number of participants for a case-oriented discussion program should be considerably less than for a lecture program. Class size, quality of facilities, and seating arrangements are integral and important aspects of the educational environment and should be carefully controlled." with the text "Sponsors must comply with all CPE rules including §523.143 of this title (relating to Sponsor's Record)." in subsection (h).
The adopted amendment will function by providing clarity regarding the ethics course program standards.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800431
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy (Board) adopts an amendment to §523.141, concerning Evaluation, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9076). The adopted text of the rule will not be republished.
The adopted amendment to §523.141 will replace the phrase "take the form of:" with the phrase "consist of evaluation forms or questionnaires upon completion of the program."; and delete subsections (b)(1), (b)(2), and (b)(3); add subsection (d) with the sentence "(d) Sponsors are responsible for collecting evaluation forms from CPA participants."
The adopted amendment will function by providing clarity regarding the ethics course evaluations and questionnaires.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800432
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy (Board) adopts an amendment to §523.142, concerning Program Time Credit Measurement, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9077). The adopted text of the rule will not be republished.
The adopted amendment to §523.142 will delete the phrase "The shortest recognized program should consist of one contact hour." in subsection (a); delete the word "group" in subsection (a); replace the sentence "Under this standard, a credit hour is granted only for each contact hour" with the sentence "One-half CPE credit increments (equal to 25 minutes) are permitted after the first contact hour has been earned in a given learning activity" in subsection (a).
The adopted amendment will function by providing clarity regarding the program length requirements.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800433
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy (Board) adopts an amendment to §523.143, concerning Sponsor's Record, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9078). The adopted text of the rule will not be republished.
The adopted amendment to §523.143 will add the letter "(b)" to the reference "§523.141" in paragraph (7).
The adopted amendment will function by providing greater clarity regarding the continuing professional education sponsor's record requirements.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800434
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy (Board) adopts an amendment to §523.144, concerning Board Registered CPE Sponsors, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9078). The adopted text of the rule will not be republished.
The adopted amendment to §523.144 will delete the phrase "after January 1, 2005" in the rule's title; delete the phrase "Board Rules and" from subsection (a)(2); add the phrase "Requirements for Licensees" to subsection (a)(2); delete the phrase "To implement the program initially, sponsors previously registered with the board will be assigned an initial registration term based on the month of their current registration" from subsection (f); replace the word "Chapter" with the word "title" and add the phrase "relating to Sponsor Review Program" after the text "523.147 of this title" in subsection (i).
The adopted amendment will function by providing greater clarity regarding the requirements for a board registered continuing professional education sponsor.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800435
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy (Board) adopts an amendment to §523.145 concerning Obligations of the Sponsor without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9079). The adopted text of the rule will not be republished.
The adopted amendment to §523.145 will add a new subsection (a) to read "(a) Sponsors must comply with the program standards as stated in §523.140 of this title (relating to Program Standards."; subsection (a) will be renumbered to subsection (b); replace the word "persons" with the word "parties" in subsection (b)(3); renumber subsection (b) to subsection (c); and delete the sentence "Sponsor reviews will not commence until after June 1, 2005." in subsection (c).
The adopted amendment will function by providing greater clarity regarding the obligations of a continuing professional education program sponsor.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800436
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy (Board) adopts an amendment to §523.147, concerning Sponsor Review Program, without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9080). The adopted text of the rule will not be republished.
The adopted amendment to §523.147 will add the phrase "comply with all applicable Board rules including §523.102 of this title (relating to CPE Purpose and Definitions), §523.103 of this title (relating to Standards for CPE Program Development), and this subchapter".
The adopted amendment will function by providing greater clarity and awareness of the sponsor review program designed to ensure that CPE sponsors comply with board mandated requirements.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800437
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts an amendment to §525.1 concerning Applications for the Uniform CPA Examination, Issuance of the CPA Certificate, or a License without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9081). The text of the rule will not be republished.
The amendment to §525.1 will delete ", or Renewal of a License for Individual with Criminal Backgrounds" from the title; replace the words "shall not examine" with "may deny"; replace "CPA candidate" with the phrase "candidate's application to take the CPA exam for a period not to exceed five years from the date of application, and shall not" in subsection (a), deleted the phrase "which results in incarceration" and add the word "or"; from subsection (a); replace the words "not examine a CPA candidate" with "deny a candidates' application to take the CPA exam, the application to", delete the phrase "or renew a license," in subsection (b); delete the words "provided by accountants" from subsection (b)(2); replace the word "person" for the word "individual" and delete the word "and" in subsection (b)(3); insert a new paragraph (5) that states "fraud or dishonesty as an element of the offense; and"; insert a new paragraph (6) that states "all conduct indicating a lack of fitness to serve the public as a professional accountant;" replace the phrase "sit for" with the word "take" in subsection (e); delete the phrases "initial examination" and on those reexamination candidates" in subsection (e)(2); replace the word "scores" for the formerly used word "grades" and replace the word "take" for the formerly used words "sit for" in subsection (e)(3); insert a new subsection (f) that states "A candidate that has not been permitted to take the CPA exam as a result of having been convicted of a felony offense must provide evidence of rehabilitation upon rehabilitation as the board may request"; renumber the original subsections (f), (f)(1), (f)(2), and (f)(3) as subsections (g), (g)(1), (g)(2), and (g)(3). Delete subsection (g) and (h) and incorporate in new rule.
The amendment will function by clarifying the board's options when considering applications for the Uniform CPA Examination, issuance of the CPA certificate, a license, or renewal of a license for individuals with criminal backgrounds and provides notice of what the board expects from those applicants.
No comments were received regarding adoption of the rule.
The amendment is adopted 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 the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800438
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848
The Texas State Board of Public Accountancy adopts new rule §525.2 concerning Renewal of a License for Individuals with Criminal Backgrounds without changes to the proposed text as published in the December 7, 2007, issue of the Texas Register (32 TexReg 9083). The text of the rule will not be republished.
The new rule adoption of the proposed new rule will make it easier for the Board to become aware of any criminal conviction against a license holder, thereby facilitating investigations into possible violations of the board's rules and the Texas Public Accountancy Act.
The new rule will function by requiring a license holder to report any criminal conviction at the time of renewal, thereby facilitating investigations into possible violations of the board's rules and the Texas Public Accountancy Act.
No comments were received regarding adoption of the rule.
The new rule is adopted 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 and repeal rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January 28, 2008.
TRD-200800440
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: February 17, 2008
Proposal publication date: December 7, 2007
For further information, please call: (512) 305-7848