Part 22. TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY
Chapter 523. CONTINUING PROFESSIONAL EDUCATION
Subchapter C. ETHICS RULES: INDIVIDUALS AND SPONSORS
The Texas State Board of Public Accountancy (Board) proposes an amendment to §523.132, concerning Board Contracted Ethics Instructors after January 1, 2005.
The amendment to §523.132 will delete "after January 1, 2005" from the title of the section; add the text "The" to the beginning of subsection (a); delete the following text "Effective January 1, 2005, the" and "after January 1, 2005" from subsection (a); in subsection (a)(1) after the text "Texas" insert the following text "or that the instructor is team teaching with a certified public accountant licensed in Texas" and delete the following text "within the last three years or"; in subsection (b)(1) delete the following text "or by June 30, 2005, whichever is later,"; in subsection (b)(5) delete the text "Public Accountancy"; add new subsection (d) with the following text "An instructor must submit a current resume with the contract."; and reletter subsection (d) as subsection (e).
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be zero because the amendment does not require the state to do anything.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
Mr. Treacy has determined that for the first five-year period the amendment is in effect the public benefits expected as a result of adoption of the proposed amendment will be greater clarity regarding the requirements for ethics course instructors.
The probable economic cost to persons required to comply with the amendment will be zero.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
The Board requests comments on the substance and effect of the proposed amendment from any interested person. Comments must be received at the Board no later than noon on March 24, 2008. Comments should be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe Street, Tower 3, Suite 900, Austin, Texas 78701 or faxed to his attention at (512) 305-7854.
The Board specifically invites comments from the public on the issues of whether or not the proposed amendment will have an adverse economic effect on small business; if the amendment is believed to have such an effect, then how may the Board legally and feasibly reduce that effect considering the purpose of the statute under which the amendment is to be adopted; and if the amendment is believed to have such an effect, how the cost of compliance for a small business compares with the cost of compliance for the largest business affected by the amendment under any of the following standards: (a) cost per employee; (b) cost for each hour of labor; or (c) cost for each $100 of sales. See Texas Government Code, §2006.002(c).
The amendment is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§523.132.Board Contracted Ethics Instructors [ after January 1, 2005 ].
(a)
The
[
Effective January 1, 2005, the
] board may contract with any instructor wishing to offer
an ethics course approved by the board pursuant to §523.131 of
this title (relating to Board Approval of Ethics Course Content [
after January 1, 2005
]) who can demonstrate that:
(1) the instructor is a certified public accountant licensed in Texas
or that the instructor is team teaching with
a certified public accountant licensed in Texas
and has completed the board's ethics training program [
within the last three years or
] as required by the board;
(2) - (3) (No change.)
(b) An instructor demonstrates that he is qualified to teach ethical reasoning upon proof that he has:
(1) at the time of application [
or by June 30, 2005, whichever is later,
] obtained education in ethics substantially
equivalent to a minimum of 6 hours of credit from an accredited University,
College or Community College, of which at least three hours must be
in organizational ethics;
(2) - (4) (No change.)
(5) goals and interests consistent with the board's
purpose of protecting the public interest pursuant to the provisions
of the [
Public Accountancy
] Act.
(c) (No change.)
(d) An instructor must submit a current resume with the contract.
(e)
[
(d)
] Interpretive comments:
To have goals and interests consistent with the board's purpose of
protecting the public interest pursuant to the provisions of the Public
Accountancy Act an instructor must refrain from using the instruction
of an ethics course as a marketing tool for other products and services
offered by the instructor. An instructor must be free from conflicts
of interest with the board in both fact and appearance. Representation
of a respondent or a complainant in a disciplinary proceeding pending
before the board creates the appearance of a conflict of interest.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on February 11, 2008.
TRD-200800803
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: March 23, 2008
For further information, please call: (512) 305-7848