Amend HB 3155 as follows:
(1) On page 1601, strike line 15 and substitute the
following:
CHAPTER 901. ACCOUNTANTS SUBCHAPTER A. GENERAL PROVISIONS
Sec. 901.001. SHORT TITLE
Sec. 901.002. GENERAL DEFINITIONS
Sec. 901.003. PRACTICE OF PUBLIC ACCOUNTANCY
Sec. 901.004. CONSTRUCTION; LIMITATIONS
Sec. 901.005. PUBLIC POLICY; PURPOSE
Sec. 901.006. APPLICATION OF SUNSET ACT
Sections 901.007-901.050 reserved for expansion
SUBCHAPTER B. TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY
Sec. 901.051. BOARD MEMBERSHIP
Sec. 901.052. ELIGIBILITY OF PUBLIC MEMBERS
Sec. 901.053. MEMBERSHIP AND EMPLOYEE RESTRICTIONS
Sec. 901.054. TERMS
Sec. 901.055. OFFICERS; EXECUTIVE COMMITTEE
Sec. 901.056. GROUNDS FOR REMOVAL
Sec. 901.057. PER DIEM; REIMBURSEMENT
Sec. 901.058. MEMBER EQUALITY
Sections 901.059-901.100 reserved for expansion
SUBCHAPTER C. EXECUTIVE DIRECTOR AND OTHER
BOARD PERSONNEL
Sec. 901.101. EXECUTIVE DIRECTOR AND PERSONNEL
Sec. 901.102. DIVISION OF RESPONSIBILITIES
Sec. 901.103. QUALIFICATIONS AND STANDARDS OF CONDUCT
INFORMATION
Sec. 901.104. CAREER LADDER PROGRAM; PERFORMANCE
EVALUATIONS
Sec. 901.105. EQUAL EMPLOYMENT OPPORTUNITY POLICY; REPORT
Sections 901.106-901.150 reserved for expansion
SUBCHAPTER D. BOARD POWERS AND DUTIES
Sec. 901.151. GENERAL POWERS AND DUTIES OF BOARD
Sec. 901.152. ADVISORY COMMITTEES
Sec. 901.153. ENFORCEMENT COMMITTEES
Sec. 901.154. FEES
Sec. 901.155. SCHOLARSHIP FUND ACCOUNT FOR FIFTH-YEAR
ACCOUNTING STUDENTS
Sec. 901.156. RULES OF PROFESSIONAL CONDUCT
Sec. 901.157. RULES FOR SPECIALIZATION
Sec. 901.158. RULES RESTRICTING ADVERTISING OR
COMPETITIVE BIDDING
Sec. 901.159. QUALITY REVIEW
Sec. 901.160. AVAILABILITY AND CONFIDENTIALITY OF
CERTAIN BOARD FILES
Sec. 901.161. PRIVILEGE FOR CERTAIN INFORMATION
Sec. 901.162. IMMUNITY FROM LIABILITY
Sec. 901.163. STATISTICAL ANALYSIS OF COMPLAINTS
Sec. 901.164. ANNUAL FISCAL REPORT
Sections 901.165-901.200 reserved for expansion
SUBCHAPTER E. PUBLIC INTEREST INFORMATION AND
COMPLAINT PROCEDURES
Sec. 901.201. PUBLIC INTEREST INFORMATION
Sec. 901.202. COMPLAINTS
Sec. 901.203. COMPLAINT INFORMATION
Sec. 901.204. PUBLIC PARTICIPATION
Sections 901.205-901.250 reserved for expansion
SUBCHAPTER F. CERTIFICATE REQUIREMENTS
Sec. 901.251. CERTIFICATE REQUIRED
Sec. 901.252. ELIGIBILITY REQUIREMENTS
Sec. 901.253. CHARACTER INVESTIGATION
Sec. 901.254. EDUCATION REQUIREMENTS
Sec. 901.255. SPECIAL EDUCATION REQUIREMENTS FOR
PART-TIME STUDENT
Sec. 901.256. WORK EXPERIENCE REQUIREMENTS
Sec. 901.257. OATH AND CERTIFICATE FEE
Sec. 901.258. TRANSFER OF COMPLETE EXAMINATION CREDIT
BETWEEN STATES
Sec. 901.259. CERTIFICATION BASED ON RECIPROCITY
Sections 901.260-901.300 reserved for expansion
SUBCHAPTER G. UNIFORM CPA EXAMINATION
Sec. 901.301. ADMINISTRATION; BOARD RULES
Sec. 901.302. APPLICATION OF INTENT
Sec. 901.303. FILING FEE
Sec. 901.304. EXAMINATION FEE
Sec. 901.305. FREQUENCY OF EXAMINATION
Sec. 901.306. CONTENT AND SECURITY OF EXAMINATION
Sec. 901.307. MINIMUM PASSING GRADE
Sec. 901.308. EXAMINATION RESULTS
Sec. 901.309. REEXAMINATION
Sec. 901.310. CONDITIONAL EXAMINATION CREDIT
Sec. 901.311. RESTRUCTURE OF EXAMINATION
Sec. 901.312. TRANSFER OF PARTIAL EXAMINATION CREDIT BETWEEN
STATES
Sections 901.313-901.350 reserved for expansion
SUBCHAPTER H. REGISTRATION REQUIREMENTS
Sec. 901.351. REGISTRATION REQUIRED
Sec. 901.352. APPLICATION FOR REGISTRATION
Sec. 901.353. RESIDENT MANAGER
Sec. 901.354. REGISTRATION INFORMATION AND ELIGIBILITY
Sec. 901.355. REGISTRATION FOR CERTAIN OUT-OF-STATE OR
FOREIGN APPLICANTS
Sec. 901.356. TEMPORARY PRACTICE PERMIT FOR CERTAIN
OUT-OF-STATE OR FOREIGN APPLICANTS
Sections 901.357-901.400 reserved for expansion
SUBCHAPTER I. LICENSE REQUIREMENTS,
ISSUANCE, AND RENEWAL
Sec. 901.401. LICENSE REQUIRED
Sec. 901.402. ELIGIBILITY REQUIREMENTS; GENERAL
PROHIBITION
Sec. 901.403. RENEWAL REQUIRED
Sec. 901.404. NOTICE OF LICENSE EXPIRATION
Sec. 901.405. PROCEDURE FOR RENEWAL
Sec. 901.406. FEE INCREASE
Sec. 901.407. ADDITIONAL FEE
Sec. 901.408. CONSEQUENCE OF FAILURE TO PAY CERTAIN FEES
Sec. 901.409. FEE REDUCTION FOR RETIRED OR DISABLED PERSONS
Sec. 901.410. FEE EXEMPTION FOR CERTAIN LICENSE HOLDERS
Sec. 901.411. CONTINUING PROFESSIONAL EDUCATION
Sections 901.412-901.450 reserved for expansion
SUBCHAPTER J. PRACTICE BY LICENSE HOLDER
Sec. 901.451. USE OF TITLE OR ABBREVIATION FOR "CERTIFIED
PUBLIC ACCOUNTANT"
Sec. 901.452. USE OF TITLE OR ABBREVIATION FOR "PUBLIC
ACCOUNTANT"
Sec. 901.453. USE OF OTHER TITLES OR ABBREVIATIONS
Sec. 901.454. TITLE USED BY CERTAIN OUT-OF-STATE OR FOREIGN
ACCOUNTANTS
Sec. 901.455. NAME REQUIREMENTS AND RESTRICTIONS
Sec. 901.456. USE OF NAME OR SIGNATURE ON CERTAIN
DOCUMENTS
Sec. 901.457. ACCOUNTANT-CLIENT PRIVILEGE
Sec. 901.458. LOSS OF INDEPENDENCE
Sec. 901.459. APPLICABILITY OF PARTNERSHIP REQUIREMENTS TO
PARTNER
Sections 901.460-901.500 reserved for expansion
SUBCHAPTER K. PROHIBITED PRACTICES AND
DISCIPLINARY PROCEDURES
Sec. 901.501. DISCIPLINARY POWERS OF BOARD
Sec. 901.502. GROUNDS FOR DISCIPLINARY ACTION
Sec. 901.503. BOARD ACTION INVOLVING APPLICANT
Sec. 901.504. LICENSE REVOCATION BASED ON VIOLATION OF
CHAPTER
Sec. 901.505. PROCEDURE PENDING FINAL CONVICTION OF CERTAIN
OFFENSES
Sec. 901.506. VOLUNTARY SURRENDER OF CERTIFICATE OR
REGISTRATION
Sec. 901.507. REINSTATEMENT
Sec. 901.508. RIGHT TO HEARING
Sec. 901.509. NOTICE OF HEARING
Sec. 901.510. LEGAL REPRESENTATION AT HEARING
Sections 901.511-901.550 reserved for expansion
SUBCHAPTER L. ADMINISTRATIVE PENALTY
Sec. 901.551. IMPOSITION OF ADMINISTRATIVE PENALTY
Sec. 901.552. AMOUNT OF PENALTY
Sec. 901.553. REPORT AND NOTICE OF VIOLATION AND PENALTY
Sec. 901.554. PENALTY TO BE PAID OR HEARING REQUESTED
Sec. 901.555. HEARING
Sec. 901.556. OPTIONS FOLLOWING DECISION: PAY OR APPEAL
Sec. 901.557. COLLECTION OF PENALTY
Sec. 901.558. REMITTANCE OF PENALTY AND INTEREST
Sections 901.559-901.600 reserved for expansion
SUBCHAPTER M. OTHER PENALTIES
AND ENFORCEMENT PROVISIONS
Sec. 901.601. INJUNCTION
Sec. 901.602. CRIMINAL PENALTY
+zCHAPTER 901. ACCOUNTANTS@z
+zSUBCHAPTER A. GENERAL PROVISIONS@z
+zSec. 901.001. SHORT TITLE@z. (a) This chapter may be cited
as the Public Accountancy Act.
(b) A reference in law to the Public Accountancy Act of 1979
or the Public Accountancy Act of 1991 means this chapter.
(V.A.C.S. Art. 41a-1, Secs. 1A, 29(b).)
+zSec. 901.002. GENERAL DEFINITIONS@z. (a) In this chapter:
(1) "Board" means the Texas State Board of Public
Accountancy.
(2) "Certificate" means a certificate issued to a
certified public accountant.
(3) "Certified public accountant" means a person who
holds a certificate issued under this chapter.
(4) "Corporation" means a corporation authorized by a
statute applicable to this state or by an equivalent law of another
state or a foreign country, including a professional public
accounting corporation organized under The Texas Professional
Corporation Act (Article 1528e, Vernon's Texas Civil Statutes).
(5) "Firm" means a sole proprietorship, partnership,
corporation, or other business entity engaged in the practice of
public accountancy.
(6) "Practice unit" means an office of a firm that is
required to be registered with the board to practice public
accountancy.
(7) "Public accountant" means a person authorized to
practice public accountancy under the Public Accountancy Act of
1945 (Article 41a, Vernon's Texas Civil Statutes).
(8) "Sole proprietorship" means an unincorporated firm
that is owned and controlled by one person engaged in the practice
of public accountancy.
(b) The board by rule may define "financial statement" to
comply with the standards adopted by generally recognized bodies
responsible for setting accounting standards. (V.A.C.S.
Art. 41a-1, Secs. 2(a)(1), (3), (5), (7), (8), (b); 10(a) (part);
New.)
+zSec. 901.003. PRACTICE OF PUBLIC ACCOUNTANCY@z. (a) In this
chapter, "practice of public accountancy" means:
(1) the performance for a client by a person who is
certified or registered under this chapter of a service that
involves the use of accounting, attesting, or auditing skills;
(2) the performance or offer of performance for a
client or potential client by a person who represents to the public
that the person is certified or registered under this chapter of a
service that involves the use of accounting, attesting, or auditing
skills;
(3) the performance of activities of a person or
practice unit licensed under this chapter in:
(A) preparing or reporting on a financial
statement or report that is to be used by an investor, unless the
report is prepared for internal use by the management of an
organization, a third party, or a financial institution; or
(B) preparing a tax return that is filed with a
taxing authority; or
(4) the supervision of an activity described by
Subdivision (3).
(b) For purposes of this section, a service that involves
the use of accounting, attesting, or auditing skills includes:
(1) issuing a report on or preparing a financial
statement;
(2) providing management or financial advisory or
consulting services; and
(3) preparing a tax return or advising or consulting
on a tax matter.
(c) For purposes of this section, a person represents to the
public that the person is certified or registered under this
chapter if the person makes an oral or written representation that
the person is certified or registered. A written representation
includes a representation communicated by office sign, business
card, letterhead, or advertisement. A representation does not
include:
(1) the display of an original certificate or
registration unless a license is also displayed;
(2) a representation made by a faculty member of an
educational institution solely in connection with the duties of the
person as a faculty member; or
(3) a representation in a book, article, or other
publication, or a representation made in connection with the
promotion of the publication, unless the representation includes an
offer to perform a service or to sell a product other than the
publication. (V.A.C.S. Art. 41a-1, Secs. 2(a)(6), (c).)
+zSec. 901.004. CONSTRUCTION; LIMITATIONS@z. (a) This chapter
does not:
(1) restrict an official act of a person acting in the
person's capacity as:
(A) an officer of the state or of a county,
municipality, or other political subdivision, including a county
auditor;
(B) an officer of a federal department or
agency; or
(C) an assistant, deputy, or employee of a
person described by Paragraph (A) or (B);
(2) prohibit a person who is not a certified public
accountant or public accountant from serving as an employee of:
(A) a certified public accountant or public
accountant licensed by the board; or
(B) a firm composed of certified public
accountants or public accountants licensed by the board; or
(3) prohibit a person licensed by the federal
government as an enrolled agent from performing an act or using a
designation authorized by federal law.
(b) A person who serves as an employee as described by
Subsection (a)(2) may not issue an accounting or financial
statement over the employee's name. (V.A.C.S. Art. 41a-1, Secs. 3,
8(e) (part).)
Sec. 901.005. PUBLIC POLICY; PURPOSE. (a) The practice of
public accountancy is a learned profession that requires
specialized education and experience. The terms "accountant" and
"auditor," and derivations of those terms, have an implication of
competence in the profession of public accountancy on which the
public relies in personal, business, and public activities and
enterprises.
(b) The policy of this state and the purpose of this chapter
are to provide that:
(1) the admission of persons to the practice of public
accountancy require education and experience commensurate with the
requirements of the profession;
(2) a person who represents that the person practices
public accountancy be qualified to do so;
(3) a person engaged in the practice of public
accountancy maintain high standards of professional competence,
integrity, and learning;
(4) areas of specialized practice require special
training; and
(5) the activities and competitive practices of
persons practicing public accountancy be regulated to be free of
commercial exploitation to provide the public with a high level of
professional competence at reasonable fees by independent,
qualified persons. (V.A.C.S. Art. 41a-1, Sec. 1.)
+zSec. 901.006. APPLICATION OF SUNSET ACT@z. The Texas State
Board of Public Accountancy is subject to Chapter 325, Government
Code (Texas Sunset Act). Unless continued in existence as provided
by that chapter, the board is abolished and this chapter expires
September 1, 2003. (V.A.C.S. Art. 41a-1, Sec. 28.)
+zSections 901.007-901.050 reserved for expansion@z
+zSUBCHAPTER B. TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY@z
+zSec. 901.051. BOARD MEMBERSHIP@z. (a) The Texas State Board
of Public Accountancy consists of 15 members appointed by the
governor with the advice and consent of the senate as follows:
(1) 10 certified public accountant members, at least
eight of whom are, on the date of appointment:
(A) a sole practitioner; or
(B) an owner or employee of a firm engaged in
public practice; and
(2) five public members who are not:
(A) licensed under this chapter; or
(B) financially involved in an organization
subject to board regulation.
(b) Each member of the board must be a United States
citizen.
(c) Appointments to the board shall be made without regard
to the race, color, disability, sex, religion, age, or national
origin of the appointee. (V.A.C.S. Art. 41a-1, Secs. 4(a) (part),
(f).)
+zSec. 901.052. ELIGIBILITY OF PUBLIC MEMBERS@z. A person is
not eligible for appointment as a public member of the board if the
person or the person's spouse:
(1) is registered, certified, or licensed by an
occupational regulatory agency in the field of public accountancy;
(2) is employed by or participates in the management
of a business entity or other organization regulated by the board
or receiving funds from the board;
(3) owns or controls, directly or indirectly, more
than a 10 percent interest in a business entity or other
organization regulated by the board or receiving funds from the
board; or
(4) uses or receives a substantial amount of tangible
goods, services, or funds from the board, other than compensation
or reimbursement authorized by law for board membership,
attendance, or expenses. (V.A.C.S. Art. 41a-1, Sec. 4(a-1).)
+zSec. 901.053. MEMBERSHIP AND EMPLOYEE RESTRICTIONS@z. (a) In
this section, "Texas trade association" means a nonprofit,
cooperative, and voluntarily joined association of business or
professional competitors in this state designed to assist its
members and its industry or profession in dealing with mutual
business or professional problems and in promoting their common
interest.
(b) An officer, employee, or paid consultant of a Texas
trade association in the field of public accountancy may not be a
member of the board and may not be an employee of the board who is
exempt from the state's position classification plan or is
compensated at or above the amount prescribed by the General
Appropriations Act for step 1, salary group A17, of the position
classification salary schedule.
(c) A person who is the spouse of an officer, manager, or
paid consultant of a Texas trade association in the field of public
accountancy may not be an employee of the board who is exempt from
the state's position classification plan or is compensated at or
above the amount prescribed by the General Appropriations Act for
step 1, salary group A17, of the position classification salary
schedule.
(d) A person may not serve as a member of the board or act
as the general counsel to the board if the person is required to
register as a lobbyist under Chapter 305, Government Code, because
of the person's activities for compensation on behalf of a
profession related to the operation of the board.
(e) A member or employee of the board may not be related
within the second degree by consanguinity or affinity, as
determined under Chapter 573, Government Code, to a person who is
an officer, employee, or paid consultant of a trade association of
persons governed by this chapter. (V.A.C.S. Art. 41a-1, Secs.
4(b); (c), as amended Acts 72nd Leg., R.S., Chs. 533, 561; (c-1);
(h).)
+zSec. 901.054. TERMS@z. (a) Board members serve staggered
six-year terms.
(b) A board member who has served all or part of six
consecutive years is not eligible for reappointment until the
second anniversary of the expiration date of the member's most
recent term. (V.A.C.S. Art. 41a-1, Secs. 4(a) (part), (d).)
+zSec. 901.055. OFFICERS; EXECUTIVE COMMITTEE@z. (a) The
governor shall designate a member of the board as presiding
officer. The presiding officer serves in that capacity at the will
of the governor.
(b) The board shall annually elect from its members an
assistant presiding officer, secretary, treasurer, and other
officers the board considers necessary to serve with the presiding
officer on the executive committee. (V.A.C.S. Art. 41a-1, Secs.
4(i), 5(a) (part).)
+zSec. 901.056. GROUNDS FOR REMOVAL@z. (a) It is a ground for
removal from the board that a member:
(1) does not have at the time of the appointment the
qualifications required by Section 901.051;
(2) does not maintain during service on the board the
qualifications required by Section 901.051 or 901.052;
(3) violates a prohibition established by Section
901.053;
(4) cannot, because of illness or disability,
discharge the member's duties for a substantial part of the
member's term; or
(5) is absent from more than half of the regularly
scheduled meetings of the board and a committee of the board that
the member is eligible to attend during a calendar year unless the
absence is excused by a majority vote of the board.
(b) The validity of an action of the board is not affected
by the fact that it is taken when a ground for removal of a board
member exists.
(c) If the executive director has knowledge that a potential
ground for removal of a board member exists, the executive director
shall notify the executive committee of the board of the ground.
The presiding officer shall notify the governor that a potential
ground for removal exists. (V.A.C.S. Art. 41a-1, Secs. 4(g),
(g-1).)
+zSec. 901.057. PER DIEM; REIMBURSEMENT@z. (a) A board member
is entitled to receive:
(1) $100 for each day that the member conducts board
business; and
(2) reimbursement for actual and necessary expenses
incurred in performing board functions.
(b) The board by rule may determine the activities that
constitute board business. (V.A.C.S. Art. 41a-1, Sec. 4(e).)
+zSec. 901.058. MEMBER EQUALITY@z. A board member who is not a
certified public accountant has the same authority, responsibility,
and duties as any other board member. (V.A.C.S. Art. 41a-1, Sec.
5(c).)
+zSections 901.059-901.100 reserved for expansion@z
+zSUBCHAPTER C. EXECUTIVE DIRECTOR AND OTHER
BOARD PERSONNEL@z
+zSec. 901.101. EXECUTIVE DIRECTOR AND PERSONNEL@z. The board
shall employ an executive director, independent contractors, and
personnel selected by the executive director as necessary to assist
the board in performing its duties. (V.A.C.S. Art. 41a-1, Sec.
5(a) (part).)
+zSec. 901.102. DIVISION OF RESPONSIBILITIES@z. The board shall
develop and implement policies that clearly define the respective
responsibilities of the board and the staff of the board.
(V.A.C.S. Art. 41a-1, Sec. 5(h).)
+zSec. 901.103. QUALIFICATIONS AND STANDARDS OF CONDUCT
INFORMATION@z. The board shall provide, as often as necessary, to
its members and employees information regarding their:
(1) qualifications for office or employment under this
chapter; and
(2) responsibilities under applicable laws relating to
standards of conduct for state officers or employees. (V.A.C.S.
Art. 41a-1, Sec. 5(f).)
+zSec. 901.104. CAREER LADDER PROGRAM; PERFORMANCE
EVALUATIONS@z. (a) The executive director or the executive
director's designee shall develop an intra-agency career ladder
program. The program must require intra-agency postings of all
nonentry level positions concurrently with any public posting.
(b) The executive director or the executive director's
designee shall develop a system of annual performance evaluations.
All merit pay for board employees must be based on the system
established under this subsection. (V.A.C.S. Art. 41a-1, Secs.
5A(a), (b).)
+zSec. 901.105. EQUAL EMPLOYMENT OPPORTUNITY POLICY; REPORT@z.
(a) The executive director or the executive director's designee
shall prepare and maintain a written policy statement to ensure
implementation of an equal employment opportunity program under
which all personnel transactions are made without regard to race,
color, disability, sex, religion, age, or national origin. The
policy statement must include:
(1) personnel policies, including policies relating to
recruitment, evaluation, selection, appointment, training, and
promotion of personnel;
(2) a comprehensive analysis of the board workforce
that meets federal and state guidelines;
(3) procedures by which a determination can be made of
significant underuse in the board workforce of all persons for whom
federal or state guidelines encourage a more equitable balance; and
(4) reasonable methods to appropriately address those
areas of underuse.
(b) A policy statement prepared under Subsection (a) must:
(1) cover an annual period;
(2) be updated at least annually; and
(3) be filed with the governor.
(c) The governor shall deliver a biennial report to the
legislature based on the information received under Subsection (b).
The report may be made separately or as a part of other biennial
reports made to the legislature. (V.A.C.S. Art. 41a-1, Secs.
5A(c), (d), (e).)
+zSections 901.106-901.150 reserved for expansion@z
+zSUBCHAPTER D. BOARD POWERS AND DUTIES@z
+zSec. 901.151. GENERAL POWERS AND DUTIES OF BOARD@z. (a) The
board shall:
(1) administer this chapter;
(2) adopt rules the board determines are necessary or
advisable to administer this chapter;
(3) keep a record of each proceeding conducted before
or action taken by the board; and
(4) keep an official seal.
(b) On its own motion or on the complaint of any person, the
board may initiate:
(1) proceedings to determine the eligibility of a
person for examination, certification, registration, or licensing
under this chapter; or
(2) disciplinary proceedings under Subchapter K.
(c) The board may solicit, contract for, and accept money
and other assistance from any source to administer this chapter.
(V.A.C.S. Art. 41a-1, Secs. 5(a) (part), 6(a) (part), 7(c), 22(a),
(b) (part).)
+zSec. 901.152. ADVISORY COMMITTEES@z. (a) The board may
appoint advisory committees to perform the advisory functions
assigned to the committees by the board.
(b) A member of an advisory committee who is not a member of
the board may not receive compensation for service on the
committee. The member may receive reimbursement for actual and
necessary expenses incurred in performing committee functions as
provided by Section 2110.004, Government Code.
(c) A member of an advisory committee serves at the will of
the board. (V.A.C.S. Art. 41a-1, Sec. 24.)
+zSec. 901.153. ENFORCEMENT COMMITTEES@z. (a) The board may
appoint enforcement committees from its membership. The membership
of each enforcement committee must include at least one public
member of the board.
(b) An enforcement committee shall consider and make
recommendations to the board on matters relating to the enforcement
of this chapter and board rules.
(c) The board may adopt rules necessary for the performance
of each enforcement committee's duties. (V.A.C.S. Art. 41a-1,
Sec. 22A(a).)
+zSec. 901.154. FEES@z. (a) The board shall set the fee for
the issuance of a certificate under this chapter and the fee for
the issuance or renewal of a license under this chapter in an
amount not to exceed $250.
(b) The board may increase the fee for the issuance or
renewal of a license as necessary to cover the costs of enforcing
this chapter.
(c) The board may not waive the collection of any fee or
penalty provided by this chapter. (V.A.C.S. Art. 41a-1, Secs. 9(b)
(part), (c) (part), (g) (part); 9A(b) (part); 13(c).)
+zSec. 901.155. SCHOLARSHIP FUND ACCOUNT FOR FIFTH-YEAR
ACCOUNTING STUDENTS@z. (a) The fee for the issuance or renewal of a
license under this chapter is the amount of the fee set by the
board under Section 901.154 together with the fee increase imposed
under Section 901.406 and an additional $20 fee to be deposited to
the credit of the scholarship fund account for fifth-year
accounting students in the general revenue fund.
(b) The scholarship fund account for fifth-year accounting
students may be used only to:
(1) provide scholarships under Subchapter N, Chapter
61, Education Code, to accounting students in the fifth year of a
program designed to qualify each student to apply for certification
as a certified public accountant; and
(2) pay administrative costs under Subsection (c).
(c) The administrative costs incurred to collect the fee
imposed under Subsection (a) and to disburse the money may not
exceed 15 percent of the total money collected, with 10 percent of
the money allocated to the Texas Higher Education Coordinating
Board and five percent of the money allocated to the board.
(d) Notwithstanding Section 404.071, Government Code,
interest earned on amounts in the scholarship fund account for
fifth-year accounting students shall be credited to that account.
(V.A.C.S. Art. 41a-1, Secs. 32(b), (c), (d), (e).)
+zSec. 901.156. RULES OF PROFESSIONAL CONDUCT@z. The board
shall adopt rules of professional conduct to:
(1) establish and maintain high standards of
competence and integrity in the practice of public accountancy; and
(2) ensure that the conduct and competitive practices
of license holders serve the purposes of this chapter and the best
interest of the public. (V.A.C.S. Art. 41a-1, Sec. 6(a) (part).)
+zSec. 901.157. RULES FOR SPECIALIZATION@z. The board by rule
may recognize an area of specialization in the practice of public
accountancy if the area of specialization is generally recognized
by other bodies that regulate or issue authoritative pronouncements
in the field of public accountancy. (V.A.C.S. Art. 41a-1, Sec.
6(b).)
+zSec. 901.158. RULES RESTRICTING ADVERTISING OR COMPETITIVE
BIDDING@z. The board in its rules of professional conduct may not
restrict advertising or competitive bidding by a license holder
except as necessary to ensure that:
(1) the license holder's communications, including
advertising and price information, are informative, free of
deception, and consistent with the professionalism expected and
deserved by the public from a person engaged in the practice of
public accountancy;
(2) the license holder's conduct is free from fraud,
undue influence, deception, intimidation, overreaching, and
harassment;
(3) the license holder does not engage in an uninvited
solicitation, by use of a means other than mass media
advertisement, to perform professional accounting services;
(4) a contract between a license holder and a state
agency, publicly owned utility, or political subdivision, including
a county, municipality, district, or authority, for the performance
of professional accounting services is not solicited or awarded on
the basis of competitive bids submitted in violation of law;
(5) a contract for the preparation of a financial
statement or an opinion on a financial statement includes
information necessary to protect the public if:
(A) the financial statement or opinion can be
used by or given to a person other than a party to the contract to
induce reliance on the statement or opinion; and
(B) the contract is entered into on the basis of
competitive bids; or
(6) a license holder does not engage in a competitive
practice that:
(A) impairs the independence or quality of a
service provided by a license holder;
(B) impairs or restricts the public's
opportunity to obtain professional accounting services of high
quality at a reasonable price; or
(C) unreasonably restricts competition among
license holders. (V.A.C.S. Art. 41a-1, Sec. 6(a) (part).)
+zSec. 901.159. QUALITY REVIEW@z. (a) The board by rule shall
provide for a quality review program to review the work product of
a license holder or of the practice unit, in lieu of a license
holder, to the extent necessary to comply with any applicable
standards adopted by generally recognized bodies responsible for
setting accounting standards.
(b) The board by rule shall establish a fee in an amount not
to exceed $200 to be paid by a practice unit, or by a license
holder who is not a member of a practice unit, for each quality
review required by the board under this section. (V.A.C.S.
Art. 41a-1, Secs. 15B(a), (b) (part), (d).)
+zSec. 901.160. AVAILABILITY AND CONFIDENTIALITY OF CERTAIN
BOARD FILES@z. (a) The board shall make available at the board's
offices in Austin any file maintained or information gathered or
received by the board from a third party regarding a license
applicant or current or former license holder for inspection by the
applicant or license holder during normal business hours.
(b) A license applicant or current or former license holder
may authorize the board in writing to make available for inspection
by a designated person or by the public any information gathered or
received by the board from a third party regarding the applicant or
license holder.
(c) Except on written authorization as provided by
Subsection (b), the following information gathered or received by
the board is confidential and not subject to disclosure under
Chapter 552, Government Code:
(1) information regarding the qualifications of an
applicant or license holder to be certified or registered as a
certified public accountant; and
(2) information regarding a disciplinary action under
Subchapter K against a license holder or an applicant to take the
uniform CPA examination, before a public hearing on the matter.
(d) A final order of the board relating to a disciplinary
action against a license holder, including a reprimand, that
results from an informal proceeding or a formal public hearing is
subject to disclosure to the public and is available on request.
(V.A.C.S. Art. 41a-1, Sec. 25.)
+zSec. 901.161. PRIVILEGE FOR CERTAIN INFORMATION@z. (a) Any
statement or record prepared or an opinion formed in connection
with a positive enforcement, quality review, or peer review is
privileged and is not:
(1) subject to discovery, subpoena, or other means of
legal compulsion for release to a person other than the board; or
(2) admissible as evidence in a judicial or
administrative proceeding other than a board hearing.
(b) The privilege provided by Subsection (a) does not apply
to information involved in a dispute between a reviewer and the
person, including an entity, who is the subject of the review.
(V.A.C.S. Art. 41a-1, Sec. 15B(c).)
+zSec. 901.162. IMMUNITY FROM LIABILITY@z. (a) Each board
member and each officer, director, or employee of a state agency,
board, or commission is immune from liability arising out of a
disclosure made to the board in connection with a complaint filed
with the board.
(b) The board and each board member is immune from liability
to a person for damages incident to:
(1) the board's investigation of the person; or
(2) any complaint, charge, or proceeding that results
from the investigation. (V.A.C.S. Art. 41a-1, Secs. 21C, 22(f)(3)
(part).)
+zSec. 901.163. STATISTICAL ANALYSIS OF COMPLAINTS@z. (a) The
board shall develop and maintain a system for tracking a complaint
filed with the board against a person registered under this
chapter.
(b) At the time the board files an annual report under
Section 901.164, the board shall also report a statistical analysis
of the disciplinary actions taken by the board during the preceding
year. The report must contain a statistical analysis of:
(1) the number of complaints received;
(2) the number of complaints resolved and the manner
in which they were resolved;
(3) a categorization of complaints received and the
number of complaints in each category;
(4) the average length of time required to resolve a
complaint for each category of complaints; and
(5) other information the board determines necessary.
(c) If the board does not receive any complaint in a
category during a reporting period, the board shall report that a
complaint was not received in that category. (V.A.C.S. Art. 41a-1,
Secs. 22B(a), (b).)
+zSec. 901.164. ANNUAL FISCAL REPORT@z. (a) The board shall
file annually with the governor and the presiding officer of each
house of the legislature a complete and detailed report accounting
for all funds received and disbursed by the board during the
preceding calendar year.
(b) The report must be in the form and reported in the time
provided by the General Appropriations Act. (V.A.C.S. Art. 41a-1,
Sec. 7(b), as amended Acts 72nd Leg., R.S., Ch. 533; Sec. 7(b)
(part), as amended Acts 72nd Leg., R.S., Ch. 599.)
+zSections 901.165-901.200 reserved for expansion@z
+zSUBCHAPTER E. PUBLIC INTEREST INFORMATION AND
COMPLAINT PROCEDURES@z
+zSec. 901.201. PUBLIC INTEREST INFORMATION@z. (a) The board
shall prepare information of public interest describing the
functions of the board and the procedures by which complaints are
filed with and resolved by the board.
(b) The board shall make the information available to the
public and appropriate state agencies. (V.A.C.S. Art. 41a-1, Sec.
5(d).)
+zSec. 901.202. COMPLAINTS@z. The board by rule shall establish
methods by which consumers and service recipients are notified of
the name, mailing address, and telephone number of the board for
the purpose of directing a complaint to the board. The board may
require that notice:
(1) on each registration form, application, or written
contract for services of a person regulated under this chapter; or
(2) in a bill for service provided by a person
regulated under this chapter. (V.A.C.S. Art. 41a-1, Sec. 5(e).)
+zSec. 901.203. COMPLAINT INFORMATION@z. (a) The board shall
maintain an information file about each complaint filed with the
board for a period not to exceed the 10th anniversary of the date
of the complaint's final disposition.
(b) If a written complaint is filed with the board relating
to a person regulated under this chapter, the board shall notify
the parties to the complaint of each change in the status of the
complaint, including the final disposition, unless the notice would
jeopardize an undercover investigation. (V.A.C.S. Art. 41a-1, Sec.
22B(c).)
+zSec. 901.204. PUBLIC PARTICIPATION@z. (a) The board shall
develop and implement policies that provide the public with a
reasonable opportunity to appear before the board and to speak on
any issue under the board's jurisdiction.
(b) The board shall prepare and maintain a written plan that
describes how a person who does not speak English or who has a
physical, mental, or developmental disability may be provided
reasonable access to the board's programs. (V.A.C.S. Art. 41a-1,
Secs. 5(g), (i).)
+zSections 901.205-901.250 reserved for expansion@z
+zSUBCHAPTER F. CERTIFICATE REQUIREMENTS@z
+zSec. 901.251. CERTIFICATE REQUIRED@z. (a) A person who is an
individual may not engage in the practice of public accountancy
unless the person holds a certificate issued under this chapter.
(b) The board shall issue a certificate to a person who
meets the applicable requirements of this chapter. (V.A.C.S.
Art. 41a-1, Secs. 8(a) (part), 12(a) (part).)
+zSec. 901.252. ELIGIBILITY REQUIREMENTS@z. To be eligible to
receive a certificate, a person must:
(1) be of good moral character as determined under
Section 901.253;
(2) meet the education requirements established under
Section 901.254 or 901.255;
(3) pass the uniform CPA examination;
(4) meet the work experience requirements established
under Section 901.256; and
(5) pass an examination on the rules of professional
conduct as determined by board rule. (V.A.C.S. Art. 41a-1, Secs.
12(a) (part), (c).)
+zSec. 901.253. CHARACTER INVESTIGATION@z. (a) The board shall
ensure that an applicant to take the uniform CPA examination or to
receive a certificate is of good moral character as demonstrated by
a lack of history of dishonest or felonious acts.
(b) The board by rule may adopt a system to investigate an
applicant's background.
(c) The board may obtain criminal history record information
maintained by a law enforcement agency, including the Department of
Public Safety and the Federal Bureau of Investigation
identification division, to investigate the qualifications of an
individual who applies to take the uniform CPA examination or to be
certified or registered under this chapter.
(d) The board may require the applicant to submit a complete
set of fingerprints. If an applicant does not provide a complete
set of fingerprints on request of the board, the board may:
(1) deny the applicant's application to take the
uniform CPA examination; or
(2) refuse to issue a certificate to the applicant.
(V.A.C.S. 41a-1, Secs. 12(d), 21B.)
+zSec. 901.254. EDUCATION REQUIREMENTS@z. (a) To be eligible
to take the uniform CPA examination, an applicant must:
(1) hold a baccalaureate or graduate degree, or its
equivalent as determined by board rule, conferred by a
board-recognized institution of higher education; and
(2) complete at least:
(A) 150 semester hours or quarter-hour
equivalents in board-recognized courses;
(B) 30 semester hours or quarter-hour
equivalents in board-recognized accounting courses, as defined by
board rule, including at least 20 semester hours or quarter-hour
equivalents in core accounting courses, as defined by board rule;
and
(C) 20 semester hours or quarter-hour
equivalents in board-recognized college or university
accounting-related courses in other areas of business
administration.
(b) An applicant who holds a baccalaureate degree may take
the uniform CPA examination even though the applicant has not
completed the other requirements established by this chapter. The
applicant may not receive a certificate until those other
requirements are complete. This subsection expires January 1,
2000. (V.A.C.S. Art. 41a-1, Secs. 12(e) (part), (g).)
+zSec. 901.255. SPECIAL EDUCATION REQUIREMENTS FOR PART-TIME
STUDENT@z. (a) This section applies only to an applicant to take
the uniform CPA examination who:
(1) was enrolled in an accounting program on September
1, 1994;
(2) notified the board not later than September 1,
1997, of the applicant's intent to take the examination;
(3) is enrolled in fewer than 12 semester hours in
each semester that the applicant attends a college or university;
and
(4) completes the accounting program not later than
September 1, 2002.
(b) To be eligible to take the uniform CPA examination, an
applicant subject to this section must:
(1) hold a baccalaureate or graduate degree, or its
equivalent as determined by board rule, conferred by a
board-recognized institution of higher education; and
(2) complete at least:
(A) 30 semester hours or quarter-hour
equivalents in board-recognized accounting courses, as defined by
board rule; and
(B) 20 semester hours or quarter-hour
equivalents in board-recognized accounting-related courses in other
areas of business administration. (V.A.C.S. Art. 41a-1, Secs.
12(e) (part), (f).)
+zSec. 901.256. WORK EXPERIENCE REQUIREMENTS@z. (a) To be
eligible to receive a certificate, a person must complete:
(1) at least two years of work experience under the
supervision of a certified public accountant; or
(2) at least one year of work experience under the
supervision of a certified public accountant, if the person:
(A) has completed at least 150 semester hours of
college credits; or
(B) holds a graduate degree.
(b) The board by rule shall define the work experience that
is acceptable for purposes of this section.
(c) The board is the final authority regarding work
experience. The board may not consider a petition from another
entity in resolving a dispute under this section. (V.A.C.S.
Art. 41a-1, Sec. 12(h).)
+zSec. 901.257. OATH AND CERTIFICATE FEE@z. Before the board
issues a certificate to a person, the person must:
(1) take an oath, administered by a board member or by
another person authorized to administer oaths, to support:
(A) the constitution and laws of this state and
the United States; and
(B) the board's rules; and
(2) pay a fee for the certificate in an amount set by
board rule not to exceed $50. (V.A.C.S. Art. 41a-1, Sec. 12(a)
(part).)
Sec. 901.258. TRANSFER OF COMPLETE EXAMINATION CREDIT
BETWEEN STATES. (a) The board may accept the completion of the
uniform CPA examination given by the licensing authority of another
state if:
(1) the examination was prepared and graded by the
American Institute of Certified Public Accountants or, if doing so
would result in a greater degree of reciprocity with the
examination results of other states, the National Association of
State Boards of Accountancy; and
(2) the applicant met the requirements in effect in
this state at the time the credit was earned.
(b) The board may transfer to the licensing authority of
another state active credits earned as a result of completing the
uniform CPA examination in this state.
(c) The board by rule shall establish:
(1) a fee in an amount not to exceed $100 to receive
credits from another licensing authority; and
(2) a fee in an amount not to exceed $50 to transfer
credits to another licensing authority. (V.A.C.S. Art. 41a-1, Sec.
12(b).)
+zSec. 901.259. CERTIFICATION BASED ON RECIPROCITY@z. (a) The
board shall issue a certificate to a person who holds a certificate
issued by another state if the person:
(1) has passed the uniform CPA examination with grades
that were passing grades in this state on the date the person took
the examination;
(2) satisfies at least one of the following:
(A) meets the requirements for issuance of a
certificate in this state other than the requirement providing the
grades necessary to pass the uniform CPA examination;
(B) met the requirements in effect for issuance
of a certificate in this state on the date the person was issued a
certificate by the other state; or
(C) has completed at least four years of
experience practicing public accountancy, if the experience:
(i) occurred after the person passed the
uniform CPA examination and within the 10 years preceding the date
of application; and
(ii) satisfies requirements established by
board rule; and
(3) has met the continuing professional education
requirements that apply to a license holder under this chapter for
the three-year period preceding the date of application.
(b) The board shall issue a certificate by reciprocity to
the extent required by a United States treaty. (V.A.C.S.
Art. 41a-1, Secs. 13(a), (b).)
+zSections 901.260-901.300 reserved for expansion@z
+zSUBCHAPTER G. UNIFORM CPA EXAMINATION@z
+zSec. 901.301. ADMINISTRATION; BOARD RULES@z. (a) The board
shall conduct each uniform CPA examination administered under this
chapter.
(b) The board by rule may establish the:
(1) manner in which a person may apply for the
examination;
(2) time, date, and place for the examination;
(3) manner in which the examination is conducted;
(4) method used to grade the examination;
(5) criteria used to determine a passing score on the
examination; and
(6) manner in which a person's examination score is
reported to the person. (V.A.C.S. Art. 41a-1, Secs. 15(a) (part),
(c).)
+zSec. 901.302. APPLICATION OF INTENT@z. (a) The board may
establish an application of intent for a person pursuing a
certificate.
(b) The board shall maintain an application of intent filed
under this section as an active application until the second
anniversary of the date the application is filed. (V.A.C.S.
Art. 41a-1, Sec. 15(b).)
+zSec. 901.303. FILING FEE@z. The board by rule may set a
filing fee in an amount not to exceed $100 to be paid by an
applicant at the time the applicant files an initial application to
take the uniform CPA examination. (V.A.C.S. Art. 41a-1, Sec. 15(k)
(part).)
+zSec. 901.304. EXAMINATION FEE@z. (a) For each examination or
reexamination, the board by rule shall apportion an amount of the
total examination fee among the parts of the examination that an
applicant is eligible to take on a particular examination date.
The total examination fee may not exceed $250.
(b) An applicant must pay the examination fee at the time
the applicant files an application for examination or
reexamination.
(c) The board by rule may provide for a refund of the
examination fee paid by an applicant who:
(1) fails to attend the examination; and
(2) presents the board with a satisfactory reason for
that failure. (V.A.C.S. Art. 41a-1, Sec. 15(k) (part).)
+zSec. 901.305. FREQUENCY OF EXAMINATION@z. The board shall
administer a uniform CPA examination as often as necessary but at
least once each year. (V.A.C.S. Art. 41a-1, Sec. 15(a) (part).)
+zSec. 901.306. CONTENT AND SECURITY OF EXAMINATION@z. (a) The
board may use all or part of the uniform CPA examination and any
related service available from:
(1) the American Institute of Certified Public
Accountants; or
(2) the National Association of State Boards of
Accountancy, if doing so would result in a greater degree of
reciprocity with the examination results of other states.
(b) The examination must test the person's knowledge of
accounting, auditing, and any other subject the board determines is
appropriate.
(c) If the examination is secured by the preparer, the board
may not release a copy of any question or answer to any person.
(d) The board by rule may adopt a system to maintain the
security and integrity of the examination process. (V.A.C.S.
Art. 41a-1, Secs. 12(a) (part), 15(a) (part).)
+zSec. 901.307. MINIMUM PASSING GRADE@z. A person must attain a
grade of at least 75 percent on each subject of the examination to
pass the examination. (V.A.C.S. Art. 41a-1, Sec. 15(d).)
+zSec. 901.308. EXAMINATION RESULTS@z. (a) The board shall
send to each examinee the examinee's results not later than the
30th day after the date the board receives the results.
(b) The board may withhold delivery of the examination
results if:
(1) board action is pending; and
(2) the examinee is precluded from receiving the
results until the action is resolved.
(c) If the notice of the examination results graded or
reviewed by a national testing service will be delayed for more
than 120 days after the examination date, the board shall notify
the examinee of the reason for the delay before the 120th day.
(d) A person who fails an examination is entitled to inspect
the examination questions and the person's answers not later than
the 91st day after the date the board receives the results. An
inspection must be by appointment at the board's offices during
regular office hours. The person's grade must be clearly shown on
the examination. A copy of the examination questions or answers
may not be made.
(e) If requested in writing by a person who fails an
examination, the board shall provide to the person an analysis of
the person's performance on the examination. (V.A.C.S.
Art. 41a-1, Secs. 15(e), (l), (m), (n).)
+zSec. 901.309. REEXAMINATION@z. A person who fails all or part
of an examination may apply for a subsequent examination, subject
to the board's satisfaction that the person meets the requirements
of this chapter relating to the person's moral character and
education. (V.A.C.S. Art. 41a-1, Sec. 15(f).)
+zSec. 901.310. CONDITIONAL EXAMINATION CREDIT@z. (a) The
board by rule shall award conditional credit to a person who:
(1) passes two or more subjects in a single
examination;
(2) takes each part of the examination the person is
eligible to take; and
(3) attains a minimum grade of 50 percent on each part
of the examination the person does not pass.
(b) The board shall award credit to a person who attains a
passing score on a subsequent examination if the person:
(1) takes each part of the examination the person is
eligible to take; and
(2) attains a minimum grade of 50 percent on each part
of the examination that the person does not pass.
(c) The board shall consider a person to have passed an
examination if the person receives credit for each subject by
receiving conditional credit after September 1, 1989, and passing
the remaining subjects within the six consecutive examinations
following the examination for which the person receives conditional
credit. (V.A.C.S. Art. 41a-1, Sec. 15(g) (part).)
+zSec. 901.311. RESTRUCTURE OF EXAMINATION@z. If the uniform
CPA examination is restructured, the board by rule shall determine
the manner in which credit for a subject is integrated into the new
structure. (V.A.C.S. Art. 41a-1, Sec. 15(h).)
+zSec. 901.312. TRANSFER OF PARTIAL EXAMINATION CREDIT BETWEEN
STATES@z. (a) The board may accept the partial completion of the
uniform CPA examination given by the licensing authority of another
state if:
(1) the examination was prepared and graded by the
American Institute of Certified Public Accountants or, if doing so
would result in a greater degree of reciprocity with the
examination results of other states, the National Association of
State Boards of Accountancy;
(2) the credit is active in the other state; and
(3) at the time the credit was earned, the applicant
met the requirements in effect in the other state and the other
state's standards are equal to or higher than the standards
prescribed by this chapter.
(b) The board may transfer to the licensing authority of
another state active credits earned as a result of partially
completing the uniform CPA examination in this state.
(c) The board by rule shall establish:
(1) a fee in an amount not to exceed $100 to receive
credits from another licensing authority; and
(2) a fee in an amount not to exceed $50 to transfer
credits to another licensing authority. (V.A.C.S. Art. 41a-1,
Secs. 15(i), (j).)
+zSections 901.313-901.350 reserved for expansion@z
+zSUBCHAPTER H. REGISTRATION REQUIREMENTS@z
+zSec. 901.351. REGISTRATION REQUIRED@z. A certified public
accountant, a public accountant, a firm of certified public
accountants or public accountants, and each office of that firm in
this state, including a practice unit, and a person described by
Section 901.355 and each office of that person in this state may
not engage in the practice of public accountancy unless the person
is registered with the board. (V.A.C.S. Art. 41a-1, Secs. 10(a)
(part); 11(a) (part), (c) (part); 15B(b) (part); 17(a) (part), (h)
(part); 19(a) (part), (h) (part); 20 (part).)
+zSec. 901.352. APPLICATION FOR REGISTRATION@z. (a) An
applicant for registration must provide the board with satisfactory
evidence of eligibility for registration.
(b) The board may examine an application and may refuse to
register an applicant who does not meet the standards imposed under
this chapter. (V.A.C.S. Art. 41a-1, Sec. 10(b).)
+zSec. 901.353. RESIDENT MANAGER@z. (a) An office established
or maintained in this state for the practice of public accountancy
in this state by a firm of certified public accountants, a firm of
public accountants, or a person described by Section 901.355 must
be under the direct supervision of a resident manager who:
(1) is an owner, partner, shareholder, or employee of
the firm or person that occupies the office; and
(2) is licensed under this chapter.
(b) A resident manager may serve in that capacity in only
one office at a time except as authorized by board rule. The board
by rule shall establish a registration procedure under which a
person may serve as resident manager of more than one office at a
time. (V.A.C.S. Art. 41a-1, Sec. 10(a) (part).)
Sec. 901.354. REGISTRATION INFORMATION AND ELIGIBILITY.
(a) An application for registration under this chapter must be
made on an affidavit of the owner, an officer, or the general
partner of the firm, as applicable, stating:
(1) the name of the firm;
(2) the firm's post office address in this state;
(3) the address of the firm's principal office;
(4) if the firm is a partnership or corporation, the
address of each office of the firm in this state;
(5) the name of the resident manager of each office of
the firm in this state; and
(6) if the firm is a partnership, the name, residence,
and post office address of:
(A) each partner; and
(B) each shareholder of a partner that is a
corporation.
(b) A sole proprietorship is eligible for registration
if the sole proprietor and each resident manager of an office of
the sole proprietorship in this state are certified public
accountants in good standing.
(c) A partnership is eligible for registration as a
partnership that includes a certified public accountant if:
(1) at least one general partner is a certified public
accountant or corporation of certified public accountants licensed
in this state in good standing;
(2) each partner engaged in the practice of public
accountancy in this state is a certified public accountant or
corporation of certified public accountants licensed in this state
in good standing;
(3) each partner not engaged in the practice of public
accountancy in this state is a certified public accountant or
corporation of certified public accountants licensed in another
state in good standing; and
(4) each resident manager of an office of the
partnership in this state is a certified public accountant licensed
in this state in good standing.
(d) A partnership is eligible for registration as a
partnership that includes a public accountant if:
(1) at least one general partner is a certified public
accountant, public accountant, or corporation of certified public
accountants or public accountants licensed in this state in good
standing;
(2) each partner engaged in the practice of public
accountancy in this state is a certified public accountant, public
accountant, or corporation of certified public accountants or
public accountants licensed in this state in good standing;
(3) each partner not engaged in the practice of public
accountancy in this state is a certified public accountant, public
accountant, or corporation of certified public accountants or
public accountants licensed in another state in good standing; and
(4) each resident manager of an office of the
partnership in this state is a certified public accountant or
public accountant licensed in this state in good standing.
(e) A corporation is eligible for registration as a
corporation engaged in the practice of public accountancy if the
corporation meets the requirements applicable to partnerships under
this chapter.
(f) The board shall determine whether an applicant is
eligible for registration under this section. The board by rule
shall define "good standing" for purposes of this section.
(g) A sole proprietorship shall notify the board not later
than the 31st day after the date on which information in the
affidavit is changed, including information regarding the admission
or withdrawal of a resident manager. A partnership shall notify the
board within one month after the date on which information in the
affidavit is changed, including information regarding the admission
or withdrawal of a partner. (V.A.C.S. Art. 41a-1, Secs. 11(a)
(part), (b), (d), (f), (g), 17(a) (part), (b), (c), (e), (f), 19(a)
(part), (b), (c), (e), (f), 20 (part).)
+zSec. 901.355. REGISTRATION FOR CERTAIN OUT-OF-STATE OR
FOREIGN APPLICANTS@z. (a) A certified public accountant of another
state or the holder of a certificate, license, or degree
authorizing the person to practice public accountancy in a foreign
country may register with the board as a certified public
accountant of the other state or as the holder of a certificate,
license, or degree issued by the foreign country, if the board
determines that the standards under which the applicant was
certified or otherwise authorized to practice public accountancy
were at least as high as the standards of this state at the time
that authority was granted.
(b) To register with the board under this section, the
person must pay:
(1) the fee for issuance of a license as provided by
Section 901.154; and
(2) a processing fee in an amount set by the board not
to exceed $250.
(c) A person registered under this section may renew the
registration in the manner provided for renewal of a license under
Subchapter I.
(d) A person's registration under this section is
automatically revoked and may not be renewed if the person does not
maintain the authority to practice public accountancy in the other
state or country. The board shall adopt rules to ensure that the
person maintains that authority. (V.A.C.S. Art. 41a-1, Secs. 14(a)
(part), (b), (c), (d).)
+zSec. 901.356. TEMPORARY PRACTICE PERMIT FOR CERTAIN
OUT-OF-STATE OR FOREIGN APPLICANTS@z. A certified public accountant
of another state, a partnership or professional corporation
composed entirely of certified public accountants of another state,
or the holder of a certificate, license, or degree authorizing the
person to practice public accountancy in a foreign country may
temporarily practice in this state on professional business
incident to the person's regular practice outside this state if the
person:
(1) submits an application for a permit accompanied by
a fee in an amount not to exceed $100, as provided by board rule;
and
(2) conducts the temporary practice according to the
laws of this state and the board's rules of professional conduct.
(V.A.C.S. Art. 41a-1, Sec. 10(c).)
+zSections 901.357-901.400 reserved for expansion@z
+zSUBCHAPTER I. LICENSE REQUIREMENTS,
ISSUANCE, AND RENEWAL@z
+zSec. 901.401. LICENSE REQUIRED@z. (a) A person may not
practice public accountancy unless the person holds a license
issued under this chapter.
(b) Each office of a firm of certified public accountants or
public accountants must hold a license issued under this chapter to
engage in the practice of public accountancy. (V.A.C.S.
Art. 41a-1, Secs. 8(a) (part), (b) (part), (c) (part), (d) (part);
11(c) (part); 17(h) (part); 19(h) (part); 20 (part).)
+zSec. 901.402. ELIGIBILITY REQUIREMENTS; GENERAL PROHIBITION@z.
(a) On payment of the required fees, the board shall issue a
license to an applicant who:
(1) holds a certificate issued under this chapter; or
(2) is registered with the board under this chapter.
(b) The board may not issue a license to or renew the
license of a person who does not meet the licensing requirements
of:
(1) this chapter; or
(2) the rules adopted under this chapter. (V.A.C.S.
Art. 41a-1, Secs. 9(a), (f) (part).)
+zSec. 901.403. RENEWAL REQUIRED@z. (a) The board shall
provide for the renewal of a license. A person licensed under this
chapter must pay to the board a biennial license fee. On payment
of the required fee, the board shall renew the person's license for
a period of two years.
(b) A license expires on December 31 of the applicable year
or on another date as set by the board under Subsection (c). The
board shall provide that half of the licenses issued by the board
expire in each even-numbered year and that the other half expire in
each odd-numbered year. The board shall prorate the license fee
for a person whose license term is for less than two years as a
result of the board's providing for half of the licenses to expire
in consecutive years.
(c) The board by rule may adopt a system under which
licenses expire on a date other than December 31. For the biennium
in which the license expiration date is changed, license fees shall
be prorated on a monthly basis so that each license holder pays
only that portion of the fee that is allocable to the number of
months during which the license is valid. On renewal of the
license on the new expiration date, the total license renewal fee
is payable. (V.A.C.S. Art. 41a-1, Secs. 9(b) (part), (d).)
+zSec. 901.404. NOTICE OF LICENSE EXPIRATION@z. (a) Not later
than the 31st day before the expiration date of a person's license,
the board shall send written notice of the impending license
expiration to the person at the person's last known address
according to the board's records.
(b) The board shall determine the amount of the renewal fee
and shall mail notice of that amount to the person within the time
provided by Subsection (a). (V.A.C.S. Art. 41a-1, Secs. 9(b)
(part), (c) (part).)
+zSec. 901.405. PROCEDURE FOR RENEWAL@z. (a) A person may
renew an unexpired license by paying the required renewal fee to
the board before the expiration date of the license.
(b) A person whose license has been expired for 90 days or
less may renew the license by paying to the board the required
renewal fee and a late fee that is equal to half of the amount of
the initial examination fee for the license.
(c) If a person's license has been expired for more than 90
days but less than one year, the person may renew the license by
paying to the board all unpaid renewal fees and a late fee that is
equal to the amount of the initial examination fee for the license.
(V.A.C.S. Art. 41a-1, Sec. 9(c) (part).)
+zSec. 901.406. FEE INCREASE@z. (a) The fee for the issuance
of a certificate under this chapter and the fee for the issuance or
renewal of a license under this chapter is the amount of the fee
set by the board under Section 901.154 and a fee increase of $200.
(b) For each fee increase collected under this section, $50
shall be deposited to the credit of the foundation school fund and
$150 shall be deposited in the general revenue fund. (V.A.C.S.
Art. 41a-1, Secs. 9A(a), (c) (part).)
+zSec. 901.407. ADDITIONAL FEE@z. (a) Each license holder
shall pay to the board a biennial fee of $200 in each year that the
license holder is not required to pay a fee for the issuance or
renewal of a license. The fee provided for by this section is due
not later than the first anniversary of the date the license holder
was last required to pay a fee for the issuance or renewal of the
license.
(b) Not later than the 31st day before the date the
additional fee is due, the board shall send written notice that the
fee is due to the license holder at the license holder's last known
address according to the board's records.
(c) The board shall impose a late fee in an amount not less
than $50 on a license holder who does not pay the additional fee on
or before the date the fee is due. The board by rule may impose
additional late fees.
(d) Each additional fee collected under this section shall
be deposited as provided by Section 901.406(b). (V.A.C.S.
Art. 41a-1, Sec. 9A(b) (part).)
+zSec. 901.408. CONSEQUENCE OF FAILURE TO PAY CERTAIN FEES@z.
(a) A person who fails to pay the license renewal fee or the
additional fee imposed under Section 901.407, as applicable, and
any late fee before the first anniversary of the due date of the
renewal fee or additional fee may renew the person's license only
by submitting to the board an application for renewal accompanied
by payment of:
(1) all accrued fees, including late fees; and
(2) the direct administrative costs incurred by the
board in renewing the person's license.
(b) The board by rule shall prescribe the information to be
included in an application for renewal under this section.
(V.A.C.S. Art. 41a-1, Secs. 9(c) (part), 9A(b) (part).)
+zSec. 901.409. FEE REDUCTION FOR RETIRED OR DISABLED PERSONS@z.
The board by rule may establish a reduced fee to issue or renew the
license of a person who does not engage in the practice of public
accountancy because of retirement or permanent disability.
(V.A.C.S. Art. 41a-1, Sec. 9(e).)
+zSec. 901.410. FEE EXEMPTION FOR CERTAIN LICENSE HOLDERS@z.
The fee increase imposed under Section 901.406 and the additional
fee imposed under Section 901.407 do not apply to a license holder
who is:
(1) an employee of the federal government restricted
by virtue of that employment from engaging in the practice of
public accountancy outside the scope of employment; or
(2) an employee of a state agency that has authorized
the payment of the fee increase and additional fee for the license
holder. (V.A.C.S. Art. 41a-1, Secs. 9A(d), (e).)
+zSec. 901.411. CONTINUING PROFESSIONAL EDUCATION@z. (a) A
license holder who is an individual shall complete at least 120
hours of continuing professional education in each three-year
period, 20 hours of which must be completed in each one-year
period.
(b) The board may recognize a continuing professional
education course only if the course directly contributes to the
license holder's professional competence.
(c) The board by rule shall provide for the biennial
reporting of continuing professional education by a license holder
to coincide with the person's license renewal date.
(d) The board by rule may exempt certain license holders,
including license holders who are disabled, retired, or not
associated with accounting, as defined by board rule, from all or
part of the requirements of this section. (V.A.C.S. Art. 41a-1,
Sec. 15A.)
+zSections 901.412-901.450 reserved for expansion@z
+zSUBCHAPTER J. PRACTICE BY LICENSE HOLDER@z
+zSec. 901.451. USE OF TITLE OR ABBREVIATION FOR "CERTIFIED
PUBLIC ACCOUNTANT@z." (a) A person may not assume or use the title
or designation "certified public accountant," the abbreviation
"CPA," or any other title, designation, word, letter, abbreviation,
sign, card, or device tending to indicate that the person is a
certified public accountant, or a firm composed of certified public
accountants, unless:
(1) the person is certified or registered, as
appropriate, and licensed under this chapter; and
(2) each of the person's offices in this state for the
practice of public accounting is maintained and registered as
required under Subchapter H.
(b) The title or designation "certified public accountant"
and the abbreviation "CPA" may not be used in connection with an
office that is required to be under the supervision of a resident
manager under Section 901.353 unless the resident manager holds a
certificate and a license issued under this chapter. (V.A.C.S.
Art. 41a-1, Secs. 8(a) (part), (b) (part); 10(a) (part); 11(e); 16;
17(d).)
+zSec. 901.452. USE OF TITLE OR ABBREVIATION FOR "PUBLIC
ACCOUNTANT@z." A person may not assume or use the title or
designation "public accountant" or any other title, designation,
word, letter, abbreviation, sign, card, or device tending to
indicate that the person is a public accountant, or a firm composed
of public accountants, unless:
(1) the person is certified or registered, as
appropriate, and licensed under this chapter; and
(2) each of the person's offices in this state for the
practice of public accounting is maintained and registered as
required under Subchapter H. (V.A.C.S. Art. 41a-1, Secs. 8(c)
(part), (d) (part); 18; 19(d).)
+zSec. 901.453. USE OF OTHER TITLES OR ABBREVIATIONS@z. (a)
Except as provided by Subsection (b), a person may not assume or
use:
(1) a title or designation likely to be confused with
"certified public accountant" or "public accountant," including
"certified accountant," "chartered accountant," "enrolled
accountant," or "licensed accountant"; or
(2) an abbreviation likely to be confused with "CPA,"
including "CA," "PA," "EA," "RA," or "LA."
(b) A person may hold the person out to the public as an
"accountant," "auditor," or any combination of those terms if:
(1) the person holds a license issued under this
chapter; and
(2) each of the person's offices in this state for the
practice of public accounting is maintained and registered as
required under Subchapter H. (V.A.C.S. Art. 41a-1, Sec. 8(e)
(part).)
+zSec. 901.454. TITLE USED BY CERTAIN OUT-OF-STATE OR FOREIGN
ACCOUNTANTS@z. (a) A person who is an accountant of another state
or foreign country may use the title under which the accountant is
generally known in the state or country from which the accountant
received a certificate, license, or degree, followed by the name of
that state or country, if:
(1) the person is registered and holds a license
issued under this chapter; and
(2) each of the person's offices in this state for the
practice of public accountancy is maintained and registered as
required under Subchapter H.
(b) A person registered under Section 901.355 shall
represent to the public that the person is a certified public
accountant of the state that issued the certificate or use the
title held in the country from which the person received a
certificate, license, or degree, and shall indicate the name of the
state or country. (V.A.C.S. Art. 41a-1, Secs. 8(a) (part), (e)
(part); 14(a) (part).)
+zSec. 901.455. NAME REQUIREMENTS AND RESTRICTIONS@z. (a) The
name or designation assumed or used by a license holder must
include:
(1) the individual's name, if the license holder is an
individual;
(2) the name of at least one current or former
partner, if the license holder is a partnership; or
(3) the name of at least one current or former
shareholder, if the license holder is a corporation.
(b) A license holder may not assume or use a name that is
misleading as to the legal form of the license holder's firm or as
to the persons who are partners, officers, or shareholders of the
firm. A firm licensed under this chapter may assume or use the
designation "and company" or "and associates," or any abbreviation
of those terms, only if at least two persons licensed under this
chapter are involved in the practice of the firm.
(c) A corporation registered and licensed under this chapter
may practice public accountancy under a corporate name indicating
that it is engaged in that practice.
(d) A license holder may not use a trade name or descriptive
words indicating the character or grade of service offered, except
as authorized by board rule. (V.A.C.S. Art. 41a-1, Secs. 8(g),
(h); 20 (part).)
+zSec. 901.456. USE OF NAME OR SIGNATURE ON CERTAIN DOCUMENTS@z.
(a) Unless a person is in compliance with this chapter, the person
may not sign on or affix to an accounting or financial statement,
or an opinion on, report on, or certificate to an accounting or
financial statement, the person's name or a trade or assumed name
used by the person in the person's profession or business with any
wording indicating that the person:
(1) is an accountant or auditor; or
(2) has expert knowledge in accounting or auditing.
(b) This section does not prohibit:
(1) a partner, officer, employee, or principal of an
organization from signing a statement or report regarding the
financial affairs of the organization with wording that designates
the position, office, or title held by the person in the
organization; or
(2) any act of a public official or public employee in
the performance of the person's duties as a public official or
public employee. (V.A.C.S. Art. 41a-1, Sec. 8(f).)
+zSec. 901.457. ACCOUNTANT-CLIENT PRIVILEGE@z. (a) A license
holder or a partner, officer, shareholder, or employee of a license
holder may not voluntarily disclose information communicated to the
license holder by a client in connection with services provided to
the client in the practice of public accountancy, except with the
permission of the client or the client's representative.
(b) This section does not prohibit a license holder from
disclosing information that is required to be disclosed:
(1) by the professional standards for reporting on the
examination of a financial statement;
(2) in a court proceeding;
(3) in an investigation or proceeding conducted by the
board;
(4) in an ethical investigation conducted by a
professional organization of certified public accountants; or
(5) in the course of a quality review under Section
901.159. (V.A.C.S. Art. 41a-1, Sec. 26.)
+zSec. 901.458. LOSS OF INDEPENDENCE@z. (a) In this section,
"direct labor cost" means:
(1) the total compensation paid to a person who
performs services; and
(2) the employer payroll expenses related to that
compensation, including workers' compensation insurance premiums,
social security contributions, and unemployment taxes.
(b) A person creates a presumption of loss of independence
if the person:
(1) holds a certificate issued under this chapter or
is registered under this chapter; and
(2) performs or offers to perform a service involving
auditing skills for compensation that is less than the direct labor
cost reasonably expected to be incurred in performing the service.
(c) This section does not apply to the donation of services
to a charitable organization as defined by board rule. (V.A.C.S.
Art. 41a-1, Sec. 20A.)
+zSec. 901.459. APPLICABILITY OF PARTNERSHIP REQUIREMENTS TO
PARTNER@z. Each partner in a partnership governed by this chapter is
subject to the statutory requirements and rules that apply to the
partnership. (V.A.C.S. Art. 41a-1, Secs. 17(g), 19(g).)
+zSections 901.460-901.500 reserved for expansion@z
+zSUBCHAPTER K. PROHIBITED PRACTICES AND@z
+zDISCIPLINARY PROCEDURES@z
+zSec. 901.501. DISCIPLINARY POWERS OF BOARD@z. (a) On a
determination that a ground for discipline exists under Section
901.502, after notice and hearing as provided by Section 901.509,
the board may:
(1) revoke a certificate or registration issued under
this chapter;
(2) suspend under any terms a certificate,
registration, or license issued under this chapter for a period not
to exceed five years;
(3) refuse to renew a license;
(4) place a license holder on probation;
(5) reprimand a license holder;
(6) limit the scope of a license holder's practice;
(7) impose on a license holder the direct
administrative costs incurred by the board in taking action under
Subdivisions (1) through (6); or
(8) impose an administrative penalty under Subchapter
L.
(b) If an individual's license suspension is probated, the
board may require the individual to:
(1) report regularly to the board on matters that are
the basis of the probation;
(2) limit practice to the areas prescribed by the
board; or
(3) continue or renew professional education until the
license holder attains a degree of skill satisfactory to the board
in those areas that are the basis of the probation. (V.A.C.S.
Art. 41a-1, Secs. 21(b), (f), (h).)
+zSec. 901.502. GROUNDS FOR DISCIPLINARY ACTION@z. The board
may discipline a person under Section 901.501 for:
(1) fraud or deceit in obtaining a certificate,
registration, or license under this chapter;
(2) fraud, dishonesty, or gross negligence in the
practice of public accountancy, including knowingly participating
in the preparation of a false or misleading financial statement or
tax return;
(3) the failure of a person who is certified or
registered under this chapter to obtain a license not later than
the third anniversary of the date on which the person was certified
or registered;
(4) the failure of a person who is licensed under this
chapter to renew the license not later than the third anniversary
of the date on which the person most recently obtained or renewed
the license;
(5) a violation of Subchapter J, other than Section
901.457 or 901.459;
(6) a violation of a rule of professional conduct
adopted by the board;
(7) a revocation or suspension of the certificate or
registration or a revocation, suspension, or refusal to renew the
license of the person's partner or shareholder;
(8) a revocation, cancellation, or suspension by
another state, or a refusal of renewal by another state, of the
authority issued by that state to the person, or to the person's
partner or shareholder, to engage in the practice of public
accountancy for a reason other than the failure to pay the
appropriate registration fee;
(9) a revocation or suspension of, or a voluntary
consent decree concerning, the right of the person, or of the
person's partner or shareholder, to practice before a state or
federal agency for a reason the board determines warrants its
action;
(10) a final conviction of or the imposition of
deferred adjudication for an offense under the laws of any state or
the United States that:
(A) is a felony; or
(B) includes fraud or dishonesty as an element
of the offense; or
(11) conduct indicating lack of fitness to serve the
public as a professional accountant. (V.A.C.S. Art. 41a-1, Secs.
21(c), (g).)
+zSec. 901.503. BOARD ACTION INVOLVING APPLICANT@z. (a) On a
determination that a ground for discipline exists under Subsection
(b), after notice and hearing as provided by Section 901.509, the
board may:
(1) deny an individual's application to take the
uniform CPA examination;
(2) prohibit an individual from taking the uniform CPA
examination for a period not to exceed five years; or
(3) void an individual's uniform CPA examination
grades.
(b) The board may discipline an individual under Subsection
(a) for:
(1) fraud or deceit on an application for the uniform
CPA examination;
(2) cheating on the uniform CPA examination;
(3) a final conviction of or the imposition of
deferred adjudication for an offense under the laws of any state or
the United States that:
(A) is a felony; or
(B) includes fraud or dishonesty as an element
of the offense; or
(4) conduct indicating lack of fitness to serve the
public as a professional accountant.
(c) The board shall refund the examination fee submitted by
a person whose application for examination is denied under this
section. (V.A.C.S. Art. 41a-1, Sec. 21A.)
+zSec. 901.504. LICENSE REVOCATION BASED ON VIOLATION OF
CHAPTER@z. After notice and hearing as provided by Section 901.509,
the board:
(1) may revoke a license that was issued or renewed in
violation of this chapter or a rule adopted under this chapter; and
(2) shall revoke the registration and license of a
sole proprietorship, partnership, or corporation that does not meet
each qualification for registration prescribed by this chapter.
(V.A.C.S. Art. 41a-1, Secs. 9(f) (part), 21(e).)
+zSec. 901.505. PROCEDURE PENDING FINAL CONVICTION OF CERTAIN
OFFENSES@z. (a) On conviction of a person of an offense under the
laws of any state or the United States that is a felony or that
includes fraud or dishonesty as an element of the offense, after
notice and hearing as provided by Section 901.509, the board may:
(1) suspend a certificate or registration issued under
this chapter; or
(2) suspend or refuse to renew a license issued under
this chapter.
(b) The period of the suspension or refusal to renew begins
on the date of conviction and ends on the date the conviction
becomes final or is reversed, set aside, or modified as provided by
Subsection (d).
(c) If the conviction becomes final, the board may, without
further notice and hearing, take disciplinary action under Section
901.501.
(d) If the conviction is reversed, set aside, or modified so
that the underlying offense is not a felony or an offense that
includes fraud or dishonesty as an element of the offense, the
board shall reinstate the certificate, registration, or license
suspended under this section. A reinstatement under this
subsection does not limit the board's right to take other
disciplinary action authorized by this subchapter. (V.A.C.S.
Art. 41a-1, Sec. 21(d).)
+zSec. 901.506. VOLUNTARY SURRENDER OF CERTIFICATE OR
REGISTRATION@z. (a) Subject to board approval, an individual who
holds a certificate or registration issued under this chapter may
resign and surrender the certificate or registration to the board
at any time and for any reason.
(b) An individual who resigns and surrenders a certificate
or registration may not apply for reinstatement of the certificate
or registration. The individual may be issued a new certificate or
registration on completion of all requirements for the issuance of
an original certificate or registration. The board may not issue a
certificate to an individual who previously resigned a certificate
unless:
(1) after the date of resignation, the individual
completes the examination requirement for a new certificate; or
(2) on application, the board waives the examination
requirement.
(c) An individual who applies for a new certificate or
registration must, if applicable, disclose in the application the
fact that the individual previously resigned and surrendered a
certificate or registration during the course of a disciplinary
investigation or proceeding conducted by the board. The board
shall consider that fact in determining whether to issue a new
certificate or registration to the individual. (V.A.C.S.
Art. 41a-1, Sec. 21(a).)
+zSec. 901.507. REINSTATEMENT@z. On receipt of a written
application, and after notice and hearing, the board may:
(1) issue a new certificate to an individual whose
certificate was revoked;
(2) reregister a person whose registration was
revoked;
(3) reinstate a suspended license or modify the terms
of the suspension;
(4) approve a previously denied application to take
the uniform CPA examination; or
(5) reinstate an individual's previously voided
uniform CPA examination grades. (V.A.C.S. Art. 41a-1, Sec. 22(g).)
+zSec. 901.508. RIGHT TO HEARING@z. (a) If the board proposes
to take disciplinary action against a person under this subchapter,
the person is entitled to a hearing before the board or a hearings
officer appointed by the board.
(b) The board shall establish procedures by which a decision
to take disciplinary action under this subchapter is made by or is
appealable to the board. (V.A.C.S. Art. 41a-1, Sec. 22(b) (part).)
+zSec. 901.509. NOTICE OF HEARING@z. (a) The board shall
provide written notice of a hearing under this subchapter to the
person who is the subject of the proposed disciplinary action not
later than the 21st day before the date of the hearing.
(b) The notice must state:
(1) the time and place of the hearing; and
(2) the nature of each charge against the person.
(c) The notice may be served in person or by registered or
certified mail to the person's last known address. (V.A.C.S.
Art. 41a-1, Sec. 22(b) (part).)
+zSec. 901.510. LEGAL REPRESENTATION AT HEARING@z. The attorney
general or an attorney employed by the board shall represent the
board at each hearing under this subchapter. (V.A.C.S. Art. 41a-1,
Sec. 22(d).)
+zSections 901.511-901.550 reserved for expansion@z
+zSUBCHAPTER L. ADMINISTRATIVE PENALTY@z
+zSec. 901.551. IMPOSITION OF ADMINISTRATIVE PENALTY@z. The
board may impose an administrative penalty on a person regulated
under this chapter who violates this chapter or a rule or order
adopted under this chapter in a manner that constitutes a ground
for disciplinary action. (V.A.C.S. Art. 41a-1, Sec. 21D(a).)
+zSec. 901.552. AMOUNT OF PENALTY@z. (a) The amount of an
administrative penalty may not exceed $1,000 for each violation.
(b) In determining the amount of the penalty, the board
shall consider:
(1) the seriousness of the violation, including:
(A) the nature, circumstances, extent, and
gravity of any prohibited act; and
(B) the hazard or potential hazard to the
public;
(2) the economic damage to property caused by the
violation;
(3) the history of previous violations;
(4) the amount necessary to deter a future violation;
(5) efforts to correct the violation; and
(6) any other matter that justice may require.
(V.A.C.S. Art. 41a-1, Sec. 21D(b).)
+zSec. 901.553. REPORT AND NOTICE OF VIOLATION AND PENALTY@z.
(a) If, after examination of a possible violation and the facts
relating to that violation, the board determines that a violation
has occurred, the board shall issue a preliminary report stating:
(1) the facts on which the determination is based;
(2) the fact that an administrative penalty is to be
imposed; and
(3) the amount of the penalty.
(b) Not later than the 10th day after the date the report is
issued, the board shall send a copy of the report by certified mail
to the person charged with the violation, together with a statement
of the person's right to a hearing relating to the alleged
violation and the amount of the penalty. (V.A.C.S. Art. 41a-1,
Secs. 21D(c), (d) (part).)
+zSec. 901.554. PENALTY TO BE PAID OR HEARING REQUESTED@z. (a)
Not later than the 20th day after the date the person receives the
report, the person may:
(1) make a written request for a hearing; or
(2) pay the administrative penalty to the board.
(b) Failure to request a hearing or pay the penalty within
the time provided by this section waives the right to a hearing
under this chapter.
(c) If the board determines without a hearing that the
person committed a violation and a penalty is to be imposed, the
board shall:
(1) provide written notice to the person of the
board's findings; and
(2) enter an order requiring the person to pay the
penalty. (V.A.C.S. Art. 41a-1, Sec. 21D(d) (part).)
+zSec. 901.555. HEARING@z. (a) If the person requests a
hearing, the board shall conduct a hearing in the manner provided
for a contested case hearing under Chapter 2001, Government Code.
(b) If the board determines after a hearing that the person
committed the alleged violation, the board shall:
(1) provide written notice to the person of the
findings established by the hearing and the amount of the
administrative penalty imposed; and
(2) enter an order requiring the person to pay any
penalty. (V.A.C.S. Art. 41a-1, Sec. 21D(d) (part).)
+zSec. 901.556. OPTIONS FOLLOWING DECISION: PAY OR APPEAL@z.
(a) Not later than the 30th day after the date the board's order
becomes final as provided by Section 2001.144, Government Code, the
person shall:
(1) pay the administrative penalty; or
(2) file a petition for judicial review contesting the
fact of the violation, the amount of the penalty, or both.
(b) Within the 30-day period, a person who acts under
Subsection (a)(2) may stay enforcement of the penalty by:
(1) paying the penalty to the board for placement in
an escrow account;
(2) giving to the board a supersedeas bond in a form
approved by the board that:
(A) is for the amount of the penalty; and
(B) is effective until judicial review of the
board's order is final; or
(3) filing with the board an affidavit of the person
stating that the person is financially unable to pay the penalty
and is financially unable to give the supersedeas bond.
(c) A person who fails to take action as provided by this
section waives the right to judicial review of the board's order.
(V.A.C.S. Art. 41a-1, Secs. 21D(e), (f), (g) (part).)
+zSec. 901.557. COLLECTION OF PENALTY@z. If the person does not
pay the administrative penalty and the enforcement of the penalty
is not stayed, the board may refer the matter to the attorney
general for collection of the penalty. (V.A.C.S. Art. 41a-1, Sec.
21D(g) (part).)
+zSec. 901.558. REMITTANCE OF PENALTY AND INTEREST@z. (a) If
after judicial review, the administrative penalty is reduced or is
not upheld by the court, the board shall:
(1) remit the appropriate amount, plus accrued
interest, to the person if the person paid the penalty; or
(2) execute a release of the bond if the person posted
a supersedeas bond.
(b) The interest paid under Subsection (a) is paid at the
rate charged on loans to depository institutions by the New York
Federal Reserve Bank. The interest shall be paid for the period
beginning on the date the penalty is paid and ending on the date
the penalty is remitted. (V.A.C.S. Art. 41a-1, Sec. 21D(i).)
+zSections 901.559-901.600 reserved for expansion@z
+zSUBCHAPTER M. OTHER PENALTIES@z
+zAND ENFORCEMENT PROVISIONS@z
+zSec. 901.601. INJUNCTION@z. (a) The board may bring an
action to enjoin a person from:
(1) using a title, designation, or abbreviation in
violation of Subchapter J; or
(2) engaging in an act or practice that constitutes
the practice of public accountancy, unless the person is licensed
under this chapter.
(b) An action under Subsection (a)(1) must be brought in
district court in:
(1) Travis County, if the person is licensed under
this chapter; or
(2) the county in which the person resides, if the
person is not licensed under this chapter.
(c) An action under Subsection (a)(2) must be brought in
district court in a county in which the person resides or has an
office. The board is not required to post a bond as a condition to
the issuance of the injunction. (V.A.C.S. Art. 41a-1, Secs. 8(i),
23(a).)
+zSec. 901.602. CRIMINAL PENALTY@z. (a) A person commits an
offense if the person violates this chapter. Each violation is a
separate offense.
(b) An offense under this section is a Class B misdemeanor.
(c) A complaint filed under this section must be filed in a
district court in:
(1) Travis County, if the complaint is filed against a
person who is registered or licensed under this chapter; or
(2) the county in which the person resides, if the
complaint is filed against a person who is not registered or
licensed under this chapter. (V.A.C.S. Art. 41a-1, Sec. 23(b).)
Chapters 902-950 reserved for expansion
(2) In SECTION 1 of the bill, amend the Table of Contents of
the proposed Occupations Code by striking the expansion clause
following Subtitle A, Title 5, and substituting the following:
CHAPTER 901. ACCOUNTANTS
Chapters 902-950 reserved for expansion
(3) On page 884, strike line 18 and substitute:
"(7) "Physical therapy aide" or "physical therapy
technician" means a person:".
(4) On page 940, line 27, strike "an occupational".
(5) On page 941, line 1, strike "therapy facility" and
substitute "a facility in which the practice of occupational
therapy is conducted".
(6) On page 943, line 13, strike "and performance".
(7) On page 1140, strike lines 3-7 and substitute the
following:
Sec. 505.106. EXPENSE REIMBURSEMENT. Each board member is
entitled to reimbursement for expenses incurred in traveling to and
from the business of the board at the rates provided in the General
Appropriations Act for state employees. A member may not receive
actual or necessary expenses except for travel to and from
meetings. (Sec. 50.004(e), Human Resources Code.)