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AN ACT
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relating to the continuation and functions of the Texas State Board |
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of Public Accountancy. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 901.006, Occupations Code, is amended to |
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read as follows: |
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Sec. 901.006. APPLICATION OF SUNSET ACT. The Texas State |
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Board of Public Accountancy is subject to Chapter 325, Government |
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Code (Texas Sunset Act). Unless continued in existence as provided |
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by that chapter, the board is abolished and this chapter expires |
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September 1, 2031 [2019]. |
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SECTION 2. Section 901.059, Occupations Code, is amended by |
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amending Subsection (b) and adding Subsection (d) to read as |
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follows: |
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(b) The training program must provide the person with |
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information regarding: |
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(1) the law governing board operations [this chapter]; |
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(2) the programs, functions, rules, and budget of |
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[operated by] the board; |
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(3) [the role and functions of the board;
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[(4)] the scope of and limitations on the rulemaking |
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authority [rules] of the board[, with an emphasis on the rules that
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relate to disciplinary and investigatory authority]; |
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(4) the types of board rules, interpretations, and |
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enforcement actions that may implicate federal antitrust law by |
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limiting competition or impacting prices charged by persons engaged |
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in a profession or business the board regulates, including any |
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rule, interpretation, or enforcement action that: |
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(A) regulates the scope of practice of persons in |
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a profession or business the board regulates; |
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(B) restricts advertising by persons in a |
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profession or business the board regulates; |
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(C) affects the price of goods or services |
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provided by persons in a profession or business the board |
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regulates; or |
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(D) restricts participation in a profession or |
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business the board regulates; |
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(5) [the current budget for the board;
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[(6)] the results of the most recent formal audit of |
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the board; |
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(6) [(7)] the requirements of: |
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(A) laws relating to [the] open meetings, [law,
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Chapter 551, Government Code;
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[(B) the] public information, [law, Chapter 552,
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Government Code;
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[(C) the] administrative procedure, and |
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disclosure of conflicts of interest [law, Chapter 2001, Government
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Code]; and |
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(B) [(D)] other laws applicable to members of the |
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board in performing their duties [relating to public officials,
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including conflict-of-interest laws]; and |
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(7) [(8)] any applicable ethics policies adopted by |
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the board or the Texas Ethics Commission. |
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(d) The executive director of the board shall create a |
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training manual that includes the information required by |
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Subsection (b). The executive director shall distribute a copy of |
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the training manual annually to each member of the board. Each |
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member of the board shall sign and submit to the executive director |
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a statement acknowledging that the member received and has reviewed |
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the training manual. |
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SECTION 3. Subchapter D, Chapter 901, Occupations Code, is |
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amended by adding Sections 901.164 and 901.169 to read as follows: |
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Sec. 901.164. OUTSIDE LEGAL COUNSEL. The board may not |
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contract with outside legal counsel to provide legal services to |
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the board, including representation of the board in a matter |
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referred to the State Office of Administrative Hearings, unless the |
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contract is approved by the attorney general as provided by Section |
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402.0212, Government Code, regardless of the source of money to be |
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used to pay the outside counsel. |
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Sec. 901.169. CRIMINAL HISTORY RECORD INFORMATION. (a) |
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The board shall require an individual to submit a complete and |
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legible set of fingerprints, on a form prescribed by the board, to |
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the board or to the Department of Public Safety for the purpose of |
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obtaining criminal history record information from the Department |
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of Public Safety and the Federal Bureau of Investigation if: |
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(1) the individual has not previously submitted |
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fingerprints for the purpose of the board obtaining criminal |
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history record information; and |
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(2) the individual: |
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(A) is an applicant to take the uniform CPA |
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examination; |
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(B) is an applicant for a certificate; |
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(C) is an owner or seeks to become an owner of a |
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certified public accountancy firm and the individual is not a |
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license holder, if requested by the board under Section 901.354(e); |
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(D) is an applicant for a license under |
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Subchapter I; or |
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(E) is an applicant for renewal of a license |
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under Subchapter I, unless the applicant is an individual who does |
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not engage in the practice of public accountancy because of |
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retirement or permanent disability. |
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(b) The board may not allow an individual to take the |
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uniform CPA examination or issue a certificate or license to an |
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individual who does not comply with the requirement of Subsection |
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(a). |
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(c) The board may administratively suspend or refuse to |
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renew the license of an individual who is an applicant for renewal |
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of a license under Subchapter I and who does not comply with the |
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requirement of Subsection (a). |
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(d) The board shall require a license holder who qualified |
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for an exemption described by Subsection (a)(2)(E) to comply with |
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the requirement of Subsection (a) if the license holder no longer |
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qualifies for the exemption. |
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(e) The board shall conduct a criminal history record |
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information check of each individual required to submit |
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fingerprints under Subsection (a) using information: |
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(1) provided by the individual under this section; and |
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(2) made available to the board by the Department of |
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Public Safety, the Federal Bureau of Investigation, and any other |
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criminal justice agency under Chapter 411, Government Code. |
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(f) The board may: |
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(1) enter into an agreement with the Department of |
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Public Safety to administer a criminal history record information |
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check required under this section; and |
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(2) authorize the Department of Public Safety to |
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collect from each applicant the costs incurred by the Department of |
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Public Safety in conducting the criminal history record information |
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check. |
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SECTION 4. Section 901.203, Occupations Code, is amended to |
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read as follows: |
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Sec. 901.203. COMPLAINT INFORMATION. (a) The board shall |
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maintain a system to promptly and efficiently act on complaints |
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filed with the board. The board shall maintain information about |
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parties to the complaint, the subject matter of the complaint, a |
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summary of the results of the review or investigation of the |
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complaint, and its disposition [a file on each written complaint
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filed with the board. The file must include:
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[(1) the name of the person who filed the complaint;
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[(2) the date the complaint is received by the board;
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[(3) the subject matter of the complaint;
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[(4)
the name of each person contacted in relation to
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the complaint;
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[(5)
a summary of the results of the review or
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investigation of the complaint; and
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[(6)
an explanation of the reason the file was closed,
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if the board closed the file without taking action other than to
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investigate the complaint]. |
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(b) The board shall make information available describing |
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its [provide to the person filing the complaint and to each person
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who is a subject of the complaint a copy of the board's policies
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and] procedures for [relating to] complaint investigation and |
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resolution. |
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(c) The board[, at least quarterly until final disposition
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of the complaint,] shall periodically notify the [person filing
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the] complaint parties [and each person who is a subject of the
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complaint] of the status of the complaint until final disposition |
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[investigation] unless the notice would jeopardize an undercover |
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investigation. |
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SECTION 5. Section 901.204, Occupations Code, is amended by |
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adding Subsections (c), (d), and (e) to read as follows: |
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(c) The board shall include on the agenda of each regular |
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board meeting an opportunity for public comment on each agenda item |
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or other issue before the board makes a decision on the item or |
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issue, except as otherwise provided by Subsection (d). |
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(d) The board may prohibit public comment at a meeting of |
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the board regarding an active investigation or enforcement |
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proceeding by the board. |
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(e) The board may not require a person who wishes to make a |
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public comment at a meeting of the board to notify the board in |
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advance of the meeting. |
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SECTION 6. Section 901.252, Occupations Code, is amended to |
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read as follows: |
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Sec. 901.252. ELIGIBILITY REQUIREMENTS. To be eligible to |
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receive a certificate, a person must: |
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(1) satisfy the requirements of [be of good moral
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character as determined under] Section 901.253; |
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(2) meet the education requirements established under |
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Section 901.254 or 901.255; |
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(3) pass the uniform CPA examination; |
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(4) meet the work experience requirements established |
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under Section 901.256; and |
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(5) pass an examination on the rules of professional |
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conduct as determined by board rule. |
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SECTION 7. The heading to Section 901.253, Occupations |
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Code, is amended to read as follows: |
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Sec. 901.253. BACKGROUND [CHARACTER] INVESTIGATION. |
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SECTION 8. Section 901.253(a), Occupations Code, is amended |
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to read as follows: |
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(a) The board shall ensure that an applicant to take the |
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uniform CPA examination or to receive a certificate lacks a [is of
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good moral character as demonstrated by a lack of] history of |
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dishonest or felonious acts. The board shall require each applicant |
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to comply with the requirements of Section 901.169(a). |
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SECTION 9. Section 901.309, Occupations Code, is amended to |
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read as follows: |
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Sec. 901.309. REEXAMINATION. A person who fails all or part |
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of an examination may apply for a subsequent examination, subject |
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to the board's satisfaction that the person meets the requirements |
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of this chapter relating to the person's background investigation |
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[moral character] and education. |
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SECTION 10. Sections 901.351(a-1), (b), and (e), |
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Occupations Code, are amended to read as follows: |
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(a-1) A firm is required to hold a firm license under this |
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subchapter if the firm [:
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[(1)] establishes or maintains an office in this state |
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[; or
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[(2) performs for an entity with its principal office in
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this state:
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[(A) a financial statement audit or other
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engagement that is to be performed in accordance with the
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Statements on Auditing Standards;
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[(B) an examination of prospective financial
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information that is to be performed in accordance with the
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Statements on Standards for Attestation Engagements; or
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[(C) an engagement that is to be performed in
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accordance with auditing standards of the Public Company Accounting
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Oversight Board or its successor]. |
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(b) The board shall grant or renew a firm license to |
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practice as a certified public accountancy firm to: |
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(1) a firm that applies and demonstrates the necessary |
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qualifications in accordance with this subchapter; or |
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(2) a firm originally licensed as a certified public |
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accountancy firm in another state that [:
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[(A) is required to hold a firm license under
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Subsection (a-1); and
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[(B)] demonstrates the necessary qualifications |
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in accordance with this subchapter. |
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(e) The board by rule shall specify: |
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(1) the form of the application for a firm license; |
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(2) the fee for an original or renewal firm license, |
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which may be based on the number of owners, members, partners, |
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shareholders, or employee license holders in this state, not to |
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exceed $25 for each of those persons; [and] |
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(3) the term of a firm license; and |
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(4) the requirements for renewal of a firm license. |
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SECTION 11. Section 901.353(a), Occupations Code, is |
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amended to read as follows: |
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(a) An office established or maintained in this state by a |
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firm of certified public accountants, a firm of public accountants, |
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or a person described by Section 901.355 must designate [be under
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the direct supervision of] a resident manager who is responsible |
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for the license of the firm or person, as applicable. The resident |
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manager must be [who]: |
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(1) [is] an owner, member, partner, shareholder, or |
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employee of the firm or person that occupies the office; and |
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(2) [is] licensed under this chapter. |
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SECTION 12. Sections 901.354(b), (e), and (f), Occupations |
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Code, are amended to read as follows: |
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(b) A certified public accountancy firm may include |
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individuals as owners who are not license holders if: |
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(1) the firm designates to the board as responsible |
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for the firm's license [and the supervision of the firm:
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[(A)] a license holder who resides in this |
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state[; or
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[(B)
if the firm is required under Section
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901.351(a-1)(2) to hold a firm license, an individual practicing
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under a privilege under Section 901.462]; |
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(2) each owner who is not a license holder and who is a |
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resident of this state as determined by board rule: |
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(A) is actively involved in the firm or an |
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affiliated entity; |
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(B) lacks a [is of good moral character as
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demonstrated by a lack of] history of dishonest or felonious acts; |
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(C) [holds a baccalaureate or graduate degree
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conferred by a college or university acceptable to the board or
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equivalent education as determined by the board;
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[(D)] maintains any professional designation |
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held by the individual in good standing with the appropriate |
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organization or regulatory body that is identified or used in an |
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advertisement, letterhead, business card, or other firm-related |
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communication; |
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(D) [(E)] has passed an examination on the rules |
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of professional conduct as determined by board rule; and |
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(E) [(F)] complies with the rules of |
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professional conduct as determined by board rule; [and
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[(G)
maintains professional continuing education
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applicable to license holders as required by board rule;] and |
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(3) the firm and the owners who are not license holders |
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comply with board disciplinary actions and other requirements the |
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board may impose by rule. |
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(e) The board may require an individual who is not a license |
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holder under this chapter to comply with the requirement of Section |
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901.169(a) [submit a complete set of fingerprints]. If the |
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individual does not comply with the requirement of that subsection |
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[provide the complete set of fingerprints] on request, the board |
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may refuse to allow that individual to become an owner of a |
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certified public accountancy firm and may cancel or refuse to issue |
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or renew a firm license to the firm. |
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(f) An applicant for issuance or renewal of a firm license |
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under this section must register each office of the firm in this |
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state and show that all attest services performed in this state [and
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each office in this state] are under the supervision of a person who |
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holds a certificate issued under this chapter or by another state. |
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SECTION 13. Section 901.402(a), Occupations Code, is |
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amended to read as follows: |
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(a) On payment of the required fees, the board shall issue a |
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license to an applicant who complies with the requirement of |
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Section 901.169(a) and: |
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(1) holds a certificate issued under this chapter; or |
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(2) holds a firm license issued under this chapter. |
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SECTION 14. Section 901.403, Occupations Code, is amended |
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by adding Subsection (c) to read as follows: |
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(c) The board shall require an applicant for renewal of a |
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license to comply with the requirement of Section 901.169(a). |
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SECTION 15. The heading to Section 901.409, Occupations |
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Code, is amended to read as follows: |
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Sec. 901.409. FEE REDUCTION FOR RETIRED PERSONS OR |
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[DISABLED] PERSONS WITH DISABILITIES. |
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SECTION 16. Section 901.411(d), Occupations Code, is |
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amended to read as follows: |
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(d) The board by rule may exempt certain license holders, |
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including license holders who are persons with disabilities |
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[disabled], retired, or not associated with accounting, as defined |
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by board rule, from all or part of the requirements of this section. |
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SECTION 17. Section 901.451(c), Occupations Code, is |
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amended to read as follows: |
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(c) The title or designation "certified public accountant" |
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and the abbreviation "CPA" may not be used in connection with an |
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office that does not meet the requirements of Sections 901.353 and |
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901.354 [is required to be under the supervision of a resident
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manager under Section 901.353 unless the resident manager holds a
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certificate and a license issued under this chapter]. |
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SECTION 18. Sections 901.461(a) and (b), Occupations Code, |
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are amended to read as follows: |
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(a) A certified public accountancy firm that is not licensed |
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in this state but is licensed [and has its primary place of
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business] in another state [and is not required to hold a firm
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license under Section 901.351(a-1)] may practice in this state |
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without a firm license or notice to the board if the firm's practice |
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in this state is performed by an individual who holds a license |
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under this chapter or who practices under a privilege under Section |
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901.462. |
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(b) A firm described by Subsection (a) may exercise all the |
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practice privileges of a firm license holder, except that the firm |
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[:
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[(1) may not perform the services described by Section
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901.351(a-1); and
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[(2)] may perform the services described by Section |
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901.002(a)(1) [Sections 901.002(a)(1)(B) and (D)] for an entity |
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with its home office in this state only if: |
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(1) [(A)] the firm meets the ownership requirements of |
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Sections 901.354(a) and (b); |
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(2) [(B)] the firm complies with the board's peer |
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review program under Section 901.159; and |
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(3) [(C)] the services are performed by an individual |
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who holds a license under this chapter or practices under a |
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privilege under Section 901.462. |
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SECTION 19. Subchapter M, Chapter 901, Occupations Code, is |
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amended by adding Section 901.6011 to read as follows: |
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Sec. 901.6011. INJUNCTIVE RELIEF. (a) The attorney |
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general at the request of the board may petition a district court |
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for an injunction to prohibit a person who is violating this chapter |
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from continuing the violation. |
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(b) Venue in a suit for injunctive relief is in Travis |
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County. |
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(c) After application and a finding that a person is |
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violating this chapter, the district court shall grant the |
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injunctive relief the facts warrant. |
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SECTION 20. Section 901.656(a), Occupations Code, is |
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amended to read as follows: |
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(a) The board[, in consultation with the advisory committee
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appointed under Section 901.657,] shall determine the maximum |
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amount of any scholarship awarded under this subchapter. The |
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scholarship may be spent by the recipient on the expenses for |
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tuition, fees, books, supplies, and living expenses incurred by the |
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student in connection with the student's fifth year of an |
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accounting program. Scholarships shall be made available to |
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eligible students attending: |
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(1) any institution of higher education; or |
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(2) any nonprofit independent institution approved by |
|
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the Texas Higher Education Coordinating Board under Section 61.222, |
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Education Code. |
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SECTION 21. The following provisions of the Occupations |
|
|
Code are repealed: |
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(1) Section 901.163; |
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(2) Sections 901.253(b) and (c); |
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(3) Section 901.351(d); |
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(4) Section 901.462(e); and |
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(5) Section 901.657. |
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SECTION 22. (a) Except as provided by Subsection (b) of |
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this section, Section 901.059, Occupations Code, as amended by this |
|
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Act, applies to a member of the Texas State Board of Public |
|
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Accountancy appointed before, on, or after the effective date of |
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this Act. |
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(b) A member of the Texas State Board of Public Accountancy |
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who, before the effective date of this Act, completed the training |
|
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program required by Section 901.059, Occupations Code, as that law |
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existed before the effective date of this Act, is only required to |
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complete additional training on the subjects added by this Act to |
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the training program required by Section 901.059, Occupations Code. |
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A board member described by this subsection may not vote, |
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deliberate, or be counted as a member in attendance at a meeting of |
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the board held on or after December 1, 2019, until the member |
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completes the additional training. |
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(c) Section 901.164, Occupations Code, as added by this Act, |
|
|
applies only to an original contract entered into on or after the |
|
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effective date of this Act. An original contract entered into |
|
|
before the effective date of this Act is governed by the law as it |
|
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existed immediately before the effective date of this Act, and that |
|
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law is continued in effect for that purpose. |
|
|
(d) The Texas State Board of Public Accountancy shall |
|
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require each applicant for renewal of a license under Subchapter I, |
|
|
Chapter 901, Occupations Code, to first comply with the requirement |
|
|
of Section 901.169(a), Occupations Code, as added by this Act, not |
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later than September 1, 2021. Notwithstanding Sections |
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901.169(a)(2)(E) and 901.403(c), Occupations Code, as added by this |
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Act, an applicant for renewal of a license is not required to comply |
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with Section 901.169(a) until first required to by the board as |
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provided by this subsection. |
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(e) Section 901.203, Occupations Code, as amended by this |
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Act, applies only to a complaint filed with the Texas State Board of |
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Public Accountancy on or after the effective date of this Act. A |
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complaint filed before the effective date of this Act is governed by |
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the law in effect on the date the complaint was filed, and the |
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former law is continued in effect for that purpose. |
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(f) Sections 901.252, 901.253, and 901.309, Occupations |
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Code, as amended by this Act, apply only to an application submitted |
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to the Texas State Board of Public Accountancy on or after the |
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effective date of this Act. An application submitted before the |
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effective date of this Act is governed by the law in effect on the |
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date the application was submitted, and the former law is continued |
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in effect for that purpose. |
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(g) As soon as possible after the effective date of this |
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Act, the Texas State Board of Public Accountancy shall adopt or |
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amend any rules necessary to implement the changes in law made by |
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this Act to Chapter 901, Occupations Code. |
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SECTION 23. This Act takes effect September 1, 2019. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 1520 was passed by the House on April |
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3, 2019, by the following vote: Yeas 147, Nays 0, 2 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 1520 on May 10, 2019, by the following vote: Yeas 104, Nays 0, |
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1 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 1520 was passed by the Senate, with |
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amendments, on May 3, 2019, by the following vote: Yeas 30, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |