Source: http://www.sos.state.tx.us/texreg/archive/March242017/Proposed%20Rules/22.EXAMINING%20BOARDS.html
Timestamp: 2018-01-16 23:12:16
Document Index: 429474877

Matched Legal Cases: ['§463', '§463', '§463', '§465', '§463', '§463', '§463', '§463', '§501', '§501', '§501', '§501', '§511', '§511', '§511', '§511', '§521', '§512', '§901', '§901', '§901', '§512', '§512', '§512', '§512', '§512', '§512', '§512', '§511', '§511', '§512', '§901', '§901', '§512', '§512', '§512', '§512', '§513', '§513', '§513', '§513', '§513', '§513', '§901', '§901', '§513', '§513', '§513', '§2006', '§513', '§513', '§513', '§513', '§513', '§513', '§513', '§513', '§513', '§501', '§301', '§901', '§501', '§901', '§501', '§501', '§513', '§513', '§513', '§513', '§513', '§513', '§513', '§513', '§514', '§514', '§514', '§514', '§521', '§515', '§515', '§515', '§515', '§515', '§515', '§515', '§515', '§515', '§515', '§515', '§515', '§901', '§501', '§901', '§901', '§901', '§901', '§535', '§1101']

Darrel D. Spinks, Executive Director, has determined that for the first five-year period the proposed amendment will be in effect, there will be no fiscal implications for state or local governments as a result of enforcing or administering the rule.
Comments on the proposed amendment may be submitted to Brenda Skiff, Texas State Board of Examiners of Psychologists, 333 Guadalupe, Ste 2-450, Austin, Texas 78701, within 30 days of publication of this proposal in the Texas Register. Comments may also be submitted via fax to (512) 305-7701, or via email to brenda@tsbep.texas.gov.
The amendment is proposed under Texas Occupations Code, Title 3, Subtitle I, Chapter 501, which provides the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and Laws of this State, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it.
[(4) Three acceptable reference letters from three different psychologists, two of whom are licensed or were licensed at the time of applicant's training and none of whom are related to the applicant within the second degree of affinity or within the second degree of consanguinity. The reference letters must be dated no earlier than six months prior to the date the application is received by the Board;]
(4) [(5)] A criminal history record check of the applicant from the Texas Department of Public Safety and the Federal Bureau of Investigation;
(5) [(6)] Supportive documentation and other materials the Board may deem necessary, including current employment arrangements and the name of all jurisdictions where the applicant currently holds a certificate or license to practice psychology; and
(6) [(7)] A written explanation and/or meeting with the Board or a committee of the Board, prior to final approval, if the application file contains any negative reference letters.
TRD-201700947
The Texas State Board of Examiners of Psychologists proposes an amendment to §463.9, Licensed Specialist in School Psychology. The proposed amendment is being offered to align the rule with recommendation 3.8 in the Sunset Staff report.
§463.9.Licensed Specialist in School Psychology.
(C) the score that the applicant received on the School Psychology Examination sent directly from the Education Testing Service.[; and]
[(3) Reference letters from three different individuals licensed as psychologists or specialists in school psychology, or credentialed in school psychology in their respective jurisdictions.]
(b) Training Qualifications.
(c) Completion of internship.
(1) Applicants must have completed a minimum of 1200 hours, of which 600 must be in a public school. A formal internship or other site-based training must be provided through a formal course of supervised study from a regionally accredited institution of higher education in which the applicant was enrolled or be obtained in accordance with Board rule §463.11(c)(1) and (c)(2)(C) of this title (relating to Licensed Psychologist). The internship in the public school must be supervised by an individual qualified in accordance with Board rule §465.38 of this title (relating to Psychological Services in the Schools). Internship which is not obtained in a public school must be supervised by a licensed psychologist. No experience with a supervisor who is related within the second degree of affinity or within the second degree by consanguinity to the person, or is under Board disciplinary order, may be considered for specialist in school psychology licensure. Internships may not involve more than two sites (a school district is considered one site) and must be obtained in not less than one or more than two academic years. These individuals must be designated as interns. Direct, systematic supervision must involve a minimum of one face-to-face contact hour per week or two consecutive face-to-face contact hours once every two weeks with the intern. The internship must include direct intern application of assessment, intervention, behavior management, and consultation, for children representing a range of ages, populations and needs.
(2) Applicants must have completed an internship with a minimum of 1200 hours. The internship must also meet the following criteria:
(A) At least 600 of the internship hours must have been completed in a public school.
(B) The internship must be provided through a formal course of supervised study from a regionally accredited institution of higher education in which the applicant was enrolled; or the internship must have been obtained in accordance with Board rule §463.11(d)(1) and (d)(2)(C) of this title.
(C) Any portion of an internship completed within a public school must be supervised by a Licensed Specialist in School Psychology, and any portion of an internship not completed within a public school must be supervised by a Licensed Psychologist.
(D) No experience which is obtained from a supervisor who is related within the second degree of affinity or consanguinity to the supervisee may be utilized.
(E) Unless authorized by the Board, supervised experience received from a supervisor practicing with a restricted license may not be utilized to satisfy the requirements of this rule.
(F) Internship hours must be obtained in not more than two placements. A school district, consortium, and educational co-op are each considered one placement.
(G) Internship hours must be obtained in not less than one or more than two academic years.
(H) An individual completing an internship under this rule must be designated as an intern.
(I) Interns must receive no less than two hours of supervision per week, with no more than half being group supervision. The amount of weekly supervision may be reduced, on a proportional basis, for interns working less than full-time.
(J) The internship must include direct intern application of assessment, intervention, behavior management, and consultation, for children representing a range of ages, populations and needs.
(3) Paragraph (2) of this subsection, along with all of its subparts, shall take effect, supersede, and take the place of paragraph (1) of this subsection on September 1, 2017.
(g) Provision of psychological services in the public schools by unlicensed individuals. An unlicensed individual may provide psychological services under supervision in the public schools if:
(1) the individual is enrolled in an internship, practicum or other site based training in a psychology program in a regionally accredited institution of higher education;
(2) the individual has completed an internship that meets the requirements of this rule, and has submitted an application for licensure as a Licensed Specialist in School Psychology to the Board that has not been denied, returned, or gone void under Board rule §463.2 of this title (relating to Application Process; or
(3) the individual has been issued a trainee status letter.
TRD-201700948
The Texas State Board of Examiners of Psychologists proposes an amendment to §463.10, Provisionally Licensed Psychologists.
The proposed amendment will eliminate the reference letter requirement for provisional licensure in accordance with Management Recommendation No. 3.8 on pg. 24 of the Sunset Commission Staff Report. The proposed amendment will also restrict the issuance of provisional trainee status letters to one per applicant, so as to avoid the potential for fraud and abuse, and will serve to eliminate unnecessary language in subsection (d).
§463.10.Provisionally Licensed Psychologists.
(H) The curriculum shall encompass a minimum of two academic years of full-time graduate studies for those persons who have enrolled in the doctoral degree program after completing the requirements for a master's degree. The curriculum shall encompass a minimum of four academic years of full-time graduate studies for those persons who have entered a doctoral program following the completion of a baccalaureate degree and prior to the awarding of a master's degree. It is recognized that educational institutions vary in their definitions of full-time graduate studies. It is also recognized that institutions vary in their definitions of residency requirements for the doctoral degree.
(c) An applicant for provisional licensure as a psychologist who is accredited by Certificate of Professional Qualification in Psychology (CPQ) or the National Register or who is a specialist of ABPP will have met the following requirements for provisional licensure: submission of an official transcript which indicates the date the doctoral degree in psychology was awarded or conferred, and submission of documentation of the passage of the national psychology examination at the doctoral level at the Texas cut-off score.[, and submission of three acceptable reference letters.] All other requirements for provisional licensure must be met by these applicants. Additionally, these applicants must provide documentation sent directly from the qualifying entity to the Board office declaring that the applicant is a current member in the organization and has had no disciplinary action from any state or provincial health licensing board.
[(6) This subsection, along with all of its subparts, shall take effect on September 1, 2016.]
TRD-201700949
SUBCHAPTER C. RESPONSIBILITIES TO CLIENTS
22 TAC §501.75
The Texas State Board of Public Accountancy (Board) proposes an amendment to §501.75, concerning Confidential Client Communications.
The amendment to §501.75 allows CPAs to turn over the records of their former client to a successor entity.
Mr. Treacy has determined that for the first five-year period the amendment is in effect the public benefits expected as a result of adoption of the proposed amendment will be clarification of the application of confidentiality and the requirement of a licensee to notice the loss of control over client records.
Written comments may be submitted to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe, Tower 3, Suite 900, Austin, Texas 78701 or faxed to his attention at (512) 305-7854, no later than noon on April 24, 2017.
§501.75.Confidential Client Communications.
(a) Except by permission of the client or the authorized representatives of the client, a person or any partner, member, officer, shareholder, or employee of a person shall not voluntarily disclose information communicated to him by the client relating to, and in connection with, professional accounting services or professional accounting work rendered to the client by the person. Such information shall be deemed confidential. The following includes, but is not limited to, examples of authorized representatives:
(1) the authorized representative of a successor entity becomes the authorized representative of the predecessor entity when the predecessor entity ceases to exist and no one exists to give permission on behalf of the predecessor entity; and
(2) an executor/administrator of the estate of a deceased client possessing an order signed by a judge is an authorized representative of the estate.
(b) The provisions contained in subsection (a) of this section do not prohibit the disclosure of information required to be disclosed [by]:
(1) by the professional standards for reporting on the examination of a financial statement and identified in Chapter 501, Subchapter B of this title (relating to Professional Standards);
(2) by applicable federal laws, federal government regulations, including requirements of the PCAOB;
(3) under a summons or subpoena under the provisions of the Internal Revenue Code of 1986 and its subsequent amendments, a summons under the provisions of the Securities Act of 1933 (15 U.S.C. Section 77a et seq.) and its subsequent amendments, or a summons under the provisions of the Securities Exchange Act of 1934 (15 U.S.C. Section 78a et seq.) and its subsequent amendments, the Securities Act (Article 581-1 et seq., Vernon's Texas Civil Statutes); [or under a court order signed by a judge if the summons or the court order:]
[(A) is addressed to the license holder;]
[(B) mentions the client by name; and]
[(C) requests specific information concerning the client.]
(4) under a court order signed by a judge if the court order:
(C) requests specific information concerning the client.
(5) [(4)] by the public accounting profession in reporting on the examination of financial statements;
(6) [(5)] by a congressional or grand jury subpoena;
(7) [(6)] in investigations or proceedings conducted by the board [Board];
(8) [(7)] in ethical investigations conducted by a private professional organization of certified public accountants;
(9) [(8)] in a peer review; or
(10) [(9)] in the course of a practice [a] review by another CPA or CPA firm for a potential acquisition in conjunction with a prospective purchase, sale, or merger of all or part of a member's practice if both firms enter into a written nondisclosure agreement with regard to all client information shared between the firms.
(c) The provisions contained in subsection (a) of this section do not prohibit the disclosure of information already made public, including information disclosed to others not having a confidential communications relationship with the client or authorized representative of the client.
(d) A person in the client practice of public accountancy shall take all reasonable measures to maintain the confidentiality of the client records and shall immediately upon becoming aware of the loss of, or loss of control over, the confidentiality of those records notify the client affected in writing of the date and time of the loss if known. Loss includes a cybersecurity breach or other incident exposing the records to a third party or parties without the client's consent or the loss of the client records or the loss of control over the client records. Persons have a responsibility to maintain a back-up system in order to be able to immediately identify and notify clients of a loss. [Interpretive comment. The definition of a successor entity does not include the purchaser of all assets of an entity.]
(e) Interpretive comment. The definition of a successor entity as referenced in subsection (a)(1) of this section does not include the purchaser of all assets of an entity.
Filed with the Office of the Secretary of State on March 10, 2017.
TRD-201701011
22 TAC §511.80
The Texas State Board of Public Accountancy (Board) proposes an amendment to §511.80, concerning Granting of Credit.
The amendment to §511.80 will allow a three month extension to the normal 18 months that an applicant for the CPA certificate may retain their exam grade, to address the delay caused by the exam restructure.
Mr. Treacy has determined that for the first five-year period the amendment is in effect the public benefits expected as a result of adoption of the proposed amendment will be a fair application of the rule allowing 18 months before a passing score on the CPA exam will expire.
§511.80.Granting of Credit.
(a) The board shall grant credit to an applicant for the satisfactory completion of a section of the UCPAE provided the applicant earns a passing score on the section as determined by board rule. The credit shall be valid for 18 months from the actual date of notification of passing score results.
(b) An applicant must pass the remaining sections within the next 18 months. Should an applicant's exam credit be invalidated due to the expiration of 18 months without earning credit on the remaining sections, the applicant remains qualified to take the examination.
(c) An applicant receiving and retaining credit for every section on the UCPAE, within an 18-month period, subject to the limitations imposed by the Act, shall be considered by the board to have completed the examination and may make application for certification as a CPA.
(d) An applicant who has received and retained credit for any or all sections on the UCPAE may transfer such credits to another licensing jurisdiction if the applicant pays in advance a transfer fee set by board rule as identified in §521.7 of this title (relating to Fee for Transfer of Credits).
(e) An applicant who has credit on the UCPAE that will expire between April 1, 2017 and September 30, 2018 will have a three-month extension of the credit.
(f) An applicant who took the UCPAE from April 1, 2017 through May 31, 2017 and receives credit will have a three-month extension for the credit through March 31, 2019.
TRD-201701012
The amendment to §512.1 adds a provision for good moral character as a basis for reciprocity for the CPA certificate in Texas.
Mr. Treacy has determined that for the first five-year period the amendment is in effect the public benefits expected as a result of adoption of the proposed amendment will be to clarify the application of moral character to licensure.
(a) The certificate of a "certified public accountant" shall be granted by reciprocity to an applicant who is qualified under §901.259 of the Act (relating to Certification Based on Reciprocity) or §901.260 of the Act (relating to Certificate Based on Foreign Credentials) and is of good moral character as described in §901.253 of the Act (relating to Character Investigation). The applicant must provide [has provided] in the application for reciprocity the names of all the jurisdictions in which the applicant is or has been certified and/or licensed and [has provided] all disciplinary actions taken or pending in those jurisdictions.
(b) An applicant from a domestic jurisdiction demonstrates that he meets the requirements for certification by reciprocity by:
(A) the applicant holds a certificate or license to practice public accountancy from a domestic jurisdiction that has been determined by the board pursuant to §512.2 of this chapter (relating to National Association of State Boards of Accountancy Verified Substantially Equivalent Jurisdictions) as having substantially equivalent requirements for certification; or
(c) An applicant from a foreign jurisdiction demonstrates that he meets the requirements for certification by reciprocity by:
TRD-201701013
J. Randal (Jerry) Hill
22 TAC §512.2
The Texas State Board of Public Accountancy (Board) proposes an amendment to §512.2, concerning NASBA Verified Substantially Equivalent Jurisdictions.
The amendment to §512.2 adds a comma in subsection (a).
Mr. Treacy has determined that for the first five-year period the amendment is in effect the public benefits expected as a result of adoption of the proposed amendment will be a more streamlined rule.
§512.2.NASBA Verified Substantially Equivalent Jurisdictions.
(a) NASBA's National Qualification Appraisal Service may verify that the education, examination and experience requirements for certification of another domestic jurisdiction are comparable to or exceed the education, examination and experience requirements for certification contained in the UAA, and the board finds that the education, examination and experience requirements for certification contained in the UAA are comparable to or exceed the education, examination and experience requirements for certification contained in the Act.
(b) The board designates each domestic jurisdiction verified by NASBA as being substantially equivalent pursuant to subsection (a) of this section as an approved domestic jurisdiction for certification by reciprocity under this chapter and for registration of out-of-state practitioners with substantially equivalent qualifications under Chapter 513 of this title (relating to Registration).
(c) An applicant who has a valid certificate to practice as a CPA from a domestic jurisdiction that has not been verified as substantially equivalent to the UAA by NASBA may obtain a verification from NASBA's National Qualification Appraisal Service that the applicant's education, examination and experience are comparable to or exceed the education, examination and experience requirements for certification contained in the UAA.
(d) The board shall consider an applicant whose education, examination and experience have been verified by NASBA to be substantially equivalent as being from an approved substantially equivalent domestic jurisdiction for certification by reciprocity under this chapter and for registration of out-of-state practitioners with substantially equivalent qualifications under Chapter 513 of this title.
TRD-201701014
The Texas State Board of Public Accountancy (Board) proposes an amendment to §512.4, concerning Application for Certification by Reciprocity.
The amendment to §512.4 mirrors the new language found in §511.22 and §511.162.
Mr. Treacy has determined that for the first five-year period the amendment is in effect the public benefits expected as a result of adoption of the proposed amendment will be a clarification of the application process.
§512.4.Application for Certification by Reciprocity.
(a) An applicant seeking certification by reciprocity must apply for certification on a form prescribed by the board. The application must be accompanied by the requisite fee and shall include written authorization from the applicant empowering the board to obtain all information concerning the applicant's qualifications and present standing.
(b) An applicant for certification by reciprocity from a domestic jurisdiction that has not been approved as being substantially equivalent by both NASBA and the board must submit the following along with the completed application form and requisite fee to be processed:
(1) an interstate exchange of information form documenting the credits under the domestic jurisdiction of origin;
(2) an executed oath of office stating support of the Constitutions of the United States and of the State of Texas and their laws and the rules of the board;
[(3) documentation of qualifying work experience if applying under §901.259(a)(1)(E) of the Act (relating to Certification Based on Reciprocity);]
[(4) if not applying under §901.259(a)(1)(E) of the Act, official college transcripts;]
[(5) a recent photograph of the applicant;]
(3) [(6)] evidence of completion of an examination on the board's Rules of Professional Conduct;
(4) [(7)] evidence of completion of 120 hours of CPE during the last three years, including a board-approved four-hour ethics course; in compliance with Chapter 523 of this title (relating to Continuing Professional Education);
(5) [(8)] evidence of completion of the board's procedure to investigate the moral character of applicants in accordance with the established fingerprint process that accesses the Federal Bureau of Investigation (FBI) database and the Texas Department of Public Safety - Crime Records division files [an FBI fingerprint card to be used for a criminal background investigation]; and
(6) [(9)] any other information requested by the board.
(c) An applicant for certification by reciprocity from a domestic jurisdiction that has been approved as being substantially equivalent by both NASBA and the board must submit the following along with the completed application form and requisite fee to be processed:
(1) a certificate of good standing as a CPA from a domestic jurisdiction approved by both NASBA and the board as being substantially equivalent;
(2) if requested, a certificate of verification of substantial equivalency of the domestic jurisdiction of origin from NASBA;
(3) an executed oath of office stating support of the Constitutions of the United States and of the State of Texas and their laws and the rules of the board;
[(4) a recent photograph of the applicant;]
(4) evidence of completion of an examination on the board's Rules of Professional Conduct;
(5) evidence of completion of 120 hours of CPE during the last three years, including a board-approved four-hour ethics course [on the board's Rules of Professional Conduct]; in compliance with Chapter 523 of this title (relating to Continuing Professional Education);
(6) evidence of completion of the board's procedure to investigate the moral character of applicants in accordance with the established fingerprint process that accesses the Federal Bureau of Investigation (FBI) database and the Texas Department of Public Safety - Crime Records division files [an FBI fingerprint card to be used for a criminal background investigation]; and
(d) An applicant for certification by reciprocity from a foreign jurisdiction that has been approved as being substantially equivalent by both U.S. IQAB and the board must submit the following along with the completed application form and requisite fee to be processed:
(1) a certificate of good standing of credentials to practice public accountancy from the foreign jurisdiction of origin;
[(3) a recent photograph of the applicant;]
(3) [(4)] evidence of a passing grade on the IQEX;
(4) [(5)] evidence of a passing grade on a board approved examination on the board's Rules of Professional Conduct;
(5) [(6)] evidence of the completion of a board-approved four-hour ethics course;
(6) [(7)] evidence of completion of the board's procedure to investigate the moral character of applicants in accordance with the established fingerprint process that accesses the Federal Bureau of Investigation (FBI) database and the Texas Department of Public Safety - Crime Records division files [an FBI fingerprint card to be used for a criminal background investigation]; and
(7) [(8)] any other information requested by the board.
(e) All correspondence and supporting documentation submitted to the board shall be in English or accompanied by a certified translation into English of such documents.
TRD-201701015
22 TAC §512.5
The Texas State Board of Public Accountancy (Board) proposes an amendment to §512.5, concerning Examination Authorization.
The amendment to §512.5 clarifies that an applicant needs a passing score.
Mr. Treacy has determined that for the first five-year period the amendment is in effect the public benefit expected as a result of adoption of the proposed amendment will be a more streamlined rule.
§512.5.Examination Authorization.
The board approves a passing score on the IQEX, written and graded by the AICPA as a measure of professional competency satisfactory to obtain a Texas certificate by reciprocity from a foreign jurisdiction.
TRD-201701016
SUBCHAPTER A. REGISTRATION OF CPAS OF OTHER STATES AND PERSONS HOLDING SIMILAR TITLES IN FOREIGN COUNTRIES
22 TAC §513.1
The Texas State Board of Public Accountancy (Board) proposes an amendment to §513.1, concerning Registration of Foreign Practitioners with Substantially Equivalent Qualifications.
The amendment to §513.1 incorporates language from proposed repealed rules §513.2 and §513.3.
Mr. Treacy has determined that for the first five-year period the amendment is in effect the public benefits expected as a result of adoption of the proposed amendment will be a clarification of the application process for a foreign applicant to be certified.
§513.1.Registration of Foreign Practitioners with Substantially Equivalent Qualifications.
(a) An individual who holds a valid certificate or other credential issued by a foreign jurisdiction that allows the individual to practice public accountancy in the issuing jurisdiction may, if that certificate or credential remains in good standing in the issuing jurisdiction, be registered [make application for registration] with the board. [upon a prescribed form. The application must be accompanied by the requisite fee and must include written authorization empowering the board to obtain all information concerning the applicant's qualifications and the requirements for licensing by the issuing foreign jurisdiction.]
(b) A foreign practitioner registered with the board shall be allowed to use the title "Certified Public Accountant of __________" (indicating the foreign jurisdiction that issued his credential), or may use the title held in the foreign jurisdiction that issued his credential, provided that the foreign jurisdiction is indicated. This title may not be used unless followed by the name of the foreign jurisdiction.
(c) A foreign practitioner registered with the board must comply with the board's Code of Professional Conduct.
(d) A foreign practitioner registered with the board must renew his registration and license annually in the manner provided for renewal of a license in the Act. The registered foreign practitioner must submit a certificate verifying the continued existence of his foreign certificate or other credential in good standing from the foreign jurisdiction of origin with each renewal. A registration and license issued under §901.355 of the Act (relating to Registration for Certain Foreign Applicants) is automatically revoked if the foreign practitioner does not continue to hold a current certificate or other credential from the foreign jurisdiction of origin.
(e) Interpretive comment: The provisions of this chapter are no longer applicable to foreign applicants wishing to provide accounting services in Texas. Foreign applicants shall apply for certification by reciprocity pursuant to Chapter 512 of this title (relating to Certification by Reciprocity) and §901.259 of the Act (relating to Certification Based on Reciprocity).
TRD-201701017
22 TAC §513.2
The Texas State Board of Public Accountancy (Board) proposes the repeal of §513.2, concerning Application for Registration of Foreign Practitioners.
The repeal of §513.2 is necessary because the rule is no longer applicable.
Mr. Treacy has determined that for the first five-year period the repeal is in effect the public benefits expected as a result of adoption of the proposed repeal will be a more streamlined chapter.
The Board specifically invites comments from the public on the issues of whether or not the proposed repeal will have an adverse economic effect on small businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed repeal is to be adopted, finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. See Texas Government Code, §2006.002(c).
§513.2.Application for Registration of Foreign Practitioners.
TRD-201701018
22 TAC §513.3
The Texas State Board of Public Accountancy (Board) proposes the repeal of §513.3, concerning Board Approval of Foreign Practitioner Registration.
The repeal of §513.3 is necessary because the rule is no longer applicable.
§513.3.Board Approval of Foreign Practitioner Registration.
TRD-201701019
22 TAC §513.10
The Texas State Board of Public Accountancy (Board) proposes an amendment to §513.10, concerning Firm License.
The amendment to §513.10 deletes an unnecessary rule reference and clarifies who within a firm must supervise attest services.
Mr. Treacy has determined that for the first five-year period the amendment is in effect the public benefits expected as a result of adoption of the proposed amendment will be clarification of the requirements for firm licensure.
§513.10.Firm License.
(a) A [Except as provided for in §501.81(d) of this title (relating to Firm License Requirements), a] firm providing attest services or using the titles CPAs, CPA Firm, Certified Public Accountants, Certified Public Accounting Firm, Auditing Firm, or a variation of any of those titles shall do so only through a licensed firm.
(b) To be eligible for a firm license, the firm must show:
(1) that a majority of the ownership of the firm, in terms of both financial interests and voting rights, belongs to individuals who hold certificates issued under this chapter or are licensed as a CPA in another state; or
(2) that when the firm ownership includes professional organizations, as defined in §301.003(7) of the Texas Business Organizations Code, the professional organizations must be owned by individuals that hold a certificate issued under this chapter or are licensed in another state; and
(3) that all attest services performed by the firm in this state are under the supervision of an individual within the firm who holds a certificate issued by the board or by another state that has not been suspended or revoked.
(c) Financial interests shall include but shall not be limited to stock shares, capital accounts, capital contributions, and equity interests of any kind. Financial interests also include contractual rights and obligations similar to those of partners, shareholders or other owners of an equity interest in a legal entity.
(d) Voting rights shall include but shall not be limited to any right to vote on the firm's ownership, business, partners, shareholders, management, profits, losses and/or equity ownership.
(e) Interpretive comment: A licensee offering non-attest services as defined in §901.005 of the Act (relating to Findings; Public Policy; Purpose) through an unlicensed firm in accordance with §501.81(d) of this title may not use the CPA designation in the unlicensed firm's name. For example: John Smith may not use the firm name "John Smith, CPA" unless the firm is licensed by the board.
(f) Interpretive comment: §901.351(a) of the Act (relating to Firm License Required), §501.81(a) of this title and subsection (a) of this section require a firm license in order to use the [title] CPA designation except as provided for in §501.81(d) of this title.
(g) Interpretive comment: A professional organization includes a professional corporation or professional limited liability company.
TRD-201701020
22 TAC §513.13
The Texas State Board of Public Accountancy (Board) proposes an amendment to §513.13, concerning Certification of Corporate Franchise Tax Status.
The amendment to §513.13 revises language in subsection (b) to match language in subsection (a).
§513.13.Certification of Texas [Corporate] Franchise Tax Status.
(a) Each firm subject to the Texas franchise tax must certify in its application for a firm license that its Texas franchise taxes are current.
(b) The making of a false statement as to Texas [corporate] franchise tax status on any license application or renewal as described in subsection (a) of this section is grounds for suspension or revocation of the license.
TRD-201701021
22 TAC §513.15
The Texas State Board of Public Accountancy (Board) proposes an amendment to §513.15, concerning Firm Offices.
The amendment to §513.15 clarifies the exemption requirement of Texas residency for resident managers.
§513.15.Firm Offices.
(a) A certified public accountancy firm must hold a license for each office located in Texas.
(b) Each office of a firm must be under the direct supervision of a resident manager who is a resident of Texas. Exempted from the requirement of Texas residency is a resident manager who spends a majority of the work week in Texas as the firm's [on-site in the office for which the licensee is the firm] resident manager. A resident manager may be an owner, member, partner, shareholder, or employee of the firm and must be licensed under the Act.
(c) A resident manager may supervise more than one office provided that the firm's application for issuance or renewal of the firm license or registration identifies each of the offices the resident manager will supervise.
(d) A resident manager is responsible for the supervision of professional services and may be held responsible for the violations of the Act or Rules for the activities of each office under his supervision.
(e) Interpretive comment: The exemption provided for in subsection (b) of this section is intended to address licensees residing outside of Texas but are able to commute to the Texas office for which the licensee is the firm resident manager on a routine and regular basis.
TRD-201701022
J. Randall (Jerry) Hill
22 TAC §514.3
The Texas State Board of Public Accountancy (Board) proposes an amendment to §514.3, concerning Replacement Certificates.
The amendment to §514.3 deletes unnecessary language.
§514.3.Replacement Certificates.
(a) Replacement certificates may be issued by the board in appropriate cases and upon payment by the CPA of the fee as determined by the board in §521.11 of this title (relating to Fee for a Replacement Certificate). A certificate holder is specifically prohibited from possessing more than one Texas certificate as a CPA.
(b) When a replacement certificate is requested, the certificate holder must [return the original certificate or] submit an [a sworn] affidavit describing the occurrence that necessitated the replacement certificate.
TRD-201701023
22 TAC §515.3
The Texas State Board of Public Accountancy (Board) proposes an amendment to §515.3, concerning License Renewals for Individuals and Firm Offices.
The amendment to §515.3 deletes the word "toll."
§515.3.License Renewals for Individuals and Firm Offices.
(a) License renewals for individuals shall be as follows:
(1) Licenses for individuals have staggered expiration dates based on the last day of the individual's birth month. The license will be issued for a 12-month period following the initial licensing period.
(2) An individual's license will not be renewed if the individual has not earned the required CPE credit hours, has not completed all required parts of the renewal or has not completed the affidavit affirming the renewal submitted is correct.
(3) At least 30 days before the expiration of an individual's license, the board shall send notice of the impending license expiration to the individual at the last known address according to board records. Failure to receive notice does not relieve the licensee from the responsibility to timely renew nor excuse, [toll,] or otherwise affect the renewal deadlines imposed on the licensee.
(b) License renewal requirements for firm offices shall be as follows:
(1) Licenses for offices of firms have staggered expiration dates for payment of fees, which are due the last day of a board assigned renewal month. All offices of a firm will have the same renewal month. All offices of a firm will be issued a license for a 12-month period following the initial licensing period.
(2) At least 30 days before the expiration of a firm's office license, the board shall send notice of the impending license expiration to the main office of the firm at the last known address according to the records of the board. Failure to receive notice does not relieve the firm from the responsibility to timely renew nor excuse, [toll,] or otherwise affect the renewal deadlines imposed on the firm.
(3) A firm's office license shall not be renewed unless the sole proprietor, each partner, officer, director, or shareholder of the firm who is listed as a member of the firm and who is certified or registered under the Act has a current individual license. This does not apply to firms providing work pursuant to the practice privilege provisions of this title.
(4) If a firm is subject to peer review, then a firm's office license shall not be renewed unless the office has met the peer review requirements as defined in Chapter 527 of this title (relating to Peer Review).
TRD-201701024
22 TAC §515.4
The Texas State Board of Public Accountancy (Board) proposes an amendment to §515.4, concerning License Expiration.
The amendment to §515.4 replaces the word "will" with "shall."
§515.4.License Expiration.
(a) Failure to submit to the board a completed renewal notice, the renewal fee and any other required documents before the license expiration date shall [will] result in the expiration of the individual's or the firm's license(s).
(b) Failure to submit to the board a completed renewal notice, the renewal fee and any other required documents for three consecutive years may result in the revocation of the individual's certificate.
TRD-201701025
22 TAC §515.5
The Texas State Board of Public Accountancy (Board) proposes an amendment to §515.5, concerning Reinstatement of a Certificate or License in the Absence of a Violation of the Board's Rules of Professional Conduct.
The amendment to §515.5 clarifies the process by which an individual, in the absence of a violation of a Rules of Professional Conduct, can reinstate their license.
Mr. Treacy has determined that for the first five-year period the amendment is in effect the public benefits expected as a result of adoption of the proposed amendment will be clarification of the process for reinstatement of a license.
§515.5.Reinstatement of a Certificate or License in the Absence of a Violation of the Board's Rules of Professional Conduct.
(a) An individual whose license has been expired for 90 days or less may renew the license by paying to the board a renewal fee that is equal to 1 1/2 times the normally required renewal fee.
(b) An individual whose license has been expired for more than 90 days but less than one year may renew the license by paying to the board a renewal fee that is equal to two times the normally required renewal fee.
(c) An individual whose license has been expired for at least one year but less than two years may renew the license by paying to the board a renewal fee that is equal to three times the normally required renewal fee.
(d) An individual whose license has been expired for two years or more may obtain a license by paying all renewal fees including late fees.
(e) An individual whose license has been suspended or certificate [expired four or more years and whose certificate has been] revoked for the voluntary non-payment of the annual license fees, the voluntary non-completion of the annual license renewal, or the voluntary non-completion of the board required CPE may[, upon a showing of good cause,] be administratively reinstated by complying with the board's CPE requirements pursuant to Chapter 523 of this title (relating to Continuing Professional Education), and
(1) by paying all renewal fees including late fees, or
(2) [(1)] upon showing of good cause, entering into an Agreed Consent Order that reinstates the certificate and permits the issuance of a conditional license with the agreement to pay all required fees by a certain date. [; and]
[(2) agreeing to comply with the board's CPE requirements pursuant to Chapter 523 of this title (relating to Continuing Professional Education).]
[(f) An individual whose certificate has been voluntarily surrendered or voluntarily resigned, absent a board disciplinary action and whose license has been expired four or more years may, upon a showing of good cause, be administratively reinstated by:]
[(1) entering into an Agreed Consent Order that reinstates the certificate, and permits the issuance of a conditional license with the agreement to pay all required fees by a certain date; and]
[(2) agreeing to comply with the board's CPE requirements pursuant to Chapter 523 of this title.]
(f) [(g)] An individual who was revoked under §901.502(3) or (4) of the Act (relating to Grounds for Disciplinary Action), has moved to another state, and is currently licensed and has been in practice in the other state for the two years preceding the date of submitting a complete application may obtain a new license without reexamination by:
(1) providing the board with a complete application including evidence of the required licensure;
(2) demonstrating that the out of state license is no more than 90 days beyond the normal expiration date of the license;
(3) paying the board a fee that is equal to two times the normally required renewal fee for the license; and
(4) meeting the other requirements for licensing.
(g) [(h)] If the certificate, license, or registration was suspended, or revoked for non-payment of annual license fees, failure to complete the annual license renewal, or failure to comply with §501.94 of this title (relating to Mandatory Continuing Professional Education), upon written application the executive director will decide on an individual basis whether the renewal fees including late fees must be paid for those [the license] years [of suspension or revocation] and whether any fee exemption is applicable.
(h) [(i)] Interpretive Comment: Effective September 1, 2015, when calculating the renewal fee provided for in subsections (a) - (d) of this section, the professional fee that was required by §901.406 and §901.407 of the Act (relating to Fee Increase and Additional Fee) will no longer be included in the renewal fee. However, when calculating any renewal fees accrued prior to September 1, 2015, the professional fee that was required by §901.406 and §901.407 of the Act will be included in the renewal fee.
TRD-201701026
The proposed amendments to §535.64 allows credit for an elective qualifying course that is an advanced version of a qualifying course listed in the rule or a combination course consisting of a variety of subject matter topics from qualifying courses listed in the rule.
(4) other than Property Management, Real Estate Marketing, and Real Estate Math meet the requirements of §1101.003 of the Act; [or]
(5) Residential Inspection for Real Estate Agents (or equivalent), which shall include but is not limited to:
(A) repair-related contract forms and addenda;
(B) inspector and client agreements;
(C) inspection standards of practice and standard inspection report form;
(D) tools and procedures;
(E) electromechanical systems (plumbing, heating, air conditioning, appliances, energy-saving considerations); and
(F) structures (lot and landscape, roofs, chimney, gutters, paved areas, walls, windows and doors, insect damage and storage areas); or[.]
(6) A 30 hour advanced course on any qualifying course subject matter or a combination of several different qualifying course subject matter topics as set out in subsections (a) and (b) of this section.
TRD-201700873