reglab/statecodes huggingface dataset:
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter J. Practice of Public Accountancy › Section 901.453. Use of Other Titles or Abbreviations

Sec. 901.453.  USE OF OTHER TITLES OR ABBREVIATIONS.  (a)  Except as provided by Subsection (b), a person may not assume or use:
(1)  a title or designation likely to be confused with "certified public accountant" or "public accountant," including "certified accountant," "chartered accountant," "enrolled accountant," "licensed accountant," "registered accountant," or "accredited accountant";  or
(2)  an abbreviation likely to be confused with "CPA," including "CA," "PA," "EA," "RA," "LA," or "AA."
(b)  A person may hold the person out to the public as an "accountant," "auditor," or any combination of those terms or assert that the person has expertise in accounting or auditing only if:
(1)  the person holds a license issued under this chapter and each of the person's offices in this state for the practice of public accounting is maintained and practices under a firm license as required under Subchapter H; or
(2)  the person practices under a privilege under Section 901.461 or 901.462.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 1497, Sec. 29, eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 315 (H.B. 2144), Sec. 10, eff. September 1, 2007.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter J. Practice of Public Accountancy › Section 901.454. Title Used by Certain Out-of-State or Foreign Accountants

Sec. 901.454.  TITLE USED BY CERTAIN OUT-OF-STATE OR FOREIGN ACCOUNTANTS.  (a)  A person who is an accountant of another state may use the title under which the accountant is generally known in the state from which the accountant received a certificate, license, or degree if:
(1)  the person holds a license issued under this chapter or practices in this state under a privilege under Section 901.461 or 901.462; and
(2)  any of the person's offices established or maintained in this state for the practice of public accountancy are licensed under this chapter.
(b)  A person who holds a certification, degree, license, or other credential granted in a foreign jurisdiction that entitles the person to engage in the practice of public accountancy or its equivalent in that jurisdiction may use in this state any title or designation under which the person practices in the foreign jurisdiction, followed by a translation of the title or designation into English if it is in a different language and by the name of that jurisdiction, if:
(1)  the person's activities in this state are limited to the provision of professional accounting services to persons who are residents, governments, or business entities of that foreign jurisdiction;  and
(2)  the person does not perform attest services or issue reports on the financial statements of any other person in this state.
(c)  A person registered under Section 901.355 shall use the title held in the country from which the person received a certificate, license, or degree, and shall indicate the name of the country.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 1497, Sec. 29, eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 315 (H.B. 2144), Sec. 11, eff. September 1, 2007.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter J. Practice of Public Accountancy › Section 901.455. Name Requirements and Restrictions

Sec. 901.455.  NAME REQUIREMENTS AND RESTRICTIONS.  (a)  The name or designation assumed or used by a license holder must include:
(1)  the individual's name, if the license holder is an individual;
(2)  the name of at least one current or former partner, if the license holder is a partnership;  or
(3)  the name of at least one current or former shareholder, if the license holder is a corporation.
(b)  A license holder may not assume or use a name that is misleading as to the legal form of the license holder's firm or as to the persons who are partners, officers, or shareholders of the firm.  A firm licensed under this chapter may assume or use the designation "and company" or "and associates," or any abbreviation of those terms, only if at least two persons licensed under this chapter are involved in the practice of the firm.
(c)  A corporation that is licensed under this chapter may practice public accountancy under a corporate name indicating that it is engaged in that practice.
(d)  A license holder may not use a trade name or descriptive words indicating the character or grade of service offered, except as authorized by board rule.
(e)  A firm that practices under Section 901.461 must use the firm name that it uses in the state in which it is licensed and has its principal place of business.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 1497, Sec. 30, eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 315 (H.B. 2144), Sec. 12, eff. September 1, 2007.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter J. Practice of Public Accountancy › Section 901.457. Accountant-Client Confidentiality

Sec. 901.457.  ACCOUNTANT-CLIENT CONFIDENTIALITY.  (a)  A license holder or a partner, member, officer, shareholder, or employee of a license holder may not voluntarily disclose information communicated to the license holder or a partner, member, shareholder, or employee of the license holder by a client in connection with services provided to the client by the license holder or a partner, member, shareholder, or employee of the license holder, except with the permission of the client or the client's representative.
(b)  This section does not prohibit a license holder from disclosing information that is required to be disclosed:
(1)  by the professional standards for reporting on the examination of a financial statement;
(2)  under a summons or subpoena under the provisions of the Internal Revenue Code of 1986 and its subsequent amendments, the Securities Act of 1933 (15 U.S.C. Section 77a et seq.) and its subsequent amendments, the Securities Exchange Act of 1934 (15 U.S.C. Section 78a et seq.) and its subsequent amendments, or The Securities Act (Title 12, Government Code);
(3)  under a court order signed by a judge if the order:
(A)  is addressed to the license holder;
(B)  mentions the client by name; and
(C)  requests specific information concerning the client;
(4)  in an investigation or proceeding conducted by the board;
(5)  in an ethical investigation conducted by a professional organization of certified public accountants;
(6)  in the course of a peer review under Section 901.159 or in accordance with the requirements of the Public Company Accounting Oversight Board or its successor; or
(7)  in the course of a practice review by another certified public accountant or certified public accountancy firm for a potential acquisition or merger of one firm with another, if both firms enter into a nondisclosure agreement with regard to all client information shared between the firms.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 1497, Sec. 31, eff. Sept. 1, 2001.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 36 (S.B. 228), Sec. 2, eff. September 1, 2013.
Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 2.38, eff. January 1, 2022.
Acts 2023, 88th Leg., R.S., Ch. 447 (H.B. 2217), Sec. 10, eff. June 9, 2023.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter J. Practice of Public Accountancy › Section 901.458. Loss of Independence

Sec. 901.458.  LOSS OF INDEPENDENCE.  (a)  In this section, "direct labor cost" means:
(1)  the total compensation paid to a person who performs services;  and
(2)  the employer payroll expenses related to that compensation, including workers' compensation insurance premiums, social security contributions, costs of participating in retirement plans, group insurance costs, and unemployment taxes.
(b)  A person creates a presumption of loss of independence if the person:
(1)  holds a certificate or firm license issued under this chapter;  and
(2)  performs or offers to perform an attest service for compensation that is less than the direct labor cost reasonably expected to be incurred in performing the service.
(c)  This section does not apply to the donation of services to a charitable organization as defined by board rule.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 1497, Sec. 32, eff. Sept. 1, 2001.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter J. Practice of Public Accountancy › Section 901.459. Applicability of Partnership Requirements to Partner

Sec. 901.459.  APPLICABILITY OF PARTNERSHIP REQUIREMENTS TO PARTNER.  Each partner in a partnership governed by this chapter is subject to the statutory requirements and rules that apply to the partnership.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter J. Practice of Public Accountancy › Section 901.460. Performing Attest Services

Sec. 901.460.  PERFORMING ATTEST SERVICES.  (a)  A certificate holder may perform attest services only in a certified public accountancy firm.
(b)  An individual who is a license holder or practices under a privilege under Section 901.462 and who is responsible for supervising attest services or signs or authorizes another person to sign an accountant's reports on financial statements on behalf of a certified public accountancy firm must meet the competency requirements of the professional standards that apply to those services.
Added by Acts 2001, 77th Leg., ch. 1497, Sec. 33, eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 315 (H.B. 2144), Sec. 14, eff. September 1, 2007.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter J. Practice of Public Accountancy › Section 901.461. Practice by Certain Out-of-State Firms

Sec. 901.461.  PRACTICE BY CERTAIN OUT-OF-STATE FIRMS.  (a)  A certified public accountancy firm that is not licensed in this state but is licensed in another state may practice in this state without a firm license or notice to the board if the firm's practice in this state is performed by an individual who holds a license under this chapter or who practices under a privilege under Section 901.462.
(b)  A firm described by Subsection (a) may exercise all the practice privileges of a firm license holder, except that the firm may perform the services described by Section 901.002(a)(1) for an entity with its home office in this state only if:
(1)  the firm meets the ownership requirements of Sections 901.354(a) and (b);
(2)  the firm complies with the board's peer review program under Section 901.159; and
(3)  the services are performed by an individual who holds a license under this chapter or practices under a privilege under Section 901.462.
(c)  A firm practicing under a privilege under this section, as a condition of the privilege of practicing without a firm license:
(1)  is subject to the personal and subject matter jurisdiction and disciplinary authority of the board;
(2)  must comply with this chapter and board rules; and
(3)  is considered to have appointed the regulatory agency of the state that issued the firm's license as the firm's agent on whom process may be served in any action or proceeding by the board against the firm.
(d)  A firm practicing under a privilege under this section shall promptly cease offering or rendering professional services in this state if the firm's license to practice as a certified public accountancy firm in the state in which the firm's primary place of business is no longer valid.
Added by Acts 2007, 80th Leg., R.S., Ch. 315 (H.B. 2144), Sec. 15, eff. September 1, 2007.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 181 (H.B. 1520), Sec. 18, eff. September 1, 2019.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter K. Prohibited Practices and Disciplinary Procedures › Section 901.501. Disciplinary Powers of Board

Sec. 901.501.  DISCIPLINARY POWERS OF BOARD.  (a)  On a determination that a ground for discipline exists under Section 901.502, after notice and hearing as provided by Section 901.509, the board may:
(1)  revoke a certificate, firm license, or practice privilege issued under this chapter;
(2)  suspend under any terms a certificate, firm license, practice privilege, or license issued under this chapter for a period not to exceed five years;
(3)  refuse to renew a license;
(4)  place a license holder on probation;
(5)  reprimand a license holder;
(6)  limit the scope of a license holder's practice;
(7)  require a license holder to complete a peer review program conducted in the manner prescribed by the board;
(8)  require a license holder to complete a continuing education program specified by the board;
(9)  impose on a license holder the direct administrative costs incurred by the board in taking action under Subdivisions (1) through (8);
(10)  require a license holder to pay restitution as provided by Section 901.6015;
(11)  impose an administrative penalty under Subchapter L;  or
(12)  impose any combination of the sanctions provided by this subsection.
(b)  If a person's license suspension is probated, the board may require the person to:
(1)  report regularly to the board on matters that are the basis of the probation;
(2)  limit practice to the areas prescribed by the board;  or
(3)  continue or renew professional education until the license holder attains a degree of skill satisfactory to the board in those areas that are the basis of the probation.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 1497, Sec. 34, eff. Sept. 1, 2001;  Acts 2003, 78th Leg., ch. 525, Sec. 20, eff. Sept. 1, 2003.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter K. Prohibited Practices and Disciplinary Procedures › Section 901.502. Grounds for Disciplinary Action

Sec. 901.502.  GROUNDS FOR DISCIPLINARY ACTION.  The board may discipline a person under Section 901.501 for:
(1)  fraud or deceit in obtaining a certificate, firm license, or license under this chapter;
(2)  fraud, dishonesty, or gross negligence in the performance of services as a license holder, including:
(A)  knowingly participating in the preparation of a false or misleading financial statement or tax return;  or
(B)  failing to file the license holder's own income tax return;
(3)  the failure of a person who is certified or required to hold a firm license under this chapter to obtain a license not later than the third anniversary of the date on which the person was certified or required to obtain a firm license;
(4)  the failure of a person who is licensed under this chapter to renew the license not later than the third anniversary of the date on which the person most recently obtained or renewed the license;
(5)  a violation of Subchapter J;
(6)  a violation of a rule of professional conduct adopted by the board;
(7)  a revocation or suspension of the certificate or firm license or a revocation, suspension, or refusal to renew the license of the person's partner, member, or shareholder;
(8)  a revocation, cancellation, placement on probation, limitation on the scope of practice, or suspension by another state, or a refusal of renewal by another state, of the authority issued by that state to the person, or to the person's partner, member, or shareholder, to engage in the practice of public accountancy for a reason other than the failure to pay the appropriate authorization fee;
(9)  a revocation or suspension of, or a voluntary consent decree concerning, the right of the person, or of the person's partner, member, or shareholder, to practice before a state or federal agency for a reason the board determines warrants its action;
(10)  a final conviction of or the imposition of deferred adjudication for an offense under the laws of any state or the United States that:
(A)  is a felony;  or
(B)  includes fraud or dishonesty as an element of the offense;
(11)  conduct indicating lack of fitness to serve the public as a professional accountant;  or
(12)  a violation by a license holder or an owner of a certified public accountancy firm who is not a license holder of:
(A)  this chapter;
(B)  professional standards adopted by the board;  or
(C)  a rule or order adopted by the board.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 1497, Sec. 34, eff. Sept. 1, 2001.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter K. Prohibited Practices and Disciplinary Procedures › Section 901.503. Board Action Involving Applicant

Sec. 901.503.  BOARD ACTION INVOLVING APPLICANT.  (a)  On a determination that a ground for discipline exists under Subsection (b), after notice and hearing as provided by Section 901.509, the board may:
(1)  deny an individual's application to take the uniform CPA examination;
(2)  prohibit an individual from taking the uniform CPA examination for a period not to exceed five years;  or
(3)  void an individual's uniform CPA examination grades.
(b)  The board may discipline an individual under Subsection (a) for:
(1)  fraud or deceit on an application for the uniform CPA examination;
(2)  cheating on the uniform CPA examination;
(3)  a final conviction of or the imposition of deferred adjudication for an offense under the laws of any state or the United States that:
(A)  is a felony;  or
(B)  includes fraud or dishonesty as an element of the offense;  or
(4)  conduct indicating lack of fitness to serve the public as a professional accountant.
(c)  The board shall provide for the refund of the examination fee paid by a person whose application for examination is denied under this section.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.  Amended by Acts 2003, 78th Leg., ch. 525, Sec. 21, eff. Sept. 1, 2003.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter K. Prohibited Practices and Disciplinary Procedures › Section 901.504. License Revocation Based on Violation of Chapter

Sec. 901.504.  LICENSE REVOCATION BASED ON VIOLATION OF CHAPTER.  After notice and hearing as provided by Section 901.509, the board:
(1)  may revoke a license that was issued or renewed in violation of this chapter or a rule adopted under this chapter;  and
(2)  shall revoke the firm license of a sole proprietorship, partnership, corporation, limited liability company, or other business entity that does not meet each qualification for a firm license prescribed by this chapter.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 1497, Sec. 34, eff. Sept. 1, 2001.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter K. Prohibited Practices and Disciplinary Procedures › Section 901.5045. Emergency Suspension

Sec. 901.5045.  EMERGENCY SUSPENSION.  (a)  On determining that a license holder is engaged in or about to engage in an act of fraud or a violation of this chapter and that the license holder's continued practice constitutes an immediate threat to the public welfare, the board may issue an order suspending the license holder's license without notice or a hearing.  The board shall immediately serve notice of the suspension on the license holder.
(b)  The notice required by Subsection (a) must:
(1)  be personally served on the license holder or be sent by registered or certified mail, return receipt requested, to the license holder's last known address according the board's records;
(2)  state the grounds for the suspension;  and
(3)  inform the license holder of the right to a hearing on the suspension order.
(c)  A license holder whose license is suspended under this section is entitled to request a hearing on the suspension not later than the 30th day after the date of receipt of notice of the suspension.  Not later than the fifth day after the date a hearing is requested, the board shall issue a notice of hearing as provided by Section 901.509.
(d)  The hearing shall be held not later than the fifth day after the date notice of hearing is issued, unless the parties agree to a later date.  A hearing on a suspension order under this section is subject to Chapter 2001, Government Code.  If the hearing is before an administrative law judge, after the hearing, the administrative law judge shall recommend to the board whether to uphold, vacate, or modify the suspension order.
(e)  A suspension order issued under this section remains in effect until further action is taken by the board.  If the administrative law judge's recommendation under Subsection (d) is to vacate the order, the board shall determine whether to vacate the order not later than the second day after the date of the recommendation.
Added by Acts 2003, 78th Leg., ch. 525, Sec. 22, eff. Sept. 1, 2003.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter K. Prohibited Practices and Disciplinary Procedures › Section 901.505. Procedure Pending Final Conviction of Certain Offenses

Sec. 901.505.  PROCEDURE PENDING FINAL CONVICTION OF CERTAIN OFFENSES.  (a)  On conviction of a person of an offense under the laws of any state or the United States that is a felony or that includes fraud or dishonesty as an element of the offense, after notice and hearing as provided by Section 901.509, the board may:
(1)  suspend a certificate or firm license issued under this chapter;  or
(2)  suspend or refuse to renew a license issued under this chapter.
(b)  The period of the suspension or refusal to renew begins on the date of conviction and ends on the date the conviction becomes final or is reversed, set aside, or modified as provided by Subsection (d).
(c)  If the conviction becomes final, the board may, without further notice and hearing, take disciplinary action under Section 901.501.
(d)  If the conviction is reversed, set aside, or modified so that the underlying offense is not a felony or an offense that includes fraud or dishonesty as an element of the offense, the board shall reinstate the certificate, firm license, or license suspended under this section.  A reinstatement under this subsection does not limit the board's right to take other disciplinary action authorized by this subchapter.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 1497, Sec. 35, eff. Sept. 1, 2001.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter K. Prohibited Practices and Disciplinary Procedures › Section 901.506. Voluntary Surrender of Certificate or Firm License

Sec. 901.506.  VOLUNTARY SURRENDER OF CERTIFICATE OR FIRM LICENSE.  (a)  Subject to board approval, a person who holds a certificate or firm license issued under this chapter may resign and surrender the certificate or firm license to the board at any time and for any reason.
(b)  A person who resigns and surrenders a certificate or firm license may not apply for reinstatement of the certificate or firm license. The person may be issued a new certificate or firm license on completion of all requirements for the issuance of an original certificate or firm license. The board may not issue a certificate to an individual who previously resigned a certificate unless:
(1)  after the date of resignation, the individual completes the examination requirement for a new certificate;  or
(2)  on application, the board waives the examination requirement.
(c)  A person who applies for a new certificate or firm license must, if applicable, disclose in the application the fact that the person previously resigned and surrendered a certificate or firm license during the course of a disciplinary investigation or proceeding conducted by the board.  The board shall consider that fact in determining whether to issue a new certificate or firm license to the person.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 1497, Sec. 36, eff. Sept. 1, 2001.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter K. Prohibited Practices and Disciplinary Procedures › Section 901.507. Reinstatement

Sec. 901.507.  REINSTATEMENT.  On receipt of a written application, and after notice and hearing, the board may:
(1)  issue a new certificate to an individual whose certificate was revoked;
(2)  issue a new firm license to a person whose firm license was revoked;
(3)  reinstate a suspended license or modify the terms of the suspension;
(4)  approve a previously denied application to take the uniform CPA examination;  or
(5)  reinstate an individual's previously voided uniform CPA examination grades.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 1497, Sec. 36, eff. Sept. 1, 2001.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter K. Prohibited Practices and Disciplinary Procedures › Section 901.508. Right to Hearing

Sec. 901.508.  RIGHT TO HEARING.  (a)  If the board proposes to take disciplinary action against a person under this subchapter, the person is entitled to a hearing before the board or a hearings officer appointed by the board.
(b)  The board shall establish procedures by which a decision to take disciplinary action under this subchapter is made by or is appealable to the board.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter K. Prohibited Practices and Disciplinary Procedures › Section 901.509. Notice of Hearing

Sec. 901.509.  NOTICE OF HEARING.  (a)  The board shall provide written notice of a hearing under this subchapter to the person who is the subject of the proposed disciplinary action not later than the 21st day before the date of the hearing.
(b)  The notice must state:
(1)  the time and place of the hearing;  and
(2)  the nature of each charge against the person.
(c)  The notice may be served in person or by registered or certified mail to the person's last known address.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter K. Prohibited Practices and Disciplinary Procedures › Section 901.510. Legal Representation at Hearing

Sec. 901.510.  LEGAL REPRESENTATION AT HEARING.  The attorney general or an attorney employed by the board shall represent the board at each hearing under this subchapter.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter K. Prohibited Practices and Disciplinary Procedures › Section 901.511. Disciplinary Action for Act Committed in Another State

Sec. 901.511.  DISCIPLINARY ACTION FOR ACT COMMITTED IN ANOTHER STATE.  (a)  A license holder of this state who offers to perform or performs professional accounting services or who uses the license holder's title as a certified public accountant in another state or jurisdiction is subject to disciplinary action in this state for an act committed in the other state or jurisdiction for which the license holder would be subject to discipline as a license holder of the other state or jurisdiction.
(b)  The board shall investigate any complaint made by the regulatory agency of another state or jurisdiction concerning a license holder of this state.
Added by Acts 2001, 77th Leg., ch. 1497, Sec. 37, eff. Sept. 1, 2001.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter L. Administrative Penalty › Section 901.551. Imposition of Administrative Penalty

Sec. 901.551.  IMPOSITION OF ADMINISTRATIVE PENALTY.  The board may impose an administrative penalty on a person regulated under this chapter who violates this chapter or a rule or order adopted under this chapter in a manner that constitutes a ground for disciplinary action.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter L. Administrative Penalty › Section 901.552. Amount of Penalty

Sec. 901.552.  AMOUNT OF PENALTY.  (a)  The amount of an administrative penalty may not exceed $100,000 for each violation.
(b)  In determining the amount of the penalty, the board shall consider:
(1)  the seriousness of the violation, including:
(A)  the nature, circumstances, extent, and gravity of any prohibited act;  and
(B)  the hazard or potential hazard to the public;
(2)  the economic damage to property caused by the violation;
(3)  the history of previous violations;
(4)  the amount necessary to deter a future violation;
(5)  efforts to correct the violation;  and
(6)  any other matter that justice may require.
(c)  The board by rule shall adopt a schedule for purposes of this subchapter that prescribes ranges in the amounts of administrative penalties to be imposed for specified types of conduct and circumstances.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.  Amended by Acts 2003, 78th Leg., ch. 525, Sec. 23, eff. Sept. 1, 2003.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter L. Administrative Penalty › Section 901.553. Report and Notice of Violation and Penalty

Sec. 901.553.  REPORT AND NOTICE OF VIOLATION AND PENALTY.  (a)  If, after examination of a possible violation and the facts relating to that violation, the board determines that a violation has occurred, the board shall issue a preliminary report stating:
(1)  the facts on which the determination is based;
(2)  the fact that an administrative penalty is to be imposed;  and
(3)  the amount of the penalty.
(b)  Not later than the 10th day after the date the report is issued, the board shall send a copy of the report by certified mail to the person charged with the violation, together with a statement of the person's right to a hearing relating to the alleged violation and the amount of the penalty.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter L. Administrative Penalty › Section 901.554. Penalty to Be Paid or Hearing Requested

Sec. 901.554.  PENALTY TO BE PAID OR HEARING REQUESTED.  (a)  Not later than the 20th day after the date the person receives the report, the person may:
(1)  make a written request for a hearing;  or
(2)  pay the administrative penalty to the board.
(b)  Failure to request a hearing or pay the penalty within the time provided by this section waives the right to a hearing under this chapter.
(c)  If the board determines without a hearing that the person committed a violation and a penalty is to be imposed, the board shall:
(1)  provide written notice to the person of the board's findings;  and
(2)  enter an order requiring the person to pay the penalty.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter L. Administrative Penalty › Section 901.555. Hearing

Sec. 901.555.  HEARING.  (a)  If the person requests a hearing, the board shall conduct a hearing in the manner provided for a contested case hearing under Chapter 2001, Government Code.
(b)  If the board determines after a hearing that the person committed the alleged violation, the board shall:
(1)  provide written notice to the person of the findings established by the hearing and the amount of the administrative penalty imposed;  and
(2)  enter an order requiring the person to pay any penalty.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter L. Administrative Penalty › Section 901.556. Options Following Decision: Pay or Appeal

Sec. 901.556.  OPTIONS FOLLOWING DECISION:  PAY OR APPEAL.  (a)  Not later than the 30th day after the date the board's order becomes final as provided by Section 2001.144, Government Code, the person shall:
(1)  pay the administrative penalty;  or
(2)  file a petition for judicial review contesting the fact of the violation, the amount of the penalty, or both.
(b)  Within the 30-day period, a person who acts under Subsection (a)(2) may stay enforcement of the penalty by:
(1)  paying the penalty to the board for placement in an escrow account;
(2)  giving to the board a supersedeas bond in a form approved by the board that:
(A)  is for the amount of the penalty;  and
(B)  is effective until judicial review of the board's order is final;  or
(3)  filing with the board an affidavit of the person stating that the person is financially unable to pay the penalty and is financially unable to give the supersedeas bond.
(c)  A person who fails to take action as provided by this section waives the right to judicial review of the board's order.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter L. Administrative Penalty › Section 901.557. Collection of Penalty

Sec. 901.557.  COLLECTION OF PENALTY.  If the person does not pay the administrative penalty and the enforcement of the penalty is not stayed, the board may refer the matter to the attorney general for collection of the penalty.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter L. Administrative Penalty › Section 901.558. Remittance of Penalty and Interest

Sec. 901.558.  REMITTANCE OF PENALTY AND INTEREST.  (a)  If after judicial review, the administrative penalty is reduced or is not upheld by the court, the board shall:
(1)  remit the appropriate amount, plus accrued interest, to the person if the person paid the penalty;  or
(2)  execute a release of the bond if the person posted a supersedeas bond.
(b)  The interest paid under Subsection (a) is paid at the rate charged on loans to depository institutions by the New York Federal Reserve Bank.  The interest shall be paid for the period beginning on the date the penalty is paid and ending on the date the penalty is remitted.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter M. Other Penalties and Enforcement Provisions › Section 901.601. Cease and Desist Order

Sec. 901.601.  CEASE AND DESIST ORDER.  (a)  If it appears to the board that a person is engaging in an act or practice that constitutes the practice of public accountancy without a license under this chapter, the board, after notice and an opportunity for a hearing, may issue a cease and desist order prohibiting the person from engaging in that activity.
(b)  A violation of an order under this section constitutes grounds for imposition of an administrative penalty under Subchapter L. Notwithstanding Section 901.552, the amount of an administrative penalty for a violation of an order under this section may not exceed $25,000.
(c)  The board by rule shall adopt a schedule for purposes of this section that prescribes ranges in the amounts of administrative penalties to be imposed for specified types of conduct and circumstances that violate an order under this section.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 1497, Sec. 38, eff. Sept. 1, 2001;  Acts 2003, 78th Leg., ch. 525, Sec. 24, eff. Sept. 1, 2003.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter M. Other Penalties and Enforcement Provisions › Section 901.6011. Injunctive Relief

Sec. 901.6011.  INJUNCTIVE RELIEF.  (a)  The attorney general at the request of the board may petition a district court for an injunction to prohibit a person who is violating this chapter from continuing the violation.
(b)  Venue in a suit for injunctive relief is in Travis County.
(c)  After application and a finding that a person is violating this chapter, the district court shall grant the injunctive relief the facts warrant.
Added by Acts 2019, 86th Leg., R.S., Ch. 181 (H.B. 1520), Sec. 19, eff. September 1, 2019.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter M. Other Penalties and Enforcement Provisions › Section 901.6015. Restitution

Sec. 901.6015.  RESTITUTION.  (a)  The board may order a license holder to pay restitution under Section 901.501(a)(10) to a person harmed by the license holder's:
(1)  violation of this chapter;  and
(2)  failure to fulfill the terms of a contract with the person.
(b)  The amount of restitution ordered under this section may not exceed the actual amount paid by the person to the license holder under the contract.
Added by Acts 2003, 78th Leg., ch. 525, Sec. 25, eff. Sept. 1, 2003.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter M. Other Penalties and Enforcement Provisions › Section 901.602. Criminal Penalty

Sec. 901.602.  CRIMINAL PENALTY.  (a)  A person commits an offense if the person violates this chapter.  Each violation is a separate offense.
(b)  Except as otherwise provided by this subsection, an offense under this section is a Class B misdemeanor.  An offense under this section that involves intentional fraud is punishable as:
(1)  a state jail felony if it is shown on the trial of the offense that the violation resulted in a monetary loss of less than $10,000 or did not result in a monetary loss;
(2)  a felony of the third degree if it is shown on the trial of the offense that the violation resulted in a monetary loss of at least $10,000 but less than $100,000;  or
(3)  a felony of the second degree if it is shown on the trial of the offense that the violation resulted in a monetary loss of at least $100,000.
(c)  A complaint filed under this section must be filed in a district court in:
(1)  Travis County, if the complaint is filed against a person who is licensed under this chapter or is not a resident of this state;  or
(2)  the county in which the person resides, if the complaint is filed against a person who is a resident of this state but is not licensed under this chapter.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 1497, Sec. 39, eff. Sept. 1, 2001;  Acts 2003, 78th Leg., ch. 525, Sec. 26, eff. Sept. 1, 2003.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter M. Other Penalties and Enforcement Provisions › Section 901.603. Intervention in Action

Sec. 901.603.  INTERVENTION IN ACTION.  Subject to approval by the board, a license holder or a professional organization of certified public accountants may intervene in an action by the board or may bring an action in the name of the license holder or professional organization to enforce any provision of this chapter against a person who does not hold a license or firm license.
Added by Acts 2001, 77th Leg., ch. 1497, Sec. 40, eff. Sept. 1, 2001.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter M. Other Penalties and Enforcement Provisions › Section 901.604. Single Act as Evidence of Practice

Sec. 901.604.  SINGLE ACT AS EVIDENCE OF PRACTICE.  In an action brought under this chapter, evidence of a single act prohibited by this chapter is sufficient to justify a penalty, injunction, restraining order, or conviction without evidence of a general course of conduct.
Added by Acts 2001, 77th Leg., ch. 1497, Sec. 40, eff. Sept. 1, 2001.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter M. Other Penalties and Enforcement Provisions › Section 901.605. Appointment of Secretary of State as Agent

Sec. 901.605.  APPOINTMENT OF SECRETARY OF STATE AS AGENT.  A person who is not a resident of this state and who applies for a certificate or firm license is considered to have appointed the secretary of state as the applicant's agent for service of process in any action or proceeding against the applicant arising out of any transaction connected with or incidental to professional accounting services performed by the applicant while the applicant holds a certificate or firm license.
Added by Acts 2001, 77th Leg., ch. 1497, Sec. 40, eff. Sept. 1, 2001.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter M. Other Penalties and Enforcement Provisions › Section 901.606. Immunity From Liability

Sec. 901.606.  IMMUNITY FROM LIABILITY.  (a)  A person acting in good faith who voluntarily reports or assists in the investigation of a report of an alleged violation of this chapter or who testifies or otherwise participates in an administrative or judicial proceeding arising from a report or investigation of an alleged violation of this chapter is immune from civil or criminal liability that might otherwise be incurred or imposed.
(b)  A person who reports the person's own violation of this chapter or who acts in bad faith or with malicious purpose in reporting an alleged violation of this chapter is not immune from civil or criminal liability.
Added by Acts 2003, 78th Leg., ch. 525, Sec. 27, eff. Sept. 1, 2003.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter N. Scholarships for Accounting Students › Section 901.652. Public Purpose

Sec. 901.652.  PUBLIC PURPOSE.  The scholarships required by this subchapter serve a public purpose of the state as described by Section 901.155.
Transferred from Education Code, Subchapter N, Chapter 61 and amended by Acts 2009, 81st Leg., R.S., Ch. 119 (H.B. 2440), Sec. 2, eff. September 1, 2009.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter N. Scholarships for Accounting Students › Section 901.653. Scholarships

Sec. 901.653.  SCHOLARSHIPS.  The board shall establish and administer, using funds collected and appropriated for that purpose and in accordance with this subchapter and board rules, scholarships for accounting students.
Transferred from Education Code, Subchapter N, Chapter 61 and amended by Acts 2009, 81st Leg., R.S., Ch. 119 (H.B. 2440), Sec. 2, eff. September 1, 2009.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 447 (H.B. 2217), Sec. 12, eff. June 9, 2023.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter N. Scholarships for Accounting Students › Section 901.654. Factors

Sec. 901.654.  FACTORS.  (a)  Scholarships shall be established and administered in a manner that the board determines best serves the public purpose of the scholarships.
(b)  In determining what best promotes the public purpose, the board shall consider at a minimum the following factors relating to each person applying for a scholarship under this section:
(1)  financial need;
(2)  ethnic or racial minority status; and
(3)  scholastic ability and performance in at least 15 hours of upper-level accounting coursework.
Transferred from Education Code, Subchapter N, Chapter 61 and amended by Acts 2009, 81st Leg., R.S., Ch. 119 (H.B. 2440), Sec. 2, eff. September 1, 2009.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 447 (H.B. 2217), Sec. 13, eff. June 9, 2023.
2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter N. Scholarships for Accounting Students › Section 901.655. Rules

Sec. 901.655.  RULES.  (a)  The board shall adopt rules as necessary for the administration of this subchapter.
(b)  The board shall adopt rules relating to the establishment of the scholarships under Section 901.653, including rules providing eligibility criteria and the determination of the amount of each scholarship.
Transferred from Education Code, Subchapter N, Chapter 61 and amended by Acts 2009, 81st Leg., R.S., Ch. 119 (H.B. 2440), Sec. 2, eff. September 1, 2009.