Texas Register, Volume 45, Number 48, Pages 8423-8674, November 27, 2020 Page: 8,464
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Public Comment
Written comments may be submitted to J. Randel (Jerry) Hill,
General Counsel, Texas State Board of Public Accountancy, 505
E. Huntland Dr., Suite 380, Austin, Texas 78752 or faxed to his
attention at (512) 305-7854, no later than noon on December 28,
2020.
The Board specifically invites comments from the public on the
issues of whether or not the proposed amendment will have
an adverse economic effect on small businesses. If the pro-
posed rule is believed to have an adverse effect on small busi-
nesses, estimate the number of small businesses believed to be
impacted by the rule, describe and estimate the economic im-
pact 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 busi-
nesses considering the purpose of the statute under which the
proposed rule is to be adopted; and 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).
Statutory Authority
The amendment is proposed under the Public Accountancy Act
("Act"), Texas Occupations Code 901.151 and 901.655 which
authorizes the Board to adopt rules deemed necessary or advis-
able to effectuate the Act.
No other article, statute or code is affected by this proposed
amendment.
518.5. Unlicensed Entities.
(a) An unlicensed entity is permitted to state that it has an own-
ership interest and a business affiliation with a registered CPA firm pro-
vided each such statement complies with subsection (b) of this section.
(b) In any letterhead, or in any advertising or promotional
statements by an unlicensed entity that refers to accounting, auditing or
attest services or any derivative terms associated with those services,
there must be a statement that such services are only performed by
the affiliated registered CPA firm. This statement must be included
in conspicuous proximity to the name of the unlicensed entity and be
printed in type not less bold than that contained in the body of the let-
terhead, advertisement or promotional statement. If the advertisement
is in audio format, the statement must be clearly declared in each such
presentation.
(c) An unlicensed entity performing attest services is in the
unauthorized practice of public accountancy and in violation of the Act
and the board's rules except a firm authorized to practice in this state
pursuant to 901.461 of the Act (relating to Practice by Certain Out-
of-State Firms).
(d) Interpretative Comment: This section clarifies that the
mere mention of a business and ownership affiliation with a registered
CPA firm on the letterhead, or in advertising or promotional state-
ments, of an unlicensed entity does not violate the Act when done
in compliance with the provisions of this section. This section also
clarifies that the letterhead, advertising or promotional statements
of the unlicensed entity may refer to accounting, auditing or attest
services, or any derivative terms associated with those services,
without violating 901.453 of the Act (relating to Use of Other Titles
or Abbreviations). It also clarifies that all attest services must still be
performed exclusively by registered CPA firms in accordance with the
Act and all board rules. The definition of "attest services" is set forth
in 501.52 of this title (relating to Definitions).The agency certifies that legal counsel has reviewed the pro-
posal and found it to be within the state agency's legal authority
to adopt.
Filed with the Office of the Secretary of State on November 12,
2020.
TRD-202004799
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: December 27, 2020
For further information, please call: (512) 305-7842
4 4 4
22 TAC 518.6
The Texas State Board of Public Accountancy (Board) proposes
an amendment to 518.6, concerning Administrative Penalty
Guidelines for the Unauthorized Practice of Public Accountancy.
Background, Justification and Summary
The proposed amendment addresses the fact that the Board is
not required to assess an administrative penalty for every Board
rule violation.
Fiscal Note
William Treacy, Executive Director of the Board, has determined
that for the first five-year period the proposed amendment is in
effect, there will be no additional estimated cost to the state, no
estimated reduction in costs to the state and to local govern-
ments, and no estimated loss or increase in revenue to the state,
as a result of enforcing or administering the amendment.
Public Benefit
The adoption of the proposed amendment will make it clear that
the Board may choose to impose an administrative penalty or
not for rule violations.
Probable Economic Cost and Local Employment Impact
Mr. Treacy, Executive Director, has determined that there will be
no probable economic cost to persons required to comply with
the amendment and a Local Employment Impact Statement is
not required because the proposed amendment will not affect a
local economy.
Small Business, Rural Community and Micro-Business Impact
Analysis
William Treacy, Executive Director, has determined that the pro-
posed amendment will not have an adverse economic effect on
small businesses, rural communities or micro-businesses be-
cause the amendment does not impose any duties or obliga-
tions upon small businesses, rural communities or micro-busi-
nesses; therefore, an Economic Impact Statement and a Regu-
latory Flexibility Analysis are not required.
Government Growth Impact Statement
William Treacy, Executive Director, has determined that for the
first five-year period the amendment is in effect, the proposed
rule: does not create or eliminate a government program; does
not create or eliminate employee positions; does not increase or
decrease future legislative appropriations to the Board; does not
increase or decrease fees paid to the Board; does not create a
new regulation; limits the existing regulation; does not increase45 TexReg 8464 November 27, 2020 Texas Register
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Texas. Secretary of State. Texas Register, Volume 45, Number 48, Pages 8423-8674, November 27, 2020, periodical, November 27, 2020; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1301299/m1/42/: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.