PART 3. TEXAS BOARD OF CHIROPRACTIC EXAMINERS
CHAPTER 80. PROFESSIONAL CONDUCT
The Texas Board of Chiropractic Examiners (Board) proposes an amendment to §80.1, relating to Delegation of Authority, to make clear the rules on delegation of authority by a licensee to a student that has completed an out-patient clinic. Currently the rule states that a chiropractic adjustment or manipulation done by a student who has completed an out-patient clinic must be performed under the supervision of a licensee who does not need to physically be present in the treating room at the time of the adjustment. The Board has received several questions from licensees regarding whether the licensee must be on-site at the time of the adjustment, and thus believe this amendment is necessary to clarify that the licensee must in fact be on-site at the time of the adjustment performed by the student.
Yvette Yarbrough, Executive Director, has determined that, for each year of the first five years that this amendment will be in effect, there will be no additional cost to state or local governments.
Ms. Yarbrough has also determined that, for each year of the first five years that this amendment will be in effect, the public benefit of this amendment will be better supervision of students performing chiropractic adjustments or manipulation by licensees. Ms. Yarbrough has also determined that there will be no adverse economic effect to individuals and small or micro businesses during the first five years that this amendment will be in effect.
Comments on the proposed amendment and/or a request for a public hearing on the proposed amendment may be submitted to Yvette Yarbrough, Executive Director, Texas Board of Chiropractic Examiners, 333 Guadalupe St., Tower III, Suite 825, Austin, Texas 78701; fax: (512) 305-6705, no later than 30 days from the date that this proposed amendment is published in the Texas Register.
This amendment is proposed under Texas Occupations Code §201.152, relating to rules. Section 201.152 authorizes the Board to adopt rules necessary to regulate the practice of chiropractic.
No other statutes, articles, or codes are affected by the proposed amendment.
§80.1.Delegation of Authority
(a) - (b) (No change.)
(c) A licensee may allow or direct a student enrolled in an accredited chiropractic college to perform chiropractic adjustments or manipulations.
(1) (No change.)
(2) For students that have completed an out-patient clinic at a chiropractic college, the chiropractic adjustment or manipulation must be performed under the supervision of a licensee who need not be physically present in the treating room at the time of the adjustment or manipulation, but must be on-site at the time of the adjustment or manipulation.
(3) (No change.)
(d) - (j) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 23, 2011.
TRD-201103965
Yvette Yarbrough
Executive Director
Texas Board of Chiropractic Examiners
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-6716
The Texas Board of Chiropractic Examiners (Board) proposes new §81.1, relating to Definitions, to define terms used in Chapter 81 of Title 22, Part 3 of the Texas Administrative Code.
Yvette Yarbrough, Executive Director, has determined that, for each year of the first five years this new rule will be in effect, there will be no additional cost to state or local governments.
Ms. Yarbrough has also determined that, for each year of the first five years this new rule will be in effect, the public benefit of this new rule will be clear definitions for terms used in Chapter 81. Ms. Yarbrough has also determined that there will be no adverse economic effect to individuals and small or micro business during the first five years this new rule will be in effect.
Comments on the proposed new rule and/or a request for a public hearing on the proposed new rule may be submitted to Yvette Yarbrough, Executive Director, Texas Board of Chiropractic Examiners, 333 Guadalupe St., Tower III, Suite 825, Austin, Texas 78701; fax: (512) 305-6705, no later than 30 days from the date that this proposed new rule is published in the Texas Register.
This new rule is proposed under Texas Occupations Code §201.152, relating to rules. Section 201.152 authorizes the Board to adopt rules necessary to regulate the practice of chiropractic.
No other statutes, articles, or codes are affected by the proposed new rule.
§81.1.Definitions.
The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise:
(1) APA--Administrative Procedure Act, Government Code, Chapter 2001;
(2) Board--Texas Board of Chiropractic Examiners;
(3) Person--An individual, partnership, corporation, association, governmental subdivision, or public or private organization that is not a state agency;
(4) Rule--A statement by the Texas Board of Chiropractic Examiners of general applicability that:
(A) implements, interprets or prescribes law or policy; or describes the procedure or practice requirements of the Board;
(B) includes the amendment or repeal of a prior rule; and
(C) does not include a statement regarding only the internal management or organization of the Board and not affecting private rights or procedures.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 23, 2011.
TRD-201103966
Yvette Yarbrough
Executive Director
Texas Board of Chiropractic Examiners
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-6716
The Texas Board of Chiropractic Examiners (Board) proposes new §81.3, relating to Petition for Adoption of Rules, to prescribe the form for a petition for adoption of rules made by an interested person pursuant to §2001.021 of the Administrative Procedure Act (APA) and to prescribe the procedure for such a petition's submission, consideration and disposition. Section 2001.021(b) of the APA directs state agencies to adopt rules
Currently the Board does not have any rules in compliance with §2001.021(b). As such, the Board proposes this new rule to detail the form required for submission and the procedures for the submission, consideration and disposition of a petition for adoption of rules.
Yvette Yarbrough, Executive Director, has determined that, for each year of the first five years this new rule will be in effect, there will be no additional cost to state or local governments.
Ms. Yarbrough has also determined that, for each year of the first five years this new rule will be in effect, the public benefit of this new rule will be a clear method for the public to petition the Board for rulemaking, as outlined in §2001.021 of the APA. Ms. Yarbrough has also determined that there will be no adverse economic effect to individuals and small or micro business during the first five years this new rule will be in effect.
Comments on the proposed new rule and/or a request for a public hearing on the proposed new rule may be submitted to Yvette Yarbrough, Executive Director, Texas Board of Chiropractic Examiners, 333 Guadalupe St., Tower III, Suite 825, Austin, Texas 78701; fax: (512) 305-6705, no later than 30 days from the date that this proposed new rule is published in the Texas Register.
This new rule is proposed under Texas Occupations Code §201.152, relating to rules, and under the APA, §2001.021, relating to petitions for adoption of rules. Section 201.152 authorizes the Board to adopt rules necessary to regulate the practice of chiropractic. Section 2001.021 directs the Board to adopt rules relating to the form for a petition for adoption of rules and relating to the procedure for such a petition's submission, consideration and disposition.
No other statutes, articles, or codes are affected by the proposed new rule.
§81.3.Petition for Adoption of Rules.
(a) As authorized by the APA, §2001.021(a), an interested person by petition to the Board may request the adoption of a rule.
(b) Form for submission. A person must submit a petition for adoption of rules in writing via mail, fax, e-mail, or hand-delivery to the Executive Director or General Counsel of the Board. The petition shall contain the following information as applicable and except as may be waived by the Board:
(1) the name and contact information of the petitioning party and his or her interest in the adoption of the rule;
(2) a statement of the legal authority and jurisdiction under which the petition is filed;
(3) the exact language of the proposed rule requested to be adopted;
(4) a statement and legal references regarding whether, to the petitioner's knowledge, the requested rule is in conflict with any existing rule, ruling, order or opinion of the Board or any other rules or statutes; and
(5) a statement of the purpose of the requested rule.
(c) Consideration and Disposition. During the sixty (60) day period following receipt of the petition by the Board, the Rules Committee shall meet to consider the petition. Not less than ten (10) days prior to such meeting, the Board shall notify the petitioning party in writing of the date, time and place the petition shall be considered.
(1) At this meeting, the petitioning party may be given an opportunity to present matters to the Rules Committee, at the Committee's discretion.
(2) The Committee, at the conclusion of the meeting, shall decide whether to deny the petition or to recommend to the Board at the next board meeting to publish the requested rule in the Texas Register for comment. If the Committee decides to deny the petition, the Committee shall state its reasons for denial in writing to the petitioning party. A recommendation by the Rules Committee to publish the requested rule for comment shall constitute initiation of rulemaking for purposes of §2001.021(c)(2) of the APA.
(3) At the next board meeting following the Rules Committee meeting, the Board shall consider the Rules Committee's recommendation. The Board shall then decide whether to deny the petition or to publish the requested rule in the Texas Register for comment. If the Board decides to deny the petition, the Board shall state its reasons for denial in writing to the petitioning party.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 23, 2011.
TRD-201103968
Yvette Yarbrough
Executive Director
Texas Board of Chiropractic Examiners
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-6716
CHAPTER 173. PHYSICIAN PROFILES
The Texas Medical Board (Board) proposes amendments to §173.1, concerning Profile Contents; and §173.3, concerning Physician-Initiated Updates.
The amendment to §173.1 clarifies what utilization review services are subject to reporting on a physician's profile and specifically excludes the reporting of utilization review provided in relation to worker's compensation claims.
The amendment to §173.3 clarifies that changes in address to be reported to the Board by physicians within 30 days of their occurrence, applies to both mailing and practice address changes.
Elsewhere in this issue of the Texas Register, the Board contemporaneously proposes the rule review for Chapter 173.
Nancy Leshikar, General Counsel for the Board, has determined that for each year of the first five years the sections as proposed are in effect the public benefit anticipated as a result of enforcing this proposal will be to exclude unnecessary reporting to the Board of utilization review services provided in worker's compensation claims, as such information is already provided in utilization review forms for these types of claims as required by the Division of Workers' Compensation under the Texas Department of Insurance and to ensure that the Board has accurate contact information for licensed physicians.
Mrs. Leshikar has also determined that for the first five-year period the sections are in effect there will be no fiscal implication to state or local government as a result of enforcing the sections as proposed. There will be no effect to individuals required to comply with the rules as proposed. There will be no effect on small or micro businesses.
Comments on the proposal may be submitted to Jennifer Kaufman, P.O. Box 2018, Austin, Texas 78768-2018, or e-mail comments to: rules.development@tmb.state.tx.us. A public hearing will be held at a later date.
The amendments are proposed under the authority of the Texas Occupations Code Annotated, §153.001, which provides authority for the Board to adopt rules and bylaws as necessary to: govern its own proceedings; perform its duties; regulate the practice of medicine in this state; enforce this subtitle; and establish rules related to licensure.
The amendments are also authorized by §153.001 and §154.006, Texas Occupations Code.
§173.1.Profile Contents.
(a) (No change.)
(b) The profile of each licensed physician shall contain the following information listed in paragraphs (1) - (28) of this subsection:
(1) - (27) (No change.)
(28) whether the physician provides utilization review services for an insurance company in connection with health care services rendered by a group health plan and the name of the insurance company or companies. This does not include providing utilization review in relation to worker's compensation claims.
§173.3.Physician-Initiated Updates.
(a) - (c) (No change.)
(d) A physician shall report the following to the Board within 30 days after the event:
(1) Any change of mailing or practice address;
(2) - (4) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 26, 2011.
TRD-201103998
Mari Robinson, J.D.
Executive Director
Texas Medical Board
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-7016
The Texas Medical Board (Board) proposes amendments to §175.1, concerning Application and Administrative Fees; §175.2, concerning Registration and Renewal Fees; and §175.5, concerning Payment of Fees or Penalties.
The amendment to §175.1 removes all language relating to surcharges as this term is used only for internal agency purposes and its removal eliminates confusion; increases the application fee for physician-in-training permits used to complete rotations in Texas by $1 due to fee increases set by the Department of Information Resources; and sets the fee at $18 for the processing of Physician/Physician Assistant Jointly-Owned Entity Annual Reports.
The amendment to §175.2 removes all language relating to surcharges as this term is used only for internal agency purposes and its removal eliminates confusion.
The amendment to §175.5 provides that additional fees shall be incurred by individuals who renew their applications online or through hard-copy, depending on the format.
Elsewhere in this issue of the Texas Register, the Board contemporaneously proposes the rule review for Chapter 175.
Nancy Leshikar, General Counsel for the Board, has determined that for each year of the first five years the sections as proposed are in effect the public benefit anticipated as a result of enforcing this proposal will be to remove confusing language and raise fees to appropriately cover the agency's expenses in relation to certain applications and fees; to remove confusing language in the rules and to put applicants on notice of additional fees that are incurred due to fees set by the Department of Information Resources, and to encourage individuals to use the Board's online system when available to avoid additional fees for hard copy applications.
Mrs. Leshikar has also determined that for the first five-year period the sections are in effect there will be no fiscal implication to state or local government as a result of enforcing the sections as proposed. The effect to individuals required to comply with the rules as proposed will be the fee increases or new fees as established. There will be no effect on small or micro businesses.
Comments on the proposal may be submitted to Jennifer Kaufman, P.O. Box 2018, Austin, Texas 78768-2018, or e-mail comments to: rules.development@tmb.state.tx.us. A public hearing will be held at a later date.
The amendments are proposed under the authority of the Texas Occupations Code Annotated, §153.001, which provides authority for the Board to adopt rules and bylaws as necessary to: govern its own proceedings; perform its duties; regulate the practice of medicine in this state; enforce this subtitle; and establish rules related to licensure.
The amendments are also authorized by §153.001 and §153.051, Texas Occupations Code.
§175.1.Application and Administrative Fees.
The board shall charge the following fees for processing an application for a license or permit:
(1) Physician Licenses:
(A) Full physician license--$1,002 [(includes
surcharge of $215)--$1002].
(B) Telemedicine license--$1,002 [(includes
surcharge of $215)--$1002].
(C) Administrative medicine license--$1,002 [
(includes surcharge of $215)--$1002].
(D) Reissuance of license following revocation [(includes
surcharge of $205)]--$885.
(E) Temporary license:
(i) State health agency--$50.
(ii) Visiting physician--$-0-.
(iii) Visiting professor--$167.
(iv) National Health Service Corps--$-0-.
(v) Faculty temporary license [(includes surcharges
of $280)]--$737.
(vi) Postgraduate Research Temporary License--$-0-.
(vii) Provisional license--$107.
(F) Licenses and Permits relating to Graduate Medical Education:
(i) Initial physician in training permit--$212.
(ii) Physician in training permit for program transfer--$141.
(iii) Evaluation or re-evaluation of postgraduate training program--$250.
(iv) Physician in training permit for applicants performing
rotations in Texas--$131 [$130].
(2) Physician Assistants:
(A) Physician assistant license [(includes surcharge
of $5)]--$205.
(B) Reissuance of license following revocation [(includes
surcharge of $5)]--$205.
(C) Temporary license--$107.
(3) Acupuncturists/AcudetoxSpecialists/Continuing Education Providers:
(A) Acupuncture licensure [(includes surcharge of $5)]--$305.
(B) Temporary license for an acupuncturist--$107.
(C) Acupuncturist distinguished professor temporary license--$50.
(D) Acudetox specialist certification [(includes
surcharge of $2)]--$52.
(E) Continuing acupuncture education provider--$50.
(F) Review of a continuing acupuncture education course--$25.
(G) Review of continuing acudetox acupuncture education courses--$50.
(4) Non-Certified Radiologic Technician permit [(includes
surcharge of $3)]--$115.50.
(5) Non-Profit Health Organization initial certification--$2,500.
(6) Surgical Assistants:
(A) Surgical assistant licensure--$300.
(B) Temporary license--$50.
(7) Criminal History Evaluation Letter--$100.
(8) Certifying board evaluation--$200.
(9) Physician/Physician Assistant Jointly-Owned Entity Annual Report--$18.
§175.2.Registration and Renewal Fees.
The board shall charge the following fees to continue licenses and permits in effect:
(1) Physician Registration Permits:
(A) Initial biennial permit--$826.
(B) Subsequent biennial permit--$822.
(C) Additional biennial registration fee for office-based
anesthesia--$210 [(includes surcharge of $10)].
(2) Physician Assistant Registration Permits:
(A) Initial annual permit [(includes surcharges
of $10)]--$257.50.
(B) Subsequent annual permit [(includes surcharges
of $6)]--$253.50.
(3) Acupuncturists/Acudetox Specialists Registration Permits:
(A) Initial annual permit for acupuncturist [(includes
surcharges of $10)]--$322.50.
(B) Subsequent annual permit for acupuncturist [(includes
surcharges of $6)]--$318.50.
(C) Annual renewal for acudetox specialist certification--$87.50.
(4) Non-Certified Radiologic Technician permit annual
renewal [(includes surcharge of $3)]--$115.50.
(5) Non-Profit Health Organization biennial recertification--$1,125.
(6) Surgical Assistants registration permits:
(A) Initial biennial permit [(includes surcharges
of $6)]--$531.
(B) Subsequent biennial permit [(includes surcharges
of $2)]--$527.
(7) Certifying board evaluation renewal--$200.
§175.5.Payment of Fees or Penalties.
(a) Method of Payment. Fees paid online must be submitted
by credit card, electronic check, or debit card, as required by the
online application. All other licensure fees or penalties must be
submitted in the form of a money order, personal check, or cashier's
check payable on or through a United States bank. Fees and penalties
cannot be refunded except as provided in subsection
(c) [(b)
] of this section. If a single payment is made for more than
one individual permit, it must be made for the same class of permit
and a detailed listing, on a form prescribed by the board, must be
included with each payment.
(b) Additional Fees Based on Method of Payment.
(1) Online payments. Applicants and licensees who submit payments online may be subject to convenience fees set by the Department of Information Resources, that are in addition to the fees listed in §§175.1 - 175.3 of this title (relating to Application and Administrative Fees, Registration and Renewal Fees and Penalties).
(2) Payments submitted for hard-copy applications. Applicants and licensees who choose to apply or register on paper if online processing is available will be subject to an additional fee of $50 collected by the board, in addition to the fees listed in §§175.1 - 175.3 of this title.
(c) [(b)] Refunds. Refunds of
fees may be granted under the following circumstances:
(1) Administrative error by the Board;
(2) Licensure applicants who do not appear before the Licensure Committee and who withdraw their applications and request a refund within 30 days of being notified by board staff that they are ineligible for licensure;
(3) Applicants who withdraw a licensure application after applying for multiple types of licensure at the same time but then either elect to pursue only one type of license or the Board approves one type of license before completing the review of the other applications;
(4) Applicants who apply for temporary licenses but do not receive a temporary license due to the issuance of full licensure;
(5) Licensees who retire or request cancellation of their licenses within 90 days of paying the registration fee;
(6) Applicants or licensees who die within 90 days of having paid a fee; or
(7) Applicants who withdraw their applications within 45 days of initial application.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 26, 2011.
TRD-201103999
Mari Robinson, J.D.
Executive Director
Texas Medical Board
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-7016
CHAPTER 501. RULES OF PROFESSIONAL CONDUCT
SUBCHAPTER A. GENERAL PROVISIONS
The Texas State Board of Public Accountancy (Board) proposes an amendment to §501.51, concerning Preamble and General Principles.
The amendment to §501.51 makes it clear that CPAs not only have an obligation of professional responsibility to their client when in private practice but to their employer when in industry practice. The amendment also deletes the interpretive comment in subsection (h) and relocates it to another rule and replaces accounting terms with acronyms that have been defined in §501.55.
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the amendment will be none.
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 CPAs' responsibility to their employers and to streamline the rule.
The probable economic cost to persons required to comply with the amendment will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.
The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on November 7, 2011. Comments should be addressed 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.
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 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 rule 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).
The amendment is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§501.51.Preamble and General Principles.
(a) These rules of professional conduct were promulgated under the Public Accountancy Act, which directs the Texas State Board of Public Accountancy to promulgate rules of professional conduct "in order to establish and maintain high standards of competence and integrity in the practice of public accountancy and to insure that the conduct and competitive practices of licensees serve the purposes of the Act and the best interest of the public."
(b) The services usually and customarily performed
by those in the public, industry, or government practice of accountancy
involve a high degree of skill, education, trust, and experience which
are professional in scope and nature. The use of professional designations
carries an implication of possession of the competence associated
with a profession. The public, in general, and the business community,
in particular, rely on this professional competence by placing confidence
in reports and other services of accountants. The public's reliance,
in turn, imposes obligations on persons utilizing professional designations[
, both] to their clients, employers and to the public
in general. These obligations include maintaining independence in
fact and in appearance, while in the client practice of public
accountancy, continuously improving professional skills, observing
GAAP [generally accepted accounting principles
] and GAAS, when required [
generally accepted auditing standards],
promoting sound and informative financial reporting, holding the affairs
of clients and employers in confidence, upholding the standards
of the public accountancy profession, and maintaining high standards
of personal and professional conduct in all matters.
(c) The board has an underlying duty to the public to insure that these obligations are met in order to achieve and maintain a vigorous profession capable of attracting the bright minds essential to serving adequately the public interest.
(d) These rules recognize the First Amendment rights of the general public as well as licensees and do not restrict the availability of accounting services. However, public accountancy, like other professional services, cannot be commercially exploited without the public being harmed. While information as to the availability of accounting services and qualifications of licensees is desirable, such information should not be transmitted to the public in a misleading fashion.
(e) The rules are intended to have application to all kinds of professional services performed in the practice of public accountancy, including services relating to:
(1) accounting, auditing and other assurance services,
(2) taxation,
(3) financial advisory services,
(4) litigation support,
(5) internal auditing,
(6) forensic accounting, and
(7) management advice and consultation.
(f) Finally, these rules also recognize the duty of certified public accountants to refrain from committing acts discreditable to the profession. These acts, whether or not related to the accountant's practice, impact negatively upon the public's trust in the profession.
(g) In the interpretation and enforcement of these rules, the board may consider relevant interpretations, rulings, and opinions issued by the boards of other jurisdictions and appropriate committees of professional organizations, but will not be bound thereby.
[(h) Interpretive Comment: Outsourced
internal audit services are considered engagements in the client practice
of public accountancy as defined in §501.52(8) of this title
(relating to Definitions).]
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 22, 2011.
TRD-201103938
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §501.53, concerning Applicability of Rules of Professional Conduct.
The amendment to §501.53 will correct rule references and titles that have changed.
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the amendment will be none.
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 correct references to the Board's rules.
The probable economic cost to persons required to comply with the amendment will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.
The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on November 7, 2011. Comments should be addressed 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.
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 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 rule 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).
The amendment is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§501.53.Applicability of Rules of Professional Conduct.
(a) All of the rules of professional conduct shall apply to and must be observed by a certificate or registration holder engaged in the client practice of public accountancy.
(b) No certificate or registration holder shall issue,
or otherwise be associated with, financial statements that do not
conform to the accounting principles described in [Section]
§501.61 of this chapter [title
] (relating to Accounting Principles).
(c) The following rules of professional conduct shall apply to and be required to be observed by certificate or registration holders when not employed in the client practice of public accountancy:
(1) [Section] §501.73 of
this chapter [title] (relating to Integrity
and Objectivity);
(2) [Section] §501.74 of
this chapter [title] (relating to Competence);
(3) [Section] §501.77 of
this chapter [title
] (relating to Acting through Others);
(4) [Section] §501.78 of
this chapter [title
] (relating to Withdrawal or Resignation);
(5) [Section] §501.90 of
this chapter [title
] (relating to Discreditable Acts);
(6) [Section] §501.91 of
this chapter [title
] (relating to Reportable Events);
(7) [Section] §501.92 of
this chapter [title
] (relating to Frivolous Complaints);
(8) [Section] §501.93 of
this chapter [title
] (relating to Responses); and
(9) [Section] §501.94 of
this chapter [title
] (relating to Mandatory Continuing
Professional Education [Reporting]).
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 22, 2011.
TRD-201103939
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-7842
(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas State Board of Public Accountancy or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin, Texas.)
The Texas State Board of Public Accountancy (Board) proposes to repeal §501.54, concerning Savings and Provisions and Disposition Table.
The repeal of §501.54 will remove a rule that is no longer needed for purposes of reference.
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed repeal will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the repeal will be none.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the repeal will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the repeal will be none.
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 to eliminate unnecessary language.
The probable economic cost to persons required to comply with the repeal will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed repeal will not affect a local economy.
Mr. Treacy has determined that the proposed repeal will not have an adverse economic effect on small businesses because the repeal does not impose any duties or obligations upon small businesses.
Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed repeal will not adversely affect small or micro businesses.
The Board requests comments on the substance and effect of the proposed repeal from any interested person. Comments must be received at the Board no later than noon on November 7, 2011. Comments should be addressed 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.
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 repeal is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the repeal, describe and estimate the economic impact of the repeal on small businesses, offer alternative methods of achieving the purpose of the repeal; 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).
The repeal is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which authorizes the Board to repeal rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed repeal.
§501.54.Savings and Provisions and Disposition Table.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 22, 2011.
TRD-201103940
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §501.55, concerning Definitions of Acronyms.
The amendment to §501.55 will add and define acronyms related to the accounting profession.
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the amendment will be none.
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 streamline and make the rule easier to understand.
The probable economic cost to persons required to comply with the amendment will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.
The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on November 7, 2011. Comments should be addressed 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.
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 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 rule 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).
The amendment is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§501.55.Definitions of Acronyms.
The following acronyms, when used in Title 22, Part 22 of the Texas Administrative Code relating to the Texas State Board of Public Accountancy, shall have the following meanings:
(1) "AICPA" means the American Institute of Certified Public Accountants;
(2) "CPA" means Certified Public Accountant;
(3) "CPE" means continuing professional education;
(4) "FASB" means the Financial Accounting Standards Board;
(5) "GAAP" means Generally Accepted Accounting Principles;
(6) "GAAS" means Generally Accepted Auditing Standards;
(7) "GAGAS" means Government Auditing Standards;
(8) "GASB" means the Governmental Accounting Standards Board;
(9) "IASB" means the International Accounting Standards Board;
(10) "IESB" means the International Ethics Standards Board;
(11) "IFRB" means International Financial Reporting Bulletins;
(12) "IFRS" means International Financial Reporting Standards;
(13) "IRS" means the Internal Revenue Service;
(14) [(4)] "NASBA" means the
National Association of State Boards of Accountancy;
(15) "NPRC" means the National Peer Review Committee;
(16) [(5)] "PCAOB" means the
Public Company Accounting Oversight Board;
(17) "SAS" means Statements on Auditing Standards;
(18) [(6)] "SEC" means the United
States Securities and Exchange Commission;
(19) "SOAH" means the State Office of Administrative Hearings;
(20) "SSAE" means Statements on Standards for Attestation Engagements;
(21) "SSARS" means Statements on Standards for Accounting and Review Services;
(22) "SSCS" means Statements on Standards for Consulting Services;
(23) "SSTS" means Statements on Standards for Tax Services;
(24) [(7)] "TSCPA" means the
Texas Society of Certified Public Accountants;
(25) "UAA" means the Uniform Accountancy Act;
(26) "UCPAE" means the Uniform Certified Public Accountant Examination;
(27) "U.S. GAO" means the United States Government Accountability Office; and
(28) "U.S. IQAB" means the United States International Qualifications Appraisal Board.
[(8) "NPRC" means the National Peer
Review Committee;]
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 22, 2011.
TRD-201103941
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §501.60, concerning Auditing Standards.
The amendment to §501.60 will replace accounting terms with acronyms that have been defined in §501.55 and add language to clarify standards issued by the PCAOB.
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the amendment will be none.
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 streamline the rule.
The probable economic cost to persons required to comply with the amendment will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.
The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on November 7, 2011. Comments should be addressed 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.
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 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 rule 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).
The amendment is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§501.60.Auditing Standards.
A person shall not permit his name to be associated with financial
statements in such a manner as to imply that he is acting as an auditor
with respect to such financial statements, unless he has complied
with GAAS [applicable generally accepted auditing
standards]. SAS [
Statements on auditing standards]
issued by the AICPA [American Institute of Certified
Public Accountants], auditing standards included in Standards
for Audit of Government Organizations, Programs, Activities and Functions
issued by the U.S. GAO, auditing and related professional practice
standards to be used by registered public accounting firms issued
by the PCAOB [United States General Accounting Office,
Public Company Accounting Oversight Board], and other pronouncements
having similar generally recognized authority, are considered to be
interpretations of GAAS [generally accepted auditing
standards, and departures from such pronouncements must be justified].
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 22, 2011.
TRD-201103942
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §501.61, concerning Accounting Principles.
The amendment to §501.61 will delete repeated words, add a reference to the Act and replace accounting terms with acronyms that have been defined in §501.55.
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the amendment will be none.
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 streamline the rule and make the rule easier to understand.
The probable economic cost to persons required to comply with the amendment will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.
The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on November 7, 2011. Comments should be addressed 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.
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 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 rule 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).
The amendment is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§501.61.Accounting Principles.
A person [or person] practicing under a practice
privilege as provided for in §901.462 of the Act (relating
to Practice by Out-of-State Practitioner With Substantially Equivalent
Qualifications), shall not issue a report asserting that financial
statements are presented in conformity with GAAP [generally
accepted accounting principles] if such financial statements
contain any departure from such accounting principles which has a
material effect on the financial statements taken as a whole, unless
the person [or person
] practicing under a practice privilege
as provided for in §901.462 of the Act can demonstrate that by
reason of unusual circumstances the financial statement(s) would otherwise
be [have been] misleading. The report must describe
the departure, the approximate effects thereof, if practicable, and
the reasons why compliance with GAAP [the generally
accepted accounting principles] would result in a misleading
statement. For purposes of this section, GAAP is [generally
accepted accounting principles are] considered to be defined
by pronouncements issued by FASB [the Financial Accounting
Standards Board
] and its predecessor entities and similar pronouncements
issued by other entities having similar generally recognized authority.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 22, 2011.
TRD-201103943
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §501.62, concerning Other Professional Standards.
The amendment to §501.62 will replace accounting terms with acronyms that have been defined in §501.55 and add clarity to the entities the board refers to.
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the amendment will be none.
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 streamline the rule and make the rule easier to understand.
The probable economic cost to persons required to comply with the amendment will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.
The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on November 7, 2011. Comments should be addressed 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.
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 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 rule 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).
The amendment is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§501.62.Other Professional Standards.
A person in the performance of consulting services, accounting and review services, any other attest service, or tax services shall conform to the professional standards applicable to such services. For purposes of this section, such professional standards are considered to be interpreted by:
(1) AICPA issued standards, including but not limited to:
(A) Statements on Standards on Consulting Services (SSCS);
(B) Statements on Standards for Accounting and Review Services (SSARS);
(C) Statements on Standards for Attestation Engagements (SSAE);
(D) Statements on Standards for Tax Services (SSTS); or
[(1) Statements on Standards
on Consulting Services (SSCS) issued by the American Institute of
Certified Public Accountants;]
[(2) Statements on Standards for Accounting and Review Services (SSARS) issued by the American Institute of Certified Public Accountants;]
[(3) Statements on Standards for Attestation Engagements (SSAE) issued by the American Institute of Certified Public Accountants;]
[(4) Statements on Standards for Tax Services issued by the American Institute of Certified Public Accountants; or]
(2) [(5)] [similar]
pronouncements by other professional entities having similar
national or international authority
recognized by the board.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 22, 2011.
TRD-201103944
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §501.70, concerning Independence.
The amendment to §501.70 will replace an accounting term with the acronym that has been defined in §501.55 and correct the name of the United States Government Accountability Office.
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the amendment will be none.
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 streamline the rule and make the rule easier to understand.
The probable economic cost to persons required to comply with the amendment will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.
The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on November 7, 2011. Comments should be addressed 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.
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 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 rule 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).
The amendment is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§501.70.Independence.
A person in the performance of professional accounting services
or professional accounting work, including those who are not members
of the AICPA, shall conform in fact and in appearance to the independence
standards established by the AICPA and the board, and, where applicable,
the SEC [
U.S. Securities and Exchange Commission],
the U.S. GAO [General Accounting Office], the
PCAOB and other national or international regulatory or professional
standard setting bodies.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 22, 2011.
TRD-201103945
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §501.71, concerning Receipt of Commissions and Other Compensation.
The amendment to §501.71 will clarify that the disclosure, which includes other benefits, must be made to the client when he receives or expects to receive it.
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the amendment will be none.
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 make the rule easier to understand.
The probable economic cost to persons required to comply with the amendment will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.
The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on November 7, 2011. Comments should be addressed 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.
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 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 rule 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).
The amendment is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§501.71.Receipt of Commission, Compensation or Other Benefit [Commissions and Other Compensation].
(a) A person shall not for a commission, compensation or other benefit recommend or refer to a client any product or service or refer any product or service to be supplied to a client, or receive a commission, compensation or other benefit when the person also performs services for that client requiring independence under §501.70 of this chapter (relating to Independence).
(b) This prohibition applies during the period in which the person is engaged to perform any of the services requiring independence and during the period covered by any of the historical financial statements involved in such services requiring independence.
(c) A person who receives, expects or agrees
to receive, pays, expects or agrees to pay, other compensation
in exchange for [with respect to] services or products
recommended, referred, or sold by him shall, no later than the making
of such recommendation, referral, or sale, disclose to the client in
writing the nature, source, and amount, or an estimate of the amount
when the amount is not known, of all such other compensation.
[(d) The disclosure shall
be made regardless of the amount of other compensation involved.]
(d) [(e)] This section does not
apply to payments received from the sale of all, or a material part,
of an accounting practice, or to retirement payments.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 22, 2011.
TRD-201103946
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §501.73, concerning Integrity and Objectivity.
The amendment to §501.73 will add a reference to the rule and replace an accounting term with the acronym that has been defined in §501.55.
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the amendment will be none.
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 streamline the rule and make the rule easier to understand.
The probable economic cost to persons required to comply with the amendment will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.
The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on November 7, 2011. Comments should be addressed 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.
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 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 rule 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).
The amendment is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§501.73.Integrity and Objectivity.
(a) A person in the performance of professional accounting
services or professional accounting work shall maintain integrity
and objectivity, shall be free of conflicts of interest and shall
not knowingly misrepresent facts nor subordinate his or her judgment
to others. In tax practice, however, a person may resolve doubt in
favor of his client as long as any tax position taken complies with
applicable standards such as those set forth in Circular 230 issued
by the IRS [Internal Revenue Service] and
the AICPA's SSTSs [
AICPA Statements on Standards for Tax Services].
(b) A conflict of interest may occur if a person performs a professional accounting service or professional accounting work for a client or employer and the person has a relationship with another person, entity, product, or service that could, in the person's professional judgment, be viewed by the client, employer, or other appropriate parties as impairing the person's objectivity. If the person believes that the professional accounting service or professional accounting work can be performed with objectivity, and the relationship is disclosed to and consent is obtained from such client, employer, or other appropriate parties, then this rule shall not operate to prohibit the performance of the professional accounting service or professional accounting work because of a conflict of interest.
(c) Certain professional engagements, such as audits, reviews, and other services, require independence. Independence impairments under §501.70 of this chapter (relating to Independence), its interpretations and rulings cannot be eliminated by disclosure and consent.
(d) A person shall not concurrently engage in the practice of public accountancy and in any other business or occupation which impairs independence or objectivity in rendering professional accounting services or professional accounting work, or which is conducted so as to augment or benefit the accounting practice unless these rules are observed in the conduct thereof.
[(e) Interpretive Comment:
Reference should be made to §501.62(4) and (5) of this title
(relating to Other Professional Standards) where applicable.]
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 22, 2011.
TRD-201103947
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §501.74, concerning Competence.
The amendment to §501.74 will correct references in the rule.
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the amendment will be none.
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 make the rule easier to understand.
The probable economic cost to persons required to comply with the amendment will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.
The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on November 7, 2011. Comments should be addressed 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.
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 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 rule 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).
The amendment is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§501.74.Competence.
(a) A person shall not undertake any engagement for
the performance of professional accounting services or professional
accounting work which he cannot reasonably expect to complete with
due professional competence, including compliance, where applicable,
with §501.60 of this chapter [title] (relating
to Auditing Standards), §501.61 of this chapter [title
] (relating to Accounting Principles), and §501.62 of this
chapter [title
] (relating to Other Professional Standards).
(1) Competence to perform professional accounting services or professional accounting work involves both the technical qualifications of the person and the person's staff and the ability to supervise and evaluate the quality of the work being performed.
(2) If a person is unable to gain sufficient competence to perform professional accounting services or professional accounting work, the person shall suggest to the client the engagement of someone competent to perform the needed professional accounting or professional accounting work service, either independently or as an associate.
(b) A person shall exercise due professional care in the performance of professional services.
(c) A person shall adequately plan and supervise the performance of professional services.
(d) A person shall obtain and maintain appropriate documentation to afford a reasonable basis for conclusions and recommendations in relation to any professional services performed.
(e) Interpretive comment: The person may have the knowledge required to complete the professional services with competence prior to performance. In some cases, however, additional research or consultation with others may be necessary during the performance of the professional services.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 22, 2011.
TRD-201103948
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §501.76, concerning Records and Work Papers.
The amendment to §501.76 will better clarify the definition of records and work papers and the standards by which CPAs should maintain them.
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the amendment will be none.
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 CPAs who will better maintain their clients' records and work papers.
The probable economic cost to persons required to comply with the amendment will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.
The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on November 7, 2011. Comments should be addressed 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.
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 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 rule 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).
The amendment is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§501.76.Records and Work Papers.
(a) Records.
(1) A person shall return original client records to a client or former client within a reasonable time (promptly, not to exceed 10 business days) after the client or former client has made a request for those records. Client records are those records provided to the person by the client or former client in order for the person to provide professional accounting services to the client or former client. Client records also include those documents obtained by the person on behalf of the client or former client in order for the person to provide professional accounting services to the client or former client. The person shall provide these records to the client or former client, regardless of the status of the client's or former client's account and cannot charge a fee to provide such records. Such records shall be returned to the client or former client in the same format, to the extent possible, that they were provided to the person by the client or former client. The person may make copies of such records and retain those copies.
(2) A person's work papers, to the to the extent that such work papers include records which would ordinarily constitute part of the client's or former client's books and records and are not otherwise available to the client or former client, shall also be furnished to the client within a reasonable time (promptly, not to exceed 10 business days) after the client has made a request for those records. The person can charge a reasonable fee for providing such work papers. Such work papers shall be in a format that the client or former client can use for the purpose of reading and using such work papers. Work papers which constitute client records include, but are not limited to:
(A) documents in lieu of books of original entry such as listings and distributions of cash receipts or cash disbursements;
(B) documents in lieu of general ledger or subsidiary ledgers, such as accounts receivable, job cost and equipment ledgers, or similar depreciation records;
(C) all adjusting and closing journal entries and supporting details when the supporting details are not fully set forth in the explanation of the journal entry; and
(D) consolidating or combining journal entries and documents and supporting detail in arriving at final figures incorporated in an end product such as financial statements or tax returns.
(b) Work papers. Work papers, regardless of format, are those documents developed by the person incident to the performance of his engagement which do not constitute records that must be returned to the client in accordance with subsection (a) of this section. Work papers developed by a person during the course of a professional engagement as a basis for, and in support of, an accounting, audit, consulting, tax, or other professional report prepared by the person for a client, shall be and remain the property of the person who developed the work papers.
(c) For a reasonable charge, a person shall furnish to his client or former client, upon request from his client made within a reasonable time after original issuance of the document in question:
(1) a copy of the client's tax return; or
(2) a copy of any report or other document previously issued by the person to or for such client or former client provided that furnishing such reports to or for a client or former client would not cause the person to be in violation of the portions of §501.60 of this chapter (relating to Auditing Standards) concerning subsequent events.
(d) This rule imposes no obligation on the person who provides services to a business entity to provide documents to anyone involved with the entity except the authorized representative of the entity.
[(a) Upon request,
a person shall provide to the client or former client any accounting
or other records, belonging to, or obtained from or on behalf of,
the client that the person removed from the client's premises or received
on behalf of the client. The records and work papers may be provided
to the client in either hard copy or other useable form. A person
may make and retain copies of such records when they form the basis
of work done by him. For a reasonable charge, a person shall furnish
to his client or former client, upon request made within a reasonable
time after original issuance of the document in question:]
[(1) a copy of the client's tax return;]
[(2) a copy of any report or other document previously issued by the person to or for such client provided that furnishing such reports to or for a client or former client would not cause the person to be in violation of the portions of §501.60 of this title (relating to Auditing Standards) concerning subsequent events;]
[(3) a copy of the person's work papers, to the extent that such work papers include records which would ordinarily constitute part of the client's books and records and are not otherwise available to the client.]
[(b) A person, when performing an engagement that is terminated prior to the completion of the engagement, is required to return or furnish the originals of only those records originally obtained by the person from the client.]
[(c) Work papers developed by a person during the course of a professional engagement as a basis for, and in support of, an accounting, audit, consulting, tax, or other professional report prepared by the person for a client, shall be and remain the property of the person who developed the work papers.]
[(1) Work papers, whether in the form of hard copy or computer readable format, are those documents developed by the person incident to the performance of his engagement which do not result in changes to the client's records or are in part of the records ordinarily maintained by the client.]
[(2) Analyses of inventory or other accounts as part of the person's selective audit procedures, even when prepared by client personnel at the request of the person, are the person's work papers.]
[(3) If the analyses described in paragraph (2) of this subsection result in changes to the client's records, the person is required to furnish the details from his work papers in support of the journal entries recording such changes unless the journal entries themselves contain all necessary details.]
[(d) Work papers include, but are not limited to:]
[(1) letters of confirmation and representation;]
[(2) excerpts of company documents;]
[(3) audit programs;]
[(4) internal memoranda;]
[(5) schedules;]
[(6) flowcharts; and]
[(7) narratives.]
[(e) Work papers which constitute client records include, but are not limited to:]
[(1) documents in lieu of books of original entry such as listings and distributions of cash receipts or cash disbursements;]
[(2) documents in lieu of general ledger or subsidiary ledgers, such as accounts receivable, job cost and equipment ledgers, or similar depreciation records;]
[(3) all adjusting and closing journal entries and supporting details when the supporting details are not fully set forth in the explanation of the journal entry; and]
[(4) consolidating or combining journal entries and documents and supporting detail in arriving at final figures incorporated in an end product such as financial statements or tax returns.]
(e) [(f)] Documentation or work
documents required by professional standards for attest services shall
be maintained in paper or electronic format by a person for a period
of not less than five years from the date of any report issued in
connection with the attest service, unless otherwise required by another
regulatory body. Failure to maintain such documentation or work papers
constitutes a violation of this section and may be deemed an admission
that they do not comply with professional standards.
(f) [(g)] Interpretive Comment:
It is recommended that a person obtain a receipt or other written
documentation of the delivery of records to a client.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 22, 2011.
TRD-201103949
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §501.78, concerning Withdrawal or Resignation.
The amendment to §501.78 will correct references to the Rules and add language that is more consistent with the Act.
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the amendment will be none.
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 make the rule easier to understand.
The probable economic cost to persons required to comply with the amendment will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.
The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on November 7, 2011. Comments should be addressed 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.
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 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 rule 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).
The amendment is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§501.78.Withdrawal or Resignation.
(a) If a person cannot complete an engagement to provide
professional [public
] accounting services and professional [public
] accounting work or employment assignment
in a manner that complies with the requirements of this chapter, the
person shall withdraw from the engagement or resign from the employment
assignment.
(b) If a person withdraws from an engagement or resigns from an employment assignment pursuant to this section, the person shall inform the client or employer of the withdrawal or resignation.
(c) Interpretive Comment: Any withdrawal or resignation
shall preferably be in writing. A person shall comply with the requirements
of §501.75 of this chapter [title] (relating
to Confidential Client Communications) and §501.90(16) of this
chapter [title] (relating to Discreditable Acts)
regarding confidential information of clients and employers during
and after a withdrawal or resignation executed pursuant to this section.
For purposes of this section, an engagement commences once an engagement
letter is signed by the client, time is charged to the engagement,
or compensation is received by a person in connection with an engagement
or employment assignment.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 22, 2011.
TRD-201103950
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §501.80, concerning Practice of Public Accountancy.
The amendment to §501.80 will replace accounting terms with the acronyms that have been defined in §501.55 and correct references to the rules.
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the amendment will be none.
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 make the rule easier to understand.
The probable economic cost to persons required to comply with the amendment will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.
The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on November 7, 2011. Comments should be addressed 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.
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 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 rule 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).
The amendment is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§501.80.Practice of Public Accountancy.
(a) A person may not engage in the practice of public
accountancy unless he holds a valid license or qualifies under a practice
privilege. A person may not use the title or designation "certified
public accountant," the abbreviation "CPA," or any other title, designation,
word, letter, abbreviation, sign, card, or device tending to indicate
that the person is a CPA [certified public accountant]
unless he holds a valid license issued by the board or qualifies under
a practice privilege. A license is not valid for any date or for any
period prior to the date it is issued by the board and it automatically
expires and is no longer valid after the end of the period for which
it is issued.
(b) Any licensee of this board in good standing as a CPA [
certified public accountant] or public
accountant may use such designation whether or not the licensee is
in the client, industry, or government practice of public accountancy.
However, a licensee who is not in the client practice of public accountancy
may not in any manner, through use of the CPA designation or otherwise,
claim or imply independence from his employer or that the licensee
is in the client practice of public accountancy.
(c) Interpretive Comment: This section incorporates
the definitions of the practice of public accountancy and professional
services and accounting work found in §501.52(8) and [
§501.52](21) of this chapter [title] (relating
to Definitions) as well as §901.003 of the Act (relating to Practice
of Public Accountancy).
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 22, 2011.
TRD-201103951
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §501.81, concerning Firm License Requirements.
The amendment to §501.81 will correct terms that should be lower-case, replace accounting terms with the acronyms that have been defined in §501.55 and correct a reference to a Rule.
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the amendment will be none.
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 make the rule easier to understand.
The probable economic cost to persons required to comply with the amendment will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.
The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on November 7, 2011. Comments should be addressed 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.
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 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 rule 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).
The amendment is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§501.81.Firm License Requirements.
(a) A firm [Firm], may not provide
or offer to provide attest services or use the title "CPA," "CPAs,"
"CPA Firm," "Certified Public Accountants," "Certified Public Accounting
Firm," or "Auditing Firm" or any variation of those titles unless
the firm holds a firm license issued by the board or qualifies under
a practice privilege. A firm license is not valid for any date or
for any period prior to the date it is issued by the board and it
automatically expires and is no longer valid after the end of the
period for which it is issued. A firm license does not expire when
the application for license renewal [licensure]
is received by the board [Board] prior to its
expiration date. An expiration date for a firm license may be extended
by the board [Board], in its sole discretion,
upon a demonstration of extenuating circumstances that prevented the
firm from timely applying for or renewing a firm license.
(b) A firm is required to hold a license issued by the board if the firm establishes or maintains an office in this state.
(c) A firm is required to hold a license issued by the board and an individual must practice through a firm that holds such a license, if for a client that has its principal office in this state, the individual performs:
(1) a financial statement audit or other engagement
that is to be performed in accordance with SAS [the
Statements on Auditing Standards];
(2) an examination of prospective financial information
that is to be performed in accordance with
SSAE [theStatement on Standards of Attestation Engagements
]; or
(3) an engagement that is to be performed in accordance with auditing standards of the PCAOB or its successor.
(d) Each advertisement or written promotional statement that refers to a CPA's designation and his or her association with an unlicensed entity in the client practice of public accountancy must include the disclaimer: "This firm is not a CPA firm." The disclaimer 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 advertisement or written statement. If the advertisement is in audio format only, the disclaimer shall be clearly declared at the conclusion of each such presentation.
(e) The requirements of subsection (d) of this section do not apply with regard to a person performing services:
(1) as a licensed attorney at law of this state while in the practice of law or as an employee of a licensed attorney when acting within the scope of the attorney's practice of law;
(2) as an employee, officer, or director of a federally-insured depository institution, when lawfully acting within the scope of the legally permitted activities of the institution's trust department; or
(3) pursuant to a practice privilege.
(f) On the determination by the board that a person has practiced without a license or through an unlicensed firm in violation of subsection (d) of this section, the person's certificate shall be subject to revocation and may not be reinstated for at least 12 months from the date of the revocation.
(g) Interpretive Comment: A person who is employed
by an unlicensed firm that offers services that fall within the definitions
of the client practice of public accountancy as defined in §501.52(8)
and (21) of this chapter [title] (relating to
Definitions) and §901.003 of the Act (relating to Practice of
Public Accountancy) must comply with the disclaimer requirement found
in subsection (d) of this section.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 22, 2011.
TRD-201103952
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §501.82, concerning Advertising.
The amendment to §501.82 will delete unneeded language and add language that is more consistent with the Act for a more streamlined rule.
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the amendment will be none.
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 make the rule easier to understand.
The probable economic cost to persons required to comply with the amendment will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.
The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on November 7, 2011. Comments should be addressed 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.
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 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 rule 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).
The amendment is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§501.82.Advertising.
(a) A person shall not use or participate in the use of:
(1) any [written, oral, or electronic] communication
having reference to the person's professional services that contains
a false, fraudulent, misleading or deceptive statement or claim; nor
(2) any [written, oral or electronic] communication
that refers to the person's professional services that is accomplished
or accompanied by coercion, duress, compulsion, intimidation, threats,
overreaching, or vexatious or harassing conduct.
(b) Definitions:
(1) A "false, fraudulent, misleading[,]
or deceptive statement or claim" includes, but is not limited to,
a statement or claim which:
(A) contain a misrepresentation of fact;
(B) is likely to mislead or deceive because it fails to make full disclosure of relevant facts;
(C) is intended or likely to create false or unjustified expectations of favorable results;
(D) implies educational or professional attainments or licensing recognition not supported in fact;
(E) represents that professional accounting services can or will be completely performed for a stated fee when this is not the case, or makes representations with respect to fees for professional accounting services that do not disclose all variables that may reasonably be expected to affect the fees that will in fact be charged;
(F) contains other representations or implications that in reasonable probability will cause a reasonably prudent person to misunderstand or be deceived;
(G) implies the ability to improperly influence any court, tribunal, regulatory agency or similar body or official due to some special relations;
(H) consists of self-laudatory statements that are not based on verifiable facts;
(I) makes untrue comparisons with other accountants; or
(J) contains testimonials or endorsements that are not based upon verifiable facts.
(2) Broadcast--Any transmission over the airwaves or over a cable, wireline, Internet, cellular, e-mail system or any other electronic means.
(3) Coercion--Compelling by force so that one is constrained to do what his free will would otherwise refuse.
(4) Compulsion--Driving or urging by force or by physical or mental constraint to perform or forbear from performing an act.
(5) Direct personal communication--Either a face-to-face meeting or a conversation by telephone.
(6) Duress--Any conduct which overpowers the will of another.
(7) Harassing--Any word, gesture, or action which tends to alarm and verbally abuse another person.
(8) Intimidation--Willfully to take, or attempt to take, by putting in fear of bodily harm.
(9) Overreaching--Tricking, outwitting, or cheating anyone into doing an act which he would not otherwise do.
(10) Threats--Any menace of such a nature and extent as to unsettle the mind of anyone on whom it operates, and to take away from his acts that free and voluntary action which alone constitutes consent.
(11) Vexatious--Irritating or annoying.
(c) It is a violation of these rules for a person to persist in contacting a prospective client when the prospective client has made known to the person, or the person should have known the prospective client's desire not to be contacted by the person.
(d) In the case of an electronic or direct mail communication, the person shall retain a copy of the actual communication along with a list or other description of parties to whom the communication was distributed. Such copy shall be retained by the person for a period of at least 36 months from the date of its last distribution.
(e) Subsection (d) of this section does not apply to anyone when:
(1) the communication is made to anyone who is at that time a client of the person;
(2) the communication is invited by anyone to whom it was made; or
(3) the communication is made to anyone seeking to secure the performance of professional accounting services.
(f) In the case of broadcasting, the broadcast shall be recorded and the person shall retain a recording of the actual transmission for at least 36 months.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 22, 2011.
TRD-201103953
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §501.83, concerning Firm Names.
The amendment to §501.83 will correct terms that should be lower-case.
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the amendment will be none.
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 make the rule easier to understand.
The probable economic cost to persons required to comply with the amendment will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.
The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on November 7, 2011. Comments should be addressed 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.
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 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 rule 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).
The amendment is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§501.83.Firm Names.
(a) General rules applicable [Rules
Applicable] to all firms [Firms]:
(1) A firm name may not contain words, abbreviations or other language that are misleading to the public, or that may cause confusion to the public as to the legal form or ownership of the firm.
(2) A firm licensed by the board may not conduct business, perform or offer to perform services for or provide products to a client under a name other than the name in which the firm is licensed.
(3) A word, abbreviation or other language is presumed to be misleading if it:
(A) is a trade name or assumed name that does not comply with paragraph (4)(A) or (B) of this subsection;
(B) states or implies the quality of services offered, special expertise, expectation as to outcomes or favorable results, or geographic area of service;
(C) includes the name of a non-owner of the firm;
(D) includes the name of a non-CPA, except as provided in paragraph (4)(B) of this subsection;
(E) states or implies educational or professional attainment not supported in fact;
(F) states or implies licensing recognition for the firm or any of its owners not supported in fact; or
(G) includes a designation such as "and company," "company," "associates," "and associates," "group" or abbreviations thereof or similar designations implying that the firm has more than one employed licensee unless there are at least two employed licensees involved in the practice. Independent contractors are not considered employees under this subsection.
(4) A word, abbreviation or other language is presumed not misleading if it:
(A) is the name, surname, or initials of one or more current or former CPA owners of the firm, its predecessor firm or successor firm;
(B) is the name, surname, or initials of one or more current or former foreign practitioner owners of the firm, its predecessor firm or successor firm who are or would have been eligible to practice public accountancy in this state under §513.2 of this title (relating to Application for Registration of Foreign Practitioners);
(C) indicates the legal organization of the firm;[,] or[
;]
(D) states or implies a limitation on the type of service offered by the firm, such as "tax," "audit" or "investment advisory services," provided the firm in fact principally limits its practice to the type of service indicated in the name.
(5) The board may place conditions on the licensing of a firm in order to ensure compliance with the provisions of this section.
(b) Additional Requirements Based on Legal Form or Ownership.
(1) The names of a corporation, professional corporation, limited liability partnership, professional limited liability company or other similar legal forms of ownership must contain the form of ownership or an abbreviation thereof, such as "Inc.," "P.C.," "L.L.P." or "P.L.L.C."; except that a limited liability partnership organized before September 1, 1993 is not required to utilize the words "limited liability partnership" or any abbreviation thereof.
(2) Sole Proprietorships:
(A) The name of a firm that is a sole proprietor must contain the surname of the sole proprietor as it appears on the individual license issued to the sole proprietor by the board.
(B) A partner surviving the death of all other partners may continue to practice under the partnership name for up to two years after becoming a sole proprietor, notwithstanding subsection (d) of this section.
(c) The name of any current or former owner may not be used in a firm name during any period when such owner is prohibited from practicing public accountancy and prohibited from using the title "certified public accountant," "public accountant" or any abbreviation thereof, unless specifically permitted by the board.
(d) A firm licensed by the board is required to report to the board any change in the legal organization of the firm and amend the firm name to comply with this section regarding firm names for the new organization within thirty days of the effective date of such change.
(e) This section regarding firm names does not affect firms licensed by the board prior to the effective date of this section, but does apply to any change in legal organization or name that occurs after the effective date of this section. Nothing in this subsection prohibits the board from placing conditions on the licensing of a firm pursuant to subsection (a)(5) of this section at the time of renewal of the firm license.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 22, 2011.
TRD-201103954
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §501.85, concerning Complaint Notice.
The amendment to §501.85 replaces the listed telephone number with the telephone number to the Enforcement Division and deletes the word "firm" and replaces it with "person" to clarify that a complaint is not limited to a firm but can be made against a firm and an individual.
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the amendment will be none.
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 make contacting the Enforcement Division easier and faster and make the rule easier to understand.
The probable economic cost to persons required to comply with the amendment will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.
The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on November 7, 2011. Comments should be addressed 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.
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 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 rule 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).
The amendment is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§501.85.Complaint Notice.
When a person [firm] receives a complaint
that an alleged violation of the Act or Rules of Professional Conduct
has occurred, a person shall provide to the complainant a statement
that: Complaints concerning Certified Public Accountants may be addressed
in writing to the Texas State Board of Public Accountancy at 333 Guadalupe,
Tower 3, Suite 900, Austin, Texas 78701-3900, telephone (512)
305-7866 [305-7800
], e-mail to enforcement@tsbpa.state.tx.us,
or fax (512) 305-7854.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 22, 2011.
TRD-201103955
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-7842
(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas State Board of Public Accountancy or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin, Texas.)
The Texas State Board of Public Accountancy (Board) proposes the repeal of §501.86, concerning Disclosure of Subsequently Discovered Facts.
The repeal of §501.86 will remove a rule that is no longer needed.
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed repeal will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the repeal will be none.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the repeal will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the repeal will be none.
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 to eliminate unnecessary rules.
The probable economic cost to persons required to comply with the repeal will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed repeal will not affect a local economy.
Mr. Treacy has determined that the proposed repeal will not have an adverse economic effect on small businesses because the repeal does not impose any duties or obligations upon small businesses.
Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed repeal will not adversely affect small or micro businesses.
The Board requests comments on the substance and effect of the proposed repeal from any interested person. Comments must be received at the Board no later than noon on November 7, 2011. Comments should be addressed 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.
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 repeal is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the repeal, describe and estimate the economic impact of the repeal on small businesses, offer alternative methods of achieving the purpose of the repeal; 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).
The repeal is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which authorizes the Board to repeal rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed repeal.
§501.86.Disclosure of Subsequently Discovered Facts.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 22, 2011.
TRD-201103956
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §501.90, concerning Discreditable Acts.
The amendment to §501.90 will replace accounting terms with the acronyms that have been defined in §501.55 and correct references to the Rules and Act.
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the amendment will be none.
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 make the rule easier to understand.
The probable economic cost to persons required to comply with the amendment will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.
The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on November 7, 2011. Comments should be addressed 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.
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 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 rule 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).
The amendment is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§501.90.Discreditable Acts.
A person shall not commit any act that reflects adversely on that person's fitness to engage in the practice of public accountancy. A discreditable act includes but is not limited to:
(1) fraud or deceit in obtaining a certificate as a
CPA [certified public accountant
] or in obtaining registration
under the Act or in obtaining a license to practice public accounting;
(2) dishonesty, fraud or gross negligence in the practice of public accountancy;
(3) violation of any of the provisions of Subchapter J or §901.458 of the Act (relating to Loss of Independence) applicable to a person certified or registered by the board;
(4) final conviction of a felony or imposition of deferred adjudication or community supervision in connection with a criminal prosecution of a felony under the laws of any state or the United States;
(5) final conviction of any crime or imposition of deferred adjudication or community supervision in connection with a criminal prosecution, an element of which is dishonesty or fraud under the laws of any state or the United States, a criminal prosecution for a crime of moral turpitude, a criminal prosecution involving alcohol abuse or controlled substances, or a criminal prosecution for a crime involving physical harm or the threat of physical harm;
(6) cancellation, revocation, suspension or refusal
to renew authority to practice as a CPA [certified
public accountant] or a public accountant by any other state
for any cause other than failure to pay the appropriate registration
fee in such other state;
(7) suspension or revocation of or any consent decree concerning the right to practice before any state or federal regulatory or licensing body for a cause which in the opinion of the board warrants its action;
(8) knowingly participating in the preparation of a false or misleading financial statement or tax return;
(9) fiscal dishonesty or breach of fiduciary responsibility of any type;
(10) failure to comply with a final order of any state or federal court;
(11) repeated failure to respond to a client's inquiry within a reasonable time without good cause;
(12) intentionally misrepresenting facts or making a misleading or deceitful statement to a client, the board, board staff or any person acting on behalf of the board;
(13) giving intentional false sworn testimony or perjury in court or in connection with discovery in a court proceeding or in any communication to the board or any other federal or state regulatory or licensing body;
(14) threats of bodily harm or retribution to a client;
(15) public allegations of a lack of mental capacity of a client which cannot be supported in fact;
(16) voluntarily disclosing information communicated to the person by an employer, past or present, or through the person's employment in connection with accounting services rendered to the employer, except:
(A) by permission of the employer;
(B) pursuant to the Government Code, Chapter 554 (commonly referred to as the "Whistle Blowers Act");
(C) pursuant to:
(i) a court order signed by a judge; or
(ii) a summons:
(I) under the provisions of the Internal Revenue Code of 1986 and its subsequent amendments,
(II) the Securities Act of 1933 (15 U.S.C. §77a et seq.) and its subsequent amendments, or
(III) the Securities Exchange Act of 1934 (15 U.S.C. §78a et seq.) and its subsequent amendments;
(D) in an investigation or proceeding by the board;
(E) in an ethical investigation conducted by a professional
organization of CPAs [
certified public accountants]; [or]
(F) in the course of a peer review under [Section]
§901.159 of the [Public Accountancy] Act
(relating to Peer Review); or
(G) any information that is required to be disclosed by the professional standards for reporting on the examination of a financial statement.
(17) breaching the terms of an agreed consent order entered by the board or violating any Board Order.
(18) Interpretive Comment: The board has found in §519.7
of this title (relating to Misdemeanors that Subject a
Certificate or Registration Holder [Person
] to Discipline by
the Board) and §525.1 of this title (relating to Applications
for the Uniform CPA Examination, Issuance of the CPA Certificate,
or a License[, or Renewal of a License for Persons with Criminal
Backgrounds]) that any crime of moral turpitude directly relates
to the practice of public accountancy. A crime of moral turpitude
is defined in this chapter as a crime involving grave infringement
of the moral sentiment of the community. The board has found in §519.7
of this title that any crime involving alcohol abuse or controlled
substances directly relates to the practice of public accountancy.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 22, 2011.
TRD-201103957
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §501.91, concerning Reportable Events.
The amendment to §501.91 will delete the word "licensee" and replace it with "person" to clarify that reporting is not limited to a licensee and should include firms and individuals, replace accounting terms with the acronyms that have been defined in §501.55 and correct a reference to a Rule.
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the amendment will be none.
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 make the rule easier to understand.
The probable economic cost to persons required to comply with the amendment will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.
The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on November 7, 2011. Comments should be addressed 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.
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 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 rule 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).
The amendment is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§501.91.Reportable Events.
(a) A person [licensee] shall
report in writing to the board the occurrence of any of the following
events within 30 days of the date the
person [licensee]
has knowledge of these events:
(1) the conviction or imposition of deferred adjudication
of the person [licensee
] of any of the following:
(A) a felony;
(B) a crime of moral turpitude;
(C) any crime of which fraud or dishonesty is an element or that involves alcohol abuse or controlled substances; and
(D) any crime related to the qualifications, functions,
or duties of a public accountant or
CPA [certified public accountant
], or to acts or activities in the course and
scope of the practice of public accountancy or as a fiduciary.
(2) the cancellation, revocation, or suspension of
a certificate, other authority to practice, or refusal to renew a
certificate or other authority to practice as a
CPA [certified public accountant
] or a public accountant, by any state, foreign
country or other jurisdiction;
(3) the cancellation, revocation, or suspension of
the right to practice as a
CPA [certified public accountant
] or a public accountant before any governmental body or agency
or other licensing agency;
(4) an unappealable adverse finding in any state or
federal court or an agreed settlement in a civil action against the
person [licensee
] concerning professional accounting
services or professional accounting work or a finding of a breach
of fiduciary duty, fraud or misappropriation; or
(5) the loss of a professional license from another state or federal regulatory agency such as an insurance license or a securities license, resulting from an unappealable adverse finding.
(b) The report required by subsection (a) of this section
shall be signed by the person [licensee] and
shall set forth the facts which constitute the reportable event. If
the reportable event involves the action of an administrative agency
or court, then the report shall set forth the title of the matter,
court or agency name, docket number, and dates of occurrence of the
reportable event.
(c) Nothing in this section imposes a duty upon any
person [licensee
] to report to the board the occurrence
of any of the events set forth in subsection (a) of this section either
by or against any other person [licensee].
(d) As used in this section, a conviction includes the initial plea, verdict, or finding of guilt, plea of no contest, or pronouncement of sentence by a trial court even though that conviction may not be final or sentence may not be actually imposed until all appeals are exhausted.
(e) Interpretive Comment: A crime of moral turpitude
is defined in this chapter as a crime involving grave infringement
of the moral sentiment of the community and further defined in §501.90(18)
and §519.7 of this title (relating to Discreditable Acts and
Misdemeanors that Subject a Certificate or Registration Holder to
Discipline by the Board [and Misdemeanors that Subject a Certificate
or Registration Holder to Discipline by the Board]).
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 22, 2011.
TRD-201103958
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §501.93, concerning Responses.
The amendment to §501.93 will add clarity to the requirement that a response must be provided to the board within 30 days of the request.
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the amendment will be none.
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 make the rule easier to understand.
The probable economic cost to persons required to comply with the amendment will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.
The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on November 7, 2011. Comments should be addressed 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.
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 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 rule 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).
The amendment is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§501.93.Responses.
(a) A person shall substantively respond in writing,
within 30 days, to any communication from the board requesting
a response[, within 30 days]. The board may specify a shorter
time for response in the communication when circumstances so require.
The time to respond shall commence on the date the communication was
mailed, delivered to a courier or delivery service, faxed or e-mailed
to the last address, facsimile number, or e-mail address furnished
to the board by the applicant or person.
(b) A person shall provide copies of documentation
and/or work papers, within 30 days, in response to the
board's request at no expense to the board [within 30 days].
The board may specify a shorter time for response in the communication
when circumstances so require. The time to respond shall commence
on the date the request was mailed, delivered to a courier or delivery
service, faxed or e-mailed to the last address, facsimile number or
e-mail address furnished to the board by a person. A person may comply
with this subsection by providing the board with original records
for the board to duplicate. In such a circumstance, upon request the
board will provide an affidavit from the custodian of records documenting
custody and control of the records.
(c) Failure to timely respond substantively to written communications, or failure to furnish requested documentation and/or work papers, constitutes conduct indicating lack of fitness to serve the public as a professional accountant.
(d) Each applicant and each person required to be registered with the board under the Act shall notify the board, either in writing or through the board's website, of any and all changes in either such person's mailing address or telephone number and the effective date thereof within 30 days before or after such effective date.
(e) Interpretive Comment. This section should be read in conjunction with §519.6 of this title (relating to Subpoenas).
(f) Interpretive Comment. In this section, the term board includes board staff.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 22, 2011.
TRD-201103959
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-7842
SUBCHAPTER A. GENERAL PROVISIONS
The Texas State Board of Public Accountancy (Board) proposes an amendment to §519.8, concerning Administrative Penalties.
The amendment to §519.8 will implement the transfer of administrative penalties collected in the Board's disciplinary actions, excluding penalties for failing to maintain CPE, to the Scholarship Trust Fund for Fifth-Year Accounting Students.
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result of enforcing or administering the amendment will be none.
B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a result of enforcing or administering the amendment will be none.
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 the application of additional funding for the fifth-year accounting students scholarship program.
The probable economic cost to persons required to comply with the amendment will be none.
Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the amendment does not impose any duties or obligations upon small businesses.
Mr. Treacy has determined that an Economic Impact Statement and a Regulatory Flexibility Analysis are not required because the proposed amendment will not adversely affect small or micro businesses.
The Board requests comments on the substance and effect of the proposed rule from any interested person. Comments must be received at the Board no later than noon on November 7, 2011. Comments should be addressed 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.
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 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 rule 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).
The amendment is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code, §901.151 which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§519.8.Administrative Penalties.
(a) The board may impose an administrative penalty alone or in addition to other sanctions permitted under the Act. Board committees and the executive director are delegated the authority to determine that any alleged violation warrants an administrative penalty under Subchapter L of the Public Accountancy Act.
(b) The report of any such determination may be included in a notice of hearing.
(c) A request for a hearing under §901.554 of the Public Accountancy Act shall clearly notify the staff that the hearing must address issues relevant to the assessment of an administrative penalty by including the language "RESPONDENT SPECIFICALLY REQUESTS A HEARING ON ADMINISTRATIVE PENALTIES" in capital letters. Failure to include such language shall be a waiver of the right to a hearing within the meaning of §901.554 of the Public Accountancy Act.
(d) Pursuant to §901.551 of the Public Accountancy Act:
(1) the board imposes an administrative penalty on licensees who, in violation of §901.411 of the Public Accountancy Act:
(A) do not complete at least 120 hours of continuing professional education in each three-year license period;
(B) do not complete at least 20 hours in each one-year license period;
(C) do not comply with board rules for the reporting of continuing professional education; or
(D) fail to complete or report sufficient ethics hours as required by board §523.63 of this title (relating to Mandatory Continuing Professional Education Attendance).
(2) considering the seriousness of violation of §901.411 of the Public Accountancy Act, the hazard and potential hazard to the public from CPAs who are not trained in current accounting standards and practices, the amount necessary to deter future violations, and such other matters as the board considers justice may require, the board sets the administrative penalty for the violations described in §519.7(d)(1) of this title (relating to Administrative Penalties) at a minimum of $100 per licensee per license period
(3) the penalty may be assessed only on licensees against whom a final board order is issued.
(e) Administrative penalties collected by the board for disciplinary actions taken against licensees for any violation of the board's Rules of Professional Conduct, excluding §501.94 of this title (relating to Mandatory Continuing Professional Education), shall be transferred to the Scholarship Trust Fund for Fifth-Year Accounting Students to provide financial assistance to students intending to take the CPA exam.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 22, 2011.
TRD-201103960
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: November 6, 2011
For further information, please call: (512) 305-7842