82R4285 EES-F
By: Otto H.B. No. 1522
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of the practice of public accountancy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 901.457(b), Occupations Code, is amended
to read as follows:
(b) This section does not prohibit a license holder from
disclosing information that is required to be disclosed:
(1) by the professional standards for reporting on the
examination of a financial statement;
(2) by applicable laws or government rules, including
[under a summons under] the provisions of the Internal Revenue Code
of 1986 and its subsequent amendments, the Securities Act of 1933
(15 U.S.C. Section 77a et seq.) and its subsequent amendments, and
[or] the Securities Exchange Act of 1934 (15 U.S.C. Section 78a et
seq.) and its subsequent amendments;
(3) [or] under a court order signed by a judge if the
[summons or] order:
(A) is addressed to the license holder;
(B) mentions the client by name; and
(C) requests specific information concerning the
client;
(4) [(3)] in an investigation or proceeding conducted
by the board;
(5) [(4)] in an ethical investigation conducted by a
professional organization of certified public accountants; or
(6) [(5)] in the course of a peer review under Section
901.159 or in accordance with the requirements of the Public
Company Accounting Oversight Board or its successor.
SECTION 2. Section 901.601, Occupations Code, is amended by
amending Subsections (a) and (b) and adding Subsection (a-1) to
read as follows:
(a) If it appears to the board that a person is engaging in
an act or practice that constitutes the practice of public
accountancy without a license under this chapter, the board, after
notice [and an opportunity for a hearing], may issue a cease and
desist order prohibiting the person from engaging in that activity.
(a-1) A person who is issued a cease and desist order under
this section may request a hearing before the State Office of
Administrative Hearings. The hearing must be held not later than
the 10th day after the date the board receives the request for a
hearing.
(b) A violation of an order under this section constitutes
grounds for the board to seek injunctive relief and to impose
[imposition of] an administrative penalty under Subchapter L.
Notwithstanding Section 901.552, the amount of an administrative
penalty for a violation of an order under this section may not
exceed $25,000.
SECTION 3. The following sections of the Occupations Code
are repealed:
(1) Section 901.154(c); and
(2) Sections 901.308(d) and (e).
SECTION 4. The changes in law made by this Act to Section
901.308, Occupations Code, apply only to an examination
administered on or after the effective date of this Act. An
examination administered before that date is governed by the law in
effect at the time the examination was administered, and the former
law is continued in effect for that purpose.
SECTION 5. This Act takes effect September 1, 2011.