| 1 | 1 | | By: Williams S.B. No. 566 |
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| 2 | 2 | | (Otto) |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the regulation of the practice of public accountancy. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 901.153, Occupations Code, is amended by |
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| 10 | 10 | | adding Subsection (f) to read as follows: |
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| 11 | 11 | | (f) An enforcement committee may hold a closed meeting to |
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| 12 | 12 | | investigate and deliberate a disciplinary action under Subchapter K |
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| 13 | 13 | | relating to the enforcement of this chapter or board rules as |
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| 14 | 14 | | provided by Section 551.092, Government Code. |
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| 15 | 15 | | SECTION 2. Subsection (b), Section 901.457, Occupations |
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| 16 | 16 | | Code, is amended to read as follows: |
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| 17 | 17 | | (b) This section does not prohibit a license holder from |
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| 18 | 18 | | disclosing information that is required to be disclosed: |
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| 19 | 19 | | (1) by the professional standards for reporting on the |
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| 20 | 20 | | examination of a financial statement; |
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| 21 | 21 | | (2) under a summons or subpoena under the provisions |
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| 22 | 22 | | of the Internal Revenue Code of 1986 and its subsequent amendments, |
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| 23 | 23 | | the Securities Act of 1933 (15 U.S.C. Section 77a et seq.) and its |
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| 24 | 24 | | subsequent amendments, [or] the Securities Exchange Act of 1934 (15 |
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| 25 | 25 | | U.S.C. Section 78a et seq.) and its subsequent amendments, or The |
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| 26 | 26 | | Securities Act (Article 581-1 et seq., Vernon's Texas Civil |
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| 27 | 27 | | Statutes); |
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| 28 | 28 | | (3) [or] under a court order signed by a judge if the |
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| 29 | 29 | | [summons or] order: |
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| 30 | 30 | | (A) is addressed to the license holder; |
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| 31 | 31 | | (B) mentions the client by name; and |
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| 32 | 32 | | (C) requests specific information concerning the |
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| 33 | 33 | | client; |
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| 34 | 34 | | (4) [(3)] in an investigation or proceeding conducted |
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| 35 | 35 | | by the board; |
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| 36 | 36 | | (5) [(4)] in an ethical investigation conducted by a |
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| 37 | 37 | | professional organization of certified public accountants; or |
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| 38 | 38 | | (6) [(5)] in the course of a peer review under Section |
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| 39 | 39 | | 901.159 or in accordance with the requirements of the Public |
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| 40 | 40 | | Company Accounting Oversight Board or its successor. |
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| 41 | 41 | | SECTION 3. Section 901.601, Occupations Code, is amended by |
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| 42 | 42 | | amending Subsections (a) and (b) and adding Subsection (a-1) to |
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| 43 | 43 | | read as follows: |
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| 44 | 44 | | (a) If it appears to the board that a person is engaging in |
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| 45 | 45 | | an act or practice that constitutes the practice of public |
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| 46 | 46 | | accountancy without a license under this chapter, the board, after |
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| 47 | 47 | | notice [and an opportunity for a hearing], may issue a cease and |
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| 48 | 48 | | desist order prohibiting the person from engaging in that activity. |
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| 49 | 49 | | (a-1) A person who is issued a cease and desist order under |
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| 50 | 50 | | this section may request a hearing before the State Office of |
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| 51 | 51 | | Administrative Hearings. The hearing must be held not later than |
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| 52 | 52 | | the 10th day after the date the board receives the request for a |
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| 53 | 53 | | hearing. |
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| 54 | 54 | | (b) A violation of an order under this section constitutes |
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| 55 | 55 | | grounds for the board to seek injunctive relief and to impose |
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| 56 | 56 | | [imposition of] an administrative penalty under Subchapter L. |
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| 57 | 57 | | Notwithstanding Section 901.552, the amount of an administrative |
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| 58 | 58 | | penalty for a violation of an order under this section may not |
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| 59 | 59 | | exceed $25,000. |
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| 60 | 60 | | SECTION 4. Subchapter D, Chapter 551, Government Code, is |
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| 61 | 61 | | amended by adding Section 551.092 to read as follows: |
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| 62 | 62 | | Sec. 551.092. ENFORCEMENT COMMITTEE APPOINTED BY TEXAS |
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| 63 | 63 | | STATE BOARD OF PUBLIC ACCOUNTANCY. This chapter does not require an |
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| 64 | 64 | | enforcement committee appointed by the Texas State Board of Public |
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| 65 | 65 | | Accountancy to conduct an open meeting to investigate and |
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| 66 | 66 | | deliberate a disciplinary action under Subchapter K, Chapter 901, |
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| 67 | 67 | | Occupations Code, relating to the enforcement of Chapter 901 or the |
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| 68 | 68 | | rules of the Texas State Board of Public Accountancy. |
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| 69 | 69 | | SECTION 5. The following sections of the Occupations Code |
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| 70 | 70 | | are repealed: |
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| 71 | 71 | | (1) Subsection (c), Section 901.154; and |
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| 72 | 72 | | (2) Subsections (d) and (e), Section 901.308. |
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| 73 | 73 | | SECTION 6. The changes in law made by this Act to Section |
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| 74 | 74 | | 901.308, Occupations Code, apply only to an examination |
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| 75 | 75 | | administered on or after the effective date of this Act. An |
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| 76 | 76 | | examination administered before that date is governed by the law in |
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| 77 | 77 | | effect at the time the examination was administered, and the former |
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| 78 | 78 | | law is continued in effect for that purpose. |
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| 79 | 79 | | SECTION 7. This Act takes effect September 1, 2011. |
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