Texas 2019 - 86th Regular

Texas Senate Bill SB613 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R5958 SOS-D
2	2	By: Watson, et al. S.B. No. 613
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the continuation and functions of the Texas State Board
8	8	of Public Accountancy.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 901.006, Occupations Code, is amended to
11	11	read as follows:
12	12	Sec. 901.006. APPLICATION OF SUNSET ACT. The Texas State
13	13	Board of Public Accountancy is subject to Chapter 325, Government
14	14	Code (Texas Sunset Act). Unless continued in existence as provided
15	15	by that chapter, the board is abolished and this chapter expires
16	16	September 1, 2031 [2019].
17	17	SECTION 2. Section 901.059, Occupations Code, is amended by
18	18	amending Subsection (b) and adding Subsection (d) to read as
19	19	follows:
20	20	(b) The training program must provide the person with
21	21	information regarding:
22	22	(1) the law governing board operations [this chapter];
23	23	(2) the board's programs, functions, rules, and budget
24	24	[operated by the board];
25	25	(3) [the role and functions of the board;
26	26	[(4)] the scope of and limitations on the rulemaking
27	27	authority [rules] of the board[, with an emphasis on the rules that
28	28	relate to disciplinary and investigatory authority];
29	29	(4) the types of board rules, interpretations, and
30	30	enforcement actions that may implicate federal antitrust law by
31	31	limiting competition or impacting prices charged by persons engaged
32	32	in a profession or business the board regulates, including rules,
33	33	interpretations, and enforcement actions that:
34	34	(A) regulate the scope of practice of persons in
35	35	a profession or business the board regulates;
36	36	(B) restrict advertising by persons in a
37	37	profession or business the board regulates;
38	38	(C) affects the price of goods or services
39	39	provided by persons in a profession or business the board
40	40	regulates; and
41	41	(D) restrict participation in a profession or
42	42	business the board regulates;
43	43	(5) [the current budget for the board;
44	44	[(6)] the results of the most recent formal audit of
45	45	the board;
46	46	(6) [(7)] the requirements of:
47	47	(A) laws relating to [the] open meetings, [law,
48	48	Chapter 551, Government Code;
49	49	[(B) the] public information, [law, Chapter 552,
50	50	Government Code;
51	51	[(C) the] administrative procedure, and
52	52	disclosing conflicts-of-interest [law, Chapter 2001, Government
53	53	Code]; and
54	54	(B) [(D)] other laws applicable to members of a
55	55	state policymaking body in performing their duties [relating to
56	56	public officials, including conflict-of-interest laws]; and
57	57	(7) [(8)] any applicable ethics policies adopted by
58	58	the board or the Texas Ethics Commission.
59	59	(d) The executive director of the board shall create a
60	60	training manual that includes the information required by
61	61	Subsection (b). The executive director shall distribute a copy of
62	62	the training manual annually to each member of the board. On
63	63	receipt of the training manual, each member of the board shall sign
64	64	and submit to the executive director a statement acknowledging
65	65	receipt of the training manual.
66	66	SECTION 3. Subchapter D, Chapter 901, Occupations Code, is
67	67	amended by adding Sections 901.164 and 901.169 to read as follows:
68	68	Sec. 901.164. OUTSIDE LEGAL COUNSEL. The board may not
69	69	contract with outside legal counsel to provide legal services to
70	70	the board, including representation of the board in a matter
71	71	referred to the State Office of Administrative Hearings, unless the
72	72	contract is approved by the attorney general as provided by Section
73	73	402.0212, Government Code, regardless of the source of money to be
74	74	used to pay the outside counsel.
75	75	Sec. 901.169. CRIMINAL HISTORY RECORD INFORMATION. (a)
76	76	The board shall require an individual to submit a complete and
77	77	legible set of fingerprints, on a form prescribed by the board, to
78	78	the board or to the Department of Public Safety for the purpose of
79	79	obtaining criminal history record information from the Department
80	80	of Public Safety and the Federal Bureau of Investigation if:
81	81	(1) the individual has not previously submitted
82	82	fingerprints for the purpose of the board obtaining criminal
83	83	history record information; and
84	84	(2) the individual:
85	85	(A) is an applicant to take the uniform CPA
86	86	examination;
87	87	(B) is an applicant for a certificate;
88	88	(C) is an owner or seeks to become an owner of a
89	89	certified public accountancy firm and the individual is not a
90	90	license holder, if requested by the board under Section 901.354(e);
91	91	(D) is an applicant for a license under
92	92	Subchapter I; or
93	93	(E) is an applicant for renewal of a license
94	94	under Subchapter I, unless the applicant is an individual who does
95	95	not engage in the practice of public accountancy because of
96	96	retirement or permanent disability.
97	97	(b) The board may not allow an individual to take the
98	98	uniform CPA examination or issue a certificate or license to an
99	99	individual who does not comply with the requirement of Subsection
100	100	(a).
101	101	(c) The board may administratively suspend or refuse to
102	102	renew the license of an individual who is an applicant for renewal
103	103	of a license under Subchapter I and who does not comply with the
104	104	requirement of Subsection (a).
105	105	(d) The board shall require a license holder who qualified
106	106	for an exemption described by Subsection (a)(2)(E) to comply with
107	107	the requirement of Subsection (a) if the license holder no longer
108	108	qualifies for the exemption.
109	109	(e) The board shall conduct a criminal history record
110	110	information check of each individual required to submit
111	111	fingerprints under Subsection (a) using information:
112	112	(1) provided by the individual under this section; and
113	113	(2) made available to the board by the Department of
114	114	Public Safety, the Federal Bureau of Investigation, and any other
115	115	criminal justice agency under Chapter 411, Government Code.
116	116	(f) The board may:
117	117	(1) enter into an agreement with the Department of
118	118	Public Safety to administer a criminal history record information
119	119	check required under this section; and
120	120	(2) authorize the Department of Public Safety to
121	121	collect from each applicant the costs incurred by the Department of
122	122	Public Safety in conducting the criminal history record information
123	123	check.
124	124	SECTION 4. Section 901.203, Occupations Code, is amended to
125	125	read as follows:
126	126	Sec. 901.203. COMPLAINT INFORMATION. (a) The board shall
127	127	maintain a system to promptly and efficiently act on complaints
128	128	filed with the board. The board shall maintain information about
129	129	parties to the complaint, the subject matter of the complaint, a
130	130	summary of the results of the review or investigation of the
131	131	complaint, and its disposition [a file on each written complaint
132	132	filed with the board. The file must include:
133	133	[(1) the name of the person who filed the complaint;
134	134	[(2) the date the complaint is received by the board;
135	135	[(3) the subject matter of the complaint;
136	136	[(4) the name of each person contacted in relation to
137	137	the complaint;
138	138	[(5) a summary of the results of the review or
139	139	investigation of the complaint; and
140	140	[(6) an explanation of the reason the file was closed,
141	141	if the board closed the file without taking action other than to
142	142	investigate the complaint].
143	143	(b) The board shall make information available describing
144	144	its [provide to the person filing the complaint and to each person
145	145	who is a subject of the complaint a copy of the board's policies
146	146	and] procedures for [relating to] complaint investigation and
147	147	resolution.
148	148	(c) The board[, at least quarterly until final disposition
149	149	of the complaint,] shall periodically notify the [person filing
150	150	the] complaint parties [and each person who is a subject of the
151	151	complaint] of the status of the complaint until final disposition
152	152	[investigation] unless the notice would jeopardize an undercover
153	153	investigation.
154	154	SECTION 5. Section 901.204, Occupations Code, is amended by
155	155	adding Subsections (c), (d), and (e) to read as follows:
156	156	(c) The board shall include on the agenda of each regular
157	157	board meeting an opportunity for public comment on each agenda item
158	158	or other issue before the board makes a decision on the item or
159	159	issue, except as otherwise provided by Subsection (d).
160	160	(d) The board may prohibit public comment at a meeting of
161	161	the board regarding an active investigation or enforcement
162	162	proceeding by the board.
163	163	(e) The board may not require a person who wishes to make a
164	164	public comment at a meeting of the board to notify the board in
165	165	advance of the meeting.
166	166	SECTION 6. Section 901.252, Occupations Code, is amended to
167	167	read as follows:
168	168	Sec. 901.252. ELIGIBILITY REQUIREMENTS. To be eligible to
169	169	receive a certificate, a person must:
170	170	(1) satisfy the requirements of [be of good moral
171	171	character as determined under] Section 901.253;
172	172	(2) meet the education requirements established under
173	173	Section 901.254 or 901.255;
174	174	(3) pass the uniform CPA examination;
175	175	(4) meet the work experience requirements established
176	176	under Section 901.256; and
177	177	(5) pass an examination on the rules of professional
178	178	conduct as determined by board rule.
179	179	SECTION 7. The heading to Section 901.253, Occupations
180	180	Code, is amended to read as follows:
181	181	Sec. 901.253. BACKGROUND [CHARACTER] INVESTIGATION.
182	182	SECTION 8. Section 901.253(a), Occupations Code, is amended
183	183	to read as follows:
184	184	(a) The board shall ensure that an applicant to take the
185	185	uniform CPA examination or to receive a certificate lacks a [is of
186	186	good moral character as demonstrated by a lack of] history of
187	187	dishonest or felonious acts. The board shall require each applicant
188	188	to comply with the requirements of Section 901.169(a).
189	189	SECTION 9. Section 901.309, Occupations Code, is amended to
190	190	read as follows:
191	191	Sec. 901.309. REEXAMINATION. A person who fails all or part
192	192	of an examination may apply for a subsequent examination, subject
193	193	to the board's satisfaction that the person meets the requirements
194	194	of this chapter relating to the person's background investigation
195	195	[moral character] and education.
196	196	SECTION 10. Section 901.351(e), Occupations Code, is
197	197	amended to read as follows:
198	198	(e) The board by rule shall specify:
199	199	(1) the form of the application for a firm license;
200	200	(2) the fee for an original or renewal firm license,
201	201	which may be based on the number of owners, members, partners,
202	202	shareholders, or employee license holders in this state, not to
203	203	exceed $25 for each of those persons; [and]
204	204	(3) the term of a firm license; and
205	205	(4) the requirements for renewal of a firm license.
206	206	SECTION 11. Section 901.353(a), Occupations Code, is
207	207	amended to read as follows:
208	208	(a) An office established or maintained in this state by a
209	209	firm of certified public accountants, a firm of public accountants,
210	210	or a person described by Section 901.355 must designate [be under
211	211	the direct supervision of] a resident manager who is responsible
212	212	for the license of the firm or person, as applicable. The resident
213	213	manager must be [who]:
214	214	(1) [is] an owner, member, partner, shareholder, or
215	215	employee of the firm or person that occupies the office; and
216	216	(2) [is] licensed under this chapter.
217	217	SECTION 12. Sections 901.354(b) and (e), Occupations Code,
218	218	are amended to read as follows:
219	219	(b) A certified public accountancy firm may include
220	220	individuals as owners who are not license holders if:
221	221	(1) the firm designates to the board as responsible
222	222	for the firm's license [and the supervision of the firm]:
223	223	(A) a license holder who resides in this state;
224	224	or
225	225	(B) if the firm is required under Section
226	226	901.351(a-1)(2) to hold a firm license, an individual practicing
227	227	under a privilege under Section 901.462;
228	228	(2) each owner who is not a license holder and who is a
229	229	resident of this state as determined by board rule:
230	230	(A) is actively involved in the firm or an
231	231	affiliated entity;
232	232	(B) lacks a [is of good moral character as
233	233	demonstrated by a lack of] history of dishonest or felonious acts;
234	234	(C) [holds a baccalaureate or graduate degree
235	235	conferred by a college or university acceptable to the board or
236	236	equivalent education as determined by the board;
237	237	[(D)] maintains any professional designation
238	238	held by the individual in good standing with the appropriate
239	239	organization or regulatory body that is identified or used in an
240	240	advertisement, letterhead, business card, or other firm-related
241	241	communication;
242	242	(D) [(E)] has passed an examination on the rules
243	243	of professional conduct as determined by board rule; and
244	244	(E) [(F)] complies with the rules of
245	245	professional conduct as determined by board rule; [and
246	246	[(G) maintains professional continuing education
247	247	applicable to license holders as required by board rule;] and
248	248	(3) the firm and the owners who are not license holders
249	249	comply with board disciplinary actions and other requirements the
250	250	board may impose by rule.
251	251	(e) The board may require an individual who is not a license
252	252	holder under this chapter to comply with the requirement of Section
253	253	901.169(a) [submit a complete set of fingerprints]. If the
254	254	individual does not comply with the requirement of that subsection
255	255	[provide the complete set of fingerprints] on request, the board
256	256	may refuse to allow that individual to become an owner of a
257	257	certified public accountancy firm and may cancel or refuse to issue
258	258	or renew a firm license to the firm.
259	259	SECTION 13. Section 901.402(a), Occupations Code, is
260	260	amended to read as follows:
261	261	(a) On payment of the required fees, the board shall issue a
262	262	license to an applicant who complies with the requirement of
263	263	Section 901.169(a) and:
264	264	(1) holds a certificate issued under this chapter; or
265	265	(2) holds a firm license issued under this chapter.
266	266	SECTION 14. Section 901.403, Occupations Code, is amended
267	267	by adding Subsection (c) to read as follows:
268	268	(c) The board shall require an applicant for renewal of a
269	269	license to comply with the requirement of Section 901.169(a).
270	270	SECTION 15. The heading to Section 901.409, Occupations
271	271	Code, is amended to read as follows:
272	272	Sec. 901.409. FEE REDUCTION FOR RETIRED PERSONS OR
273	273	[DISABLED] PERSONS WITH DISABILITIES.
274	274	SECTION 16. Section 901.411(d), Occupations Code, is
275	275	amended to read as follows:
276	276	(d) The board by rule may exempt certain license holders,
277	277	including license holders who are persons with disabilities
278	278	[disabled], retired, or not associated with accounting, as defined
279	279	by board rule, from all or part of the requirements of this section.
280	280	SECTION 17. Subchapter M, Chapter 901, Occupations Code, is
281	281	amended by adding Section 901.6011 to read as follows:
282	282	Sec. 901.6011. INJUNCTIVE RELIEF. (a) The attorney
283	283	general at the request of the board may petition a district court
284	284	for an injunction to prohibit a person who is violating this chapter
285	285	from continuing the violation.
286	286	(b) Venue in a suit for injunctive relief is in Travis
287	287	County.
288	288	(c) After application and a finding that a person is
289	289	violating this chapter, the district court shall grant the
290	290	injunctive relief the facts warrant.
291	291	SECTION 18. Section 901.656(a), Occupations Code, is
292	292	amended to read as follows:
293	293	(a) The board[, in consultation with the advisory committee
294	294	appointed under Section 901.657,] shall determine the maximum
295	295	amount of any scholarship awarded under this subchapter. The
296	296	scholarship may be spent by the recipient on the expenses for
297	297	tuition, fees, books, supplies, and living expenses incurred by the
298	298	student in connection with the student's fifth year of an
299	299	accounting program. Scholarships shall be made available to
300	300	eligible students attending:
301	301	(1) any institution of higher education; or
302	302	(2) any nonprofit independent institution approved by
303	303	the Texas Higher Education Coordinating Board under Section 61.222,
304	304	Education Code.
305	305	SECTION 19. The following provisions of the Occupations
306	306	Code are repealed:
307	307	(1) Section 901.163;
308	308	(2) Sections 901.253(b) and (c);
309	309	(3) Section 901.351(d); and
310	310	(4) Section 901.657.
311	311	SECTION 20. (a) Except as provided by Subsection (b) of
312	312	this section, Section 901.059, Occupations Code, as amended by this
313	313	Act, applies to a member of the Texas State Board of Public
314	314	Accountancy appointed before, on, or after the effective date of
315	315	this Act.
316	316	(b) A member of the Texas State Board of Public Accountancy
317	317	who, before the effective date of this Act, completed the training
318	318	program required by Section 901.059, Occupations Code, as that law
319	319	existed before the effective date of this Act, is only required to
320	320	complete additional training on the subjects added by this Act to
321	321	the training program required by Section 901.059, Occupations Code.
322	322	A board member described by this subsection may not vote,
323	323	deliberate, or be counted as a member in attendance at a meeting of
324	324	the board held on or after December 1, 2019, until the member
325	325	completes the additional training.
326	326	(c) Section 901.164, Occupations Code, as added by this Act,
327	327	applies only to an original contract entered into on or after the
328	328	effective date of this Act. An original contract entered into
329	329	before the effective date of this Act is governed by the law as it
330	330	existed immediately before the effective date of this Act, and that
331	331	law is continued in effect for that purpose.
332	332	(d) The Texas State Board of Public Accountancy shall
333	333	require each applicant for renewal of a license under Subchapter I,
334	334	Chapter 901, Occupations Code, to first comply with the requirement
335	335	of Section 901.169(a), Occupations Code, as added by this Act, not
336	336	later than September 1, 2021. Notwithstanding Sections
337	337	901.169(a)(2)(E) and 901.403(c), Occupations Code, as added by this
338	338	Act, an applicant for renewal of a license is not required to comply
339	339	with Section 901.169(a) until first required to by the board as
340	340	provided by this subsection.
341	341	(e) Section 901.203, Occupations Code, as amended by this
342	342	Act, applies only to a complaint filed with the Texas State Board of
343	343	Public Accountancy on or after the effective date of this Act. A
344	344	complaint filed before the effective date of this Act is governed by
345	345	the law in effect on the date the complaint was filed, and the
346	346	former law is continued in effect for that purpose.
347	347	(f) Sections 901.252, 901.253, and 901.309, Occupations
348	348	Code, as amended by this Act, apply only to an application submitted
349	349	to the Texas State Board of Public Accountancy on or after the
350	350	effective date of this Act. An application submitted before the
351	351	effective date of this Act is governed by the law in effect on the
352	352	date the application was submitted, and the former law is continued
353	353	in effect for that purpose.
354	354	(g) As soon as possible after the effective date of this
355	355	Act, the Texas State Board of Public Accountancy shall adopt or
356	356	amend any rules necessary to implement the changes in law made by
357	357	this Act to Chapter 901, Occupations Code.
358	358	SECTION 21. This Act takes effect September 1, 2019.