86R5958 SOS-D
By: Watson, et al. S.B. No. 613
A BILL TO BE ENTITLED
AN ACT
relating to the continuation and functions of the Texas State Board
of Public Accountancy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 901.006, Occupations Code, is amended to
read as follows:
Sec. 901.006. APPLICATION OF SUNSET ACT. The Texas State
Board of Public Accountancy is subject to Chapter 325, Government
Code (Texas Sunset Act). Unless continued in existence as provided
by that chapter, the board is abolished and this chapter expires
September 1, 2031 [2019].
SECTION 2. Section 901.059, Occupations Code, is amended by
amending Subsection (b) and adding Subsection (d) to read as
follows:
(b) The training program must provide the person with
information regarding:
(1) the law governing board operations [this chapter];
(2) the board's programs, functions, rules, and budget
[operated by the board];
(3) [the role and functions of the board;
[(4)] the scope of and limitations on the rulemaking
authority [rules] of the board[, with an emphasis on the rules that
relate to disciplinary and investigatory authority];
(4) the types of board rules, interpretations, and
enforcement actions that may implicate federal antitrust law by
limiting competition or impacting prices charged by persons engaged
in a profession or business the board regulates, including rules,
interpretations, and enforcement actions that:
(A) regulate the scope of practice of persons in
a profession or business the board regulates;
(B) restrict advertising by persons in a
profession or business the board regulates;
(C) affects the price of goods or services
provided by persons in a profession or business the board
regulates; and
(D) restrict participation in a profession or
business the board regulates;
(5) [the current budget for the board;
[(6)] the results of the most recent formal audit of
the board;
(6) [(7)] the requirements of:
(A) laws relating to [the] open meetings, [law,
Chapter 551, Government Code;
[(B) the] public information, [law, Chapter 552,
Government Code;
[(C) the] administrative procedure, and
disclosing conflicts-of-interest [law, Chapter 2001, Government
Code]; and
(B) [(D)] other laws applicable to members of a
state policymaking body in performing their duties [relating to
public officials, including conflict-of-interest laws]; and
(7) [(8)] any applicable ethics policies adopted by
the board or the Texas Ethics Commission.
(d) The executive director of the board shall create a
training manual that includes the information required by
Subsection (b). The executive director shall distribute a copy of
the training manual annually to each member of the board. On
receipt of the training manual, each member of the board shall sign
and submit to the executive director a statement acknowledging
receipt of the training manual.
SECTION 3. Subchapter D, Chapter 901, Occupations Code, is
amended by adding Sections 901.164 and 901.169 to read as follows:
Sec. 901.164. OUTSIDE LEGAL COUNSEL. The board may not
contract with outside legal counsel to provide legal services to
the board, including representation of the board in a matter
referred to the State Office of Administrative Hearings, unless the
contract is approved by the attorney general as provided by Section
402.0212, Government Code, regardless of the source of money to be
used to pay the outside counsel.
Sec. 901.169. CRIMINAL HISTORY RECORD INFORMATION. (a)
The board shall require an individual to submit a complete and
legible set of fingerprints, on a form prescribed by the board, to
the board or to the Department of Public Safety for the purpose of
obtaining criminal history record information from the Department
of Public Safety and the Federal Bureau of Investigation if:
(1) the individual has not previously submitted
fingerprints for the purpose of the board obtaining criminal
history record information; and
(2) the individual:
(A) is an applicant to take the uniform CPA
examination;
(B) is an applicant for a certificate;
(C) is an owner or seeks to become an owner of a
certified public accountancy firm and the individual is not a
license holder, if requested by the board under Section 901.354(e);
(D) is an applicant for a license under
Subchapter I; or
(E) is an applicant for renewal of a license
under Subchapter I, unless the applicant is an individual who does
not engage in the practice of public accountancy because of
retirement or permanent disability.
(b) The board may not allow an individual to take the
uniform CPA examination or issue a certificate or license to an
individual who does not comply with the requirement of Subsection
(a).
(c) The board may administratively suspend or refuse to
renew the license of an individual who is an applicant for renewal
of a license under Subchapter I and who does not comply with the
requirement of Subsection (a).
(d) The board shall require a license holder who qualified
for an exemption described by Subsection (a)(2)(E) to comply with
the requirement of Subsection (a) if the license holder no longer
qualifies for the exemption.
(e) The board shall conduct a criminal history record
information check of each individual required to submit
fingerprints under Subsection (a) using information:
(1) provided by the individual under this section; and
(2) made available to the board by the Department of
Public Safety, the Federal Bureau of Investigation, and any other
criminal justice agency under Chapter 411, Government Code.
(f) The board may:
(1) enter into an agreement with the Department of
Public Safety to administer a criminal history record information
check required under this section; and
(2) authorize the Department of Public Safety to
collect from each applicant the costs incurred by the Department of
Public Safety in conducting the criminal history record information
check.
SECTION 4. Section 901.203, Occupations Code, is amended to
read as follows:
Sec. 901.203. COMPLAINT INFORMATION. (a) The board shall
maintain a system to promptly and efficiently act on complaints
filed with the board. The board shall maintain information about
parties to the complaint, the subject matter of the complaint, a
summary of the results of the review or investigation of the
complaint, and its disposition [a file on each written complaint
filed with the board. The file must include:
[(1) the name of the person who filed the complaint;
[(2) the date the complaint is received by the board;
[(3) the subject matter of the complaint;
[(4) the name of each person contacted in relation to
the complaint;
[(5) a summary of the results of the review or
investigation of the complaint; and
[(6) an explanation of the reason the file was closed,
if the board closed the file without taking action other than to
investigate the complaint].
(b) The board shall make information available describing
its [provide to the person filing the complaint and to each person
who is a subject of the complaint a copy of the board's policies
and] procedures for [relating to] complaint investigation and
resolution.
(c) The board[, at least quarterly until final disposition
of the complaint,] shall periodically notify the [person filing
the] complaint parties [and each person who is a subject of the
complaint] of the status of the complaint until final disposition
[investigation] unless the notice would jeopardize an undercover
investigation.
SECTION 5. Section 901.204, Occupations Code, is amended by
adding Subsections (c), (d), and (e) to read as follows:
(c) The board shall include on the agenda of each regular
board meeting an opportunity for public comment on each agenda item
or other issue before the board makes a decision on the item or
issue, except as otherwise provided by Subsection (d).
(d) The board may prohibit public comment at a meeting of
the board regarding an active investigation or enforcement
proceeding by the board.
(e) The board may not require a person who wishes to make a
public comment at a meeting of the board to notify the board in
advance of the meeting.
SECTION 6. Section 901.252, Occupations Code, is amended to
read as follows:
Sec. 901.252. ELIGIBILITY REQUIREMENTS. To be eligible to
receive a certificate, a person must:
(1) satisfy the requirements of [be of good moral
character as determined under] Section 901.253;
(2) meet the education requirements established under
Section 901.254 or 901.255;
(3) pass the uniform CPA examination;
(4) meet the work experience requirements established
under Section 901.256; and
(5) pass an examination on the rules of professional
conduct as determined by board rule.
SECTION 7. The heading to Section 901.253, Occupations
Code, is amended to read as follows:
Sec. 901.253. BACKGROUND [CHARACTER] INVESTIGATION.
SECTION 8. Section 901.253(a), Occupations Code, is amended
to read as follows:
(a) The board shall ensure that an applicant to take the
uniform CPA examination or to receive a certificate lacks a [is of
good moral character as demonstrated by a lack of] history of
dishonest or felonious acts. The board shall require each applicant
to comply with the requirements of Section 901.169(a).
SECTION 9. Section 901.309, Occupations Code, is amended to
read as follows:
Sec. 901.309. REEXAMINATION. A person who fails all or part
of an examination may apply for a subsequent examination, subject
to the board's satisfaction that the person meets the requirements
of this chapter relating to the person's background investigation
[moral character] and education.
SECTION 10. Section 901.351(e), Occupations Code, is
amended to read as follows:
(e) The board by rule shall specify:
(1) the form of the application for a firm license;
(2) the fee for an original or renewal firm license,
which may be based on the number of owners, members, partners,
shareholders, or employee license holders in this state, not to
exceed $25 for each of those persons; [and]
(3) the term of a firm license; and
(4) the requirements for renewal of a firm license.
SECTION 11. Section 901.353(a), Occupations Code, is
amended to read as follows:
(a) An office established or maintained in this state by a
firm of certified public accountants, a firm of public accountants,
or a person described by Section 901.355 must designate [be under
the direct supervision of] a resident manager who is responsible
for the license of the firm or person, as applicable. The resident
manager must be [who]:
(1) [is] an owner, member, partner, shareholder, or
employee of the firm or person that occupies the office; and
(2) [is] licensed under this chapter.
SECTION 12. Sections 901.354(b) and (e), Occupations Code,
are amended to read as follows:
(b) A certified public accountancy firm may include
individuals as owners who are not license holders if:
(1) the firm designates to the board as responsible
for the firm's license [and the supervision of the firm]:
(A) a license holder who resides in this state;
or
(B) if the firm is required under Section
901.351(a-1)(2) to hold a firm license, an individual practicing
under a privilege under Section 901.462;
(2) each owner who is not a license holder and who is a
resident of this state as determined by board rule:
(A) is actively involved in the firm or an
affiliated entity;
(B) lacks a [is of good moral character as
demonstrated by a lack of] history of dishonest or felonious acts;
(C) [holds a baccalaureate or graduate degree
conferred by a college or university acceptable to the board or
equivalent education as determined by the board;
[(D)] maintains any professional designation
held by the individual in good standing with the appropriate
organization or regulatory body that is identified or used in an
advertisement, letterhead, business card, or other firm-related
communication;
(D) [(E)] has passed an examination on the rules
of professional conduct as determined by board rule; and
(E) [(F)] complies with the rules of
professional conduct as determined by board rule; [and
[(G) maintains professional continuing education
applicable to license holders as required by board rule;] and
(3) the firm and the owners who are not license holders
comply with board disciplinary actions and other requirements the
board may impose by rule.
(e) The board may require an individual who is not a license
holder under this chapter to comply with the requirement of Section
901.169(a) [submit a complete set of fingerprints]. If the
individual does not comply with the requirement of that subsection
[provide the complete set of fingerprints] on request, the board
may refuse to allow that individual to become an owner of a
certified public accountancy firm and may cancel or refuse to issue
or renew a firm license to the firm.
SECTION 13. Section 901.402(a), Occupations Code, is
amended to read as follows:
(a) On payment of the required fees, the board shall issue a
license to an applicant who complies with the requirement of
Section 901.169(a) and:
(1) holds a certificate issued under this chapter; or
(2) holds a firm license issued under this chapter.
SECTION 14. Section 901.403, Occupations Code, is amended
by adding Subsection (c) to read as follows:
(c) The board shall require an applicant for renewal of a
license to comply with the requirement of Section 901.169(a).
SECTION 15. The heading to Section 901.409, Occupations
Code, is amended to read as follows:
Sec. 901.409. FEE REDUCTION FOR RETIRED PERSONS OR
[DISABLED] PERSONS WITH DISABILITIES.
SECTION 16. Section 901.411(d), Occupations Code, is
amended to read as follows:
(d) The board by rule may exempt certain license holders,
including license holders who are persons with disabilities
[disabled], retired, or not associated with accounting, as defined
by board rule, from all or part of the requirements of this section.
SECTION 17. Subchapter M, Chapter 901, Occupations Code, is
amended by adding Section 901.6011 to read as follows:
Sec. 901.6011. INJUNCTIVE RELIEF. (a) The attorney
general at the request of the board may petition a district court
for an injunction to prohibit a person who is violating this chapter
from continuing the violation.
(b) Venue in a suit for injunctive relief is in Travis
County.
(c) After application and a finding that a person is
violating this chapter, the district court shall grant the
injunctive relief the facts warrant.
SECTION 18. Section 901.656(a), Occupations Code, is
amended to read as follows:
(a) The board[, in consultation with the advisory committee
appointed under Section 901.657,] shall determine the maximum
amount of any scholarship awarded under this subchapter. The
scholarship may be spent by the recipient on the expenses for
tuition, fees, books, supplies, and living expenses incurred by the
student in connection with the student's fifth year of an
accounting program. Scholarships shall be made available to
eligible students attending:
(1) any institution of higher education; or
(2) any nonprofit independent institution approved by
the Texas Higher Education Coordinating Board under Section 61.222,
Education Code.
SECTION 19. The following provisions of the Occupations
Code are repealed:
(1) Section 901.163;
(2) Sections 901.253(b) and (c);
(3) Section 901.351(d); and
(4) Section 901.657.
SECTION 20. (a) Except as provided by Subsection (b) of
this section, Section 901.059, Occupations Code, as amended by this
Act, applies to a member of the Texas State Board of Public
Accountancy appointed before, on, or after the effective date of
this Act.
(b) A member of the Texas State Board of Public Accountancy
who, before the effective date of this Act, completed the training
program required by Section 901.059, Occupations Code, as that law
existed before the effective date of this Act, is only required to
complete additional training on the subjects added by this Act to
the training program required by Section 901.059, Occupations Code.
A board member described by this subsection may not vote,
deliberate, or be counted as a member in attendance at a meeting of
the board held on or after December 1, 2019, until the member
completes the additional training.
(c) Section 901.164, Occupations Code, as added by this Act,
applies only to an original contract entered into on or after the
effective date of this Act. An original contract entered into
before the effective date of this Act is governed by the law as it
existed immediately before the effective date of this Act, and that
law is continued in effect for that purpose.
(d) The Texas State Board of Public Accountancy shall
require each applicant for renewal of a license under Subchapter I,
Chapter 901, Occupations Code, to first comply with the requirement
of Section 901.169(a), Occupations Code, as added by this Act, not
later than September 1, 2021. Notwithstanding Sections
901.169(a)(2)(E) and 901.403(c), Occupations Code, as added by this
Act, an applicant for renewal of a license is not required to comply
with Section 901.169(a) until first required to by the board as
provided by this subsection.
(e) Section 901.203, Occupations Code, as amended by this
Act, applies only to a complaint filed with the Texas State Board of
Public Accountancy on or after the effective date of this Act. A
complaint filed before the effective date of this Act is governed by
the law in effect on the date the complaint was filed, and the
former law is continued in effect for that purpose.
(f) Sections 901.252, 901.253, and 901.309, Occupations
Code, as amended by this Act, apply only to an application submitted
to the Texas State Board of Public Accountancy on or after the
effective date of this Act. An application submitted before the
effective date of this Act is governed by the law in effect on the
date the application was submitted, and the former law is continued
in effect for that purpose.
(g) As soon as possible after the effective date of this
Act, the Texas State Board of Public Accountancy shall adopt or
amend any rules necessary to implement the changes in law made by
this Act to Chapter 901, Occupations Code.
SECTION 21. This Act takes effect September 1, 2019.