PART 22. TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY
CHAPTER 515. LICENSES
On January 14, 2021, the Texas State Board of Public Accountancy filed proposed amendments to 22 TAC §515.8 for publication in the January 29, 2021, issue of the Texas Register. Due to an error by the Texas Register, the text of the amendments appeared in the online Texas Register database but not the in print or online HTML and PDF versions of the January 29, 2021, issue. Due to the error, the proposal is being reprinted in the February 12, 2021, issue.
The Texas State Board of Public Accountancy (Board) proposes an amendment to §515.8, concerning Retired or Disability Status.
Background, Justification and Summary
Board Rule 515.8 currently provides for applying for retirement status with a form. The proposed revision provides for an electronic application.
Fiscal Note
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment is in effect, there will be no additional estimated cost to the state, no estimated reduction in costs to the state and to local governments, and no estimated loss or increase in revenue to the state, as a result of enforcing or administering the amendment.
Public Benefit
The adoption of the proposed amendment will clarify the process for applying for retirement status.
Probable Economic Cost and Local Employment Impact
Mr. Treacy, Executive Director, has determined that there will be no probable economic cost to persons required to comply with the amendment and a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Small Business, Rural Community and Micro-Business Impact Analysis
William Treacy, Executive Director, has determined that the proposed amendment will not have an adverse economic effect on small businesses, rural communities or micro-businesses because the amendment does not impose any duties or obligations upon small businesses, rural communities or micro-businesses; therefore, an Economic Impact Statement and a Regulatory Flexibility Analysis are not required.
Government Growth Impact Statement
William Treacy, Executive Director, has determined that for the first five-year period the amendment is in effect, the proposed rule: does not create or eliminate a government program; does not create or eliminate employee positions; does not increase or decrease future legislative appropriations to the Board; does not increase or decrease fees paid to the Board; does not create a new regulation; limits the existing regulation; does not increase or decrease the number of individuals subject to the proposed rule's applicability; and does not positively or adversely affect the state's economy.
Takings Impact Assessment
No takings impact assessment is necessary because there is no proposed use of private real property as a result of the proposed rule revision.
The requirement related to a rule increasing costs to regulated persons does not apply to the Texas State Board of Public Accountancy because the rule is being proposed by a self-directed semi-independent agency. (§2001.0045(c)(8))
Public Comment
Written comments may be submitted to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 505 E. Huntland Dr., Suite 380, Austin, Texas 78752 or faxed to his attention at (512) 305-7854, no later than noon on March 1, 2021.
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; and 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).
Statutory Authority
The amendment is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code §901.151 and §901.655 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.
§515.8.Retired or Disability Status.
(a) Retired status. A licensee who is at least 60 years
old and has affirmed [filed a request on a form prescribed
by the board stating] that the licensee [he]
has no association with accounting may be granted retired status at
the time of license renewal. A licensee in retired status is exempt
from the fingerprinting required in §515.1(d) of this chapter
(relating to License). A licensee who has been granted retired status
and who reenters the workforce in a position that has an association
with accounting automatically loses the retired status except as provided
for in subsection (a)(1) of this section, and must provide the fingerprinting
required in §515.1(d) of this chapter unless previously submitted
to the board.
(1) A licensee who serves without compensation on a Board of Directors, or Board of Trustees, or provides volunteer tax preparation services, participates in a government sponsored business mentoring program such as the Internal Revenue Service's Volunteer Income Tax Assistance (VITA) program or the Small Business Administration's SCORE program or participates in an advisory role for a similar charitable, civic or other non-profit organization continues to be eligible for retired status.
(2) Licensees providing such uncompensated volunteer services have the responsibility to maintain professional competence relative to the volunteer services they provide even though exempted from CPE requirements.
(3) The board shall require licensees to affirm in writing their understanding of the limited types of activities in which they may engage while in retired status and their understanding that they have a professional duty to ensure that they hold the professional competencies necessary to offer these limited volunteer services.
(4) Licensees may only convert to retired status if they hold a license in good standing and not be subject to any sanction or disciplinary action.
(5) Compensated services do not include routine reimbursement for travel costs and meals associated with the volunteer services or de minimis per diem amounts paid to cover such expenses.
(6) A retired licensee shall place the word "retired"
adjacent to the retired licensee’s [his]
CPA or Public Accountant title on any business card, letterhead or
any other document. A licensee may be held responsible for a third
party incorrectly repeating the CPA's title and shall make reasonable
efforts to assure that the word "retired" is used in conjunction with
CPA. Any of these terms must not be applied in such a manner that
could likely confuse the public as to the current status of the licensee.
The licensee will not be required to have a certificate issued with
the word "retired" on the certificate.
(7) A licensee in "retired" status is not required:
(A) to maintain CPE; and
(B) provide fingerprinting in accordance with §515.1(d) of this chapter unless the retired status is removed.
(8) A retired licensee shall not offer or render professional
services that requires the retired licensee’s [his]
signature and use of the CPA title either with or without "retired"
attached, except a retired licensee providing supervision of an applicant
to take the UCPAE may sign the work experience form.
(9) Upon reentry into the workforce, the licensee must notify the board and request a new license renewal notice and:
(A) pay the license fee established by the board for
the period since the licensee [he] became employed;
(B) complete a new license renewal notice; and
(C) meet the CPE requirements for the period since the
licensee [he] was granted the retired status as required
by §523.113(3) of this title (relating to Exemptions from CPE).
(b) Disability status. Disability status may be granted to an individual who submits to the board a statement and an affidavit from the licensee's physician which identifies the disability and states that the individual is unable to work because of a severe ongoing physical or mental impairment or medical condition that is not likely to improve within the next 12 consecutive months. This status may be granted only at the time of license renewal.
(1) Disability status is immediately revoked upon:
(A) the CPA reentering the workforce in a position
that has an association with accounting work for which the CPA [he] receives compensation; or
(B) the CPA serving on a Board of Directors, Board of Trustees, or in a similar governance position unless the service is for a charity, civic, or similar non-profit organization.
(2) Upon reentry into the workforce under such conditions, the individual must notify the board and request a new license renewal notice and:
(A) pay the license fee established by the board for
the period since the individual [he] became employed;
(B) complete a new license renewal notice;
(C) meet the CPE requirements for the period pursuant to §523.113(3) of this title; and
(D) provide the fingerprinting required in §515.1(d) of this chapter unless previously submitted.
(c) For purposes of this section the term "association with accounting" shall include the following:
(1) working or providing oversight of accounting or supervising work performed in the areas of financial accounting and reporting; tax compliance, planning or advice; management advisory services; accounting information systems; treasury, finance, or audit; or
(2) representing to the public, including an employer, that the individual is a CPA or public accountant in connection with the sale of any services or products involving accounting services or work, as provided for in §501.52(22) of this title (relating to Definitions) including such designation on a business card, letterhead, proxy statement, promotional brochure, advertisement, or office; or
(3) offering testimony in a court of law purporting to have expertise in accounting and reporting, auditing, tax, or management services; or
(4) providing instruction in accounting courses; or
(5) for purposes of making a determination as to whether the individual fits one of the categories listed in this section the questions shall be resolved in favor of including the work as an "association with accounting."
(d) Nothing herein shall be construed to limit the board's disciplinary authority with regard to a license in retired or disabled status. All board rules and all provisions of the Act apply to an individual in retired or disability status.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on January 14, 2021.
TRD-202100219
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: February 28, 2021
For further information, please call: (512) 305-7842