TITLE 22. EXAMINING BOARDS
PART 22. TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY
CHAPTER 511. ELIGIBILITY
SUBCHAPTER C.
The Texas State Board of Public Accountancy (Board) proposes an amendment to §511.51 concerning Educational Definitions.
Background, Justification and Summary.
Some schools use the term "upper level accounting or business courses" and others use the term "upper division accounting or business courses. This proposed amendment makes it clear that both are accepted as having the same meaning in the Board's rules.
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
These proposed rule amendments clarify that the use of the terms upper level accounting or upper division accounting or business courses is considered the same for the purposes of these rules.
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 August 25, 2025.
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, 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.
§511.51.
(a) The following words and terms extracted from rules promulgated by the Texas Higher Education Coordinating Board, shall have the following meanings for this chapter, unless the context clearly indicates otherwise.
(1) "Accelerated courses" means courses delivered in shortened semesters which are expected to have the same number of contact hours and the same requirement for out-of-class learning as courses taught in a normal semester.
(2) "Contact hour" means a time unit of instruction used by institutions of higher education consisting of 60 minutes, of which 50 minutes must be direct instruction.
(3) "Non-traditionally-delivered course" means a course that is offered in a non-traditional way and does not meet the definition of contact hours.
(4) "Semester" means and normally shall include 15 weeks for instruction and one week for final examination or a total of 16 weeks instruction and examination combined.
(5) "Semester credit hour" means a unit of measure of instruction consisting of 60 minutes, of which 50 minutes must be direct instruction, over a 15-week period in a semester system or a 10-week period in a quarter system.
(6) "Traditionally-delivered three semester-credit-hour course" or "traditional course" means a course containing 15 weeks of instruction (45 contact hours) plus a week for final examinations so that such a course contains 45-48 contact hours depending on whether there is a final exam.
(b) The following words and terms shall have the following meanings.
(1) "Recognized community college" means a Texas community college or campus of the community college that holds the designation 'Qualifying Educational Credit for the CPA Examination' awarded by the board.
(2) "Extension and correspondence school" means a program within an institution that offers courses that are not equivalent to courses offered in an academic department at the institution and the courses are not listed on an official transcript from the institution. (3) "Institution" or "Institution of Higher Education" means any U.S. public or private senior college or university which confers a baccalaureate or higher degree to its students completing a program of study required for the degree.
(4) "Independent study" means academic work selected or designed by the student with the pre-approval of the appropriate department or a college or university under faculty supervision. This work typically occurs outside of the regular classroom structure.
(5) "Internship" means faculty pre-approved and appropriately supervised short-term work experience, usually related to a student's major field of study, for which the student earns academic credit.
(6) "Proprietary organization" means a CPA review course provider.
(7) "Quarter credit hour" is the unit of measurement based upon an institution of higher education system that divides the academic year into three equal sessions of 10 to 11 weeks. A quarter credit hour represents proportionately less work than a semester hour because of the shorter session and is counted as 2/3 of a semester credit hour for each hour of credit.
(8) "Reporting institution" means the institution of higher education in the state that serves as the clearinghouse for educational institutions of higher education in Texas. Currently, the University of Texas-Austin is the reporting institution for the state of Texas.
(9) "SACS" means the Southern Association of Colleges and Schools-Commission on Colleges.
(10) "THECB" means the Texas Higher Education Coordinating Board.
(11) "Transcript," "Official Transcript" or "Official Educational Document" means a document prepared by an institution that contains a record of the academic coursework offered by an academic department that a student has taken, grades and credits earned, and degrees awarded. The document is printed on paper bearing a watermark specific to the institution and is embossed with the institution's seal, date and the signature of the Registrar who is responsible for certifying coursework and degrees. The document may be provided electronically from the institution or its authorized agent.
(12) "UCPAE" means the Uniform Certified Public Accountant Examination prepared and graded by the American Institute of Certified Public Accountants.
(13) "Upper Division Accounting Course" or "Upper Level Accounting Course" means at a minimum junior and senior year course work that requires the successful completion of introductory or basic course work before it can be taken.
(14) "Upper Division Business Course" or "Upper Level Business Course" means at a minimum junior and senior year course work that requires the successful completion of introductory or basic course work before it can be taken.
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 July 14, 2025.
TRD-202502473
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 24, 2025
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §511.52 concerning Recognized Institutions of Higher Education.
Background, Justification and Summary
The proposed amendment is a grammatical change.
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
This proposed rule amendment grammatically reads better by referring to "The" Higher Learning Commission.
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 August 25, 2025.
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, 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.
§511.52.
(a) The board recognizes institutions of higher education that offer a baccalaureate or higher degree, that either:
(1) are accredited by one of the following organizations:
(A) Middle States Commission on Higher Education (MSCHE);
(B) Northwest Commission on Colleges and Universities (NWCCU);
(C) The Higher Learning Commission (HLC);
(D) New England Commission of Higher Education (NECHE);
(E) Southern Association of Colleges and Schools, Commission on Colleges (SACS); and
(F) WASC Senior College and University Commission; or
(2) provide evidence of meeting equivalent accreditation requirements of SACS.
(b) The board is the final authority regarding the evaluation of an applicant's education and has received assistance from the reporting institution in the State of Texas, the University of Texas at Austin, in evaluating:
(1) an institution of higher education;
(2) organizations that award credits for coursework taken outside of a traditional academic environment and shown on a transcript from an institution of higher education;
(3) assessment methods such as credit by examination, challenge exams, and portfolio assessment; and
(4) non-college education and training.
(c) The following organizations and assessment methods may not be used to meet the requirements of this chapter:
(1) American Council on Education (ACE);
(2) Prior Learning Assessment (PLA);
(3) Defense Activity for Non-Traditional Education Support (DANTES);
(4) Defense Subject Standardized Test (DSST); and
(5) StraighterLine.
(d) The board may accept courses completed through an extension school, a correspondence school or continuing education program provided that the courses are offered and accepted by the board approved educational institution for a business baccalaureate or higher degree conferred by that educational institution.
(e) Except as provided in subsection (d) of this section, extension and correspondence schools or programs and continuing education courses do not meet the criteria for recognized institutions of higher education.
(f) The requirements related to recognized community colleges are provided in §511.54 of this chapter (relating to Recognized Texas Community Colleges).
(g) The board may recognize a community college that offers a baccalaureate degree in accounting or business, provided that the applicant is admitted to a graduate program in accounting or business offered at a recognized institution of higher education that offers a graduate or higher degree.
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 July 14, 2025.
TRD-202502474
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 24, 2025
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §511.53 concerning Evaluation of International Education Documents.
Background, Justification and Summary
The amendment proposes to relocate Board Rule §511.59 to Rule §511.56 for a better fit, eliminates Board Rule §511.60 which is outdated and no longer effective, and revises Board Rule §511.59 to provide for the 120-semester credit hour pathway to certification.
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 proposed amendment reduces the costs and time for a candidate to become certified and provides the public with the benefit of needed accounting services.
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 August 25, 2025.
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, 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.
§511.53.
(a) It is the responsibility of the board to confirm that education obtained at colleges and universities outside of the United States (international education) is equivalent to education earned at board-recognized institutions of higher education in the U.S.
(b) The board shall use, at the expense of the applicant, the services of the University of Texas at Austin, Graduate and International Admissions Center, to validate, review, and evaluate international education documents submitted by an applicant to determine if the courses taken and degrees earned are substantially equivalent to those offered by the board-recognized institutions of higher education located in the U.S. The evaluation shall provide the following information to the board:
(1) Degrees earned by the applicant that are substantially equivalent to those conferred by a board-recognized institution of higher education in the U.S. that meets §511.52 of this chapter (relating to Recognized Institutions of Higher Education);
(2) The total number of semester hours or quarter hour equivalents earned that are substantially equivalent to those earned at U.S. institutions of higher education [and that meet §511.59 of this chapter (relating to Definition of 120 Semester Hours to take the UCPAE)];
(3) The total number of semester hours or quarter hour equivalents earned in accounting coursework that meets §511.57 of this chapter (relating to Courses in an Accounting Concentration to take the UCPAE [Qualified Accounting Courses to take the UCPAE) or §511.60 of this chapter (relating to Qualified Accounting Courses Prior to January 1, 2024 to take the UCPAE)];
(4) An analysis of the title and content of courses taken that are substantially equivalent to courses listed in §511.57 [or §511.60] of this chapter; and
(5) The total number of semester hours or quarter hour equivalents earned in business coursework that meets §511.58 of this chapter (relating to [Definitions of] Related Business Subjects to take the UCPAE).
(c) The University of Texas at Austin, Graduate and International Admissions Center, may use the American Association of Collegiate Registrars and Admissions Officers (AACRAO) material, including the Electronic Database for Global Education (EDGE), in evaluating international education documents.
(d) Other evaluation or credentialing services of international education are not accepted by the board.
(e) Credits awarded for coursework taken through the following organizations and shown on a transcript from an institution of higher education may not be used to meet the requirements of this chapter:
(1) American College Education (ACE);
(2) Prior Learning Assessment (PLA);
(3) Defense Activity for Non-Traditional Education Support (DANTES);
(4) Defense Subject Standardized Test (DSST); and
(5) StraighterLine.
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 July 14, 2025.
TRD-202502475
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 24, 2025
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §511.54 concerning Recognized Texas Community Colleges.
Background, Justification and Summary
The amendment proposes to eliminate the no longer effective Board Rule §511.60, incorporates the statutory language "Courses in an Accounting Concentration to take the UCPAE" for certification, and to incorporate the three semester hour ethics course offered at community colleges for individuals studying to become certified through the 120-hour pathway.
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
These proposed rule amendments recognize the three semester hour ethics course offered by community colleges for the purpose of certification by applicants through the 120-hour pathway or the 150-hour pathway to certification.
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 August 25, 2025.
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, 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.
§511.54.
(a) An applicant who has completed a baccalaureate or higher degree from a board recognized institution of higher education based on the requirements of §511.52 of this chapter (relating to Recognized Institutions of Higher Education), may enter into a course of study at a board recognized Texas community college to complete the educational requirements of §§511.57 and [, ] 511.58[, and 511.60] of this chapter (relating to Courses in an Accounting Concentration to take the UCPAE [ Qualified Accounting Courses to take the UCPAE], and [ Definitions of] Related Business Subjects to take the UCPAE[, and Qualified Accounting Courses Prior to January 1, 2024 to take the UCPAE]).
(b) The board recognizes and accepts Texas community colleges that meet board standards for a comprehensive academic program based on the educational requirements of §§511.57 and [ ,] 511.58[, and 511.60] of this chapter.
(c) Effective August 1, 2015, the standards include at a minimum all, but are not limited to, the following:
(1) The Texas community college must be accredited by SACS.
(2) Academic accounting and business courses recognized as meeting §§511.57 and [,] 511.58[, and 511.60] of this chapter are deemed by the board as equivalent to upper level coursework at an institution of higher education and must contain a rigorous curriculum that is similar to courses offered in a baccalaureate degree program at a university. Accounting, business, and ethics courses must be developed by a group of full time accounting faculty members and approved by the board prior to offering to students. Modifications to an approved course must be reconsidered by the board prior to offering to students.
(3) Academic courses meeting §§511.57 and [ ,] 511.58[, and 511.60] of this chapter must be taken after completing a baccalaureate degree.
(4) The Texas community college must offer no fewer than:
(A) 30 [27] semester hours of academic accounting courses meeting §511.57 [or §511.60] of this chapter;
(B) 21 [24] semester hours of academic business courses meeting §511.58 of this chapter; and
(C) a board-approved three semester hour ethics course meeting §511.59 of this chapter (relating to Qualifications for Issuance of a Certificate with not Fewer than 120 Semester Hours) or §511.164 of this chapter (relating to Qualifications for Issuance of a Certificate with not Fewer than 150 Semester Hours [ Definition of 150 Semester Hours to Qualify for Issuance of a Certificate ]).
(5) The Texas community college designates an accounting faculty member(s) who is responsible for:
(A) managing the comprehensive academic program at all campuses;
(B) selecting and training qualified faculty members to teach the program courses and regularly evaluating their effectiveness in the classroom;
(C) establishing and maintaining a rigorous program curriculum;
(D) establishing and maintaining a process for advising and guiding students through the program; and
(E) providing annual updates to the board on the status of the academic program.
(6) Faculty members at a community college recognized and accepted by the board must have the following credentials to teach academic courses meeting §§511.57 and [,] 511.58[, and 511.60] of this chapter:
(A) Doctorate or master's degree in the teaching discipline; or
(B) Master's degree with a concentration in the teaching discipline (a minimum of 18 graduate semester hours in the teaching discipline).
(7) At least three-fourths of the faculty members who are responsible to teach academic courses meeting §511.57 [or §511.60 ] of this chapter must hold a current CPA license.
(8) Faculty members will comply with the established educational definitions in §511.51 of this chapter (relating to Educational Definitions).
(9) The Texas community college will provide ongoing professional development for its faculty as teachers, scholars, and CPA practitioners.
(10) The Texas community college will make available to students a resource library containing current online authoritative literature to support the academic courses meeting §§511.57 and [,] 511.58[, and 511.60] of this chapter, and will incorporate the online authoritative literature in accounting courses.
(d) A community college recognized and accepted by the board under this provision must be reconsidered by the board on the fifth-year anniversary of the approval. Information brought to the attention of the board by a student or faculty member of the Texas community college that indicates non-compliance with the standards may cause the board to accelerate reconsideration.
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 July 14, 2025.
TRD-202502476
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 24, 2025
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §511.56 concerning Educational Qualifications under the Act to take the UCPAE.
Background, Justification and Summary
The amendment proposes to publish the criteria for certification through July 31, 2026 and the criteria for the additional pathway created in the Public Accountancy Act effective August 1, 2026.
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 proposed amendment clarifies to the public when applicants wishing to obtain certification through the new pathway with 120 semester credit hours takes effect.
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 August 25, 2025.
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, 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.
§511.56.
(a) An applicant for the UCPAE under the current Act shall meet the following educational requirements [at the time of filing the initial application to take the examination and] in order to qualify to take the examination:
(1) hold a baccalaureate or graduate degree conferred by an institution of higher education as defined by §511.52 of this chapter (relating to Recognized Institutions of Higher Education) recognized by the board; and
(2) complete no fewer than 120 semester hours or quarter-hour equivalents of courses[, as defined by §511.59 of this chapter (relating to Definition of 120 Semester Hours to take the UCPAE) and] consisting of:
(A) effective through July 31, 2026, no fewer than 21 semester hours or quarter-hour equivalents of upper level accounting courses as defined by §511.57 of this chapter (relating to Courses in an Accounting Concentration to take the UCPAE); [Qualified Accounting Courses to take the UCPAE) or §511.60 of this chapter (relating to Qualified Accounting Courses Prior to January 1, 2024 to take the UCPAE); and]
(B) effective August 1, 2026, no fewer than 24 semester hours or quarter-hour equivalents of upper level accounting courses as defined by §511.57 of this chapter; and
(C) [(B)] no fewer than 21 [ 24] semester hours or quarter-hour equivalents of upper level related business courses, as defined by §511.58 of this chapter (relating to [Definitions of] Related Business Subjects to take the UCPAE).
(b) An individual holding a baccalaureate degree conferred by a board-recognized institution of higher education, as defined by §511.52 of this chapter, and who has not completed the requirements of this section shall meet the requirements by taking coursework in one of the following ways:
(1) complete upper level or graduate courses at a board-recognized institution of higher education as defined in §511.52 of this chapter that meets the requirements of subsections (a)(2)(A) and (a)(2)(B) of this section; or
(2) enroll in a board-recognized community college as defined in §511.54 of this chapter (relating to Recognized Texas Community Colleges) and complete board approved accounting or business courses that meet the requirements of subsections (a)(2)(A) and (a)(2)(B) of this section. Only specified accounting and business courses that are approved by the board will be accepted as not all courses offered at a community college are accepted.
(c) The following courses, courses of study, certificates, and programs may not be used to meet the 120-semester hour requirement:
(1) remedial or developmental courses offered at an institution of higher education; and
(2) credits awarded for coursework taken through the following organizations and shown on a transcript from an institution of higher education may not be used to meet the requirements of this chapter:
(A) American College Education (ACE);
(B) Prior Learning Assessment (PLA);
(C) Defense Activity for Non-Traditional Education Support (DANTES);
(D) Defense Subject Standardized Test (DSST); and
(E) StraighterLine.
(d) The hours from a course that has been repeated will be counted only once toward the requirements of subsection (a)(2) of this section.
(e) [(b)] An applicant for the UCPAE who met the educational requirements of the Act that were in effect at the time of taking the initial examination shall continue to be examined under those requirements unless the applicant chooses to meet the current education requirements of the Act.
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 July 14, 2025.
TRD-202502477
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 24, 2025
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §511.57 concerning Qualified Accounting Courses to take the UCPAE.
Background, Justification and Summary
The amendment proposes to eliminate the no longer effective Board Rule §511.60 and incorporates the dates for existing criteria for certification and the added criteria for the new pathway toward certification.
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 proposed amendment helps the public understand the criteria for certification prior to August 1, 2026 and the effective date of the additional criteria beginning on August 1, 2026.
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 August 25, 2025.
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, 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.
§511.57.Qualified Accounting Courses to take the UCPAE].
(a) Effective through July 31, 2026, an [An ] applicant shall meet the board's accounting course requirements in one of the following ways:
(1) Hold a baccalaureate or higher degree from a board-recognized institution of higher education as defined by §511.52 of this chapter (relating to Recognized Institutions of Higher Education) and present official transcript(s) from board-recognized institution(s) that show degree credit for no fewer than 21 semester credit hours of upper division accounting courses as defined in subsections (d) and (e)[, (f) and (g)] of this section; or
(2) Hold a baccalaureate or higher degree from a board-recognized institution of higher education as defined by §511.52 of this chapter, and after obtaining the degree, complete the requisite 21 semester credit hours of upper division accounting courses, as defined in subsections (d) and (e)[, (f) and (g)] of this section, from four-year degree granting institutions, or accredited community colleges, provided that all such institutions are recognized by the board as defined by §511.52 or §511.54 of this chapter (relating to Recognized Texas Community Colleges).
(b) Credit for hours taken at board-recognized institutions of higher education using the quarter system shall be counted as 2/3 of a semester credit hour for each hour of credit received under the quarter system.
(c) The board will accept no fewer than 21 semester credit hours of accounting courses from the courses listed in subsections (d) and (e)[, (f) and (g)] of this section. The hours from a course that has been repeated will be counted only once toward the required 21 semester hours. The courses must meet the board's standards by containing sufficient accounting knowledge and application to be useful to candidates taking the UCPAE. A board-recognized institution of higher education must have accepted the courses for purposes of obtaining a baccalaureate or higher degree or its equivalent, and they must be shown on an official transcript.
[(d) Upper level accounting coursework recognized by the board and in effect prior to January 1, 2024, may be found in §511.60 of this chapter (relating to Qualified Accounting Courses Prior to January 1, 2024 to take the UCPAE).]
(d) The [(e) Effective January 1, 2024, the] subject-matter content should be derived from the UCPAE Blueprint. A minimum of 12 semester hours with at least three semester hours in each of the following accounting course content areas is required:
(1) financial accounting and reporting for business organizations or intermediate accounting;
(2) financial statement auditing;
(3) taxation; and
(4) accounting information systems or accounting data analytics.
(e) A [(f) Effective January 1, 2024, a] minimum of 9 hours in any of the following accounting course content areas is required:
(1) up to 6 semester credit hours of additional financial accounting and reporting for business organizations or intermediate accounting;
(2) advanced accounting;
(3) accounting theory;
(4) managerial or cost accounting (excluding introductory level courses);
(5) auditing and attestation services;
(6) internal accounting control and risk assessment;
(7) financial statement analysis;
(8) accounting research and analysis;
(9) up to 9 semester credit hours of taxation (including tax research and analysis);
(10) financial accounting and reporting for governmental and/or other nonprofit entities;
(11) up to 9 semester credit hours of accounting information systems, including management information systems ("MIS"), provided the MIS courses are listed or cross-listed as accounting courses, and the institution of higher education accepts these courses as satisfying the accounting course requirements for graduation with a degree in accounting;
(12) up to 9 semester credit hours of accounting data analytics, provided the institution of higher education accepts these courses as satisfying the accounting course requirements for graduation with a degree in accounting; business data analytics may be considered provided the courses are listed or cross-listed as accounting courses, and the institution of higher education accepts these courses as satisfying the accounting course requirements for graduation with a degree in accounting; (while data analytics tools may be taught in the courses, application of the tools should be the primary objective of the courses);
(13) fraud examination;
(14) international accounting and financial reporting;
(15) mergers and acquisitions;
(16) financial planning;
(17) at its discretion, the board may accept up to three semester hours of credit of accounting course work with substantial merit in the context of a career in public accounting, provided the course work is predominantly accounting or auditing in nature but not included in paragraphs (1) - (16) of this subsection. For any course submitted under this provision, the Accounting Faculty Head or Chair must affirm to the board in writing the course's merit and content; and
(18) at its discretion, the board may accept up to three semester credit hours of independent study in accounting selected or designed by the student under faculty supervision. The curriculum for the course shall not repeat the curriculum of another accounting course that the student has completed.
(f) [(g)] The following types of introductory courses do not meet the accounting course definition in subsections (d) and (e) [and (f)] of this section:
(1) elementary accounting;
(2) principles of accounting;
(3) financial and managerial accounting;
(4) introductory accounting courses; and
(5) accounting software courses.
(g) [(h)] Any CPA review course offered by an institution of higher education or a proprietary organization shall not be used to meet the accounting course definition.
(h) [(i)] CPE courses shall not be used to meet the accounting course definition.
(i) [(j)] An ethics course required in §511.164 of this chapter (relating to Qualifications for Issuance of a Certificate with not Fewer than 150 Semester Hours) [ §511.58(d) of this chapter (relating to Definitions of Related Business Subjects to take the UCPAE) shall not be used to meet the accounting course definition in subsections (e) and (f) of this section].
(j) [(k)] Accounting courses completed through an extension school of a board recognized educational institution may be accepted by the board provided that the courses are accepted for a business baccalaureate or higher degree conferred by that educational institution.
(k) [(l)] The board may review the content of accounting courses and determine if they meet the requirements of this section.
(l) [(m)] Credits awarded for coursework taken through the following organizations and shown on a transcript from an institution of higher education may not be used to meet the requirements of this chapter:
(1) American College Education (ACE);
(2) Prior Learning Assessment (PLA);
(3) Defense Activity for Non-Traditional Education Support (DANTES);
(4) Defense Subject Standardized Test (DSST); and
(5) Straighterline.
(m) Effective August 1, 2026, to take the UCPAE, a minimum of 12 semester hours of upper level accounting courses, with at least three semester hours from each of subparagraphs (1) through (4) of this subsection, must be completed at a board-recognized institution of higher education and shown on an official transcript from the institution:
(1) financial accounting and reporting for business organizations or intermediate accounting;
(2) financial statement auditing;
(3) taxation; and
(4) accounting information systems or accounting data analytics.
(n) In addition to subsection (m) of this section, a minimum of 12 hours in any of the following upper level accounting course content areas must be completed at a board-recognized institution of higher education and shown on an official transcript from the institution, provided the course was not used to meet subsection (a) of this section:
(1) financial accounting and reporting for business organizations or intermediate accounting;
(2) advanced accounting;
(3) accounting theory;
(4) managerial or cost accounting (excluding introductory level courses);
(5) auditing and attestation services;
(6) internal accounting control and risk assessment;
(7) financial statement analysis;
(8) accounting research and analysis;
(9) taxation (including tax research and analysis);
(10) financial accounting and reporting for governmental and/or other nonprofit entities;
(11) accounting information systems, including management information systems ("MIS"), provided the MIS courses are listed or cross-listed as accounting courses, and the institution of higher education accepts these courses as satisfying the accounting course requirements for graduation with a degree in accounting;
(12) accounting data analytics;
(13) fraud examination;
(14) international accounting and financial reporting;
(15) mergers and acquisitions;
(16) financial planning; and
(17) up to three semester credit hours of independent study in accounting selected or designed by the student under faculty supervision. The curriculum for the course shall not repeat the curriculum of another accounting course that the student has completed.
(o) The board may review the content of accounting courses to determine if they meet the requirements of subsections (m) and (n) of this section, and to determine if courses contain sufficient accounting knowledge and application to be useful to candidates taking the UCPAE.
(p) A course that was repeated will be counted only once to meet the requirements of subsections (m) and (n) of this section.
(q) Credit for hours taken at board-recognized institutions of higher education using the quarter system shall be counted as 2/3 of a semester credit hour for each hour of credit received under the quarter system.
(r) The board may accept up to three semester hours of credit of accounting course if:
(1) the course work has substantial merit in the context of a career in public accounting;
(2) the course work is predominantly accounting or auditing in nature but not included in subsections (m) and (n) of this section; and
(3) the merit and content of the course submitted under this subsection is affirmed by the Accounting Faculty Head or Chair at the educational institution where the course was completed.
(s) The following types of courses do not meet the accounting course definition in subsections (m), (n) and (r) of this section:
(1) elementary accounting;
(2) principles of accounting;
(3) financial and managerial accounting;
(4) introductory accounting courses;
(5) accounting software courses;
(6) any CPA review course offered by an institution of higher education or a proprietary organization;
(7) CPE courses; and
(8) an ethics course required in §511.59 of this chapter (relating to Qualifications for Issuance of a Certificate with not Fewer than 120 Semester Hours) or §511.164 of this chapter (relating to Qualifications for Issuance of a Certificate with not Fewer than 150 Semester Hours).
(t) Accounting courses completed through an extension school of a board-recognized educational institution may be accepted by the board provided that the courses are accepted for a business baccalaureate or higher degree conferred by that educational institution.
(u) Credits awarded for coursework taken through the following organizations and shown on a transcript from an institution of higher education may not be used to meet the requirements of this chapter:
(1) American College Education (ACE);
(2) Prior Learning Assessment (PLA);
(3) Defense Activity for Non-Traditional Education Support (DANTES);
(4) Defense Subject Standardized Test (DSST); and
(5) Straighterline.
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 July 14, 2025.
TRD-202502478
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 24, 2025
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §511.58 concerning Definitions of Related Business Subjects to take the UCPAE.
Background, Justification and Summary
The amendment proposes to require at least 21 hours of upper level courses to sit for the UCPAE with no more than six credit hours in any of the listed subjects and a course that is repeated may only be counted as once toward the 21-hour requirement.
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
These proposed rule amendments notifies the public of the criteria for certification regarding the 21 hours of upper level courses required to sit for the UCPAE.
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 August 25, 2025.
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, 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.
§511.58.Definitions of] Related Business Subjects to take the UCPAE.
(a) Related business courses are those business courses that a board recognized institution of higher education accepts for a business baccalaureate or higher degree by that educational institution.
(b) The board will accept no fewer than 21 credit hours of upper level courses (for the purposes of this subsection, economics and statistics at any college level will count as upper level courses) as related business subjects, taken at a recognized educational institution shown on official transcripts or accepted by a recognized educational institution for purposes of obtaining a baccalaureate degree or its equivalent, in the following areas. No more than 6 credit semester hours taken in any of the following subject areas may be used to meet the minimum hour requirement:
(1) business law, including study of the Uniform Commercial Code;
(2) economics;
(3) management;
(4) marketing;
(5) business communications;
(6) statistics and quantitative methods;
(7) information systems or technology;
(8) finance and financial planning;
(9) data analytics, data interrogation techniques, cyber security and/or digital acumen in the accounting context;
(10) upper level business or accounting internship; and
(11) other areas related to accounting.
[(b) An individual who holds a baccalaureate or higher degree from a recognized educational institution as defined by §511.52 of this chapter (relating to Recognized Institutions of Higher Education) may take related business courses from four-year degree granting institutions, or recognized community colleges, provided that all such institutions are recognized by the board as defined by §511.52 or §511.54 of this chapter (relating to Recognized Texas Community Colleges). Related business courses taken at a recognized community college are only the courses that the board has reviewed and approved to meet this section.]
(c) The board may review the content of business courses and determine if they meet the requirements of this section.
[(c) The board will accept no fewer than 24 semester credit hours of upper level courses (for the purposes of this subsection, economics and statistics at any college level will count as upper division courses) as related business subjects (without repeat), taken at a recognized educational institution shown on official transcripts or accepted by a recognized educational institution for purposes of obtaining a baccalaureate degree or its equivalent, in the following areas.]
[(1) No more than 6 credit semester hours taken in any of the following subject areas may be used to meet the minimum hour requirement:]
[(A) business law, including study of the Uniform Commercial Code;]
[(B) economics;]
[(C) management;]
[(D) marketing;]
[(E) business communications;]
[(F) statistics and quantitative methods;]
[(G) information systems or technology; and]
[(H) other areas related to accounting.]
[(2) No more than 9 credit semester hours taken in any of the following subject areas may be used to meet the minimum hour requirement:]
[(A) finance and financial planning; and]
[(B) data analytics, data interrogation techniques, cyber security and/or digital acumen in the accounting context, whether taken in the business school or in another college or university program, such as the engineering, computer science, information systems, or math programs (while data analytic tools may be used in the course, application of the tools should be the primary objective of the course).]
[(d) The board requires that a minimum of 2 upper level semester credit hours in accounting communications or business communications with an intensive writing curriculum be completed. The semester hours may be obtained through a standalone course or offered through an integrated approach. If the course content is offered through integration, the university must advise the board of the course(s) that contain the accounting communications or business communications content. The course may be used toward the 24 semester credit hours of upper level business courses listed in subsection (c)(1) of this section.]
(d) [(e)] Credit for hours taken at recognized institutions of higher education using the quarter system shall be counted as 2/3 of a semester hour for each hour of credit received under the quarter system.
(e) A course that was repeated will be counted only once to meet the requirements of this section.
(f) Related business courses completed through and offered by an extension school, correspondence school, or continuing education program of a board recognized educational institution may be accepted by the board, provided that the courses are accepted for a business baccalaureate or higher degree conferred by that educational institution.
[(g) The board may review the content of business courses and determine if they meet the requirements of this section.]
(g) [(h)] Credits awarded for coursework taken through the following organizations and shown on a transcript from an institution of higher education may not be used to meet the requirements of this chapter:
(1) American College Education (ACE);
(2) Prior Learning Assessment (PLA);
(3) Defense Activity for Non-Traditional Education Support (DANTES);
(4) Defense Subject Standardized Test (DSST); and
(5) StraighterLine.
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 July 14, 2025.
TRD-202502479
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 24, 2025
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §511.59 concerning Definitions of 120 Semester Hours to take the UCPAE.
Background, Justification and Summary
The amendment proposes to establish the criteria for certification with the 120-hour pathway effective August 1, 2026. It requires 27 upper level hours of accounting courses and a three-semester hour board-approved standalone course in accounting or business ethics taken at a board-recognized educational institution.
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
These proposed rule amendments assist the public in understanding the minimum requirements for certification under the 120-hour pathway to certification.
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 August 25, 2025.
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, 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.
§511.59.Definitions of 120 Semester Hours to take the UCPAE].
(a) Effective August 1, 2026, an initial applicant who meets the education requirements of §§511.56, 511.57 and 511.58 of this chapter (relating to Educational Qualifications under the Act to take the UCPAE, Courses in an Accounting Concentration to take the UCPAE, and Related Business Subjects to take the UCPAE), and elects to take the UCPAE may qualify for CPA certification by completing the requirements in subsections (b) and (c) of this section.
(b) An applicant for CPA certification under this section shall complete the following additional education requirements:
(1) additional upper level accounting courses as defined by §511.57 of this chapter equals or exceeds 27 semester hours or quarter-hour equivalents of upper level accounting courses; and
(2) a three-semester hour board-approved standalone course in accounting or business ethics. The course must be taken at a board-recognized educational institution and should provide students with a framework of ethical reasoning, professional values, and attitudes for exercising professional skepticism, and other behavior in the best interest of the public and profession. The ethics course shall:
(A) include the ethics rules of the AICPA, the SEC, and the board;
(B) provide a foundation for ethical reasoning, including the core values of integrity, objectivity, and independence; and
(C) be taught by an instructor who has not been disciplined by the board for a violation of the board's rules of professional conduct, unless that violation has been waived by the board.
(c) The work experience shall be not fewer than two years of full time, non-routine accounting experience as defined by §§511.122 and 511.123 of this chapter (relating to Acceptable Work Experience and Reporting Work Experience) and supervised by a CPA as defined by §511.124 of this chapter (relating to Acceptable Supervision).
[(a) To be eligible to take the UCPAE, an applicant must hold at a minimum a baccalaureate degree, conferred by a board-recognized institution of higher education as defined by §511.52 of this chapter (relating to Recognized Institutions of Higher Education), and have completed the board-recognized coursework identified in this section:]
[(1) no fewer than 21 semester hours or quarter-hour equivalents of upper level accounting courses as defined by §511.57 of this chapter (relating to Qualified Accounting Courses) or §511.60 of this chapter (relating to Qualified Accounting Courses Prior to January 1, 2024 to take the UCPAE);]
[(2) no fewer than 24 semester hours or quarter-hour equivalents of upper level related business courses, as defined by §511.58 of this chapter (relating to Definitions of Related Business Subjects to take the UCPAE); and]
[(3) academic coursework at an institution of higher education as defined by §511.52 of this chapter, when combined with paragraphs (1) and (2) of this subsection meets or exceeds 120 semester hours.]
[(b) An individual holding a baccalaureate degree conferred by a board-recognized institution of higher education, as defined by §511.52 of this chapter, and who has not completed the requirements of this section shall meet the requirements by taking coursework in one of the following ways:]
[(1) complete upper level or graduate courses at a board recognized institution of higher education as defined in §511.52 of this chapter that meets the requirements of subsection (a)(1) and (2) of this section; or]
[(2) enroll in a board recognized community college as defined in §511.54 of this chapter (relating to Recognized Texas Community Colleges) and complete board approved accounting or business courses that meet the requirements of subsection (a)(1) and (2) of this section. Only specified accounting and business courses that are approved by the board will be accepted as not all courses offered at a community college are accepted.]
[(c) The following courses, courses of study, certificates, and programs may not be used to meet the 120-semester hour requirement:]
[(1) any CPA review course offered by an institution of higher education or a proprietary organization;]
[(2) remedial or developmental courses offered at an educational institution; and]
[(3) credits awarded for coursework taken through the following organizations and shown on a transcript from an institution of higher education may not be used to meet the requirements of this chapter:]
[(A) American College Education (ACE);]
[(B) Prior Learning Assessment (PLA);]
[(C) Defense Activity for Non-Traditional Education Support (DANTES);]
[(D) Defense Subject Standardized Test (DSST); and]
[(E) StraighterLine.]
[(d) The hours from a course that has been repeated will be counted only once toward the required 120 semester hours.]
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 July 14, 2025.
TRD-202502480
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 24, 2025
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes the repeal of §511.60 concerning Qualified Accounting Courses Prior to January 1, 2024 to take the UCPAE.
Background, Justification and Summary
The repeal deletes Board Rule §511.60 which automatically expired by board rule on January 1, 2024.
Fiscal Note
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed repeal 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 repeal.
Public Benefit
The proposed repeal makes it clear to the public that the rule is no longer applicable to certification.
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 repeal and a Local Employment Impact Statement is not required because the proposed repeal will not affect a local economy.
Small Business, Rural Community and Micro-Business Impact Analysis
William Treacy, Executive Director, has determined that the proposed repeal will not have an adverse economic effect on small businesses, rural communities or micro-businesses because the repeal 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 repeal is in effect, the proposed repeal: 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 repeal.
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 August 25, 2025.
The Board specifically invites comments from the public on the issues of whether or not the proposed repeal will have an adverse economic effect on small businesses. If the proposed repeal is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the repeal, describe and estimate the economic impact of the repeal on small businesses, offer alternative methods of achieving the purpose of the repeal; 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 repeal 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 repeal is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code §901.151, 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 repeal.
§511.60.
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 July 14, 2025.
TRD-202502481
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 24, 2025
For further information, please call: (512) 305-7842
SUBCHAPTER H.
The Texas State Board of Public Accountancy (Board) proposes an amendment to §511.164 concerning Definition of 150 Semester Hours to Qualify for Issuance of a Certificate.
Background, Justification and Summary
These revisions propose to clarify the criteria for certification with 150 approved semester hours and the criteria effective beginning August 1, 2026.
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. It also describes acceptable work experience.
Public Benefit
The public will have better clarity as what criteria is acceptable for certification prior to August 1, 2026 and what is acceptable following August 1, 2026.
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 August 25, 2025.
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, 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.
§511.164.Definition of 150 Semester Hours to Qualify for Issuance of a Certificate].
(a) To qualify for the issuance of a CPA certificate, an applicant must hold at a minimum a baccalaureate degree, conferred by a board-recognized institution of higher education as defined by §511.52 of this chapter (relating to Recognized Institutions of Higher Education), and have completed the board-recognized coursework identified in paragraphs (1), or (2), and (3)- (6) of this section:
(1) effective through July 31, 2026, no fewer than 27 semester hours or quarter-hour equivalents of upper level accounting courses as defined by §511.57 of this chapter (relating to Courses in an Accounting Concentration to take the UCPAE) to include a minimum of two semester credit hours in research and analysis; [Qualified Accounting Courses to take the UCPAE) or §511.60 of this chapter (relating to Qualified Accounting Courses Prior to January 1, 2024 to take the UCPAE) to include a minimum of two semester credit hours in research and analysis;]
(2) Effective August 1, 2026, no fewer than 30 semester hours or quarter-hour equivalents of upper level accounting courses as defined by §511.57 of this chapter;
(3) [(2)] no fewer than 21 [ 24] semester hours or quarter-hour equivalents of upper level related business courses, as defined by §511.58 of this chapter (relating to [Definitions of] Related Business Subjects to take the UCPAE);
(4) [(3)] a three semester hour board-approved standalone course in accounting or business ethics. The course must be taken at a board-recognized educational institution and should provide students with a framework of ethical reasoning, professional values, and attitudes for exercising professional skepticism and other behavior in the best interest of the public and profession. The ethics course shall:
(A) include the ethics rules of the AICPA, the SEC, and the board;
(B) provide a foundation for ethical reasoning, including the core values of integrity, objectivity, and independence; and
(C) be taught by an instructor who has not been disciplined by the board for a violation of the board's rules of professional conduct, unless that violation has been waived by the board; [and]
(5) although not required to meet subsection (a)(6) of this section, the board may accept not more than six hours or quarter hour equivalents of upper level CPA review coursework completed at an institution of higher education; and
(6) [(4)] academic coursework at an institution of higher education as defined by §511.52 of this chapter, when combined with paragraphs (1) - (5) [(3) ] of this subsection meets or exceeds 150 semester hours[, of which 120 semester hours meets the education requirements defined by §511.59 of this chapter (relating to Definition of 120 Semester Hours to take the UCPAE)]. An applicant who has met paragraphs (1) - (4) [(3)] of this subsection may use a maximum of 9 total semester credit hours of undergraduate or graduate independent study and/or internships as defined in §511.51(b)(4) or §511.51(b)(5) of this chapter (relating to Educational Definitions) to meet this paragraph. The courses shall consist of:
(A) a maximum of three semester credit hours of independent study courses; and
(B) a maximum of six semester credit hours of accounting/business course internships.
(b) The following courses, courses of study, certificates, and programs may not be used to meet the 150 semester hour requirement:
[(1) any CPA review course offered by an institution of higher education or a proprietary organization;]
(1) [(2)] remedial or developmental courses offered at an educational institution; and
(2) [(3)] credits awarded for coursework taken through the following organizations and shown on a transcript from an institution of higher education may not be used to meet the requirement of this chapter:
(A) American College Education (ACE);
(B) Prior Learning Assessment (PLA);
(C) Defense Activity for Non-Traditional Education Support (DANTES);
(D) Defense Subject Standardized Test (DSST); and
(E) StraighterLine.
(c) The hours from a course that has been repeated will be counted only once toward the required semester hours.
(d) The work experience shall be not fewer than one year of full time non-routine accounting experience as defined by §§511.122 and 511.123 of this chapter (relating to Acceptable Work Experience and Reporting Work Experience) and supervised by a CPA as defined by §511.124 of this chapter (relating to Acceptable Supervision).
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 July 14, 2025.
TRD-202502482
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 24, 2025
For further information, please call: (512) 305-7842
CHAPTER 512. CERTIFICATION BY RECIPROCITY
22 TAC §512.1The Texas State Board of Public Accountancy (Board) proposes an amendment to §512.1 concerning Certification as a Certified Public Accountant by Reciprocity.
Background, Justification and Summary
The National Qualifications Appraisal Services (NQAS) of NASBA has had the responsibility to determine if another jurisdiction has substantially equivalent licensing requirements as Texas. That responsibility has been removed from the Texas Public Accountancy Act during the recent legislative session by SB 522. The proposed revisions to §512.1 reflect that legislative revision.
In the absence of NQAS, language is provided that a candidate for reciprocity must comply with all requirements for licensing by reciprocity except the requirement of passing the CPA exam again.
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
These proposed rule revisions reflect changes to the Public Accountancy Act and will update the public on the legislative changes.
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 August 25, 2025.
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, 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.
§512.1.
(a) The certificate of a "certified public accountant" shall be granted by reciprocity to an applicant who is qualified under §901.259 of the Act (relating to Certification Based on Reciprocity) or §901.260 of the Act (relating to Certificate Based on Foreign Credentials) and lacks a history of dishonest or felonious acts and any criminal activity that might be relevant to the applicant's qualifications as provided for in §901.253 of the Act (relating to Background Investigation). The applicant must provide in the application for reciprocity the names of all the jurisdictions in which the applicant is or has been certified and/or licensed and all disciplinary actions taken or pending in those jurisdictions.
(b) Each applicant shall submit to the Department of Public Safety a complete and legible set of fingerprints from a vendor approved by the Department of Public Safety in conjunction with the application for the purpose of obtaining criminal history record information.
(c) An applicant from a domestic jurisdiction demonstrates that he meets the requirements for certification by reciprocity by:
(1) satisfying at least one of the following conditions:
[(A) the applicant holds a certificate or license to practice public accountancy from a domestic jurisdiction that has been determined by the board pursuant to §512.2 of this chapter (relating to NASBA Verified Substantially Equivalent Jurisdictions) as having substantially equivalent requirements for certification; or]
[(B) the applicant holds a certificate or license to practice public accountancy from a domestic jurisdiction that has not been determined by NASBA and the board to have substantially equivalent certification requirements but has had his education, examination and experience verified as substantially equivalent to those required by the UAA by NASBA; or]
(A) [(C)] the applicant meets all requirements for issuance of a certificate in this state other than the requirement providing the grades necessary to pass the uniform CPA examination; [set forth in the Act; or]
(B) [(D)] the applicant met the requirements in effect for issuance of a certificate in this state on the date the applicant was issued a certificate or license by another domestic jurisdiction; or
(C) [(E)] after passing the UCPAE, the applicant has completed at least four years of experience practicing public accountancy within the ten year period immediately preceding the date of application in this state; and
(2) meeting CPE requirements applicable to certificate holders contained in Chapter 523 of this title (relating to Continuing Professional Education).
(d) An applicant from a foreign jurisdiction demonstrates that he meets the requirements for certification by reciprocity by:
(1) holding a credential that has not expired or been revoked, suspended, limited or probated, and that entitles the holder to issue reports on financial statements issued by a licensing authority or professional accountancy body of another country that:
(A) regulates the practice of public accountancy and whose requirements to obtain the credential have been determined by the board to be substantially equivalent to the requirements of education, examination and experience contained in the Act; and
(B) grants credentials by reciprocity to applicants certified to practice public accountancy by this state;
(2) receiving that credential based on education and examination requirements that were comparable to or exceeded those required by the Act at the time the credential was granted;
(3) completing an experience requirement in the foreign jurisdiction that issued the credential that is comparable to or exceeds the experience requirement of the Act or has at least four years of professional accounting experience in this state;
(4) passing an international qualifying examination (IQEX) covering national standards that has been approved by the board; and
(5) passing an examination that has been approved by the board covering the rules of professional conduct in effect in this state.
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 July 14, 2025.
TRD-202502483
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 24, 2025
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes the repeal of §512.2 concerning NASBA Verified Substantially Equivalent Jurisdictions.
Background, Justification and Summary
The Board is proposing the language in §512.2 that addresses the role of the National Qualifications Appraisal Services to be repealed since that responsibility has been removed by the Texas Legislature.
Fiscal Note
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed repeal 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 repeal.
Public Benefit
The adoption of the proposed repeal will make it clear to the public that a non-CPA owner must be a Texas resident in order to have an ownership in a CPA firm.
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 repeal and a Local Employment Impact Statement is not required because the proposed repeal will not affect a local economy.
Small Business, Rural Community and Micro-Business Impact Analysis
William Treacy, Executive Director, has determined that the proposed repeal will not have an adverse economic effect on small businesses, rural communities or micro-businesses because the repeal 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 repeal is in effect, the proposed repeal: 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 repeal.
The requirement related to a rule increasing costs to regulated persons does not apply to the Texas State Board of Public Accountancy because the repeal 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 August 25, 2025.
The Board specifically invites comments from the public on the issues of whether or not the proposed repeal will have an adverse economic effect on small businesses. If the proposed repeal is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the repeal, describe and estimate the economic impact of the repeal on small businesses, offer alternative methods of achieving the purpose of the repeal; 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 repeal 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 repeal is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code §901.151, 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 repeal.
§512.2.
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 July 14, 2025.
TRD-202502484
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 24, 2025
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §512.4 concerning Application for Certification by Reciprocity.
Background, Justification and Summary
With the removal of the responsibility of determining the substantial equivalency of out of state regulatory programs from the National Qualifications Appraisal Services, language is being removed from §512.4 to reflect that legislative directive.
Language is also added to require the verification of the education, and experience of an out of state licensee as well as the status of the license from the licensee's regulatory authority. This is the result of removing NQAS responsibility.
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 rule amendment will provide the public with the news standards for licensing by reciprocity.
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 August 25, 2025.
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, 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.
§512.4.
(a) An applicant seeking certification by reciprocity must apply for certification on a form prescribed by the board. The application must be accompanied by the requisite fee and shall include written authorization from the applicant empowering the board to obtain all information concerning the applicant's qualifications and present standing.
(b) An applicant for certification by reciprocity from a domestic jurisdiction [that has not been approved as being substantially equivalent by both NASBA and the board] must submit the following along with the completed application form and requisite fee to be processed:
(1) verification of the education and experience required from the domestic jurisdiction of origin upon applicant's certification [an interstate exchange of information form documenting the credits under the domestic jurisdiction of origin];
(2) verification of license status in any domestic jurisdiction where the applicant is or has been licensed as a CPA;
(3) [(2)] an executed oath of office stating support of the Constitutions of the United States and of the State of Texas and their laws and the rules of the board;
(4) [(3)] evidence of completion of an examination on the board's Rules of Professional Conduct;
(5) [(4)] evidence of completion of 120 credits of CPE during the last three years, including a board-approved four-credit ethics course; in compliance with Chapter 523 of this title (relating to Continuing Professional Education);
(6) [(5)] evidence of completion of the board's procedure to investigate the background of applicants in accordance with the established fingerprint process that accesses the Federal Bureau of Investigation (FBI) database and the Texas Department of Public Safety - Crime Records division files in order to ensure the applicant lacks a history of dishonest or felonious acts and for the board to be aware of any criminal activity that might be relevant to the applicant's qualifications; and
(7) [(6)] any other information requested by the board.
[(c) An applicant for certification by reciprocity from a domestic jurisdiction that has been approved as being substantially equivalent by both NASBA and the board must submit the following along with the completed application form and requisite fee to be processed:]
[(1) a certificate of good standing as a CPA from a domestic jurisdiction approved by both NASBA and the board as being substantially equivalent;]
[(2) if requested, a certificate of verification of substantial equivalency of the domestic jurisdiction of origin from NASBA;]
[(3) an executed oath of office stating support of the Constitutions of the United States and of the State of Texas and their laws and the rules of the board;]
[(4) evidence of completion of an examination on the board's Rules of Professional Conduct;]
[(5) evidence of completion of 120 credits of CPE during the last three years, including a board-approved four-credit ethics course; in compliance with Chapter 523 of this title (relating to Continuing Professional Education);]
[(6) evidence of completion of the board's procedure to investigate the background of applicants in accordance with the established fingerprint process that accesses the Federal Bureau of Investigation (FBI) database and the Texas Department of Public Safety - Crime Records division files in order to ensure the applicant lacks a history of dishonest or felonious acts and for the board to be aware of any criminal activity that might be relevant to the applicant's qualifications; and]
[(7) any other information requested by the board.]
(c) [(d)] An applicant for certification by reciprocity from a foreign jurisdiction that has been approved as being substantially equivalent by both U.S. IQAB and the board must submit the following along with the completed application form and requisite fee to be processed:
(1) a certificate of good standing of credentials to practice public accountancy from the foreign jurisdiction of origin;
(2) an executed oath of office stating support of the Constitutions of the United States and of the State of Texas and their laws and the rules of the board;
(3) evidence of a passing grade on the IQEX;
(4) evidence of a passing grade on a board approved examination on the board's Rules of Professional Conduct;
(5) evidence of the completion of a board-approved four-credit ethics course;
(6) evidence of completion of the board's procedure to investigate the background of applicants in accordance with the established fingerprint process that accesses the Federal Bureau of Investigation (FBI) database and the Texas Department of Public Safety - Crime Records division files in order to ensure the applicant lacks a history of dishonest or felonious acts and for the board to be aware of any criminal activity that might be relevant to the applicant's qualifications; and
(7) any other information requested by the board.
(d) [(e)] All correspondence and supporting documentation submitted to the board shall be in English or accompanied by a certified translation into English of such documents.
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 July 14, 2025.
TRD-202502485
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 24, 2025
For further information, please call: (512) 305-7842
CHAPTER 513. REGISTRATION
SUBCHAPTER B.
The Texas State Board of Public Accountancy (Board) proposes an amendment to §513.11 concerning Qualifications for Non-CPA Owners of Firm License Holders.
Background, Justification and Summary
The Board is proposing a revision to §513.11 to make it clear that a non-CPA firm owner must be a Texas resident. This is a statutory requirement.
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 rule amendment will make the requirement for non-CPA ownership to be a Texas resident clear.
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 August 25, 2025.
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, 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.
§513.11.
(a) A firm which includes non-CPA owners may not qualify for a firm license unless every non-CPA individual who is a Texas resident [an] owner of the firm:
(1) is actively providing personal services in the nature of management of some portion of the firm's business interests or performing services for clients of the firm or an affiliated entity;
(2) lacks a history of dishonest or felonious acts or any criminal activity that might be relevant to the applicant's qualifications; and
(3) is not a suspended or revoked licensee or certificate holder excluding those licensees that have been administratively suspended or revoked. (Administratively suspended or revoked are those actions against a licensee for Continuing Professional Education reporting deficiencies or failure to renew a license.)
(b) Each of the non-CPA individual owners who are residents of the State of Texas must also:
(1) pass an examination on the rules of professional conduct as determined by board rule;
(2) comply with the rules of professional conduct;
(3) maintain 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; and
(4) provide to the board fingerprinting required in §515.1(d) of this title (relating to License) unless previously submitted to the board.
(c) A "Non-CPA Owner" includes any individual or qualified corporation who has any financial interest in the firm or any voting rights in the firm.
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 July 14, 2025.
TRD-202502486
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 24, 2025
For further information, please call: (512) 305-7842
CHAPTER 515. LICENSES
22 TAC §515.8The Texas State Board of Public Accountancy (Board) proposes an amendment to §515.8 concerning Retired or Disability Status.
Background, Justification and Summary
A licensee taking retired status may not be associated with the practice of public accountancy. The proposed rule makes it clear, however, that a retired CPA may verify the work experience requirement of a candidate to become a CPA if the experience was received when the retired CPA was not retired.
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 rule amendment will make it clear that verification of work experience for a candidate to become licensed may be signed by a retired CPA when the work experience was acquired prior to the CPA becoming retired.
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 August 25, 2025.
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, 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.
(a) Retired status. A licensee who is at least 60 years old and has affirmed that the licensee 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 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 require the retired licensee's signature and use of the CPA title either with or without "retired" attached, except a retired licensee may sign the work experience form [providing supervision] of an applicant for CPA certification if the supervision occurred prior to retirement [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 became employed;
(B) complete a new license renewal notice; and
(C) meet the CPE requirements for the period since the licensee 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 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 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 July 14, 2025.
TRD-202502487
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 24, 2025
For further information, please call: (512) 305-7842
CHAPTER 517. PRACTICE BY CERTAIN OUT OF STATE FIRMS AND INDIVIDUALS
22 TAC §517.2The Texas State Board of Public Accountancy (Board) proposes an amendment to §517.2 concerning Practice by Certain Out of State Individuals.
Background, Justification and Summary
The Board proposes to:
1. delete the reference to the National Qualifications Appraisal Services, which language the legislature removed from the Act;
2. clarify that the Board will allow licensees to practice in Texas without a reciprocal license, in order to provide for "mobility", so long as the state they are licensed in has substantially the same licensing requirements as Texas;
3. reflect that if an out of state licensee held the substantially equivalent out of state license on December 31, 2024, the licensee would be permitted to practice under mobility without a reciprocal license. This protects those licensed out of state on that date, if the state they were originally licensed in, is subsequently determined to not have substantially equivalent licensing requirements.
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 rule amendment will inform the public on the acceptance and provisions for mobility of licensees from out of state providing accounting services in Texas. It will also provide "safe harbor" recognition to out of state licensees that were licensed in their state when their state was substantially equivalent even if the state is subsequently determined to no longer be substantially equivalent.
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 August 25, 2025.
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, 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.
§517.2.
(a) An individual who holds an active [a] certificate or license as a CPA issued by another state and whose principal place of business is not in this state may exercise all the privileges of certificate and license holders of this state without obtaining a certificate or license under this chapter if the individual:
(1) has passed the uniform CPA examination;
(2) has completed:
(A) a baccalaureate degree with at least 150 semester hours and a concentration in accounting or equivalent courses;
(B) a graduate degree with a concentration in accounting or equivalent courses; or
(C) a baccalaureate degree with a concentration in accounting or equivalent courses; and
(3) at the time the individual's certificate or license was issued in the other state, had completed:
(A) at least one year of work experience, if licensed under an educational pathway comparable to subparagraphs (2)(A) or (B) of this subsection; or
(B) at least two years of work experience, if licensed under an educational pathway comparable to subparagraph (2)(C) of this subsection.
[(1) NASBA's National Qualification Appraisal Service has verified that the other state has education, examination, and experience requirements for certification or licensure that are comparable to or exceed the requirements for licensure as a CPA of the AICPA/NASBA UAA and the board determines that the licensure requirements of that Act are comparable to or exceed the licensure requirements of this chapter; or]
[(2) the individual obtains from NASBA's National Qualification Appraisal Service verification that the individual's education, examination, and experience qualifications are comparable to or exceed the requirements for licensure as a CPA of the AICPA/NASBA UAA and the board determines that the licensure requirements of that Act are comparable to or exceed the licensure requirements of this chapter.]
(b) An individual who meets the requirements of subsection (a) [(a)(1) or (2)] of this section and who offers or renders professional services in person or by mail, telephone, or electronic means may practice public accountancy in this state without notice to the board.
(c) Notwithstanding any other law, the board may prohibit an individual not licensed in this state from exercising the privileges of certificate and license holders of this state if the board determines the individual does not meet the requirements of subsection (a) of this section.
(d) An individual who on December 31, 2024, held a certificate or license issued by another state and practiced under a privilege of this section in this state may exercise all the privileges of the holder of a certificate and license issued under this title without obtaining a certificate or license in this state. To the extent that the individual exercises privileges as described by this subsection, the individual is subject to this title.
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 July 14, 2025.
TRD-202502488
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 24, 2025
For further information, please call: (512) 305-7842
CHAPTER 523. CONTINUING PROFESSIONAL EDUCATION
SUBCHAPTER B.
The Texas State Board of Public Accountancy (Board) proposes an amendment to §523.112 concerning Required CPE Participation.
Background, Justification and Summary
The Board proposes to revise Board §523.112 to clarify that an applicant for reinstatement must have at least 120 hours of CPE within the last 36 months from the date of the application for reinstatement with 20 of those continuing professional education (CPE) hours having been completed within the 12 months preceding the application for reinstatement.
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 rule amendment will advise the public of the CPE requirements for reinstatement.
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 August 25, 2025.
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, 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.
§523.112.
(a) A licensee shall complete at least 120 CPE credits in each three-year period, and a minimum of 20 CPE credits in each one-year period.
(b) CPE, except as provided by board rule, shall be offered by board authorized CPE sponsors.
(c) CPE requirements for the issuance or renewal of a license are as follows:
(1) Licensees who have been certified or registered for less than 12 months do not have a CPE credit requirement. The first license period begins on the date of certification and ends with the last day of the licensee's birth month.
(2) To be issued a license for the first full 12-month license period, the licensee does not have a CPE requirement. CPE earned prior to the first 12-month license period will not be applied toward the three-year requirement.
(3) To be issued a license for the second full 12-month period, the licensee shall report a minimum of 20 CPE credits. The CPE credits shall be completed in the 12 months preceding the second year of licensing.
(4) To be issued a license for the third full 12-month license period, the licensee shall report a total of at least 60 CPE credits that were completed in the 24 months preceding the license period. At least 20 CPE credits of the requirement shall be completed in the 12 months preceding the third year of licensing.
(5) To be issued a license for the fourth full 12-month period, the licensee shall report a total of at least 100 CPE credits that were completed in the 36 months preceding the license period. At least 20 CPE credits of the requirement shall be completed in the 12 months preceding the fourth year of licensing.
(6) To be issued a license for the fifth and subsequent license periods, the licensee shall report a total of at least 120 CPE credits that were completed in the 36 months preceding the license period, and at least 20 CPE credits of the requirement shall be completed in the 12 months preceding the fifth year of licensing.
(d) A former licensee whose certificate or registration has been revoked for failure to pay the license fee and who makes application for reinstatement shall pay the required fees and applicable late fees and must report a total of at least 120 CPE credits that were completed in the 36 months preceding the application for reinstatement, and at least 20 CPE credits of the requirement shall be completed in the twelve months preceding the application for reinstatement [the minimum CPE credits missed].
(e) A non-resident licensee seeking renewal of a license in Texas shall be determined to have met the CPE requirement by meeting the CPE requirements for renewal of a certificate/license in the state in which the licensee's principal place of business is located.
(1) Non-resident licensees shall demonstrate compliance with the CPE renewal requirements of the state in which the licensee's principal place of business is located by signing a statement to that effect during the renewal process of this state.
(2) If a non-resident licensee's principal place of business state has no CPE requirements for renewal of a certificate/license, the non-resident licensee must comply with all CPE requirements for renewal of a certificate in Texas.
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 July 14, 2025.
TRD-202502489
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 24, 2025
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §523.113 concerning Exemptions from CPE.
Background, Justification and Summary
The Board is recommending a revision to §523.113 to clarify that a faculty member is not considered to be in the practice of public accountancy when the faculty member only provides instruction in accounting courses. The faculty member loses this exemption from continuing professional education (CPE) and licensing when holding out to be a CPA when providing his expertise as a CPA while not providing instruction in accounting outside of the educational course work setting.
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 rule amendment will help the public to understand when a license to practice public accounting may be needed.
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 August 25, 2025.
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, 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.
§523.113.
The board shall not issue or renew a license to an individual who has not earned the required CPE credits unless an exemption has been granted by the board.
(1) The board may consider granting an exemption from the CPE requirement during the period for which the exemption is requested on a case-by-case basis if:
(A) a licensee completes and forwards to the board an affidavit indicating that the licensee is not employed; or
(B) a licensee completes and forwards to the board an affidavit indicating no association with accounting. The affidavit shall include, as a minimum, a brief description of the duties performed, job title, and verification by the licensee's immediate supervisor. For purposes of this section, the term "association with accounting" shall include the following:
(i) working, 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
(ii) representing to the public, including an employer, that the licensee is a CPA or public accountant in connection with the sale of any services or products involving professional accounting services as defined in the Rules of Professional Conduct, §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
(iii) offering testimony in a court of law purporting to have expertise in accounting and reporting, auditing, tax, or management services; or
[(iv) providing instruction in accounting courses; or]
(iv) [(v)] for purposes of making a determination as to whether the licensee fits one of the categories listed in this clause and clauses (i) - (iii) [(iv)] of this subparagraph, the questions shall be resolved in favor of including the work as having an association with accounting.
(C) a licensee not residing in Texas, who submits an affidavit to the board that the licensee does not serve Texas clients from out of state;
(D) a licensee shows reasons of health, certified by a medical doctor, that prevent compliance with the CPE requirement. A licensee must petition the board for the exemption and provide documentation that clearly establishes the period of disability and the resulting physical limitations;
(E) a licensee who is a military service member during the period for which the exemption is requested, and files a copy of orders to active military duty with the board; or
(F) a licensee shows reason which prevents compliance that is acceptable to the board.
(2) A licensee who has been granted the retired or disability status under §515.8 of this title (relating to Retired or Disability Status) is not required to report any CPE credits.
(3) A licensee who no longer meets the eligibility requirements for an exemption under this section or no longer qualifies for retired or disability status under §515.8 of this title shall be required to report sufficient CPE credits to be in compliance with §523.112 of this chapter (relating to Required CPE Participation). CPE credits shall be earned in the technical area as described in §523.102 of this chapter (relating to CPE Purpose and Definitions) and §523.130 of this chapter (relating to Ethics Course Requirements).
(4) A faculty member of an educational institution may be exempt from CPE only when offering accounting services as a faculty member
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 July 14, 2025.
TRD-202502491
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 24, 2025
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §523.118 concerning Limitations of Courses.
Background, Justification and Summary
The proposed rule revision limits the total number of hours a licensee may apply toward one certification program to 20 hours. (An example of a certification program is Certified Financial Planner). It also limits the total number of continuing professional education (CPE) credits from a certification program to no more than 50 per cent of the total CPE credits applied in a three-year reporting period.
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 rule amendment clarifies for the public the number hours that may be applied to a licensee's required CPE to 20 hours per certification and to 50 percent to the total number of hours required in a three-year reporting period.
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 August 25, 2025.
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, 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.
§523.118.
(a) A licensee may not claim more than 50 percent of the total CPE credits required from the non-technical area in a three-year reporting period.
(b) A licensee may not claim more than 50 percent of the total CPE credits required in a three-year reporting period from nano-learning programs.
(c) A licensee may claim up to 20 CPE credits for [not claim more than 50 percent of the total CPE credits required in a three-year reporting period from] the successful completion of a certification program [programs ], such as a Certified Financial Planner, Certified Internal Auditor, Certified Fraud Examiner, other related financial certifications, and/or related financial securities licenses.
(d) A licensee may claim no more than 50 percent of the total CPE credits required in a three-year reporting period from the successful completion of certification programs.
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 July 14, 2025.
TRD-202502490
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: August 24, 2025
For further information, please call: (512) 305-7842