TITLE 22. EXAMINING BOARDS

PART 17. TEXAS STATE BOARD OF PLUMBING EXAMINERS

CHAPTER 363. EXAMINATION AND REGISTRATION

The Texas State Board of Plumbing Examiners (Board) adopts the amendment to 22 Texas Administrative Code (TAC), Chapter 363, §363.4 which qualifies a journeyman plumber to take the examination for a master plumber's license with two years of journeyman work experience.

The rule is adopted without changes to the proposed text published in the July 11th, 2025, issue of the Texas Register (50 TexReg 3985.) The rule will not be republished.

REASONED JUSTIFICATION FOR THE RULE

The Texas Occupations Code, Chapter 1301 (Plumbing License Law or PLL) was amended by House Bill 3214 (H.B. 3214), 89th Texas Legislature, Regular Session, 2025. The proposed rule implements a statutory change made by H.B. 3214.

H.B. 3214 amended the Plumbing License Law to reduce the minimum required work experience as a journeyman plumber to qualify for a master plumber license. Under this bill, a journeyman plumber may qualify to take the examination for a master plumber's license with two years of journeyman work experience. The bill addressed a shortage of skilled plumbers in Texas by streamlining the path to becoming a master plumber, allowing capable professionals to advance more quickly and meet growing demand in the plumbing industry.

SECTION-BY-SECTION SUMMARY

The proposed rule amends the existing rule by reducing the years of experience a journeyman plumber must hold a license to qualify to take the master plumber's licensing exam from four years to two years.

SUMMARY OF COMMENT

No comment was received on the published rule amendment.

STATUTORY AUTHORITY

The rule is adopted under the authority of House Bill 3214 (H.B. 3214), 89th Texas Legislature, Regular Session, 2025 which amended the Plumbing License Law to reduce the minimum required work experience as a journeyman plumber from four years to two years in order to qualify for a master plumber license, and §1301.251(2) of the Occupations Code, which requires the Board to adopt and enforce rules necessary to administer and enforce the Plumbing License Law.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on September 22, 2025.

TRD-202503391

Patricia Latombe

General Counsel

Texas State Board of Plumbing Examiners

Effective date: October 12, 2025

Proposal publication date: July 11, 2025

For further information, please call: (512) 936-5216

PART 22. TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY

CHAPTER 511. ELIGIBILITY

SUBCHAPTER C. EDUCATIONAL REQUIREMENTS

22 TAC §511.51

The Texas State Board of Public Accountancy adopts an amendment to §511.51 concerning Educational Definitions, with changes to the proposed text as published in the July 25, 2025 issue of the Texas Register (50 TexReg 4175) and will be republished.

Some schools use the term "upper level accounting or business courses" and others use the term "upper division accounting or business courses". This amendment makes it clear that both are accepted as having the same meaning in the Board's rules.

No comments were received regarding adoption of the amendment.

The amendment is adopted under the Public Accountancy Act (Act), Texas Occupations Code, §901.151 and §901.655 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act.

No other article, statute or code is affected by the adoption.

§511.51. Educational Definitions.

(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 adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on September 19, 2025.

TRD-202503364

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Effective date: October 9, 2025

Proposal publication date: July 25, 2025

For further information, please call: (512) 305-7842

22 TAC §511.52

The Texas State Board of Public Accountancy adopts an amendment to §511.52 concerning Recognized Institutions of Higher Education, without changes to the proposed text as published in the July 25, 2025 issue of the Texas Register (50 TexReg 4177). The rule will not be republished.

The amendment is a grammatical change.

No comments were received regarding adoption of the amendment.

No other article, statute or code is affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on September 19, 2025.

TRD-202503365

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Effective date: October 9, 2025

Proposal publication date: July 25, 2025

For further information, please call: (512) 305-7842

22 TAC §511.53

The Texas State Board of Public Accountancy adopts an amendment to §511.53 concerning Evaluation of International Education Documents, with changes to the proposed text as published in the July 25, 2025 issue of the Texas Register (50 TexReg 4178) and will be republished.

The amendment relocates 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 path-way to certification.

As a result of comments received eliminating 511.60 and the revision to 511.59 the title was required to be corrected.

No other article, statute or code is affected by the adoption.

§511.53. Evaluation of International Education Documents.

(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;

(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;

(4) An analysis of the title and content of courses taken that are substantially equivalent to courses listed in §511.57 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 Related Business Subjects).

(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 adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on September 19, 2025.

TRD-202503366

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Effective date: October 9, 2025

Proposal publication date: July 25, 2025

For further information, please call: (512) 305-7842

22 TAC §511.54

The Texas State Board of Public Accountancy adopts an amendment to §511.54 concerning Recognized Texas Community Colleges, with changes to the proposed text as published in the July 25, 2025 issue of the Texas Register (50 TexReg 4180) and will be republished.

The amendment eliminates the no longer effective Board Rule §511.60, incorporates the statutory language "Courses in an Accounting Concentration to take the UCPAE" for certification, and incorporates the three semester hour ethics course offered at community colleges for individuals studying to become certified through the 120-hour pathway.

These changes were made in response to comments which required clarification of the standards affected.

No other article, statute or code is affected by the adoption.

§511.54. Recognized Texas Community Colleges.

(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 of this chapter (relating to Courses in an Accounting Concentration to take the UCPAE, and Related Business Subjects).

(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 of this chapter.

(1) The Texas community college must be accredited by SACS.

(2) Academic accounting and business courses recognized as meeting §§511.57, and 511.58 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 of this chapter must be taken after completing a baccalaureate degree.

(4) The Texas community college must offer at least:

(A) 30 semester hours of academic accounting courses meeting §511.57 of this chapter; and

(B) 24 semester hours of academic business courses meeting §511.58 of this chapter.

(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;

(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 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 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 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 adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on September 19, 2025.

TRD-202503367

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Effective date: October 9, 2025

Proposal publication date: July 25, 2025

For further information, please call: (512) 305-7842

22 TAC §511.56

The Texas State Board of Public Accountancy adopts an amendment to §511.56 concerning Educational Qualifications under the Act to take the UCPAE, with changes to the proposed text as published in the July 25, 2025 issue of the Texas Register (50 TexReg 4181) and will be republished.

The amendment publishes 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.

Comments were received regarding a better understanding of the standards. The revisions clarify the requirements of certification with a bachelor's degree.

No other article, statute or code is affected by the adoption.

§511.56. Educational Qualifications under the Act to take the UCPAE.

(a) An applicant for the UCPAE under the current Act shall meet the following educational requirements 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 at least 120 semester hours or quarter-hour equivalents of courses consisting of:

(A) effective through July 31, 2026, at least 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);

(B) effective August 1, 2026, at least 24 semester hours or quarter-hour equivalents of upper level accounting courses as defined by §511.57 of this chapter; and

(C) at least 24 semester hours or quarter-hour equivalents of upper level related business courses, as defined by §511.58 of this chapter (relating to Related Business Subjects).

(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)(2)(A) and (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 subsection (a)(2)(A) and (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);

(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) An applicant for the UCPAE who met the educational requirements of §511.57 and §511.58 of this chapter that were in effect at the time of examination shall continue to be examined under those requirements unless the applicant elects to meet the current education requirements of the rules, in effect on August 1, 2026.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on September 19, 2025.

TRD-202503368

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Effective date: October 9, 2025

Proposal publication date: July 25, 2025

For further information, please call: (512) 305-7842

22 TAC §511.57

The Texas State Board of Public Accountancy adopts an amendment to §511.57 concerning Qualified Accounting Courses to take the UCPAE, with changes to the proposed text as published in the July 25, 2025 issue of the Texas Register (50 TexReg 4183) and will be republished.

The amendment eliminates 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. It also makes it clear that the effective date for certification with a baccalaureate degree is effective beginning after July 31, 2026.

A comment was received questioning the requirement of 21 hours to sit for the exam. The proposed revision makes it clear that there must be at least 21 hours to sit for the exam and that an individual that had initially applied to sit for the exam at 150 hours could sit.

No other article, statute or code is affected by the adoption.

§511.57. Courses in an Accounting Concentration to Take the UCPAE.

(a) Effective through July 31, 2026, 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 at least 21 semester credit hours of upper division accounting courses as defined in subsections (d) and (e) 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) 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 at least 21 semester credit hours of accounting courses from the courses listed in subsections (d) and (e) 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) 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 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) The following types of introductory courses do not meet the accounting course definition in subsections (d) and (e) 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) 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) CPE courses shall not be used to meet the accounting course definition.

(i) An ethics course required in §511.58(c) of this chapter (relating to Related Business Subjects) shall not be used to meet the accounting course definition in subsections (d) and (e) of this section.

(j) 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) The board may review the content of accounting courses and determine if they meet the requirements of this section.

(l) 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 (m) 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 §511.58 of this chapter.

(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 adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on September 19, 2025.

TRD-202503369

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Effective date: October 9, 2025

Proposal publication date: July 25, 2025

For further information, please call: (512) 305-7842

22 TAC §511.58

The Texas State Board of Public Accountancy adopts an amendment to §511.58 concerning Definitions of Related Business Subjects to take the UCPAE, with changes to the proposed text as published in the July 25, 2025 issue of the Texas Register (50 TexReg 4186) and will be republished.

The amendment changes the rule 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.

Two comments were received supporting the proposed revision.

No other article, statute or code is affected by the adoption.

§511.58. Related Business Subjects.

(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 a minimum of 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.

(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) no more than 6 credit semester hours of upper level business or accounting internship taken at a Board recognized educational institution of higher education; and

(11) other areas related to accounting.

(c) The Board requires a three semester hour accounting or business ethics course that includes a framework of ethical reasoning, including the core values of integrity, objectivity, and independence, professional values, and attitudes for exercising professional skepticism and other behavior in the best interest of the public and profession and shall include the ethics rules of the AICPA and the SEC. The course may be taken to meet the education requirements of §511.56 of this chapter (related to Educational Qualifications under the Act to take the UCPAE); or the certification requirements of §511.59 of this chapter (related to Qualifications for Issuance of a Certificate with not Fewer than 120 Semester Hours); or §511.164 of this chapter (related to Qualifications for Issuance of a Certificate with not Fewer than 150 Semester Hours).

(d) The board may review the content of business courses and determine if they meet the requirements of this section.

(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.

(f) A course that was repeated will be counted only once to meet the requirements of this section.

(g) 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.

(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 adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on September 19, 2025.

TRD-202503370

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Effective date: October 9, 2025

Proposal publication date: July 25, 2025

For further information, please call: (512) 305-7842

22 TAC §511.59

The Texas State Board of Public Accountancy adopts an amendment to §511.59 concerning Definitions of 120 Semester Hours to take the UCPAE, with changes to the proposed text as published in the July 25, 2025 issue of the Texas Register (50 TexReg 4187) and will be republished.

The amendment establishes 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.

One comment recommended the addition of the 3-hour ethics requirement to become licensed. The proposed rule does not propose an additional 3-hour ethics course as proposed.

No other article, statute or code is affected by the adoption.

§511.59. Qualifications for Issuance of a Certificate with not Fewer than 120 Semester Hours.

(a) Effective August 1, 2026, an 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), may elect to 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 upper level accounting courses as defined by §511.57 of this chapter equal to or in excess of 27 semester hours or quarter-hour equivalents of upper level accounting courses.

(c) The work experience shall be at least 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).

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on September 19, 2025.

TRD-202503371

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Effective date: October 9, 2025

Proposal publication date: July 25, 2025

For further information, please call: (512) 305-7842

22 TAC §511.60

The Texas State Board of Public Accountancy adopts a repeal to §511.60 concerning Qualified Accounting Courses Prior to January 1, 2024 to take the UCPAE, without changes to the proposed text as published in the July 25, 2025 issue of the Texas Register (50 TexReg 4189) and will not be republished.

The repeal deletes Board Rule §511.60 which automatically expired by board rule on January 1, 2024.

No comments were received regarding adoption of the amendment.

The repeal is adopted under the Public Accountancy Act (Act), Texas Occupations Code, §901.151 and §901.655 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act.

No other article, statute or code is affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on September 19, 2025.

TRD-202503372

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Effective date: October 9, 2025

Proposal publication date: July 25, 2025

For further information, please call: (512) 305-7842

SUBCHAPTER H. CERTIFICATION

22 TAC §511.164

The Texas State Board of Public Accountancy adopts an amendment to §511.164 concerning Definition of 150 Semester Hours to Qualify for Issuance of a Certificate, with changes to the proposed text as published in the July 25, 2025 issue of the Texas Register (50 TexReg 4190). The rule will be republished.

These revisions clarify the criteria for certification with 150 approved semester hours and the criteria effective beginning August 1, 2026.

A comment was received that did not support the addition of a three-hour ethics course. The board has clarified that the rule does not require an additional 3-hour ethics course.

No other article, statute or code is affected by the adoption.

§511.164. Qualification for Issuance of a Certificate with not Fewer than 150 Semester Hours.

(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) - (5) this section:

(1) effective through July 31, 2026, at least 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;

(2) effective August 1, 2026, at least 30 semester hours or quarter-hour equivalents of upper level accounting courses as defined by §511.57 of this chapter;

(3) 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 Related Business Subjects);

(4) although not required to meet subsection (a)(5) of this section, the board may accept not more than six hours or quarter hour equivalents of CPA review coursework completed at a board-recognized institution of higher education; and

(5) academic coursework at an institution of higher education as defined by §511.52 of this chapter, when combined with paragraphs (1) - (4) of this subsection meets or exceeds 150 semester hours. An applicant who has met paragraphs (1) - (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 including the coursework used to meet §511.58 of this chapter (relating to Related Business Subjects).

(b) The following courses, courses of study, certificates, and programs may not be used to meet the 150 semester hour requirement:

(1) remedial or developmental courses offered at an educational institution; 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 requirement of this chapter:

(A) American College Education (ACE);

(B) Prior Learning Assessment (PLA);

(D) Defense Subject Standardized Test (DSST); and

(E) StraighterLine.

(d) The work experience shall be at least 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 adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on September 19, 2025.

TRD-202503373

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Effective date: October 9, 2025

Proposal publication date: July 25, 2025

For further information, please call: (512) 305-7842

CHAPTER 512. CERTIFICATION BY RECIPROCITY

22 TAC §512.1

The Texas State Board of Public Accountancy adopts an amendment to §512.1 concerning Certification as a Certified Public Accountant by Reciprocity, without changes to the proposed text as published in the July 25, 2025 issue of the Texas Register (50 TexReg 4191) and will not be republished.

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 revisions to §512.1 reflect that legislative revision.

No comments were received on 512.1.

No other article, statute or code is affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on September 19, 2025.

TRD-202503374

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Effective date: October 9, 2025

Proposal publication date: July 25, 2025

For further information, please call: (512) 305-7842

22 TAC §512.2

The Texas State Board of Public Accountancy adopts a repeal to §512.2 concerning NASBA Verified Substantially Equivalent Jurisdictions, without changes to the proposed text as published in the July 25, 2025 issue of the Texas Register (50 TexReg 4193) and will not be republished.

The Board is adopting 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.

No comments were received regarding repeal of the amendment.

No other article, statute or code is affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on September 19, 2025.

TRD-202503375

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Effective date: October 9, 2025

Proposal publication date: July 25, 2025

For further information, please call: (512) 305-7842

22 TAC §512.4

The Texas State Board of Public Accountancy adopts an amendment to §512.4 concerning Application for Certification by Reciprocity, without changes to the proposed text as published in the July 25, 2025 issue of the Texas Register (50 TexReg 4194) and will not be republished.

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.

One comment was received that supported the proposed revision to §512.4.

No other article, statute or code is affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on September 19, 2025.

TRD-202503376

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Effective date: October 9, 2025

Proposal publication date: July 25, 2025

For further information, please call: (512) 305-7842

CHAPTER 513. REGISTRATION

SUBCHAPTER B. REGISTRATION OF CPA FIRMS

22 TAC §513.11

The Texas State Board of Public Accountancy adopts an amendment to §513.11 concerning Qualifications for Non-CPA Owners of Firm License Holders, without changes to the proposed text as published in the July 25, 2025 issue of the Texas Register (50 TexReg 4195). The rule will not be republished.

The Board is amending §513.11 to make it clear that a non-CPA firm owner must be a Texas resident. This is a statutory requirement.

One comment was received regarding language in the preamble that stated a non-CPA firm owner must be a Texas Resident. The preamble was revised to correct that statement.

No other article, statute or code is affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on September 19, 2025.

TRD-202503377

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Effective date: October 9, 2025

Proposal publication date: July 25, 2025

For further information, please call: (512) 305-7842

CHAPTER 515. LICENSES

22 TAC §515.8

The Texas State Board of Public Accountancy adopts an amendment to §515.8 concerning Retired or Disability Status, without changes to the proposed text as published in the July 25, 2025 issue of the Texas Register (50 TexReg 4197) and will not be republished.

A licensee taking retired status may not be associated with the practice of public accountancy. The adopted 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.

No comments were received regarding adoption of the amendment.

No other article, statute or code is affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on September 19, 2025.

TRD-202503378

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Effective date: October 9, 2025

Proposal publication date: July 25, 2025

For further information, please call: (512) 305-7842

CHAPTER 517. PRACTICE BY CERTAIN OUT OF STATE FIRMS AND INDIVIDUALS

22 TAC §517.2

The Texas State Board of Public Accountancy adopts an amendment to §517.2 concerning Practice by Certain Out of State Individuals, without changes to the proposed text as published in the July 25, 2025 issue of the Texas Register (50 TexReg 4198). The rule will not be republished.

The Board Amends the rule 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.

No comments were received regarding adoption of the amendment.

No other article, statute or code is affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on September 19, 2025.

TRD-202503379

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Effective date: October 9, 2025

Proposal publication date: July 25, 2025

For further information, please call: (512) 305-7842

CHAPTER 523. CONTINUING PROFESSIONAL EDUCATION

SUBCHAPTER B. CONTINUING PROFESSIONAL EDUCATION RULES FOR INDIVIDUALS

22 TAC §523.112

The Texas State Board of Public Accountancy adopts an amendment to §523.112 concerning Required CPE Participation, without changes to the proposed text as published in the July 25, 2025 issue of the Texas Register (50 TexReg 4200) and will not be republished.

The Board revises 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.

No comments were received regarding adoption of the amendment.

No other article, statute or code is affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on September 19, 2025.

TRD-202503380

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Effective date: October 9, 2025

Proposal publication date: July 25, 2025

For further information, please call: (512) 305-7842

22 TAC §523.113

The Texas State Board of Public Accountancy adopts an amendment to §523.113 concerning Exemptions from CPE, without changes to the proposed text as published in the July 25, 2025 issue of the Texas Register (50 TexReg 4201) and will not be republished.

The Board is amending §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.

One comment was received stating that faculty members institutions of higher education should not be exempted from CPE.

The board is required to exempt faculty members of institutions of higher by Section 901.003 of the Texas Public Accountancy Act.

No other article, statute or code is affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on September 19, 2025.

TRD-202503381

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Effective date: October 9, 2025

Proposal publication date: July 25, 2025

For further information, please call: (512) 305-7842

22 TAC §523.118

The Texas State Board of Public Accountancy adopts an amendment to §523.118 concerning Limitations of Courses, without changes to the proposed text as published in the July 25, 2025 issue of the Texas Register (50 TexReg 4203) and will not be republished.

The adopted 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.

No comments were received regarding adoption of the amendment.

No other article, statute or code is affected by the adoption.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on September 19, 2025.

TRD-202503382

J. Randel (Jerry) Hill

General Counsel

Texas State Board of Public Accountancy

Effective date: October 9, 2025

Proposal publication date: July 25, 2025

For further information, please call: (512) 305-7842