Texas State Board of Public Accountancy

Final Results of Last Sunset Review

Continue

• Continue the Texas State Board of Public Accountancy for 12 years.

Contracting 

• Require the board to seek approval from the office of the attorney general for all outside counsel contracts.
• Direct the board to develop a formal, agencywide contract development and solicitation process for its professional services contracts.  (Management action – nonstatutory)
• Direct the board to develop a contracting improvement process.  (Management action – nonstatutory)

Licensing and Enforcement

• Require the board to conduct fingerprint-based criminal background checks of all licensure applicants and licensees, phased in over a two-year period.  Exempt licensees currently on “retired” status unless they decide to resume their practice with an active license.  
• Remove subjective licensure provisions for CPAs and non-CPA firm owners.
• Remove requirement for annual license renewal for CPA firms.
• Remove unnecessary licensure and continuing education provisions for non-CPA firm owners, and require the resident manager be a licensed CPA who is responsible for a firm’s license to clarify a firm’s internal management would be left to the discretion of the firm’s owners.
• Clarify the board’s injunctive authority to align with other regulatory agencies.
• Remove the requirement for firms licensed in another state to obtain a firm license from the agency to practice in Texas, but maintain requirements for such firms to follow agency statute and rules.
• Direct the board to comply with statute directing rules and procedures for military service members, veterans, and military spouses by March 1, 2019.  (Management action – nonstatutory)
• Direct the board to remove unnecessary application requirements for candidates to take the CPA exam.  (Management action – nonstatutory)
• Direct the board to accept online submission of exam applications.  (Management action – nonstatutory)
• Direct the board to eliminate rules and policies requiring notarized information.  (Management action – nonstatutory)
• Direct the board to amend its peer review rules to account for risk posed to the public.  (Management action – nonstatutory)
• Direct the board to update its complaint policies and procedures by March 1, 2019.  (Management action – nonstatutory)
• Direct the board to develop rules on administrative costs assessed on respondents.  (Management action – nonstatutory)

Board Composition Study

• Direct the Sunset Commission to request that the Legislature examine all state boards, including the Texas State Board of Public Accountancy, for any legislation needed to mitigate the potential liability of boards controlled by active market participants.  (Management action – nonstatutory)

Public Comment

• Direct the board to revise its rules to facilitate public comment and statutorily require the board to include public testimony as an agenda item at every regular board meeting.

Governance

• Update the standard across-the-board requirements related to board member training, including training on anticompetitive board behavior, and complaints system.
• Continue the board’s SDSI and scholarship reporting requirements but repeal the requirement on statistical analysis of complaints.
• Update the agency’s statute to reflect the requirements of the person-first respectful language initiative.