Texas Administrative Code
Title 22 - EXAMINING BOARDS
Part 22 - TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY
Chapter 501 - RULES OF PROFESSIONAL CONDUCT
Subchapter E - RESPONSIBILITIES TO THE BOARD/PROFESSION
Section 501.91 - Reportable Events

Universal Citation: 22 TX Admin Code ยง 501.91

Current through Reg. 49, No. 38; September 20, 2024

(a) A licensee or certificate holder shall report in writing to the board the occurrence of any of the following events within 30 days of the date the licensee or certificate holder has knowledge of these events:

(1) the filing of criminal charges or the conviction or imposition of deferred adjudication of the licensee or certificate holder of:
(A) a felony;

(B) a crime of moral turpitude as listed in § 519.7(a)(2) of this title (relating to Criminal Offenses that May Subject a Licensee or Certificate Holder to Discipline or Disqualify a Person from Receiving a License);

(C) a crime of which fraud or dishonesty is an element as listed in § 519.7(a)(1) of this title;

(D) a crime that involves alcohol abuse or controlled substances as listed in § 519.7(a)(3) of this title;

(E) a crime of physical injury or threats of physical injury to a person as listed in § 519.7(a)(4) of this title; or

(F) a crime related to the qualifications, functions, or duties of a public accountant or CPA, or to acts or activities in the course and scope of the practice of public accountancy or as a fiduciary;

(2) the cancellation, revocation, or suspension or a voluntary consent decree of the right to practice as a CPA or a public accountant by any governmental body or agency or state, foreign country, or other jurisdiction for a reason other than the failure to pay the appropriate authorization fee;

(3) an un-appealable adverse finding in any state or federal court, an agreed settlement in a civil action against the licensee or certificate holder, or an agreed consent order or settlement with a regulatory authority or licensing body concerning professional accounting services or professional accounting work;

(4) a negotiated settlement evidencing deficient accounting services; or

(5) the revocation, suspension, or voluntary consent decree or any limitation on a professional license from any state or federal regulatory agency such as an insurance license or a securities license, resulting from an un-appealable adverse finding.

(b) The report required by subsections (a) and (c) of this section shall be signed by the licensee or certificate holder and shall set forth the facts which constitute the reportable event. If the reportable event involves the action of an administrative agency or court, then the report shall set forth the title of the matter, court or agency name, docket number, and dates of occurrence of the reportable event.

(c) Regardless of whether a civil suit or administrative adjudicatory action has been filed, a licensee shall notify the board within 30 days of any written settlement agreement in which a licensee has been released from any or all claims or liabilities grounded, in whole or in part, upon an allegation of:

(1) professional negligence, gross negligence, dishonesty, fraud, misrepresentation, incompetence; or

(2) a violation of any consent order or settlement with a regulatory or licensing body concerning professional accounting services or professional accounting work.

(d) A licensee is not required to report to the board any of the events set forth in subsections (a)(3), (a)(4) and (c) of this section when no Texas licensee is involved in the event or no harm has been caused to a person or entity located in Texas. The firm may contact the board to determine what may constitute involvement or harm to a person or entity located in Texas.

(e) Nothing in this section imposes a duty upon any licensee or certificate holder to report to the board the occurrence of any of the events set forth in subsections (a) and (c) of this section either by or against any other licensee or certificate holder.

(f) As used in this section, a conviction includes the initial plea, verdict, or finding of guilt, plea of no contest, or pronouncement of sentence by a trial court, even though that conviction may not be final or sentence may not be actually imposed until all appeals are exhausted.

(g) Confidentiality provisions in the terms of any settlement of the reportable events described in subsections (a) and (c) of this section shall not limit the licensee's or certificate holder's obligation to report such event and to cooperate fully with the board in any investigation. All information gathered or received by the board regarding a disciplinary action is confidential and not subject to disclosure under Chapter 552 of the Government Code (relating to Public Information) prior to public hearing.

(h) Interpretive Comment: A crime of moral turpitude is defined in this chapter as a crime involving grave infringement of the moral sentiment of the community and further defined in § 501.90(19) of this chapter (relating to Discreditable Acts) and § 519.7 of this title.

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