November 5, 2026 Board Meeting – Proposed Rules

The Texas State Board of Public Accountancy (Board) proposes the following changes to the rules:

501.52 Definitions.

The following words and terms, when used in title 22, part 22 of the Texas Administrative Code relating to the Texas State Board of Public Accountancy, shall have the following meanings, unless the context clearly indicates otherwise. The masculine shall be construed to include the feminine or neuter and vice versa, and the singular shall be construed to include the plural and vice versa.
(1) “Act” means the Public Accountancy Act, Chapter 901, Occupations Code;
(2) “Advertisement” means a message which is transmitted to persons by, or at the direction of, a person and which has reference to the availability of the person to perform Professional Accounting Services;
(3) “Affiliated entity” means an entity controlling or being controlled by or under common control with another entity, directly or indirectly, through one or more intermediaries;
(4) “Attest Service” means:
(A) an audit or other engagement required by the board to be performed in accordance with the auditing standards adopted by the AICPA, PCAOB, or another national or international accountancy organization recognized by the board;
(B) a review or compilation required by the board to be performed in accordance with standards for accounting and review services adopted by the AICPA or another national or international accountancy organization recognized by the board;(C) an engagement required by the board to be performed in accordance with standards for attestation engagements adopted by the AICPA or another national or international accountancy organization recognized by the board; or
(D) any other assurance service required by the board to be performed in accordance with professional standards adopted by the AICPA or another national or international accountancy organization recognized by the board;
(5) “Board” means the Texas State Board of Public Accountancy;(6) “Charitable Organization” means an organization which has been granted tax-exempt status under the Internal Revenue Code of 1986, §501(c), as amended;
(7) “Client” means a party who enters into an agreement with a license holder or a license holder’s employer to receive a professional accounting service or professional accounting work;(8) “Client Practice of Public Accountancy” is the offer to perform or the performance by a person for a client or a potential client of professional accounting services or professional accounting work, and also includes:
(A) the advice or recommendations in connection with the sale or offer for sale of products (including the design and implementation of computer software), when the advice or recommendations routinely require or imply the possession of accounting or auditing skills or expert knowledge in auditing or accounting; and
(B) the performance of litigation support services;
(9) “Commission” means compensation for recommending or referring any product or service to be supplied by another party;(10) “Contingent fee” means a fee for any service where no fee will be charged unless a specified finding or result is attained, or in which the amount of the fee is otherwise dependent upon the finding or result of such service. However, a person’s non-Contingent fees may vary depending, for example, on the complexity of the services rendered. Fees are not contingent if they are fixed by courts or governmental entities acting in a judicial or regulatory capacity, or in tax matters if determined based on the results of judicial proceedings or the findings of governmental agencies acting in a judicial or regulatory capacity, or if there is a reasonable expectation of substantive review by a taxing authority;
(11) “Financial Statements” means a presentation of financial data, including accompanying notes, derived from accounting records and intended to communicate an entity’s economic resources or obligations at a point in time, or the changes therein for a period of time, in accordance with generally accepted accounting principles or other comprehensive basis of accounting. Incidental financial data to support recommendations to a client or in documents for which the reporting is governed by Statements on Standards for Attestation Engagements and tax returns and supporting schedules do not constitute financial statements for the purposes of this definition;
(12) “Firm” means a sole proprietorship, partnership, limited liability partnership, limited liability company, corporation or other legally recognized business entity engaged in the practice of public accountancy;
(13) “Good standing” means compliance by a licensee with the board’s licensing rules, including the mandatory continuing education requirements, Peer Review, and payment of the annual license fee, and any penalties and other costs attached thereto. In the case of board-imposed disciplinary or administrative sanctions, the person must be in compliance with all the provisions of the board order to be considered in good standing;(14) “Licensee” means the holder of a license issued by the board to a person pursuant to the Act, or pursuant to provisions of a prior Act;
(15) “Out of state practitioner and out of state firm” means a person licensed in another jurisdiction practicing in Texas pursuant to a practice privilege as provided for in §901.461 and §901.462 of the Act (relating to Practice by Certain Out-of-State Firms and Practice by Out-of-State Practitioner with Substantially Equivalent Qualifications);
(16) “Peer Review,” “Quality Review” or “Compliance Assurance” means the study, appraisal, or review of the professional accounting work of a public accountancy firm that performs attest services by a certificate holder who is not affiliated with the firm;
(17) “Person” means an individual, sole proprietorship, partnership, limited liability partnership, limited liability company, corporation or other legally recognized business entity that provides or offers to provide professional accounting services or professional accounting work as defined in paragraph (22) of this section;
(18) “Principal place of business and home office” means the office location designated by the out of state licensee or firm for purpose of a practice privilege in this state. [location specified by the client as the address to which a client practice of public accounting service is directed and is synonymous with Home Office where it appears in the Act;]
(19) “Practice unit” means an office of a firm required to be licensed with the board for the purpose of the client practice of public accountancy;
(20) “Practice privilege” means the privilege for an out-of-state person to provide certain Professional Accounting Services or Professional Accounting Work in Texas to the extent permitted under Chapter 517 of this title (relating to Practice by Certain Out of State Firms and Individuals);
(21) “Preparation engagement” means the preparation of financial statements that do not include an audit, review or a compilation report on those financial statements in accordance with Standards for Accounting and Review Services adopted by the AICPA;
(22) “Professional Accounting Services” or “professional accounting work” means services or work that requires the specialized knowledge or skills associated with certified public accountants, including but not limited to:
(A) issuing reports on financial statement(s);
(B) preparation engagements pursuant to SSARS;
(C) providing management or financial advisory or consulting services;
(D) preparing tax returns;
(E) providing advice in tax matters;
(F) providing forensic accounting services;
(G) providing internal auditing services;
(H) accounting, auditing and other assurance services;
(I) providing litigation support services; and
(J) recommending the sale of a product if the recommendation requires or implies accounting or auditing skills.
(23) “Report” means an opinion, report, or other document, prepared in connection with an attest service that states or implies assurance as to the reliability of financial statement(s); and includes or is accompanied by a statement or implication that the person issuing the opinion, report, or other document has special knowledge or competence in accounting or auditing. A statement or implication of assurance as to the reliability of a financial statement or as to the special knowledge or competence of the person issuing the opinion, report, or other document includes any form of language that is conventionally understood to constitute such a statement or implication. A statement or implication of special knowledge or competence in accounting or auditing may arise from the use by the issuer of the opinion, report, or other document of a name or title indicating that the person is an accountant or auditor; or the language of the opinion, report, or other document itself.
(24) Interpretive Comment: The practice of public accountancy is defined in §901.003 of the Act (relating to the Practice of Public Accountancy).

501.75. Confidential Client Communications.

(a) A licensee or any partner, member, officer, shareholder or employee of the licensee must receive voluntary written permission from a client or a client’s authorized representative before disclosing confidential information to a third party. Confidential information includes any information communicated by a client in relation to professional accounting services rendered to the client.

(1) Examples of authorized representatives include but are not limited to: the authorized representative of a successor entity becomes the authorized representative of the predecessor entity when the predecessor entity ceases to exist; and an executor/administrator of the estate of a deceased client possessing an order signed by a judge.

(2) Examples of third parties include but are not limited to contractors, subcontractors, subsidiaries, and/or affiliates, within or outside the United States of America engaged in connection with the provision of professional services and/or services for internal, administrative and/or regulatory compliance purposes.

[(a) Except by written permission of the client or the authorized representatives of the client, a person or any partner, member, officer, shareholder, or employee of a person shall not voluntarily disclose to a third party, including contractors, subcontractors, subsidiaries, and/or affiliates, within or outside the United States of America engaged in connection with the provision of professional services and/or services for internal, administrative and/or regulatory compliance purposes, information communicated by the client relating to, and in connection with, professional accounting services or professional accounting work rendered to the client. Such information shall be deemed confidential. The following includes, but is not limited to, examples of authorized representatives:]

[(1) the authorized representative of a successor entity becomes the authorized representative of the predecessor entity when the predecessor entity ceases to exist and no one exists to give permission on behalf of the predecessor entity; and]

[(2) an executor/administrator of the estate of a deceased client possessing an order signed by a judge is an authorized representative of the estate.]

(b) The provisions contained in subsection (a) of this section do not prohibit the disclosure of information required to be disclosed:

(1) by the professional standards for reporting on the examination of a financial statement and identified in Chapter 501, Subchapter B of this title (relating to Professional Standards);

(2) by applicable federal laws, federal government regulations, including requirements of the PCAOB;

(3) under a summons or subpoena under the provisions of the Internal Revenue Code of 1986 and its subsequent amendments, a summons under the provisions of the Securities Act of 1933 (15 U.S.C. Section 77a et seq.) and its subsequent amendments, or a summons under the provisions of the Securities Exchange Act of 1934 (15 U.S.C. Section 78a et seq.) and its subsequent amendments, the Securities Act (Article 581-1 et seq., Vernon’s Texas Civil Statutes), Texas Revised Civil Statutes Annotated;

(4) under a court order signed by a judge if the court order:

(A) is addressed to the license holder;

(B) mentions the client by name; and

(5) by the public accounting profession in reporting on the examination of financial statements;

(6) by a congressional or grand jury subpoena;

(7) in investigations or proceedings conducted by the board;

(8) in ethical investigations conducted by a private professional organization of certified public accountants;

(9) in a peer review; or

(10) in the course of a practice review by another CPA or CPA firm for a potential acquisition in conjunction with a prospective purchase, sale, or merger of all or part of a member’s practice if both firms enter into a written nondisclosure agreement with regard to all client information shared between the firms.

(c) The provisions contained in subsection (a) of this section do not prohibit the disclosure of information already made public, including information disclosed to others not having a confidential communications relationship with the client or authorized representative of the client.

(d) A person in the client practice of public accountancy shall take all reasonable measures to maintain the confidentiality of the client records and shall immediately upon becoming aware of the loss of, or loss of control over, the confidentiality of those records notify the client affected in writing of the date and time of the loss if known. Loss includes a cybersecurity breach or other incident exposing the records to a third party or parties, without the client’s consent or the loss of the client records or the loss of control over the client records. Persons have a responsibility to maintain a back-up system in order to be able to immediately identify and notify clients of a loss.

(e) Interpretive comment. The definition of a successor entity as referenced in subsection (a)(1) of this section does not include the purchaser of all assets of an entity.

501.82. Advertising.

(a) A person shall not use or participate in the use of:

(1) any communication having reference to the person’s professional services that contains a false, fraudulent, misleading or deceptive statement or claim;

(2) any communication that refers to the person’s professional services that is accomplished or accompanied by coercion, duress, compulsion, intimidation, threats, overreaching, or vexatious or harassing conduct; nor

(3) a name that is misleading as to the identity of the individual practicing under such name.

(b) Definitions:

(1) A “false, fraudulent, misleading or deceptive statement or claim” includes, but is not limited to, a statement or claim which:

(A) contain a misrepresentation of fact;

(B) is likely to mislead or deceive because it fails to make full disclosure of relevant facts;

(D) implies educational or professional attainments or licensing recognition not supported in fact;

(E) represents that professional accounting services can or will be completely performed for a stated fee when this is not the case, or makes representations with respect to fees for professional accounting services that do not disclose all variables that may reasonably be expected to affect the fees that will in fact be charged;

(F) contains other representations or implications that in reasonable probability will cause a reasonably prudent person to misunderstand or be deceived;

(G) implies the ability to improperly influence any court, tribunal, regulatory agency or similar body or official due to some special relations;

(H) consists of self-laudatory statements that are not based on verifiable facts;

(I) makes untrue comparisons with other accountants; or

(J) contains testimonials or endorsements that are not based upon verifiable facts.

(2) Broadcast–Any transmission over the airwaves or over a cable, wireline, Internet, cellular, e-mail system or any other electronic means.

(3) Coercion–Compelling by force or threat of force so that one is constrained to do what his free will would otherwise refuse.

(4) Compulsion–Driving or urging by force or by physical or mental constraint to perform or forbear from performing an act.

(5) Direct personal communication–Either a face-to-face meeting or a conversation by telephone.

(6) Duress–Any conduct which overpowers the will of another.

(7) Harassing–Any word, gesture, or action which tends to alarm and verbally abuse another person.

(8) Intimidation–Willfully to take, or attempt to take, by putting in fear of bodily harm.

(9) Overreaching–Tricking, outwitting, or cheating anyone into doing an act which he would not otherwise do.

(10) Threats–Any menace of such a nature and extent as to unsettle the mind of anyone on whom it operates, and to take away from his acts that free and voluntary action which alone constitutes consent.

(11) Vexatious–Irritating or annoying.

(c) It is a violation of these rules for a person to persist in contacting a prospective client when the prospective client has made known to the person, or the person should have known the prospective client’s desire not to be contacted by the person.

(d) [In the case of an electronic or direct mail communication, the] The person shall retain a copy of the actual written communication along with a list or other description of parties to whom the communication was distributed. Such copy shall be retained by the person for a period of at least 36 months from the date of its last distribution. In the case of broadcasting, the broadcast shall be recorded and the person shall retain a recording of the actual transmission for at least 36 months.

(e) Subsection (d) of this section does not apply to anyone when:

(1) the communication is made to anyone who is at that time a client of the person;

(2) the communication is invited by anyone to whom it was made; or

(3) the communication is made to anyone seeking to secure the performance of professional accounting services.

[(f) In the case of broadcasting, the broadcast shall be recorded and the person shall retain a recording of the actual transmission for at least 36 months.]

501.83. Firm Names.

(a) General rules applicable to all firms:

(1) A firm name may not contain words, abbreviations or other language that are misleading to the public. [, or that may cause confusion to the public as to the legal form or ownership of the firm.]

(2) A firm licensed by the board may not conduct business [, perform or offer to perform services for or provide products to a client] under a name other than the name in which the firm is licensed by the board.

(3) The firm name must include:

[(3) A word, abbreviation or other language is presumed to be misleading if it:]

(A) the surname of the individual if the license holder is a sole proprietor;

(B) the surname or initials of at least one current or former partner, shareholder or owner of the firm or the predecessor firm if the firm is a partnership or a corporation;

(4) The name may not include:

(A) A misleading trade name or assumed name language regarding the quality of services offered, special expertise, expectation as to outcomes or favorable results, or geographic area of service;

(B) The name of a non-owner or non-CPA except as provided for in (3)(B) of this subsection;

(D) A designation such as “company,” “and company,” “associates,” “and associates,” “group” or similar designations implying that the firm has more than one employed licensee unless there are at least two employed licensees involved in the practice, excluding independent contractors.

(5) A firm name may state or imply limitations on the type of service offered such as tax, audit, or advisory services provided the services of the firm are limited to those in the name.

[(A) is a trade name or assumed name that does not comply with paragraph (4)(A) or (B) of this subsection;]

[(B) states or implies the quality of services offered, special expertise, expectation as to outcomes or favorable results, or geographic area of service;]

[(C) includes the name of a non-owner of the firm;]

[(D) includes the name of a non-CPA, except as provided in paragraph (4)(B) of this subsection;]

[(E) states or implies educational or professional attainment not supported in fact;]

[(F) states or implies licensing recognition for the firm or any of its owners not supported in fact;]

[(G) includes a designation such as “company”, “and company,” “associates,” “and associates,” “group” or abbreviations thereof or similar designations implying that the firm has more than one employed licensee unless there are at least two employed licensees involved in the practice. Independent contractors are not considered employees under this subsection; or]

[(H) includes the designation “company” when it is a one licensee sole proprietorship.]

[(4) A word, abbreviation or other language is presumed not misleading if it:]

[(A) is the licensee’s full name, the licensee’s surname, or full or last initials of one or more current or former CPA owners of the firm, its predecessor firm or successor firm;]

[(B) is the name, surname, or initials of one or more current or former foreign practitioner owners of the firm, its predecessor firm or successor firm who are or would have been eligible to practice public accountancy in this state pursuant to §901.355 of the Act (relating to Registration for Certain Foreign Applicants);]

[(C) indicates the legal organization of the firm; or]

[(D) states or implies a limitation on the type of service offered by the firm, such as “tax,” “audit” or “investment advisory services,” provided the firm in fact principally limits its practice to the type of service indicated in the name.]

[(5) The board may place conditions on the licensing of a firm in order to ensure compliance with the provisions of this section.]

[(b) Additional Requirements Based on Legal Form or Ownership.]

[(1) The names of a corporation, professional corporation, limited liability partnership, professional limited liability company or other similar legal forms of ownership must contain the form of ownership or an abbreviation thereof, such as “Inc.,” “P.C.,” “L.L.P.” or “P.L.L.C.”; except that a limited liability partnership organized before September 1, 1993 is not required to utilize the words “limited liability partnership” or any abbreviation thereof.]

[(2) Sole Proprietorships:]

[(A) The name of a firm that is a sole proprietor must contain the surname of the sole proprietor as it appears on the individual license issued to the sole proprietor by the board.]

(b) [(B)] A partner surviving the death of all other partners may continue to practice under the partnership name for up to two years after becoming a sole proprietor, notwithstanding subsection (d) of this section.

(c) The name of any current or former owner may not be used in a firm name during any period when such owner is prohibited from practicing public accountancy and prohibited from using the title “certified public accountant,” “public accountant” or any abbreviation thereof, unless specifically permitted by the board.

(d) A firm licensed by the board is required to report to the board any change in the legal organization of the firm and amend the firm name to comply with this section regarding firm names for the new organization within thirty days of the effective date of such change.

[(e) This section regarding firm names does not affect firms licensed by the board prior to the effective date of this section, but does apply to any change in legal organization or name that occurs after the effective date of this section. Nothing in this subsection prohibits the board from placing conditions on the licensing of a firm pursuant to subsection (a)(5) of this section at the time of renewal of the firm license.]

519.6. Subpoenas.

(a) The executive director or his designated representative is delegated authority, pursuant to §901.166 of the Texas Public Accountancy Act (relating to Authority to Issue Subpoena, Administer Oath, and Receive Evidence) to issue subpoenas to compel the attendance of a candidate, applicant, licensee or any other relevant witness or to compel the production of relevant documents, records and other materials, maintained by electronic or other means in the furtherance of the investigation of any matter within the jurisdiction of the board. The executive director or his designated representative may administer oaths and take testimony and other evidence from any person who is the subject of a subpoena issued under this section in the furtherance of the investigation of any matter within the jurisdiction of the board.

[(b) The executive director or his designated representative is delegated authority to issue subpoenas authorized by the APA in contested cases and the Act.]

(b) [(c)] A candidate, applicant, licensee or any other relevant witness may be deposed at the board’s offices in Austin, Texas. If the deponent is not a party to a contested case, the board will reimburse the deponent for reasonable expenses incurred to attend the deposition in accordance with §2001.103 of the Texas Government Code. Any deponent may seek a protective order concerning the place of deposition on grounds stated in Texas Rule of Civil Procedure §192.6.

(c) [(d)] Interpretive Comment. This section should be read in conjunction with §501.93 of this title (relating to Responses).

519.7. Criminal Offenses that May Subject a Licensee or Certificate Holder to Discipline or Disqualify a Person from Receiving a License.

(a) Final conviction or placement on deferred adjudication for a felony, or final conviction or placement on deferred adjudication for the following misdemeanors, may subject a licensee or certificate holder to disciplinary action pursuant to §501.90 of this title (relating to Discreditable Acts) or disqualify a person from receiving a license or certificate, or deny a person the opportunity to take the UCPAE pursuant to §511.70 of this title (relating to Grounds for Disciplinary Action of Applicants). Licensees and certificate holders are often placed in a position of trust with respect to client funds and assets. The public including the business community relies on the integrity of licensees and certificate holders in providing professional accounting services or professional accounting work. The board considers a conviction or placement on deferred adjudication for a felony or conviction or placement on deferred adjudication for the following misdemeanor offenses to be evidence of an individual lacking the integrity necessary to be trusted with client funds and assets. [The repeated failure to follow state and federal criminal laws directly relates to the integrity required to practice public accountancy.] The board has determined that the following list of misdemeanor offenses evidence violations of law that involve integrity and directly relate to the duties and responsibilities involved in providing professional accounting services or professional accounting work, pursuant to the provisions of Chapter 53 of the Occupations Code:

(1) dishonesty or fraud:

(A) Unlawful Use of Criminal Instrument;

(B) Unlawful Access to Stored Communications;

(D) Burglary of Coin-Operated or Coin Collection Machines;

(E) Burglary of Vehicles;

(F) Theft;

(G) Theft of Service;

(H) Tampering with Identification Numbers;

(I) Theft of or Tampering with Multichannel Video or Information Services;

(J) Manufacture, Distribution, or Advertisement of Multichannel Video or Information Services Device;

(K) Sale or Lease of Multichannel Video or Information Services Device;

(L) Possession, Manufacture, or Distribution of Certain Instruments Used to Commit Retail Theft;

(M) Forgery;

(N) Criminal Simulation;

(O) Trademark Counterfeiting;

(P) Stealing or Receiving Stolen Check or Similar Sight Order;

(Q) False Statement to Obtain Property or Credit or in the Provision of Certain Services;

(R) Hindering Secured Creditors;

(S) Fraudulent Transfer of a Motor Vehicle;

(T) Credit Card Transaction Record Laundering;

(U) Issuance of a Bad Check;

(V) Deceptive Business Practices;

(W) Rigging Publicly Exhibited Contest;

(X) Misapplication of Fiduciary Property or Property of Financial Institution;

(Y) Securing Execution of Document by Deception;

(Z) Fraudulent Destruction, Removal, or Concealment of Writing;

(AA) Simulating Legal Process;

(BB) Refusal to Execute Release of Fraudulent Lien or Claim;

(CC) Fraudulent, Substandard, or Fictitious Degree;

(DD) Breach of Computer Security;

(EE) Unauthorized Use of Telecommunications Service;

(FF) Theft of Telecommunications Service;

(GG) Publication of Telecommunications Access Device;

(HH) Insurance Fraud;

(II) Medicaid Fraud;

(JJ) Coercion of Public Servant or Voter;

(KK) Improper Influence;

(LL) Acceptance of Honorarium (by restricted government employees);

(MM) Gift to Public Servant by Person Subject to his Jurisdiction;

(NN) Offering Gift to Public Servant;

(OO) Perjury;

(PP) False Report to Police Officer or Law Enforcement Employee;

(QQ) Tampering with or Fabricating Physical Evidence;

(RR) Tampering with Governmental Record;

(SS) Fraudulent Filing of Financial Statement;

(TT) False Identification as Peace Officer;

(UU) Misrepresentation of Property;

(VV) Record of a Fraudulent Court;

(WW) Bail Jumping and Failure to Appear;

(XX) False Alarm or Report;

(YY) Engaging in Organized Criminal Activity;

(ZZ) Violation of Court Order Enjoining Organized Criminal Activity;

(AAA) Failing to file license holder’s own tax return; and

(BBB) Evading arrest;

(2) moral turpitude:

(A) Public Lewdness;

(B) Indecent Exposure;

(D) Improper Contact with Victim;

(E) Abuse of Corpse;

(F) Prostitution;

(G) Promotion of Prostitution;

(H) Obscene Display or Distribution;

(I) Obscenity;

(J) Sale, Distribution, or Display of Harmful Material to Minor; and

(K) Employment Harmful to Children;

(3) alcohol abuse or controlled substances:

(A) Possession of Substance in Penalty Group 3 (less than 28 grams), under the Texas Health and Safety Code;

(B) Possession of Substance in Penalty Group 4 (less than 28 grams), under the Texas Health and Safety Code;

(C) Manufacture, Delivery, or Possession with Intent to Deliver Miscellaneous Substances, under the Texas Health and Safety Code;

(D) Manufacture, Delivery, or Possession of Miscellaneous Substances, under the Texas Health and Safety Code;

(E) Delivery of Marijuana, under the Texas Health and Safety Code;

(F) Possession of Marijuana, under the Texas Health and Safety Code;

(G) Possession or Transport of Certain Chemicals with Intent to Manufacture Controlled Substance (for substance listed in a Schedule but not in a Penalty Group), under the Texas Health and Safety Code;

(H) Possession or Delivery of Drug Paraphernalia, under the Texas Health and Safety Code;

(I) Obstructing Highway or Other Passageway; and

(J) Any misdemeanor involving intoxication under the influence of alcohol or a controlled substance.

(4) physical injury or threats of physical injury to a person:

(A) Assault;

(B) Deadly Conduct;

(D) Leaving a Child in a Vehicle.

(b) A licensee or certificate holder is often placed in a position of trust with respect to client funds; and the public, including the business community, relies on the integrity of licensees and certificate holders in preparing reports and providing professional accounting services or professional accounting work. The board considers repeated violations of criminal laws to relate directly to a licensee or certificate holder providing professional accounting services or professional accounting work.

(c) A conviction or placement on deferred adjudication for a violation of any state or federal law that is equivalent to an offense listed in subsection (a)(1) – (4) of this section is considered to directly relate to a licensee or certificate holder providing professional accounting services or professional accounting work and may subject a certificate or registration holder to discipline by the board.

(d) Misdemeanor convictions in another state will be analyzed by the general counsel to determine if such out of state misdemeanors have [misdemeanor has] an equivalency to Texas law prior to opening a complaint investigation.

519.23. Informal Conferences.

(a) The committee, at its sole discretion, may invite the respondent and/or the complainant to appear at a specified time and place for an informal conference. [an informal conference] The purpose of the conference is to assist the committee in the investigation. An informal conference is voluntary and is not a prerequisite to a hearing in a disciplinary action.

[(b) If the committee determines that the complainant’s presence will aid in the investigation, then the committee will invite the complainant to appear at the informal conference. The committee will request the respondent to appear at a specified time and place for an informal conference.]

(b) [(c)] The notice of an informal conference will state the date, time and place. The notice will be mailed and emailed to a correct address on file with the board to the respondent and complainant at least 10 days prior to the informal conference.

(c) [(d)] At an informal conference, the respondent may appear with legal representation but the respondent must agree to be the person responding to the committee’s questions.

(d) [(e)] During an informal conference, each party is given the opportunity to make a brief presentation to the committee. The committee may ask questions regarding the matter being investigated and any matter of interest to the committee related to the investigation. The committee chair may call upon board staff at any time for assistance during the informal conference.

(e) [(f)] The committee may invite a non-party who has relevant information to the investigation to participate in the informal conference but the committee will determine who may attend and the process of the informal conference.

519.42. Administrative Hearing.

(a) When a contested case has been docketed with SOAH, the board will provide the respondent and relevant parties with a Notice of Hearing and Complaint in accordance with §2001.052 of the Texas Government Code and applicable SOAH rules.

(b) The respondent and/or their relevant parties shall enter an appearance, by filing of a written answer or other responsive pleading with SOAH, with a copy to the board, within 20 days of the date on which the notice of hearing and complaint was served on the respondent and/or their relevant parties.

[(c) For purposes of this section, entering an appearance means the filing of a written answer or other responsive pleading with SOAH.]

(c) [(d)] The failure by the respondent to timely enter an appearance as provided in this section shall entitle the petitioner to motion the administrative court to dismiss the proceeding and permit the board to informally dispose of the case by default.

(d) [(e)] The notice of hearing and complaint shall include the following language in capital letters in at least 12-point boldface type: “YOU MUST ENTER AN APPEARANCE BY FILING A WRITTEN ANSWER OR RESPONSE TO THE ALLEGATIONS CONTAINED IN THIS NOTICE WITHIN 20 DAYS OF THE DATE THIS NOTICE WAS MAILED. YOUR FAILURE TO DO SO SHALL ENTITLE THE BOARD TO REQUEST THE DISMISSAL OF THE CASE AND TO INFORMALLY DISPOSE OF THIS CASE BY DEFAULT. THE ALLEGATIONS AGAINST YOU WILL BE DEEMED ADMITTED AND AN ORDER ENFORCING THE ACTION WILL BE ENTERED BY THE BOARD.”

(e) [(f)] A motion to vacate a default judgment rendered by the ALJ must be filed within 10 days of the service of notice of the default judgment.

519.71. Exceptions and Replies.

(a) Exceptions to the PFD and any replies to exceptions must be in the form prescribed and filed within the time specified in SOAH’s rules.

[(b) The form of exceptions and replies is governed by SOAH’s rules.]

(b) [(c)] Each exception or reply to a finding of fact or conclusion of law shall be concisely stated and shall summarize the evidence in support thereof. Arguments shall be logical and citations to authorities shall be complete.

(c) [(d)] Any party may request oral argument before the board after service of the PFD and disposition of the exceptions, if any, and before the board’s final determination of the matter. The written request for oral argument must be filed with the board’s executive director no later than 5:00 p.m. on the twentieth day prior to the board meeting at which the matter is to be considered. The presiding officer may waive the twenty day notice requirement if such action would best serve the public interest. Oral argument is allowed only at the discretion of the board. In the event oral argument is granted by the board, each party will be notified of the time and place of the argument and the amount of time allotted for the presentation. Only one spokesman per party and position will be allowed to speak. At the conclusion of the presentation, board members may ask questions of the person who made the presentation. Under no circumstances may any party making oral argument to the board refer to or urge reliance on materials that are not part of the administrative record.

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