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TITLE 22EXAMINING BOARDS
PART 22TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY
CHAPTER 519PRACTICE AND PROCEDURE
SUBCHAPTER AGENERAL PROVISIONS
RULE §519.7Criminal 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;

    (C) Illegal Divulgence of Public 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; and

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

  (2) moral turpitude:

    (A) Public Lewdness;

    (B) Indecent Exposure;

    (C) Enticing a Child;

    (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;

    (C) Terroristic Threat; and

    (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 misdemeanor has an equivalency to Texas law prior to opening a complaint investigation.


Source Note: The provisions of this §519.7 adopted to be effective June 9, 2004, 29 TexReg 5628; amended to be effective June 7, 2006, 31 TexReg 4646; amended to be effective October 15, 2008, 33 TexReg 8518; amended to be effective December 8, 2010, 35 TexReg 10694; amended to be effective February 9, 2012, 37 TexReg 491; amended to be effective December 7, 2016, 41 TexReg 9512; amended to be effective December 6, 2017, 42 TexReg 6797; amended to be effective December 4, 2019, 44 TexReg 7391

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