(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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Source Note: The provisions of this §501.91 adopted to be effective June 11, 2000, 25 TexReg 5341; amended to be effective February 4, 2004, 29 TexReg 964; amended to be effective February 17, 2008, 33 TexReg 1098; amended to be effective December 8, 2010, 35 TexReg 10694; amended to be effective December 7, 2011, 36 TexReg 8237; amended to be effective October 12, 2016, 41 TexReg 8068; amended to be effective October 10, 2019, 44 TexReg 5779; amended to be effective February 5, 2020, 45 TexReg 760 |