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79R13556 HLT-F
By: Chisum H.B. No. 2842
Substitute the following for H.B. No. 2842:
By: Miller C.S.H.B. No. 2842
A BILL TO BE ENTITLED
AN ACT
relating to the provision of false information to an independent
public accounting firm by a public interest entity; providing a
criminal penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 32, Penal Code, is amended
by adding Section 32.52 to read as follows:
Sec. 32.52. PROVIDING FALSE INFORMATION TO AN INDEPENDENT
PUBLIC ACCOUNTING FIRM. (a) In this section:
(1) "Financial institution" means a bank, savings
association, savings bank, or credit union maintaining an office,
branch, or agency office in this state.
(2) "Insurer" means a person who engages in the
business of insurance in this state, including:
(A) an insurer that is not authorized to do
business in this state;
(B) a person described by Section 82.002(a),
Insurance Code; and
(C) a person who self-insures and provides health
care benefits or workers' compensation benefits to the person's
employees.
(3) "Issuer" has the meaning assigned by 15 U.S.C.
Section 7201.
(4) "Public interest entity" means:
(A) a financial institution;
(B) an insurer;
(C) an issuer;
(D) a county hospital;
(E) a pension plan;
(F) a school district; or
(G) a municipality.
(b) An officer or director of a public interest entity, or
another person designated by the officer or director to provide
information to an independent public accounting firm, commits an
offense if the person:
(1) takes any action to fraudulently influence,
coerce, manipulate, or mislead the accounting firm engaged in the
performance of an audit of the financial statements of the public
interest entity for the purpose of rendering the financial
statements materially misleading;
(2) fraudulently communicates or causes to be
communicated information to the accounting firm that the person
knew or should have known was false at the time the information was
communicated; or
(3) fraudulently fails to promptly notify the
accounting firm and provide the correct information if the person
learns that information that was correct at the time the
information was communicated to the accounting firm is no longer
correct.
(c) An offense under this section is a:
(1) state jail felony if it is shown on the trial of
the offense that the violation resulted in a monetary loss of less
than $10,000 or did not result in a monetary loss;
(2) felony of the third degree if it is shown on the
trial of the offense that the violation resulted in a monetary loss
of at least $10,000 but less than $100,000;
(3) felony of the second degree if it is shown on the
trial of the offense that the violation resulted in a monetary loss
of at least $100,000 but less than $1 million; or
(4) felony of the first degree if it is shown on the
trial of the offense that the violation resulted in a monetary loss
of at least $1 million.
SECTION 2. This Act takes effect September 1, 2005.