By: McCall (Senate Sponsor - Williams) H.B. No. 2440

(In the Senate - Received from the House April 27, 2009; April 27, 2009, read first time and referred to Committee on Higher Education; May 12, 2009, reported favorably by the following vote: Yeas 5, Nays 0; May 12, 2009, sent to printer.)

A BILL TO BE ENTITLED

AN ACT

relating to scholarships for fifth-year accounting students.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 901.155, Occupations Code, is amended to read as follows:

Sec. 901.155. SCHOLARSHIP TRUST FUND [ACCOUNT] FOR FIFTH-YEAR ACCOUNTING STUDENTS. (a) The fee for the issuance or renewal of a license under this chapter is the amount of the fee set by the board under Section 901.154 together with the fee increase imposed under Section 901.406 and an additional $10 annual [$20] fee to be deposited to the credit of the scholarship trust fund [account] for fifth-year accounting students [in the general revenue fund].

(b) The scholarship trust fund [account] for fifth-year accounting students is held by the board outside the state treasury and may be used only to:

(1) provide scholarships under Subchapter N[, Chapter 61, Education Code,] to accounting students in the fifth year of a program designed to qualify each student to apply for certification as a certified public accountant; and

(2) pay administrative costs under Subsection (c).

(c) The administrative costs incurred to collect the fee imposed under Subsection (a) and to disburse the money may not exceed 10 [15] percent of the total money collected[, with 10 percent of the money allocated to the Texas Higher Education Coordinating Board and five percent of the money allocated to the board].

(d) Notwithstanding Section 404.071, Government Code, interest earned on amounts in the scholarship trust fund [account] for fifth-year accounting students shall be credited to that fund [account].

SECTION 2. Subchapter N, Chapter 61, Education Code, is transferred to Chapter 901, Occupations Code, designated as Subchapter N, Chapter 901, Occupations Code, and amended to read as follows:

SUBCHAPTER N. SCHOLARSHIPS FOR FIFTH-YEAR ACCOUNTING STUDENTS

Sec. 901.651 [61.751]. DEFINITION. In this subchapter, "fifth-year accounting student" means a student enrolled in the additional hours of study required by Section 901.254 [12(e)(2)(B), Public Accountancy Act of 1991 (Article 41a-1, Vernon's Texas Civil Statutes)].

Sec. 901.652 [61.752]. PUBLIC PURPOSE. The scholarships required by this subchapter serve a public purpose of the state as described by Section 901.155 [32, Public Accountancy Act of 1991 (Article 41a-1, Vernon's Texas Civil Statutes)].

Sec. 901.653 [61.753]. SCHOLARSHIPS. The board shall establish and administer, using funds collected and appropriated for that purpose and in accordance with this subchapter and board rules, scholarships for fifth-year accounting students.

Sec. 901.654 [61.754]. FACTORS. (a) Scholarships shall be established and administered in a manner that the board determines best serves the public purpose of the scholarships.

(b) In determining what best promotes the public purpose, the board shall consider at a minimum the following factors relating to each person applying for a scholarship under this section:

(1) financial need;

(2) ethnic or racial minority status; and

(3) scholastic ability and performance.

Sec. 901.655 [61.755]. RULES. (a) The board shall adopt rules as necessary for the administration of this subchapter.

(b) The board shall adopt rules relating to the establishment of the scholarships under Section 901.653 [61.753 of this code], including rules providing eligibility criteria and the determination of the amount of each scholarship.

Sec. 901.656 [61.756]. SCHOLARSHIP REGULATIONS. (a) The board, in consultation with the advisory committee appointed under Section 901.657 [61.757], shall determine the maximum amount of any scholarship awarded under this subchapter. The scholarship may be spent by the recipient on the expenses for tuition, fees, books, supplies, and living expenses incurred by the student in connection with the student's fifth year of an accounting program. Scholarships shall be made available to eligible students attending:

(1) any institution of higher education; or

(2) any nonprofit independent institution approved by the Texas Higher Education Coordinating Board [board] under Section 61.222, Education Code.

(b) The board may award a scholarship under this subchapter only to an eligible student who intends to take the written examination conducted by the board [Texas State Board of Public Accountancy] for the purpose of granting a certificate of "certified public accountant." An applicant for a scholarship under this subchapter shall state such an intent by filing a form provided by the board stating an intent to take the examination.

(c) A scholarship under this subchapter shall be paid to the recipient in the form of periodic partial payments throughout the school year. The board by rule shall determine the manner in which these payments are made.

Sec. 901.657 [61.757]. ADVISORY COMMITTEE. (a) The board shall appoint an eight-member advisory committee to advise the board concerning scholarships provided under this subchapter. The advisory committee consists of:

(1) a presiding officer named by the board;

(2) one representative named by the board [Texas State Board of Public Accountancy];

(3) one representative named by the Texas Society of Certified Public Accountants;

(4) a Texas representative of the American Accounting Association named by that organization;

(5) one representative named by the National Association of Black Accountants;

(6) one representative named by the American Association of Hispanic Certified Public Accountants; and

(7) two representatives named by the Texas Higher Education Coordinating Board [board] who are the chairmen of accounting departments at Texas colleges and universities, at least one of whom must be a representative of a private college or university and at least one other of whom must be a representative from a college or university that primarily serves minority students.

(b) The costs of participation on an advisory committee of a member representing a particular organization or agency shall be borne by that member of the organization or agency the member represents.

(c) In addition to any other duties assigned by the board, the advisory committee specifically shall advise the board on:

(1) how the scholarships provided for under this subchapter should be established and administered to best promote the public purpose of the scholarships;

(2) the amount of money needed to adequately fund the scholarships and the maximum amount that may be awarded in any given year to an individual student; and

(3) any priorities among the factors identified by Section 901.654 [61.754].

Sec. 901.658 [61.758]. FUNDING. The board may:

(1) use without appropriation, in accordance with Article 8930, Revised Statutes, this subchapter, and Section 901.155 [32, Public Accountancy Act of 1991 (Article 41a-1, Vernon's Texas Civil Statutes)], any money [appropriated to it] from the trust fund established under Section 901.155 [by that section]; and

(2) accept gifts, grants, and donations of real or personal property from any entity, subject to limitations or conditions set by law, for the purposes of this subchapter.

Sec. 901.659 [61.760]. MINORITY AND DISADVANTAGED STUDENT INTERNSHIPS. (a) The board shall adopt rules to encourage internships for minority and disadvantaged students and certified public accountant examination candidates who notify the board not later than 90 days after the date of being accepted into an accounting internship program.

(b) The rules adopted by the board shall include standards for appropriate recognition of an accounting firm for its efforts in training and hiring minority or disadvantaged students.

SECTION 3. Section 61.081, Education Code, is transferred to Subchapter N, Chapter 901, Occupations Code, as added by this Act, redesignated as Section 901.660, Occupations Code, and amended to read as follows:

Sec. 901.660 [61.081]. REPORT ON ACCOUNTANT SCHOLARSHIP PROGRAM. (a) Before January 15 of each odd-numbered year, the board shall report to the legislature concerning the scholarship program for fifth-year accounting students administered by the board under [Subchapter N, Chapter 61, of] this subchapter [code].

(b) The report expenses shall be included in the administrative costs allocated to the board under Section 901.155 [32(e) of this code]. The report must include:

(1) the number and amount of scholarships awarded in the two calendar years preceding the year in which the report is due; and

(2) the number of minority students, by racial or ethnic background, who have been awarded scholarships under the program in that two-year period.

SECTION 4. (a) Not later than January 1, 2010, the Texas State Board of Public Accountancy shall adopt the rules required to implement Subchapter N, Chapter 901, Occupations Code, as added by this Act.

(b) On the effective date of this Act, the Texas Higher Education Coordinating Board shall transfer to the Texas State Board of Public Accountancy for deposit in the scholarship trust fund established under Subchapter N, Chapter 901, Occupations Code, as added by this Act, any money in the general revenue account 0106--scholarship fund for fifth year accounting students, and any money appropriated to the Texas Higher Education Coordinating Board for scholarships to fifth-year accounting students under Subchapter N, Chapter 61, Education Code, as that subchapter existed before the effective date of this Act, that has not been allocated to institutions of higher education for making awards to students during the 2009-2010 academic year under that scholarship program.

SECTION 5. This Act takes effect September 1, 2009.

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