H.B. No. 2217
 
 
 
 
AN ACT
  relating to the regulation of the practice of public accountancy.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 901.002(a)(7), Occupations Code, is
  amended to read as follows:
               (7)  "Corporation" has the meaning assigned by Section
  1.002, Business Organizations Code. The term includes an entity
  [means a corporation] authorized by [a statute applicable to this
  state or by] an equivalent law of another state or a foreign country
  [, including a professional public accounting corporation
  organized under The Texas Professional Corporation Act (Article
  1528e, Vernon's Texas Civil Statutes)].
         SECTION 2.  Section 901.155, Occupations Code, is amended to
  read as follows:
         Sec. 901.155.  SCHOLARSHIP TRUST FUND FOR [FIFTH-YEAR]
  ACCOUNTING STUDENTS.  (a)  The fee for the issuance or renewal of a
  license under this chapter consists of:
               (1)  the amount of the fee set by the board under
  Section 901.154; and
               (2)  an additional $10 annual fee to be deposited to the
  credit of the scholarship trust fund for [fifth-year] accounting
  students.
         (b)  The scholarship trust fund 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 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)(2) and to disburse the money may not
  exceed 10 percent of the total money collected.
         (d)  Notwithstanding Section 404.071, Government Code,
  interest earned on amounts in the scholarship trust fund for
  [fifth-year] accounting students shall be credited to that fund.
         SECTION 3.  Section 901.252, Occupations Code, is amended to
  read as follows:
         Sec. 901.252.  ELIGIBILITY REQUIREMENTS. To be eligible to
  receive a certificate, a person must:
               (1)  satisfy the requirements of Section 901.253;
               (2)  meet the education requirements established under
  Section 901.254 [or 901.255];
               (3)  pass the uniform CPA examination;
               (4)  meet the work experience requirements established
  under Section 901.256; and
               (5)  pass an examination on the rules of professional
  conduct as determined by board rule.
         SECTION 4.  Section 901.304(a), Occupations Code, is amended
  to read as follows:
         (a)  For each examination or reexamination, the board by rule
  shall apportion an amount of the total examination fee among the
  parts of the examination that an applicant is eligible to take on a
  particular examination date. For each examination or
  reexamination, the board shall collect from each applicant a fee
  set by board rule not to exceed the cost of administering the parts
  of the examination that the applicant is eligible to take.
         SECTION 5.  The heading to Section 901.310, Occupations
  Code, is amended to read as follows:
         Sec. 901.310.  PASSAGE OF [CONDITIONAL] EXAMINATION
  [CREDIT].
         SECTION 6.  Section 901.310(c), Occupations Code, is amended
  to read as follows:
         (c)  The board shall consider a person to have passed an
  examination if the person receives credit for each subject within
  the time prescribed by the board [by receiving conditional credit
  after September 1, 1989, and passing the remaining subjects within
  the six consecutive examinations following the examination for
  which the person receives conditional credit].
         SECTION 7.  Section 901.311, Occupations Code, is amended to
  read as follows:
         Sec. 901.311.  RESTRUCTURE OF EXAMINATION. On the
  restructuring of [If] the uniform CPA examination [is
  restructured], the board by rule shall determine the manner in
  which credit for a subject is integrated into the new structure.
         SECTION 8.  Section 901.355(a), Occupations Code, is amended
  to read as follows:
         (a)  The holder of a certificate, license, or degree
  authorizing the person to practice public accountancy in a foreign
  country who on or before September 1, 2023, registered [may
  register] with the board as the holder of a certificate, license, or
  degree issued by the foreign country may continue to practice in
  this state under that registration for as long as the person stays
  in compliance with the provisions of this chapter and board rules
  applicable to the person[, if the board determines that the
  standards under which the applicant was certified or otherwise
  authorized to practice public accountancy were at least as high as
  the standards of this state at the time that authority was granted].
         SECTION 9.  Section 901.404, Occupations Code, is amended to
  read as follows:
         Sec. 901.404.  NOTICE OF LICENSE EXPIRATION. (a) Not later
  than the 30th day before the expiration date of a person's license,
  the board shall send written or electronic notice of the impending
  license expiration to the person at the person's last known address
  or e-mail address according to the board's records.
         (b)  The board shall determine the amount of the renewal fee
  and shall provide written or electronic [mail] notice of that
  amount to the person within the time provided by Subsection (a).
         SECTION 10.  The heading to Section 901.457, Occupations
  Code, is amended to read as follows:
         Sec. 901.457.  ACCOUNTANT-CLIENT CONFIDENTIALITY
  [PRIVILEGE].
         SECTION 11.  The heading to Subchapter N, Chapter 901,
  Occupations Code, is amended to read as follows:
  SUBCHAPTER N.  SCHOLARSHIPS FOR [FIFTH-YEAR] ACCOUNTING STUDENTS
         SECTION 12.  Section 901.653, Occupations Code, is amended
  to read as follows:
         Sec. 901.653.  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.
         SECTION 13.  Section 901.654(b), Occupations Code, is
  amended to read as follows:
         (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 in at least 15
  hours of upper-level accounting coursework.
         SECTION 14.  Sections 901.656(a) and (b), Occupations Code,
  are amended to read as follows:
         (a)  The board 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 accounting student in
  connection with the student's study in [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 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 uniform CPA
  [written] examination conducted by the board 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.
         SECTION 15.  Section 901.660(a), Occupations Code, is
  amended to read as follows:
         (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 this subchapter.
         SECTION 16.  Section 33.01(15-a), Penal Code, is amended to
  read as follows:
               (15-a)  "Privileged information" means:
                     (A)  protected health information, as that term is
  defined by Section 182.002, Health and Safety Code;
                     (B)  information that is subject to the
  attorney-client privilege; or
                     (C)  information that is subject to [the]
  accountant-client confidentiality [privilege] under Section
  901.457, Occupations Code, or other law, if the information is on a
  computer, computer network, or computer system owned by a person
  possessing a license issued under Subchapter H, Chapter 901,
  Occupations Code.
         SECTION 17.  The following provisions of the Occupations
  Code are repealed:
               (1)  Section 901.054(b);
               (2)  Section 901.255;
               (3)  Sections 901.310(a) and (b);
               (4)  Sections 901.355(b) and (c); and
               (5)  Section 901.651.
         SECTION 18.  The Texas State Board of Public Accountancy
  shall adopt rules necessary to implement the changes in law made by
  this Act not later than October 1, 2023.
         SECTION 19.  This Act takes effect immediately if it
  receives a vote of two-thirds of all the members elected to each
  house, as provided by Section 39, Article III, Texas Constitution.  
  If this Act does not receive the vote necessary for immediate
  effect, this Act takes effect September 1, 2023.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2217 was passed by the House on April
  20, 2023, by the following vote:  Yeas 145, Nays 0, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 2217 on May 17, 2023, by the following vote:  Yeas 136, Nays 5,
  1 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 2217 was passed by the Senate, with
  amendments, on May 15, 2023, by the following vote:  Yeas 31, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor