Unless otherwise determined by the board, the following are reasons why a person is not authorized to take the examination.

1. (1) The board shall not authorize a person to take the examination if the board finds the individual has been convicted of a felony offense which results in incarceration, probation, parole, mandatory supervision, or deferred adjudication.
2. (2) The board shall not authorize a person to take the examination if the board finds that the individual has been convicted of a felony or misdemeanor offense, or granted a deferred adjudication which directly relates to the practice of public accountancy.

3. (3) A person applying for the examination who can be identified in paragraphs (1) or (2) of this section has the right to a hearing before the board to present evidence relative to the conviction. As a part of the hearing, the board shall consider the following issues before reaching a verdict:

   1. (A) the nature and seriousness of the crime;
   2. (B) the relationship of the crime to the board's statutory responsibility to ensure that a person, at some point in the future, professing to practice public accountancy, maintains high standards of competence and integrity in light of the reliance of the public, and the business community in particular, on the report or other services provided by accountants;
   3. (C) the extent to which the person might have an opportunity to engage in future criminal activity of the same type as that in which the individual was previously involved;
   4. (D) the relationship of the crime to the ability, capacity, or fitness required to perform the duties and discharge the responsibilities of a certified public accountant, once the person passes the examination and is licensed by the board;
   5. (E) the extent and nature of the individual's past criminal activity;
   6. (F) the age of the individual at the time of the commission of the offense;
   7. (G) the amount of time which has elapsed since the individual's last criminal activity;
   8. (H) the conduct and work activity of the individual prior to and following the criminal activity;
   9. (I) evidence of the individual's rehabilitation or rehabilitative effort while incarcerated or following release;
   10. (J) other evidence of the individual's present fitness, including letters or recommendation from prosecution, law enforcement, and correction officers who prosecuted, arrested, or had custodial responsibility for the individual; the sheriff and chief of police in the area where the individual resides; and any other persons in contact with the individual. It shall be the responsibility of the individual to the extent possible to secure and provide to the board the recommendation of the prosecution, law enforcement, and correctional authorities as required under this section. The individual shall also furnish proof to the board that he/she has maintained a record of steady employment and has supported his/her dependents and has otherwise maintained a record of good conduct and has paid all outstanding court costs, supervision fees, fines, and restitution as may have been ordered in all criminal cases in which he/she has been convicted.

4. (4) Because an accountant is often placed in a position of trust with respect to client funds, the public in general and the business community in particular rely on the reports and other services of accountants. The board considers that the following crimes directly relate to the practice of public accountancy:

   1. (A) any felony or misdemeanor of which fraud or deceit is an essential element;
   2. (B) any felony or misdemeanor which results in the suspension or revocation of the right to practice before any state or federal agency for a cause which in the opinion of the board warrants its action; and
   3. (C) any crime involving moral turpitude.

5. (5) The following procedures shall apply in the processing of an application to write the examination.

   1. (A) The applicant will be asked to respond, under penalty of perjury to the question, "Have you ever been convicted of a felony or a misdemeanor, placed on probation, or granted deferred adjudication in any state or by federal government?"
   2. (B) The board shall obtain criminal history record information as stipulated in this chapter on any applicant about whom the executive director finds evidence to warrant a record search.
   3. (C) The board will review the application, statements made by the applicant relating to criminal activity, criminal history record information, and will approve or disapprove the application as the evidence warrants. All applications disapproved under these conditions shall be scheduled for a hearing.

Source Note:The provisions of this §511.106 adopted to be effective November 1, 1989, 14 TexReg 5551; amended to be effective December 15, 1993, 18 TexReg 8912; amended to be effective December 20, 1995, 20 TexReg 10269.