1. (a) To qualify for the issuance of a CPA certificate, an applicant must hold at a minimum a baccalaureate degree, conferred by a board-recognized institution of higher education as defined by §511.52 of this chapter (relating to Recognized Institutions of Higher Education), and have completed the board-recognized coursework identified in this section:

   1. (1) no fewer than 27 semester hours or quarter-hour equivalents of upper level accounting courses as defined by §511.57 of this chapter (relating to Qualified Accounting Courses to take the UCPAE) or §511.60 of this chapter (relating to Qualified Accounting Courses Prior to January 1, 2024 to take the UCPAE);
   2. (2) no fewer than 24 semester hours or quarter-hour equivalents of upper level related business courses, as defined by §511.58 of this chapter (relating to Definitions of Related Business Subjects to take the UCPAE);

   3. (3) a three semester hour board-approved standalone course in accounting or business ethics. The course must be taken at a recognized educational institution and should provide students with a framework of ethical reasoning, professional values, and attitudes for exercising professional skepticism and other behavior in the best interest of the public and profession. The ethics course shall:

      1. (A) include the ethics rules of the AICPA, the SEC, and the board;
      2. (B) provide a foundation for ethical reasoning, including the core values of integrity, objectivity, and independence; and
      3. (C) be taught by an instructor who has not been disciplined by the board for a violation of the board's rules of professional conduct, unless that violation has been waived by the board; and

   4. (4) academic coursework at an institution of higher education as defined by §511.52 of this chapter, when combined with paragraphs (1) - (3) of this subsection meets or exceeds 150 semester hours, of which 120 semester hours meets the education requirements defined by §511.59 of this chapter (relating to Definition of 120 Semester Hours to take the UCPAE). An applicant who has met paragraphs (1) - (3) of this subsection may use a maximum of 9 total semester credit hours of undergraduate or graduate independent study and/or internships as defined in §511.51(b)(4) or §511.51(b)(5) of this chapter (relating to Educational Definitions) to meet this paragraph. The courses shall consist of:

      1. (A) a maximum of three semester credit hours of independent study courses; and
      2. (B) a maximum of six semester credit hours of accounting/business course internships.

2. (b) The following courses, courses of study, certificates, and programs may not be used to meet the 150 semester hour requirement:

   1. (1) any CPA review course offered by an institution of higher education or a proprietary organization;
   2. (2) remedial or developmental courses offered at an educational institution; and

   3. (3) credits awarded for coursework taken through the following organizations and shown on a transcript from an institution of higher education may not be used to meet the requirement of this chapter:

      1. (A) American College Education (ACE);
      2. (B) Prior Learning Assessment (PLA);
      3. (C) Defense Activity for Non-Traditional Education Support (DANTES); and
      4. (D) Defense Subject Standardized Test (DSST).
3. (c) The hours from a course that has been repeated will be counted only once toward the required semester hours.

Source Note:The provisions of this §511.164 adopted to be effective October 4, 2023, 48 TexReg 5666.