1. (a) A firm which includes non-CPA owners may not qualify for a firm license unless every non-CPA owner of the firm:

   1. (1) is an individual;
   2. (2) is actively providing personal services in the nature of management of some portion of the firm's business interests or performing services for clients of the firm or an affiliated entity; and
   3. (3) is of good moral character as demonstrated by a lack of history of dishonest or felonious acts.

2. (b) Each of the non-CPA owners who are residents of the State of Texas must also:

   1. (1) pass an examination on the rules of professional conduct as determined by board rule;
   2. (2) comply with the rules of professional conduct;
   3. (3) maintain professional continuing education applicable to license holders including the Board approved ethics course as required by board rule;
   4. (4) hold a baccalaureate or graduate degree conferred by a college or university within the meaning of §511.52 of this title (pertaining to Recognized Colleges and Universities) or equivalent education as determined by the board; and
   5. (5) maintain any professional designation held by the individual in good standing with the appropriate organization or regulatory body that is identified or used in an advertisement, letterhead, business card, or other firm-related communication.
3. (c) A "Non-CPA Owner" includes any individual who has any financial interest in the firm or any voting rights in the firm.

Source Note:The provisions of this §513.11 adopted to be effective August 4, 2004, 29 TexReg 7307; amended to be effective August 17, 2008, 33 TexReg 6376.