1. (a) Final conviction or placement on deferred adjudication, deferred prosecution, withheld adjudication or community supervision in connection with misdemeanors that involve dishonesty or fraud may subject a certificate or registration holder to disciplinary action pursuant to §501.90 of this title (relating to Discreditable Acts). Because a certificate or registration holder is often placed in a position of trust with respect to client funds, and the public in general, and the business community in particular, rely on the veracity, integrity and honesty of certificate or registration holders in the preparation of reports and provision of other accounting services, the board considers conviction or placement on deferred adjudication, deferred prosecution, withheld adjudication or community supervision for any crime involving dishonesty or fraud to relate directly to the practice of public accountancy and may subject the certificate or registration holder to discipline by the board. The board has determined that misdemeanor offenses that involve dishonesty or fraud directly relate to the practice of accounting pursuant to Sections 53.021, 53.022, 53.023 and 53.025 of the Occupations Code. The following non-exclusive list of misdemeanor offenses may involve dishonesty or fraud:

   1. (1) Theft;
   2. (2) Theft of Service;
   3. (3) Tampering with Identification Numbers;
   4. (4) Theft of or Tampering with Multichannel Video or Information Services;
   5. (5) Manufacture, Distribution, or Advertisement of Multichannel Video or Information Services Device;
   6. (6) Sale or Lease of Multichannel Video or Information Services Device;
   7. (7) Possession, Manufacture, or Distribution of Certain Instruments Used to Commit Retail Theft;
   8. (8) Forgery;
   9. (9) Criminal Simulation;
   10. (10) Trademark Counterfeiting;
   11. (11) Stealing or Receiving Stolen Check or Similar Sight Order;
   12. (12) False Statement to Obtain Property or Credit;
   13. (13) Hindering Secured Creditors;
   14. (14) Credit Card Transaction Record Laundering;
   15. (15) Issuance of Bad Check;
   16. (16) Deceptive Business Practices;
   17. (17) Rigging Publicly Exhibited Contest;
   18. (18) Misapplication of Fiduciary Property or Property of Financial Institution;
   19. (19) Securing Execution of Document by Deception;
   20. (20) Fraudulent Destruction, Removal, or Concealment of Writing;
   21. (21) Simulating Legal Process;
   22. (22) Refusal to Execute Release of Fraudulent Lien or Claim;
   23. (23) Breach of Computer Security;
   24. (24) Unauthorized Use of Telecommunications Service;
   25. (25) Theft of Telecommunications Service;
   26. (26) Publication of Telecommunications Access Device;
   27. (27) Insurance Fraud;
   28. (28) False Alarm or Report;
   29. (29) Engaging in Organized Criminal Activity;
   30. (30) Violation of Court Order Enjoining Organized Criminal Activity;
   31. (31) Unlawful Use of Criminal Instrument;
   32. (32) Unlawful Access to Stored Communications;
   33. (33) Burglary of Vehicles;
   34. (34) Burglary of Coin-Operated or Coin Collection Machines;
   35. (35) Coercion of Public Servant or Voter;
   36. (36) Improper Influence;
   37. (37) Gift to Public Servant by Person Subject to His Jurisdiction;
   38. (38) Offering Gift to Public Servant;
   39. (39) Perjury;
   40. (40) False Report to Peace Officer or Law Enforcement Employee;
   41. (41) Tampering With or Fabricating Physical Evidence;
   42. (42) Tampering With Governmental Record;
   43. (43) Fraudulent Filing of Financing Statement;
   44. (44) False Identification as Peace Officer;
   45. (45) Misrepresentation of Property;
   46. (46) Record of a Fraudulent Court; and
   47. (47) Bail Jumping and Failure to Appear.

2. (b) Final conviction or placement on deferred adjudication, deferred prosecution, withheld adjudication or community supervision in connection with misdemeanors that involve moral turpitude may subject a certificate or registration holder to disciplinary action pursuant to §501.90 of this title (relating to Discreditable Acts). Because a certificate or registration holder is often placed in a position of trust with respect to client funds, and the public in general, and the business community in particular, rely on the veracity, integrity and honesty of certificate or registration holders in the preparation of reports and provision of other accounting services, the board considers conviction or placement on deferred adjudication, deferred prosecution, withheld adjudication or community supervision for any crime involving moral turpitude to relate directly to the practice of public accountancy and may subject the certificate or registration holder to discipline by the board. The board has determined that misdemeanor offenses that involve moral turpitude directly relate to the practice of accounting pursuant to Sections 53.021, 53.022, 53.023 and 53.025 of the Occupations Code. The following non-exclusive list of misdemeanor offenses may involve moral turpitude:

   1. (1) Prostitution;
   2. (2) Promotion of Prostitution;
   3. (3) Indecent Exposure;
   4. (4) Public Lewdness;
   5. (5) Obscenity;
   6. (6) Obscene Display or Distribution;
   7. (7) Sale, Distribution, or Display of Harmful Material to Minor;
   8. (8) Employment Harmful to Children; and
   9. (9) Abuse of a Corpse.

3. (c) Final conviction or placement on deferred adjudication, deferred prosecution, withheld adjudication or community supervision in connection with misdemeanors that involve alcohol abuse or controlled substances may subject a certificate or registration holder to disciplinary action pursuant to §501.90 of this title (relating to Discreditable Acts). Because a certificate or registration holder is often placed in a position of trust with respect to client funds, and the public in general, and the business community in particular, rely on the veracity, integrity and honesty of certificate or registration holders in the preparation of reports and provision of other accounting services, the board considers conviction or placement on deferred adjudication, deferred prosecution, withheld adjudication or community supervision for any crime involving alcohol abuse or controlled substances to relate directly to the practice of public accountancy and may subject a certificate or registration holder to discipline by the board. The board has determined that misdemeanor offenses that involve alcohol abuse or controlled substances directly relate to the practice of accounting pursuant to Sections 53.021, 53.022, 53.023 and 53.025 of the Occupations Code. The following non-exclusive list of misdemeanor offenses may involve alcohol abuse or controlled substances:

   1. (1) Possession of less than 28 grams of a controlled substance listed in penalty group 3 under the Texas Penal Code;
   2. (2) Possession of less than 28 grams of a controlled substance listed in penalty group 4 under the Texas Penal Code;
   3. (3) Manufacture, delivery or possession of a controlled substance listed in a schedule of controlled substances, but not listed in a penalty group under the Texas Penal Code;
   4. (4) Manufacture, delivery or possession of a controlled substance analogue;
   5. (5) Possession or delivery of marijuana;
   6. (6) Possession or delivery of drug paraphernalia;
   7. (7) Possession or transport of chemicals with the intent to manufacture a controlled substance; and
   8. (8) Any misdemeanor involving intoxication under the influence of alcohol or a controlled substance.

4. (d) Final conviction or placement on deferred adjudication, deferred prosecution, withheld adjudication or community supervision in connection with misdemeanors that involve physical injury or threats of physical injury to a person may subject a certificate or registration holder to disciplinary action pursuant to §501.90 of this title (relating to Discreditable Acts). Because certificate or registration holders regularly deal directly with clients and other members of the public during the performance of their professional duties, often under highly stressful conditions, the public in general, and the business community in particular, rely on the stability and integrity of certificate or registration holders in the provision of accounting services. The board considers conviction or placement on deferred adjudication, deferred prosecution, withheld adjudication or community supervision for any crime involving physical injury or threats of physical injury to a person to relate directly to the practice of public accountancy and may subject the certificate or registration holder to discipline by the board. The board has determined that misdemeanor offenses that involve physical injury or threats of physical injury to a person directly relate to the practice of accounting pursuant to Sections 53.021, 53.022, 53.023 and 53.025 of the Occupations Code. The following non-exclusive list of misdemeanor offenses may involve physical injury or threats of physical injury to a person:

   1. (1) Assault;
   2. (2) Sexual Assault;
   3. (3) Aggravated Sexual Assault;
   4. (4) Injury to a Child, Elderly Individual or Disabled Individual;
   5. (5) Abandoning or Endangering a Child;
   6. (6) Deadly Conduct;
   7. (7) Terroristic Threat;
   8. (8) Tampering with Consumer Products; and
   9. (9) Leaving a Child in a Vehicle.
5. (e) Because a certificate or registration holder is often placed in a position of trust with respect to client funds, and the public in general, and the business community in particular, rely on the veracity, integrity and honesty of certificate or registration holders in the preparation of reports and provision of other accounting services, the board considers repeated violations of any criminal law to relate directly to the practice of public accountancy.
6. (f) A conviction or placement on deferred adjudication, deferred prosecution, withheld adjudication or community supervision for a violation of any state or federal law that is equivalent to an offense listed in subsections (a) through (e) of this section is considered to directly relate to the practice of accounting and may subject a certificate or registration holder to discipline by the board.

Source Note:The provisions of this §519.7 adopted to be effective June 9, 2004, 29 TexReg 5628; amended to be effective June 7, 2006, 31 TexReg 4646; amended to be effective October 15, 2008, 33 TexReg 8518.