1. (a) The board may impose an administrative penalty alone or in addition to other sanctions permitted under the Act. Board committees and the executive director are delegated the authority to determine that any alleged violation warrants an administrative penalty under Subchapter L of the Public Accountancy Act.
2. (b) The report of any such determination may be included in a notice of hearing.
3. (c) A request for a hearing under §901.554 of the Public Accountancy Act shall clearly notify the staff that the hearing must address issues relevant to the assessment of an administrative penalty by including the language "RESPONDENT SPECIFICALLY REQUESTS A HEARING ON ADMINISTRATIVE PENALTIES" in capital letters. Failure to include such language shall be a waiver of the right to a hearing within the meaning of §901.554 of the Public Accountancy Act.

4. (d) Pursuant to §901.551 of the Public Accountancy Act:

   1. (1) the board imposes an administrative penalty on licensees who, in violation of §901.411 of the Public Accountancy Act:

      1. (A) do not complete at least 120 hours of continuing professional education in each three-year license period;
      2. (B) do not complete at least 20 hours in each one-year license period;
      3. (C) do not comply with board rules for the reporting of continuing professional education; or
      4. (D) fail to complete or report sufficient ethics hours as required by board §523.63 of this title (relating to Mandatory Continuing Professional Education Attendance).
   2. (2) considering the seriousness of violation of §901.411 of the Public Accountancy Act, the hazard and potential hazard to the public from CPAs who are not trained in current accounting standards and practices, the amount necessary to deter future violations, and such other matters as the board considers justice may require, the board sets the administrative penalty for the violations described in §519.7(d)(1) of this title (relating to Administrative Penalties) at a minimum of $100 per licensee per license period
   3. (3) the penalty may be assessed only on licensees against whom a final board order is issued.
5. (e) Administrative penalties collected by the board for disciplinary actions taken against licensees for any violation of the board's Rules of Professional Conduct, excluding §501.94 of this title (relating to Mandatory Continuing Professional Education), shall be transferred to the Scholarship Trust Fund for Fifth-Year Accounting Students to provide financial assistance to students intending to take the CPA exam.

Source Note:The provisions of this §519.8 adopted to be effective June 9, 2004, 29 TexReg 5628; amended to be effective December 7, 2011, 36 TexReg 8238.