A licensee shall complete at least 120 hours of CPE in each three-year period, and a minimum of 20 hours in each one-year period. CPE, except as provided by board rule shall be offered by board contracted CPE sponsors. The exception to this requirement is an initial licensee, one who has been certified or registered for less than 12 months.

1. (1) The exception to the requirement of 120 hours of CPE is an initial licensee, one who is paying the license fee for the first time.

   1. (A) To be issued a license that is less than twelve months from the date of certification or registration, the licensee does not have a CPE hour requirement. The first license period begins on the date of certification and ends with the last day of the licensee's birth month.
   2. (B) To be issued a license for the first full twelve-month license period, the licensee does not have a CPE accrual requirement and can report zero hours. CPE earned prior to the first twelve month license period will not be applied toward the three year requirement.
   3. (C) To be issued a license for the second full twelve-month period, the licensee must report a minimum of 20 CPE hours. The hours must be accrued in the 12 months preceding the license period.
   4. (D) To be issued a license for the third full twelve-month license period, the licensee must report a total of at least 60 CPE hours that were accrued in the 24 months preceding the license period. At least 20 hours of the requirement must be accrued in the 12 months preceding the license period.
   5. (E) To be issued a license for the fourth full twelve-month period, the licensee must report 100 CPE hours that were accrued in the 36 months preceding the license period. At least 20 hours of the requirement must be accrued in the 12 months preceding the license period.
   6. (F) To be issued a license for the fifth and subsequent license periods, the licensee must report a total of at least 120 CPE hours that were accrued in the 36 months proceeding the license period, and at least 20 hours of the requirement must be accrued in the 12 months preceding the license period.
2. (2) A former licensee whose certificate or registration has been revoked for failure to pay the license fee and who makes application for reinstatement must pay the required fees and penalties and must accrue the minimum CPE credit hours missed.

3. (3) The board may consider granting an exemption from the CPE requirement on a case-by-case basis if:

   1. (A) a licensee completes and forwards to the board a sworn affidavit indicating that the licensee will not be employed during the period for which the exemption is requested. A licensee who has been granted this exemption and who re-enters the work force shall be required to report prior to re-entering the workforce a minimum of 40 CPE hours. Such CPE hours shall be accrued from the technical area as described in §523.103 and §523.130 of this title (relating to Standards for CPE Program Development and Ethics Course Requirements for Licensees);

   2. (B) a licensee completes and forwards to the board a sworn affidavit indicating no association with accounting work. The affidavit shall include, as a minimum, a brief description of the duties performed, job title, and verification by the licensee's immediate supervisor;

      1. (i) For purposes of this section, the term "association with accounting work" shall include the following:

         1. (I) working or supervising work performed in the areas of financial accounting and reporting; tax compliance, planning or advice; management advisory services; accounting information systems; treasury, finance, or audit; or
         2. (II) representing to the public, including an employer, that the licensee is a CPA or public accountant in connection with the sale of any services or products involving professional accounting services or professional accounting work, including such designation on a business card, letterhead, promotional brochure, advertisement, or office; or
         3. (III) offering testimony in a court of law purporting to have expertise in accounting and reporting, auditing, tax, or management services; or
         4. (IV) for purposes of making a determination as to whether the licensee fits one of the categories listed in this subclause and subclauses (I) - (III) of this clause, the questions shall be resolved in favor of including the work as an "association with accounting work."
      2. (ii) A licensee who has been granted this exemption and who loses the exemption shall accrue 40 CPE hours prior to re-entering the workforce. Such CPE hours shall be earned in the technical area as described in §523.103 and §523.130 of this title (relating to Standards for CPE Program Development and Ethics Course Requirements for Licensees).
   3. (C) a licensee not residing in Texas, who submits a sworn statement to the board that the licensee does not serve Texas clients from out of state;
   4. (D) a licensee shows reasons of health, certified by a medical doctor, that prevent compliance with the CPE requirement. A licensee must petition the board for the exemption and provide documentation that clearly establishes the period of disability and the resulting physical limitations;
   5. (E) a licensee is on extended active military duty during the period for which the exemption is requested, and files a copy of orders to active military duty with the board; or
   6. (F) a licensee shows reason which prevents compliance that is acceptable to the board.
4. (4) A licensee who has been granted the retired or disabled status under §515.8 of this title (relating to Retirement Status or Permanent Disability) is not required to report any CPE hours.
5. (5) A licensee who has been granted exemptions under paragraph (3)(B), (C), (D), and (F) of this rule and no longer qualifies for the exemption or has been granted retired or disabled status under §515.8 of this title and no longer qualifies for retired or disabled status shall be required to report a minimum of 40 CPE hours prior to re-entry into the workforce. Such CPE hours shall be earned in the technical area as described in §523.103 and §523.130 of this title (relating to Standards for CPE Program Development and Ethics Course Requirements for Licensees).

Source Note:The provisions of this §523.112 adopted to be effective April 7, 2004, 29 TexReg 3477; amended to be effective October 12, 2004, 29 TexReg 9538; amended to be effective October 13, 2005, 30 TexReg 6434; amended to be effective April 12, 2006, 31 TexReg 3032; amended to be effective February 17, 2008, 33 TexReg 1109.