1. (a) The board may deny a candidate's application to take the CPA exam for a period not to exceed five years from the date of application, and shall not issue the CPA certificate, or issue an initial license, or renew a license, and shall revoke a current license, if the board finds that the applicant or licensee has been convicted of a felony offense or upon revocation of applicant's or licensee's felony probation, parole, or mandatory supervision.

2. (b) The board may deny a candidates' application to take the CPA exam, the application to issue the CPA certificate, or the application to issue an initial license, if the board finds that the individual applying has been convicted of a felony or misdemeanor offense which directly relates to the practice of public accountancy. In determining whether the felony or misdemeanor conviction directly relates to such duties and responsibilities, the board shall consider:

   1. (1) the nature and seriousness of the crime;
   2. (2) the relationship of the crime to the board's statutory responsibility to ensure that persons professing to practice public accountancy maintain high standards of competence and integrity in light of the reliance of the public, and the business community in particular, on the reports and other services;
   3. (3) the extent to which a license to practice public accountancy might offer an opportunity to engage in further criminal activity of the same type as that in which the person was previously involved;
   4. (4) the relationship of the crime to the ability, capacity, or fitness required to perform the duties and discharge the responsibilities of a certified public accountant or public accountant;
   5. (5) fraud or dishonesty as an element of the offense; and
   6. (6) all conduct indicating a lack of fitness to serve the public as a professional accountant.
3. (c) In addition to the factors stated in subsection (b) of this section, the board shall consider Section 53.023 (Texas Occupations Code) in determining the present fitness of a candidate who has been convicted of a crime.

4. (d) Because an accountant 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 reports and other services of accountants, the Texas State Board of Public Accountancy considers that the following crimes directly relate to the practice of public accountancy:

   1. (1) any felony or misdemeanor of which fraud or deceit is an essential element;
   2. (2) any felony or misdemeanor conviction which results in the suspension or revocation of the right to practice before any state or federal agency for a cause which in the opinion of the board warrants its action; and
   3. (3) any crime involving moral turpitude.

5. (e) The following procedures shall apply in the processing of an application to take the uniform CPA examination.

   1. (1) The candidate will be asked to respond, under penalty of perjury, to the question if he or she has ever been convicted of a felony or misdemeanor.
   2. (2) The board may submit identifying information to the Texas Department of Public Safety and or other appropriate agencies on board letterhead requesting conviction records on all candidates about whom the executive director finds evidence to warrant a record search.
   3. (3) The board will review the conviction records of candidates and will approve or disapprove applications as the evidence warrants. If the requested information is not provided by the Texas Department of Public Safety and or other appropriate agencies at least 10 days prior to the examination, a candidate may be permitted to take the uniform CPA examination, with his or her scores subject to being voided. A candidate may have his or her scores voided or may be denied the opportunity to take the uniform CPA examination on the basis of a prior conviction pursuant to a hearing as provided for in the Act.
   4. (4) The examination eligibility fee of a candidate whose application to take the CPA examination has been denied under this section or §511.70 of this title (relating to Grounds for Disciplinary Action of Candidates) and who has not taken any portion of the examination will be refunded.
6. (f) A candidate that has not been permitted to sit for the CPA exam as a result of having been convicted of a felony offense must provide evidence of rehabilitation as the board may request.

7. (g) The following procedure shall apply in the processing of an application for issuance of the CPA certificate.

   1. (1) The individual will be asked to respond, under penalty of perjury, to the question if he or she has ever been convicted of a felony or misdemeanor.
   2. (2) The board may submit identifying information to the Texas Department of Public Safety and or other appropriate agencies on board letterhead requesting conviction records on individual requesting issuance of the CPA certificate.
   3. (3) The board will review the individual applications and the conviction records of applicants and will approve or disapprove applications as the evidence warrants. No CPA certificate or initial license may be issued to an individual whose application for a CPA certificate has been denied. The board may disqualify a person from receiving a CPA certificate or initial license on the basis of a prior conviction pursuant to a hearing as provided for in the Act.

Source Note:The provisions of this §525.1 adopted to be effective February 25, 1987, 12 TexReg 502; amended to be effective February 29, 2000, 25 TexReg 1630; amended to be effective December 3, 2003, 28 TexReg 10764; amended to be effective February 17, 2008, 33 TexReg 1117.