1. (a) The board may prohibit an individual from taking the UCPAE, and may not issue the CPA certificate, or an initial license, for a period not to exceed five years from the date of the application, for an offense that does not directly relate to the duties and responsibilities of the practice of public accountancy when the conviction of the offense occurred less than five years before the person applied for the license.

2. (b) Regardless of the date of the offense, the board may prohibit an individual from taking the UCPAE, and may not issue the CPA certificate, or an initial license, for up to five years from the date of the application, if the board finds that the applicant has been convicted of a felony, or misdemeanor offense which directly relates to the duties and responsibilities of the practice of public accountancy. In determining whether the felony or misdemeanor conviction directly relates to the duties and responsibilities of the practice of public accountancy, 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 on professional accounting 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 CPA 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 §53.023 (Texas Occupations Code) in determining the present fitness of an applicant 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 relies on professional accounting services, 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 UCPAE.

   1. (1) The applicant 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 requesting conviction records on all applicants about whom the executive director finds evidence to warrant a record search.
   3. (3) The board will review the conviction records of applicants 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, an applicant may be permitted to take the UCPAE, with his or her scores subject to being voided. An applicant may have his or her scores voided or may be denied the opportunity to take the UCPAE on the basis of a prior conviction pursuant to a hearing as provided for in the Act.
   4. (4) The examination eligibility fee of an applicant whose application to take the UCPAE has been denied under this section or §511.70 of this title (relating to Grounds for Disciplinary Action of Applicants) and who has not taken any portion of the examination shall be refunded.
6. (f) An applicant who has not been permitted to sit for the UCPAE 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 applicant shall 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 requesting conviction records on an applicant requesting issuance of the CPA certificate.
   3. (3) The board shall review the individual applications and the conviction records of applicants and shall approve or disapprove applications as the evidence warrants. No CPA certificate or initial license may be issued to an applicant 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; amended to be effective April 10, 2013, 38 TexReg 2226; amended to be effective October 11, 2017, 42 TexReg 5440.