1. (a) The board shall not examine a CPA candidate, issue the CPA certificate, 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 which results in incarceration or upon revocation of applicant's or licensee's felony probation, parole, or mandatory supervision. This section is to be effective for individuals applying for the examination, initial license, or license renewal as of September 1, 1981, and thereafter.

2. (b) The board may not examine a CPA candidate, issue the CPA certificate, issue an initial license, or renew a 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 provided by accountants;
   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 individual was previously involved; and
   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.

3. (c) In addition to the factors stated in subsection (b) of this section, the board shall consider the following evidence in determining the present fitness of a candidate who has been convicted of a crime:

   1. (1) the extent and nature of the individual's past criminal activity;
   2. (2) the age of the individual at the time of the commission of the crime;
   3. (3) the amount of time which has elapsed since the individual's last criminal activity;
   4. (4) the conduct and work activity of the individual prior to and following the criminal activity;
   5. (5) evidence of the individual's rehabilitation or rehabilitative effort while incarcerated or following release; and
   6. (6) other evidence of the individual's present fitness, including letters of recommendation from prosecution, law enforcement, and correction officers who prosecuted, arrested, or had custodial responsibility for the individual, the sheriff, and chief of police in the area where the individual resides, and any other persons in contact with the individual; it shall be the responsibility of the individual to the extent possible to secure and provide to the board the recommendation of the prosecution, law enforcement, and correctional authorities as required under this section; the individual shall also furnish proof to the board that he or she has maintained a record of steady employment and has supported his or her dependents and has otherwise maintained a record of good conduct and has paid all outstanding court costs, supervision fees, fines, and restitution as may have been ordered in all criminal cases in which he or she has been convicted.

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 sit for 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 initial examination candidates and on those reexamination 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 sit for the uniform CPA examination, with his or her grades subject to being voided. A candidate may have his or her grades voided or may be denied the opportunity to sit for the uniform CPA examination on the basis of a prior conviction pursuant to a hearing as provided for in the Public Accountancy Act of 1979, §22, as amended, (Texas Civil Statutes, Article 41a-1).

6. (f) 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 individuals 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 Public Accountancy Act of 1979, §22, as amended (Texas Civil Statutes, Article 41a-1).

7. (g) The following procedure shall apply when renewing a license annually.

   1. (1) Each licensee 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 of which the board has not previously been informed. If the licensee responds in the negative and pays the required license fee, a renewal license will be issued in accordance with established procedures. If the licensee responds affirmatively and pays the required license fee, the board may submit identifying information on board letterhead to the Texas Department of Public Safety and other appropriate agencies requesting conviction records on the individual.
   2. (2) The board will review the conviction records and either approve or deny the application for a renewal license as the evidence warrants. The board will refund any renewal fee submitted if the application is denied. The board may suspend or revoke or refuse to renew an annual license on the basis of a prior conviction pursuant to a hearing as provided for in the Public Accountancy Act of 1979, §22, as amended (Texas Civil Statutes, Article 41a-1).

8. (h) In the event the board suspends or revokes a valid license or denies a person a license or certificate or the opportunity to sit for the uniform CPA examination or voids the grades of a candidate because of a person's prior conviction of a crime and the relationship of the crime to the license and certificate pursuant to a hearing as provided for in the Public Accountancy Act of 1979, §22, as amended (Texas Civil Statutes, Article 41a-1), the board shall notify the person in writing:

   1. (1) of the reasons for the suspension, revocation, denial, or disqualification;
   2. (2) that the person, after exhausting administrative appeals, may file an action in district court in Travis County, for review of the evidence presented to the board and its decision in accordance with the Public Accountancy Act of 1979, §22, as amended (Texas Civil Statutes, Article 41a-1);
   3. (3) that a person must begin the judicial review within 30 days after the board's decision is final and appealable; and
   4. (4) that the earliest date a person may appeal is when a motion for rehearing is denied, or when the time for filing a motion for rehearing has expired and no motion has been filed.

Source Note:The provisions of this §525.1 adopted to be effective February 25, 1987, 12 TexReg 502.