HBA-DMH C.S.H.B. 430 77(R) BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 430 By: Pitts Licensing & Administrative Procedures 4/1/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE To become a certified public accountant (CPA), a person is required to take an examination in a specified location and achieve a specified score. The current examination is paper-based, but new technology allows for the test to be given electronically, which may result in a more efficient, frequent, and widely available testing process. A revised examination has been targeted for delivery by computer and could be administered through various secure testing centers throughout the state. C.S.H.B. 430 authorizes the Texas State Board of Public Accountancy to contract for the delivery of the examination and removes the numerical grade necessary to pass the examination to allow a passing score to be calculated based on the specific test and the material it covers. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas State Board of Public Accountancy in SECTION 5 (Section 901.307, Occupations Code) of this bill. ANALYSIS C.S.H.B. 430 amends the Occupations Code to authorize the Texas State Board of Public Accountancy (board) to contract with a person to conduct uniform CPA examinations under the Public Accountancy Act. The bill requires, rather than authorizes, the board by rule to adopt methods for grading examinations and to establish the criteria for passing the examination. The bill requires the board to collect a fee, not to exceed the cost of administering the examination for each examination or reexamination. The bill deletes provisions prohibiting the total examination fee from exceeding $250 and providing that a person must attain a grade of at least 75 percent on each subject of the examination to pass the examination. The bill authorizes the board to require the use of all or part of the uniform CPA examination and any related services available from specified entities. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 430 differs from the original bill by deleting the condition that the Texas State Board of Public Accountancy (board) may use or require the use of all or part of the uniform CPA examination and any related services available from specified entities if doing so would result in a greater degree of reciprocity with the examination results of other states. The bill requires the board by rule to establish the criteria for passing the examination, rather than determine the grade a person must attain to pass the CPA examination.