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.