HBA-DMH H.B. 430 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 430
By: Pitts
Licensing & Administrative Procedures
2/28/2001
Introduced



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.  House Bill 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

House Bill 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 determine the grade that must be attained to pass
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, if doing so would result in a greater degree of
reciprocity with the examination results of other states.  

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.