TSBPA - Rules for Out of State Licensees

Texas State Board of Public Accountancy Rules for Practice Privilege for Certain Out-of-State License Holders

Legislation effective September 1, 2007 created a “practice privilege” for CPAs and CPA firms licensed in a substantially equivalent state to temporarily practice in Texas without a Texas license. CPAs that qualify for the “practice privilege” are not required to provide notice to the Texas State Board of Public Accountancy (the "Board") or to pay a fee prior to practicing public accountancy in Texas in person or by mail, telephone or electronic means.

Requirements for Out-of-State Individuals

(Section 901.462 of the Public Accountancy Act)

If you are an out-of-state practitioner use the following checklist of requirements to determine your eligibility to practice in Texas without notice to the Board. To qualify you must be able to answer “Yes” to all requirements in the Individual Requirements Checklist below.

Individual Requirements Checklist - Requirements to Practice in Texas as an Out-of-State Practitioner

Requirement	Yes	No
I hold a license as a certified public accountant issued by a state other than Texas.
My principal place of business is in a state other than Texas.
The National Association of State Boards of Accountancy’s (NASBA) National Qualification Appraisal Service has verified that the state where I am licensed has education, examination, and experience requirements for certification or licensure that are comparable to or exceed the requirements for licensure as a certified public accountant of the American Institute of Certified Public Accountants (AICPA)/National Association of State Boards of Accountancy Uniform Accountancy Act. OR I have obtained from NASBA’s National Qualification Appraisal Service verification that my education, examination, and experience qualifications are comparable or exceed the requirements for licensure as a certified public accountant of the American Institute of Certified Public Accountants (AICPA)/National Association of State Boards of Accountancy Uniform Accountancy Act. Refer to the Substantial Equivalency list maintained by NASBA to respond to this requirement.

If you meet all the requirements in the Individual Requirements Checklist you may practice public accountancy in Texas without notifying the Board, but you must also be aware of the following conditions of your privilege to practice in Texas:

is subject to the personal and subject matter jurisdiction and disciplinary authority of the Board;
must comply withThe Public Accountancy Act and the Rules of the Board;
results in the appointment of the state that issued your license as the agent on whom process may be served in any action or proceeding by the Board against you;
ends if your certificate or registration is no longer valid. You must immediately cease offering services or rendering professional services in Texas.

Requirements for Out-of-State Firms

The 86th Texas Legislature amended the Texas Public Accountancy Act (the Act) to eliminate the licensing requirement for out-of-state CPA firms performing attestation services for a Texas entity. The amendment is a part of HB 1520 which went into effect on September 1, 2019. Among many other changes, HB 1520 adopts what is commonly referred to nationally as "firm mobility". There is no need to register your firm with the Texas Board since no out-of-state firm is required to hold a Texas license after September 1, 2019.

Keep in mind that the Act continues to place conditions on the privilege of practicing without a license. You are subject to that board's rules, regulations, and requirements, including those related to firm ownership and peer review of the state that issued your individual license. An individual who practices under a privilege under this section shall promptly cease offering or rendering professional services in this state if the individual's license in the state of the individual's principal place of business is no longer valid.

Please contact the Licensing Division if you have any questions at licensing@tsbpa.texas.gov.