BILL ANALYSIS



C.S.H.B. 2600
By: Kubiak
4-21-95
Committee Report (Substituted)


BACKGROUND

Federal Employees who are licensed by the state are being taxed
inconsistently according to applicable statutes.  For example,
attorneys employed by the federal government do not pay their
occupation tax which is directly collected by the State
Comptroller.  The Comptroller determined administratively that
federally employed attorneys are not subject to this tax.  However,
Certified Public Accountants (CPA's) employed by the federal
government, and specifically prohibited from outside employment,
are not exempt from their occupation tax due to language in the
Public Accountancy Act.


PURPOSE

CSHB 2600 amends the Public Accountancy Act of 1991 to allow for
the exemption of certain fees by federally employed CPAs, and those
employed by certain state agencies.


RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 9A, Public Accountancy Act of 1991 (Art.
41a-1, Vernons Texas Civil Statutes)  Adds Subsection (d)and (e). 
Allows exemption for licensed CPAs who are employed by the federal
government (and restricted from outside employment) from the
imposition of fees contained in Subsections (a) and (b).  Also
grants exemption to employees of certain state agencies. 

SECTION 2.  Act applies to fees becoming due on or after the
effective date.

SECTION 3.  Emergency clause.


COMPARISON OF ORIGINAL TO SUBSTITUTE

The substituted added language exempting those federal employees
who  are restricted, by virtue of  employment from engaging in
public accounting outside the scope of employment.  The original
did not provide for this.  The substitute also exempts employees of
state agencies that have authorized the payment of such fees on
behalf of the license holder.  The original did not provide for
this.

SUMMARY OF COMMITTEE ACTION

HB 2600 was posted for Public Hearing on March 22, 1995.  The
Public Hearing was cancelled.  HB 2600 was considered in a Public
Hearing on March 29, 1995.  The Chair laid out and explained HB
2600.  The Chair recognized the following persons to testify in
favor of the bill.
     Mr. James L. Walker, CPA, IRS; 
HB 2600 was left pending in committee.  There was no objection.  HB
2600 was considered in a Public Hearing on April 19, 1995.  The
Chair laid out HB 2600 which was pending in committee.  There was
no objection.  Rep. Goolsby offered a complete committee substitute
and moved that the full committee adopt CSHB 2600.  There was no
objection.  HB 2600 was left pending in committee.  There was no
objection.  HB 2600 was considered in a Formal Meeting on April 21,
1995.  The Chair laid out HB 2600 as substituted which was pending
in committee.  There was no objection.  Rep. Kubiak moved that the
full committee adopt HB 2600 as substituted and that it be reported
favorably to the full House with the recommendation that it do pass
and be printed, and placed on the Local and Consent Calendar.  The
motion prevailed by the following vote:  AYES: 8, NAYS: 0, ABSENT:
1.