BILL ANALYSIS


                                                        H.B. 2600
                                          By: Kubiak (Armbrister)
                                                          Finance
                                                          5-26-95
                              Senate Committee Report (Unamended)
BACKGROUND

Federal and state employees licensed by the state are being taxed
inconsistently according to applicable statutes.  Attorneys
employed by the federal and state government do not pay their
occupation tax which is directly collected by the state
comptroller.  The comptroller determined administratively that
federal and state employed attorneys do not pay this tax.  However,
certified public accountants (CPAs) employed by the federal and
state government, and specifically prohibited from outside
employment, are not exempt from their occupation tax due to
language in the Public Accountancy Act.

PURPOSE

As proposed, H.B. 2600 exempts federal and state employed
accountants who are prohibited from employment outside their
government jobs from the imposition of the occupation tax.

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, Article 41a-1, V.T.C.S., by adding
Subsections (d) and (e), as follows:

     (d) Provides that the increase in fees and the additional fee
     provided by Subsections (a) and (b) do not apply to a license
     holder who is an employee of the federal government and
     restricted by virtue of the license holder's employment, from
     engaging in the practice of public accountancy outside the
     scope of the license holder's employment by the federal
     government.
     
     (e) Provides that the increase in fees and the additional fee
     provided by Subsections (a) and (b) do not apply to a license
     holder who is an employee of an agency of the state that has
     authorized the payment of the fee increase and additional fee
     on behalf of the license holder.
SECTION 2. Makes application of this Act prospective.

SECTION 3. Emergency clause.
           Effective date: 90 days after adjournment.