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.