C.S.S.B. 403
                                                         By: Cain
                                   Committee Report (Substituted)

Currently, the $200 annual professional license fee owed by
attorneys is administered by the comptroller rather than the state
bar.  The comptroller has no authority to revoke a license for
nonpayment; therefore, many attorneys ignore the fee and are


As proposed, S.B. 403 grants the state bar the authority to
administer the collection of the attorney tax, and requires the
state bar to suspend the license of anyone who does not pay the


It is the committee's opinion that rulemaking authority is granted
to the State Bar of Texas under SECTION 1 (Section 191.1443,
Chapter 191H, Tax Code) of this bill.


SECTION 1. Amends Chapter 191H, Tax Code, as follows:

                     SUBCHAPTER H.  ATTORNEYS

     Sec. 191.141.  DEFINITIONS.  Defines "state bar."
     Sec. 191.142.  IMPOSITION AND RATE OF TAX.  Makes no change.
     Sec. 191.143.  TIME FOR PAYMENT OF TAX.  Makes no change.
     Sec. 191.1431.  METHOD OF COLLECTION.  Requires the supreme
     court, through its administrative arm, the state bar, to
     administer the collection of taxes under this subchapter.
     Sec. 191.144.  EXEMPTIONS.  Makes no change.
     Sec. 191.1441.  SUSPENSION AND REINSTATEMENT.  (a) Requires
     the supreme court to suspend from the practice of law a person
     who does not pay, within 90 days after the due date, the tax
     or a relating penalty.
     (b) Requires an attorney suspended under Subsection (a) to
       be reinstated on payment of the tax and any interest and
       Sec. 191.1442.  PENALTY AND INTEREST.  (a) Requires a penalty
     of five percent of the tax due to be imposed on a person who
     fails to pay the tax or fails to file a report when due. 
     Requires an additional five percent penalty to be imposed if
     the person fails to file the report or pay the tax within 30
     days after the tax or report is due.
     (b) Establishes the yearly interest rate on delinquent tax
       as 12 percent.  Provides that delinquent taxes draw interest
       beginning 60 days from the due date.
       (c) Authorizes the state bar to settle a claim for penalty
       or interest if the attorney exercised reasonable diligence
       in complying with the provisions of this subchapter.
       Sec. 191.1443.  RULES.  Grants the state bar, with supreme
     court approval, to have the authority to adopt policies and
     rules for the administration and collection of, and for
     exemptions from, the tax.
     Sec. 191.145.  DISTRIBUTION OF TAX.  Requires the state bar to
     forward tax received to the state for deposit.  Makes
     nonsubstantive changes.
     SECTION 2.     Provides that all forms and policies adopted by the
comptroller for the administration of Chapter 191, Tax Code, in
effect on the effective date of this Act, remain in effect until
amended or repealed by the State Bar of Texas.

SECTION 3. Provides that liability accruing before the effective
date of this Act continues in effect, and that the former law is
continued in effect for the collection of taxes due as of the
effective date and for enforcement of the liability for those
taxes.  Requires the comptroller, as soon as practicable on or
after the effective date, to transfer all unpaid accounts and files
to the State Bar of Texas.

SECTION 4. Effective date: June 1, 1995.

SECTION 5. Emergency clause.