BILL ANALYSIS


                                                        S.B. 1659
                                                   By: Armbrister
                                                          Finance
                                                          5-10-95
                                     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, S.B. 1659 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
Subsection (d), to provide 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 or state
government who only engages in the practice of public accountancy
in the scope of the government employment.

SECTION 2. Makes application of this Act prospective.

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