By:  Cain                                              S.B. No. 403
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the occupation tax imposed on attorneys.
    1-3        SECTION 1.  Subchapter H, Chapter 191, Tax Code, is amended
    1-4  to read as follows:
    1-5                       SUBCHAPTER H.  ATTORNEYS
    1-6        Sec. 191.141.  Definitions.  In this subchapter:
    1-7              (1)  "Attorney" means a person licensed to practice law
    1-8  in this state.
    1-9              (2)  "Tax year" means June 1 of one year through May 31
   1-10  of the following year.
   1-11              (3)  "State bar" means the State Bar of Texas.
   1-12        Sec. 191.142.  Imposition and Rate of Tax.  (a)  A tax is
   1-13  imposed on each attorney.
   1-14        (b)  The tax rate is $200 per year to be paid in advance.
   1-15        Sec. 191.143.  Time for Payment of Tax.  (a)  Except as
   1-16  provided by Subsection (b), each attorney shall pay the tax for
   1-17  each tax year on or before June 1 of the tax year.
   1-18        (b)  If a person is licensed to practice law after the
   1-19  beginning of the tax year or resumes active status to practice law
   1-20  after the beginning of the tax year, the person being licensed or
   1-21  resuming active status shall pay the tax imposed by this subchapter
   1-22  in proportion to the number of months for which the person will be
   1-23  licensed during that tax year.  If a person is licensed after the
   1-24  beginning of a calendar month, the month in which the person is
    2-1  licensed shall count as a month for purposes of payment of taxes
    2-2  under this subsection.
    2-3        Sec. 191.1431.  METHOD OF COLLECTION.  The supreme court
    2-4  shall administer the collection of taxes under this subchapter.
    2-5        Sec. 191.144.  Exemptions.  The tax imposed by this
    2-6  subchapter does not apply to:
    2-7              (1)  an attorney who is 70 years of age or older; or
    2-8              (2)  an attorney who has assumed inactive status under
    2-9  rules governing the licensing of attorneys in this state.
   2-10        Sec. 191.1441.  SUSPENSION AND REINSTATEMENT.  (a)  The
   2-11  supreme court shall suspend from the practice of law a person who
   2-12  does not pay, within 90 days after the date it is due, the tax
   2-13  imposed by this subchapter or a penalty relating to that tax.
   2-14        (b)  An attorney who is suspended under Subsection (a) shall
   2-15  be reinstated on payment of the tax and any interest and penalties.
   2-16        Sec. 191.1442.  PENALTY AND INTEREST.  (a)  A penalty of five
   2-17  percent of the tax due shall be imposed on a person who fails to
   2-18  pay the tax imposed or file a report required by this chapter when
   2-19  due, and, if the person fails to file the report or pay the tax
   2-20  within 30 days after the day on which the tax or report is due, an
   2-21  additional five percent penalty shall be imposed.
   2-22        (b)  The yearly interest rate on delinquent tax imposed by
   2-23  this chapter is 12 percent.  Delinquent taxes draw interest
   2-24  beginning 60 days from the due date.
   2-25        Sec. 191.1443.  RULES.  The state bar, with the approval of
   2-26  the supreme court, shall have the authority to adopt policies and
   2-27  rules for the administration and collection of the tax imposed by
    3-1  this chapter and for the exemptions from that tax and shall have
    3-2  the authority to compromise interest and penalties attributable to
    3-3  the tax imposed by this chapter.
    3-4        Sec. 191.145.  DISTRIBUTION OF TAX.  The supreme court shall
    3-5  forward tax received under this subchapter to the state for
    3-6  deposit:
    3-7              (1)  twenty-five <(a)  Twenty-five> percent of the
    3-8  taxes <collected under this subchapter in any tax year> shall be
    3-9  deposited to the credit of the foundation school fund; and<.>
   3-10              (2)  seventy-five <(b)  Seventy-five> percent of the
   3-11  taxes <collected under this subchapter in any tax year> shall be
   3-12  deposited to the credit of the general revenue fund.
   3-13        SECTION 2.  All forms and policies adopted by the comptroller
   3-14  specifically for the administration of Chapter 191, Tax Code, in
   3-15  effect on the effective date of this Act remain in effect until
   3-16  amended or repealed by the State Bar of Texas under authority
   3-17  granted to the State Bar of Texas by a change in law made by this
   3-18  Act or other law.
   3-19        SECTION 3.  The change in law made by this Act does not
   3-20  affect tax liability accruing before the effective date of this
   3-21  Act.  That liability continues in effect as if this Act had not
   3-22  been enacted, and the former law is continued in effect for the
   3-23  collection of taxes due as of the effective date of this Act and
   3-24  for enforcement of the liability for those taxes.  However, as soon
   3-25  as practicable on or after the effective date of this Act, the
   3-26  comptroller shall transfer to the Supreme Court of Texas all unpaid
   3-27  accounts and files.
    4-1        SECTION 4.  This Act takes effect June 1, 1995.
    4-2        SECTION 5.  The importance of this legislation and the
    4-3  crowded condition of the calendars in both houses create an
    4-4  emergency and an imperative public necessity that the
    4-5  constitutional rule requiring bills to be read on three several
    4-6  days in each house be suspended, and this rule is hereby suspended,
    4-7  and that this Act take effect and be in force according to its
    4-8  terms, and it is so enacted.