LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 1, 1995



 TO:     Honorable John T. Montford, Chair      IN RE:  Senate Bill No. 403
         Committee on Finance                           By: Cain
         Senate
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
403 (Relating to the attorney tax and to state bar membership
fees.) this office has determined the following:

This bill would restructure the attorney tax as a fee to be
submitted with the attorney's license renewal and collected by
the State Bar.  The bill would repeal Subchapter H, Chapter 191
of the Tax Code, which imposes an annual occupation tax of $200
on each attorney.  The bill would increase state bar membership
fees by $200.  Of this amount, $50 would be deposited into the
Foundation School Fund and $150 would be deposited into the
General Revenue Fund.

Payment of the fee increase would be required as a condition of
continued membership in the State Bar.  The State Bar would be
required to automatically suspend the license of an attorney who
failed to pay the fee increase within 90 days following the due
date.  The fee increase would not apply to attorneys who are
exempt from the attorney tax in accordance with Comptroller
practice.

The bill would implement Gaining Ground recommendation GG 6 by
restructuring the attorney tax as a fee to be collected by the
State Bar and requiring payment of the $200 fee increase as a
condition of continued membership in the State Bar.  The bill
would produce a gain to the General Revenue Fund and the
Foundation School Fund by increasing voluntary compliance with
the law.    




The probable fiscal implication of implementing the provisions of 
the bill during each of the first  five years following passage
is estimated as follows:
     



          Fiscal  Probable Revenue     Probable Revenue 
          Year      Gain to the          Gain to the    
                   General Revenue    Foundation School 
                      Fund 001             Fund 193     
                                                        
          1996              $645,000            $215,000
          1997               645,000             215,000
                                                        
          1998               645,000             215,000
                                                        
          1999               645,000             215,000
          2000               645,000             215,000
                                                        
                                                        
                                                        

       Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.




Source:   Comptroller of Public Accounts
          LBB Staff: JK, SM, DF