SRC-AAA H.B. 1135 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1135
By: Kubiak (Nixon)
State Affairs
5-6-97
Engrossed


DIGEST 

Federal employees who are licensed by the state are being taxed
inconsistently according to applicable statutes.  Attorneys employed by
the federal government do not pay their occupation tax, which is directly
collected by the state comptroller.  The comptroller determined
administratively that federally employed attorneys do not pay this tax.
However, certified public accountants employed by the federal 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. 1135 exempts federally employed certified public
accountants from the imposition of an occupational tax.   

RULEMAKING AUTHORITY

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), 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 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. Provides that the increase
in fees and the additional fee do not apply to a license holder who is an
employee of a state agency 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.