NDT H.B. 1135 75(R)BILL ANALYSIS


LICENSING & ADMINISTRATIVE PROCEDURES
H.B. 1135
By: Kubiak
4-1-97
Committee Report (Unamended)



BACKGROUND 

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 tat federally employed attorneys do not pay this tax.
However, CPAs 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

The Public Accountancy Act of 1991 must be amended to allow for the
exemption of federally employed CPAs, who because of the terms of their
employment may not use their licenses outside their service to the U. S.
Government, from the implosion of the occupation tax.  This amendment will
create equal imposition of this tax on similarly situated individuals. 

RULEMAKING AUTHORITY

It is the opinion of the committee that this bill does not delegate any
additional rulemaking authority to any state agency, department, office or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 9a of the Public Accountancy Act of 1991
(Article 41a-1, Vernon's Texas Civil Statutes) by adding Subsection (d).
Allows exemption for licensed CPAs who are employed by the federal
government (and prohibited from outside employment) from the imposition of
fees contained in Subsections (a) and (b). 

Amends Section 9a of the Public Accountancy Act of 1991 (Article 41a-1,
Vernon's Texas Civil Statutes) by adding Subsection (e).  States that the
additional fees provided by Subsections (a) and (b) of this section do not
apply to license holders who are employed by the state. 

SECTION 2.  Applies exemption only to fees becoming due after the
effective date. 

SECTION 3.  Emergency clause.