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.