By Swinford                                      H.B. No. 962

      75R4444 JMM-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to inactive status for a certified public accountant.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  The Public Accountancy Act of 1991 (Article

 1-5     41a-1, Vernon's Texas Civil Statutes) is amended by adding Section

 1-6     12A to read as follows:

 1-7           Sec. 12A.  INACTIVE STATUS.  (a)  A person who holds a

 1-8     license under this Act and who is not actively engaged in the

 1-9     practice of public accountancy but who intends to return to the

1-10     practice of public accountancy may apply to the board in writing to

1-11     be placed on inactive status.  A person must apply for inactive

1-12     status before the expiration date of the person's license.

1-13           (b)  A person must pay the biennial license fee under Section

1-14     9(b) of this Act but is not required to pay the increase in fees

1-15     required by Section 9A of this Act during the time the person is on

1-16     inactive status.

1-17           (c)  A person on inactive status may not perform any activity

1-18     regulated under this Act.

1-19           (d)  A person on inactive status must meet the continuing

1-20     professional education requirements under Section 15A of this Act

1-21     while the person is on inactive status unless the person is exempt

1-22     under Section 15A(b) of this Act.

1-23           (e)  A person on inactive status shall notify the board in

1-24     writing in order to reenter active practice.  On determination by

 2-1     the board that the person has complied with the requirements of

 2-2     this section for inactive status and on payment of the increase in

 2-3     fees required by Section 9A of this Act, the board shall remove the

 2-4     person from inactive status and place the person on active status.

 2-5           SECTION 2.  Section 21, Public Accountancy Act of 1991

 2-6     (Article 41a-1, Vernon's Texas Civil Statutes), is amended by

 2-7     adding Subsection (i) to read as follows:

 2-8           (i)  After notice and hearing as provided by Section 22 of

 2-9     this Act, the board shall revoke the license of a person who

2-10     engages in the practice of public accountancy during a time in

2-11     which the person is on inactive status under Section 12A of this

2-12     Act.

2-13           SECTION 3.  This Act takes effect September 1, 1997.

2-14           SECTION 4.  The importance of this legislation and the

2-15     crowded condition of the calendars in both houses create an

2-16     emergency and an imperative public necessity that the

2-17     constitutional rule requiring bills to be read on three several

2-18     days in each house be suspended, and this rule is hereby suspended.