HBA-DMH H.B. 784 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 784 By: Isett Licensing & Administrative Procedures 3/18/2001 Introduced BACKGROUND AND PURPOSE Currently, a certified public accountant must pay a biennial license fee to remain licensed to practice accounting. At this time, there are no exemptions for an individual who would like to take a leave of absence because of illness, family, or educational needs. Other professions have established inactive status provisions. House Bill 784 exempts certified public accountants from certain fees and continuing professional educational requirements while on inactive status. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas State Board of Public Accountancy in SECTION 1 (Section 901.412, Occupations Code) of this bill. ANALYSIS House Bill 784 amends the Occupations Code to authorize a person licensed under the Public Accountancy Act (licensee) to apply to the Texas Board of Public Accountancy (board) to be placed on inactive status if the licensee is not actively engaged in the practice of public accountancy, but intends to return to the practice of public accountancy. The licensee must apply for inactive status before the licensee's license expires. The bill does not require a licensee to pay the standard required fees during the time the licensee is on inactive status, but does require a licensee on inactive status to pay the board an inactive status fee not to exceed $50 for each year of inactive status. The bill prohibits the licensee on inactive status from performing any activity regulated under the Public Accountancy Act. The bill does not require a licensee on inactive status to meet specified continuing professional education requirements. The bill requires the licensee on inactive status to notify the board in writing to reenter active practice and pay the board the standard required fees for the year in which the licensee returns to active status. The bill authorizes the board, by rule, to prorate the standard required fees on a monthly basis. The bill requires a licensee who returns to active status to comply with the continuing professional education requirements for the period commencing on the date the person returns to active status. EFFECTIVE DATE September 1, 2001.