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.