SRC-EPT, TBR S.B. 1037 77(R)BILL ANALYSIS Senate Research CenterS.B. 1037 By: Ellis, Rodney Finance 6/22/2001 Enrolled DIGEST AND PURPOSE Texas does not have a program that certifies independent certified public accountants to conduct audits. S.B. 1037 creates a certified audit program to train and certify independent certified public accountants to conduct tax audits. RULEMAKING AUTHORITY Rulemaking authority is expressly granted to the comptroller of public account in SECTION 1 (Section 151.0232, Tax Code), of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 151B, Tax Code, by adding Section 151.0232, as follows: Sec. 151.0232. CPA AUDIT PROGRAM. (a) Authorizes the comptroller by rule to establish a program in which a taxpayer may hire a certified public accountant who is not employed by the comptroller to perform an audit to determine a taxpayer's liability for a tax imposed under this chapter. (b) Requires a program established under Subsection (a) to include certain requirements. (c) Prohibits the comptroller, unless the audit or other information available to the comptroller discloses fraud or wilful evasion of the tax, from assessing a penalty and from waiving all or part of the accrued interest on an amount identified to be due as a result of an audit performed under Subsection (a). SECTION 2. Effective date: upon passage or September 1, 2001.