By Isett                                               H.B. No. 784
         77R497 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.   Subchapter I, Chapter 901, Occupations Code, is
 1-5     amended by adding Section 901.412 to read as follows:
 1-6           Sec. 901.412.  INACTIVE STATUS.  (a)  A person who holds a
 1-7     license under this chapter and who is not actively engaged in the
 1-8     practice of public accountancy but who intends to return to the
 1-9     practice of public accountancy may apply to the board in writing to
1-10     be placed on inactive status.  A person must apply for inactive
1-11     status before the expiration date of the person's license.
1-12           (b)  A person is not required to pay the license fee under
1-13     Section 901.154 or the fees required by Sections 901.406 and
1-14     901.407 during the time the person is on inactive status.  The
1-15     person shall pay to the board an inactive status fee in an amount
1-16     not to exceed $50 for each year the person is on inactive status.
1-17           (c)  A person on inactive status may not perform any activity
1-18     regulated under this chapter.
1-19           (d)  A person on inactive status is not required to meet the
1-20     continuing professional education requirements under Section
1-21     901.411 while the person is on inactive status.
1-22           (e)  A person on inactive status shall notify the board in
1-23     writing in order to reenter active practice.  The person shall pay
1-24     to the board the license fee required under Section 901.154 and the
 2-1     appropriate fee required under Section 901.406 or 901.407 for the
 2-2     year in which the person returns to active status.  The board, by
 2-3     rule, may prorate on a monthly basis a fee required by this
 2-4     subsection so that the person pays only that portion of a fee that
 2-5     is allocable to the number of months during which the person is on
 2-6     active status.  On payment of the fees required by this subsection,
 2-7     the board shall remove the person from inactive status and place
 2-8     the person on active status.
 2-9           (f)  A license holder who returns to active status shall
2-10     comply with the continuing professional education requirements for
2-11     the period commencing on the date the person returns to active
2-12     status.
2-13           SECTION 2.   This Act takes effect September 1, 2001.