BILL ANALYSIS

H.B. 2891

By: Otto

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Interested parties note that limited partnerships are currently required to file a report containing certain information about the partnership with the secretary of state every four years to maintain the right to do business in Texas and that professional associations are required to annually file with the secretary of state a statement containing similar information with respect to the association. The parties suggest that since both entities are required to file an annual franchise tax return, including the same information required in the secretary of state filing in the public information report filed with the franchise tax return would streamline the filing process, eliminate duplicate reporting, and reduce the number of documents processed at the receiving agencies. H.B. 2891 seeks to implement this change.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 2891 amends the Business Organizations Code to specify that, with regard to certain reporting requirements applicable to a professional association and to a domestic limited partnership or a foreign limited partnership registered to transact business in Texas, the requirements apply only to such an entity that is not required to file a public information report with the comptroller of public accounts for purposes of the franchise tax.

H.B. 2891 amends the Tax Code to include a limited partnership and a professional association on which the franchise tax is imposed among the entities required to file a public information report with the comptroller for purposes of the franchise tax.  

EFFECTIVE DATE

September 1, 2015.