HBA-JRA H.B. 2577 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2577
By: Hamric
Ways & Means
4/19/1999
Introduced


BACKGROUND AND PURPOSE 

Currently, there are several professional associations, including those for
doctors, accountants, architects, engineers, real estate brokers, and
attorneys, whose members are required to pay an annual occupation tax in
order to practice their profession in the State of Texas.  H.B. 2577
exempts a person that is licensed in more than one of the participating
professions from paying an increase or tax relating to a license other than
the first license obtained by the person. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the comptroller of public accounts and
any licensing agency affected by the exemption under this Act in SECTION 3
of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  DEFINITIONS.  Defines "license" and "licensing agency" in this
Act. 

SECTION 2.  LICENSING FEE EXEMPTION.  Exempts a person who is otherwise
subject to more than one of the fee increases or the tax listed in this
section from paying an increase or tax relating to a license other than the
first license obtained by the person.  Makes this Act applicable to a fee
increase or tax imposed under Section 3.11A, Article 4495b, V.T.C.S.
(Medical Practice Act); Section 9A, Article 41a-1, V.T.C.S. (Public
Accountancy Act of 1991); Section 4C, Article 249a , V.T.C.S. (Regulation
of Practice of Architecture); Section 13B, Article 3271a, V.T.C.S. (Texas
Engineering Practice Act); Section 11A, Article 6573a, V.T.C.S. (Real
Estate Licensing Act); and Subchapter H (Attorneys), Chapter 191
(Miscellaneous Occupation Taxes), Tax Code. 

SECTION 3.  PROCEDURE FOR OBTAINING EXEMPTION.  Authorizes a person to
claim an exemption under this section by timely paying the appropriate fee
increase or tax and presenting a receipt for that payment to the other
applicable licensing agencies along with a written statement claiming the
exemption.  Requires a licensing agency affected by the exemptions under
this Act to adopt rules and procedures relating to how the exemption is
obtained, which must include the procedures to inform license holders of
the exemption provided by this Act.  Requires a licensing agency to
prescribe forms as necessary, including a form for a notice of exemption.
Authorizes the comptroller of public accounts, by rule, to prescribe a
standard form for receipts and for claims of exemption.  Provides that a
claimed exemption is not invalid for failure to use a standard form. 

SECTION 4.  CONFORMING AMENDMENT.  Amends Section 3.11A, Article 4495b,
V.T.C.S. (Medical Practice Act), as follows: 

Sec. 3.11A.  New title:  DISPOSITION OF INCREASE IN FEES.  Provides that
the stated portion of each fee is an increase in fees for purposes of an
exemption in the payment of a professional fee or tax that may be granted
to a person licensed under this Act. 

SECTION 5.  TRANSITION.  Effective date: September 1, 1999, except that
SECTION 2 of this Act takes effect January 1, 2000, and applies only to an
increase in fees or tax that becomes due on or after that date.  Requires a
licensing agency subject to this Act to adopt rules under this Act by
November 1, 1999. 

SECTION 6.  EMERGENCY.  Emergency clause.