HBA-RBT C.S.S.B. 674 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.S.B. 674 By: Moncrief Ways & Means 5/10/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, information prepared by the Legislative Budget Board and the comptroller of public accounts indicates that the Board of Tax Professional Examiners (board) has not been able to comply with appropriations act requirements that revenue generated by the agency cover its direct and indirect costs. The latest estimates indicate that the board will fall short approximately $24,600 in covering these costs in the next biennium. The board is statutorily limited to charging $35 in annual fees to those it regulates, but has been charging $45 per person via appropriations authorization. C.S.S.B. 674 requires registrants to pay the Board of Tax Professional Examiners an annual fee not less than $45 and not to exceed $75. This bill regulates the administration of examinations and the fees charged by the Board of Tax Professional Examiners. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Board of Tax Professional Examiners in SECTION 1 (Section 14A, Article 8885, V.T.C.S.) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Article 8885, V.T.C.S., by amending Section 13 and adding Section 14A, as follows: Sec. 13. Requires registrants to pay the Board of Tax Professional Examiners (board) an annual fee not less than $45 and not to exceed $75, rather than $35. Sec. 14A. Authorizes the board, by rule, to require a registrant to pass one or more examinations in order to be certified. Provides that an applicant for an examination must file an application with the board on a printed form provided by the board. Requires the board to ensure that the form requires sufficient information to determine the applicant's current classification. Provides that an application must be accompanied by a fee in an amount to be set by the board. Requires the board to retain the fee regardless of whether the applicant passes the examination. Provides that an application for an examination must be filed with the board not later than the 14th day before the examination date. SECTION 3. Effective date: September 1, 1999. Makes application of this Act prospective. SECTION 4. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute differs from the original in SECTION 1 by further amending Section 13, Article 8885, V.T.C.S., by requiring registrants to pay the Board of Tax Professional Examiners (board) an annual fee not less than $45 and not to exceed $75, rather than $55 in the original. The substitute differs from the original by deleting SECTION 2 of the original and placing proposed Section 14A which was in SECTION 2 of the original in SECTION 1 of the substitute and modifying Section 14A by delegating rulemaking authority to the board and conforming the language to Legislative Council format. The substitute differs from the original by redesignating SECTION 3 of the original (effective date) as SECTION 2 and adding a prospective clause in the substitute. The substitute differs from the original by redesignating SECTION 4 (emergency clause) of the original as SECTION 3 of the substitute.