TSCPA Governmental Affairs

Governor Perry signs scholarship transfer bill

Last Saturday, May 23, Governor Perry signed HB 2440 into law. The bill transfers the administration of accounting scholarship funds for fifth-year accounting students from the Higher Education Coordinating Board (HECB) to the State Board of Public Accountancy (TSBPA). It was authored by Rep. Brian McCall (R-Plano) and sponsored in the Senate by Sen. Tommy Williams, CPA (R-The Woodlands). The bill is effective September 1, 2009.

CPAs pay a $10 fee with their annual license renewal, put towards scholarships for fifth-year accounting students planning to sit for the CPA examination. While the HECB has done a good job of fund administration, because of restrictions applicable to the Board’s budget during the biennial appropriations process arbitrary limits have been placed on the total funds available for scholarships each year despite the availability of funds. It is hoped that the transfer for the administration of the funds will alleviate this problem and more funds will be available for future scholarships.

The bill to make the transfer was a cooperative effort between HECB, TSBPA and the Texas Society of CPAs.

Scholarship bill clears Senate Higher Education Committee

Monday afternoon - immediately after the Senate adjourned for the day - Senator Zaffirini called a meeting of the Higher Education Committee to consider HB 2440, which is the bill that transfers the administration of fifth-year accounting scholarship funds from the Higher Education Coordinating Board to the State Board of Accountancy. The committee voted to send the bill to the Senate Local and Consent Calendar, which means the bill should pass without opposition.

This is the last step in the bill process and clearing the Senate will send the bill to Governor Perry for signature.

New TSBPA Chair announced

Governor Rick Perry has appointed the new chair of the Texas State Board of Public Accountancy, as well as 3 new members to the Board itself.

Read about them here.

House approves margin tax cut for small business

The House unanimously passed HB 4765 by Rep. Rene Oliveira (D-Brownsville). The bill raises the total revenue exemption from $300,000 to $1 million for two years, reverting to $300,000 if no action is taken during the 2011 legislative session. A number of legislators had filed similar bills but Oliveira, Chairman of the Ways and Means committee, filed HB 4765 to include the two year limitation. All the other bills would have made the change permanent.

Oliveira’s bill will remove thousands of businesses from the franchise tax rolls. Floor debate indicated that there will be fewer franchise tax-paying entities now than were paying the loophole-riddled prior franchise tax.

Rep. Jim Keffer (R-Eastland), Ways and Means chair during last session, offered an amendment to raise the revenue exemption from $300,000 to $600,000 and reduce the tax on taxpayers eligible for the E-Z computation (entities with $10 million or less in revenue).Keffer pointed out that this would actually help more taxpayers while not giving so many a complete pass on paying the tax. The amendment was withdrawn due to procedural issues.

Read the Austin American-Statesman coverage here.