GAAP Legislation Proceeding – HB 1930 and SB 753: We now have legislation in the House and Senate to eliminate the “opt out” to GAAP for state and local governments. Rep. John Frullo, CPA, (R-Lubbock) introduced the legislation in the House as HB 1930. It is identical to the bill in the Senate, SB 753, which was filed by Senator Charles Perry, CPA, (R-Lubbock). So we are now good to go and will work on getting co-sponsors on each bill. If your legislator expressed an interest in being a co-sponsor, please let us know so we can follow up with them.
Insurance Services Tax – HB2381 and SB1083: We have worked out a compromise solution on the insurance services tax issue that is on our legislative agenda for this session. The bills have been filed in the House and Senate by Senator Charles Perry (R-Lubbock) and Rep. John Frullo (R- Lubbock). They are Senate Bill 1083 and House Bill 2381 and you can read it here.
After many meetings with the Texas comptroller’s office we were able to work out a limited exemption for licensed CPA firms that have less than 1 percent of their total revenue from this type of insurance service/activity. The comptroller was willing to support that type of proposal and issue a no significant revenue impact statement. Any bill that was classified as having a significant revenue impact by the comptroller was going to be DOA in the Legislature. So while not a perfect fix, this proposal will provide relief for those who do a limited amount of this type of work. We encourage all our Key Persons and others to ask their legislators to support SB 1083 and HB 2381 and our efforts on this issue.