Bill

HB 2891

84(R) - 2015
House Ways & Means
House Ways & Means

Vote Recommendation

Yes
  • Neutral
  • Neutral
  • Neutral
  • Positive
  • Neutral

Author(s)

John Otto

Bill Caption

Relating to certain reporting requirements for taxable entities.

Fiscal Notes

A fiscal note dated April 13, 2015 anticipates a negative two-year net impact to General Revenue Related Funds of $4,775,040 through the biennium ending August 31, 2017.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

Bill Analysis

House Bill 2891 would amend Section 153.301 of the Business Organizations Code to require that a limited partnership only file  with the secretary of state the report required every four years under this section if it is not required to file a public information report with the comptroller under Section 171.203 of the Tax Code related to the franchise tax.

House Bill 2891 would amend Section 302.012(a) of the Business Organizations Code to require that a professional association only file with the secretary of state the statement required annually under this section if it is not required to file a public information report with the comptroller under Section 171.203 of the Tax Code related to the franchise tax.

House Bill 2891 would amend Section 171.203 of the Tax Code related to the public information report regarding the franchise tax to add limited partnerships and professional associations to the organizations that must already file this report.

Vote Recommendation Notes

05/24/15 update:

An amendment was introduced and adopted on the House floor. The amendment would repeal Section 302.012 of the Business Organizations Code relating to the annual statement required of professional associations, as well as the $35 fee for filing the annual statement. It would also make the act take effect on January 1, 2016, instead of September 1, 2015.

The amendment would further lessen the administrative burden of professional associations. We continue to support this bill.

The second chamber sponsor is Senator Charles Perry.

First chamber recommendation:

Under current law, limited partnerships and professional associations are required to file, respectively, a periodic report over a seven year cycle, and an annual statement with the secretary of state, each having a filing fee for these organizations.

According to the statement of purpose for House Bill 2891, since these entities are already required to file an franchise tax return, requiring them to file the annual public information report with the same information required in the secretary of state filing could streamline the filing process and eliminate duplicate reporting.

House Bill 2891 could potentially save time and money to limited partnerships and professional associations, and make agencies more efficient by avoiding the duplication of documents. As a consequence, we support House Bill 2891.