Progress on All Fronts

Last Week in the Legislature

By Kenneth Besserman
Director of Government Affairs and Special Counsel

March 6, 2025 | Issue 7

AUSTIN - This week, significant progress has been made on TXCPA supported legislation relating to the CPA pipeline. Senate Bill 262 – creating an additional pathway to CPA licensure – was placed on the Senate Intent Calendar after passing the Senate Business & Commerce Committee unanimously last week. Being placed on the Senate Intent Calendar makes a bill eligible for full debate by the Senate. During the first few weeks of session, the Senate has been focusing on Senate priorities, gubernatorial emergency items and other issues that the Lt. Governor desires to advance quickly during the session.

SB 262 has been well received in the Senate Committee and among the full Senate as the TXCPA Government Relations team and lobbyists spread the message. The Senate and Lt. Governor understand the importance of CPAs to the Texas economy, businesses and taxpayers, and this workforce development legislation comports well with other workforce initiatives making their way through the legislative process. There is a high likelihood that SB 262 will be debated on the Senate floor next week and pass.

Once passed in the Senate, the bill will move to the Texas House and be referred to the House Licensing & Administrative Procedures Committee where the companion legislation, HB 1757, has already been referred. Once the legislation passes the Senate, TXCPA will work to get the bill heard in the House. We are encouraged by the swift progress so far on the pathways legislation.

The other important piece of the CPA pipeline is SB 522 – improving and modernizing individual practice mobility – which is ready to be heard in the Senate Business & Commerce Committee. While Senate committees have started hearing bills, there has not been a rush of hearings to date, so we are still in very good shape on all our bills. Likewise, in the House, committees have recently been formed and bills hearings should be in full swing by next week. Currently, priority hearings have been held on school choice, property tax relief and the state budget. It will get busy in the coming weeks.

There have been other developments in the Texas Legislature in recent days. The Senate has passed its own priority legislation creating the Dementia Prevention and Research Institute in Texas (SB 3 and SJR 5). The legislation will create a world-class institute to study and research dementia and provide resources for the development of dementia cures and treatments. Modeled after the very successful Cancer Prevention and Research Institute (CPRIT), the new Dementia Institute will attract worldwide research and projects to Texas. The legislation now moves to the House for consideration.

In the House, the Ways and Means Committee began hearing its version of property tax relief. While there is some relief for homeowners, there has been significant debate in the House to provide some needed property tax relief to businesses in the form of increased business property exemptions. The form and size of property tax relief will likely be debated all session, requiring the Senate and House to form a conference committee later in the session to work out the scope of property tax relief. While both sides are in agreement to increase the homestead exemption, business tax relief will have to be negotiated.

School choice has passed the Senate and is making its way through the House. The biggest difference in the House and Senate proposals is how much each student should receive in funds to use for private schools of their choice and the prioritization of which student populations should receive funding. The differences will be worked out in time, but the ultimate fate of the legislation is still uncertain in the House.

Finally, there have been a few bills filed this session that seek to create a universal licensing scheme for a multitude of professions and occupations. Those bills are an attempt to lessen the barriers of people becoming licensed in Texas if they have been licensed in other states. TXCPA is watching these bills very closely so that they do not impede or harm the “drivers license” model of mobility that currently exists in the CPA profession and that will be improved upon with SB 522. TXCPA has had fruitful discussions with the authors of those to ensure that there is no intended or unintended conflict with CPA mobility and reciprocity.

Be on the lookout for messages on ways in which you can engage on SB 262 to ensure its passage in the Senate. In the meantime, please call your Senator and let them know how important SB 262 is to the profession and the Texas economy.

Only 86 days left in the session!