BILL ANALYSIS



C.S.H.B. 2184
By: Uher
4-26-95
Committee Report (Substituted)


BACKGROUND

In 1965, the Legislature limited the practice of engineering to
those persons who were licensed by virtue of their qualifications. 
Enforcement of this licensure requirement has been limited to
filing a misdemeanor criminal case with a local jurisdiction or
filing an injunction against a non-licensed person to prevent
unlawful practice.  Both procedures are awkward, and have been
proven ineffective in preventing future occurrences.  Disciplining
licensed engineers for improper practice has also been difficult
because punishments are limited to reprimands or loss of licensure. 
The first option doesn't serve as a deterrent, and the second
causes a dramatic loss of income, sometimes for relatively minor
offenses.  One of the most disturbing trends is the recent increase
in the number of enforcement cases.  Over half of all cases
resulting in disciplinary action by the State Board of Registration
for Professional Engineers have occurred since 1988; the Board has
been in existence since 1937.  This increase demands better tools
to adequately address the situation.  There is a nationwide trend
toward administrative penalties for violations of engineering
practice acts.  The model law for the National Council of Examiners
for Engineering and Surveying includes a section similar to this
bill.  Neighboring states such as Louisiana have already adopted
such bills.  Many other licensing and enforcement agencies have
already received the authority to issue citations and fines for
violations as a result of recent Sunset Reviews.   The Board of
Registration for Professional Engineers is not scheduled for Sunset
Review for another eight years. 


PURPOSE

CSHB 2184 provides statutory authority for the Board to issue
citations and monetary fines for violations of the Texas
Engineering Practice Act and Board Rules. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 1.1, Article 3271a, V.T.C.S. (Texas
Engineering Practice Act), to delete the necessity of a practicing
engineer to be registered as well as licensed under the provisions
of this Act.

SECTION 2. Amends Section 1.2, Article 3271a, V.T.C.S., to make
conforming changes.

SECTION 3. Amends Section 1.3, Article 3271a, V.T.C.S., to make a
conforming change.

SECTION 4. Amends Sections 2(1) and (3), Article 3271a, V.T.C.S.,
to redefine "board" and "engineer," "professional engineer,"
"registered engineer," "registered professional engineer,"
"licensed professional engineer," or "licensed engineer."

SECTION 5. Amends Section 3, Article 3271a, V.T.C.S., as follows:

     Sec. 2.  New heading: TEXAS BOARD OF PROFESSIONAL ENGINEERS--APPOINTMENT OF MEMBERS--TERMS.  Provides that the board
     created as the Texas State Board of Registration for
     Professional Engineers is renamed as the Texas Board of
     Professional Engineers (board).
     
SECTION 6. Amends Section 3a, Article 3271a, V.T.C.S., to make a
conforming change.

SECTION 7. Amends Section 4(d), Article 3271a, V.T.C.S., to make
a conforming change.

SECTION 8. Amends Sections 8(a) and (b), Article 3271a, V.T.C.S.,
to make conforming changes.

SECTION 9. Amends Texas Engineering Practice Act, by adding Section
9A.  Provides that Sec. 403.094(h), Government Code, does not apply
to the Professional Engineer's Fund.

SECTION 10.  Amends Section 10(a), Article 3271a, V.T.C.S., to make
conforming changes.

SECTION 11.    Amends Section 11, Article 3271a, V.T.C.S., as
follows:

     Sec. 11.  New heading: ROSTER OF LICENSED ENGINEERS.  Makes
     conforming changes.
     
SECTION 12.    Amends Section 12, Article 3271a, V.T.C.S., as
follows:

     Sec. 12.  New heading: GENERAL REQUIREMENTS FOR LICENSURE. 
     Makes conforming changes.
     
SECTION 13.    Amends Section 13(a), (b), and (d), Article 3271a,
V.T.C.S., to make conforming changes.

SECTION 14.    Amends Section 13B(a) and (c), Article 3271a,
V.T.C.S., to make conforming changes.

SECTION 15.    Amends Section 14(a), Article 3271a, V.T.C.S., to
make a conforming change.

SECTION 16.    Amends Section 15, Article 3271a, V.T.C.S., to make
conforming changes.

SECTION 17.    Amends Section 16, Article 3271a, V.T.C.S., to make
conforming changes.

SECTION 18.    Amends Section 16.1, Article 3271a, V.T.C.S., as
follows:

     Sec. 16.1.  New heading: EXPIRATION DATES OF LICENSES.  Makes
     a conforming change.
     
SECTION 19.    Amends Section 17, Article 3271a, V.T.C.S., to make
a conforming change.

SECTION 20.    Amends Section 18, Article 3271a, V.T.C.S., to make
conforming changes.

SECTION 21.    Amends Section 19(a), Article 3271, V.T.C.S., to
make a conforming change.

SECTION 22.    Amends Section 20, Article 3271a, V.T.C.S., to make
conforming changes.

SECTION 23.    Amends Section 21, Article 3271a, V.T.C.S., as
follows:

     Sec. 21.  New heading: LICENSURE BY NONRESIDENTS. Makes
     conforming changes.
     
SECTION 24.    Amends Section 22, Article 3271a, V.T.C.S., as
follows:

     Sec. 22.  New heading: DENIAL, REVOCATION, SUSPENSION,
     PROBATION, REPRIMAND, RE-ISSUANCE AND REFUSAL OF LICENSE. 
     Makes conforming changes.
     
     SECTION 25.    Amends Section 22A, Article 3271a, V.T.C.S., to make
conforming changes.

SECTION 26.    Amends Article 3271a, V.T.C.S., by adding Section
22C, as follows:

     Sec. 22C.  (a)  Authorizes the board to impose an
     administrative penalty against a person registered under this
     Act or any other person who violates this Act or a rule or
     order adopted under this Act.
     
     (b)  Authorizes the penalty for a violation to be in an
       amount not to exceed $5,000.  Provides that each day a
       violation continues or occurs is a separate violation for
       purposes of imposing a penalty.
       
       (c)  Establishes the basis on which the amount of the
       penalty is calculated.
       
       (d)  Authorizes the director of the board to hold informal
       conferences, hold peer reviews, or perform any other
       procedures, including the subpoenaing of witnesses and
       records, to determine whether a violation has occurred. 
       Authorizes the director to issue the chairman of the board
       a report that states the facts on which the determination is
       based and the director's recommendation on the imposition of
       a penalty, including a recommendation on the amount of the
       penalty.
       
       (e)  Requires the director to give written notice of the
       report to the person.  Authorizes the notice to be given by
       certified mail.  Requires the notice to include a brief
       summary of the alleged violation and a statement of the
       amount of the recommended penalty and to inform the person
       that the person has a right to a hearing on the occurrence
       of the violation, the amount of the penalty, or both the
       occurrence of the violation and the amount of the penalty.
       
       (f)  Authorizes the person to accept the determination and
       recommended penalty of the director or to make a written
       request for a hearing on the violation and its consequences
       within 20 days after the date the person receives the
       notice.
       
       (g)  Requires the board by order to approve the
       determination and impose the recommended penalty if the
       person accepts the determination and recommended penalty of
       the director.
       
       (h)  Requires the director to set a hearing and give notice
       of the hearing to the person if the person requests a
       hearing or fails to respond timely to the notice.  Requires
       the hearing to be held by an administrative law judge of the
       State Office of Administrative Hearings.  Requires the
       administrative law judge to make findings of fact and
       conclusions of law and promptly issue to the board a
       proposal for a decision about the occurrence of the
       violation and the amount of a proposed penalty.  Authorizes
       the board by order to find that a violation has occurred and
       impose a penalty or to find that no violation occurred.
       
       (i)  Requires the notice of the board's order given to the
       person under Chapter 2001, Government Code, to include a
       statement of the right of the person to judicial review of
       the order.
       
       (j)  Sets forth the actions the person is required to
       perform within 30 days of the board's order becoming final.
       
       (k)  Authorizes a person acting under Subsection (j) to stay
       enforcement of the penalty under certain conditions or to
       request the court to stay enforcement of the penalty.
       
       (l)  Authorizes the director to file with the court a
       contest to the affidavit on receipt by the director of a
       copy of an affidavit.  Requires the court to hold a hearing
       on the facts alleged in the affidavit as soon as practicable
       and to stay the enforcement of the penalty finding that the
       alleged facts are true.  Provides that the person who files
       an affidavit has the burden of proving that the person is
       financially unable to pay the amount of the penalty and to
       give a supersedeas bond.
       
       (m)  Authorizes the director to refer the matter to the
       attorney general for collection of the penalty if the person
       does not pay the penalty and the enforcement of the penalty
       is not stayed.
       
       (n)  Provides that judicial review of the order of the board
       is instituted by filing a petition as provided by Chapter
       2001G, Government Code, and is under the substantial
       evidence rule.
       
       (o)  Authorizes the court to uphold or reduce the amount of
       the penalty and order the person to pay the full or reduced
       penalty.  Requires the court to order that no penalty is
       owed if the court does not sustain the occurrence of the
       violation.
       
       (p)  Requires the court to proceed under this subsection
       when the judgment of the court becomes final.  Requires the
       court to order that the appropriate amount plus accrued
       interest be remitted to the person. Establishes the
       procedures for calculation and payment of interest. 
       Requires the court to order the release of the bond if the
       person gave a supersedeas bond and if the amount of the
       penalty is not upheld by the court.  Requires the court to
       order the release of the bond after the person pays the
       amount.
       
       (q)  Requires a penalty collected under this section to be
       remitted to the comptroller for deposit in the general
       revenue fund, except that the portion of the penalty that
       represents the costs of the board in investigating and
       prosecuting the violation shall be remitted to the board for
       enforcement purposes.
       
       (r)  Provides that all proceedings under this section are
       subject to Chapter 2001, Government Code.
       
SECTION 27.    Amends Section 23(a), Article 3271a, V.T.C.S., to
make conforming changes.

SECTION 28.    Amends Section 26, Article 3271a, V.T.C.S., to make
conforming changes.

SECTION 29.    Repealer: Section 13(d), Article 3271a, V.T.C.S.
(Applications; Fees).

SECTION 30.    Recreates the professional engineers' fund, as that
fund is described by Section 9, Article 3271a, V.T.C.S.

SECTION 31.    Effective date: September 1, 1995.  Applicable to
violations occurring on or after effective date.  

SECTION 32.  Change in law related to change in credentials does
not affect validity of certificate issued before effective date.

SECTION 33.    Emergency clause.


COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute makes changes to HB 2184 reflecting changes of a
technical nature.  The substitute changes language regarding
credentials issued licensed engineers, deleting numerous references
to "registered" and "registration" where they appear in the act. 
The substitute also adds language to allow the Board to recover the
cost of investigating and prosecuting a case through administrative
penalty.  The substitute also allows the executive director of the
Board to hold informal investigative conferences and other
procedures to ensure fair and due process.  The substitute alters
the maximum penalty per occurrence reducing potential fines from
the $5,000 contained in the original to the $3,000 contained in the
substitute.      


SUMMARY OF COMMITTEE ACTION

HB 2184 was heard in a Public Hearing on April 19, 1995.  The Chair
laid out HB 2184 and recognized Rep. Kubiak to explain the bill. 
Rep. Yarbrough offered a complete committee substitute and moved
that the full committee adopt CSHB 2184.  There was no objection. 
The Chair recognized the following person to testify as a Resource
Witness, registering neutral on the bill: 
     Mr. John R. Speed, Dep. Exec. Dir, Board of Registration for
Professional Engineers
The Chair recognized the following person to testify in favor of
the bill:
     Mr. Gerhardt Schulle, Jr., Tx. Soc. of  Professional
Engineers;
The Chair recognized Rep. Kubiak to close on the bill.  HB 2184 was
left pending in committee.  There was no objection.  HB 2184 was
considered in a Public Hearing on April 26, 1995.  Rep. Kubiak
moved to call up HB 2184 as substituted, which was pending in
committee.  There was no objection.  The Chair laid out CSHB 2184,
and recognized Rep. Kubiak.  Rep. Kubiak moved that the full
committee adopt HB 2184 as substituted, and that it be reported
favorably to the full House with the recommendation that it do pass
and be printed.  The motion prevailed by the following vote: AYES:
9, NAYS: 0, ABSENT: 0.