BILL ANALYSIS C.S.S.B. 784 By: Ratliff State Affairs 4-24-95 Committee Report (Substituted) BACKGROUND Unlike many other licensing and enforcement agencies, the Texas State Board of Registration for Professional Engineers (board) does not currently have statutory authority to issue citations and monetary fines for violations of the Texas Engineering Practice Act. Consequently, the board must pursue violations through the state judicial system. PURPOSE As proposed, C.S.S.B. 784 authorizes the imposing of an administrative penalty for certain violations by an engineer. 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 Section 10(a), Article 3271a, V.T.C.S., to make conforming changes. SECTION 10. Amends Section 11, Article 3271a, V.T.C.S., as follows: Sec. 11. New heading: ROSTER OF LICENSED ENGINEERS. Makes conforming changes. SECTION 11. Amends Section 12, Article 3271a, V.T.C.S., as follows: Sec. 12. New heading: GENERAL REQUIREMENTS FOR LICENSURE. Makes conforming changes. SECTION 12. Amends Section 13(a), (b), and (d), Article 3271a, V.T.C.S., to make conforming changes. SECTION 13. Amends Section 13B(a) and (c), Article 3271a, V.T.C.S., to make conforming changes. SECTION 14. Amends Section 14(a), Article 3271a, V.T.C.S., to make a conforming change. SECTION 15. Amends Section 15, Article 3271a, V.T.C.S., to make conforming changes. SECTION 16. Amends Section 16, Article 3271a, V.T.C.S., to make conforming changes. SECTION 17. 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 18. Amends Section 17, Article 3271a, V.T.C.S., to make a conforming change. SECTION 19. Amends Section 18, Article 3271a, V.T.C.S., to make conforming changes. SECTION 20. Amends Section 19(a), Article 3271, V.T.C.S., to make a conforming change. SECTION 21. Amends Section 20, Article 3271a, V.T.C.S., to make conforming changes. SECTION 22. Amends Section 21, Article 3271a, V.T.C.S., as follows: Sec. 21. New heading: LICENSURE BY NONRESIDENTS. Makes conforming changes. SECTION 23. 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 24. Amends Section 22A, Article 3271a, V.T.C.S., to make conforming changes. SECTION 25. 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 26. Amends Section 23(a), Article 3271a, V.T.C.S., to make conforming changes. SECTION 27. Amends Section 26, Article 3271a, V.T.C.S., to make conforming changes. SECTION 28. Repealer: Section 13(d), Article 3271a, V.T.C.S. (Applications; Fees). SECTION 29. Recreates the professional engineers' fund, as that fund is described by Section 9, Article 3271a, V.T.C.S. SECTION 30. Effective date: September 1, 1995. SECTION 31. Makes application of this Act prospective. SECTION 32. Emergency clause.