SRC-ARR S.B. 1438 76(R)BILL ANALYSIS


Senate Research CenterS.B. 1438
By: Duncan
State Affairs
8/5/1999
Enrolled


DIGEST 

Currently, Texas law does not provide for a pilot project transferring
certain professional and occupational licensing boards to self-directed
semi-independent status. The pilot program changes the manner in which
regulatory agencies are accountable to their stakeholders and are charged
with operating as a business. S.B. 1438 will establish a pilot project
transferring certain professional and occupational licensing boards to
self-directed semi-independent status and would make an appropriation. 

PURPOSE

As enrolled, S.B. 1438 establishes a pilot project transferring certain
professional and occupational licensing boards to self-directed
semi-independent status and makes an appropriation. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. LEGISLATIVE INTENT. Sets forth the intent of the legislature
regarding licensing agencies.  

SECTION 2. AMENDMENT. Amends Title 132, V.T.C.S., by adding Article 8930,
as follows: 

 Art. 8930. SELF-DIRECTED SEMI-INDEPENDENT AGENCY PROJECT ACT

Sec. 1. SHORT TITLE: Self-Directed Semi-Independent Agency Project Act.

Sec. 2. AGENCY PARTICIPATION. Sets forth certain agencies to be part of the
pilot project created by this Act. 

 Sec. 3. DEFINITION. Defines "project agency."

Sec. 4. PILOT PROJECT. Requires each project agency to become self-directed
and semiindependent as specified in this Act. Requires each project agency
to continue to be a state agency, as that term is defined in Section
2001.003(7), Government Code. Provides that this Act is subject to Chapter
325, Government Code (Texas Sunset Act). Provides that this Act expires
September 1, 2005, unless continued in existence as provided by that
chapter.  

Sec. 5. GENERAL DUTIES OF ALL PROJECT AGENCIES. Requires each project
agency to have the duties prescribed by SECTIONS 6 through 9 of this Act,
in addition to the duties enumerated in the enabling legislation
specifically applicable to each project agency.  

Sec. 6. BUDGET. Requires the project agency to adopt a budget annually
using generally accepted accounting principles. Requires the budget to be
reviewed and approved only by the project agency's  governing board
notwithstanding any other provision of law, including the General
Appropriations Act. Provides that no costs shall be incurred by the general
revenue fund. Requires a project agency to be responsible for all costs,
both direct and  indirect. Requires a project agency to keep financial and
statistical information as necessary to disclose completely and accurately
the financial condition and operation of the project agency. Provides that
the Texas State Board of Public Accountancy shall annually remit $500,000
to the general revenue fund, the Texas Board of Professional Engineers
shall annually remit $50,000 to the general revenue fund, and the Texas
Board of Architectural Examiners to shall annually remit $700,000 to the
general revenue fund.  

Sec. 7. AUDITS. Provides that  nothing in this Act shall affect the duty of
the state auditor (auditor) to audit a project agency. Requires the auditor
to enter into a contract and schedule with each project agency to conduct
audits, including financial reports and performance audits. Requires costs
incurred in performing such audits to be reimbursed by the project agency. 

Sec. 8. REPORTING REQUIREMENTS. Requires a project agency to submit to the
legislature and the governor by the first day of the regular session of the
legislature a report describing all of the agency's activities in the
previous biennium. Requires the report to include certain items. Sets forth
additional reporting requirements.  

Sec. 9. DISPOSITION OF FEES COLLECTED. Requires the project agency to
collect a professional fee of $200 from its licensees annually which shall
be remitted to the state, if provided in a project agency's enabling
legislation. Requires the project agency to collect a scholarship fee of
$10 annually and shall remit it to the state. 

Sec. 10. GENERAL POWERS OF ALL PROJECT AGENCIES. Requires each project
agency to have the powers described in SECTIONS 11 through 14 of this Act,
in addition to the powers enumerated in each project agency's enabling
legislation.  

Sec. 11. ABILITY TO CONTRACT. Authorizes a project agency to enter into
contracts and do all other acts incidental to those contracts that are
necessary for the administration of its affairs and for the attainment of
its purpose, to carry out and promote the objectives of this Act; provided,
however, that any indebtedness, liability, or obligation of the project
agency shall not create certain liability.  

 Sec. 12. PROPERTY. Authorizes a project agency to take certain action
regarding property.  

Sec. 13. SUITS. Authorizes the office of the attorney general to represent
a project agency in any litigation. Authorizes the attorney general to
assess reasonable attorney's fees associated with any litigation. 

Sec. 14. FEES. Authorizes each project agency to set the amount of fees by
statute or rule as necessary for the purpose of carrying out the functions
of the project agency, subject to the limitation, if any, in the applicable
enabling legislation. 

Sec. 15. POST-PARTICIPATION LIABILITY. Sets forth certain provisions
regarding postparticipation liability of agencies. 

Sec. 16. OPEN GOVERNMENT. Provides that subject to the confidentiality
provisions of a project agency's enabling legislation, meetings and records
are subject to Chapter 552, Government Code.  

Sec. 17. MEMBERSHIP IN EMPLOYEE RETIREMENT SYSTEM. Provides that the
employees of the project agencies are members of the Employees Retirement
System of Texas under Chapter 812, Government Code, and transition to
independent status shall have no effect on their membership. 

SECTION 3. AMENDMENT.  Amends Section 22A, Article 41a-1, V.T.C.S. (Public
Accountancy Act of 1991), as follows:  

 Sec. 22A. New heading: ENFORCEMENT COMMITTEES. Deletes existing Subsection
(b) regarding special funds. 

SECTION 4. AMENDMENT.  Amends Section 4A, Article 249a, V.T.C.S., to delete
text regarding certain expenses and the use of general revenue funds.  

SECTION 5. APPROPRIATIONS. Sets forth certain requirements regarding
appropriations. 

SECTION 6. EFFECT OF TRANSITION TO INDEPENDENT STATUS. Prohibits the
transfer of a project agency under Article 8930, V.T.C.S., as added by this
Act, to semi-independent status and the expiration of semi-independent
status from acting to cancel, suspend, or prevent certain actions. Requires
each project to continue to have and exercise the powers and duties
allocated to its enabling legislation, except as specifically amended by
this Act. Provides that title to items used by each respective project
agency is transferred to each agency. Provides that nothing in this Act
shall have any effect on property already owned by the project agencies.
Authorizes each project agency to continue to occupy its current premises
at the rates prescribed by the General Services Commission for indirect
cost and bond debt services for the duration of the pilot project. Requires
examination fees collected prior to September 1, 1999 for examinations
conducted after September 1, 1999, to be made available to the project
agency for costs associated with conducting the examination.  

SECTION 7. Effective date: September 1, 1999.

SECTION 8. Emergency clause.