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.