By Wilson H.B. No. 3078 76R9228 T A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to a pilot project to create self directed semi 1-3 independent state agencies. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. PREAMBLE. (a) Several agencies of the State of 1-6 Texas regulate specific professions in the public interest. While 1-7 these licensing agencies perform important public functions, the 1-8 populations most directly affected by their activities, the members 1-9 of the professions, are small in comparison to the population of 1-10 the state. While these agencies may collect and remit the $200 1-11 professional fee to the State, their operations are supported by 1-12 examination, licensing and other fees paid by the professionals 1-13 they regulate. 1-14 (b) The State controls the activities of these licensing 1-15 agencies in many ways. The Governor appoints the Board members who 1-16 run these agencies. These agencies are subject to the Open 1-17 Meetings Act and the Open Records Act. The decisions of these 1-18 agencies are procedurally and substantively guided by the 1-19 Administrative Procedure Act, and ultimately the courts of the 1-20 State of Texas can review and reverse their decisions. All 1-21 contested cases brought by these agencies are tried before 1-22 Administrative Law Judges at the State Office of Administrative 1-23 Hearings. They are represented in the courts of the State of Texas 1-24 by the Attorney General. They are subject to sunset review, and 2-1 file annual reports with the governor. They are audited by the 2-2 State Auditor's Office and several are subject to the Internal 2-3 Auditing Act. 2-4 (c) In addition, the agencies do not have unfettered 2-5 discretion to raise funds from the public. The legislature has set 2-6 specific limits on the amounts that may be charged the regulated 2-7 profession for the services provided by the agency. 2-8 (d) These agencies perform functions vital to the interests 2-9 of the State and of its people. They regulate their respective 2-10 professions to ensure that persons holding professional licenses 2-11 meet the highest standards of competence and professionalism. The 2-12 public relies on these professionals for their expert judgment on 2-13 matters ranging from the soundness of public structures to the 2-14 financial solvency of a potential investment. The public has a 2-15 vital interest in maintaining competence and improving the quality 2-16 of the licensees of these agencies. 2-17 (e) At the same time, the controls on these licensing 2-18 agencies ensure that the functions of these agencies are carried 2-19 out efficiently and effectively. Texas has a number of semi 2-20 independent agencies that carry out the functions of the state in 2-21 other areas well and in the public interest with far fewer controls 2-22 than those enumerated above. 2-23 (f) Therefore, the legislature intends through this Act to 2-24 establish a pilot program to assess the practicality and efficiency 2-25 of changing certain professional and occupational licensing boards 2-26 to semi-independent self-directed status. The state agencies 2-27 involved in this pilot project have well-defined missions and 3-1 well-run Boards and administration. The pilot project will run for 3-2 a specified time and will expire if not renewed. If successful, 3-3 approximately 100 employees will be removed from the state payroll 3-4 and the administrative burden of state government will be reduced. 3-5 SECTION 2. NAME. This Act shall be known as the Self 3-6 Directed Semi Independent Project Act. 3-7 SECTION 3. SCOPE. (a) The following agencies shall be part 3-8 of the pilot project created by this Act: 3-9 (1) The Texas State Board of Public Accountancy, 3-10 created by the Public Accountancy Act of 1991, 3-11 Art. 41a-1 Tex. Rev. Civ. Stat.; 3-12 (2) The Texas Board of Professional Engineers, created 3-13 by the Texas Engineering Practice Act, Art. 3271a 3-14 Tex. Rev. Civ. Stat.; 3-15 (3) The Texas Board of Architectural Examiners, 3-16 created by Art. 249a, Tex. Rev. Civ. Stat.; 3-17 (4) The Texas Board of Tax Professional Examiners, 3-18 created by Art. 8885, Tex. Rev. Civ. Stat.; 3-19 (5) The Texas State Board of Professional Land 3-20 Surveying, created by Art. 5282c, Tex. Rev. Civ. 3-21 Stat. 3-22 (b) These agencies shall be called the "project agencies." 3-23 SECTION 3. PILOT PROJECT. (a) Notwithstanding any other 3-24 provision of law, each of the project agencies shall become self 3-25 directed and semi independent as specified in this Act. 3-26 (b) Each of the Project Agencies shall continue to have and 3-27 exercise the powers and duties allocated to it in its enabling 4-1 legislation, except as specifically amended herein. 4-2 (c) Each of the Project Agencies shall continue to be "state 4-3 agencies," as that term is defined in Section 2001.003(7), Tex. 4-4 Gov't Code. 4-5 (d) This Act shall be subject to Chapter 325, Tex. Gov't 4-6 Code. Unless continued in existence as provided by that chapter, 4-7 the Pilot Project and the amendments this Act makes to other 4-8 statutes shall expire by 2005. 4-9 SECTION 4. GENERAL DUTIES OF ALL PROJECT AGENCIES. (a) In 4-10 addition to the duties enumerated in the enabling legislation 4-11 specifically applicable to each of the project agencies shall 4-12 comply with this section. 4-13 (b) Budget. (1) Each Project Agency shall adopt a budget 4-14 annually using generally accepted accounting principles and this 4-15 budget shall be reviewed and approved only by the Project Agency's 4-16 governing Board notwithstanding any other provision of law, 4-17 including but not limited to the General Appropriations Act. 4-18 (2) Each Project Agency shall keep financial and 4-19 statistical information as necessary to disclose completely and 4-20 accurately the financial condition and operation of the Project 4-21 Agency. 4-22 (c) Audits. Nothing in this Act shall affect the duty of 4-23 the State auditor to audit public accounts. The State auditor 4-24 shall enter into a contract and schedule with the Project Agencies 4-25 to conduct these audits, including financial reports and 4-26 performance audits. 4-27 (d) Reporting Requirements. The Project Agencies shall 5-1 submit to the Legislature and the Governor by the first day of the 5-2 regular session of the Legislature a report describing all of its 5-3 activities in the previous biennium. This report shall include: 5-4 (1) an audit required by Subsection (b) of this 5-5 section; 5-6 (2) a financial report of the previous fiscal year; 5-7 (3) a description of any changes in licensing fees; 5-8 (4) a report on the number of exam candidates, 5-9 licensees, certificate holders, enforcement activities and any 5-10 changes in those figures; and 5-11 (5) a description of all new rules adopted or 5-12 repealed. 5-13 (e) Disposition of Moneys. (1) If provided in each Project 5-14 Agency's enabling legislation, the Project Agencies shall collect a 5-15 professional fee of $200 from each of its respective licensees 5-16 annually which shall be remitted to the State. 5-17 (2) All moneys other than the $200 professional fee 5-18 collected or received by a Project Agency shall be deposited into 5-19 an account in a depository institution insured by the Federal 5-20 Deposit Insurance Corporation selected by the Project Agency. 5-21 SECTION 5. GENERAL POWERS OF ALL PROJECT AGENCIES. (a) In 5-22 addition to the powers enumerated in each Project Agency's enabling 5-23 legislation, each Project Agency shall have the following powers. 5-24 (b) Ability to Contract. To carry out and promote the 5-25 objectives of this Act, the project agencies may enter into 5-26 contracts and do all other acts incidental to those contracts that 5-27 are necessary for the administration of their affairs and for the 6-1 attainment of their purposes. Provided however that any 6-2 indebtedness, liability, or obligation of the project agencies does 6-3 not: 6-4 (1) create a debt or other liability of the state or 6-5 any other entity other than the project agency; or 6-6 (2) create any personal liability on the part of the 6-7 members of the board of the project agencies or its employees. 6-8 (c) Property. The Project Agencies may: 6-9 (1) acquire by purchase, lease, gift or in any other 6-10 manner provided by law and maintain, use and operate any and all 6-11 property of any kind, real, personal or mixed, or any interest 6-12 therein, necessary or convenient to the exercise of the powers, 6-13 rights, privileges and functions; 6-14 (2) sell or otherwise dispose of any property of any 6-15 kind, real, personal or mixed, or any interest therein, which it 6-16 determines is not necessary or convenient to the exercise of the 6-17 powers, rights, privileges and functions; 6-18 (3) construct, extend, improve, maintain and 6-19 reconstruct, to cause to be constructed, extended, improved, 6-20 maintained and reconstructed, and to use and operate, any and all 6-21 facilities of any kind necessary or convenient to the exercise of 6-22 powers, rights, privileges and functions; and 6-23 (4) borrow money, if necessary or convenient to the 6-24 exercise of powers, rights, privileges and functions, for a period 6-25 not to exceed five years as may be authorized from time to time by 6-26 an affirmative vote of a two thirds majority of the project 6-27 agency's board. 7-1 (d) Capacity. Each of the project agencies may sue and be 7-2 sued in its own name, provided however that the office of the 7-3 attorney general shall represent the project agency in any 7-4 litigation. 7-5 (e) Subject to the limitations, if any, in the applicable 7-6 enabling legislation, each of the project agencies may set the 7-7 amount of fees by statute or rule necessary for the purpose of 7-8 carrying out the functions of that project agency. 7-9 SECTION 6. TRANSITION AND EFFECT OF TRANSITION TO 7-10 INDEPENDENT STATUS. (a) Start up. To provide a reasonable period 7-11 for each of the project agencies to establish themselves as semi 7-12 independent and self directed after the conclusion of the fiscal 7-13 year 1999, each of the project agencies shall be granted an amount 7-14 equal to each agency's appropriated amount for fiscal year 1999. 7-15 (b) Liability. The project agencies, their board members, 7-16 employees, agents and volunteers, shall have and/or shall continue 7-17 to have protection from liability under the respective enabling 7-18 legislations, the common law and/or the Civil Practices and 7-19 Remedies Code, Chapter 104. 7-20 (c) Open Government. Subject to the confidentiality 7-21 provisions of each of the project agencies' enabling legislation: 7-22 (1) meetings of the project agencies continue to be 7-23 subject to Chapter 551, TEX. GOV'T CODE; and 7-24 (2) records maintained by the project agencies 7-25 continue to be subject to Chapter 552, TEX. GOV'T CODE. 7-26 (d) Transfer of the project agencies listed in Section 2 to 7-27 independent status and the expiration of independent status shall 8-1 not act to cancel, suspend, or prevent: 8-2 (1) any debt owed to or by the project agency; 8-3 (2) any fine, tax, penalty, or obligation of any 8-4 party; 8-5 (3) any contract or other obligation of any party; or 8-6 (4) any action taken by the project agencies in 8-7 administration or enforcement of their duties. 8-8 (e) Title to all supplies, materials, records, equipment, 8-9 books, papers and facilities used by each project agency shall by 8-10 this Act be transferred to each respective project agency in fee 8-11 simple. Nothing in this Act shall have any effect on property 8-12 already owned by the project agencies. At its sole option, each 8-13 project agency may continue to occupy its current premises at the 8-14 rates prescribed by the General Services Commission for indirect 8-15 costs, bond debt service, for the duration of the pilot project. 8-16 (f) Membership in Employee Retirement System. All present 8-17 and future employees of the project agencies shall be members of 8-18 Employee Retirement System under Chapter 812.001, TEX. GOV'T CODE 8-19 and transition to independent status shall have no effect their 8-20 membership. 8-21 SECTION 7. AMENDMENTS TO THE PUBLIC ACCOUNTANCY ACT OF 1991. 8-22 (a) Section 7(a) and (b) of the Public Accountancy Act are amended 8-23 to read as follows: 8-24 (a) The fees received by the Board under this Act shall be 8-25 deposited in a depository institution at the direction of the Board 8-26 and may be used only for the administration of this Act. 8-27 (b) Section 7 (c) of the Public Accountancy Act is 9-1 relettered as Section 7(b). 9-2 (c) Section 22(b) of the Public Accountancy Act is repealed. 9-3 SECTION 8. AMENDMENTS TO THE ENGINEERING PRACTICE ACT. 9-4 Section 9 of the Engineering practice Act is amended to read as 9-5 follows: 9-6 Section 9. RECEIPTS AND DISBURSEMENTS. The Executive 9-7 Director of the Board shall receive and account for all moneys 9-8 derived under the provisions of the Act. The fees received by the 9-9 Board under this Act shall be deposited in a depositary institution 9-10 at direction of the Board and may be used only for the 9-11 administration of the Act and other duties authorized by law. The 9-12 Board shall employ an Executive Director who shall receive such 9-13 compensation as annually established by the Board. The Executive 9-14 Director shall employ such engineering administrative and clerical 9-15 staff or other assistants as are necessary for the proper 9-16 implementation of the Act and other duties authorized by law, and 9-17 may make expenditures from the depository institution consistent 9-18 with this purpose. 9-19 SECTION 9. AMENDMENTS TO ARTS. 249A, 249C, 249E, TEX. REV. 9-20 CIV. STAT. (a) Section 4(a) of Art. 249a, TEX. REV. CIV. STAT. is 9-21 amended to read as follows: 9-22 (a) The fees received by the Board under this Act shall be 9-23 deposited in a depository institution at the direction of the Board 9-24 and may be used only for the administration of this Act. 9-25 (b) Section 4A(b) and (c) Art. 249a, TEX. REV. CIV. STAT. 9-26 are repealed. 9-27 (c) Section 10(b) of Art. 249c, TEX. REV. CIV. STAT. is 10-1 amended to read as follows: 10-2 (b) The fees received by the Board under this article shall 10-3 be deposited in a depository institution at the direction of the 10-4 Board and may be used only for the administration of this article. 10-5 (d) Section 10(6) of Art. 249e, TEX. REV. CIV. STAT. is 10-6 amended to read as follows: 10-7 Sec. 6: Fund; Fees. (a) The fees received by the Board 10-8 under this article shall be deposited in a depository institution 10-9 at the direction of the Board and may be used only for the 10-10 administration of this article 10-11 (b) The Board shall set the following fees in amounts that 10-12 are reasonable and necessary to cover the costs of the 10-13 administration of this article. 10-14 (1) A registration application fee in an amount not to 10-15 exceed $100; 10-16 (2) An annual registration renewal fee in an amount 10-17 not to exceed $100; 10-18 (3) A reciprocal registration fee in an amount not to 10-19 exceed $100; and 10-20 (4) An examination fee. 10-21 (c) The Board may set fees for the following in amounts that 10-22 are reasonable and necessary to cover the costs of the 10-23 administration of this article: 10-24 (1) A duplicate registration certificate; 10-25 (2) A roster of registered interior designers; 10-26 (3) The restoration of a revoked or suspended 10-27 registration certificate; and 11-1 (4) Any other action of the Board involving an 11-2 administrative expense. 11-3 SECTION 10. AMENDMENTS TO ART. 8885, TEX. REV. CIV. STAT. 11-4 Section 8 of the Property Taxation Professional Certification Act 11-5 is amended to read as follows: 11-6 Sec. 8. RECEIPT AND ACCOUNTING OF MONEY: RECORD OF 11-7 PROCEEDINGS: ROSTER OF REGISTRANTS. The Executive Director of the 11-8 Board shall receive and account for all moneys derived under the 11-9 provisions of the Act. The fees received by the Board under this 11-10 Act shall be deposited in a depositary institution at the direction 11-11 of the Board and may be used only for the administration of the Act 11-12 and other duties authorized by law. The board shall keep an 11-13 accurate record of all proceedings, which shall be available to the 11-14 public at all times. The board shall also maintain a roster of all 11-15 persons registered with the Board showing their names, BTPA number, 11-16 place of employment and classification placed on file with the 11-17 Secretary of State. Copies of the roster shall be made available 11-18 to persons registered under this Act and to the public on request. 11-19 SECTION 11. AMENDMENTS TO ART. 5282c, TEX. REV. CIV. STAT. 11-20 (a) Section 10 of Art. 5282c is repealed. 11-21 (b) Section 13 of Art. 5282c is amended to read as follows: 11-22 Section 13. RECEIPTS AND DISBURSEMENTS. The director of the 11-23 Board shall receive and account for all fees received under the 11-24 provisions of this Act and shall deposit these funds in a 11-25 depository institution at the direction of the Board to be used 11-26 only for the administration of this Act. 11-27 (c) Section 23B(c) of Art 52.82c is repealed. 12-1 SECTION 12. This Act takes effect September 1, 1999. 12-2 SECTION 13. The importance of this legislation and the 12-3 crowded condition of the calendars in both houses create an 12-4 emergency and an imperative public necessity that the 12-5 constitutional rule requiring bills to be read on three several 12-6 days in each house be suspended, and this rule is hereby suspended.