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.