AN ACT
1-1 relating to a pilot project transferring certain professional and
1-2 occupational licensing boards to self-directed semi-independent
1-3 status; making an appropriation.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. LEGISLATIVE INTENT. (a) Several agencies of the
1-6 State of Texas regulate specific professions in the public
1-7 interest. While these licensing agencies perform important public
1-8 functions, the populations most directly affected by their
1-9 activities, the members of the professions, are small in comparison
1-10 to the population of the state. While the agencies may collect and
1-11 remit the $200 professional fee to the state, their operations are
1-12 supported by examination, licensing, and other fees paid by the
1-13 professionals they regulate.
1-14 (b) The state controls the activities of the licensing
1-15 agencies in many ways. The governor appoints the board members who
1-16 run the agencies. The agencies are subject to the open meetings
1-17 law, Chapter 551, Government Code, and the public information law,
1-18 Chapter 552, Government Code. The decisions of the agencies are
1-19 procedurally and substantively guided by the Administrative
1-20 Procedure Act, Chapter 2001, Government Code, and ultimately the
1-21 courts of the State of Texas can review and reverse their
1-22 decisions. All contested cases brought by the agencies are tried
1-23 before administrative law judges of the State Office of
1-24 Administrative Hearings. The agencies are represented in the
2-1 courts of the State of Texas by the attorney general. They are
2-2 subject to sunset review and file annual reports with the governor.
2-3 They are audited by the state auditor and several are subject to
2-4 the Texas Internal Auditing Act, Chapter 2102, Government Code.
2-5 (c) In addition, the agencies do not have unfettered
2-6 discretion to raise funds from the public. The legislature has set
2-7 specific limits on the amounts that may be charged the regulated
2-8 profession for the services provided by the agencies.
2-9 (d) The agencies perform functions vital to the interest of
2-10 the state and of its people. They regulate their respective
2-11 professions to ensure that persons holding professional licenses
2-12 meet the highest standards of competence and professionalism. The
2-13 public relies on these professionals for their expert judgment on
2-14 matters ranging from the soundness of public structures to the
2-15 financial solvency of a potential investment. The public has a
2-16 vital interest in maintaining competence and improving the quality
2-17 of the licensees of the agencies.
2-18 (e) At the same time, the controls on the licensing agencies
2-19 ensure that the functions of the agencies are carried out
2-20 efficiently and effectively. Texas has a number of
2-21 semi-independent agencies that carry out the functions of the state
2-22 in other areas well and in the public interest with far fewer
2-23 controls than those enumerated in this section.
2-24 (f) Therefore, the legislature intends through this Act to
2-25 establish a pilot project to assess the practicality and efficiency
2-26 of changing certain professional and occupational licensing boards
3-1 to semi-independent self-directed status. The state agencies
3-2 involved in this pilot project have well-defined missions and
3-3 well-run boards and administrations. The pilot project will run
3-4 for a specified time and will expire if not renewed. If
3-5 successful, approximately 100 employees will be removed from the
3-6 state payroll and the administrative burden of state government
3-7 will be reduced.
3-8 SECTION 2. AMENDMENT. Title 132, Revised Statutes, is
3-9 amended by adding Article 8930 to read as follows:
3-10 Art. 8930. SELF-DIRECTED SEMI-INDEPENDENT AGENCY PROJECT ACT
3-11 Sec. 1. SHORT TITLE. This Act shall be known as the
3-12 Self-Directed Semi-Independent Agency Project Act.
3-13 Sec. 2. AGENCY PARTICIPATION. The following agencies shall
3-14 be part of the pilot project created by this Act:
3-15 (1) the Texas State Board of Public Accountancy;
3-16 (2) the Texas Board of Professional Engineers; and
3-17 (3) the Texas Board of Architectural Examiners.
3-18 Sec. 3. DEFINITION. In this Act, "project agency" means an
3-19 agency listed in Section 2 of this Act.
3-20 Sec. 4. PILOT PROJECT. (a) Notwithstanding any other
3-21 provision of law, each project agency shall become self-directed
3-22 and semi-independent as specified in this Act.
3-23 (b) Each project agency shall continue to be a state agency,
3-24 as that term is defined in Section 2001.003(7), Government Code.
3-25 (c) This Act is subject to Chapter 325, Government Code
3-26 (Texas Sunset Act). Unless continued in existence as provided by
4-1 that chapter, this Act expires September 1, 2003.
4-2 Sec. 5. GENERAL DUTIES OF ALL PROJECT AGENCIES. In addition
4-3 to the duties enumerated in the enabling legislation specifically
4-4 applicable to each project agency, each project agency shall have
4-5 the duties prescribed by Sections 6 through 9 of this Act.
4-6 Sec. 6. BUDGET. (a) A project agency shall adopt a budget
4-7 annually using generally accepted accounting principles. The
4-8 budget shall be reviewed and approved only by the project agency's
4-9 governing board notwithstanding any other provision of law,
4-10 including the General Appropriations Act. No costs shall be
4-11 incurred by the general revenue fund. A project agency shall be
4-12 responsible for all costs, both direct and indirect.
4-13 (b) A project agency shall keep financial and statistical
4-14 information as necessary to disclose completely and accurately the
4-15 financial condition and operation of the project agency.
4-16 (c) The Texas State Board of Public Accountancy shall
4-17 annually remit $500,000 to the general revenue fund, the Texas
4-18 Board of Professional Engineers shall annually remit $50,000 to the
4-19 general revenue fund, and the Texas Board of Architectural
4-20 Examiners shall annually remit $700,000 to the general revenue
4-21 fund.
4-22 Sec. 7. AUDITS. Nothing in this Act shall affect the duty
4-23 of the State Auditor to audit a project agency. The State Auditor
4-24 shall enter into a contract and schedule with each project agency
4-25 to conduct audits, including financial reports and performance
4-26 audits. Costs incurred in performing such audits shall be
5-1 reimbursed by the project agency.
5-2 Sec. 8. REPORTING REQUIREMENTS. (a) A project agency shall
5-3 submit to the legislature and the governor by the first day of the
5-4 regular session of the legislature a report describing all of the
5-5 agency's activities in the previous biennium. The report shall
5-6 include:
5-7 (1) an audit required by Section 7 of this Act;
5-8 (2) a financial report of the previous fiscal year;
5-9 (3) a description of any changes in licensing fees;
5-10 (4) a report on the number of examination candidates,
5-11 licensees, certificate holders, and enforcement activities and any
5-12 changes in those figures; and
5-13 (5) a description of all new rules adopted or
5-14 repealed.
5-15 (b) In addition to the reporting requirements of Subsection
5-16 (a) of this section, each project agency shall report annually, not
5-17 later than November 1, to the governor, to the committee of each
5-18 house of the legislature that has jurisdiction over appropriations,
5-19 and to the Legislative Budget Board the following:
5-20 (1) the salary for all project agency personnel and
5-21 the total amount of per diem expenses and travel expenses paid for
5-22 all agency employees;
5-23 (2) the total amount of per diem expenses and travel
5-24 expenses paid for each member of the governing body of each project
5-25 agency;
5-26 (3) each project agency's operating plan and budget
6-1 covering a two-year period; and
6-2 (4) a detailed report of all revenue received and all
6-3 expenses incurred by the project agency in the previous 12 months.
6-4 Sec. 9. DISPOSITION OF FEES COLLECTED. If provided in a
6-5 project agency's enabling legislation, the project agency shall
6-6 collect a professional fee of $200 from its licensees annually
6-7 which shall be remitted to the state. If provided in a project
6-8 agency's enabling legislation, the project agency shall collect a
6-9 scholarship fee of $10 annually from its licensees and shall remit
6-10 it to the state.
6-11 Sec. 10. GENERAL POWERS OF ALL PROJECT AGENCIES. In
6-12 addition to the powers enumerated in each project agency's enabling
6-13 legislation, each project agency shall have the powers described in
6-14 Sections 11 through 14 of this Act.
6-15 Sec. 11. ABILITY TO CONTRACT. To carry out and promote the
6-16 objectives of this Act, a project agency may enter into contracts
6-17 and do all other acts incidental to those contracts that are
6-18 necessary for the administration of its affairs and for the
6-19 attainment of its purposes; provided, however, that any
6-20 indebtedness, liability, or obligation of the project agency shall
6-21 not:
6-22 (1) create a debt or other liability of the state or
6-23 any other entity other than the project agency; or
6-24 (2) create any personal liability on the part of the
6-25 members of the board of the project agency or its employees.
6-26 Sec. 12. PROPERTY. A project agency may acquire by lease,
7-1 and maintain, use, and operate, any real, personal, or mixed
7-2 property necessary to the exercise of the powers, rights,
7-3 privileges, and functions of the agency.
7-4 Sec. 13. SUITS. The office of the attorney general shall
7-5 represent a project agency in any litigation. The attorney general
7-6 may assess and collect from the project agency reasonable
7-7 attorney's fees associated with any litigation under this section.
7-8 Sec. 14. FEES. Subject to the limitations, if any, in the
7-9 applicable enabling legislation, each project agency may set the
7-10 amount of fees by statute or rule as necessary for the purpose of
7-11 carrying out the functions of the project agency.
7-12 Sec. 15. POST-PARTICIPATION LIABILITY. (a) If a state
7-13 agency no longer has status under this Act as a self-directed
7-14 semi-independent project agency either because of the expiration of
7-15 this Act or for any other reason, the agency shall be liable for
7-16 any expenses or debts incurred by the agency during the time the
7-17 agency participated in the pilot project. The agency's liability
7-18 under this section includes liability for any lease entered into by
7-19 the agency. The state is not liable for any expense or debt
7-20 covered by this subsection, and money from the general revenue fund
7-21 may not be used to repay the expense or debt.
7-22 (b) If a state agency no longer has status under this Act as
7-23 a self-directed semi-independent project agency either because of
7-24 the expiration of this Act or for any other reason, ownership of
7-25 any property or other asset acquired by the agency during the time
7-26 the agency participated in the pilot project shall be transferred
8-1 to the state.
8-2 Sec. 16. OPEN GOVERNMENT. Subject to the confidentiality
8-3 provisions of a project agency's enabling legislation:
8-4 (1) meetings of the project agency are subject to
8-5 Chapter 551, Government Code; and
8-6 (2) records maintained by the project agency are
8-7 subject to Chapter 552, Government Code.
8-8 Sec. 17. MEMBERSHIP IN EMPLOYEE RETIREMENT SYSTEM.
8-9 Employees of the project agencies are members of the Employees
8-10 Retirement System of Texas under Chapter 812, Government Code, and
8-11 transition to independent status shall have no effect on their
8-12 membership.
8-13 SECTION 3. AMENDMENT. Section 22A, Public Accountancy Act
8-14 of 1991 (Article 41a-1, Vernon's Texas Civil Statutes), is amended
8-15 to read as follows:
8-16 Sec. 22A. ENFORCEMENT COMMITTEES[; ENFORCEMENT FUND].
8-17 [(a)] The board may appoint enforcement committees from its
8-18 membership and may adopt rules consistent with this Act as
8-19 necessary for the performance of each committee's duties. An
8-20 enforcement committee shall consider and make recommendations to
8-21 the full board on matters relating to the enforcement of this Act
8-22 and the rules adopted in accordance with this Act. At least one
8-23 member of the board who is a public representative member must
8-24 serve on each enforcement committee.
8-25 [(b) A special fund is established for the exclusive use of
8-26 the board to be known as the public accountancy enforcement fund.
9-1 The fund may be used only to finance the enforcement functions
9-2 performed under this Act. Money received by the board from a fee
9-3 increase adopted under Section 9(g) of this Act and money related
9-4 to an administrative penalty and received by the board under
9-5 Section 21D of this Act shall be deposited in the fund. The
9-6 comptroller is the custodian of the fund. The comptroller shall
9-7 issue warrants from the fund supported only by vouchers signed by
9-8 the chairman and the executive director. The fund shall be
9-9 appropriated to the board by the legislature.]
9-10 SECTION 4. AMENDMENT. Section 4A, Chapter 478, Acts of the
9-11 45th Legislature, Regular Session, 1937 (Article 249a, Vernon's
9-12 Texas Civil Statutes), is amended to read as follows:
9-13 Sec. 4A. [(a)] Each member of the Board is entitled to a
9-14 [the] per diem [set by legislative appropriation] for each day that
9-15 the member engages in the business of the Board. A member is
9-16 entitled to compensation for travel expenses, including food,
9-17 lodging, and transportation expenses[, as provided by the General
9-18 Appropriations Act].
9-19 [(b) The per diem and expenses of the members of the Board
9-20 shall be paid from the Architectural Examiners Fund.]
9-21 [(c) General revenue funds may not be used for the
9-22 administration of this Act except as provided by the General
9-23 Appropriations Act.]
9-24 SECTION 5. APPROPRIATIONS. To provide a reasonable period
9-25 for each project agency under Article 8930, Revised Statutes, as
9-26 added by this Act, to establish itself as semi-independent and
10-1 self-directed after the conclusion of fiscal year 1999, each
10-2 project agency is appropriated an amount equal to 50 percent of
10-3 that agency's appropriated amount for fiscal year 1999. This
10-4 appropriation shall be repaid to the general revenue fund by the
10-5 project agency as funds become available.
10-6 SECTION 6. EFFECT OF TRANSITION TO INDEPENDENT STATUS.
10-7 (a) The transfer of a project agency under Article 8930, Revised
10-8 Statutes, as added by this Act, to semi-independent status and the
10-9 expiration of semi-independent status shall not act to cancel,
10-10 suspend, or prevent:
10-11 (1) any debt owed to or by the project agency;
10-12 (2) any fine, tax, penalty, or obligation of any
10-13 party;
10-14 (3) any contract or other obligation of any party; or
10-15 (4) any action taken by the project agency in
10-16 administration or enforcement of its duties.
10-17 (b) Each project agency shall continue to have and exercise
10-18 the powers and duties allocated to it in its enabling legislation,
10-19 except as specifically amended by this Act.
10-20 (c) Title to all supplies, materials, records, equipment,
10-21 books, papers, and facilities used by each project agency is
10-22 transferred to each respective project agency in fee simple.
10-23 Nothing in this Act shall have any effect on property already owned
10-24 by the project agencies. At its sole option, each project agency
10-25 may continue to occupy its current premises at the rates prescribed
10-26 by the General Services Commission for indirect costs and bond debt
11-1 service for the duration of the pilot project.
11-2 (d) Examination fees collected prior to September 1, 1999,
11-3 for examinations conducted after September 1, 1999, shall be made
11-4 available to the project agency for costs associated with
11-5 conducting the examinations.
11-6 SECTION 7. EFFECTIVE DATE. This Act takes effect September
11-7 1, 1999.
11-8 SECTION 8. EMERGENCY. The importance of this legislation
11-9 and the crowded condition of the calendars in both houses create an
11-10 emergency and an imperative public necessity that the
11-11 constitutional rule requiring bills to be read on three several
11-12 days in each house be suspended, and this rule is hereby suspended.
S.B. No. 1438
________________________________ ________________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1438 passed the Senate on
April 26, 1999, by a viva-voce vote; May 28, 1999, Senate refused
to concur in House amendments and requested appointment of
Conference Committee; May 29, 1999, House granted request of the
Senate; May 30, 1999, Senate adopted Conference Committee Report by
a viva-voce vote; passed subject to the provisions of Article III,
Section 49a, of the Constitution of Texas.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1438 passed the House, with
amendments, on May 25, 1999, by a non-record vote; May 29, 1999,
House granted request of the Senate for appointment of Conference
Committee; May 30, 1999, House adopted Conference Committee Report
by a non-record vote; passed subject to the provisions of Article
III, Section 49a, of the Constitution of Texas.
_______________________________
Chief Clerk of the House
Approved:
________________________________ I, Carole Keeton Rylander,
Date Comptroller of Public Accounts,
do hereby certify that the
amounts appropriated in the
herein S.B. No. 1438, Regular
________________________________ Session, 76th Legislature,
Governor are within the amount estimated
to be available in the affected
fund.
Certified _____________, 1999.
_______________________________
Comptroller of Public Accounts