By: Duncan S.B. No. 1438
99S0726/1
A BILL TO BE ENTITLED
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;
3-17 (3) the Texas Board of Architectural Examiners;
3-18 (4) the Board of Tax Professional Examiners; and
3-19 (5) the Texas Board of Professional Land Surveying.
3-20 Sec. 3. DEFINITION. In this Act, "project agency" means an
3-21 agency listed in Section 2 of this Act.
3-22 Sec. 4. PILOT PROJECT. (a) Notwithstanding any other
3-23 provision of law, each project agency shall become self-directed
3-24 and semi-independent as specified in this Act.
3-25 (b) Each project agency shall continue to be a state agency,
3-26 as that term is defined in Section 2001.003(7), Government Code.
4-1 (c) This Act is subject to Chapter 325, Government Code
4-2 (Texas Sunset Act). Unless continued in existence as provided by
4-3 that chapter, this Act expires September 1, 2005.
4-4 Sec. 5. GENERAL DUTIES OF ALL PROJECT AGENCIES. In addition
4-5 to the duties enumerated in the enabling legislation specifically
4-6 applicable to each project agency, each project agency shall have
4-7 the duties prescribed by Sections 6 through 9 of this Act.
4-8 Sec. 6. BUDGET. (a) A project agency shall adopt a budget
4-9 annually using generally accepted accounting principles. The
4-10 budget shall be reviewed and approved only by the project agency's
4-11 governing board notwithstanding any other provision of law,
4-12 including the General Appropriations Act.
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 Sec. 7. AUDITS. Nothing in this Act shall affect the duty
4-17 of the state auditor to audit public accounts. The State Auditor
4-18 shall enter into a contract and schedule with each project agency
4-19 to conduct audits, including financial reports and performance
4-20 audits.
4-21 Sec. 8. REPORTING REQUIREMENTS. A project agency shall
4-22 submit to the legislature and the governor by the first day of the
4-23 regular session of the legislature a report describing all of the
4-24 agency's activities in the previous biennium. The report shall
4-25 include:
4-26 (1) an audit required by Section 7 of this Act;
5-1 (2) a financial report of the previous fiscal year;
5-2 (3) a description of any changes in licensing fees;
5-3 (4) a report on the number of examination candidates,
5-4 licensees, certificate holders, and enforcement activities and any
5-5 changes in those figures; and
5-6 (5) a description of all new rules adopted or
5-7 repealed.
5-8 Sec. 9. DISPOSITION OF FUNDS. (a) If provided in a project
5-9 agency's enabling legislation, the project agency shall collect a
5-10 professional fee of $200 from its licensees annually which shall be
5-11 remitted to the state.
5-12 (b) All funds other than the $200 professional fee collected
5-13 or received by a project agency shall be deposited into an account
5-14 in a depository institution insured by the Federal Deposit
5-15 Insurance Corporation selected by the project agency.
5-16 Sec. 10. GENERAL POWERS OF ALL PROJECT AGENCIES. In
5-17 addition to the powers enumerated in each project agency's enabling
5-18 legislation, each project agency shall have the powers described in
5-19 Sections 11 through 14 of this Act.
5-20 Sec. 11. ABILITY TO CONTRACT. To carry out and promote the
5-21 objectives of this Act, a project agency may enter into contracts
5-22 and do all other acts incidental to those contracts that are
5-23 necessary for the administration of its affairs and for the
5-24 attainment of its purposes; provided, however, that any
5-25 indebtedness, liability, or obligation of the project agency shall
5-26 not:
6-1 (1) create a debt or other liability of the state or
6-2 any other entity other than the project agency; or
6-3 (2) create any personal liability on the part of the
6-4 members of the board of the project agency or its employees.
6-5 Sec. 12. PROPERTY. A project agency may:
6-6 (1) acquire by purchase, lease, gift, or in any other
6-7 manner provided by law and maintain, use, and operate any and all
6-8 property of any kind, real, personal, or mixed, or any interest in
6-9 such property, necessary or convenient to the exercise of the
6-10 powers, rights, privileges, and functions of the project agency;
6-11 (2) sell or otherwise dispose of any property of any
6-12 kind, real, personal, or mixed, or any interest in such property,
6-13 which the project agency determines is not necessary or convenient
6-14 to the exercise of its powers, rights, privileges, and functions;
6-15 (3) construct, extend, improve, maintain, and
6-16 reconstruct, to cause to be constructed, extended, improved,
6-17 maintained, and reconstructed, and to use and operate, any and all
6-18 facilities of any kind necessary or convenient to the exercise of
6-19 the powers, rights, privileges, and functions of the project
6-20 agency; and
6-21 (4) borrow money, if necessary or convenient to the
6-22 exercise of the project agency's powers, rights, privileges, and
6-23 functions, for a period not to exceed five years as may be
6-24 authorized from time to time by an affirmative vote of a two-thirds
6-25 majority of the project agency's board.
6-26 Sec. 13. SUITS. A project agency may sue and be sued in its
7-1 own name, provided, however, that the office of the attorney
7-2 general shall represent the project agency in any litigation.
7-3 Sec. 14. FEES. Subject to the limitations, if any, in the
7-4 applicable enabling legislation, each project agency may set the
7-5 amount of fees by statute or rule as necessary for the purpose of
7-6 carrying out the functions of the project agency.
7-7 Sec. 15. LIABILITY. A project agency and its board members,
7-8 employees, agents, and volunteers has the protection from liability
7-9 provided by the agency enabling legislation, common law, and
7-10 Chapter 104, Civil Practice and Remedies Code.
7-11 Sec. 16. OPEN GOVERNMENT. Subject to the confidentiality
7-12 provisions of a project agency's enabling legislation:
7-13 (1) meetings of the project agency are subject to
7-14 Chapter 551, Government Code; and
7-15 (2) records maintained by the project agency are
7-16 subject to Chapter 552, Government Code.
7-17 Sec. 17. MEMBERSHIP IN EMPLOYEE RETIREMENT SYSTEM.
7-18 Employees of the project agencies are members of the Employees
7-19 Retirement System of Texas under Chapter 812, Government Code, and
7-20 transition to independent status shall have no effect on their
7-21 membership.
7-22 SECTION 3. AMENDMENT. Section 7, Public Accountancy Act of
7-23 1991 (Article 41a-1, Vernon's Texas Civil Statutes), is amended to
7-24 read as follows:
7-25 Sec. 7. EXPENSES OF BOARD. (a) The fees [and other money]
7-26 received by the board under this Act shall be deposited in a
8-1 depository institution at the direction of [state treasury to] the
8-2 board [credit of a special fund to be known as the public
8-3 accountancy fund] and may be used only for the administration of
8-4 this Act. [This subsection does not apply to money subject to
8-5 deposit under Section 22A of this Act.]
8-6 (b) [The board shall file annually with the governor and the
8-7 presiding officer of each house of the legislature a complete and
8-8 detailed report accounting for all funds received and disbursed by
8-9 the board during the preceding fiscal year. The annual report must
8-10 be in the form and reported in the time provided by the General
8-11 Appropriations Act.]
8-12 [(b) The board shall file an annual report of its activities
8-13 with the governor and the Legislative Budget Board. The report
8-14 shall include a summary statement of all receipts and disbursements
8-15 of the board for each calendar year. The board's funds are subject
8-16 to audit by the State Auditor in accordance with Chapter 321,
8-17 Government Code.]
8-18 [(c)] The board may solicit, contract for, and accept money
8-19 and other assistance from any source to carry out the powers and
8-20 duties under this Act.
8-21 SECTION 4. AMENDMENT. Subsection (g), Section 9, Public
8-22 Accountancy Act of 1991 (Article 41a-1, Vernon's Texas Civil
8-23 Statutes), is amended to read as follows:
8-24 (g) The board may increase each license fee collected under
8-25 this section in an amount necessary to produce funds adequate for
8-26 the enforcement of this Act. The fee increase shall be deposited
9-1 as provided by Section 7 [22A] of this Act.
9-2 SECTION 5. AMENDMENT. Subsection (j), Section 21D, Public
9-3 Accountancy Act of 1991 (Article 41a-1, Vernon's Texas Civil
9-4 Statutes), is amended to read as follows:
9-5 (j) The board shall deposit, as provided by Section 7 [22A]
9-6 of this Act, the amounts received by the board under this section.
9-7 SECTION 6. AMENDMENT. Section 22A, Public Accountancy Act
9-8 of 1991 (Article 41a-1, Vernon's Texas Civil Statutes), is amended
9-9 to read as follows:
9-10 Sec. 22A. ENFORCEMENT COMMITTEES[; ENFORCEMENT FUND].
9-11 [(a)] The board may appoint enforcement committees from its
9-12 membership and may adopt rules consistent with this Act as
9-13 necessary for the performance of each committee's duties. An
9-14 enforcement committee shall consider and make recommendations to
9-15 the full board on matters relating to the enforcement of this Act
9-16 and the rules adopted in accordance with this Act. At least one
9-17 member of the board who is a public representative member must
9-18 serve on each enforcement committee.
9-19 [(b) A special fund is established for the exclusive use of
9-20 the board to be known as the public accountancy enforcement fund.
9-21 The fund may be used only to finance the enforcement functions
9-22 performed under this Act. Money received by the board from a fee
9-23 increase adopted under Section 9(g) of this Act and money related
9-24 to an administrative penalty and received by the board under
9-25 Section 21D of this Act shall be deposited in the fund. The
9-26 comptroller is the custodian of the fund. The comptroller shall
10-1 issue warrants from the fund supported only by vouchers signed by
10-2 the chairman and the executive director. The fund shall be
10-3 appropriated to the board by the legislature.]
10-4 SECTION 7. AMENDMENT. Subsection (a), Section 4, Chapter
10-5 478, Acts of the 45th Legislature, Regular Session, 1937 (Article
10-6 249a, Vernon's Texas Civil Statutes), is amended to read as
10-7 follows:
10-8 (a) The [All] fees received by the Board [collected or money
10-9 derived] under [the provisions of] this Act shall be deposited in a
10-10 depository institution at the direction of the Board and [received
10-11 and accounted for by the secretary-treasurer. All of these funds
10-12 which are received shall be paid weekly to the State Comptroller,
10-13 who shall keep this money in a separate fund to be known as the
10-14 Architectural Examiners Fund. This fund] may be used only for the
10-15 administration of this Act [the powers and duties of the Board and
10-16 shall be paid out only by warrants of the State Comptroller, upon
10-17 itemized vouchers, approved by the chairman or acting chairman and
10-18 attested by the secretary-treasurer of the Board. Disbursements
10-19 shall not in any way be a charge upon the General Revenue Fund of
10-20 this State].
10-21 SECTION 8. AMENDMENT. Section 4A, Chapter 478, Acts of the
10-22 45th Legislature, Regular Session, 1937 (Article 249a, Vernon's
10-23 Texas Civil Statutes), is amended to read as follows:
10-24 Sec. 4A. [(a)] Each member of the Board is entitled to the
10-25 per diem set by legislative appropriation for each day that the
10-26 member engages in the business of the Board. A member is entitled
11-1 to compensation for travel expenses, including food, lodging, and
11-2 transportation expenses, as provided by the General Appropriations
11-3 Act.
11-4 [(b) The per diem and expenses of the members of the Board
11-5 shall be paid from the Architectural Examiners Fund.]
11-6 [(c) General revenue funds may not be used for the
11-7 administration of this Act except as provided by the General
11-8 Appropriations Act.]
11-9 SECTION 9. AMENDMENT. Subsection (b), Section 10, Chapter
11-10 457, Acts of the 61st Legislature, Regular Session, 1969 (Article
11-11 249c, Vernon's Texas Civil Statutes), is amended to read as
11-12 follows:
11-13 (b) The fees received by [All sums of money paid to] the
11-14 board under [the provisions of] this Act[,] shall be deposited in a
11-15 depository institution at the direction of the board and may be
11-16 used only for the administration of this Act [Architectural
11-17 Examiners Fund].
11-18 SECTION 10. AMENDMENT. Section 6, Article 249e, Revised
11-19 Statutes, is amended to read as follows:
11-20 Sec. 6. FUND; FEES. (a) The [All] fees received by the
11-21 board under this article shall be deposited in a depository
11-22 institution at the direction of [to the credit of the architectural
11-23 examiners fund and may be spent by] the board and may be used only
11-24 for [in] the administration of this article [its statutory powers
11-25 and duties].
11-26 (b) The board shall set the following fees[, unless
12-1 otherwise set in the General Appropriations Act,] in amounts that
12-2 are reasonable and necessary to cover the costs of the
12-3 administration of this article:
12-4 (1) a registration application fee in an amount not to
12-5 exceed $100;
12-6 (2) an annual registration renewal fee in an amount
12-7 not to exceed $100;
12-8 (3) a reciprocal registration fee in an amount not to
12-9 exceed $100; and
12-10 (4) an examination fee.
12-11 (c) The board may set fees[, unless otherwise set in the
12-12 General Appropriations Act,] for the following in amounts that are
12-13 reasonable and necessary to cover the costs of the administration
12-14 of this article:
12-15 (1) a duplicate registration certificate;
12-16 (2) a roster of registered interior designers;
12-17 (3) the restoration of a revoked or suspended
12-18 registration certificate; and
12-19 (4) any other action of the board involving an
12-20 administrative expense.
12-21 SECTION 11. AMENDMENT. Section 9, The Texas Engineering
12-22 Practice Act (Article 3271a, Vernon's Texas Civil Statutes), is
12-23 amended to read as follows:
12-24 Sec. 9. RECEIPTS AND DISBURSEMENTS. The executive director
12-25 [Secretary] of the Board shall receive and account for all moneys
12-26 derived under the provisions of this Act. The fees received by[,
13-1 and shall pay the same weekly to the Comptroller who shall keep
13-2 such moneys in a separate fund to be known as the "Professional
13-3 Engineers' Fund". Such fund shall be paid out only by warrant of
13-4 the State Comptroller upon itemized vouchers, approved by the
13-5 Chairman and attested by the Secretary of] the Board under this Act
13-6 shall be deposited in a depository institution at the direction[.
13-7 All moneys in the "Professional Engineers' Fund" are hereby
13-8 specifically appropriated for the use] of the Board and may be used
13-9 only for [in] the administration of this Act and other duties
13-10 authorized by law. The [Secretary of the] Board shall employ an
13-11 executive director, who shall receive such compensation as annually
13-12 established by the Board [give a surety bond to the Governor of
13-13 the State of Texas in the sum of Two Thousand Five Hundred
13-14 ($2,500.00) Dollars. The premium on said bond shall be paid out of
13-15 the "Professional Engineers' Fund". The Secretary of the Board
13-16 shall receive such salary as the Board shall determine in addition
13-17 to the compensation and expenses provided for in this Act]. The
13-18 executive director [Board] shall employ such engineering,
13-19 administrative, and clerical staff or other assistants as are
13-20 necessary for the proper implementation [performance] of this Act
13-21 and other duties authorized by law [its work,] and may make
13-22 expenditures from the depository institution consistent with [of]
13-23 this [fund for any] purpose [which in the opinion of the Board is
13-24 reasonably necessary for the proper performance of its duties under
13-25 this Act. Under no circumstances shall the total amount of
13-26 warrants issued by the State Comptroller in payment of the expenses
14-1 and compensation provided for in this Act exceed the amount of the
14-2 "Professional Engineers' Fund". Provided further, that the
14-3 salaries paid herein shall not be in excess of salaries paid for
14-4 similar work in other departments].
14-5 SECTION 12. AMENDMENT. Sections 13 and 23B, Professional
14-6 Land Surveying Practices Act (Article 5282c, Vernon's Texas Civil
14-7 Statutes), are amended to read as follows:
14-8 Sec. 13. RECEIPTS AND DISBURSEMENTS. The director of the
14-9 board shall receive and account for all fees received under the
14-10 provisions of this Act and shall deposit these funds in a
14-11 depository institution at the direction [the State Treasury to the
14-12 credit of a special fund to be known as the "Land Surveying Fund."
14-13 This fund shall be paid out only by warrants of the comptroller of
14-14 public accounts upon itemized vouchers approved by the director] of
14-15 the board to be used only for the administration of this Act[.
14-16 Under no circumstances shall the total amount of warrants issued by
14-17 the comptroller of public accounts in payment of the expenses and
14-18 compensation provided for in this Act exceed the amount in the Land
14-19 Surveying Fund. All payments to persons retained or employed by
14-20 the board or to members of the board and all per diem and expenses
14-21 incurred under this Act shall be paid out of the Land Surveying
14-22 Fund provided herein, and no part of the expense of administering
14-23 this Act shall ever be a charge against the general funds of the
14-24 State of Texas. The board shall as of August 31 of each year after
14-25 the passage of this Act make a report to the governor, lieutenant
14-26 governor, and speaker of the house of representatives for all
15-1 receipts and disbursements under this Act. The financial
15-2 transactions of the board are subject to audit by the State Auditor
15-3 in accordance with Chapter 321, Government Code].
15-4 Sec. 23B. CIVIL PENALTY. (a) A person who violates this
15-5 Act or a rule adopted under this Act is liable for a civil penalty
15-6 of not more than $1,000 for each violation.
15-7 (b) The attorney general, on request of the board, shall
15-8 institute and conduct in the name of the state a suit to collect
15-9 the penalty.
15-10 [(c) A civil penalty collected under this section shall be
15-11 deposited in the state treasury to the credit of the General
15-12 Revenue Fund].
15-13 SECTION 13. AMENDMENT. Section 8, The Property Taxation
15-14 Professional Certification Act (Article 8885, Revised Statutes), is
15-15 amended to read as follows:
15-16 Sec. 8. (a) The executive director of the board shall
15-17 receive and account for all money derived under the provisions of
15-18 this Act [and shall pay it to the Comptroller]. The fees received
15-19 by the board under this Act shall be deposited in a depository
15-20 institution at the direction of the board and [The Comptroller
15-21 shall designate a separate fund to be known as the "Assessors
15-22 Registration Fund," which] may be used only [by the board] for the
15-23 administration [purpose] of [administering] this Act and other
15-24 duties authorized by law.
15-25 (b) The board shall keep an accurate record of all
15-26 proceedings, which shall be available to the public at all times.
16-1 The board shall also maintain a roster of all persons registered
16-2 with the board, showing their names, BTPE numbers, places of
16-3 employment, and classification[. The roster shall be] placed on
16-4 file with the Secretary of State. Copies of the roster shall be
16-5 made available to persons registered under this Act and to the
16-6 public on request.
16-7 SECTION 14. REPEALER. Section 10, Professional Land
16-8 Surveying Practices Act (Article 5282c, Vernon's Texas Civil
16-9 Statutes), is repealed.
16-10 SECTION 15. APPROPRIATIONS. To provide a reasonable period
16-11 for each project agency under Article 8930, Revised Statutes, as
16-12 added by this Act, to establish itself as semi-independent and
16-13 self-directed after the conclusion of fiscal year 1999, each
16-14 project agency is appropriated an amount equal to that agency's
16-15 appropriated amount for fiscal year 1999.
16-16 SECTION 16. EFFECT OF TRANSITION TO INDEPENDENT STATUS.
16-17 (a) The transfer of a project agency under Article 8930, Revised
16-18 Statutes, as added by this Act, to semi-independent status and the
16-19 expiration of semi-independent status shall not act to cancel,
16-20 suspend, or prevent:
16-21 (1) any debt owed to or by the project agency;
16-22 (2) any fine, tax, penalty, or obligation of any
16-23 party;
16-24 (3) any contract or other obligation of any party; or
16-25 (4) any action taken by the project agency in
16-26 administration or enforcement of its duties.
17-1 (b) Each project agency shall continue to have and exercise
17-2 the powers and duties allocated to it in its enabling legislation,
17-3 except as specifically amended by this Act.
17-4 (c) Title to all supplies, materials, records, equipment,
17-5 books, papers, and facilities used by each project agency is
17-6 transferred to each respective project agency in fee simple.
17-7 Nothing in this Act shall have any effect on property already owned
17-8 by the project agencies. At its sole option, each project agency
17-9 may continue to occupy its current premises at the rates prescribed
17-10 by the General Services Commission for indirect costs and bond debt
17-11 service for the duration of the pilot project.
17-12 SECTION 17. EFFECTIVE DATE. This Act takes effect September
17-13 1, 1999.
17-14 SECTION 18. EMERGENCY. The importance of this legislation
17-15 and the crowded condition of the calendars in both houses create an
17-16 emergency and an imperative public necessity that the
17-17 constitutional rule requiring bills to be read on three several
17-18 days in each house be suspended, and this rule is hereby suspended.