77R15673 JJT-F                          
         By Duncan                                              S.B. No. 736
         Substitute the following for S.B. No. 736:
         By Junell                                          C.S.S.B. No. 736
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the operation of the self-directed semi-independent
 1-3     agency pilot project; making an appropriation.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 14, Article 8930, Revised Statutes, is
 1-6     amended to read as follows:
 1-7           Sec. 14.  FEES AND DISPOSITION OF FUNDS.  (a)  Subject to the
 1-8     limitations, if any, in the applicable enabling legislation, each
 1-9     project agency may set the amount of fees by statute or rule as
1-10     necessary for the purpose of carrying out the functions of the
1-11     project agency.
1-12           (b)  All fees and funds collected by a project agency during
1-13     the pilot project and any funds appropriated to the project agency
1-14     shall be deposited in interest-bearing deposit accounts in the
1-15     Texas Treasury Safekeeping Trust Company.  The comptroller shall
1-16     contract with the project agency for the maintenance of the deposit
1-17     accounts under terms comparable to a contract between a commercial
1-18     banking institution and its customers.
1-19           SECTION 2.  Subsection (b), Section 15, Article 8930, Revised
1-20     Statutes, is amended to read as follows:
1-21           (b)  If a state agency no longer has status under this Act as
1-22     a self-directed semi-independent project agency either because of
1-23     the expiration of this Act or for any other reason, ownership of
1-24     any property or other asset acquired by the agency during the time
 2-1     the agency participated in the pilot project, including unexpended
 2-2     fees in a deposit account in the Texas Treasury Safekeeping Trust
 2-3     Company, shall be transferred to the state.
 2-4           SECTION 3.  (a)  This Act takes effect September 1, 2001.
 2-5           (b)  To provide a reasonable period for each project agency
 2-6     under Article 8930, Revised Statutes, as amended by this Act, to
 2-7     establish itself as self-directed semi-independent after the
 2-8     conclusion of fiscal year 2001, each agency is appropriated an
 2-9     amount equal to 50 percent of that agency's appropriated amount for
2-10     fiscal year 2001.  This appropriation may be spent as the project
2-11     agency directs and shall be repaid to the general revenue fund by
2-12     the agency as funds become available.
2-13           (c)  Examination fees collected prior to September 1, 2001,
2-14     for examinations conducted after September 1, 2001, shall be made
2-15     available to the project agency to be spent as the agency directs.