By: Eltife, et al. S.B. No. 1000

A BILL TO BE ENTITLED

AN ACT

relating to the self-directed and semi-independent status of the Texas Real Estate Commission; making an appropriation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 1101, Occupations Code, is amended by adding Subchapter B-1 to read as follows:

SUBCHAPTER B-1. SELF-DIRECTED AND SEMI-INDEPENDENT STATUS OF

COMMISSION

Sec. 1101.081. SELF-DIRECTED AND SEMI-INDEPENDENT STATUS. Notwithstanding any other provision of law, the commission is self-directed and semi-independent as specified by this subchapter. Any Act of the 82nd Legislature that relates to the commission and that is inconsistent with the commission being self-directed and semi-independent may be implemented by the administrator of the commission only on authorization by the commission.

Sec. 1101.082. BUDGET, REVENUES, AND EXPENSES. (a) Notwithstanding any other provision of law, including the General Appropriations Act, the commission shall adopt a budget annually using generally accepted accounting principles.

(b) The commission shall be responsible for all direct and indirect costs of the commission's existence and operation. The commission may not directly or indirectly cause the general revenue fund to incur any cost.

(c) Notwithstanding any other provision of this chapter, the commission may set the amounts of fees, penalties, charges, and revenues required or permitted by statute or rule as necessary for the purpose of carrying out the functions of the commission and funding the budget adopted and approved under Subsection (a).

(d) Except as provided by Subsection (e) or (f), all fees and funds collected by the commission and any funds appropriated to the commission shall be deposited in interest-bearing deposit accounts in the Texas Treasury Safekeeping Trust Company. The comptroller shall contract with the commission for the maintenance of the deposit accounts under terms comparable to a contract between a commercial banking institution and the institution's customers.

(e) Collected revenue and interest associated with one of the following funds in the state treasury shall continue to be deposited in the appropriate fund:

(1) Fund 0028, Appraiser Registry;

(2) Fund 0969, Real Estate Fee Trust Account;

(3) Fund 0971, Real Estate Recovery Trust Account; and

(4) Fund 0988, Real Estate Inspection Recovery Trust Fund.

(f) A fee collected under Section 1101.152(a)(16), 1101.153, or 1101.154 or under an agreement authorized by Section 1101.3521(d) shall be remitted to the state and deposited in the appropriate fund in the state treasury.

(g) Not later than August 31 of each fiscal year, the commission shall remit $750,000 to the general revenue fund.

(h) The fiscal year for the commission begins on September 1 and ends on August 31.

Sec. 1101.083. AUDITS. (a) This subchapter does not affect the duty of the state auditor to audit the commission. The state auditor shall enter into a contract and schedule with the commission to conduct audits.

(b) Not later than August 31 of each fiscal year, the commission shall remit a nonrefundable retainer to the state auditor in an amount not less than $10,000. The commission shall reimburse the state auditor for all costs incurred, in excess of the nonrefundable retainer amounts paid each fiscal year, in performing the audits and shall provide to the governor a copy of any audit performed.

Sec. 1101.084. RECORDS; REPORTING REQUIREMENTS. (a) The commission shall keep financial and statistical information as necessary to disclose completely and accurately the financial condition and results of operations of the commission.

(b) Before the beginning of each regular session of the legislature, the commission shall submit to the legislature and the governor a report describing all of the agency's activities in the previous biennium. The report must include:

(1) an audit as required by Section 1101.083;

(2) a financial report of the previous fiscal year, including reports on the financial condition and results of operations;

(3) a description of all changes in fees imposed on regulated persons;

(4) a report on changes in the regulatory jurisdiction of the commission; and

(5) a list of all new rules adopted or repealed.

(c) In addition to the reporting requirements of Subsection (b), not later than November 1 of each year, the commission shall submit to the governor, the committee of each house of the legislature that has jurisdiction over appropriations, and the Legislative Budget Board a report that contains:

(1) the salary for all commission personnel and the total amount of per diem expenses and travel expenses paid for all commission employees;

(2) the total amount of per diem expenses and travel expenses paid for each member of the commission;

(3) the commission's operating plan and annual budget; and

(4) a detailed report of all revenue received and all expenses incurred by the commission in the previous 12 months.

Sec. 1101.085. ABILITY TO CONTRACT. (a) To carry out and promote the objectives of this chapter, the commission may enter into contracts and do all other acts incidental to those contracts that are necessary for the administration of the commission's affairs and for the attainment of the commission's purposes, except as limited by Subsection (b).

(b) Any indebtedness, liability, or obligation of the commission incurred under this section may not:

(1) create a debt or other liability of this state or another entity other than the commission; or

(2) create any personal liability on the part of the members or employees of the commission.

Sec. 1101.086. PROPERTY. The commission may:

(1) acquire by purchase, lease, gift, or any other manner provided by law and maintain, use, and operate any real, personal, or mixed property, or any interest in property, necessary or convenient to the exercise of the powers, rights, privileges, or functions of the commission;

(2) sell or otherwise dispose of any real, personal, or mixed property, or any interest in property, that the commission determines is not necessary or convenient to the exercise of the commission's powers, rights, privileges, or functions;

(3) construct, extend, improve, maintain, and reconstruct, or cause to construct, extend, improve, maintain, and reconstruct, and use and operate all facilities necessary or convenient to the exercise of the powers, rights, privileges, or functions of the commission; and

(4) borrow money, as may be authorized from time to time by an affirmative vote of a two-thirds majority of the commission, for a period not to exceed five years if necessary or convenient to the exercise of the commission's powers, rights, privileges, or functions.

Sec. 1101.087. SUITS. (a) The office of the attorney general shall represent the commission in any litigation.

(b) Not later than August 31 of each fiscal year, the commission shall remit a nonrefundable retainer to the office of the attorney general in an amount not less than $75,000. The nonrefundable retainer shall be applied to any services provided to the commission. If additional litigation services are required, the attorney general may assess and collect from the commission reasonable attorney's fees, in excess of the nonrefundable retainer amount paid each fiscal year, associated with any litigation under this section.

Sec. 1101.088. ADMINISTRATIVE HEARINGS. (a) Not later than August 31 of each fiscal year, the commission shall remit a nonrefundable retainer to the State Office of Administrative Hearings in an amount of not less than $75,000 for hearings conducted under Section 1101.657 or 1101.705.

(b) The nonrefundable retainer shall be applied to the costs associated with conducting the hearings. If additional costs are incurred, the State Office of Administrative Hearings may assess and collect from the commission reasonable fees, in excess of the nonrefundable retainer amount paid each fiscal year, associated with conducting a hearing under Section 1101.657 or 1101.705.

Sec. 1101.089. POST-PARTICIPATION LIABILITY. (a) If the commission no longer has status under this subchapter as a self-directed, semi-independent agency for any reason, the commission shall be liable for any expenses or debts incurred by the commission during the time the commission was a self-directed, semi-independent agency. The commission's liability under this section includes liability for any lease entered into by the commission. This state is not liable for any expense or debt covered by this subsection, and money from the general revenue fund may not be used to repay the expense or debt.

(b) If the commission no longer has status under this subchapter as a self-directed, semi-independent agency for any reason, ownership of any property or other asset acquired by the commission during the time the commission was a self-directed, semi-independent agency, including unexpended fees in a deposit account in the Texas Treasury Safekeeping Trust Company, shall be transferred to this state.

Sec. 1101.090. DUE PROCESS; OPEN GOVERNMENT. The commission is:

(1) a governmental body for purposes of Chapters 551 and 552, Government Code; and

(2) a state agency for purposes of Chapters 2001 and 2005, Government Code.

Sec. 1101.091. MEMBERSHIP IN EMPLOYEES RETIREMENT SYSTEM. Employees of the commission are members of the Employees Retirement System of Texas under Chapter 812, Government Code, and the commission's transition to independent status as provided by this chapter has no effect on their membership or any benefits under that system.

SECTION 2. Subsection (c), Section 1101.059, Occupations Code, is amended to read as follows:

(c) A person appointed to the commission is entitled to reimbursement[, as provided by the General Appropriations Act,] for the travel expenses incurred in attending the training program regardless of whether the attendance at the program occurs before or after the person qualifies for office.

SECTION 3. Subsection (d), Section 1101.101, Occupations Code, is amended to read as follows:

(d) The commission shall determine the salaries of the administrator, officers, and employees of the commission. [The amounts of the salaries may not exceed the amounts specified by the General Appropriations Act.]

SECTION 4. (a) To provide a reasonable period for the Texas Real Estate Commission to establish itself as a self-directed and semi-independent agency under Subchapter B-1, Chapter 1101, Occupations Code, as added by this Act, the following amounts are appropriated out of the general revenue fund:

(1) for the state fiscal year ending August 31, 2012, an amount equal to 50 percent of the amount of general revenue appropriated to the agency for the state fiscal year ending August 31, 2011; and

(2) for the state fiscal year ending August 31, 2013, an amount equal to 50 percent of the amount of general revenue appropriated to the agency for the state fiscal year ending August 31, 2011.

(b) Subject to Subchapter B-1, Chapter 1101, Occupations Code, as added by this Act, the appropriations made by Subsection (a) of this section may be spent by the Texas Real Estate Commission as the commission directs. The Texas Real Estate Commission shall repay to the general revenue fund the appropriation made to the commission for the state fiscal year ending August 31, 2012, not later than that date and as funds become available. The Texas Real Estate Commission shall repay to the general revenue fund the appropriation made to the commission for the state fiscal year ending August 31, 2013, not later than that date and as funds become available.

SECTION 5. The transfer of the Texas Real Estate Commission to self-directed and semi-independent status under Subchapter B-1, Chapter 1101, Occupations Code, as added by this Act, and the expiration of self-directed and semi-independent status may not act to cancel, suspend, or prevent:

(1) any debt owed to or by the commission;

(2) any fine, tax, penalty, or obligation of any party;

(3) any contract or other obligation of any party; or

(4) any action taken by the commission in the administration or enforcement of the commission's duties.

SECTION 6. The Texas Real Estate Commission shall continue to have and exercise the powers and duties allocated to the commission in the commission's enabling legislation, except as specifically amended by this Act.

SECTION 7. Title to or ownership of all supplies, materials, records, equipment, books, papers, and furniture used by the Texas Real Estate Commission is transferred to the commission. This Act does not affect any property owned by the commission on or before the effective date of this Act.

SECTION 8. The Texas Real Estate Commission shall relocate to state-owned office space not later than September 1, 2011, and shall pay rent to this state in a reasonable amount to be determined by the Texas Facilities Commission for the use and occupancy of the office space. Aggregate rental payments may not be less than $550,000 per fiscal year for the state fiscal years ending August 31, 2012, and August 31, 2013. Aggregate rental payments may not be less than $425,000 per fiscal year for each state fiscal year ending August 31, 2014, August 31, 2015, and August 31, 2016.

SECTION 9. This Act takes effect September 1, 2011.