83R3731 BEF-F
 
  By: Darby H.B. No. 2361
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to self-directed and semi-independent status of certain
  health care regulatory agencies; making an appropriation;
  authorizing fees.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 152, Occupations Code, is amended by
  adding Subchapter C to read as follows:
  SUBCHAPTER C.  SELF-DIRECTED AND SEMI-INDEPENDENT STATUS OF BOARD
         Sec. 152.101.  SELF-DIRECTED AND SEMI-INDEPENDENT STATUS.
  (a)  Notwithstanding any other provision of law, the board is
  self-directed and semi-independent as specified by this
  subchapter.
         (b)  Notwithstanding any other provision of law, each
  advisory committee, advisory board, and other board that is
  administratively attached to the board is a subsidiary of the
  board, and the board's self-directed semi-independent status under
  Subsection (a) applies to the administratively attached entity.
         Sec. 152.102.  BUDGET, REVENUES, AND EXPENSES. (a)  The
  executive director shall submit to the board annually a budget
  using generally accepted accounting principles. Notwithstanding
  any other provision of law, including the General Appropriations
  Act, the budget shall be adopted and approved only by the board.
         (b)  The board shall be responsible for all direct and
  indirect costs of the board's existence and operation. The board
  may not directly or indirectly cause the general revenue fund to
  incur any cost.
         (c)  Subject to any limitations in this subtitle or Subtitle
  C, the board 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 board and funding
  the budget adopted and approved under Subsection (a).
         (d)  All fees and funds collected by the board and any funds
  appropriated to the board shall be deposited with the comptroller.  
  The comptroller shall separately account for the board's funds.  
  The board and the comptroller by contract shall determine the
  depository, investment, and other financial services the
  comptroller shall provide to the board.
         (e)  Not later than August 31 of each fiscal year, the board
  shall remit a nonrefundable retainer to the comptroller in an
  amount not less than $10,000. The board shall reimburse the
  comptroller for all costs in excess of the nonrefundable retainer
  amounts paid each fiscal year incurred in providing financial
  services to the board.
         (f)  Not later than August 31 of each fiscal year, the board
  shall remit $9.5 million to the comptroller for deposit in the
  general revenue fund.
         (g)  Not later than August 31 of each fiscal year, the board
  shall remit to the comptroller for deposit in the general revenue
  fund all administrative penalties collected by the board during the
  fiscal year, and the amount of administrative penalties deposited
  shall count toward the amount the board is required to remit under
  Subsection (f).
         (h)  The board shall collect and deposit the surcharges as
  required by Section 153.053.
         (i)  The executive director shall submit to the board, as
  directed by the board, a report of the receipts and expenditures of
  the board.
         (j)  The fiscal year for the board begins on September 1 and
  ends on August 31.
         Sec. 152.103.  AUDITS. (a)  This subchapter does not affect
  the duty of the state auditor to audit the board. The state auditor
  shall enter into a contract and schedule with the board to conduct
  audits, including financial reports and performance audits.
         (b)  Not later than August 31 of each fiscal year, the board
  shall remit a nonrefundable retainer to the state auditor in an
  amount not less than $25,000.  The board shall reimburse the state
  auditor for all costs in excess of the nonrefundable retainer
  amounts paid each fiscal year incurred in performing the audits and
  shall provide to the governor a copy of any audit performed.
         Sec. 152.104.  RECORDS; REPORTING REQUIREMENTS. (a) The
  board shall keep financial and statistical information as necessary
  to disclose completely and accurately the financial condition and
  results of operations of the board.
         (b)  Before the beginning of each regular session of the
  legislature, the board 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
  describing all of the board's activities in the previous biennium.
  The report must include:
               (1)  an audit as required by Section 152.103;
               (2)  a financial report of the previous fiscal
  biennium, including reports on financial condition and results of
  operations;
               (3)  a description of all changes in fees imposed by the
  board;
               (4)  a report including five fiscal years of trend data
  on the number of examination candidates and license and
  registration permit holders and the enforcement activities of the
  board;
               (5)  a list of all rules adopted or repealed since the
  date of the previous report; and
               (6)  the reports of any audits conducted by the State
  Office of Risk Management or the Texas Workforce Commission civil
  rights division.
         (c)  In addition to the reporting requirements of Subsection
  (b), not later than November 1 of each year, the board 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 board personnel and the total
  amount of per diem expenses and travel expenses paid for all board
  employees;
               (2)  the total amount of per diem expenses and travel
  expenses paid for each member of the board;
               (3)  the board's operating plan and annual budget; and
               (4)  a detailed report of all revenue received and all
  expenses incurred by the board in the previous 12 months.
         Sec. 152.105.  ABILITY TO CONTRACT. (a)  To carry out and
  promote the objectives of this chapter, the board may enter into
  contracts and do all other acts incidental to those contracts that
  are necessary for the administration of the board's affairs and for
  the attainment of the board's purposes, except as limited by
  Subsection (b).
         (b)  Any indebtedness, liability, or obligation of the board
  incurred under this section may not:
               (1)  create a debt or other liability of this state or
  another entity other than the board; or
               (2)  create any personal liability on the part of the
  members of the board or the board's employees.
         Sec. 152.106.  PROPERTY. The board 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 board;
               (2)  sell or otherwise dispose of any real, personal,
  or mixed property, or any interest in property, that the board
  determines is not necessary or convenient to the exercise of the
  board'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 board; and
               (4)  borrow money, as may be authorized from time to
  time by an affirmative vote of a two-thirds majority of the board,
  for a period not to exceed five years if necessary or convenient to
  the exercise of the board's powers, rights, privileges, or
  functions.
         Sec. 152.107.  ADMINISTRATIVE HEARINGS. (a) Not later than
  August 31 of each fiscal year, the board shall remit a nonrefundable
  retainer to the State Office of Administrative Hearings in an
  amount not less than $200,000 for hearings conducted under this
  subtitle or Subtitle C.
         (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 board reasonable fees, in excess of the
  nonrefundable retainer amount paid each fiscal year, associated
  with conducting a hearing under this subtitle or Subtitle C.
         Sec. 152.108.  SUITS. (a)  The office of the attorney
  general shall represent the board in any litigation.
         (b)  Not later than August 31 of each fiscal year, the board
  shall remit a nonrefundable retainer to the office of the attorney
  general in an amount not less than $50,000. The nonrefundable
  retainer shall be applied to any services provided to the board. If
  additional litigation services are required, the attorney general
  may assess and collect from the board reasonable attorney's fees,
  in excess of the nonrefundable retainer amount paid each fiscal
  year, associated with any litigation under this section.
         Sec. 152.109.  POST-PARTICIPATION LIABILITY. (a) If the
  board no longer has status under this subchapter as a self-directed
  semi-independent agency for any reason, the board shall be liable
  for any expenses or debts incurred by the board during the time the
  board was a self-directed semi-independent agency. The board's
  liability under this section includes liability for any lease
  entered into by the board. 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 board 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 board
  during the time the board was a self-directed semi-independent
  agency, including unexpended fees deposited with the comptroller,
  shall be transferred to this state.
         Sec. 152.110.  DUE PROCESS; OPEN GOVERNMENT. The board 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. 152.111.  MEMBERSHIP IN EMPLOYEES RETIREMENT SYSTEM.
  Employees of the board are members of the Employees Retirement
  System of Texas under Chapter 812, Government Code, and the board's 
  transition to semi-independent status as provided by this
  subchapter has no effect on the employees' membership or any
  benefits under that system.
         Sec. 152.112.  GIFTS. (a)  Notwithstanding any other law,
  the board may not accept a gift, grant, or donation:
               (1)  from a party to an enforcement action; or
               (2)  to pursue a specific investigation or enforcement
  action.
         (b)  The board must:
               (1)  report each gift, grant, or donation that the
  board receives as a separate item in the board's report required
  under Section 152.104(b); and
               (2)  include with the report a statement indicating the
  purpose for which each gift, grant, or donation was donated and
  used.
         Sec. 152.113.  HEALTH PROFESSIONS COUNCIL. Not later than
  September 30 of each fiscal year, the board shall remit a
  nonrefundable prorated assessment to the Health Professions
  Council under Section 101.006 in an amount not less than $28,000.
         SECTION 2.  Section 152.007, Occupations Code, is amended to
  read as follows:
         Sec. 152.007.  PER DIEM. (a) Each board member is entitled
  to receive a per diem [as set by legislative appropriation] for each
  day that the member engages in the business of the board.
         (b)  A board member is entitled to reimbursement for travel
  expenses incurred while conducting board business, including [If
  the General Appropriations Act does not prescribe the amount of the
  per diem, the per diem consists of actual] expenses for meals,
  lodging, and transportation[, plus $100].
         SECTION 3.  Section 152.010(c), Occupations Code, is amended
  to read as follows:
         (c)  A person appointed to the board 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 4.  Section 204.057, Occupations Code, is amended
  to read as follows:
         Sec. 204.057.  PER DIEM. A member of the physician assistant
  board is entitled to receive a per diem [as set by legislative
  appropriation] for each day that the member engages in the business
  of the board. A member of the physician assistant board is entitled
  to reimbursement for travel expenses incurred while conducting
  physician assistant board business, including [If the General
  Appropriations Act does not prescribe the amount of the per diem,
  the per diem is equal to a member's actual] expenses for meals,
  lodging, and transportation [plus $100].
         SECTION 5.  Section 204.059(c), Occupations Code, is amended
  to read as follows:
         (c)  A person appointed to the physician assistant board 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 6.  Section 205.053(b), Occupations Code, is amended
  to read as follows:
         (b)  An officer, board member, employee, or paid consultant
  of a Texas trade association in the field of health care may not be a
  member of the acupuncture board or an employee of the medical board
  who is employed in a "bona fide executive, administrative, or
  professional capacity," as that phrase is used for purposes of
  establishing an exemption to the overtime provisions of the federal
  Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.)
  [exempt from the state's position classification plan or is
  compensated at or above the amount prescribed by the General
  Appropriations Act for step 1, salary group A17, of the position
  classification salary schedule].
         SECTION 7.  Section 205.057(c), Occupations Code, is amended
  to read as follows:
         (c)  A person appointed to the acupuncture board 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 8.  Section 205.059, Occupations Code, is amended to
  read as follows:
         Sec. 205.059.  COMPENSATION; TRAVEL EXPENSES [PER DIEM]. An
  acupuncture board member may not receive compensation for service
  on the acupuncture board but is entitled to reimbursement for
  travel expenses incurred while conducting acupuncture board
  business, including expenses for transportation, meals, and
  lodging [receive a per diem as set by legislative appropriation for
  transportation and related expenses incurred for each day that the
  member engages in the acupuncture board's business].
         SECTION 9.  Section 206.057, Occupations Code, is amended to
  read as follows:
         Sec. 206.057.  TRAVEL EXPENSES [PER DIEM]. An advisory
  committee member is not entitled to receive compensation for
  service on the advisory committee but may receive reimbursement for
  travel expenses incurred while conducting advisory committee
  business, including expenses for transportation, meals, and
  lodging [or compensation].
         SECTION 10.  Chapter 301, Occupations Code, is amended by
  adding Subchapter B-1 to read as follows:
  SUBCHAPTER B-1.  SELF-DIRECTED AND SEMI-INDEPENDENT STATUS OF BOARD
         Sec. 301.071.  SELF-DIRECTED AND SEMI-INDEPENDENT STATUS.
  Notwithstanding any other provision of law, the board is
  self-directed and semi-independent as specified by this
  subchapter.
         Sec. 301.072.  BUDGET, REVENUES, AND EXPENSES. (a)  The
  executive director shall submit to the board annually a budget
  using generally accepted accounting principles. Notwithstanding
  any other provision of law, including the General Appropriations
  Act, the budget shall be adopted and approved only by the board.
         (b)  The board shall be responsible for all direct and
  indirect costs of the board's existence and operation. The board
  may not directly or indirectly cause the general revenue fund to
  incur any cost.
         (c)  Subject to any limitations in this chapter, the board
  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 board and funding the
  budget adopted and approved under Subsection (a).
         (d)  All fees and funds collected by the board and any funds
  appropriated to the board shall be deposited with the comptroller.  
  The comptroller shall separately account for the board's funds.  
  The board and the comptroller by contract shall determine the
  depository, investment, and other financial services the
  comptroller shall provide to the board.
         (e)  Not later than August 31 of each fiscal year, the board
  shall remit a nonrefundable retainer to the comptroller in an
  amount not less than $10,000. The board shall reimburse the
  comptroller for all costs in excess of the nonrefundable retainer
  amounts paid each fiscal year incurred in providing financial
  services to the board.
         (f)  Not later than August 31 of each fiscal year, the board
  shall remit $3.75 million to the comptroller for deposit in the
  general revenue fund.
         (g)  Not later than August 31 of each fiscal year, the board
  shall remit to the comptroller for deposit in the general revenue
  fund all administrative penalties collected by the board during the
  fiscal year, and the amount of administrative penalties deposited
  shall count toward the amount the board is required to remit under
  Subsection (f).
         (h)  The executive director shall submit to the board, as
  directed by the board, a report of the receipts and expenditures of
  the board.
         (i)  The fiscal year for the board begins on September 1 and
  ends on August 31.
         Sec. 301.073.  AUDITS. (a)  This subchapter does not affect
  the duty of the state auditor to audit the board. The state auditor
  shall enter into a contract and schedule with the board to conduct
  audits, including financial reports and performance audits.
         (b)  Not later than August 31 of each fiscal year, the board
  shall remit a nonrefundable retainer to the state auditor in an
  amount not less than $10,000.  The board shall reimburse the state
  auditor for all costs in excess of the nonrefundable retainer
  amounts paid each fiscal year incurred in performing the audits and
  shall provide to the governor a copy of any audit performed.
         Sec. 301.074.  RECORDS; REPORTING REQUIREMENTS. (a) The
  board shall keep financial and statistical information as necessary
  to disclose completely and accurately the financial condition and
  results of operations of the board.
         (b)  Before the beginning of each regular session of the
  legislature, the board 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
  describing all of the board's activities in the previous biennium.
  The report must include:
               (1)  an audit as required by Section 301.073;
               (2)  a financial report of the previous fiscal
  biennium, including reports on financial condition and results of
  operations;
               (3)  a description of all changes in fees imposed by the
  board;
               (4)  a report including five fiscal years of trend data
  on the number of examination candidates and license holders and the
  programs of study and enforcement activities of the board;
               (5)  a list of all rules adopted or repealed since the
  date of the previous report; and
               (6)  the reports of any audits conducted by the State
  Office of Risk Management or the Texas Workforce Commission civil
  rights division.
         (c)  In addition to the reporting requirements of Subsection
  (b), not later than November 1 of each year, the board 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 board personnel and the total
  amount of per diem expenses and travel expenses paid for all board
  employees;
               (2)  the total amount of per diem expenses and travel
  expenses paid for each member of the board;
               (3)  the board's operating plan and annual budget; and
               (4)  a detailed report of all revenue received and all
  expenses incurred by the board in the previous 12 months.
         Sec. 301.075.  ABILITY TO CONTRACT. (a)  To carry out and
  promote the objectives of this chapter, the board may enter into
  contracts and do all other acts incidental to those contracts that
  are necessary for the administration of the board's affairs and for
  the attainment of the board's purposes, except as limited by
  Subsection (b).
         (b)  Any indebtedness, liability, or obligation of the board
  incurred under this section may not:
               (1)  create a debt or other liability of this state or
  another entity other than the board; or
               (2)  create any personal liability on the part of the
  members of the board or the board's employees.
         Sec. 301.076.  PROPERTY. The board 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 board;
               (2)  sell or otherwise dispose of any real, personal,
  or mixed property, or any interest in property, that the board
  determines is not necessary or convenient to the exercise of the
  board'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 board; and
               (4)  borrow money, as may be authorized from time to
  time by an affirmative vote of a two-thirds majority of the board,
  for a period not to exceed five years if necessary or convenient to
  the exercise of the board's powers, rights, privileges, or
  functions.
         Sec. 301.077.  ADMINISTRATIVE HEARINGS. (a) Not later than
  August 31 of each fiscal year, the board shall remit a nonrefundable
  retainer to the State Office of Administrative Hearings in an
  amount not less than $25,000 for hearings conducted under this
  chapter.
         (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 board reasonable fees, in excess of the
  nonrefundable retainer amount paid each fiscal year, associated
  with conducting a hearing under this chapter.
         Sec. 301.078.  SUITS. (a)  The office of the attorney
  general shall represent the board in any litigation.
         (b)  Not later than August 31 of each fiscal year, the board
  shall remit a nonrefundable retainer to the office of the attorney
  general in an amount not less than $10,000. The nonrefundable
  retainer shall be applied to any services provided to the board. If
  additional litigation services are required, the attorney general
  may assess and collect from the board reasonable attorney's fees,
  in excess of the nonrefundable retainer amount paid each fiscal
  year, associated with any litigation under this section.
         Sec. 301.079.  POST-PARTICIPATION LIABILITY. (a) If the
  board no longer has status under this subchapter as a self-directed
  semi-independent agency for any reason, the board shall be liable
  for any expenses or debts incurred by the board during the time the
  board was a self-directed semi-independent agency. The board's
  liability under this section includes liability for any lease
  entered into by the board. 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 board 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 board
  during the time the board was a self-directed semi-independent
  agency, including unexpended fees deposited with the comptroller,
  shall be transferred to this state.
         Sec. 301.080.  DUE PROCESS; OPEN GOVERNMENT. The board 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. 301.081.  MEMBERSHIP IN EMPLOYEES RETIREMENT SYSTEM.
  Employees of the board are members of the Employees Retirement
  System of Texas under Chapter 812, Government Code, and the board's 
  transition to semi-independent status as provided by this
  subchapter has no effect on the employees' membership or any
  benefits under that system.
         Sec. 301.082.  GIFTS. (a)  Notwithstanding any other law,
  the board may not accept a gift, grant, or donation:
               (1)  from a party to an enforcement action; or
               (2)  to pursue a specific investigation or enforcement
  action.
         (b)  The board must:
               (1)  report each gift, grant, or donation that the
  board receives as a separate item in the board's report required
  under Section 301.074(b); and
               (2)  include with the report a statement indicating the
  purpose for which each gift, grant, or donation was donated and
  used.
         Sec. 301.083.  HEALTH PROFESSIONS COUNCIL. Not later than
  September 30 of each fiscal year, the board shall remit a
  nonrefundable prorated assessment to the Health Professions
  Council under Section 101.006 in an amount not less than $29,000.
         SECTION 11.  Section 301.056, Occupations Code, is amended
  to read as follows:
         Sec. 301.056.  PER DIEM; REIMBURSEMENT. (a) Each board
  member is entitled to receive a per diem [as set by the General
  Appropriations Act] for each day the member engages in the business
  of the board.
         (b)  A board member is entitled to reimbursement for travel
  expenses incurred while conducting board business, including
  expenses for transportation, meals, and lodging[, as provided by
  the General Appropriations Act].
         SECTION 12.  Section 301.059(c), Occupations Code, is
  amended to read as follows:
         (c)  A person appointed to the board 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 13.  Section 301.155(a), Occupations Code, is
  amended to read as follows:
         (a)  The board by rule shall establish fees in amounts
  reasonable and necessary to cover the costs of administering this
  chapter. [The board may not set a fee that existed on September 1,
  1993, in an amount less than the amount of that fee on that date.]
         SECTION 14.  Chapter 552, Occupations Code, is amended by
  designating Sections 552.001 through 552.012 as Subchapter A and
  adding a subchapter heading to read as follows:
  SUBCHAPTER A.  ORGANIZATION OF BOARD
         SECTION 15.  Chapter 552, Occupations Code, is amended by
  adding Subchapter B to read as follows:
  SUBCHAPTER B.  SELF-DIRECTED AND SEMI-INDEPENDENT STATUS OF BOARD
         Sec. 552.051.  SELF-DIRECTED AND SEMI-INDEPENDENT STATUS.
  Notwithstanding any other provision of law, the board is
  self-directed and semi-independent as specified by this
  subchapter.
         Sec. 552.052.  BUDGET, REVENUES, AND EXPENSES. (a)  The
  executive director shall submit to the board annually a budget
  using generally accepted accounting principles. Notwithstanding
  any other provision of law, including the General Appropriations
  Act, the budget shall be adopted and approved only by the board.
         (b)  The board shall be responsible for all direct and
  indirect costs of the board's existence and operation. The board
  may not directly or indirectly cause the general revenue fund to
  incur any cost.
         (c)  Subject to any limitations in this subtitle, the board
  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 board and funding the
  budget adopted and approved under Subsection (a).
         (d)  All fees and funds collected by the board and any funds
  appropriated to the board shall be deposited with the comptroller.  
  The comptroller shall separately account for the board's funds.  
  The board and the comptroller by contract shall determine the
  depository, investment, and other financial services the
  comptroller shall provide to the board.
         (e)  Not later than August 31 of each fiscal year, the board
  shall remit a nonrefundable retainer to the comptroller in an
  amount not less than $10,000. The board shall reimburse the
  comptroller for all costs in excess of the nonrefundable retainer
  amounts paid each fiscal year incurred in providing financial
  services to the board.
         (f)  Not later than August 31 of each fiscal year, the board
  shall remit to the comptroller $800,000 to be deposited in the
  general revenue fund.
         (g)  Not later than August 31 of each fiscal year, the board
  shall remit to the comptroller for deposit in the general revenue
  fund all administrative penalties collected by the board during the
  fiscal year, and the amount of administrative penalties deposited
  shall count toward the amount the board is required to remit under
  Subsection (f).
         (h)  The executive director shall submit to the board, as
  directed by the board, a report of the receipts and expenditures of
  the board.
         (i)  The fiscal year for the board begins on September 1 and
  ends on August 31.
         Sec. 552.053.  AUDITS. (a)  This subchapter does not affect
  the duty of the state auditor to audit the board. The state auditor
  shall enter into a contract and schedule with the board to conduct
  audits, including financial reports and performance audits.
         (b)  Not later than August 31 of each fiscal year, the board
  shall remit a nonrefundable retainer to the state auditor in an
  amount not less than $10,000. The board shall reimburse the state
  auditor for all costs in excess of the nonrefundable retainer
  amounts paid each fiscal year incurred in performing the audits and
  shall provide to the governor a copy of any audit performed.
         Sec. 552.054.  RECORDS; REPORTING REQUIREMENTS. (a) The
  board shall keep financial and statistical information as necessary
  to disclose completely and accurately the financial condition and
  results of operations of the board.
         (b)  Before the beginning of each regular session of the
  legislature, the board 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
  describing all of the board's activities in the previous biennium.
  The report must include:
               (1)  an audit as required by Section 552.053;
               (2)  a financial report of the previous fiscal
  biennium, including reports on financial condition and results of
  operations;
               (3)  a description of all changes in fees imposed by the
  board;
               (4)  a report including five fiscal years of trend data
  on the number of examination candidates, license holders, and
  registrants and the enforcement activities of the board;
               (5)  a list of all rules adopted or repealed since the
  date of the previous report; and
               (6)  the reports of any audits conducted by the State
  Office of Risk Management or the Texas Workforce Commission civil
  rights division.
         (c)  In addition to the reporting requirements of Subsection
  (b), not later than November 1 of each year, the board 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 board personnel and the total
  amount of per diem expenses and travel expenses paid for all board
  employees;
               (2)  the total amount of per diem expenses and travel
  expenses paid for each member of the board;
               (3)  the board's operating plan and annual budget; and
               (4)  a detailed report of all revenue received and all
  expenses incurred by the board in the previous 12 months.
         Sec. 552.055.  ABILITY TO CONTRACT. (a)  To carry out and
  promote the objectives of this chapter, the board may enter into
  contracts and do all other acts incidental to those contracts that
  are necessary for the administration of the board's affairs and for
  the attainment of the board's purposes, except as limited by
  Subsection (b).
         (b)  Any indebtedness, liability, or obligation of the board
  incurred under this section may not:
               (1)  create a debt or other liability of this state or
  another entity other than the board; or
               (2)  create any personal liability on the part of the
  members of the board or the board's employees.
         Sec. 552.056.  PROPERTY. The board 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 board;
               (2)  sell or otherwise dispose of any real, personal,
  or mixed property, or any interest in property, that the board
  determines is not necessary or convenient to the exercise of the
  board'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 board; and
               (4)  borrow money, as may be authorized from time to
  time by an affirmative vote of a two-thirds majority of the board,
  for a period not to exceed five years if necessary or convenient to
  the exercise of the board's powers, rights, privileges, or
  functions.
         Sec. 552.057.  ADMINISTRATIVE HEARINGS. (a) Not later than
  August 31 of each fiscal year, the board shall remit a nonrefundable
  retainer to the State Office of Administrative Hearings in an
  amount not less than $17,000 for hearings conducted under Chapter
  565.
         (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 board reasonable fees, in excess of the
  nonrefundable retainer amount paid each fiscal year, associated
  with conducting a hearing under Chapter 565.
         Sec. 552.058.  SUITS. (a)  The office of the attorney
  general shall represent the board in any litigation.
         (b)  Not later than August 31 of each fiscal year, the board
  shall remit a nonrefundable retainer to the office of the attorney
  general in an amount not less than $10,000. The nonrefundable
  retainer shall be applied to any services provided to the board. If
  additional litigation services are required, the attorney general
  may assess and collect from the board reasonable attorney's fees,
  in excess of the nonrefundable retainer amount paid each fiscal
  year, associated with any litigation under this section.
         Sec. 552.059.  POST-PARTICIPATION LIABILITY. (a) If the
  board no longer has status under this subchapter as a self-directed
  semi-independent agency for any reason, the board shall be liable
  for any expenses or debts incurred by the board during the time the
  board was a self-directed semi-independent agency. The board's
  liability under this section includes liability for any lease
  entered into by the board. 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 board 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 board
  during the time the board was a self-directed semi-independent
  agency, including unexpended fees deposited with the comptroller,
  shall be transferred to this state.
         Sec. 552.060.  DUE PROCESS; OPEN GOVERNMENT. The board 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. 552.061.  MEMBERSHIP IN EMPLOYEES RETIREMENT SYSTEM.
  Employees of the board are members of the Employees Retirement
  System of Texas under Chapter 812, Government Code, and the board's 
  transition to semi-independent status as provided by this
  subchapter has no effect on the employees' membership or any
  benefits under that system.
         Sec. 552.062.  GIFTS. (a)  Notwithstanding any other law,
  the board may not accept a gift, grant, or donation:
               (1)  from a party to an enforcement action; or
               (2)  to pursue a specific investigation or enforcement
  action.
         (b)  The board must:
               (1)  report each gift, grant, or donation that the
  board receives as a separate item in the board's report required
  under Section 552.054(b); and
               (2)  include with the report a statement indicating the
  purpose for which each gift, grant, or donation was donated and
  used.
         Sec. 552.063.  HEALTH PROFESSIONS COUNCIL. (a) Not later
  than September 30 of each fiscal year, the board shall remit a
  nonrefundable prorated assessment to the Health Professions
  Council under Section 101.006 in an amount not less than $26,000.
         (b)  Not later than September 30 of each fiscal year in which
  the board uses the Health Professions Council's shared regulatory
  database system, the board shall remit an additional nonrefundable
  prorated assessment to the Health Professions Council under Section
  101.006 in an amount not less than $262,000, except that for the
  fiscal year ending August 31, 2015, the board shall remit not less
  than $264,000 as the additional prorated assessment under this
  subsection.
         SECTION 16.  Section 552.006(c), Occupations Code, is
  amended to read as follows:
         (c)  A person appointed to the board 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 17.  Section 552.009, Occupations Code, is amended
  to read as follows:
         Sec. 552.009.  PER DIEM; REIMBURSEMENT. (a) Each member of
  the board is entitled to a per diem [set by legislative
  appropriation] for each day the member engages in board business.
         (b)  A member is entitled to reimbursement for travel
  expenses [as prescribed by the General Appropriations Act].
         SECTION 18.  Section 564.051(c), Occupations Code, is
  amended to read as follows:
         (c)  Funds and surcharges collected under this section
  [shall be deposited in the general revenue fund and] may only be
  used by the board to administer the program authorized by this
  section, including providing for initial evaluation and referral of
  an impaired pharmacist or pharmacy student by a qualified health
  professional and paying the administrative costs incurred by the
  board in connection with that funding.  The money may not be used
  for costs incurred for treatment or rehabilitation after initial
  evaluation and referral.
         SECTION 19.  Sections 153.051(b) and (d), 153.052,
  153.0535(b), and 554.007(a), Occupations Code, are repealed.
         SECTION 20.  (a)  To provide a reasonable period for the
  Texas Medical Board, Texas Board of Nursing, and Texas State Board
  of Pharmacy to establish the boards as self-directed and
  semi-independent under Subchapter C, Chapter 152, Subchapter B-1,
  Chapter 301, and Subchapter B, Chapter 552, Occupations Code, as
  added by this Act, the following amounts are appropriated from the
  general revenue fund to each board:
               (1)  for the state fiscal year ending August 31, 2014,
  an amount equal to 50 percent of the amount of general revenue
  appropriated to the board for the state fiscal year ending August
  31, 2013; and
               (2)  for the state fiscal year ending August 31, 2015,
  an amount equal to 50 percent of the amount of general revenue
  appropriated to the board for the state fiscal year ending August
  31, 2013.
         (b)  Subject to Section 152.102, 301.072, or 552.052,
  Occupations Code, as added by this Act, the appropriations made by
  Subsection (a) of this section may be spent by the board to which
  the appropriation is made as the board directs. Each board shall
  repay to the general revenue fund the appropriation made to the
  board for the state fiscal year ending August 31, 2014, not later
  than that date and as funds become available. Each board shall
  repay to the general revenue fund the appropriation made to the
  board for the state fiscal year ending August 31, 2015, not later
  than that date and as funds become available.  The repayment of an
  appropriation under this subsection is required in addition to the
  funds required to be remitted to the general revenue fund under
  Section 152.102(f), 301.072(f), or 552.052(f), Occupations Code,
  as added by this Act.
         (c)  The transfer of the Texas Medical Board, Texas Board of
  Nursing, or Texas State Board of Pharmacy to self-directed and
  semi-independent status under Subchapter C, Chapter 152,
  Subchapter B-1, Chapter 301, or Subchapter B, Chapter 552,
  Occupations Code, as added by this Act, and the expiration of
  self-directed and semi-independent status of a board may not act to
  cancel, suspend, or prevent:
               (1)  any debt owed to or by the board;
               (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 board in the
  administration or enforcement of the board's duties.
         (d)  The Texas Medical Board, Texas Board of Nursing, and
  Texas State Board of Pharmacy shall continue to have and exercise
  the powers and duties allocated to each board under law, except as
  specifically provided by this Act.
         (e)  Title to or ownership of all supplies, materials,
  records, equipment, books, papers, and furniture used by the Texas
  Medical Board, Texas Board of Nursing, or Texas State Board of
  Pharmacy is transferred to each respective board. This Act does not
  affect any property owned by any of the boards on or before the
  effective date of this Act.
         (f)  The Texas Medical Board shall pay rent to the state for
  the use and occupancy of state-owned office space for any period
  during which the board occupies state-owned office space.
  Reasonable rent shall be determined by the Texas Facilities
  Commission. Aggregate rental payments may not be less than $430,000
  each fiscal year for any period during which the board occupies
  state-owned office space.  The board may pay a prorated amount of
  rent for any partial fiscal year during which the board occupies
  state-owned office space if the Texas Facilities Commission allows
  the board to lease the space for less than a full fiscal year.
         (g)  The Texas Board of Nursing shall pay rent to the state
  for the use and occupancy of state-owned office space for any period
  during which the board occupies state-owned office space.
  Reasonable rent shall be determined by the Texas Facilities
  Commission. Aggregate rental payments may not be less than $278,000
  each fiscal year during which the board occupies state-owned office
  space.  The board may pay a prorated amount of rent for any partial
  fiscal year during which the board occupies state-owned office
  space if the Texas Facilities Commission allows the board to lease
  the space for less than a full fiscal year.
         (h)  The Texas State Board of Pharmacy shall pay rent to the
  state for the use and occupancy of state-owned office space for any
  period during which the board occupies state-owned office space.
  Reasonable rent shall be determined by the Texas Facilities
  Commission. Aggregate rental payments may not be less than $162,000
  each fiscal year for any period during which the board occupies
  state-owned office space. The board may pay a prorated amount of
  rent for any partial fiscal year during which the board occupies
  state-owned office space if the Texas Facilities Commission allows
  the board to lease the space for less than a full fiscal year.
         (i)  If a conflict exists between this Act and another Act of
  the 83rd Legislature, Regular Session, 2013, that relates to the
  self-directed and semi-independent status of the Texas Medical
  Board, the Texas Board of Nursing, or the Texas State Board of
  Pharmacy, this Act controls without regard to the relative dates of
  enactment.
         SECTION 21.  The Texas Medical Board, Texas Board of
  Nursing, and Texas State Board of Pharmacy shall continue to be
  agencies of this state for all purposes, and no provision of this
  Act may be construed otherwise.
         SECTION 22.  This Act takes effect September 1, 2013.