85R6755 JCG-F
 
  By: Hancock S.B. No. 2208
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the transfer of the regulation of property tax
  professionals from the Texas Department of Licensing and Regulation
  to the comptroller of public accounts; providing civil and
  administrative penalties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1151.002(5), Occupations Code, is
  amended to read as follows:
               (5)  "Code of ethics" means a formal statement of
  ethical standards of conduct adopted by the comptroller
  [commission].
         SECTION 2.  Section 1151.004(b), Occupations Code, is
  amended to read as follows:
         (b)  The comptroller [department] shall thoroughly
  investigate a complaint of a violation of this section.
         SECTION 3.  Sections 1151.051(a) and (c), Occupations Code,
  are amended to read as follows:
         (a)  The Texas Tax Professional Advisory Committee consists
  of seven members appointed by the comptroller [presiding officer of
  the commission with the approval of the commission] as follows:
               (1)  two members who are certified under this chapter
  as registered professional appraisers;
               (2)  two members who are certified under this chapter
  as registered Texas collectors or registered Texas assessors; and
               (3)  three members who represent the public.
         (c)  The comptroller [presiding officer of the commission]
  shall designate one member of the committee as the presiding
  officer.
         SECTION 4.  Section 1151.0511, Occupations Code, is amended
  to read as follows:
         Sec. 1151.0511.  PUBLIC MEMBER ELIGIBILITY. A person may
  not be a public member of the committee if the person or the
  person's spouse:
               (1)  is registered, certified, or licensed by a
  regulatory agency in the field of property tax appraisal,
  assessment, or collection;
               (2)  is employed by or participates in the management
  of a business entity or other organization regulated by or
  receiving money from the comptroller [department];
               (3)  owns or controls, directly or indirectly, more
  than a 10 percent interest in a business entity or other
  organization regulated by or receiving money from the comptroller
  [department];
               (4)  uses or receives a substantial amount of tangible
  goods, services, or money from the comptroller [department] other
  than compensation or reimbursement authorized by law for committee
  membership, attendance, or expenses; or
               (5)  at any time has served on an appraisal review
  board.
         SECTION 5.  Section 1151.0512(c), Occupations Code, is
  amended to read as follows:
         (c)  A person may not be a member of the committee if the
  person or the person's spouse is required to register as a lobbyist
  under Chapter 305, Government Code, because of the person's
  activities for compensation on behalf of a profession related to
  the operation of the committee or the comptroller's office
  [department].
         SECTION 6.  The heading to Subchapter C, Chapter 1151,
  Occupations Code, is amended to read as follows:
  SUBCHAPTER C. DUTIES OF COMPTROLLER [COMMISSION, EXECUTIVE
  DIRECTOR, DEPARTMENT,] AND ADVISORY COMMITTEE
         SECTION 7.  Section 1151.101, Occupations Code, is amended
  to read as follows:
         Sec. 1151.101.  FEES. The comptroller [commission], with
  the advice of the committee, shall establish fees under this
  chapter in amounts reasonable and necessary to cover the costs of
  administering the programs and activities under this chapter.
         SECTION 8.  Section 1151.102, Occupations Code, is amended
  to read as follows:
         Sec. 1151.102.  GENERAL RULEMAKING AUTHORITY. The
  comptroller [commission] may adopt and enforce rules necessary for
  the performance of the comptroller's [department's] duties under
  this chapter.
         SECTION 9.  Section 1151.103, Occupations Code, is amended
  to read as follows:
         Sec. 1151.103.  ESTABLISHMENT OF PROFESSIONAL STANDARDS.
  The comptroller [commission] shall establish standards of
  professional practice, conduct, education, and ethics for
  appraisers, assessors, and collectors consistent with the purposes
  and intent of this chapter.
         SECTION 10.  Section 1151.104, Occupations Code, is amended
  to read as follows:
         Sec. 1151.104.  ENFORCEMENT OF CHAPTER. The comptroller
  [department] may ensure strict compliance with and enforce this
  chapter.
         SECTION 11.  Section 1151.106(a), Occupations Code, is
  amended to read as follows:
         (a)  The comptroller [commission] by rule shall:
               (1)  adopt a classification system for registrants; and
               (2)  establish minimum requirements for each
  classification.
         SECTION 12.  Section 1151.107(a), Occupations Code, is
  amended to read as follows:
         (a)  The comptroller [department] shall maintain a roster of
  registrants that includes each registrant's name, place of
  employment, and classification.
         SECTION 13.  Section 1151.108, Occupations Code, is amended
  to read as follows:
         Sec. 1151.108.  COMMITTEE DUTIES. The committee shall:
               (1)  recommend to the comptroller [commission] rules
  and standards regarding technical issues relating to tax
  professionals;
               (2)  provide advice to the comptroller [commission]
  regarding continuing education courses and curricula for
  registrants;
               (3)  provide advice to the comptroller [commission]
  regarding the contents of any examination required by the
  comptroller [commission] under this chapter; and
               (4)  educate, and respond to questions from, the
  comptroller [commission and the department] regarding issues
  affecting tax professionals.
         SECTION 14.  Section 1151.151, Occupations Code, is amended
  to read as follows:
         Sec. 1151.151.  REGISTRATION REQUIRED; EXEMPTION. The
  following persons must register with the comptroller [department]:
               (1)  the chief appraiser of an appraisal district, an
  appraisal supervisor or assistant, a property tax appraiser, an
  appraisal engineer, and any other person authorized to render
  judgment on, recommend, or certify an appraised value to the
  appraisal review board of an appraisal district;
               (2)  a person who engages in appraisal of property for
  ad valorem tax purposes for an appraisal district or a taxing unit;
               (3)  an assessor-collector other than a county
  assessor-collector;
               (4)  a collector or another person designated by a
  governing body as the chief administrator of the taxing unit's
  assessment functions, collection functions, or both; and
               (5)  a person who performs assessment or collection
  functions for a taxing unit and is required to register by the chief
  administrator of the unit's tax office.
         SECTION 15.  Section 1151.153, Occupations Code, is amended
  to read as follows:
         Sec. 1151.153.  REGISTRATION APPLICATION.  (a)  An
  application for registration must be made on the printed form
  provided by the comptroller [department]. In prescribing the
  contents of an application form, the comptroller [commission] shall
  ensure that the form requires information sufficient to properly
  classify the applicant.
         (b)  Each application form the comptroller [department]
  provides must be accompanied by the code of ethics.
         SECTION 16.  Section 1151.155, Occupations Code, is amended
  to read as follows:
         Sec. 1151.155.  ACTION ON APPLICATION.  (a)  The comptroller
  [department] shall act on an application for registration not later
  than the 30th day after the date the application is received.
         (b)  The comptroller [department] shall:
               (1)  classify and register each applicant the
  comptroller [department] approves; and
               (2)  notify the registrant of the requirements for:
                     (A)  maintenance of the registrant's current
  registration; and
                     (B)  professional certification by the
  comptroller [department].
         SECTION 17.  Section 1151.156, Occupations Code, is amended
  to read as follows:
         Sec. 1151.156.  DISCRIMINATION PROHIBITED. The comptroller
  [department] may not refuse to register an applicant because of the
  race, color, disability, sex, religion, age, or national origin of
  the applicant.
         SECTION 18.  Section 1151.157(a), Occupations Code, is
  amended to read as follows:
         (a)  The comptroller [department] shall issue an
  identification card to each person registered under this chapter.
  While on official duty, the registrant shall have the
  identification card in the registrant's possession.
         SECTION 19.  Section 1151.158, Occupations Code, is amended
  to read as follows:
         Sec. 1151.158.  ANNUAL FEE; EXPIRATION AND RENEWAL OF
  REGISTRATION.  (a)  Except as otherwise provided by the comptroller
  [commission], a registration under this chapter is valid for one
  year and must be renewed annually. A registrant must pay an annual
  fee. The comptroller [commission] by rule may adopt a system under
  which registrations expire on various dates during the year.
         (b)  Not later than the 30th day before the date a person's
  registration under this chapter is scheduled to expire, the
  comptroller [The department] shall send written notice [notify a
  registrant under this chapter] of the impending expiration to the
  person at the person's last known address according to the records
  of the comptroller [of the registrant's registration as provided by
  Section 51.401(f)].
         SECTION 20.  Sections 1151.1581(a), (c), (e), and (f),
  Occupations Code, are amended to read as follows:
         (a)  The comptroller [commission] shall recognize, prepare,
  or administer continuing education programs for registrants under
  this chapter.
         (c)  A registrant must participate in the programs to the
  extent required by the comptroller [department] to keep the
  person's certificate of registration.
         (e)  The comptroller may set fees for continuing education
  courses and providers of continuing education courses in amounts
  reasonable and necessary to cover the comptroller's costs in
  administering [the comptroller's duties under] this section.
         (f)  As part of the continuing education requirements for a
  registered professional appraiser who is the chief appraiser of an
  appraisal district, the comptroller [commission] by rule shall
  require the registrant to complete:
               (1)  at least half of the required hours in a program
  devoted to one or more of the topics listed in Section 1151.164(b);
  and
               (2)  at least two of the required hours in a program of
  professional ethics specific to the chief appraiser of an appraisal
  district, including a program on the importance of maintaining the
  independence of an appraisal office from political pressure.
         SECTION 21.  Section 1151.160, Occupations Code, is amended
  by amending Subsections (a), (b), (c), (f), (g), (h), and (i) to
  read as follows:
         (a)  The comptroller [commission] by rule shall adopt
  minimum requirements for the certification of registrants. The
  requirements for certification of a registrant must emphasize the
  areas of responsibility of the registrant in performing the
  registrant's duties for the taxing unit.
         (b)  "Registered professional appraiser" is the highest
  level of certification established by the comptroller [commission]
  for a person engaged in appraisal.  "Registered Texas assessor" is
  the highest level of certification established by the comptroller
  [commission] for a person engaged in assessment. "Registered Texas
  collector" is the highest level of certification established by the
  comptroller [commission] for a person engaged in collection.
         (c)  A person registered as an appraiser shall become
  certified as a registered professional appraiser not later than the
  fifth anniversary of the date of the person's original
  registration. The person shall obtain certification by:
               (1)  successfully completing the certification
  requirements established by comptroller [commission] rule; or
               (2)  if the person is certified or licensed under
  Chapter 1103 as an appraiser by the Texas Appraiser Licensing and
  Certification Board, passing the appropriate examination required
  under Section 1151.161.
         (f)  In this subsection, "break in service" means time during
  which a person is not employed in the type of employment for which
  the person is registered, other than a period resulting from
  termination for cause. A registrant who has a break in service is
  entitled to an adjustment of the applicable anniversary date
  described by Subsection (c), (d), or (e) equal to the length of the
  break in service, as determined by comptroller [commission] rule.
  A person who has a break in service that exceeds five years must
  submit a new application and proof of completion of current course
  requirements, unless otherwise excepted under comptroller
  [commission] rule.
         (g)  A registrant who has not obtained the certification
  required by Subsection (c), (d), or (e) within the time required by
  the applicable subsection is entitled to a one-year extension to
  meet the certification requirements if:
               (1)  the applicant submits proof of active military
  status performed after the date of the applicant's original
  registration;
               (2)  the applicant submits proof of leave under the
  federal Family and Medical Leave Act of 1993 (29 U.S.C. Section 2601
  et seq.) taken after the date of the applicant's original
  registration;
               (3)  the applicant submits proof of a death or illness
  in the family or an unforeseen emergency occurring after the date of
  the applicant's original registration that prevented the
  registrant from meeting certification requirements;
               (4)  a chief appraiser, chief administrative officer of
  a political subdivision, or other person authorized by the
  comptroller [commission] by rule requests the extension on behalf
  of an employee;
               (5)  the applicant requesting the extension is a chief
  appraiser; or
               (6)  the applicant meets another reasonable
  qualification for an extension established by the comptroller
  [commission] by rule.
         (h)  The comptroller [commission] shall establish reasonable
  qualifications for reapplication for a registration by an applicant
  who does not meet any of the requirements of Subsection (g) [or
  Section 1151.1605].
         (i)  The comptroller [commission] shall adopt rules as
  necessary to implement this section.
         SECTION 22.  Section 1151.161, Occupations Code, is amended
  to read as follows:
         Sec. 1151.161.  EXAMINATION FOR CERTIFICATION; APPLICATION;
  FEE.  (a)  The comptroller [commission] by rule shall require a
  registrant to pass one or more examinations to be certified. The
  comptroller [commission] by rule shall ensure that any examination
  required for certification is administered in compliance with the
  Americans with Disabilities Act of 1990 (42 U.S.C. Section 12101 et
  seq.).
         (b)  An applicant for examination under this section must
  apply to take the examination in the manner prescribed by the
  comptroller [department].
         (c)  The comptroller [department] may accept, develop, or
  contract for the examinations required by this section, including
  the administration of the examinations. The comptroller must
  approve the content of an examination [accepted, developed, or
  contracted for by the department]. The comptroller [department]
  may require a third-party vendor to collect a fee associated with
  the examination directly from examinees.
         SECTION 23.  Section 1151.162, Occupations Code, is amended
  to read as follows:
         Sec. 1151.162.  RULES RELATING TO RECERTIFICATION AND
  SPECIALIZATION. The comptroller [commission] may adopt rules:
               (1)  regarding recertification to ensure that each
  person certified under this chapter who is engaged in appraisal,
  assessment, or collection is registered and professionally
  competent; and
               (2)  establishing specialized classifications,
  designations, and requirements as necessary to accomplish the
  purposes of this chapter, including maintaining high standards of
  professional practice in all phases of property taxation.
         SECTION 24.  Section 1151.163, Occupations Code, is amended
  to read as follows:
         Sec. 1151.163.  REGISTRATION BY ENDORSEMENT. The
  comptroller [department] may waive any prerequisite to obtaining a
  certificate of registration for an applicant after reviewing the
  applicant's credentials and determining that the applicant holds a
  license or certificate of registration issued by another
  jurisdiction that has requirements substantially equivalent to
  those of this state.
         SECTION 25.  Section 1151.164, Occupations Code, is amended
  to read as follows:
         Sec. 1151.164.  CHIEF APPRAISER TRAINING PROGRAM.  (a)  The
  comptroller [department] shall implement a training program for
  newly appointed chief appraisers and shall prescribe the curriculum
  for the training program as provided by this section.
         (b)  The training program must provide the appointee with
  information regarding:
               (1)  this chapter;
               (2)  the programs operated by the comptroller under
  this chapter [department];
               (3)  the role and functions of the comptroller under
  this chapter [department];
               (4)  the rules of the comptroller under this chapter
  [commission], with an emphasis on the rules that relate to ethical
  behavior;
               (5)  the role and functions of the chief appraiser, the
  appraisal district board of directors, and the appraisal review
  board;
               (6)  the importance of maintaining the independence of
  an appraisal office from political pressure;
               (7)  the importance of prompt and courteous treatment
  of the public;
               (8)  the finance and budgeting requirements for an
  appraisal district, including appropriate controls to ensure that
  expenditures are proper; and
               (9)  the requirements of:
                     (A)  the open meetings law, Chapter 551,
  Government Code;
                     (B)  the public information law, Chapter 552,
  Government Code;
                     (C)  the administrative procedure law, Chapter
  2001, Government Code;
                     (D)  other laws relating to public officials,
  including conflict-of-interest laws; and
                     (E)  the standards of ethics imposed by the
  Uniform Standards of Professional Appraisal Practice.
         SECTION 26.  Section 1151.165, Occupations Code, is amended
  to read as follows:
         Sec. 1151.165.  INACTIVE STATUS. The comptroller
  [commission] may adopt rules to allow a registrant to place a
  registration issued by the comptroller [department] on inactive
  status [in the same manner as a license is placed on inactive status
  under Section 51.4011].
         SECTION 27.  Subchapter E, Chapter 1151, Occupations Code,
  is amended by adding Section 1151.201 to read as follows:
         Sec. 1151.201.  INSPECTIONS AND INVESTIGATIONS.  The
  comptroller may conduct inspections or investigations as necessary
  to enforce this chapter.
         SECTION 28.  Sections 1151.202(a), (b), and (c), Occupations
  Code, are amended to read as follows:
         (a)  The comptroller [department] may deny an application
  for registration, revoke, suspend, or refuse to renew a
  registration, reprimand a registrant, [of] or take other
  disciplinary action [as described by Chapter 51] against a person
  who violates this chapter or a comptroller [commission] rule
  adopted under this chapter.
         (b)  The comptroller [commission] by rule shall adopt
  written guidelines to ensure that denials of registration under
  this section and other disciplinary actions [under Chapter 51] are
  administered consistently.
         (c)  The comptroller may place on probation a person whose
  registration is suspended. If a registration suspension is
  probated, the comptroller may require the person to:
               (1)  report regularly to the comptroller on matters
  that are the basis of the probation;
               (2)  limit practice to the areas prescribed by the
  comptroller; or
               (3)  continue or renew professional education until the
  person attains a degree of skill satisfactory to the comptroller in
  those areas that are the basis for the probation [Before imposing an
  administrative penalty under Subchapter F, Chapter 51, against a
  registrant, the department must consider evidence that the
  registrant:
               [(1)     attempted in good faith to implement or execute a
  law, policy, rule, order, budgetary restriction, or other
  regulation provided by the laws of this state, the comptroller, or
  the governing body or the chief administrator of the appraisal
  district or taxing jurisdiction that employs the registrant;
               [(2)     acted on the advice of counsel or the
  comptroller; or
               [(3)     had discretion over the matter on which the
  complaint is based, if the complaint is based solely on grounds that
  the registrant decided incorrectly or failed to exercise discretion
  in favor of the complainant].
         SECTION 29.  Subchapter E, Chapter 1151, Occupations Code,
  is amended by adding Section 1151.203 to read as follows:
         Sec. 1151.203.  HEARINGS; ADMINISTRATIVE PROCEDURE. (a) If
  the comptroller proposes to deny an application for registration or
  take disciplinary action against a person, the person is entitled
  to a hearing.
         (b)  The proceedings relating to a denial of an application
  for registration and disciplinary action by the comptroller under
  this chapter are governed by Chapter 2001, Government Code. A
  hearing under this chapter shall be conducted by the State Office of
  Administrative Hearings.
         SECTION 30.  Section 1151.204, Occupations Code, is amended
  to read as follows:
         Sec. 1151.204.  DISMISSAL OF COMPLAINTS.  (a)  After
  investigation, the comptroller [department] may dismiss a
  complaint filed under Section 1151.206, in part or entirely,
  without conducting a hearing if the complaint does not credibly
  allege a violation of this chapter or the standards established by
  the comptroller [commission] for registrants under this chapter.
         (b)  After investigation, the comptroller [department] shall
  dismiss a complaint, in part or entirely, without conducting a
  hearing if:
               (1)  the complaint challenges:
                     (A)  the imposition of or failure to waive
  penalties or interest under Sections 33.01 and 33.011, Tax Code;
                     (B)  the appraised value of a property;
                     (C)  the appraisal methodology;
                     (D)  the grant or denial of an exemption from
  taxation; or
                     (E)  any matter for which Title 1, Tax Code,
  specifies a remedy, including an action that a property owner is
  entitled to protest before an appraisal review board under Section
  41.41(a), Tax Code; and
               (2)  the subject matter of the complaint has not been
  finally resolved in the complainant's favor by an appraisal review
  board, a governing body, an arbitrator, a court, or the State Office
  of Administrative Hearings under Section 2003.901, Government
  Code.
         (c)  This section does not apply to:
               (1)  the comptroller's findings in a review performed 
  [a matter referred to the department by the comptroller] under
  Section 5.102, Tax Code, or a successor statute;
               (2)  a complaint concerning a registrant's failure to
  comply with the registration and certification requirements of this
  chapter; or
               (3)  a complaint concerning a newly appointed chief
  appraiser's failure to complete the training program described by
  Section 1151.164.
         SECTION 31.  Sections 1151.205(a) and (b), Occupations Code,
  are amended to read as follows:
         (a)  The comptroller [department] may request and, if
  necessary, compel by subpoena:
               (1)  the attendance of witnesses for examination under
  oath; and
               (2)  the production of records, documents, and other
  evidence relevant to the investigation of an alleged violation of
  this chapter or a comptroller [commission] rule for inspection and
  copying.
         (b)  If a person does not comply with the subpoena, the
  comptroller [department], acting through the attorney general, may
  file suit to enforce the subpoena in a district court in Travis
  County or in the county in which a hearing under this chapter 
  [conducted by the department] may be held.
         SECTION 32.  Section 1151.206, Occupations Code, is amended
  to read as follows:
         Sec. 1151.206.  COMPLAINT OF VIOLATION.  (a) A person may
  file a complaint with the comptroller [department] concerning a
  violation of this chapter or a rule adopted by the comptroller
  [commission] under this chapter.
         (b)  The comptroller may notify the local governmental
  entity that employs a registrant of a complaint against the
  registrant by sending a copy of the complaint letter to the local
  governmental entity.
         SECTION 33.  Subchapter E, Chapter 1151, Occupations Code,
  is amended by adding Sections 1151.207, 1151.208, and 1151.209 to
  read as follows:
         Sec. 1151.207.  CEASE AND DESIST ORDER. The comptroller may
  issue a cease and desist order if the comptroller determines that
  the action is necessary to prevent a violation of:
               (1)  this chapter; or
               (2)  a rule adopted or order issued under this chapter.
         Sec. 1151.208.  ADMINISTRATIVE PENALTY. (a)  The
  comptroller may impose an administrative penalty against a person
  who violates this chapter or a rule adopted under this chapter.
         (b)  Before imposing an administrative penalty against a
  registrant, the comptroller must consider evidence that the
  registrant:
               (1)  attempted in good faith to implement or execute a
  law, policy, rule, order, budgetary restriction, or other
  regulation provided by the laws of this state, the comptroller, or
  the governing body or the chief administrator of the appraisal
  district or taxing jurisdiction that employs the registrant;
               (2)  acted on the advice of counsel or the comptroller;
  or
               (3)  had discretion over the matter on which the
  complaint is based, if the complaint is based solely on grounds that
  the registrant decided incorrectly or failed to exercise discretion
  in favor of the complainant.
         (c)  The amount of the administrative penalty may not exceed
  $5,000.  Each day a violation continues or occurs is a separate
  violation for the purpose of imposing a penalty. The amount shall be
  based on:
               (1)  the seriousness of the violation, including the
  nature, circumstances, extent, and gravity of the violation;
               (2)  the economic harm caused by the violation;
               (3)  the history of previous violations;
               (4)  the amount necessary to deter a future violation;
               (5)  efforts to correct the violation; and
               (6)  any other matter that justice may require.
         (d)  The enforcement of the administrative penalty may be
  stayed during the time the order is under judicial review if the
  person pays the penalty to the clerk of the court or files a
  supersedeas bond with the court in the amount of the penalty.  A
  person who cannot afford to pay the penalty or file the bond may
  stay the enforcement by filing an affidavit in the manner required
  by the Texas Rules of Civil Procedure for a party who cannot afford
  to file security for costs, subject to the right of the comptroller
  to contest the affidavit as provided by those rules.
         (e)  The attorney general may sue to collect the penalty.
         (f)  A proceeding to impose the penalty is considered to be a
  contested case under Chapter 2001, Government Code.
         Sec. 1151.209.  INJUNCTIVE RELIEF; CIVIL PENALTY. (a) The
  attorney general or the comptroller may institute an action for
  injunctive relief to restrain a violation by a person who appears to
  be in violation of or threatening to violate this chapter or a rule
  adopted under this chapter.
         (b)  The attorney general or the comptroller may institute an
  action to collect a civil penalty from a person who appears to be in
  violation of this chapter or a rule adopted under this chapter. The
  amount of a civil penalty may not exceed $5,000 for each violation.
         (c)  Each day a violation occurs or continues to occur is a
  separate violation.
         (d)  The attorney general and the comptroller may recover
  reasonable expenses incurred in obtaining injunctive relief or a
  civil penalty under this section, including court costs, reasonable
  attorney's fees, investigative costs, witness fees, and deposition
  expenses.
         SECTION 34.  Section 1152.103, Occupations Code, is amended
  to read as follows:
         Sec. 1152.103.  MEMBERSHIP RESTRICTIONS. A person is not
  eligible for appointment as a member of the council if the person
  is:
               (1)  required to register with the secretary of state
  under Chapter 305, Government Code;
               (2)  required to register with the comptroller
  [department] under Chapter 1151; or
               (3)  exempt from the registration requirements imposed
  by this chapter, except as provided by Section 1152.102.
         SECTION 35.  Section 5.04, Tax Code, is amended to read as
  follows:
         Sec. 5.04.  TRAINING AND EDUCATION OF APPRAISERS.  (a)  The
  comptroller shall be [enter into a memorandum of understanding with
  the Texas Department of Licensing and Regulation or any successor
  agency] responsible for certifying tax professionals in this state
  and for [in] setting standards for and approving curricula and
  materials for use in training and educating appraisers and
  assessor-collectors. The [, and the] comptroller may contract or
  enter into a memorandum of understanding with other public
  agencies, educational institutions, or private organizations in
  sponsoring courses of instruction and training programs.
         (b)  An appraisal district shall reimburse an employee of the
  appraisal office for all actual and necessary expenses, tuition and
  other fees, and costs of materials incurred in attending, with
  approval of the chief appraiser, a course or training program
  sponsored or approved by the comptroller [Texas Department of
  Licensing and Regulation].
         SECTION 36.  Sections 5.102(d) and (e), Tax Code, are
  amended to read as follows:
         (d)  If the appraisal district fails to comply with the
  recommendations in the report and the comptroller finds that the
  board of directors of the appraisal district failed to take
  remedial action reasonably designed to ensure substantial
  compliance with each recommendation in the report before the first
  anniversary of the date the report was issued, the comptroller
  [shall notify the Board of Tax Professional Examiners, or a
  successor to the board, which] shall take action necessary to
  ensure that the recommendations in the report are implemented as
  soon as practicable.
         (e)  Before February 1 of the year following the year in
  which the comptroller [Board of Tax Professional Examiners, or its
  successor,] takes action under Subsection (d), [and with the
  assistance of the comptroller,] the comptroller [board] shall
  determine whether the recommendations in the most recent report
  have been substantially implemented. The comptroller [presiding
  officer of the board] shall notify the chief appraiser and the board
  of directors of the appraisal district in writing of the
  comptroller's [board's] determination.
         SECTION 37.  The following provisions of the Occupations
  Code are repealed:
               (1)  Sections 1151.002(7-a) and (7-c);
               (2)  Section 1151.1015;
               (3)  Sections 1151.1581(b) and (d); and
               (4)  Section 1151.202(d).
         SECTION 38.  Not later than March 1, 2018, the comptroller of
  public accounts shall adopt rules necessary to implement the
  changes in law made by this Act to Chapter 1151, Occupations Code.
         SECTION 39.  The changes in law made by this Act to Sections
  1151.0511 and 1151.0512, Occupations Code, regarding the
  eligibility requirements of members of the Texas Tax Professional
  Advisory Committee do not affect the entitlement of a member
  serving on the committee immediately before the effective date of
  this Act to continue to serve as a member of the committee for the
  remainder of the member's term. As the terms of committee members
  expire or as vacancies occur on the committee, the comptroller of
  public accounts shall appoint members to the committee as necessary
  to comply with Sections 1151.0511 and 1151.0512, Occupations Code,
  as amended by this Act.
         SECTION 40.  (a)  A rule or fee of the Texas Department of
  Licensing and Regulation under Chapter 1151, Occupations Code, in
  effect on the effective date of this Act is continued in effect as a
  rule or fee of the comptroller of public accounts until superseded
  by a rule of the comptroller. A registration or certification
  issued by the department under Chapter 1151, Occupations Code, in
  effect on the effective date of this Act is continued in effect as
  provided by the law in effect immediately before the effective date
  of this Act. A complaint, investigation, contested case, or other
  proceeding pending under Chapter 1151, Occupations Code, on the
  effective date of this Act is continued without change in status
  after the effective date of this Act. An action taken by the
  department is considered to be an action of the comptroller.
         (b)  A reference to the Texas Department of Licensing and
  Regulation in another law or an administrative rule applicable to
  Chapter 1151, Occupations Code, means the comptroller of public
  accounts.
         SECTION 41.  As soon as practicable after the effective date
  of this Act, the comptroller of public accounts and the Texas
  Department of Licensing and Regulation shall adopt a transition
  plan to provide for the transfer not later than January 1, 2018, of
  the following to the comptroller to the extent necessary for the
  exercise of the comptroller's powers and duties related to Chapter
  1151, Occupations Code, as amended by this Act:
               (1)  personnel;
               (2)  equipment, files, and records; and
               (3)  money appropriated for the fiscal biennium ending
  August 31, 2019.
         SECTION 42.  This Act takes effect September 1, 2017.