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.