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.