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  H.B. No. 1685
 
 
 
 
AN ACT
  relating to the continuation of the self-directed and
  semi-independent status of the Texas State Board of Public
  Accountancy, the Texas Board of Professional Engineers, and the
  Texas Board of Architectural Examiners.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The Self-Directed Semi-Independent Agency
  Project Act (Article 8930, Revised Statutes) is transferred to
  Subtitle E, Title 4, Government Code, redesignated as Chapter 472,
  Government Code, and amended to read as follows:
  CHAPTER 472 [Art. 8930].  SELF-DIRECTED SEMI-INDEPENDENT AGENCIES
  SUBCHAPTER A.  GENERAL PROVISIONS [AGENCY PROJECT ACT.
         [Sec.   1.     SHORT TITLE.   This Act shall be known as the
  Self-Directed Semi-Independent Agency Project Act.]
         Sec. 472.001.  APPLICABILITY OF CHAPTER. This chapter
  applies to [2.   AGENCY PARTICIPATION. The following agencies shall
  be part of the pilot project created by this Act]:
               (1)  the Texas State Board of Public Accountancy;
               (2)  the Texas Board of Professional Engineers; and
               (3)  the Texas Board of Architectural Examiners.
         Sec. 472.002 [3].  DEFINITION. In this chapter [Act],
  "[project] agency" means an agency listed in Section 472.001 [2 of
  this Act].
  SUBCHAPTER B. STATUS OF AGENCIES
         Sec. 472.051 [4].  SELF-DIRECTED AND SEMI-INDEPENDENT
  STATUS OF AGENCIES [PILOT PROJECT].  (a) Each [Notwithstanding any
  other provision of law, each project] agency is [shall become]
  self-directed and semi-independent as specified in this chapter
  [Act. To allow the pilot project the opportunity to test the
  effectiveness of operating under the provisions of this Act, any
  Act of the 78th Legislature that relates to an agency included in
  Section 2 of this Act and that is inconsistent with being
  self-directed and semi-independent may be implemented on
  authorization by the governing board of the agency].
         (b)  Each [project] agency is [shall continue to be] a state
  agency, as that term is defined in Section 2001.003(7)[, Government
  Code].
         (b-1)  Except as otherwise provided by this chapter, each
  agency is subject to a provision of law that applies to state
  agencies, including:
               (1)  state purchasing requirements under Subtitle D,
  Title 10;
               (2)  interagency transfer voucher requirements under
  Section 2155.327;
               (3)  travel requirements under Chapters 2171 and 2205,
  using amounts provided by the General Appropriations Act to guide
  travel reimbursement rates; and
               (4)  prompt payment requirements under Chapter 2251.
         (c)  The Sunset Advisory Commission shall examine each
  agency's performance as a self-directed and semi-independent
  agency and the agency's compliance with this chapter as part of the
  commission's periodic review of the agency under [This Act is
  subject to] Chapter 325[, Government Code] (Texas Sunset Act)[.  
  Unless continued in existence as provided by that chapter, this Act
  expires September 1, 2013].
         (d)  Each agency shall pay the cost incurred by the Sunset
  Advisory Commission in performing a review of the agency under the
  agency's enabling legislation.  The Sunset Advisory Commission
  shall determine the cost, and the agency shall pay the amount
  promptly on receipt of a statement from the Sunset Advisory
  Commission detailing the cost.
  SUBCHAPTER C.  POWERS AND DUTIES OF AGENCIES
         Sec. 472.101 [5].  GENERAL DUTIES OF ALL [PROJECT] AGENCIES.
  In addition to the duties enumerated in the enabling legislation
  specifically applicable to each [project] agency, each [project]
  agency shall have the duties prescribed by Sections 472.102 [6]
  through 472.105 [9 of this Act].
         Sec. 472.102 [6].  BUDGET. (a) An [A project] agency shall
  adopt a budget annually using generally accepted accounting
  principles. The budget shall be reviewed and approved only by the
  [project] agency's governing board notwithstanding any other
  provision of law, including the General Appropriations Act. No
  costs shall be incurred by the general revenue fund. An [A project]
  agency shall be responsible for all costs, both direct and
  indirect.
         (b)  An [A project] agency shall keep financial and
  statistical information as necessary to disclose completely and
  accurately the financial condition and operation of the [project]
  agency.
         (c)  The Texas State Board of Public Accountancy shall
  annually remit $703,344 to the general revenue fund, the Texas
  Board of Professional Engineers shall annually remit $373,900 to
  the general revenue fund, and the Texas Board of Architectural
  Examiners shall annually remit $510,000 to the general revenue
  fund.
         Sec. 472.103 [7].  AUDITS. Nothing in this chapter [Act]
  shall affect the duty of the state auditor [State Auditor] to audit
  an [a project] agency. The state auditor [State Auditor] shall
  enter into a contract and schedule with each [project] agency to
  conduct audits, including financial reports and performance
  audits. Costs incurred in performing such audits shall be
  reimbursed by the [project] agency.
         Sec. 472.104 [8].  REPORTING REQUIREMENTS. (a) An [A
  project] agency shall submit to the legislature and the governor by
  the first day of the regular session of the legislature a report
  describing all of the agency's activities in the previous biennium.
  The report shall include:
               (1)  an audit required by Section 472.103 [7 of this
  Act];
               (2)  a financial report of the previous fiscal year;
               (3)  a description of any changes in licensing fees;
               (4)  a report on the number of examination candidates,
  licensees, certificate holders, and enforcement activities and any
  changes in those figures; and
               (5)  a description of all new rules adopted or
  repealed.
         (b)  In addition to the reporting requirements of Subsection
  (a) [of this section], each [project] agency shall report annually,
  not later than November 1, to the governor, to the committee of each
  house of the legislature that has jurisdiction over appropriations,
  and to the Legislative Budget Board the following:
               (1)  the salary for all [project] agency personnel and
  the total amount of per diem expenses and travel expenses paid for
  all agency employees, including trend performance data for the
  preceding five fiscal years;
               (2)  the total amount of per diem expenses and travel
  expenses paid for each member of the governing body of each
  [project] agency, including trend performance data for the
  preceding five fiscal years;
               (3)  each [project] agency's operating plan covering a
  period of two fiscal years;
               (4)  each agency's operating [and] budget, including
  revenues and a breakdown of expenditures by program and
  administrative expenses, showing:
                     (A)  projected budget data for [covering] a period
  of two fiscal years [two-year period]; and
                     (B)  trend performance data for the preceding five
  fiscal years; and
               (5)  trend performance data for the preceding five
  fiscal years regarding:
                     (A)  the number of full-time equivalent positions
  at the agency;
                     (B)  the number of complaints received from the
  public and the number of complaints initiated by agency staff;
                     (C)  the number of complaints dismissed and the
  number of complaints resolved by enforcement action;
                     (D)  the number of enforcement actions by sanction
  type;
                     (E)  the number of enforcement cases closed
  through voluntary compliance;
                     (F)  the amount of administrative penalties
  assessed and the rate of collection of assessed administrative
  penalties;
                     (G)  the number of enforcement cases that allege a
  threat to public health, safety, or welfare or a violation of
  professional standards of care and the disposition of those cases;
                     (H)  the average time to resolve a complaint;
                     (I)  the number of license holders or regulated
  persons broken down by type of license and license status,
  including inactive status or retired status;
                     (J)  the fee charged to issue and renew each type
  of license, certificate, permit, or other similar authorization
  issued by the agency;
                     (K)  the average time to issue a license;
                     (L)  litigation costs, broken down by
  administrative hearings, judicial proceedings, and outside counsel
  costs; and
                     (M)  reserve fund balances [(4)     a detailed
  report of all revenue received and all expenses incurred by the
  project agency in the previous 12 months].
         Sec. 472.105 [9].  DISPOSITION OF FEES COLLECTED. If
  provided in an [a project] agency's enabling legislation, the
  [project] agency shall collect a professional fee of $200 from its
  license holders [licensees] annually, which shall be remitted to
  the state. If provided in an [a project] agency's enabling
  legislation, the [project] agency shall collect a scholarship fee
  of $10 annually from its license holders [licensees and shall remit
  it to the state].
         Sec. 472.106 [10].  GENERAL POWERS OF ALL [PROJECT]
  AGENCIES. In addition to the powers enumerated in each [project]
  agency's enabling legislation, each [project] agency shall have the
  powers described in Sections 472.107 [11] through 472.110 [14 of
  this Act].
         Sec. 472.107 [11].  ABILITY TO CONTRACT. To carry out and
  promote the objectives of this chapter, an [Act, a project] agency
  may enter into contracts and do all other acts incidental to those
  contracts that are necessary for the administration of its affairs
  and for the attainment of its purposes.  Any [; provided, however,
  that any] indebtedness, liability, or obligation of the [project]
  agency shall not:
               (1)  create a debt or other liability of the state or
  any other entity other than the [project] agency; or
               (2)  create any personal liability on the part of the
  members of the board of the [project] agency or its employees.
         Sec. 472.108 [12].  PROPERTY. An [A project] agency may
  acquire by lease, and maintain, use, and operate, any real,
  personal, or mixed property necessary to the exercise of the
  powers, rights, privileges, and functions of the agency.
         Sec. 472.109 [13].  SUITS. The office of the attorney
  general shall represent an [a project] agency in any litigation.
  The attorney general may assess and collect from the [project]
  agency reasonable attorney's fees associated with any litigation
  under this section.
         Sec. 472.110 [14].  FEES AND DISPOSITION OF FUNDS. (a)
  Subject to the limitations, if any, in the applicable enabling
  legislation, each [project] agency may set the amount of fees by
  statute or rule as necessary for the purpose of carrying out the
  functions of the [project] agency.
         (b)  All fees and funds collected by an [a project] agency,
  [during the pilot project and] any funds appropriated to the
  [project] agency, and any other funds belonging to or under the
  control of an agency shall be deposited in interest-bearing deposit
  accounts in the Texas Treasury Safekeeping Trust Company. The
  comptroller shall contract with the [project] agency for the
  maintenance of the deposit accounts under terms comparable to a
  contract between a commercial banking institution and its
  customers.  An agency may not hold funds in an account that is not
  under the control of the comptroller.
         (c)  An [A project] agency shall use the comptroller's
  uniform statewide accounting system under Chapter 2101 to make all
  payments, other than direct payments from an agency's account to
  the Texas Treasury Safekeeping Trust Company [may retain each
  fiscal year an amount of fines and other revenue the project agency
  receives during the fiscal year as a result of enforcement actions
  that is equal to 20 percent of the total amount expended by the
  project agency during the previous fiscal year, not to exceed $1
  million].
         (d)  An agency shall remit all administrative penalties
  collected by the agency to the comptroller for deposit in [At the
  end of each fiscal year 50 percent of the unexpended balance of the
  amount retained in Subsection (c) of this section shall be
  deposited to the credit of] the general revenue fund.
         Sec. 472.111 [15].  POST-PARTICIPATION LIABILITY.  (a) If a
  state agency no longer has status under this chapter [Act] as a
  self-directed semi-independent [project] agency [either because of
  the expiration of this Act or] for any [other] reason, the state 
  agency shall be liable for any expenses or debts incurred by the
  state agency during the time the state agency had status as a
  self-directed semi-independent agency [participated in the pilot
  project]. The state agency's liability under this section includes
  liability for any lease entered into by the state agency. The 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 a state agency no longer has status under this
  chapter [Act] as a self-directed semi-independent [project] agency
  [either because of the expiration of this Act or] for any [other]
  reason, ownership of any property or other asset acquired by the
  state agency during the time the state agency had status as a
  self-directed semi-independent agency [participated in the pilot
  project], including unexpended fees in a deposit account in the
  Texas Treasury Safekeeping Trust Company, shall be transferred to
  the state.
         Sec. 472.112 [16].  OPEN GOVERNMENT. Subject to the
  confidentiality provisions of an [a project] agency's enabling
  legislation:
               (1)  meetings of the [project] agency are subject to
  Chapter 551[, Government Code]; and
               (2)  records maintained by the [project] agency are
  subject to Chapter 552[, Government Code].
         Sec. 472.113 [17].  MEMBERSHIP IN EMPLOYEES [EMPLOYEE]
  RETIREMENT SYSTEM. Employees of the [project] agencies are members
  of the Employees Retirement System of Texas under Chapter 812,
  [Government Code,] and the agencies' [transition to] independent
  status shall have no effect on their membership.
         Sec. 472.114 [18].  GIFTS. (a) Notwithstanding other law,
  an [a project] agency 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)  An [A project] agency must:
               (1)  report each gift, grant, or donation that the
  agency receives as a separate item in the agency's detailed report
  under Section 472.104(b) [8(b) of this Act]; and
               (2)  include with the report a statement indicating the
  purpose for which each gift, grant, or donation was used.
         SECTION 2.  Section 901.658, Occupations Code, is amended to
  read as follows:
         Sec. 901.658.  FUNDING. The board may:
               (1)  use without appropriation, in accordance with
  [Article 8930, Revised Statutes,] this subchapter[,] and Section
  901.155, any money from the trust fund established under Section
  901.155; and
               (2)  accept gifts, grants, and donations of real or
  personal property from any entity, subject to limitations or
  conditions set by law, for the purposes of this subchapter.
         SECTION 3.  Section 1001.507, Occupations Code, is repealed.
         SECTION 4.  Section 472.104(b), Government Code, as
  redesignated and amended by this Act, applies only to a report
  originally due on or after the effective date of this Act.  A report
  originally due before the effective date of this Act is governed by
  the law in effect on the date the report was originally due, and the
  former law is continued in effect for that purpose.
         SECTION 5.  Not later than October 1, 2013, each agency, as
  that term is defined by Section 472.002, Government Code, as
  redesignated and amended by this Act, shall transfer any funds held
  in an account not under the control of the comptroller of public
  accounts to an account that is under the control of the comptroller
  of public accounts, as provided by Section 472.110(b), Government
  Code, as redesignated and amended by this Act.
         SECTION 6.  Sections 472.110(c) and (d), Government Code, as
  redesignated and amended by this Act, and the repeal by this Act of
  Section 1001.507, Occupations Code, apply only to an administrative
  penalty that is collected on or after the effective date of this
  Act.  An administrative penalty that is collected before the
  effective date of this Act is governed by the law in effect on the
  date the administrative penalty was collected, and the former law
  is continued in effect for that purpose.
         SECTION 7.  This Act takes effect September 1, 2013.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1685 was passed by the House on April
  23, 2013, by the following vote:  Yeas 133, Nays 9, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1685 was passed by the Senate on May
  9, 2013, by the following vote:  Yeas 30, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor