82R4725 NC-F By: Geren H.B. No. 1680 A BILL TO BE ENTITLED AN ACT relating to self-directed and semi-independent status of the Texas Real Estate Commission; making an appropriation. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 1101, Occupations Code, is amended by adding Subchapter B-1 to read as follows: SUBCHAPTER B-1. SELF-DIRECTED AND SEMI-INDEPENDENT STATUS OF COMMISSION Sec. 1101.081. SELF-DIRECTED AND SEMI-INDEPENDENT STATUS. Notwithstanding any other provision of law, the commission is self-directed and semi-independent as specified by this subchapter. Any Act of the 82nd Legislature that relates to the commission and that is inconsistent with the commission being self-directed and semi-independent may be implemented by the administrator of the commission only on authorization by the commission. Sec. 1101.082. BUDGET, REVENUES, AND EXPENSES. (a) Notwithstanding any other provision of law, including the General Appropriations Act, the commission shall adopt a budget annually using generally accepted accounting principles. (b) The commission shall be responsible for all direct and indirect costs of the commission's existence and operation. The commission may not directly or indirectly cause the general revenue fund to incur any cost. (c) Notwithstanding any other provision of this chapter, the commission 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 commission and funding the budget adopted and approved under Subsection (a). (d) All fees and funds collected by the commission and any funds appropriated to the commission shall be deposited in interest-bearing deposit accounts in the Texas Treasury Safekeeping Trust Company. The comptroller shall contract with the commission for the maintenance of the deposit accounts under terms comparable to a contract between a commercial banking institution and the institution's customers. (e) The fiscal year for the commission begins on September 1 and ends on August 31. Sec. 1101.083. AUDITS. This subchapter does not affect the duty of the state auditor to audit the commission. The state auditor shall enter into a contract and schedule with the commission to conduct audits. The commission shall reimburse the state auditor for all costs incurred in performing the audits and shall provide to the governor a copy of any audit performed. Sec. 1101.084. RECORDS; REPORTING REQUIREMENTS. (a) The commission shall keep financial and statistical information as necessary to disclose completely and accurately the financial condition and results of operations of the commission. (b) Before the beginning of each regular session of the legislature, the commission shall submit to the legislature and the governor a report describing all of the agency's activities in the previous biennium. The report must include: (1) an audit as required by Section 1101.083; (2) a financial report of the previous fiscal year, including reports on the financial condition and results of operations; (3) a description of all changes in fees imposed on regulated persons; (4) a report on changes in the regulatory jurisdiction of the commission; and (5) a list of all new rules adopted or repealed. (c) In addition to the reporting requirements of Subsection (b), not later than November 1 of each year, the commission 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 commission personnel and the total amount of per diem expenses and travel expenses paid for all commission employees; (2) the total amount of per diem expenses and travel expenses paid for each member of the commission; (3) the commission's operating plan and annual budget; and (4) a detailed report of all revenue received and all expenses incurred by the commission in the previous 12 months. Sec. 1101.085. ABILITY TO CONTRACT. (a) To carry out and promote the objectives of this chapter, the commission may enter into contracts and do all other acts incidental to those contracts that are necessary for the administration of the commission's affairs and for the attainment of the commission's purposes, except as limited by Subsection (b). (b) Any indebtedness, liability, or obligation of the commission incurred under this section may not: (1) create a debt or other liability of this state or another entity other than the commission; or (2) create any personal liability on the part of the members or employees of the commission. Sec. 1101.086. PROPERTY. The commission 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 commission; (2) sell or otherwise dispose of any real, personal, or mixed property, or any interest in property, that the commission determines is not necessary or convenient to the exercise of the commission'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 commission; and (4) borrow money, as may be authorized from time to time by an affirmative vote of a two-thirds majority of the commission, for a period not to exceed five years if necessary or convenient to the exercise of the commission's powers, rights, privileges, or functions. Sec. 1101.087. SUITS. The office of the attorney general shall represent the commission in any litigation. The attorney general may assess and collect from the commission reasonable attorney's fees associated with any litigation under this section. Sec. 1101.088. POST-PARTICIPATION LIABILITY. (a) If the commission no longer has status under this subchapter as a self-directed semi-independent agency for any reason, the commission shall be liable for any expenses or debts incurred by the commission during the time the commission was a self-directed semi-independent agency. The commission's liability under this section includes liability for any lease entered into by the commission. 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 commission 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 commission during the time the commission was a self-directed semi-independent agency, including unexpended fees in a deposit account in the Texas Treasury Safekeeping Trust Company, shall be transferred to this state. Sec. 1101.089. DUE PROCESS; OPEN GOVERNMENT. The commission 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. 1101.090. MEMBERSHIP IN EMPLOYEES RETIREMENT SYSTEM. Employees of the commission are members of the Employees Retirement System of Texas under Chapter 812, Government Code, and the commission's transition to independent status as provided by this chapter has no effect on their membership or any benefits under that system. SECTION 2. Section 1101.059(c), Occupations Code, is amended to read as follows: (c) A person appointed to the commission 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 3. Section 1101.101(d), Occupations Code, is amended to read as follows: (d) The commission shall determine the salaries of the administrator, officers, and employees of the commission. [The amounts of the salaries may not exceed the amounts specified by the General Appropriations Act.] SECTION 4. To provide a reasonable period for the Texas Real Estate Commission to establish itself as a self-directed and semi-independent agency under Subchapter B-1, Chapter 1101, Occupations Code, as added by this Act, for the two-year period following the effective date of this Act, the commission is appropriated out of the general revenue fund an amount equal to 50 percent of the amount of general revenue appropriated to the commission for the state fiscal year ending August 31, 2011. Subject to Section 1101.082, Occupations Code, as added by this Act, this appropriation may be spent as the commission directs and shall be repaid not later than August 31, 2016, to the general revenue fund by the commission as funds become available. SECTION 5. The transfer of the Texas Real Estate Commission to self-directed and semi-independent status under Subchapter B-1, Chapter 1101, Occupations Code, as added by this Act, and the expiration of self-directed and semi-independent status may not act to cancel, suspend, or prevent: (1) any debt owed to or by the commission; (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 commission in the administration or enforcement of the commission's duties. SECTION 6. The Texas Real Estate Commission shall continue to have and exercise the powers and duties allocated to the commission in the commission's enabling legislation, except as specifically amended by this Act. SECTION 7. This Act takes effect September 1, 2011.