Texas 2011 - 82nd Regular

Texas House Bill HB2092 Latest Draft

Bill / House Committee Report Version Filed 02/01/2025

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                            82R24766 NC-F
 By: King of Taylor, Hopson H.B. No. 2092
 Substitute the following for H.B. No. 2092:
 By:  Naishtat C.S.H.B. No. 2092


 A BILL TO BE ENTITLED
 AN ACT
 relating to self-directed and semi-independent status of certain
 health care regulatory agencies; making an appropriation.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  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 a budget annually
 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)  Except as provided by Subsection (e), all fees and funds
 collected by the board and any funds appropriated to the board shall
 be deposited in interest-bearing deposit accounts in the Texas
 Treasury Safekeeping Trust Company. The comptroller shall contract
 with the board 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 board shall annually remit $5.75 million to the
 general revenue fund.
 (f)  Periodically, the executive director shall submit to
 the board, as directed by the board, a report of the receipts and
 expenditures of the board.
 (g)  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 $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. 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 legislature and the
 governor 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 year,
 including reports on financial condition and results of operations;
 (3)  a description of all changes in fees imposed by the
 board;
 (4)  a report on the number of examination candidates
 and license holders and the programs of study and enforcement
 activities of the board; 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 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 $50,000 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 $25,000. 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 in a deposit account in the Texas
 Treasury Safekeeping Trust Company, 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.
 SECTION 2.  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 3.  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 4.  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 5.  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.  BOARD
 SECTION 6.  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 a budget annually
 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)  Except as provided by Subsection (e), all fees and funds
 collected by the board and any funds appropriated to the board shall
 be deposited in interest-bearing deposit accounts in the Texas
 Treasury Safekeeping Trust Company. The comptroller shall contract
 with the board for the maintenance of the deposit accounts under
 terms comparable to a contract between a commercial banking
 institution and the institution's customers.
 (e)  Not later than August 31, 2012, the board shall remit
 $1.15 million to the general revenue fund, and not later than August
 31 of each subsequent fiscal year, the board shall remit $800,000 to
 the general revenue fund.
 (f)  Periodically, the executive director shall submit to
 the board, as directed by the board, a report of the receipts and
 expenditures of the board.
 (g)  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 legislature and the
 governor 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 year,
 including reports on financial condition and results of operations;
 (3)  a description of all changes in fees imposed by the
 board;
 (4)  a report on the number of examination candidates,
 license holders, and registrants and the enforcement activities of
 the board; 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 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 $55,000 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 $40,000. 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 in a deposit account in the Texas
 Treasury Safekeeping Trust Company, 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. Not later than
 August 31 of each fiscal year, the board shall remit a nonrefundable
 prorated assessment to the Health Professions Council in an amount
 not less than $81,848 for fiscal year 2012, $79,406 for fiscal year
 2013, and $79,000 for each subsequent fiscal year. The amount
 remitted shall be applied to the board's prorated assessment for
 the operation and maintenance of the shared regulatory database
 system.
 SECTION 7.  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 8.  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 9.  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 10.  Sections 301.165, 554.007(a), and 554.013,
 Occupations Code, are repealed.
 SECTION 11.  (a)  To provide a reasonable period for the
 Texas Board of Nursing and the Texas State Board of Pharmacy to
 establish the boards as self-directed and semi-independent under
 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, 2012,
 an amount equal to 50 percent of the amount of general revenue
 appropriated to the board for the state fiscal year ending August
 31, 2011; and
 (2)  for the state fiscal year ending August 31, 2013,
 an amount equal to 50 percent of the amount of general revenue
 appropriated to the board for the state fiscal year ending August
 31, 2011.
 (b)  Subject to Section 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, 2012, 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, 2013, 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 301.072(e)
 or 552.052(e), Occupations Code, as added by this Act.
 (c)  The transfer of the Texas Board of Nursing or the Texas
 State Board of Pharmacy to self-directed and semi-independent
 status under 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 Board of Nursing and the 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
 Board of Nursing or the Texas State Board of Pharmacy is transferred
 to each respective board. This Act does not affect any property
 owned by either board on or before the effective date of this Act.
 (f)  The Texas Board of Nursing shall pay rent to the state
 for the use and occupancy of 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.
 (g)  The Texas State Board of Pharmacy shall pay rent to the
 state for the use and occupancy of 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.
 (h)  If a conflict exists between this Act and another Act of
 the 82nd Legislature, Regular Session, 2011, that relates to the
 self-directed and semi-independent status of the Texas Board of
 Nursing or the Texas State Board of Pharmacy, this Act controls
 without regard to the relative dates of enactment.
 SECTION 12.  This Act takes effect September 1, 2011.