Texas 2015 - 84th Regular

Texas House Bill HB2024 Compare Versions

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1	1	84R4532 CJC-D
2	2	By: Gonzales H.B. No. 2024
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the self-directed and semi-independent status of
8	8	certain agencies and to the requirements applicable to, and the
9	9	oversight of, those agencies.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Sections 472.001 and 472.002, Government Code,
12	12	are amended to read as follows:
13	13	Sec. 472.001. APPLICABILITY OF CHAPTER. This chapter
14	14	applies to:
15	15	(1) the Texas State Board of Public Accountancy;
16	16	(2) the Texas Board of Professional Engineers; [and]
17	17	(3) the Texas Board of Architectural Examiners;
18	18	(4) the Texas Real Estate Commission;
19	19	(5) the Texas Appraiser Licensing and Certification
20	20	Board;
21	21	(6) the Texas Department of Banking;
22	22	(7) the Department of Savings and Mortgage Lending;
23	23	(8) the Office of Consumer Credit Commissioner; and
24	24	(9) the Credit Union Department.
25	25	Sec. 472.002. DEFINITIONS [DEFINITION]. In this chapter:
26	26	(1) "Agency" [, "agency"] means an agency listed in
27	27	Section 472.001.
28	28	(2) "Board" means the Legislative Budget Board.
29	29	(3) "Financial regulatory agency" means an agency
30	30	described by Sections 472.001(6)-(9).
31	31	SECTION 2. Subchapter A, Chapter 472, Government Code, is
32	32	amended by adding Sections 472.003, 472.004, 472.005, and 472.006
33	33	to read as follows:
34	34	Sec. 472.003. STATUS OF CERTAIN AGENCIES. This chapter
35	35	does not affect the Texas Appraiser Licensing and Certification
36	36	Board's status as an independent subdivision of the Texas Real
37	37	Estate Commission as provided by Section 1103.051, Occupations
38	38	Code.
39	39	Sec. 472.004. ROLE OF BOARD; RECOVERY OF COSTS. (a) The
40	40	board has responsibility under this chapter for developing and
41	41	administering the application process, monitoring agencies, and
42	42	performing other duties provided under this chapter.
43	43	(b) The board may recover from an agency the costs
44	44	associated with administering the application process for the
45	45	agency and the board's monitoring of the agency.
46	46	Sec. 472.005. APPLICATION FOR SELF-DIRECTED AND
47	47	SEMI-INDEPENDENT AGENCY STATUS; AUDIT REQUIRED. (a) Before a
48	48	state agency may be granted self-directed and semi-independent
49	49	status, the agency must:
50	50	(1) submit an application to the board; and
51	51	(2) undergo a financial audit and an effectiveness
52	52	audit as required under Subsection (e).
53	53	(b) A state agency may not submit the application required
54	54	under Subsection (a) until the agency's governing body:
55	55	(1) provides notice and holds a public hearing on the
56	56	application; and
57	57	(2) approves, by majority vote, the submission of the
58	58	application.
59	59	(c) The application must be submitted to the board as part
60	60	of the agency's legislative appropriations request.
61	61	(d) The application shall be in the form prescribed by the
62	62	board, which must require the agency applying for self-directed and
63	63	semi-independent status to:
64	64	(1) state the reasons for which the agency is seeking
65	65	self-directed and semi-independent status and address any
66	66	potential problems that may result from granting that status; and
67	67	(2) include, as relevant to the agency's application:
68	68	(A) information demonstrating the agency's
69	69	history of efficient operation and continuing ability to operate
70	70	efficiently and in a manner that protects the public interest;
71	71	(B) documentation of adequate budgetary
72	72	processes and controls; and
73	73	(C) an analysis of the fiscal effect on state
74	74	revenue and other state agencies demonstrating that the agency's
75	75	status as self-directed and semi-independent would be revenue
76	76	neutral.
77	77	(e) A state agency must undergo a financial audit and an
78	78	effectiveness audit by the state auditor during the four-year
79	79	period preceding the date the agency submits an application under
80	80	Subsection (a). The state auditor shall conduct the financial
81	81	audit and effectiveness audit and make the findings of the
82	82	completed audits available to the board.
83	83	(f) The board may require an agency to submit additional
84	84	information necessary to evaluate the agency's ability to operate
85	85	effectively as a self-directed and semi-independent agency.
86	86	Sec. 472.006. REVIEW OF APPLICATION AND RECOMMENDATION.
87	87	(a) The board's staff shall promptly review an application
88	88	submitted under Section 472.005. The staff review shall determine
89	89	whether the agency's application is sufficient and whether the
90	90	agency's application should be granted or denied.
91	91	(b) The staff shall submit to the committee of each house of
92	92	the legislature that has jurisdiction over appropriations the
93	93	staff's recommendation as to whether the agency's application
94	94	should be granted or denied. The board may recommend that
95	95	legislation be introduced to grant self-directed and
96	96	semi-independent status to the agency.
97	97	SECTION 3. Section 472.051(c), Government Code, is amended
98	98	to read as follows:
99	99	(c) The Sunset Advisory Commission shall examine each
100	100	agency's status and performance as a self-directed and
101	101	semi-independent agency and the agency's compliance with this
102	102	chapter as part of the commission's periodic review of the agency
103	103	under Chapter 325 (Texas Sunset Act).
104	104	SECTION 4. Subchapter B, Chapter 472, Government Code, is
105	105	amended by adding Sections 472.052 and 472.053 to read as follows:
106	106	Sec. 472.052. OVERSIGHT OF SELF-DIRECTED AND
107	107	SEMI-INDEPENDENT AGENCIES. (a) The board shall review each
108	108	agency's annual report submitted under Section 472.104(b) and any
109	109	additional information received from the agency to determine the
110	110	agency's compliance with this chapter.
111	111	(b) The board may require an agency to submit additional
112	112	information necessary to determine the agency's compliance with
113	113	this chapter. An agency shall comply with the board's request for
114	114	additional information. The board may prescribe the form in which
115	115	the agency must submit the additional information.
116	116	(c) The board's staff may make a recommendation to the
117	117	committee of each house of the legislature that has jurisdiction
118	118	over appropriations and to the legislature based on the review
119	119	conducted under this section. The board may recommend that
120	120	legislation be introduced to revoke an agency's self-directed and
121	121	semi-independent status or otherwise address issues raised by the
122	122	board.
123	123	Sec. 472.053. REVOCATION OF SELF-DIRECTED AND
124	124	SEMI-INDEPENDENT STATUS. (a) The board may develop criteria for
125	125	determining when a recommendation for the revocation of an agency's
126	126	self-directed and semi-independent status is appropriate. The
127	127	board may recommend the revocation of an agency's self-directed and
128	128	semi-independent status to the legislature as provided by Section
129	129	472.052(c).
130	130	(b) The Sunset Advisory Commission may recommend revocation
131	131	of an agency's self-directed and semi-independent status to the
132	132	legislature as part of the commission's periodic review of the
133	133	agency under Chapter 325 (Texas Sunset Act).
134	134	(c) The legislature may consider legislation to revoke an
135	135	agency's self-directed and semi-independent status regardless of
136	136	whether the revocation is recommended by the board's staff or the
137	137	Sunset Advisory Commission.
138	138	(d) The board shall assist an agency in transitioning from
139	139	self-directed and semi-independent status if the agency's status is
140	140	revoked. The board may consider issues relating to appropriations
141	141	and financial planning for the agency, and an evaluation of the
142	142	status and disposition of agency contracts, facilities,
143	143	properties, and leases when assisting an agency under this
144	144	subsection.
145	145	SECTION 5. Section 472.102, Government Code, is amended by
146	146	adding Subsection (d) to read as follows:
147	147	(d) Not later than August 31 of each state fiscal year, the
148	148	Texas Real Estate Commission and the Texas Appraiser Licensing and
149	149	Certification Board together shall remit $750,000 to the general
150	150	revenue fund.
151	151	SECTION 6. Section 472.103, Government Code, is amended to
152	152	read as follows:
153	153	Sec. 472.103. AUDITS. Nothing in this chapter shall affect
154	154	the duty of the state auditor to audit an agency. The state auditor
155	155	shall enter into a contract and schedule with each agency to conduct
156	156	audits, including financial audits [reports] and effectiveness
157	157	[performance] audits. The schedule must require an agency to
158	158	undergo a financial audit and an effectiveness audit at least once
159	159	every six years. The state auditor may conduct a risk-based audit
160	160	of an agency at any time. Costs incurred in performing such audits
161	161	shall be reimbursed by the agency.
162	162	SECTION 7. Section 472.104, Government Code, is amended by
163	163	amending Subsection (b) and adding Subsection (c) to read as
164	164	follows:
165	165	(b) In addition to the reporting requirements of Subsection
166	166	(a), each agency shall, in the form prescribed by the board, report
167	167	annually, not later than November 20 [1], to the governor, to the
168	168	committee of each house of the legislature that has jurisdiction
169	169	over appropriations, and to the board [Legislative Budget Board]
170	170	the following:
171	171	(1) the salary for all agency personnel and the total
172	172	amount of per diem expenses and travel expenses paid for all agency
173	173	employees, including trend performance data for the preceding five
174	174	fiscal years;
175	175	(2) the total amount of per diem expenses and travel
176	176	expenses paid for each member of the governing body of each agency,
177	177	including trend performance data for the preceding five fiscal
178	178	years;
179	179	(3) each agency's operating plan covering a period of
180	180	two fiscal years;
181	181	(4) each agency's operating budget, including revenues
182	182	from all sources, an accounting of all expenditures, and a
183	183	breakdown of expenditures by program and administrative expenses,
184	184	showing:
185	185	(A) projected budget data for a period of two
186	186	fiscal years; and
187	187	(B) trend performance data for the preceding five
188	188	fiscal years; [and]
189	189	(5) the purchase or sale of any real property during
190	190	the year;
191	191	(6) any lease and maintenance costs associated with
192	192	real property owned or leased by the agency;
193	193	(7) for an agency other than a financial regulatory
194	194	agency, trend performance data for the preceding five fiscal years
195	195	regarding:
196	196	(A) the number of full-time equivalent positions
197	197	at the agency;
198	198	(B) the number of complaints received from the
199	199	public and the number of complaints initiated by agency staff;
200	200	(C) the number of complaints dismissed and the
201	201	number of complaints resolved by enforcement action;
202	202	(D) the number of enforcement actions by sanction
203	203	type;
204	204	(E) the number of enforcement cases closed
205	205	through voluntary compliance;
206	206	(F) the amount of administrative penalties
207	207	assessed and the rate of collection of assessed administrative
208	208	penalties;
209	209	(G) the number of enforcement cases that allege a
210	210	threat to public health, safety, or welfare or a violation of
211	211	professional standards of care and the disposition of those cases;
212	212	(H) the average time to resolve a complaint;
213	213	(I) the number of license holders or regulated
214	214	persons broken down by type of license and license status,
215	215	including inactive status or retired status;
216	216	(J) the fee charged to issue and renew each type
217	217	of license, certificate, permit, or other similar authorization
218	218	issued by the agency;
219	219	(K) the average time to issue a license;
220	220	(L) litigation costs, broken down by
221	221	administrative hearings, judicial proceedings, and outside counsel
222	222	costs; and
223	223	(M) reserve fund balances; and
224	224	(8) for a financial regulatory agency, trend
225	225	performance data for the preceding five fiscal years regarding:
226	226	(A) the number of full-time equivalent positions
227	227	at the agency;
228	228	(B) the number of complaints received from the
229	229	public and the number of complaints initiated by agency staff;
230	230	(C) the number of complaints dismissed and the
231	231	number of complaints resolved by enforcement action;
232	232	(D) the number of enforcement actions by sanction
233	233	type;
234	234	(E) the number of enforcement cases closed
235	235	through voluntary compliance;
236	236	(F) the amount of administrative penalties
237	237	assessed and the rate of collection of assessed administrative
238	238	penalties;
239	239	(G) the number of entities regulated by the
240	240	agency;
241	241	(H) the fee charged to issue and renew each type
242	242	of license, certificate, permit, or other similar authorization
243	243	issued by the agency;
244	244	(I) litigation costs, broken down by
245	245	administrative hearings, judicial proceedings, and outside counsel
246	246	costs;
247	247	(J) reserve fund balances; and
248	248	(K) the key performance measures approved by the
249	249	governing board of the agency during the fiscal year for which the
250	250	report is due.
251	251	(c) The board may require an agency to submit, at any time,
252	252	information to the board demonstrating the agency's:
253	253	(1) ability to perform the activities the agency is
254	254	required by law to perform;
255	255	(2) financial soundness, including the agency's
256	256	ability to raise sufficient revenue, maintain sufficient operating
257	257	reserves, and meet all of the agency's financial obligations;
258	258	(3) compliance with the provisions of this chapter;
259	259	and
260	260	(4) satisfactory audit history, including a summary of
261	261	any corrective action taken by the agency in response to an audit.
262	262	SECTION 8. Section 472.105, Government Code, is amended to
263	263	read as follows:
264	264	Sec. 472.105. DISPOSITION OF CERTAIN FEES COLLECTED. (a)
265	265	Subject to Subsection (b), if [If] provided in an agency's enabling
266	266	legislation, the agency shall collect annually from its license
267	267	holders:
268	268	(1) a professional fee of $200 [from its license
269	269	holders annually], which shall be remitted to the state; and
270	270	(2) [. If provided in an agency's enabling
271	271	legislation, the agency shall collect] a scholarship fee of $10
272	272	[annually from its license holders].
273	273	(b) A fee increase described by Section 1101.153,
274	274	Occupations Code, shall be deposited as provided by Subsection (b)
275	275	of that section.
276	276	SECTION 9. Section 472.108, Government Code, is amended to
277	277	read as follows:
278	278	Sec. 472.108. PROPERTY. (a) An agency other than a
279	279	financial regulatory agency may acquire by lease, own and maintain,
280	280	use, and operate, any real, personal, or mixed property necessary
281	281	to the exercise of the powers, rights, privileges, and functions of
282	282	the agency.
283	283	(b) A financial regulatory agency may:
284	284	(1) acquire by purchase, lease, gift, or any other
285	285	manner provided by law and maintain, use, and operate any real,
286	286	personal, or mixed property, or any interest in property, necessary
287	287	or convenient to the exercise of the powers, rights, privileges, or
288	288	functions of the financial regulatory agency;
289	289	(2) sell or otherwise dispose of any real, personal,
290	290	or mixed property, or any interest in property, that the financial
291	291	regulatory agency determines is not necessary or convenient to the
292	292	exercise of the agency's powers, rights, privileges, or functions;
293	293	(3) construct, extend, improve, maintain, and
294	294	reconstruct, or cause to construct, extend, improve, maintain, and
295	295	reconstruct, and use and operate all facilities necessary or
296	296	convenient to the exercise of the powers, rights, privileges, or
297	297	functions of the financial regulatory agency; and
298	298	(4) borrow money, as may be authorized from time to
299	299	time by an affirmative vote of a two-thirds majority of the
300	300	policy-making body of the financial regulatory agency, for a period
301	301	not to exceed five years if necessary or convenient to the exercise
302	302	of the financial regulatory agency's powers, rights, privileges, or
303	303	functions.
304	304	SECTION 10. Sections 472.110(b) and (d), Government Code,
305	305	are amended to read as follows:
306	306	(b) Except as provided by Section 472.105, all [All] fees
307	307	and funds collected by an agency, any funds appropriated to the
308	308	agency, and any other funds belonging to or under the control of an
309	309	agency shall be deposited in interest-bearing deposit accounts in
310	310	the Texas Treasury Safekeeping Trust Company. The comptroller
311	311	shall contract with the agency for the maintenance of the deposit
312	312	accounts under terms comparable to a contract between a commercial
313	313	banking institution and its customers. An agency may not hold funds
314	314	in an account that is not under the control of the comptroller.
315	315	(d) An agency other than a financial regulatory agency shall
316	316	remit all administrative penalties collected by the agency to the
317	317	comptroller for deposit in the general revenue fund.
318	318	SECTION 11. The following are repealed:
319	319	(1) Chapter 16, Finance Code; and
320	320	(2) Chapter 1105, Occupations Code.
321	321	SECTION 12. Section 472.104, Government Code, as amended by
322	322	this Act, applies only to a report originally due on or after the
323	323	effective date of this Act. A report originally due before the
324	324	effective date of this Act is governed by the law in effect on the
325	325	date the report was originally due, and the former law is continued
326	326	in effect for that purpose.
327	327	SECTION 13. The repeal by this Act of Section 16.006,
328	328	Finance Code, and Section 1105.006, Occupations Code, does not
329	329	affect the validity of a contract entered into under those sections
330	330	before the effective date of this Act.
331	331	SECTION 14. This Act takes effect September 1, 2015.