Texas 2015 - 84th Regular

Texas Senate Bill SB217 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		By: Hinojosa, et al. S.B. No. 217
2		-	(In the Senate - Filed March 5, 2015; March 10, 2015, read
3		-	first time and referred to Committee on Business and Commerce;
4		-	March 30, 2015, rereferred to Committee on Finance; April 13, 2015,
5		-	reported adversely, with favorable Committee Substitute by the
6		-	following vote: Yeas 14, Nays 0; April 13, 2015, sent to printer.)
7		-	Click here to see the committee vote
8		-	COMMITTEE SUBSTITUTE FOR S.B. No. 217 By: Hinojosa
9	2
10	3
11	4		A BILL TO BE ENTITLED
12	5		AN ACT
13	6		relating to the self-directed and semi-independent status of
14	7		certain agencies and to the requirements applicable to, and the
15	8		oversight of, those agencies.
16	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
17	10		SECTION 1. Sections 472.001 and 472.002, Government Code,
18	11		are amended to read as follows:
19	12		Sec. 472.001. APPLICABILITY OF CHAPTER. This chapter
20	13		applies to:
21	14		(1) the Texas State Board of Public Accountancy;
22	15		(2) the Texas Board of Professional Engineers; [and]
23	16		(3) the Texas Board of Architectural Examiners;
24	17		(4) the Texas Real Estate Commission;
25	18		(5) the Texas Appraiser Licensing and Certification
26	19		Board;
27	20		(6) the Texas Department of Banking;
28	21		(7) the Department of Savings and Mortgage Lending;
29	22		(8) the Office of Consumer Credit Commissioner; and
30	23		(9) the Credit Union Department.
31	24		Sec. 472.002. DEFINITIONS [DEFINITION]. In this chapter:
32	25		(1) "Agency"[, "agency"] means an agency listed in
33	26		Section 472.001.
34	27		(2) "Board" means the Legislative Budget Board.
35	28		(3) "Financial regulatory agency" means an agency
36	29		described by Sections 472.001(6)-(9).
37	30		SECTION 2. Subchapter A, Chapter 472, Government Code, is
38	31		amended by adding Sections 472.003, 472.004, 472.005, and 472.006
39	32		to read as follows:
40	33		Sec. 472.003. STATUS AND OVERSIGHT OF CERTAIN AGENCIES.
41	34		This chapter does not affect:
42	35		(1) the Texas Appraiser Licensing and Certification
43	36		Board's status as an independent subdivision of the Texas Real
44	37		Estate Commission as provided by Section 1103.051, Occupations
45	38		Code; or
46	39		(2) the oversight of a financial regulatory agency by
47	40		that agency's governing body or the agency's accountability to, and
48	41		relationship with, that governing body.
49	42		Sec. 472.004. ROLE OF BOARD; RECOVERY OF COSTS. (a) The
50	43		board has responsibility under this chapter for developing and
51	44		administering the application process, monitoring agencies, and
52	45		performing other duties provided under this chapter.
53	46		(b) The board may recover from an agency the costs
54	47		associated with administering the application process for the
55	48		agency and the board's monitoring of the agency.
56	49		Sec. 472.005. APPLICATION FOR SELF-DIRECTED AND
57	50		SEMI-INDEPENDENT AGENCY STATUS; AUDIT REQUIRED. (a) Before a
58	51		state agency may be granted self-directed and semi-independent
59	52		status, the agency must:
60	53		(1) submit an application to the board; and
61	54		(2) undergo a financial audit and an effectiveness
62	55		audit as required under Subsection (e).
63	56		(b) A state agency may not submit the application required
64	57		under Subsection (a) until the agency's governing body:
65	58		(1) provides notice and holds a public hearing on the
66	59		application; and
67	60		(2) approves, by majority vote, the submission of the
68	61		application.
69	62		(c) The application must be submitted to the board as part
70	63		of the agency's legislative appropriations request.
71	64		(d) The application shall be in the form prescribed by the
72	65		board, which must require the agency applying for self-directed and
73	66		semi-independent status to:
74	67		(1) state the reasons for which the agency is seeking
75	68		self-directed and semi-independent status and address any
76	69		potential problems that may result from granting that status; and
77	70		(2) include, as relevant to the agency's application:
78	71		(A) information demonstrating the agency's
79	72		history of efficient operation and continuing ability to operate
80	73		efficiently and in a manner that protects the public interest;
81	74		(B) documentation of adequate budgetary
82	75		processes and controls; and
83	76		(C) an analysis of the fiscal effect on state
84	77		revenue and other state agencies demonstrating that the agency's
85	78		status as self-directed and semi-independent would be revenue
86	79		neutral.
87	80		(e) A state agency must undergo a financial audit and an
88	81		effectiveness audit by the state auditor during the four-year
89	82		period preceding the date the agency submits an application under
90	83		Subsection (a). The state auditor shall conduct the financial
91	84		audit and effectiveness audit and make the findings of the
92	85		completed audits available to the board.
93	86		(f) The board may require an agency to submit additional
94	87		information necessary to evaluate the agency's ability to operate
95	88		effectively as a self-directed and semi-independent agency.
96	89		Sec. 472.006. REVIEW OF APPLICATION AND RECOMMENDATION.
97	90		(a) The board's staff shall promptly review an application
98	91		submitted under Section 472.005. The staff review shall determine
99	92		whether the agency's application is sufficient and whether the
100	93		agency's application should be granted or denied.
101	94		(b) The board's staff shall submit the staff's
102	95		recommendation as to whether the agency's application should be
103	96		granted or denied to the board. The board may recommend to the
104	97		committee of each house of the legislature that has jurisdiction
105	98		over appropriations that legislation be introduced to grant
106	99		self-directed and semi-independent status to the agency.
107	100		SECTION 3. Section 472.051(c), Government Code, is amended
108	101		to read as follows:
109	102		(c) The Sunset Advisory Commission shall examine each
110	103		agency's status and performance as a self-directed and
111	104		semi-independent agency and the agency's compliance with this
112	105		chapter as part of the commission's periodic review of the agency
113	106		under Chapter 325 (Texas Sunset Act).
114	107		SECTION 4. Subchapter B, Chapter 472, Government Code, is
115	108		amended by adding Sections 472.052 and 472.053 to read as follows:
116	109		Sec. 472.052. REVIEW OF SELF-DIRECTED AND SEMI-INDEPENDENT
117	110		AGENCIES. (a) The board's staff and the board shall review each
118	111		agency's annual report submitted under Section 472.104(b) and any
119	112		additional information requested by the board and received from the
120	113		agency to determine the agency's compliance with this chapter.
121	114		(b) The board's staff may make a recommendation to the
122	115		committee of each house of the legislature that has jurisdiction
123	116		over appropriations and to the legislature to address issues
124	117		identified during a review conducted under this section, except
125	118		that the staff may not recommend the revocation of an agency's
126	119		self-directed and semi-independent status.
127	120		(c) The board may recommend that legislation be introduced
128	121		to revoke an agency's self-directed and semi-independent status or
129	122		otherwise address issues raised by the board. A recommendation to
130	123		revoke an agency's self-directed and semi-independent status may be
131	124		based on the agency's conduct, including:
132	125		(1) material abuse by the agency of its self-directed
133	126		and semi-independent status; or
134	127		(2) fiscal mismanagement.
135	128		Sec. 472.053. REVOCATION OF SELF-DIRECTED AND
136	129		SEMI-INDEPENDENT STATUS. (a) The board may develop criteria for
137	130		determining when a recommendation for the revocation of an agency's
138	131		self-directed and semi-independent status is appropriate. The
139	132		board may recommend the revocation of an agency's self-directed and
140	133		semi-independent status to the legislature as provided by Section
141	134		472.052(c). If the board recommends revocation of an agency's
142	135		self-directed and semi-independent status, the agency shall have
143	136		the opportunity to respond in writing to that recommendation.
144	137		(b) The Sunset Advisory Commission may recommend revocation
145	138		of an agency's self-directed and semi-independent status to the
146	139		legislature as part of the commission's periodic review of the
147	140		agency under Chapter 325 (Texas Sunset Act).
148	141		(c) The legislature may consider legislation to revoke an
149	142		agency's self-directed and semi-independent status regardless of
150	143		whether the revocation is recommended by the board or the Sunset
151	144		Advisory Commission.
152	145		(d) The board shall assist an agency in transitioning from
153	146		self-directed and semi-independent status if the agency's status is
154	147		revoked. The board may consider issues relating to appropriations
155	148		and financial planning for the agency, and an evaluation of the
156	149		status and disposition of agency contracts, facilities,
157	150		properties, and leases when assisting an agency under this
158	151		subsection.
159	152		SECTION 5. Section 472.102, Government Code, is amended by
160	153		adding Subsection (d) to read as follows:
161	154		(d) Not later than August 31 of each state fiscal year, the
162	155		Texas Real Estate Commission and the Texas Appraiser Licensing and
163	156		Certification Board together shall remit $750,000 to the general
164	157		revenue fund.
165	158		SECTION 6. Section 472.103, Government Code, is amended to
166	159		read as follows:
167	160		Sec. 472.103. AUDITS. Nothing in this chapter shall affect
168	161		the duty of the state auditor to audit an agency. The state auditor
169	162		shall enter into a contract and schedule with each agency to conduct
170	163		audits, including financial audits [reports] and effectiveness
171	164		[performance] audits. The schedule must require an agency to
172	165		undergo a financial audit and an effectiveness audit at least once
173	166		every six years, unless the state auditor determines that the
174	167		auditor may rely on an independent audit of the agency conducted
175	168		during the same period. The state auditor may conduct a risk-based
176	169		audit of an agency at any time. Costs incurred in performing such
177	170		audits shall be reimbursed by the agency.
178	171		SECTION 7. Section 472.104, Government Code, is amended by
179	172		amending Subsection (b) and adding Subsection (c) to read as
180	173		follows:
181	174		(b) In addition to the reporting requirements of Subsection
182	175		(a), each agency shall, in the form prescribed by the board, report
183	176		annually, not later than November 20 [1], to the governor, to the
184	177		committee of each house of the legislature that has jurisdiction
185	178		over appropriations, and to the board [Legislative Budget Board]
186	179		the following:
187	180		(1) the salary for all agency personnel and the total
188	181		amount of per diem expenses and travel expenses paid for all agency
189	182		employees, including trend performance data for the preceding five
190	183		fiscal years;
191	184		(2) the total amount of per diem expenses and travel
192	185		expenses paid for each member of the governing body of each agency,
193	186		including trend performance data for the preceding five fiscal
194	187		years;
195	188		(3) each agency's operating plan covering a period of
196	189		two fiscal years;
197	190		(4) each agency's operating budget, including revenues
198	191		from all sources, an accounting of all expenditures, and a
199	192		breakdown of expenditures by program and administrative expenses,
200	193		showing:
201	194		(A) projected budget data for a period of two
202	195		fiscal years; and
203	196		(B) trend performance data for the preceding five
204	197		fiscal years; [and]
205	198		(5) the purchase or sale of any real property during
206	199		the year;
207	200		(6) any lease and maintenance costs associated with
208	201		real property owned or leased by the agency;
209	202		(7) for an agency other than a financial regulatory
210	203		agency, trend performance data for the preceding five fiscal years
211	204		regarding:
212	205		(A) the number of full-time equivalent positions
213	206		at the agency;
214	207		(B) the number of complaints received from the
215	208		public and the number of complaints initiated by agency staff;
216	209		(C) the number of complaints dismissed and the
217	210		number of complaints resolved by enforcement action;
218	211		(D) the number of enforcement actions by sanction
219	212		type;
220	213		(E) the number of enforcement cases closed
221	214		through voluntary compliance;
222	215		(F) the amount of administrative penalties
223	216		assessed and the rate of collection of assessed administrative
224	217		penalties;
225	218		(G) the number of enforcement cases that allege a
226	219		threat to public health, safety, or welfare or a violation of
227	220		professional standards of care and the disposition of those cases;
228	221		(H) the average time to resolve a complaint;
229	222		(I) the number of license holders or regulated
230	223		persons broken down by type of license and license status,
231	224		including inactive status or retired status;
232	225		(J) the fee charged to issue and renew each type
233	226		of license, certificate, permit, or other similar authorization
234	227		issued by the agency;
235	228		(K) the average time to issue a license;
236	229		(L) litigation costs, broken down by
237	230		administrative hearings, judicial proceedings, and outside counsel
238	231		costs; and
239	232		(M) reserve fund balances; and
240	233		(8) for a financial regulatory agency, trend
241	234		performance data for the preceding five fiscal years regarding:
242	235		(A) the number of full-time equivalent positions
243	236		at the agency;
244	237		(B) the number of complaints received;
245	238		(C) the number of complaints dismissed or
246	239		resolved and, of those complaints, the number resolved by
247	240		enforcement action;
248	241		(D) the number of enforcement actions by type;
249	242		(E) the amount of administrative penalties
250	243		assessed and the amount of administrative penalties collected;
251	244		(F) the number of entities regulated by the
252	245		agency;
253	246		(G) the fee charged to issue and renew each type
254	247		of license, certificate, permit, or other similar authorization
255	248		issued by the agency, or any assessments paid to the agency by the
256	249		holder of a license, certificate, permit, or other similar
257	250		authorization issued by the agency;
258	251		(H) litigation costs, broken down by
259	252		administrative hearings, judicial proceedings, and outside counsel
260	253		costs;
261	254		(I) reserve fund balances; and
262	255		(J) the key performance measures approved by the
263	256		governing board of the agency during the fiscal year for which the
264	257		report is due.
265	258		(c) If, based on a review of an agency's annual report
266	259		submitted as required under Subsection (b), the board determines
267	260		that additional information is necessary to address an issue
268	261		identified during the review, the board may require an agency to
269	262		submit information to the board demonstrating the agency's:
270	263		(1) ability to perform those duties that are required
271	264		of the agency by its enabling statute or a related duty contained in
272	265		another law;
273	266		(2) financial soundness, including the agency's
274	267		ability to raise sufficient revenue, maintain sufficient operating
275	268		reserves, and meet all of the agency's financial obligations;
276	269		(3) compliance with the provisions of this chapter;
277	270		and
278	271		(4) satisfactory audit history, including a summary of
279	272		any corrective action taken by the agency in response to an audit.
280	273		SECTION 8. Section 472.105, Government Code, is amended to
281	274		read as follows:
282	275		Sec. 472.105. DISPOSITION OF CERTAIN FEES COLLECTED.
283	276		(a) Subject to Subsection (b), if [If] provided in an agency's
284	277		enabling legislation, the agency shall collect annually from its
285	278		license holders:
286	279		(1) a professional fee of $200 [from its license
287	280		holders annually], which shall be remitted to the state; and
288	281		(2)[. If provided in an agency's enabling legislation,
289	282		the agency shall collect] a scholarship fee of $10 [annually from
290	283		its license holders].
291	284		(b) A fee increase described by Section 1101.153,
292	285		Occupations Code, shall be deposited as provided by Subsection (b)
293	286		of that section.
294	287		SECTION 9. Section 472.108, Government Code, is amended to
295	288		read as follows:
296	289		Sec. 472.108. PROPERTY. An agency may:
297	290		(1) acquire by purchase, lease, gift, or any other
298	291		manner provided by law and maintain, use, and operate[,] any real,
299	292		personal, or mixed property, or any interest in property, necessary
300	293		or convenient to the exercise of the powers, rights, privileges, or
301	294		[and] functions of the agency;
302	295		(2) sell or otherwise dispose of any real, personal,
303	296		or mixed property, or any interest in property, that the agency
304	297		determines is not necessary or convenient to the exercise of the
305	298		agency's powers, rights, privileges, or functions;
306	299		(3) construct, extend, improve, maintain, and
307	300		reconstruct, or cause to construct, extend, improve, maintain, and
308	301		reconstruct, and use and operate all facilities necessary or
309	302		convenient to the exercise of the powers, rights, privileges, or
310	303		functions of the agency; and
311	304		(4) borrow money, as may be authorized from time to
312	305		time by an affirmative vote of a two-thirds majority of the
313	306		policy-making body of the agency, for a period not to exceed five
314	307		years if necessary or convenient to the exercise of the agency's
315	308		powers, rights, privileges, or functions.
316	309		SECTION 10. Sections 472.110(b) and (d), Government Code,
317	310		are amended to read as follows:
318	311		(b) Except as provided by Section 472.105 and this
319	312		subsection, all [All] fees and funds collected by an agency, any
320	313		funds appropriated to the agency, and any other funds belonging to
321	314		or under the control of an agency shall be deposited in
322	315		interest-bearing deposit accounts in the Texas Treasury
323	316		Safekeeping Trust Company. The comptroller shall contract with the
324	317		agency for the maintenance of the deposit accounts under terms
325	318		comparable to a contract between a commercial banking institution
326	319		and its customers. An agency may not hold funds in an account that
327	320		is not under the control of the comptroller. This subsection does
328	321		not apply to funds held by an agency under Section 13.016, 154.351,
329	322		154.353, 154.412, 156.501, 157.0201, 341.602, or 393.628, Finance
330	323		Code.
331	324		(d) An agency shall remit all administrative penalties
332	325		collected by the agency to the comptroller for deposit in the
333	326		general revenue fund. This subsection does not apply to the Texas
334	327		Real Estate Commission, the Texas Appraiser Licensing and
335	328		Certification Board, or a financial regulatory agency.
336	329		SECTION 11. Section 16.001, Finance Code, is amended to
337	330		read as follows:
338	331		Sec. 16.001. SELF-DIRECTED AND SEMI-INDEPENDENT STATUS OF
339	332		FINANCIAL REGULATORY AGENCIES [DEFINITIONS]. (a) A financial
340	333		regulatory agency has self-directed and semi-independent status as
341	334		provided under Chapter 472, Government Code.
342	335		(b) For purposes of [In] this chapter and Chapter 472,
343	336		Government Code:
344	337		(1) "Financial regulatory agency" means:
345	338		(A) the Texas Department of Banking;
346	339		(B) the Department of Savings and Mortgage
347	340		Lending;
348	341		(C) the Office of Consumer Credit Commissioner;
349	342		and
350	343		(D) the Credit Union Department.
351	344		(2) "Policy-making body" means:
352	345		(A) the Finance Commission of Texas for:
353	346		(i) the Texas Department of Banking;
354	347		(ii) the Department of Savings and Mortgage
355	348		Lending; and
356	349		(iii) the Office of Consumer Credit
357	350		Commissioner; and
358	351		(B) the Credit Union Commission for the Credit
359	352		Union Department.
360	353		SECTION 12. Sections 1105.001 and 1105.002, Occupations
361	354		Code, are amended to read as follows:
362	355		Sec. 1105.001. DEFINITIONS. In this chapter [section]:
363	356		(1) "Agency" means the commission and the board.
364	357		(2) "Board" means the Texas Appraiser Licensing and
365	358		Certification Board.
366	359		(3) "Commission" means the Texas Real Estate
367	360		Commission.
368	361		Sec. 1105.002. SELF-DIRECTED AND SEMI-INDEPENDENT STATUS.
369	362		(a) Notwithstanding any other provision of law, the agency is
370	363		self-directed and semi-independent as specified by Chapter 472,
371	364		Government Code. [this chapter. Any Act of the 82nd Legislature
372	365		that relates to the agency and that is inconsistent with the agency
373	366		being self-directed and semi-independent may be implemented by the
374	367		administrator of the agency only on authorization by the agency.]
375	368		(b) Chapter 472, Government Code, [This chapter] does not
376	369		affect the board's status as an independent subdivision of the
377	370		commission as provided by Section 1103.051.
378	371		SECTION 13. The following are repealed:
379	372		(1) Sections 16.002, 16.003, 16.004, 16.005, 16.006,
380	373		16.007, 16.008, 16.009, 16.010, 16.011, and 16.012, Finance Code;
381	374		and
382	375		(2) Sections 1105.003, 1105.004, 1105.005, 1105.006,
383	376		1105.007, 1105.008, 1105.009, 1105.010, 1105.011, and 1105.012,
384	377		Occupations Code.
385	378		SECTION 14. Section 472.104, Government Code, as amended by
386	379		this Act, applies only to a report originally due on or after the
387	380		effective date of this Act. A report originally due before the
388	381		effective date of this Act is governed by the law in effect on the
389	382		date the report was originally due, and the former law is continued
390	383		in effect for that purpose.
391	384		SECTION 15. The repeal by this Act of Section 16.006,
392	385		Finance Code, and Section 1105.006, Occupations Code, does not
393	386		affect the validity of a contract entered into under those sections
394	387		before the effective date of this Act.
395	388		SECTION 16. This Act takes effect September 1, 2015.
396		-	* * * * *