Texas 2017 - 85th Regular

Texas Senate Bill SB1875 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		By: Hinojosa S.B. No. 1875
	2	+	(In the Senate - Filed March 10, 2017; March 23, 2017, read
	3	+	first time and referred to Committee on Finance; April 10, 2017,
	4	+	reported favorably by the following vote: Yeas 14, Nays 0;
	5	+	April 10, 2017, sent to printer.)
	6	+	Click here to see the committee vote
2	7
3	8
4	9		A BILL TO BE ENTITLED
5	10		AN ACT
6	11		relating to the self-directed and semi-independent status of
7	12		certain agencies and the requirements applicable to, and the
8	13		oversight of, those agencies.
9	14		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	15		SECTION 1. Section 472.104(b), Government Code, is amended
11	16		to read as follows:
12	17		(b) In addition to the reporting requirements of Subsection
13	18		(a), [each agency shall report annually,] not later than November 1
14	19		of each year, each agency shall submit the report required under
15	20		Section 473.101[, to the governor, to the committee of each house of
16	21		the legislature that has jurisdiction over appropriations, and to
17	22		the Legislative Budget Board the following:
18	23		[(1) the salary for all agency personnel and the total
19	24		amount of per diem expenses and travel expenses paid for all agency
20	25		employees, including trend performance data for the preceding five
21	26		fiscal years;
22	27		[(2) the total amount of per diem expenses and travel
23	28		expenses paid for each member of the governing body of each agency,
24	29		including trend performance data for the preceding five fiscal
25	30		years;
26	31		[(3) each agency's operating plan covering a period of
27	32		two fiscal years;
28	33		[(4) each agency's operating budget, including
29	34		revenues and a breakdown of expenditures by program and
30	35		administrative expenses, showing:
31	36		[(A) projected budget data for a period of two
32	37		fiscal years; and
33	38		[(B) trend performance data for the preceding
34	39		five fiscal years; and
35	40		[(5) trend performance data for the preceding five
36	41		fiscal years regarding:
37	42		[(A) the number of full-time equivalent
38	43		positions at the agency;
39	44		[(B) the number of complaints received from the
40	45		public and the number of complaints initiated by agency staff;
41	46		[(C) the number of complaints dismissed and the
42	47		number of complaints resolved by enforcement action;
43	48		[(D) the number of enforcement actions by
44	49		sanction type;
45	50		[(E) the number of enforcement cases closed
46	51		through voluntary compliance;
47	52		[(F) the amount of administrative penalties
48	53		assessed and the rate of collection of assessed administrative
49	54		penalties;
50	55		[(G) the number of enforcement cases that allege
51	56		a threat to public health, safety, or welfare or a violation of
52	57		professional standards of care and the disposition of those cases;
53	58		[(H) the average time to resolve a complaint;
54	59		[(I) the number of license holders or regulated
55	60		persons broken down by type of license and license status,
56	61		including inactive status or retired status;
57	62		[(J) the fee charged to issue and renew each type
58	63		of license, certificate, permit, or other similar authorization
59	64		issued by the agency;
60	65		[(K) the average time to issue a license;
61	66		[(L) litigation costs, broken down by
62	67		administrative hearings, judicial proceedings, and outside counsel
63	68		costs; and
64	69		[(M) reserve fund balances].
65	70		SECTION 2. Subtitle E, Title 4, Government Code, is amended
66	71		by adding Chapter 473 to read as follows:
67	72		CHAPTER 473. PROVISIONS GENERALLY APPLICABLE TO SELF-DIRECTED AND
68	73		SEMI-INDEPENDENT AGENCIES
69	74		SUBCHAPTER A. GENERAL PROVISIONS
70	75		Sec. 473.001. DEFINITIONS. In this chapter:
71	76		(1) "Agency" means a state agency that:
72	77		(A) is self-directed and semi-independent under
73	78		the laws of this state; or
74	79		(B) is seeking self-directed and
75	80		semi-independent agency status.
76	81		(2) "Board" means the Legislative Budget Board.
77	82		Sec. 473.002. ROLE OF BOARD; RECOVERY OF COSTS. (a) The
78	83		board has responsibility under this chapter for developing and
79	84		administering the application process, monitoring agencies, and
80	85		performing other duties provided under this chapter.
81	86		(b) The board may recover from an agency the costs
82	87		associated with administering the application process for the
83	88		agency and the board's monitoring of the agency.
84	89		Sec. 473.003. REVIEW OF LEGISLATION; REPORT. (a) The
85	90		board's staff shall review legislation passed in each regular or
86	91		special legislative session that:
87	92		(1) grants a state agency self-directed and
88	93		semi-independent status; or
89	94		(2) amends a provision of this chapter or any other law
90	95		that relates to a state agency's self-directed and semi-independent
91	96		status.
92	97		(b) Not later than December 1 of each even-numbered year,
93	98		the board's staff shall submit a report to the committee of each
94	99		house of the legislature that has jurisdiction over appropriations
95	100		that includes:
96	101		(1) a list of all state agencies granted self-directed
97	102		and semi-independent status during the preceding regular or special
98	103		session of the legislature; and
99	104		(2) recommendations by the board's staff to address
100	105		potential problems identified by the staff during the review
101	106		prescribed by Subsection (a).
102	107		SUBCHAPTER B. APPLICATION FOR SELF-DIRECTED AND SEMI-INDEPENDENT
103	108		AGENCY STATUS
104	109		Sec. 473.051. APPLICATION; AUDIT REQUIRED. (a) Before an
105	110		agency may be granted self-directed and semi-independent status,
106	111		the agency must:
107	112		(1) submit an application to the board; and
108	113		(2) undergo a financial audit and an effectiveness
109	114		audit as required under Subsection (e).
110	115		(b) A state agency may not submit the application required
111	116		under Subsection (a) until the agency's governing body:
112	117		(1) provides notice and holds a public hearing on the
113	118		application; and
114	119		(2) approves, by majority vote, the submission of the
115	120		application.
116	121		(c) The application must be submitted to the board as part
117	122		of the agency's legislative appropriations request.
118	123		(d) The board shall prescribe an application form that
119	124		requires the agency applying for self-directed and
120	125		semi-independent status to:
121	126		(1) state the reasons for which the agency is seeking
122	127		self-directed and semi-independent status and address any
123	128		potential problems that may result from granting that status; and
124	129		(2) include, as relevant to the agency's application:
125	130		(A) information demonstrating the agency's
126	131		history of efficient operation and continuing ability to operate
127	132		efficiently and in a manner that protects the public interest;
128	133		(B) documentation of adequate budgetary
129	134		processes and controls; and
130	135		(C) an analysis of the fiscal effect on state
131	136		revenue and other state agencies demonstrating that the agency's
132	137		status as self-directed and semi-independent would be
133	138		revenue-neutral.
134	139		(e) A state agency must undergo a financial audit and an
135	140		effectiveness audit by the state auditor during the four-year
136	141		period preceding the date the agency submits an application under
137	142		Subsection (a). The state auditor shall conduct the financial
138	143		audit and effectiveness audit and make the findings of the
139	144		completed audits available to the board.
140	145		(f) The board may require an agency to submit additional
141	146		information necessary to evaluate the agency's ability to operate
142	147		effectively as a self-directed and semi-independent agency.
143	148		Sec. 473.052. REVIEW OF APPLICATION; RECOMMENDATION.
144	149		(a) The board's staff shall promptly review an application
145	150		submitted under Section 473.051. The staff review shall determine
146	151		whether the agency's application is sufficient and whether the
147	152		agency's application should be granted or denied.
148	153		(b) The board's staff shall submit the staff's
149	154		recommendation as to whether the agency's application should be
150	155		granted or denied to the board. The board may recommend to the
151	156		committee of each house of the legislature that has jurisdiction
152	157		over appropriations that legislation be introduced to grant
153	158		self-directed and semi-independent status to the agency.
154	159		SUBCHAPTER C. REPORTING REQUIREMENTS; AUDITS
155	160		Sec. 473.101. ANNUAL REPORT. (a) In addition to any other
156	161		report required by law, not later than November 1 of each year, each
157	162		self-directed and semi-independent agency shall report in the form
158	163		prescribed by the board to the governor, the committee of each house
159	164		of the legislature that has jurisdiction over appropriations, and
160	165		the board the following:
161	166		(1) the salary for all agency personnel and the total
162	167		amount of per diem expenses and travel expenses paid for all agency
163	168		employees, including trend performance data for the preceding five
164	169		fiscal years;
165	170		(2) the total amount of per diem expenses and travel
166	171		expenses paid for each member of the governing body of each agency,
167	172		including trend performance data for the preceding five fiscal
168	173		years;
169	174		(3) each agency's operating plan covering a period of
170	175		two fiscal years;
171	176		(4) each agency's operating budget, including revenues
172	177		from all sources, an accounting of all expenditures, and a
173	178		breakdown of expenditures by program and administrative expenses,
174	179		showing:
175	180		(A) projected budget data for a period of two
176	181		fiscal years; and
177	182		(B) trend performance data for the preceding five
178	183		fiscal years;
179	184		(5) the purchase or sale of any real property during
180	185		the preceding year;
181	186		(6) any lease and maintenance costs associated with
182	187		real property owned or leased by the agency;
183	188		(7) for an agency other than a financial regulatory
184	189		agency as defined by Section 16.001, Finance Code, trend
185	190		performance data for the preceding five fiscal years regarding:
186	191		(A) the number of full-time equivalent positions
187	192		at the agency;
188	193		(B) the number of complaints received from the
189	194		public and the number of complaints initiated by agency staff;
190	195		(C) the number of complaints dismissed and the
191	196		number of complaints resolved by enforcement action;
192	197		(D) the number of enforcement actions, by
193	198		sanction type;
194	199		(E) the number of enforcement cases closed
195	200		through voluntary compliance;
196	201		(F) the amount of administrative penalties
197	202		assessed and the rate of collection of assessed administrative
198	203		penalties;
199	204		(G) the number of enforcement cases that allege a
200	205		threat to public health, safety, or welfare or a violation of
201	206		professional standards of care and the disposition of those cases;
202	207		(H) the average time to resolve a complaint;
203	208		(I) the number of license holders or regulated
204	209		persons, broken down by type of license and license status,
205	210		including inactive status or retired status;
206	211		(J) the fee charged to issue and renew each type
207	212		of license, certificate, permit, or other similar authorization
208	213		issued by the agency;
209	214		(K) the average time to issue a license;
210	215		(L) litigation costs, broken down by
211	216		administrative hearings, judicial proceedings, and outside counsel
212	217		costs; and
213	218		(M) reserve fund balances; and
214	219		(8) for a financial regulatory agency as defined by
215	220		Section 16.001, Finance Code, trend performance data for the
216	221		preceding five fiscal years regarding:
217	222		(A) the number of full-time equivalent positions
218	223		at the agency;
219	224		(B) the number of complaints received;
220	225		(C) the number of complaints dismissed or
221	226		resolved and, of those complaints, the number resolved by
222	227		enforcement action;
223	228		(D) the number of enforcement actions, by type;
224	229		(E) the amount of administrative penalties
225	230		assessed and the amount of administrative penalties collected;
226	231		(F) the number of entities regulated by the
227	232		agency;
228	233		(G) the fee charged to issue and renew each type
229	234		of license, certificate, permit, or other similar authorization
230	235		issued by the agency, or any assessments paid to the agency by the
231	236		holder of a license, certificate, permit, or other similar
232	237		authorization issued by the agency;
233	238		(H) litigation costs, broken down by
234	239		administrative hearings, judicial proceedings, and outside counsel
235	240		costs;
236	241		(I) reserve fund balances; and
237	242		(J) the key performance measures approved by the
238	243		governing board of the agency during the fiscal year for which the
239	244		report is due.
240	245		(b) If, based on a review of an agency's annual report
241	246		submitted as required under Subsection (a), the board determines
242	247		that additional information is necessary to address an issue
243	248		identified during the review, the board may require an agency to
244	249		submit information to the board demonstrating the agency's:
245	250		(1) ability to perform those duties that are required
246	251		of the agency by its enabling statute or a related duty contained in
247	252		another law;
248	253		(2) financial soundness, including the agency's
249	254		ability to raise sufficient revenue, maintain sufficient operating
250	255		reserves, and meet all of the agency's financial obligations;
251	256		(3) compliance with the provisions of this chapter;
252	257		and
253	258		(4) satisfactory audit history, including a summary of
254	259		any corrective action taken by the agency in response to an audit.
255	260		Sec. 473.102. AUDITS. (a) In addition to any other audit
256	261		required by law, the state auditor shall conduct a financial audit
257	262		and an effectiveness audit of a self-directed and semi-independent
258	263		agency at least once every six years, unless the state auditor
259	264		determines that the auditor may rely on an independent audit of the
260	265		agency conducted during the same period. The state auditor may
261	266		conduct a risk-based audit of a self-directed and semi-independent
262	267		agency at any time.
263	268		(b) The agency shall reimburse the state auditor for costs
264	269		incurred in performing an audit under this section.
265	270		SUBCHAPTER D. REVIEW OF SELF-DIRECTED AND SEMI-INDEPENDENT
266	271		AGENCIES; REVOCATION OF STATUS
267	272		Sec. 473.151. REVIEW OF AGENCIES. (a) The board's staff
268	273		and the board shall review each agency's annual report submitted
269	274		under Section 473.101 and any additional information requested by
270	275		the board and received from the agency to determine the agency's
271	276		compliance with this chapter.
272	277		(b) The board's staff may make a recommendation to the
273	278		committee of each house of the legislature that has jurisdiction
274	279		over appropriations and to the legislature to address issues
275	280		identified during a review conducted under this section, except
276	281		that the staff may not recommend the revocation of an agency's
277	282		self-directed and semi-independent status.
278	283		(c) The board may recommend that legislation be introduced
279	284		to revoke an agency's self-directed and semi-independent status or
280	285		otherwise address issues raised by the board. A recommendation to
281	286		revoke an agency's self-directed and semi-independent status may be
282	287		based on the agency's conduct, including:
283	288		(1) material abuse by the agency of its self-directed
284	289		and semi-independent status; or
285	290		(2) fiscal mismanagement.
286	291		Sec. 473.152. REVOCATION OF STATUS. (a) The board may
287	292		develop criteria for determining when a recommendation for the
288	293		revocation of an agency's self-directed and semi-independent
289	294		status is appropriate. The board may recommend the revocation of an
290	295		agency's self-directed and semi-independent status to the
291	296		legislature as provided by Section 473.151(c). If the board
292	297		recommends revocation of an agency's self-directed and
293	298		semi-independent status, the agency shall have the opportunity to
294	299		respond in writing to that recommendation.
295	300		(b) The Sunset Advisory Commission may recommend revocation
296	301		of an agency's self-directed and semi-independent status to the
297	302		legislature as part of the commission's periodic review of the
298	303		agency under Chapter 325 (Texas Sunset Act).
299	304		(c) The legislature may consider legislation to revoke an
300	305		agency's self-directed and semi-independent status regardless of
301	306		whether the revocation is recommended by the board or the Sunset
302	307		Advisory Commission.
303	308		(d) The board shall assist an agency in transitioning from
304	309		self-directed and semi-independent status if the agency's status is
305	310		revoked. The board may consider issues relating to appropriations
306	311		and financial planning for the agency, and an evaluation of the
307	312		status and disposition of agency contracts, facilities,
308	313		properties, and leases when assisting an agency under this
309	314		subsection.
310	315		SECTION 3. Section 16.005(c), Finance Code, is amended to
311	316		read as follows:
312	317		(c) In addition to the reporting requirements of Subsection
313	318		(b), not later than November 1 of each year, each financial
314	319		regulatory agency shall submit the report required under Section
315	320		473.101, Government Code [to the governor, the committee of each
316	321		house of the legislature that has jurisdiction over appropriations,
317	322		and the Legislative Budget Board a report that contains:
318	323		[(1) the salary for all financial regulatory agency
319	324		personnel and the total amount of per diem expenses and travel
320	325		expenses paid for all agency employees;
321	326		[(2) the total amount of per diem expenses and travel
322	327		expenses paid for each member of the agency's policy-making body,
323	328		provided that only one report must be submitted regarding the
324	329		Finance Commission of Texas;
325	330		[(3) the agency's operating plan and annual budget;
326	331		and
327	332		[(4) a detailed report of all revenue received and all
328	333		expenses incurred by the financial regulatory agency in the
329	334		previous 12 months].
330	335		SECTION 4. Section 1105.001, Occupations Code, is amended
331	336		to read as follows:
332	337		Sec. 1105.001. DEFINITIONS. In this chapter [section]:
333	338		(1) "Agency" means the commission and the board.
334	339		(2) "Board" means the Texas Appraiser Licensing and
335	340		Certification Board.
336	341		(3) "Commission" means the Texas Real Estate
337	342		Commission.
338	343		SECTION 5. Section 1105.005(c), Occupations Code, is
339	344		amended to read as follows:
340	345		(c) In addition to the reporting requirements of Subsection
341	346		(b), not later than November 1 of each year, the agency shall submit
342	347		the report required under Section 473.101, Government Code [to the
343	348		governor, the committee of each house of the legislature that has
344	349		jurisdiction over appropriations, and the Legislative Budget Board
345	350		a report that contains:
346	351		[(1) the salary for all agency personnel and the total
347	352		amount of per diem expenses and travel expenses paid for all agency
348	353		employees;
349	354		[(2) the total amount of per diem expenses and travel
350	355		expenses paid for each member of the agency;
351	356		[(3) the agency's operating plan and the annual
352	357		budgets of the commission and the board; and
353	358		[(4) a detailed report of all revenue received and all
354	359		expenses incurred by the agency in the previous 12 months].
355	360		SECTION 6. Section 16.005, Finance Code, Section 472.104,
356	361		Government Code, and Section 1105.005, Occupations Code, as amended
357	362		by this Act, and Section 473.101, Government Code, as added by this
358	363		Act, apply only to a report originally due on or after the effective
359	364		date of this Act. A report originally due before the effective date
360	365		of this Act is governed by the law in effect on the date the report
361	366		was originally due, and the former law is continued in effect for
362	367		that purpose.
363	368		SECTION 7. Section 473.051, Government Code, as added by
364	369		this Act, does not require a state agency that, on the effective
365	370		date of this Act, is self-directed and semi-independent to submit
366	371		an application to the Legislative Budget Board seeking
367	372		self-directed and semi-independent agency status.
368	373		SECTION 8. This Act takes effect September 1, 2017.
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