Bill Text: TX SB217 | 2015-2016 | 84th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the self-directed and semi-independent status of certain agencies and to the requirements applicable to, and the oversight of, those agencies.

Spectrum: Moderate Partisan Bill (Republican 5-1)

Status: (Engrossed - Dead) 2015-05-01 - Referred to State Affairs [SB217 Detail]

Download: Texas-2015-SB217-Introduced.html
  84R4532 CJC-D
 
  By: Hinojosa, et al. S.B. No. 217
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the self-directed and semi-independent status of
  certain agencies and to the requirements applicable to, and the
  oversight of, those agencies.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 472.001 and 472.002, Government Code,
  are amended to read as follows:
         Sec. 472.001.  APPLICABILITY OF CHAPTER.  This chapter
  applies to:
               (1)  the Texas State Board of Public Accountancy;
               (2)  the Texas Board of Professional Engineers; [and]
               (3)  the Texas Board of Architectural Examiners;
               (4)  the Texas Real Estate Commission;
               (5)  the Texas Appraiser Licensing and Certification
  Board;
               (6)  the Texas Department of Banking;
               (7)  the Department of Savings and Mortgage Lending;
               (8)  the Office of Consumer Credit Commissioner; and
               (9)  the Credit Union Department.
         Sec. 472.002.  DEFINITIONS [DEFINITION].  In this chapter:
               (1)  "Agency" [, "agency"] means an agency listed in
  Section 472.001.
               (2)  "Board" means the Legislative Budget Board.
               (3)  "Financial regulatory agency" means an agency
  described by Sections 472.001(6)-(9).
         SECTION 2.  Subchapter A, Chapter 472, Government Code, is
  amended by adding Sections 472.003, 472.004, 472.005, and 472.006
  to read as follows:
         Sec. 472.003.  STATUS OF CERTAIN AGENCIES. This chapter
  does not affect the Texas Appraiser Licensing and Certification
  Board's status as an independent subdivision of the Texas Real
  Estate Commission as provided by Section 1103.051, Occupations
  Code.
         Sec. 472.004.  ROLE OF BOARD; RECOVERY OF COSTS. (a)  The
  board has responsibility under this chapter for developing and
  administering the application process, monitoring agencies, and
  performing other duties provided under this chapter.
         (b)  The board may recover from an agency the costs
  associated with administering the application process for the
  agency and the board's monitoring of the agency.
         Sec. 472.005.  APPLICATION FOR SELF-DIRECTED AND
  SEMI-INDEPENDENT AGENCY STATUS; AUDIT REQUIRED. (a) Before a
  state agency may be granted self-directed and semi-independent
  status, the agency must:
               (1)  submit an application to the board; and
               (2)  undergo a financial audit and an effectiveness
  audit as required under Subsection (e).
         (b)  A state agency may not submit the application required
  under Subsection (a) until the agency's governing body:
               (1)  provides notice and holds a public hearing on the
  application; and
               (2)  approves, by majority vote, the submission of the
  application.
         (c)  The application must be submitted to the board as part
  of the agency's legislative appropriations request.
         (d)  The application shall be in the form prescribed by the
  board, which must require the agency applying for self-directed and
  semi-independent status to:
               (1)  state the reasons for which the agency is seeking
  self-directed and semi-independent status and address any
  potential problems that may result from granting that status; and
               (2)  include, as relevant to the agency's application:
                     (A)  information demonstrating the agency's
  history of efficient operation and continuing ability to operate
  efficiently and in a manner that protects the public interest;
                     (B)  documentation of adequate budgetary
  processes and controls; and
                     (C)  an analysis of the fiscal effect on state
  revenue and other state agencies demonstrating that the agency's
  status as self-directed and semi-independent would be revenue
  neutral.
         (e)  A state agency must undergo a financial audit and an
  effectiveness audit by the state auditor during the four-year
  period preceding the date the agency submits an application under
  Subsection (a). The state auditor shall conduct the financial
  audit and effectiveness audit and make the findings of the
  completed audits available to the board.
         (f)  The board may require an agency to submit additional
  information necessary to evaluate the agency's ability to operate
  effectively as a self-directed and semi-independent agency.
         Sec. 472.006.  REVIEW OF APPLICATION AND RECOMMENDATION.
  (a)  The board's staff shall promptly review an application
  submitted under Section 472.005. The staff review shall determine
  whether the agency's application is sufficient and whether the
  agency's application should be granted or denied.
         (b)  The staff shall submit to the committee of each house of
  the legislature that has jurisdiction over appropriations the
  staff's recommendation as to whether the agency's application
  should be granted or denied.  The board may recommend that
  legislation be introduced to grant self-directed and
  semi-independent status to the agency.
         SECTION 3.  Section 472.051(c), Government Code, is amended
  to read as follows:
         (c)  The Sunset Advisory Commission shall examine each
  agency's status and performance as a self-directed and
  semi-independent agency and the agency's compliance with this
  chapter as part of the commission's periodic review of the agency
  under Chapter 325 (Texas Sunset Act).
         SECTION 4.  Subchapter B, Chapter 472, Government Code, is
  amended by adding Sections 472.052 and 472.053 to read as follows:
         Sec. 472.052.  OVERSIGHT OF SELF-DIRECTED AND
  SEMI-INDEPENDENT AGENCIES. (a) The board shall review each
  agency's annual report submitted under Section 472.104(b) and any
  additional information received from the agency to determine the
  agency's compliance with this chapter.
         (b)  The board may require an agency to submit additional
  information necessary to determine the agency's compliance with
  this chapter. An agency shall comply with the board's request for
  additional information. The board may prescribe the form in which
  the agency must submit the additional information.
         (c)  The board's staff may make a recommendation to the
  committee of each house of the legislature that has jurisdiction
  over appropriations and to the legislature based on the review
  conducted under this section. The board may recommend that
  legislation be introduced to revoke an agency's self-directed and
  semi-independent status or otherwise address issues raised by the
  board.
         Sec. 472.053.  REVOCATION OF SELF-DIRECTED AND
  SEMI-INDEPENDENT STATUS. (a) The board may develop criteria for
  determining when a recommendation for the revocation of an agency's
  self-directed and semi-independent status is appropriate.  The
  board may recommend the revocation of an agency's self-directed and
  semi-independent status to the legislature as provided by Section
  472.052(c).
         (b)  The Sunset Advisory Commission may recommend revocation
  of an agency's self-directed and semi-independent status to the
  legislature as part of the commission's periodic review of the
  agency under Chapter 325 (Texas Sunset Act).
         (c)  The legislature may consider legislation to revoke an
  agency's self-directed and semi-independent status regardless of
  whether the revocation is recommended by the board's staff or the
  Sunset Advisory Commission.
         (d)  The board shall assist an agency in transitioning from
  self-directed and semi-independent status if the agency's status is
  revoked. The board may consider issues relating to appropriations
  and financial planning for the agency, and an evaluation of the
  status and disposition of agency contracts, facilities,
  properties, and leases when assisting an agency under this
  subsection.
         SECTION 5.  Section 472.102, Government Code, is amended by
  adding Subsection (d) to read as follows:
         (d)  Not later than August 31 of each state fiscal year, the
  Texas Real Estate Commission and the Texas Appraiser Licensing and
  Certification Board together shall remit $750,000 to the general
  revenue fund.
         SECTION 6.  Section 472.103, Government Code, is amended to
  read as follows:
         Sec. 472.103.  AUDITS.  Nothing in this chapter shall affect
  the duty of the state auditor to audit an agency.  The state auditor
  shall enter into a contract and schedule with each agency to conduct
  audits, including financial audits [reports] and effectiveness
  [performance] audits.  The schedule must require an agency to
  undergo a financial audit and an effectiveness audit at least once
  every six years. The state auditor may conduct a risk-based audit
  of an agency at any time. Costs incurred in performing such audits
  shall be reimbursed by the agency.
         SECTION 7.  Section 472.104, Government Code, is amended by
  amending Subsection (b) and adding Subsection (c) to read as
  follows:
         (b)  In addition to the reporting requirements of Subsection
  (a), each agency shall, in the form prescribed by the board, report
  annually, not later than November 20 [1], to the governor, to the
  committee of each house of the legislature that has jurisdiction
  over appropriations, and to the board [Legislative Budget Board]
  the following:
               (1)  the salary for all agency personnel and the total
  amount of per diem expenses and travel expenses paid for all agency
  employees, including trend performance data for the preceding five
  fiscal years;
               (2)  the total amount of per diem expenses and travel
  expenses paid for each member of the governing body of each agency,
  including trend performance data for the preceding five fiscal
  years;
               (3)  each agency's operating plan covering a period of
  two fiscal years;
               (4)  each agency's operating budget, including revenues
  from all sources, an accounting of all expenditures, and a
  breakdown of expenditures by program and administrative expenses,
  showing:
                     (A)  projected budget data for a period of two
  fiscal years; and
                     (B)  trend performance data for the preceding five
  fiscal years; [and]
               (5)  the purchase or sale of any real property during
  the year;
               (6)  any lease and maintenance costs associated with
  real property owned or leased by the agency;
               (7)  for an agency other than a financial regulatory
  agency, trend performance data for the preceding five fiscal years
  regarding:
                     (A)  the number of full-time equivalent positions
  at the agency;
                     (B)  the number of complaints received from the
  public and the number of complaints initiated by agency staff;
                     (C)  the number of complaints dismissed and the
  number of complaints resolved by enforcement action;
                     (D)  the number of enforcement actions by sanction
  type;
                     (E)  the number of enforcement cases closed
  through voluntary compliance;
                     (F)  the amount of administrative penalties
  assessed and the rate of collection of assessed administrative
  penalties;
                     (G)  the number of enforcement cases that allege a
  threat to public health, safety, or welfare or a violation of
  professional standards of care and the disposition of those cases;
                     (H)  the average time to resolve a complaint;
                     (I)  the number of license holders or regulated
  persons broken down by type of license and license status,
  including inactive status or retired status;
                     (J)  the fee charged to issue and renew each type
  of license, certificate, permit, or other similar authorization
  issued by the agency;
                     (K)  the average time to issue a license;
                     (L)  litigation costs, broken down by
  administrative hearings, judicial proceedings, and outside counsel
  costs; and
                     (M)  reserve fund balances; and
               (8)  for a financial regulatory agency, trend
  performance data for the preceding five fiscal years regarding:
                     (A)  the number of full-time equivalent positions
  at the agency;
                     (B)  the number of complaints received from the
  public and the number of complaints initiated by agency staff;
                     (C)  the number of complaints dismissed and the
  number of complaints resolved by enforcement action;
                     (D)  the number of enforcement actions by sanction
  type;
                     (E)  the number of enforcement cases closed
  through voluntary compliance;
                     (F)  the amount of administrative penalties
  assessed and the rate of collection of assessed administrative
  penalties;
                     (G)  the number of entities regulated by the
  agency;
                     (H)  the fee charged to issue and renew each type
  of license, certificate, permit, or other similar authorization
  issued by the agency;
                     (I)  litigation costs, broken down by
  administrative hearings, judicial proceedings, and outside counsel
  costs;
                     (J)  reserve fund balances; and
                     (K)  the key performance measures approved by the
  governing board of the agency during the fiscal year for which the
  report is due.
         (c)  The board may require an agency to submit, at any time,
  information to the board demonstrating the agency's:
               (1)  ability to perform the activities the agency is
  required by law to perform;
               (2)  financial soundness, including the agency's
  ability to raise sufficient revenue, maintain sufficient operating
  reserves, and meet all of the agency's financial obligations;
               (3)  compliance with the provisions of this chapter;
  and
               (4)  satisfactory audit history, including a summary of
  any corrective action taken by the agency in response to an audit.
         SECTION 8.  Section 472.105, Government Code, is amended to
  read as follows:
         Sec. 472.105.  DISPOSITION OF CERTAIN FEES COLLECTED.  (a)
  Subject to Subsection (b), if [If] provided in an agency's enabling
  legislation, the agency shall collect annually from its license
  holders:
               (1)  a professional fee of $200 [from its license
  holders annually], which shall be remitted to the state; and
               (2)  [.     If provided in an agency's enabling
  legislation, the agency shall collect] a scholarship fee of $10
  [annually from its license holders].
         (b)  A fee increase described by Section 1101.153,
  Occupations Code, shall be deposited as provided by Subsection (b)
  of that section.
         SECTION 9.  Section 472.108, Government Code, is amended to
  read as follows:
         Sec. 472.108.  PROPERTY.  (a) An agency other than a
  financial regulatory agency may acquire by lease, own and maintain,
  use, and operate, any real, personal, or mixed property necessary
  to the exercise of the powers, rights, privileges, and functions of
  the agency.
         (b)  A financial regulatory agency 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 financial regulatory agency;
               (2)  sell or otherwise dispose of any real, personal,
  or mixed property, or any interest in property, that the financial
  regulatory agency determines is not necessary or convenient to the
  exercise of the agency'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 financial regulatory agency; and
               (4)  borrow money, as may be authorized from time to
  time by an affirmative vote of a two-thirds majority of the
  policy-making body of the financial regulatory agency, for a period
  not to exceed five years if necessary or convenient to the exercise
  of the financial regulatory agency's powers, rights, privileges, or
  functions.
         SECTION 10.  Sections 472.110(b) and (d), Government Code,
  are amended to read as follows:
         (b)  Except as provided by Section 472.105, all [All] fees
  and funds collected by an agency, any funds appropriated to the
  agency, and any other funds belonging to or under the control of an
  agency shall be deposited in interest-bearing deposit accounts in
  the Texas Treasury Safekeeping Trust Company.  The comptroller
  shall contract with the agency for the maintenance of the deposit
  accounts under terms comparable to a contract between a commercial
  banking institution and its customers.  An agency may not hold funds
  in an account that is not under the control of the comptroller.
         (d)  An agency other than a financial regulatory agency shall
  remit all administrative penalties collected by the agency to the
  comptroller for deposit in the general revenue fund.
         SECTION 11.  The following are repealed:
               (1)  Chapter 16, Finance Code; and
               (2)  Chapter 1105, Occupations Code.
         SECTION 12.  Section 472.104, Government Code, as amended by
  this Act, applies only to a report originally due on or after the
  effective date of this Act. A report originally due before the
  effective date of this Act is governed by the law in effect on the
  date the report was originally due, and the former law is continued
  in effect for that purpose.
         SECTION 13.  The repeal by this Act of Section 16.006,
  Finance Code, and Section 1105.006, Occupations Code, does not
  affect the validity of a contract entered into under those sections
  before the effective date of this Act.
         SECTION 14.  This Act takes effect September 1, 2015.
feedback