Bill Text: TX SB217 | 2015-2016 | 84th Legislature | Comm Sub
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-Comm_Sub.html
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-Comm_Sub.html
By: Hinojosa, et al. | S.B. No. 217 | |
(In the Senate - Filed March 5, 2015; March 10, 2015, read | ||
first time and referred to Committee on Business and Commerce; | ||
March 30, 2015, rereferred to Committee on Finance; April 13, 2015, | ||
reported adversely, with favorable Committee Substitute by the | ||
following vote: Yeas 14, Nays 0; April 13, 2015, sent to printer.) | ||
COMMITTEE SUBSTITUTE FOR S.B. No. 217 | By: Hinojosa |
|
||
|
||
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; [ |
||
(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 [ |
||
(1) "Agency"[ |
||
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 AND OVERSIGHT OF CERTAIN AGENCIES. | ||
This chapter does not affect: | ||
(1) 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; or | ||
(2) the oversight of a financial regulatory agency by | ||
that agency's governing body or the agency's accountability to, and | ||
relationship with, that governing body. | ||
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 board's staff shall submit the staff's | ||
recommendation as to whether the agency's application should be | ||
granted or denied to the board. The board may recommend to the | ||
committee of each house of the legislature that has jurisdiction | ||
over appropriations 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. REVIEW OF SELF-DIRECTED AND SEMI-INDEPENDENT | ||
AGENCIES. (a) The board's staff and the board shall review each | ||
agency's annual report submitted under Section 472.104(b) and any | ||
additional information requested by the board and received from the | ||
agency to determine the agency's compliance with this chapter. | ||
(b) 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 to address issues | ||
identified during a review conducted under this section, except | ||
that the staff may not recommend the revocation of an agency's | ||
self-directed and semi-independent status. | ||
(c) 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. A recommendation to | ||
revoke an agency's self-directed and semi-independent status may be | ||
based on the agency's conduct, including: | ||
(1) material abuse by the agency of its self-directed | ||
and semi-independent status; or | ||
(2) fiscal mismanagement. | ||
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). If the board recommends revocation of an agency's | ||
self-directed and semi-independent status, the agency shall have | ||
the opportunity to respond in writing to that recommendation. | ||
(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 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 [ |
||
[ |
||
undergo a financial audit and an effectiveness audit at least once | ||
every six years, unless the state auditor determines that the | ||
auditor may rely on an independent audit of the agency conducted | ||
during the same period. 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 [ |
||
committee of each house of the legislature that has jurisdiction | ||
over appropriations, and to the 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; [ |
||
(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; | ||
(C) the number of complaints dismissed or | ||
resolved and, of those complaints, the number resolved by | ||
enforcement action; | ||
(D) the number of enforcement actions by type; | ||
(E) the amount of administrative penalties | ||
assessed and the amount of administrative penalties collected; | ||
(F) the number of entities regulated by the | ||
agency; | ||
(G) the fee charged to issue and renew each type | ||
of license, certificate, permit, or other similar authorization | ||
issued by the agency, or any assessments paid to the agency by the | ||
holder of a license, certificate, permit, or other similar | ||
authorization issued by the agency; | ||
(H) litigation costs, broken down by | ||
administrative hearings, judicial proceedings, and outside counsel | ||
costs; | ||
(I) reserve fund balances; and | ||
(J) the key performance measures approved by the | ||
governing board of the agency during the fiscal year for which the | ||
report is due. | ||
(c) If, based on a review of an agency's annual report | ||
submitted as required under Subsection (b), the board determines | ||
that additional information is necessary to address an issue | ||
identified during the review, the board may require an agency to | ||
submit information to the board demonstrating the agency's: | ||
(1) ability to perform those duties that are required | ||
of the agency by its enabling statute or a related duty contained in | ||
another law; | ||
(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 [ |
||
enabling legislation, the agency shall collect annually from its | ||
license holders: | ||
(1) a professional fee of $200 [ |
||
|
||
(2)[ |
||
|
||
|
||
(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. An agency may: | ||
(1) acquire by purchase, lease, gift, or any other | ||
manner provided by law and maintain, use, and operate[ |
||
personal, or mixed property, or any interest in property, necessary | ||
or convenient to the exercise of the powers, rights, privileges, or | ||
[ |
||
(2) sell or otherwise dispose of any real, personal, | ||
or mixed property, or any interest in property, that the 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 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 agency, for a period not to exceed five | ||
years if necessary or convenient to the exercise of the 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 and this | ||
subsection, all [ |
||
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. This subsection does | ||
not apply to funds held by an agency under Section 13.016, 154.351, | ||
154.353, 154.412, 156.501, 157.0201, 341.602, or 393.628, Finance | ||
Code. | ||
(d) An agency shall remit all administrative penalties | ||
collected by the agency to the comptroller for deposit in the | ||
general revenue fund. This subsection does not apply to the Texas | ||
Real Estate Commission, the Texas Appraiser Licensing and | ||
Certification Board, or a financial regulatory agency. | ||
SECTION 11. Section 16.001, Finance Code, is amended to | ||
read as follows: | ||
Sec. 16.001. SELF-DIRECTED AND SEMI-INDEPENDENT STATUS OF | ||
FINANCIAL REGULATORY AGENCIES [ |
||
regulatory agency has self-directed and semi-independent status as | ||
provided under Chapter 472, Government Code. | ||
(b) For purposes of [ |
||
Government Code: | ||
(1) "Financial regulatory agency" means: | ||
(A) the Texas Department of Banking; | ||
(B) the Department of Savings and Mortgage | ||
Lending; | ||
(C) the Office of Consumer Credit Commissioner; | ||
and | ||
(D) the Credit Union Department. | ||
(2) "Policy-making body" means: | ||
(A) the Finance Commission of Texas for: | ||
(i) the Texas Department of Banking; | ||
(ii) the Department of Savings and Mortgage | ||
Lending; and | ||
(iii) the Office of Consumer Credit | ||
Commissioner; and | ||
(B) the Credit Union Commission for the Credit | ||
Union Department. | ||
SECTION 12. Sections 1105.001 and 1105.002, Occupations | ||
Code, are amended to read as follows: | ||
Sec. 1105.001. DEFINITIONS. In this chapter [ |
||
(1) "Agency" means the commission and the board. | ||
(2) "Board" means the Texas Appraiser Licensing and | ||
Certification Board. | ||
(3) "Commission" means the Texas Real Estate | ||
Commission. | ||
Sec. 1105.002. SELF-DIRECTED AND SEMI-INDEPENDENT STATUS. | ||
(a) Notwithstanding any other provision of law, the agency is | ||
self-directed and semi-independent as specified by Chapter 472, | ||
Government Code. [ |
||
|
||
|
||
|
||
(b) Chapter 472, Government Code, [ |
||
affect the board's status as an independent subdivision of the | ||
commission as provided by Section 1103.051. | ||
SECTION 13. The following are repealed: | ||
(1) Sections 16.002, 16.003, 16.004, 16.005, 16.006, | ||
16.007, 16.008, 16.009, 16.010, 16.011, and 16.012, Finance Code; | ||
and | ||
(2) Sections 1105.003, 1105.004, 1105.005, 1105.006, | ||
1105.007, 1105.008, 1105.009, 1105.010, 1105.011, and 1105.012, | ||
Occupations Code. | ||
SECTION 14. 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 15. 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 16. This Act takes effect September 1, 2015. | ||
* * * * * |