84R4532 CJC-D
	By: Gonzales	H.B. No. 2024

	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.