HBA-JEK S.B. 736 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 736 By: Duncan Appropriations 5/2/2001 Engrossed BACKGROUND AND PURPOSE The 76th Legislature established the self-directed semi-independent agency pilot project (pilot project) to allow the Texas State Board of Accountancy, the Texas Board of Professional Engineers, and the Texas Board of Architectural Examiners to exercise greater budget flexibility, freedom from certain state agency requirements, and general autonomy in the operation of their respective agencies. Although the pilot project was scheduled as a four-year project, the agencies were unable to start the project during the interim because allowances had not been made for agency funds to be held outside of the state treasury. Senate Bill 736 continues the pilot project until September 1, 2005, and requires all fees and funds from the pilot project to be deposited in the Texas Treasury Safekeeping Trust Company. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS Senate Bill 736 amends law to provide for the continuation and operation of the Self-Directed SemiIndependent Agency Project Act and the continuation of the Texas State Board of Public Accountancy, the Texas Board of Professional Engineers, and the Texas Board of Architectural Examiners until September 1, 2005. The bill requires all fees and funds collected by a project agency during the pilot project and any funds appropriated to the project agency to be deposited in interest-bearing deposit accounts in the Texas Treasury Safekeeping Trust Company (trust company). The bill requires the comptroller of public accounts to contract with the project agency for the maintenance of the deposit accounts under terms comparable to a contract between a commercial banking institution and its customers. The bill requires unexpended fees of a state agency no longer having status as a self-directed semiindependent project agency to be transferred from the trust company to the state. The bill appropriates an amount equal to 50 percent for each project agency to establish itself as self-directed semi-independent after the conclusion of fiscal year 2001. EFFECTIVE DATE September 1, 2001.