Texas House Bill HB3870

Texas 2009 - 81st Regular

• Out of House Committee: 4/27/09

Caption

Relating to self-directed and semi-independent status of state financial regulatory agencies; making an appropriation.

Impact

The passage of HB 3870 would signify a substantial change in how financial regulatory agencies operate in Texas, providing them with more control over their financial affairs. By permitting these agencies to manage their funds independently, the bill aims to enhance efficiency and accountability within state financial regulation. However, it could also raise concerns regarding oversight, as these agencies would operate with increased autonomy and may have less accountability to the state treasury and the legislative process.

Summary

House Bill 3870 addresses the self-directed and semi-independent status of various state financial regulatory agencies in Texas. The bill proposes that financial regulatory departments retain all funds collected, to be used solely for their administrative expenses, thereby establishing a dedicated expense fund outside the state treasury. This shift aims to streamline the financial operations of regulatory agencies, allowing them greater autonomy in managing their budgets and financial resources. No expenditures made by these offices can impact the general revenue fund, reinforcing their financial independence.

Contention

Notably, the bill has sparked discussions about the balance between agency independence and state oversight. Proponents argue that this independence is essential for ensuring that regulatory bodies can effectively administer their respective areas without the hindrance of state budgetary constraints. Conversely, critics worry that a lack of oversight could lead to potential mismanagement of public funds. The conversation surrounding HB 3870 reflects a broader debate about how to best empower state regulatory agencies while ensuring that they remain accountable to the public and the legislature.