Texas House Bill HB823

Texas 2017 - 85th Regular

Caption

Relating to the self-directed and semi-independent status of the State Securities Board; authorizing fees.

Impact

The implications of HB 823 are significant for the regulatory framework governing securities in Texas. By granting the State Securities Board self-directed and semi-independent status, the bill empowers the board to manage its finances more effectively, which could lead to improved enforcement of securities regulations. Furthermore, the ability to set and collect fees will provide a steady stream of revenue that can be directly utilized for its operational needs. This shift is expected to lead to a more responsive regulatory environment that can adapt to changing market conditions without delay from legislative processes.

Summary

House Bill 823 proposes to amend the status of the State Securities Board, designating it as self-directed and semi-independent under the Government Code. This change is intended to enhance the operational autonomy of the board, allowing it to function with greater flexibility in its regulatory activities without needing to rely on state appropriations as its primary funding source. Similarly, the bill introduces provisions for the board to implement new fees related to various securities functions, such as the filing of applications and registrations, in order to sustain its operations financially.

Contention

While there is potential for enhanced efficiency, there are also concerns surrounding transparency and oversight. Critics argue that granting a regulatory body more autonomy could diminish accountability, as the board may not be required to follow the same stringent budgetary processes as other state agencies. This raise issues pertaining to public trust and oversight for the fees being charged and how they are utilized. Moreover, there may be apprehensions from stakeholders in the financial industry regarding the increased regulatory burden that could result from the board's expanded powers and revenue-generating capabilities.