Texas 2009 - 81st Regular

Texas House Bill HB3870 Compare Versions

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1	1	81R18238 JE-F
2	2	By: Darby, Flynn, Raymond, Pitts, Cook H.B. No. 3870
3	3	Substitute the following for H.B. No. 3870:
4	4	By: Flynn C.S.H.B. No. 3870
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to self-directed and semi-independent status of state
10	10	financial regulatory agencies; making an appropriation.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Title 2, Finance Code, is amended by adding
13	13	Chapter 16 to read as follows:
14	14	CHAPTER 16. FINANCIAL REGULATORY AGENCIES: SELF-DIRECTED AND
15	15	SEMI-INDEPENDENT
16	16	Sec. 16.001. DEFINITIONS. In this chapter:
17	17	(1) "Financial regulatory agency" means:
18	18	(A) the Texas Department of Banking;
19	19	(B) the Department of Savings and Mortgage
20	20	Lending;
21	21	(C) the Office of Consumer Credit Commissioner;
22	22	and
23	23	(D) the Credit Union Department.
24	24	(2) "Policy-making body" means:
25	25	(A) the Finance Commission of Texas for:
26	26	(i) the Texas Department of Banking;
27	27	(ii) the Department of Savings and Mortgage
28	28	Lending; and
29	29	(iii) the Office of Consumer Credit
30	30	Commissioner; and
31	31	(B) the Credit Union Commission for the Credit
32	32	Union Department.
33	33	Sec. 16.002. SELF-DIRECTED AND SEMI-INDEPENDENT STATUS OF
34	34	FINANCIAL REGULATORY AGENCIES. Notwithstanding any other
35	35	provision of law, a financial regulatory agency is self-directed
36	36	and semi-independent as specified by this chapter. Any Act of the
37	37	81st Legislature that relates to a financial regulatory agency and
38	38	that is inconsistent with the agency being self-directed and
39	39	semi-independent may be implemented by the financial regulatory
40	40	agency only on authorization by the policy-making body of the
41	41	financial regulatory agency.
42	42	Sec. 16.003. BUDGET, REVENUES, AND EXPENSES. (a) A
43	43	financial regulatory agency shall submit to the policy-making body
44	44	of the financial regulatory agency a budget annually using
45	45	generally accepted accounting principles. Notwithstanding any
46	46	other provision of law, including the General Appropriations Act,
47	47	the budget shall be adopted and approved only by the policy-making
48	48	body of the financial regulatory agency.
49	49	(b) A financial regulatory agency shall be responsible for
50	50	all direct and indirect costs of the agency's existence and
51	51	operation. The financial regulatory agency may not directly or
52	52	indirectly cause the general revenue fund to incur any cost.
53	53	(c) Subject to any limitations in a financial regulatory
54	54	agency's enabling legislation, a financial regulatory agency may
55	55	set the amounts of fees, penalties, charges, and revenues required
56	56	or permitted by statute or rule as necessary for the purpose of
57	57	carrying out the functions of the financial regulatory agency and
58	58	funding the budget adopted and approved under Subsection (a).
59	59	(d) All fees and funds collected by a financial regulatory
60	60	agency and any funds appropriated to the financial regulatory
61	61	agency shall be deposited in interest-bearing deposit accounts in
62	62	the Texas Treasury Safekeeping Trust Company. The comptroller
63	63	shall contract with the financial regulatory agency for the
64	64	maintenance of the deposit accounts under terms comparable to a
65	65	contract between a commercial banking institution and the
66	66	institution's customers.
67	67	(e) Periodically, each financial regulatory agency shall
68	68	submit to the agency's policy-making body, as directed by the
69	69	policy-making body, a report of the receipts and expenditures of
70	70	the financial regulatory agency.
71	71	(f) The fiscal year for a financial regulatory agency begins
72	72	on September 1 and ends on August 31.
73	73	Sec. 16.004. AUDITS. This chapter does not affect the duty
74	74	of the state auditor to audit a financial regulatory agency. The
75	75	state auditor shall enter into a contract and schedule with each
76	76	financial regulatory agency to conduct audits, including financial
77	77	reports and performance audits. The financial regulatory agency
78	78	shall reimburse the state auditor for all costs incurred in
79	79	performing the audits and shall provide to the governor a copy of
80	80	any audit performed.
81	81	Sec. 16.005. RECORDS; REPORTING REQUIREMENTS. (a) A
82	82	financial regulatory agency shall keep financial and statistical
83	83	information as necessary to disclose completely and accurately the
84	84	financial condition and results of operations of the agency.
85	85	(b) Before the beginning of each regular session of the
86	86	legislature, each financial regulatory agency shall submit to the
87	87	legislature and the governor a report describing all of the
88	88	agency's activities in the previous biennium. The report must
89	89	include:
90	90	(1) an audit as required by Section 16.004;
91	91	(2) a financial report of the previous fiscal year,
92	92	including reports on financial condition and results of operations;
93	93	(3) a description of all changes in fees imposed on
94	94	regulated industries;
95	95	(4) a report on changes in the regulatory jurisdiction
96	96	of the agency, including the number of chartered financial
97	97	instructions, license holders, and registrants subject to the
98	98	agency's jurisdiction and any changes in those figures; and
99	99	(5) a list of all new rules adopted or repealed.
100	100	(c) In addition to the reporting requirements of Subsection
101	101	(b), not later than November 1 of each year, each financial
102	102	regulatory agency shall submit to the governor, the committee of
103	103	each house of the legislature that has jurisdiction over
104	104	appropriations, and the Legislative Budget Board a report that
105	105	contains:
106	106	(1) the salary for all financial regulatory agency
107	107	personnel and the total amount of per diem expenses and travel
108	108	expenses paid for all agency employees;
109	109	(2) the total amount of per diem expenses and travel
110	110	expenses paid for each member of the agency's policy-making body,
111	111	provided that only one report must be submitted regarding the
112	112	Finance Commission of Texas;
113	113	(3) the agency's operating plan and annual budget; and
114	114	(4) a detailed report of all revenue received and all
115	115	expenses incurred by the financial regulatory agency in the
116	116	previous 12 months.
117	117	Sec. 16.006. ABILITY TO CONTRACT. (a) To carry out and
118	118	promote the objectives of this chapter, a financial regulatory
119	119	agency may enter into contracts and do all other acts incidental to
120	120	those contracts that are necessary for the administration of the
121	121	agency's affairs and for the attainment of the agency's purposes,
122	122	except as limited by Subsection (b).
123	123	(b) Any indebtedness, liability, or obligation of the
124	124	financial regulatory agency incurred under this section may not:
125	125	(1) create a debt or other liability of this state or
126	126	another entity other than the financial regulatory agency; or
127	127	(2) create any personal liability on the part of the
128	128	members of the policy-making body or the body's or agency's
129	129	employees.
130	130	Sec. 16.007. PROPERTY. A financial regulatory agency may:
131	131	(1) acquire by purchase, lease, gift, or any other
132	132	manner provided by law and maintain, use, and operate any real,
133	133	personal, or mixed property, or any interest in property, necessary
134	134	or convenient to the exercise of the powers, rights, privileges, or
135	135	functions of the financial regulatory agency;
136	136	(2) sell or otherwise dispose of any real, personal,
137	137	or mixed property, or any interest in property, that the financial
138	138	regulatory agency determines is not necessary or convenient to the
139	139	exercise of the agency's powers, rights, privileges, or functions;
140	140	(3) construct, extend, improve, maintain, and
141	141	reconstruct, or cause to construct, extend, improve, maintain, and
142	142	reconstruct, and use and operate all facilities necessary or
143	143	convenient to the exercise of the powers, rights, privileges, or
144	144	functions of the financial regulatory agency; and
145	145	(4) borrow money, as may be authorized from time to
146	146	time by an affirmative vote of a two-thirds majority of the
147	147	policy-making body of the financial regulatory agency, for a period
148	148	not to exceed five years if necessary or convenient to the exercise
149	149	of the financial regulatory agency's powers, rights, privileges, or
150	150	functions.
151	151	Sec. 16.008. SUITS. The office of the attorney general
152	152	shall represent a financial regulatory agency in any litigation.
153	153	The attorney general may assess and collect from the financial
154	154	regulatory agency reasonable attorney's fees associated with any
155	155	litigation under this section.
156	156	Sec. 16.009. POST-PARTICIPATION LIABILITY. (a) If a
157	157	financial regulatory agency no longer has status under this chapter
158	158	as a self-directed semi-independent financial regulatory agency
159	159	for any reason, the agency shall be liable for any expenses or debts
160	160	incurred by the agency during the time the agency was a
161	161	self-directed semi-independent financial regulatory agency. The
162	162	agency's liability under this section includes liability for any
163	163	lease entered into by the agency. This state is not liable for any
164	164	expense or debt covered by this subsection, and money from the
165	165	general revenue fund may not be used to repay the expense or debt.
166	166	(b) If a financial regulatory agency no longer has status
167	167	under this chapter as a self-directed semi-independent financial
168	168	regulatory agency for any reason, ownership of any property or
169	169	other asset acquired by the agency during the time the agency was a
170	170	self-directed semi-independent financial regulatory agency,
171	171	including unexpended fees in a deposit account in the Texas
172	172	Treasury Safekeeping Trust Company, shall be transferred to this
173	173	state.
174	174	Sec. 16.010. DUE PROCESS; OPEN GOVERNMENT. A financial
175	175	regulatory agency is:
176	176	(1) a governmental body for purposes of Chapters 551
177	177	and 552, Government Code; and
178	178	(2) a state agency for purposes of Chapters 2001 and
179	179	2005, Government Code.
180	180	Sec. 16.011. MEMBERSHIP IN EMPLOYEES RETIREMENT SYSTEM.
181	181	Employees of the financial regulatory agencies are members of the
182	182	Employees Retirement System of Texas under Chapter 812, Government
183	183	Code, and the agencies' transition to independent status as
184	184	provided by this chapter has no effect on their membership or any
185	185	benefits under that system.
186	186	Sec. 16.012. GIFTS. (a) Notwithstanding any other law, a
187	187	financial regulatory agency may not accept a gift, grant, or
188	188	donation:
189	189	(1) from a party to an enforcement action; or
190	190	(2) to pursue a specific investigation or enforcement
191	191	action.
192	192	(b) A financial regulatory agency must:
193	193	(1) report each gift, grant, or donation that the
194	194	agency receives as a separate item in the agency's report required
195	195	under Section 16.005(b); and
196	196	(2) include with the report a statement indicating the
197	197	purpose for which each gift, grant, or donation was donated and
198	198	used.
199	199	SECTION 2. Section 11.104, Finance Code, is amended to read
200	200	as follows:
201	201	Sec. 11.104. EXPENSES AND COMPENSATION OF MEMBERS. A
202	202	member of the finance commission is entitled to:
203	203	(1) the reimbursement for reasonable and necessary
204	204	expenses incidental to travel incurred in connection with the
205	205	performance of official duties; and
206	206	(2) a per diem [as set by legislative appropriation]
207	207	for each day that the member engages in the business of the finance
208	208	commission.
209	209	SECTION 3. Section 11.110(c), Finance Code, is amended to
210	210	read as follows:
211	211	(c) A person appointed to the finance commission is entitled
212	212	to reimbursement under Section 11.104, as if the person were a
213	213	member of the finance commission, [as provided by the General
214	214	Appropriations Act,] for the travel expenses incurred in attending
215	215	the training program regardless of whether the attendance at the
216	216	program occurs before or after the person qualifies for office.
217	217	SECTION 4. Section 11.204, Finance Code, is amended by
218	218	adding Subsection (c) to read as follows:
219	219	(c) The finance commission shall have charge and control of
220	220	the property known as the Finance Commission Building and use of
221	221	staff, equipment, and facilities of the finance agencies. The
222	222	Finance Commission Building refers to the property located in the
223	223	city of Austin and titled in the name of the Banking Section of the
224	224	Finance Commission of Texas, as described by deed recorded in
225	225	Volume 5080, Page 1099, of the Deed Records of Travis County, Texas.
226	226	SECTION 5. Section 15.2041(c), Finance Code, is amended to
227	227	read as follows:
228	228	(c) A person appointed to the commission is entitled to
229	229	reimbursement under Section 15.207, as if the person were a member
230	230	of the commission, for travel expenses incurred in attending the
231	231	training program, regardless of whether the attendance at the
232	232	program occurs before or after the person qualifies for office[, as
233	233	provided by the General Appropriations Act and as if the person were
234	234	a member of the commission].
235	235	SECTION 6. Subchapter E, Chapter 15, Finance Code, is
236	236	amended by adding Section 15.4011 to read as follows:
237	237	Sec. 15.4011. CREDIT UNION DEPARTMENT BUILDING. The
238	238	commission shall have charge and control of the property known as
239	239	the Credit Union Department Building and use of staff, equipment,
240	240	and facilities of the department. The Credit Union Department
241	241	Building refers to the property located in the city of Austin and
242	242	titled in the name of the State of Texas for the use and benefit of
243	243	the Credit Union Department, as described by deed recorded in
244	244	Volume 6126, Page 27, of the Deed Records of Travis County, Texas.
245	245	SECTION 7. Section 156.101(a), Finance Code, is amended to
246	246	read as follows:
247	247	(a) The commissioner shall administer and enforce this
248	248	chapter.
249	249	SECTION 8. Section 2165.007(b), Government Code, is amended
250	250	to read as follows:
251	251	(b) Notwithstanding any other law, the commission shall
252	252	provide facilities management services in relation to all state
253	253	agency facilities in Travis County or a county adjacent to Travis
254	254	County. The commission's duty does not apply to:
255	255	(1) a facility owned or operated by an institution of
256	256	higher education;
257	257	(2) military facilities;
258	258	(3) facilities owned or operated by the Texas
259	259	Department of Criminal Justice;
260	260	(4) facilities owned or operated by the Texas Youth
261	261	Commission;
262	262	(5) facilities owned or operated by the Texas
263	263	Department of Transportation;
264	264	(6) the Capitol, including the Capitol Extension, the
265	265	General Land Office building, the Bob Bullock Texas State History
266	266	Museum, any museum located on the Capitol grounds, the Governor's
267	267	Mansion, and any property maintained by the Texas Historical
268	268	Commission under Sections 442.0072 and 442.0073;
269	269	(7) a facility determined by the commission to be
270	270	completely residential;
271	271	(8) a regional or field office of a state agency; [or]
272	272	(9) a facility located within or on state park
273	273	property;
274	274	(10) the property known as the Finance Commission
275	275	Building described by deed recorded in Volume 5080, Page 1099, of
276	276	the Deed Records of Travis County, Texas; or
277	277	(11) the property known as the Credit Union Department
278	278	Building described by deed recorded in Volume 6126, Page 27, of the
279	279	Deed Records of Travis County, Texas.
280	280	SECTION 9. Sections 12.103, 13.005, 13.008, 14.053, 14.060,
281	281	15.104, 15.207(c), 15.308, 15.408, and 156.101(b) and (c), Finance
282	282	Code, are repealed.
283	283	SECTION 10. To provide a reasonable period for each
284	284	financial regulatory agency, as defined by Section 16.001, Finance
285	285	Code, as added by this Act, to establish itself as a self-directed
286	286	and semi-independent agency, for the two-year period following the
287	287	effective date of this Act, each financial regulatory agency is
288	288	appropriated out of the general revenue fund an amount equal to 50
289	289	percent of the amount of general revenue appropriated to that
290	290	agency for the state fiscal year ending August 31, 2009. Subject to
291	291	Section 16.003, Finance Code, as added by this Act, this
292	292	appropriation may be spent as the financial regulatory agency
293	293	directs and shall be repaid to the general revenue fund by the
294	294	agency as funds become available.
295	295	SECTION 11. The transfer of a financial regulatory agency,
296	296	as defined by Section 16.001, Finance Code, as added by this Act, to
297	297	self-directed and semi-independent status under Chapter 16,
298	298	Finance Code, as added by this Act, and the expiration of
299	299	self-directed and semi-independent status may not act to cancel,
300	300	suspend, or prevent:
301	301	(1) any debt owed to or by the financial regulatory
302	302	agency;
303	303	(2) any fine, tax, penalty, or obligation of any
304	304	party;
305	305	(3) any contract or other obligation of any party; or
306	306	(4) any action taken by the financial regulatory
307	307	agency in the administration or enforcement of the agency's duties.
308	308	SECTION 12. Each financial regulatory agency, as defined by
309	309	Section 16.001, Finance Code, as added by this Act, shall continue
310	310	to have and exercise the powers and duties allocated to the agency
311	311	in the agency's enabling legislation, except as specifically
312	312	amended by this Act.
313	313	SECTION 13. Title to all supplies, materials, records,
314	314	equipment, books, papers, and facilities used by each financial
315	315	regulatory agency, as defined by Section 16.001, Finance Code, as
316	316	added by this Act, is transferred to each respective financial
317	317	regulatory agency in fee simple. Nothing in this Act shall have an
318	318	effect on property owned by a financial regulatory agency on or
319	319	before the effective date of this Act.
320	320	SECTION 14. If a conflict exists between this Act and
321	321	another Act of the 81st Legislature, Regular Session, 2009, that
322	322	relates to the self-directed and semi-independent status of a state
323	323	financial regulatory agency, this Act controls without regard to
324	324	the relative dates of the enactment.
325	325	SECTION 15. This Act takes effect September 1, 2009.