Texas 2009 - 81st Regular

Texas Senate Bill SB2238 Compare Versions

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1	1	By: Zaffirini S.B. No. 2238
2	2	(In the Senate - Filed March 13, 2009; March 31, 2009, read
3	3	first time and referred to Committee on Business and Commerce;
4	4	May 18, 2009, reported adversely, with favorable Committee
5	5	Substitute by the following vote: Yeas 6, Nays 0; May 18, 2009,
6	6	sent to printer.)
7	7	COMMITTEE SUBSTITUTE FOR S.B. No. 2238 By: Lucio
8	8
9	9
10	10	A BILL TO BE ENTITLED
11	11	AN ACT
12	12	relating to self-directed and semi-independent status of state
13	13	financial regulatory agencies; making an appropriation.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. Title 2, Finance Code, is amended by adding
16	16	Chapter 16 to read as follows:
17	17	CHAPTER 16. FINANCIAL REGULATORY AGENCIES: SELF-DIRECTED AND
18	18	SEMI-INDEPENDENT
19	19	Sec. 16.001. DEFINITIONS. In this chapter:
20	20	(1) "Financial regulatory agency" means:
21	21	(A) the Texas Department of Banking;
22	22	(B) the Department of Savings and Mortgage
23	23	Lending;
24	24	(C) the Office of Consumer Credit Commissioner;
25	25	and
26	26	(D) the credit union department.
27	27	(2) "Policy-making body" means:
28	28	(A) the Finance Commission of Texas for:
29	29	(i) the Texas Department of Banking;
30	30	(ii) the Department of Savings and Mortgage
31	31	Lending; and
32	32	(iii) the Office of Consumer Credit
33	33	Commissioner; and
34	34	(B) the Credit Union Commission for the credit
35	35	union department.
36	36	Sec. 16.002. SELF-DIRECTED AND SEMI-INDEPENDENT STATUS OF
37	37	FINANCIAL REGULATORY AGENCIES. Notwithstanding any other
38	38	provision of law, a financial regulatory agency is self-directed
39	39	and semi-independent as specified by this chapter. Any Act of the
40	40	81st Legislature that relates to a financial regulatory agency and
41	41	that is inconsistent with the agency being self-directed and
42	42	semi-independent may be implemented by the financial regulatory
43	43	agency only on authorization by the policy-making body of the
44	44	financial regulatory agency.
45	45	Sec. 16.003. BUDGET, REVENUES, AND EXPENSES. (a) A
46	46	financial regulatory agency shall submit to the policy-making body
47	47	of the financial regulatory agency a budget annually using
48	48	generally accepted accounting principles. Notwithstanding any
49	49	other provision of law, including the General Appropriations Act,
50	50	the budget shall be adopted and approved only by the policy-making
51	51	body of the financial regulatory agency.
52	52	(b) A financial regulatory agency shall be responsible for
53	53	all direct and indirect costs of the agency's existence and
54	54	operation. The financial regulatory agency may not directly or
55	55	indirectly cause the general revenue fund to incur any cost.
56	56	(c) Subject to any limitations in a financial regulatory
57	57	agency's enabling legislation, a financial regulatory agency may
58	58	set the amounts of fees, penalties, charges, and revenues required
59	59	or permitted by statute or rule as necessary for the purpose of
60	60	carrying out the functions of the financial regulatory agency and
61	61	funding the budget adopted and approved under Subsection (a).
62	62	(d) All fees and funds collected by a financial regulatory
63	63	agency and any funds appropriated to the financial regulatory
64	64	agency shall be deposited in interest-bearing deposit accounts in
65	65	the Texas Treasury Safekeeping Trust Company. The comptroller
66	66	shall contract with the financial regulatory agency for the
67	67	maintenance of the deposit accounts under terms comparable to a
68	68	contract between a commercial banking institution and the
69	69	institution's customers.
70	70	(e) Periodically, each financial regulatory agency shall
71	71	submit to the agency's policy-making body, as directed by the
72	72	policy-making body, a report of the receipts and expenditures of
73	73	the financial regulatory agency.
74	74	(f) The fiscal year for a financial regulatory agency begins
75	75	on September 1 and ends on August 31.
76	76	Sec. 16.004. AUDITS. This chapter does not affect the duty
77	77	of the state auditor to audit a financial regulatory agency. The
78	78	state auditor shall enter into a contract and schedule with each
79	79	financial regulatory agency to conduct audits, including financial
80	80	reports and performance audits. The financial regulatory agency
81	81	shall reimburse the state auditor for all costs incurred in
82	82	performing the audits and shall provide to the governor a copy of
83	83	any audit performed.
84	84	Sec. 16.005. RECORDS; REPORTING REQUIREMENTS. (a) A
85	85	financial regulatory agency shall keep financial and statistical
86	86	information as necessary to disclose completely and accurately the
87	87	financial condition and results of operations of the agency.
88	88	(b) Before the beginning of each regular session of the
89	89	legislature, each financial regulatory agency shall submit to the
90	90	legislature and the governor a report describing all of the
91	91	agency's activities in the previous biennium. The report must
92	92	include:
93	93	(1) an audit as required by Section 16.004;
94	94	(2) a financial report of the previous fiscal year,
95	95	including reports on financial condition and results of operations;
96	96	(3) a description of all changes in fees imposed on
97	97	regulated industries;
98	98	(4) a report on changes in the regulatory jurisdiction
99	99	of the agency, including the number of chartered financial
100	100	institutions, license holders, and registrants subject to the
101	101	agency's jurisdiction and any changes in those figures; and
102	102	(5) a list of all new rules adopted or repealed.
103	103	(c) In addition to the reporting requirements of Subsection
104	104	(b), not later than November 1 of each year, each financial
105	105	regulatory agency shall submit to the governor, the committee of
106	106	each house of the legislature that has jurisdiction over
107	107	appropriations, and the Legislative Budget Board a report that
108	108	contains:
109	109	(1) the salary for all financial regulatory agency
110	110	personnel and the total amount of per diem expenses and travel
111	111	expenses paid for all agency employees;
112	112	(2) the total amount of per diem expenses and travel
113	113	expenses paid for each member of the agency's policy-making body,
114	114	provided that only one report must be submitted regarding the
115	115	Finance Commission of Texas;
116	116	(3) the agency's operating plan and annual budget; and
117	117	(4) a detailed report of all revenue received and all
118	118	expenses incurred by the financial regulatory agency in the
119	119	previous 12 months.
120	120	Sec. 16.006. ABILITY TO CONTRACT. (a) To carry out and
121	121	promote the objectives of this chapter, a financial regulatory
122	122	agency may enter into contracts and do all other acts incidental to
123	123	those contracts that are necessary for the administration of the
124	124	agency's affairs and for the attainment of the agency's purposes,
125	125	except as limited by Subsection (b).
126	126	(b) Any indebtedness, liability, or obligation of the
127	127	financial regulatory agency incurred under this section may not:
128	128	(1) create a debt or other liability of this state or
129	129	another entity other than the financial regulatory agency; or
130	130	(2) create any personal liability on the part of the
131	131	members of the policy-making body or the body's or agency's
132	132	employees.
133	133	Sec. 16.007. PROPERTY. A financial regulatory agency may:
134	134	(1) acquire by purchase, lease, gift, or any other
135	135	manner provided by law and maintain, use, and operate any real,
136	136	personal, or mixed property, or any interest in property, necessary
137	137	or convenient to the exercise of the powers, rights, privileges, or
138	138	functions of the financial regulatory agency;
139	139	(2) sell or otherwise dispose of any real, personal,
140	140	or mixed property, or any interest in property, that the financial
141	141	regulatory agency determines is not necessary or convenient to the
142	142	exercise of the agency's powers, rights, privileges, or functions;
143	143	(3) construct, extend, improve, maintain, and
144	144	reconstruct, or cause to construct, extend, improve, maintain, and
145	145	reconstruct, and use and operate all facilities necessary or
146	146	convenient to the exercise of the powers, rights, privileges, or
147	147	functions of the financial regulatory agency; and
148	148	(4) borrow money, as may be authorized from time to
149	149	time by an affirmative vote of a two-thirds majority of the
150	150	policy-making body of the financial regulatory agency, for a period
151	151	not to exceed five years if necessary or convenient to the exercise
152	152	of the financial regulatory agency's powers, rights, privileges, or
153	153	functions.
154	154	Sec. 16.008. SUITS. The office of the attorney general
155	155	shall represent a financial regulatory agency in any litigation.
156	156	The attorney general may assess and collect from the financial
157	157	regulatory agency reasonable attorney's fees associated with any
158	158	litigation under this section.
159	159	Sec. 16.009. POST-PARTICIPATION LIABILITY. (a) If a
160	160	financial regulatory agency no longer has status under this chapter
161	161	as a self-directed, semi-independent financial regulatory agency
162	162	for any reason, the agency shall be liable for any expenses or debts
163	163	incurred by the agency during the time the agency was a
164	164	self-directed, semi-independent financial regulatory agency. The
165	165	agency's liability under this section includes liability for any
166	166	lease entered into by the agency. This state is not liable for any
167	167	expense or debt covered by this subsection, and money from the
168	168	general revenue fund may not be used to repay the expense or debt.
169	169	(b) If a financial regulatory agency no longer has status
170	170	under this chapter as a self-directed, semi-independent financial
171	171	regulatory agency for any reason, ownership of any property or
172	172	other asset acquired by the agency during the time the agency was a
173	173	self-directed, semi-independent financial regulatory agency,
174	174	including unexpended fees in a deposit account in the Texas
175	175	Treasury Safekeeping Trust Company, shall be transferred to this
176	176	state.
177	177	Sec. 16.010. DUE PROCESS; OPEN GOVERNMENT. A financial
178	178	regulatory agency is:
179	179	(1) a governmental body for purposes of Chapters 551
180	180	and 552, Government Code; and
181	181	(2) a state agency for purposes of Chapters 2001 and
182	182	2005, Government Code.
183	183	Sec. 16.011. MEMBERSHIP IN EMPLOYEES RETIREMENT SYSTEM.
184	184	Employees of the financial regulatory agencies are members of the
185	185	Employees Retirement System of Texas under Chapter 812, Government
186	186	Code, and the agencies' transition to independent status as
187	187	provided by this chapter has no effect on their membership or any
188	188	benefits under that system.
189	189	Sec. 16.012. GIFTS. (a) Notwithstanding any other law, a
190	190	financial regulatory agency may not accept a gift, grant, or
191	191	donation:
192	192	(1) from a party to an enforcement action; or
193	193	(2) to pursue a specific investigation or enforcement
194	194	action.
195	195	(b) A financial regulatory agency must:
196	196	(1) report each gift, grant, or donation that the
197	197	agency receives as a separate item in the agency's report required
198	198	under Section 16.005(b); and
199	199	(2) include with the report a statement indicating the
200	200	purpose for which each gift, grant, or donation was donated and
201	201	used.
202	202	SECTION 2. Section 11.104, Finance Code, is amended to read
203	203	as follows:
204	204	Sec. 11.104. EXPENSES AND COMPENSATION OF MEMBERS. A
205	205	member of the finance commission is entitled to:
206	206	(1) the reimbursement for reasonable and necessary
207	207	expenses incidental to travel incurred in connection with the
208	208	performance of official duties; and
209	209	(2) a per diem [as set by legislative appropriation]
210	210	for each day that the member engages in the business of the finance
211	211	commission.
212	212	SECTION 3. Subsection (c), Section 11.110, Finance Code, is
213	213	amended to read as follows:
214	214	(c) A person appointed to the finance commission is entitled
215	215	to reimbursement under Section 11.104, as if the person were a
216	216	member of the finance commission, [as provided by the General
217	217	Appropriations Act,] for the travel expenses incurred in attending
218	218	the training program regardless of whether the attendance at the
219	219	program occurs before or after the person qualifies for office.
220	220	SECTION 4. Section 11.204, Finance Code, is amended by
221	221	adding Subsection (c) to read as follows:
222	222	(c) The finance commission shall have charge and control of
223	223	the property known as the Finance Commission Building and use of
224	224	staff, equipment, and facilities of the finance agencies. The
225	225	Finance Commission Building refers to the property located in the
226	226	city of Austin and titled in the name of the Banking Section of the
227	227	Finance Commission of Texas, as described by deed recorded in
228	228	Volume 5080, Page 1099, of the Deed Records of Travis County, Texas.
229	229	SECTION 5. Subsection (c), Section 15.2041, Finance Code,
230	230	is amended to read as follows:
231	231	(c) A person appointed to the commission is entitled to
232	232	reimbursement under Section 15.207, as if the person were a member
233	233	of the commission, for travel expenses incurred in attending the
234	234	training program, regardless of whether the attendance at the
235	235	program occurs before or after the person qualifies for office[, as
236	236	provided by the General Appropriations Act and as if the person were
237	237	a member of the commission].
238	238	SECTION 6. Subchapter E, Chapter 15, Finance Code, is
239	239	amended by adding Section 15.4011 to read as follows:
240	240	Sec. 15.4011. CREDIT UNION DEPARTMENT BUILDING. The
241	241	commission shall have charge and control of the property known as
242	242	the Credit Union Department Building and use of staff, equipment,
243	243	and facilities of the department. The Credit Union Department
244	244	Building refers to the property located in the city of Austin and
245	245	titled in the name of the State of Texas for the use and benefit of
246	246	the credit union department, as described by deed recorded in
247	247	Volume 6126, Page 27, of the Deed Records of Travis County, Texas.
248	248	SECTION 7. Subsection (a), Section 156.101, Finance Code,
249	249	is amended to read as follows:
250	250	(a) The commissioner shall administer and enforce this
251	251	chapter.
252	252	SECTION 8. Subsection (b), Section 2165.007, Government
253	253	Code, is amended to read as follows:
254	254	(b) Notwithstanding any other law, the commission shall
255	255	provide facilities management services in relation to all state
256	256	agency facilities in Travis County or a county adjacent to Travis
257	257	County. The commission's duty does not apply to:
258	258	(1) a facility owned or operated by an institution of
259	259	higher education;
260	260	(2) military facilities;
261	261	(3) facilities owned or operated by the Texas
262	262	Department of Criminal Justice;
263	263	(4) facilities owned or operated by the Texas Youth
264	264	Commission;
265	265	(5) facilities owned or operated by the Texas
266	266	Department of Transportation;
267	267	(6) the Capitol, including the Capitol Extension, the
268	268	General Land Office building, the Bob Bullock Texas State History
269	269	Museum, any museum located on the Capitol grounds, the Governor's
270	270	Mansion, and any property maintained by the Texas Historical
271	271	Commission under Sections 442.0072 and 442.0073;
272	272	(7) a facility determined by the commission to be
273	273	completely residential;
274	274	(8) a regional or field office of a state agency; [or]
275	275	(9) a facility located within or on state park
276	276	property;
277	277	(10) the property known as the Finance Commission
278	278	Building described by deed recorded in Volume 5080, Page 1099, of
279	279	the Deed Records of Travis County, Texas; or
280	280	(11) the property known as the Credit Union Department
281	281	Building described by deed recorded in Volume 6126, Page 27, of the
282	282	Deed Records of Travis County, Texas.
283	283	SECTION 9. The following provisions of the Finance Code are
284	284	repealed:
285	285	(1) Sections 12.103, 13.005, 13.008, 14.053, 14.060,
286	286	and 15.104;
287	287	(2) Subsection (c), Section 15.207;
288	288	(3) Sections 15.308 and 15.408; and
289	289	(4) Subsections (b) and (c), Section 156.101.
290	290	SECTION 10. To provide a reasonable period for each
291	291	financial regulatory agency, as defined by Section 16.001, Finance
292	292	Code, as added by this Act, to establish itself as a self-directed
293	293	and semi-independent agency, for the two-year period following the
294	294	effective date of this Act, each financial regulatory agency is
295	295	appropriated out of the general revenue fund an amount equal to 50
296	296	percent of the amount of general revenue appropriated to that
297	297	agency for the state fiscal year ending August 31, 2009. Subject to
298	298	Section 16.003, Finance Code, as added by this Act, this
299	299	appropriation may be spent as the financial regulatory agency
300	300	directs and shall be repaid to the general revenue fund by the
301	301	agency as funds become available.
302	302	SECTION 11. The transfer of a financial regulatory agency,
303	303	as defined by Section 16.001, Finance Code, as added by this Act, to
304	304	self-directed and semi-independent status under Chapter 16,
305	305	Finance Code, as added by this Act, and the expiration of
306	306	self-directed and semi-independent status may not act to cancel,
307	307	suspend, or prevent:
308	308	(1) any debt owed to or by the financial regulatory
309	309	agency;
310	310	(2) any fine, tax, penalty, or obligation of any
311	311	party;
312	312	(3) any contract or other obligation of any party; or
313	313	(4) any action taken by the financial regulatory
314	314	agency in the administration or enforcement of the agency's duties.
315	315	SECTION 12. Each financial regulatory agency, as defined by
316	316	Section 16.001, Finance Code, as added by this Act, shall continue
317	317	to have and exercise the powers and duties allocated to the agency
318	318	in the agency's enabling legislation, except as specifically
319	319	amended by this Act.
320	320	SECTION 13. Title to all supplies, materials, records,
321	321	equipment, books, papers, and facilities used by each financial
322	322	regulatory agency, as defined by Section 16.001, Finance Code, as
323	323	added by this Act, is transferred to each respective financial
324	324	regulatory agency in fee simple. Nothing in this Act shall have an
325	325	effect on property owned by a financial regulatory agency on or
326	326	before the effective date of this Act.
327	327	SECTION 14. If a conflict exists between this Act and
328	328	another Act of the 81st Legislature, Regular Session, 2009, that
329	329	relates to the self-directed and semi-independent status of a state
330	330	financial regulatory agency, this Act controls without regard to
331	331	the relative dates of the enactment.
332	332	SECTION 15. This Act takes effect September 1, 2009.
333	333	* * * * *