Texas 2025 - 89th Regular

Texas Senate Bill SB440 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R919 MLH-F
2	2	By: Hinojosa of Hidalgo S.B. No. 440
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to audits of and reports by self-directed and
10	10	semi-independent financial regulatory agencies.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 16.004, Finance Code, is amended to read
13	13	as follows:
14	14	Sec. 16.004. AUDITS. (a) This chapter does not affect the
15	15	duty of the state auditor to audit a financial regulatory agency.
16	16	The state auditor shall enter into a contract and schedule with each
17	17	financial regulatory agency to conduct audits, including a
18	18	financial audit, an effectiveness audit, [reports] and a
19	19	performance audit at least once every six years, unless the state
20	20	auditor determines that the auditor may rely on an independent
21	21	audit of the agency conducted during the same period [audits].
22	22	(b) The state auditor may conduct a risk-based audit of a
23	23	financial regulatory agency at any time.
24	24	(c) The financial regulatory agency shall reimburse the
25	25	state auditor for all costs incurred in performing the audits and
26	26	shall provide to the governor a copy of any audit performed.
27	27	SECTION 2. Sections 16.005(b) and (c), Finance Code, are
28	28	amended to read as follows:
29	29	(b) Before the beginning of each regular session of the
30	30	legislature, each financial regulatory agency shall submit to the
31	31	legislature and the governor a report describing all of the
32	32	agency's activities in the previous biennium. The report must
33	33	include:
34	34	(1) an audit as required by Section 16.004;
35	35	(2) a financial report of the previous fiscal year,
36	36	including reports on financial condition and results of operations;
37	37	(3) a description of all changes in fees imposed on
38	38	regulated entities, broken down by industry [industries];
39	39	(4) a report on:
40	40	(A) changes in the regulatory jurisdiction of the
41	41	agency, including the number of chartered financial institutions,
42	42	license holders, and registrants subject to the agency's
43	43	jurisdiction and any changes in those figures; and
44	44	(B) any enforcement activities by the agency; and
45	45	(5) a description [list] of all new rules adopted or
46	46	repealed.
47	47	(c) In addition to the reporting requirements of Subsection
48	48	(b), not later than November 1 of each year, each financial
49	49	regulatory agency shall submit to the governor, the committee of
50	50	each house of the legislature that has jurisdiction over
51	51	appropriations, and the Legislative Budget Board a report that
52	52	contains:
53	53	(1) the salary for all financial regulatory agency
54	54	personnel and the total amount of per diem expenses and travel
55	55	expenses paid for all agency employees;
56	56	(2) the total amount of per diem expenses and travel
57	57	expenses paid for each member of the agency's policy-making body [,
58	58	provided that only one report must be submitted regarding the
59	59	Finance Commission of Texas];
60	60	(2-a) trend performance data relating to Subdivisions
61	61	(1) and (2) for the preceding five fiscal years;
62	62	(3) the agency's operating plan for a period of two
63	63	fiscal years [and annual budget]; [and]
64	64	(4) the agency's operating budget that includes:
65	65	(A) revenues from all sources; and
66	66	(B) an accounting of all expenditures, including
67	67	a breakdown of expenditures by program and administrative expenses,
68	68	showing:
69	69	(i) projected budget data for a period of
70	70	two fiscal years; and
71	71	(ii) trend budget performance data for the
72	72	preceding five fiscal years; and
73	73	(5) trend performance data for the preceding five
74	74	fiscal years regarding:
75	75	(A) the number of full-time equivalent positions
76	76	at the agency;
77	77	(B) the number of complaints received from the
78	78	public and the number of complaints initiated by agency staff;
79	79	(C) the number of complaints dismissed and the
80	80	number of complaints resolved by enforcement action;
81	81	(D) the number of enforcement actions, by
82	82	sanction type;
83	83	(E) the number of enforcement cases closed
84	84	through voluntary compliance;
85	85	(F) the amount of each administrative penalty
86	86	assessed, broken down by sanction type;
87	87	(G) the amount of each administrative penalty
88	88	collected, broken down by sanction type;
89	89	(H) the total amount of administrative penalties
90	90	assessed and the rate of collection of assessed administrative
91	91	penalties;
92	92	(I) the number of enforcement cases that allege a
93	93	threat to public health, safety, or welfare or a violation of
94	94	professional standards of care and the disposition of those cases;
95	95	(J) the average time to resolve a complaint;
96	96	(K) the number of entities regulated by the
97	97	agency;
98	98	(L) the number of license holders or regulated
99	99	persons, broken down by type of license and license status,
100	100	including inactive status or retired status;
101	101	(M) the fee charged to issue and renew each type
102	102	of license, certificate, permit, or other similar authorization
103	103	issued by the agency;
104	104	(N) any assessments paid to the agency by the
105	105	holder of a license, certificate, permit, or other similar
106	106	authorization issued by the agency;
107	107	(O) the average time to issue a license,
108	108	certificate, permit, or other similar authorization issued by the
109	109	agency;
110	110	(P) litigation costs, broken down by
111	111	administrative hearings, judicial proceedings, and outside counsel
112	112	costs;
113	113	(Q) reserve fund balances; and
114	114	(R) the key performance measures approved by the
115	115	governing board of the agency during the fiscal year for which the
116	116	report is due [a detailed report of all revenue received and all
117	117	expenses incurred by the financial regulatory agency in the
118	118	previous 12 months].
119	119	SECTION 3. Section 16.005, Finance Code, as amended by this
120	120	Act, applies only to a report originally due on or after the
121	121	effective date of this Act. A report originally due before the
122	122	effective date of this Act is governed by the law in effect on the
123	123	date the report was originally due, and the former law is continued
124	124	in effect for that purpose.
125	125	SECTION 4. This Act takes effect September 1, 2025.