TO: | Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | HB3870 by Darby ( relating to self-directed and semi-independent status of state financial regulatory agencies; making an appropriation.), Committee Report 1st House, Substituted |
Fiscal Year | Appropriation out of General Revenue Fund 1 |
---|---|
2010 | $15,809,000 |
2011 | $15,809,000 |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2010 | ($15,809,000) |
2011 | ($15,809,000) |
2012 | $0 |
2013 | $0 |
2014 | $0 |
Fiscal Year | Probable Revenue Gain/(Loss) from General Revenue Fund 1 |
Probable Savings from General Revenue Fund 1 |
Probable (Cost) from General Revenue Fund 1 |
Probable Revenue Gain from new interest-bearing deposit accounts in the Texas Treasury Safekeeping Trust Company |
---|---|---|---|---|
2010 | ($27,398,000) | $27,398,000 | ($15,809,000) | $27,398,000 |
2011 | ($27,768,000) | $27,768,000 | ($15,809,000) | $27,768,000 |
2012 | ($27,803,000) | $27,803,000 | $27,803,000 | |
2013 | ($27,803,000) | $27,803,000 | $27,803,000 | |
2014 | ($27,803,000) | $27,803,000 | $27,803,000 |
Fiscal Year | Probable (Cost) from new interest-bearing deposit accounts in the Texas Treasury Safekeeping Trust Company |
Change in Number of State Employees from FY 2009 |
---|---|---|
2010 | ($27,398,000) | (444.5) |
2011 | ($27,768,000) | (444.5) |
2012 | ($27,803,000) | (444.5) |
2013 | ($27,803,000) | (444.5) |
2014 | ($27,803,000) | (444.5) |
The bill would add Chapter 16 to the Finance Code and repeal sections of the Finance Code under Chapters 12, 13, 14, 15, and 156. The bill would allow the Department of Banking (DOB), Office of Consumer Credit Commissioner (OCCC), Department of Savings and Mortgage Lending (SML), and the Credit Union Department (CUD), to become self-directed and semi-independent agencies. All fees and funds collected by an agency would be deposited into an interest-bearing deposit account in the Texas Treasury Safekeeping Trust Company. The Comptroller of Public Accounts (CPA) would be directed to contract with the financial agencies for the maintenance of the deposit accounts. If the financial agencies lost status as self-directed and semi-independent, the agencies would be responsible for any expenses or debts incurred during the time the agencies were classified as self-directed and semi-independent.
The bill would remove the agencies from the legislative budgeting process, and the budget would be adopted and approved only by the policy-making body of the respective agency. On the first day of each regular legislative session, each agency would be required to submit a report to the Legislature and the Governor describing all of the agency's activities in the previous biennium. In addition, the agency would be required to report its two year expenses and revenue collections by November 1 of each year to the Legislature, the Legislative Budget Board, and the Governor. Employees of the agencies would remain members of the Employees Retirement System of Texas under Chapter 812 of the Government Code.
The bill would require the State Auditor to contract with each agency to conduct financial and performance audits and would allow the Attorney General to collect fees from the agencies for legal services. The bill would also transfer all supplies, materials, records, equipment, and facilities used by each agency, including the Finance Commission Building and the Credit Union Department Building, to the Finance Commission and the Credit Union Commission.
The bill would make an appropriation of an amount equal to 50 percent of the amount of the General Revenue appropriated to each agency for fiscal year 2009 for a two-year period beginning fiscal year 2010. Under the provisions of the bill, the amount could be spent as the agency directs and would be repaid to the General Revenue Fund as funds become available.
The bill would take effect September 1, 2009.
Source Agencies: | 304 Comptroller of Public Accounts, 450 Department of Savings and Mortgage Lending, 451 Department of Banking, 466 Office of Consumer Credit Commissioner, 469 Credit Union Department
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LBB Staff: | JOB, JRO, MW, ACa
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