Bill Text: TX HB2493 | 2015-2016 | 84th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the self-directed and semi-independent status of the State Securities Board; authorizing fees.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Engrossed - Dead) 2015-05-25 - Placed on intent calendar [HB2493 Detail]
Download: Texas-2015-HB2493-Comm_Sub.html
Bill Title: Relating to the self-directed and semi-independent status of the State Securities Board; authorizing fees.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Engrossed - Dead) 2015-05-25 - Placed on intent calendar [HB2493 Detail]
Download: Texas-2015-HB2493-Comm_Sub.html
84R17585 DDT-F | |||
By: Parker, Capriglione | H.B. No. 2493 | ||
Substitute the following for H.B. No. 2493: | |||
By: Longoria | C.S.H.B. No. 2493 |
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relating to the self-directed and semi-independent status of the | ||
State Securities Board; authorizing fees. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. The Securities Act (Article 581-1 et seq., | ||
Vernon's Texas Civil Statutes) is amended by adding Sections 44, | ||
45, 46, 47, 48, 49, 50, 51, and 52 to read as follows: | ||
Sec. 44. SELF-DIRECTED AND SEMI-INDEPENDENT STATUS. A. | ||
Notwithstanding any other provision of law, the State Securities | ||
Board is self-directed and semi-independent as specified by this | ||
Act. Any Act of the 84th Legislature that relates to the Board and | ||
that is inconsistent with the agency being self-directed and | ||
semi-independent may be implemented by the Commissioner only on | ||
authorization by the members of the Board. | ||
B. Except as otherwise provided by this Act, the State | ||
Securities Board is subject to a provision of law that applies to | ||
state agencies, including: | ||
(1) state purchasing requirements under Subtitle D, | ||
Title 10, Government Code; | ||
(2) interagency transfer voucher requirements under | ||
Section 2155.327, Government Code; | ||
(3) travel requirements under Chapters 2171 and 2205, | ||
Government Code, using amounts provided by the General | ||
Appropriations Act to guide travel reimbursement rates; and | ||
(4) prompt payment requirements under Chapter 2251, | ||
Government Code. | ||
Sec. 45. BUDGET, REVENUES, AND EXPENSES. A. The | ||
Commissioner shall submit to the members of the Board an annual | ||
budget using generally accepted accounting principles. | ||
Notwithstanding any other provision of law, including the General | ||
Appropriations Act, the budget shall be adopted and approved only | ||
by the members of the Board. | ||
B. The State Securities Board is responsible for all direct | ||
and indirect costs of the agency's existence and operation. The | ||
agency may not directly or indirectly cause the general revenue | ||
fund to incur any cost. | ||
C. Subject to any limitations in this Act, the Board may set | ||
the amounts of the respective fees, penalties, charges, and | ||
revenues required or permitted by statute or rule as necessary to | ||
carry out the agency's functions and to fund the budget adopted and | ||
approved under Subsection A of this section. | ||
D. Periodically, the Commissioner shall submit to the | ||
members of the Board, as directed by the Board members, a report of | ||
the receipts and expenditures of the agency. | ||
E. The fiscal year for the agency begins on September 1 and | ||
ends on August 31. | ||
F. All fees and funds collected by the agency under | ||
Subsection A, Section 35, of this Act and any funds appropriated to | ||
the agency shall be deposited in interest-bearing deposit accounts | ||
in the Texas Treasury Safekeeping Trust Company to be used | ||
exclusively to pay costs incurred by the agency in administering | ||
this Act. The comptroller shall contract with the agency for the | ||
maintenance of the deposit accounts under terms comparable to a | ||
contract between a commercial banking institution and the | ||
institution's customers. The agency may not hold funds in an | ||
account that is not under the control of the comptroller. | ||
G. Except as provided by Subsection F of this section, all | ||
other money collected by the Commissioner or Board and any other | ||
funds belonging to or under the control of the Board shall be | ||
deposited into the general revenue fund. | ||
H. If the Commissioner or Board determines that all or part | ||
of a registration fee should be refunded, the refund shall be made | ||
by warrant on the state treasury from the fund into which the | ||
registration fee was deposited. | ||
I. The agency shall use the comptroller's uniform statewide | ||
accounting system under Chapter 2101, Government Code, to make all | ||
payments, other than direct payments from the agency's account to | ||
the Texas Treasury Safekeeping Trust Company. | ||
Sec. 46. RECORDS; REPORTING REQUIREMENTS. A. The | ||
Commissioner shall keep financial and statistical information as | ||
necessary to disclose completely and accurately the financial | ||
condition and operations of the agency. | ||
B. Before the beginning of each regular session of the | ||
legislature, the Commissioner shall submit to the legislature and | ||
the governor a report describing all of the agency's activities in | ||
the previous biennium. The report must include: | ||
(1) an audit; | ||
(2) a financial report of the two preceding fiscal | ||
years, including reports on financial condition and operations; | ||
(3) a description of all changes in fees imposed on | ||
regulated persons; | ||
(4) a report on changes in the regulatory jurisdiction | ||
of the Board; and | ||
(5) a list of all new rules adopted or repealed. | ||
C. In addition to the reporting requirements of Subsection B | ||
of this section, not later than November 1 of each year, the | ||
Commissioner shall submit to the governor, the committee of each | ||
house of the legislature that has jurisdiction over appropriations, | ||
and the Legislative Budget Board a report that contains: | ||
(1) the salary for Board employees and the total | ||
amount of per diem expenses and travel expenses paid for all Board | ||
employees, including trend performance data for the preceding five | ||
fiscal years; | ||
(2) the total amount of per diem expenses and travel | ||
expenses paid for each member of the Board, including trend | ||
performance data for the preceding five fiscal years; | ||
(3) the agency's operating plan covering a period of | ||
two fiscal years and operating budget, including revenues and a | ||
breakdown of expenditures by program and administrative expenses, | ||
showing: | ||
(a) projected budget data for a period of two | ||
fiscal years; and | ||
(b) trend performance data for the preceding five | ||
fiscal years regarding: | ||
(i) the number of full-time equivalent | ||
positions at the agency; | ||
(ii) the number of complaints received from | ||
the public and the number of complaints initiated by Board | ||
employees; | ||
(iii) the number of complaints dismissed | ||
and the number of complaints resolved by enforcement action; | ||
(iv) the number of enforcement actions by | ||
sanction type; | ||
(v) the number of enforcement cases closed | ||
through voluntary compliance; | ||
(vi) the amount of administrative penalties | ||
assessed and the rate of collection of assessed administrative | ||
penalties; | ||
(vii) the number of enforcement cases that | ||
allege a threat to public health, safety, or welfare or a violation | ||
of professional standards of care and the disposition of those | ||
cases; | ||
(viii) the average time to resolve a | ||
complaint; | ||
(ix) the number of license holders or | ||
regulated persons broken down by type of license and license | ||
status, including inactive status or retired status; | ||
(x) the fee charged to issue and renew each | ||
type of license, certificate, permit, or other similar | ||
authorization issued by the Commissioner under this Act; | ||
(xi) the average time to issue a license; | ||
(xii) litigation costs, broken down by | ||
administrative hearings, judicial proceedings, and outside counsel | ||
costs; and | ||
(xiii) reserve fund balances; and | ||
(4) a detailed report of all revenue received and all | ||
expenses incurred by the agency in the preceding 12 months. | ||
Sec. 47. ABILITY TO CONTRACT. A. To carry out and promote | ||
the objectives of this Act, the Commissioner may enter into | ||
contracts and do all other acts incidental to those contracts that | ||
are necessary for the administration of the agency's affairs and | ||
for the attainment of the agency's purposes, except as limited by | ||
Subsection B of this section. | ||
B. Any indebtedness, liability, or obligation of the agency | ||
incurred under this section may not: | ||
(1) create a debt or other liability of this state or | ||
another entity other than the agency; or | ||
(2) create any personal liability on the part of the | ||
members of the Board or the Board's employees. | ||
Sec. 48. PROPERTY. The Commissioner, on behalf of the | ||
agency, may: | ||
(1) acquire by purchase, lease, gift, or any other | ||
manner provided by law and maintain, use, and operate any real, | ||
personal, or mixed property, or any interest in property, necessary | ||
or convenient to the exercise of the powers, rights, privileges, or | ||
functions of the agency; | ||
(2) sell or otherwise dispose of any real, personal, | ||
or mixed property, or any interest in property, that the | ||
Commissioner determines is not necessary or convenient to the | ||
exercise of the agency's powers, rights, privileges, or functions; | ||
(3) construct, extend, improve, maintain, and | ||
reconstruct, or cause to construct, extend, improve, maintain, and | ||
reconstruct, and use and operate all facilities necessary or | ||
convenient to the exercise of the powers, rights, privileges, or | ||
functions of the agency; and | ||
(4) borrow money, as may be authorized from time to | ||
time by an affirmative vote of a three-fifths majority of the Board, | ||
for a period not to exceed five years if necessary or convenient to | ||
the exercise of the agency's powers, rights, privileges, or | ||
functions. | ||
Sec. 49. POST-PARTICIPATION LIABILITY. A. If the State | ||
Securities Board no longer has status under this Act as a | ||
self-directed semi-independent agency for any reason, the agency | ||
shall be liable for any expenses or debts incurred by the agency | ||
during the time the agency was a self-directed semi-independent | ||
agency. The agency's liability under this section includes | ||
liability for any lease entered into by the agency. This state is | ||
not liable for any expense or debt covered by this subsection, and | ||
money from the general revenue fund may not be used to repay the | ||
expense or debt. | ||
B. If the Board no longer has status under this Act as a | ||
self-directed semi-independent agency for any reason, ownership of | ||
any property or other asset acquired by the agency during the time | ||
the agency was a self-directed semi-independent agency, including | ||
unexpended fees in a deposit account in the Texas Treasury | ||
Safekeeping Trust Company, shall be transferred to this state. | ||
Sec. 50. DUE PROCESS; OPEN GOVERNMENT. The State Securities | ||
Board is: | ||
(1) a governmental body for purposes of Chapters 551 | ||
and 552, Government Code; and | ||
(2) a state agency for purposes of Chapters 2001 and | ||
2005, Government Code. | ||
Sec. 51. MEMBERSHIP IN EMPLOYEES RETIREMENT SYSTEM. | ||
Employees of the State Securities Board are members of the | ||
Employees Retirement System of Texas under Chapter 812, Government | ||
Code, and the Board's transition to independent status as provided | ||
by this Act has no effect on their membership or any benefits under | ||
that system. | ||
Sec. 52. GIFTS. A. Notwithstanding any other law, the | ||
Commissioner may not accept a gift, grant, or donation on behalf of | ||
the agency: | ||
(1) from a party to an enforcement action; or | ||
(2) to pursue a specific investigation or enforcement | ||
action. | ||
B. The Commissioner must: | ||
(1) report each gift, grant, or donation that the | ||
agency receives as a separate item in the agency's report required | ||
under Subsection B, Section 46, of this Act; and | ||
(2) include with the report a statement indicating the | ||
purpose for which each gift, grant, or donation was donated and | ||
used. | ||
SECTION 2. Subsections D, G, K, and O, Section 2, The | ||
Securities Act (Article 581-2, Vernon's Texas Civil Statutes), are | ||
amended to read as follows: | ||
D. Each member of the Board is entitled to reimbursement for | ||
travel expenses incurred [ |
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of the Board. | ||
The Governor shall designate a member of the Board as the | ||
presiding officer of the Board to serve in that capacity at the will | ||
of the Governor. A majority of the members shall constitute a quorum | ||
for the transaction of any business. | ||
G. The Board shall appoint a Securities Commissioner who | ||
serves at the pleasure of the Board and who shall, under the | ||
supervision of the Board, administer the provisions of this Act. | ||
The Board shall determine the Commissioner's salary. Each member of | ||
the Board shall have access to all offices and records under his | ||
supervision, and the Board, or a majority thereof, may exercise any | ||
power or perform any act authorized to the [ |
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Commissioner by the provisions of this Act. | ||
K. The Commissioner shall determine the number of Board | ||
employees and the employees' salaries. The Commissioner or his | ||
designee shall develop an intraagency career ladder program, one | ||
part of which shall be the intraagency posting of all nonentry level | ||
positions for at least ten (10) days before any public posting. The | ||
Commissioner or his designee shall develop a system of annual | ||
performance evaluations based on measurable job tasks. All merit | ||
pay for Board employees must be based on the system established | ||
under this section. | ||
O. The Sunset Advisory Commission shall examine the State | ||
Securities Board's performance as a self-directed and | ||
semi-independent agency as part of the commission's periodic review | ||
of the agency under [ |
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Chapter 325, Government Code (Texas Sunset Act). The agency shall | ||
pay the cost incurred by the commission in performing a review of | ||
the agency. The commission shall determine the cost and submit to | ||
the agency a statement detailing the cost. The agency shall pay the | ||
amount promptly after receiving the statement. Unless continued in | ||
existence as provided by that chapter, the State Securities Board | ||
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SECTION 3. Subsection C, Section 2-3, The Securities Act | ||
(Article 581-2-3, Vernon's Texas Civil Statutes), is amended to | ||
read as follows: | ||
C. A person appointed to the Board is entitled to | ||
reimbursement[ |
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the travel expenses incurred in attending the training program | ||
regardless of whether the attendance at the program occurs before | ||
or after the person qualifies for office. | ||
SECTION 4. Subsection A, Section 35, The Securities Act | ||
(Article 581-35, Vernon's Texas Civil Statutes), is amended to read | ||
as follows: | ||
A. The Board shall establish the following fees to produce | ||
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cover the costs of administering and enforcing this Act: | ||
(1) for the filing of any original, amended, or | ||
renewal application to sell or dispose of securities[ |
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(2) for the filing of any original application of a | ||
dealer or investment adviser or for the submission of a notice | ||
filing for a federal covered investment adviser[ |
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(3) for the filing of any renewal application of a | ||
dealer or investment adviser or for the submission of a renewal | ||
notice filing for a federal covered investment adviser[ |
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(4) for the filing of any original application for | ||
each agent, officer, or investment adviser representative or for | ||
the submission of a notice filing for each representative of a | ||
federal covered investment adviser[ |
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and | ||
(5) for the filing of any renewal application for each | ||
agent, officer, or investment adviser representative or for the | ||
submission of a renewal notice filing for each representative of a | ||
federal covered investment adviser[ |
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SECTION 5. The following provisions of The Securities Act | ||
(Article 581-l et seq., Vernon's Texas Civil Statutes) are | ||
repealed: | ||
(1) Subsections J and N, Section 2; | ||
(2) Subsections C and D, Section 35; and | ||
(3) Section 36. | ||
SECTION 6. Subject to Section 45, The Securities Act | ||
(Article 581-45, Vernon's Texas Civil Statutes), as added by this | ||
Act, the appropriations made by an Act of the 84th Legislature, | ||
Regular Session, 2015, may be spent by the State Securities Board as | ||
the Securities Commissioner directs. The board shall repay to the | ||
general revenue fund the appropriation made to the agency for the | ||
state fiscal year ending August 31, 2016, not later than that date | ||
and as funds become available. The board shall repay to the general | ||
revenue fund the appropriation made to the board for the state | ||
fiscal year ending August 31, 2017, not later than that date and as | ||
funds become available. | ||
SECTION 7. The transfer of the State Securities Board to | ||
self-directed and semi-independent status under this Act, and the | ||
expiration of self-directed and semi-independent status may not act | ||
to cancel, suspend, or prevent: | ||
(1) any debt owed to or by the State Securities Board; | ||
(2) any fine, tax, penalty, or obligation of any | ||
party; | ||
(3) any contract or other obligation of any party; or | ||
(4) any action taken by the State Securities Board, | ||
the Securities Commissioner, or the board's employees in the | ||
administration or enforcement of the agency's duties. | ||
SECTION 8. The State Securities Board shall continue to | ||
have and exercise the powers and duties allocated to the board in | ||
the board's enabling legislation, except as specifically amended by | ||
this Act. | ||
SECTION 9. Title to or ownership of all supplies, | ||
materials, records, equipment, books, papers, and furniture used by | ||
the State Securities Board is transferred to the State Securities | ||
Board in fee simple. This Act does not affect any property owned by | ||
the State Securities Board on or before the effective date of this | ||
Act. | ||
SECTION 10. Beginning September 1, 2015, the State | ||
Securities Board shall pay rent to this state in a reasonable amount | ||
to be determined by the Texas Facilities Commission for its use and | ||
occupancy of state-owned office space. | ||
SECTION 11. This Act takes effect September 1, 2015. |