CHAPTER 16. FINANCIAL REGULATORY AGENCIES: SELF-DIRECTED AND SEMI-INDEPENDENT
FINANCE CODE
TITLE 2. FINANCIAL REGULATORY AGENCIES
CHAPTER 16. FINANCIAL REGULATORY AGENCIES: SELF-DIRECTED AND
SEMI-INDEPENDENT
Sec. 16.001. DEFINITIONS. In this chapter:
(1) "Financial regulatory agency" means:
(A) the Texas Department of Banking;
(B) the Department of Savings and Mortgage Lending;
(C) the Office of Consumer Credit Commissioner; and
(D) the Credit Union Department.
(2) "Policy-making body" means:
(A) the Finance Commission of Texas for:
(i) the Texas Department of Banking;
(ii) the Department of Savings and Mortgage Lending; and
(iii) the Office of Consumer Credit Commissioner; and
(B) the Credit Union Commission for the Credit Union Department.
Added by Acts 2009, 81st Leg., R.S., Ch.
1317, Sec. 28(a), eff. September 1, 2009.
Sec. 16.002. SELF-DIRECTED AND SEMI-INDEPENDENT STATUS OF
FINANCIAL REGULATORY AGENCIES. Notwithstanding any other
provision of law, a financial regulatory agency is self-directed
and semi-independent as specified by this chapter. Any Act of
the 81st Legislature that relates to a financial regulatory
agency and that is inconsistent with the agency being
self-directed and semi-independent may be implemented by the
financial regulatory agency only on authorization by the
policy-making body of the financial regulatory agency.
Added by Acts 2009, 81st Leg., R.S., Ch.
1317, Sec. 28(a), eff. September 1, 2009.
Sec. 16.003. BUDGET, REVENUES, AND EXPENSES. (a) A financial
regulatory agency shall submit to the policy-making body of the
financial regulatory agency a budget annually 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 policy-making
body of the financial regulatory agency.
(b) A financial regulatory agency shall be responsible for all
direct and indirect costs of the agency's existence and
operation. The financial regulatory agency may not directly or
indirectly cause the general revenue fund to incur any cost.
(c) Subject to any limitations in a financial regulatory
agency's enabling legislation, a financial regulatory agency may
set the amounts of fees, penalties, charges, and revenues
required or permitted by statute or rule as necessary for the
purpose of carrying out the functions of the financial regulatory
agency and funding the budget adopted and approved under
Subsection (a).
(d) All fees and funds collected by a financial regulatory
agency and any funds appropriated to the financial regulatory
agency shall be deposited in interest-bearing deposit accounts in
the Texas Treasury Safekeeping Trust Company. The comptroller
shall contract with the financial regulatory agency for the
maintenance of the deposit accounts under terms comparable to a
contract between a commercial banking institution and the
institution's customers.
(e) Periodically, each financial regulatory agency shall submit
to the agency's policy-making body, as directed by the
policy-making body, a report of the receipts and expenditures of
the financial regulatory agency.
(f) The fiscal year for a financial regulatory agency begins on
September 1 and ends on August 31.
Added by Acts 2009, 81st Leg., R.S., Ch.
1317, Sec. 28(a), eff. September 1, 2009.
Sec. 16.004. AUDITS. This chapter does not affect the duty of
the state auditor to audit a financial regulatory agency. The
state auditor shall enter into a contract and schedule with each
financial regulatory agency to conduct audits, including
financial reports and performance audits. The financial
regulatory agency shall reimburse the state auditor for all costs
incurred in performing the audits and shall provide to the
governor a copy of any audit performed.
Added by Acts 2009, 81st Leg., R.S., Ch.
1317, Sec. 28(a), eff. September 1, 2009.
Sec. 16.005. RECORDS; REPORTING REQUIREMENTS. (a) A financial
regulatory agency shall keep financial and statistical
information as necessary to disclose completely and accurately
the financial condition and results of operations of the agency.
(b) Before the beginning of each regular session of the
legislature, each financial regulatory agency 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 as required by Section 16.004;
(2) a financial report of the previous fiscal year, including
reports on financial condition and results of operations;
(3) a description of all changes in fees imposed on regulated
industries;
(4) a report on changes in the regulatory jurisdiction of the
agency, including the number of chartered financial institutions,
license holders, and registrants subject to the agency's
jurisdiction and any changes in those figures; and
(5) a list of all new rules adopted or repealed.
(c) In addition to the reporting requirements of Subsection (b),
not later than November 1 of each year, each financial regulatory
agency 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 all financial regulatory agency personnel and
the total amount of per diem expenses and travel expenses paid
for all agency employees;
(2) the total amount of per diem expenses and travel expenses
paid for each member of the agency's policy-making body, provided
that only one report must be submitted regarding the Finance
Commission of Texas;
(3) the agency's operating plan and annual budget; and
(4) a detailed report of all revenue received and all expenses
incurred by the financial regulatory agency in the previous 12
months.
Added by Acts 2009, 81st Leg., R.S., Ch.
1317, Sec. 28(a), eff. September 1, 2009.
Sec. 16.006. ABILITY TO CONTRACT. (a) To carry out and promote
the objectives of this chapter, a financial regulatory agency 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).
(b) Any indebtedness, liability, or obligation of the financial
regulatory agency incurred under this section may not:
(1) create a debt or other liability of this state or another
entity other than the financial regulatory agency; or
(2) create any personal liability on the part of the members of
the policy-making body or the body's or agency's employees.
Added by Acts 2009, 81st Leg., R.S., Ch.
1317, Sec. 28(a), eff. September 1, 2009.
Sec. 16.007. PROPERTY. A financial regulatory 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 financial regulatory agency;
(2) sell or otherwise dispose of any real, personal, or mixed
property, or any interest in property, that the financial
regulatory agency 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
financial regulatory agency; and
(4) borrow money, as may be authorized from time to time by an
affirmative vote of a two-thirds majority of the policy-making
body of the financial regulatory agency, for a period not to
exceed five years if necessary or convenient to the exercise of
the financial regulatory agency's powers, rights, privileges, or
functions.
Added by Acts 2009, 81st Leg., R.S., Ch.
1317, Sec. 28(a), eff. September 1, 2009.
Sec. 16.008. SUITS. The office of the attorney general shall
represent a financial regulatory agency in any litigation. The
attorney general may assess and collect from the financial
regulatory agency reasonable attorney's fees associated with any
litigation under this section.
Added by Acts 2009, 81st Leg., R.S., Ch.
1317, Sec. 28(a), eff. September 1, 2009.
Sec. 16.009. POST-PARTICIPATION LIABILITY. (a) If a financial
regulatory agency no longer has status under this chapter as a
self-directed semi-independent financial regulatory 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 financial regulatory 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 a financial regulatory agency no longer has status under
this chapter as a self-directed semi-independent financial
regulatory 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 financial regulatory agency,
including unexpended fees in a deposit account in the Texas
Treasury Safekeeping Trust Company, shall be transferred to this
state.
Added by Acts 2009, 81st Leg., R.S., Ch.
1317, Sec. 28(a), eff. September 1, 2009.
Sec. 16.010. DUE PROCESS; OPEN GOVERNMENT. A financial
regulatory agency 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.
Added by Acts 2009, 81st Leg., R.S., Ch.
1317, Sec. 28(a), eff. September 1, 2009.
Sec. 16.011. MEMBERSHIP IN EMPLOYEES RETIREMENT SYSTEM.
Employees of the financial regulatory agencies are members of the
Employees Retirement System of Texas under Chapter 812,
Government Code, and the agencies' transition to independent
status as provided by this chapter has no effect on their
membership or any benefits under that system.
Added by Acts 2009, 81st Leg., R.S., Ch.
1317, Sec. 28(a), eff. September 1, 2009.
Sec. 16.012. GIFTS. (a) Notwithstanding any other law, a
financial regulatory agency may not accept a gift, grant, or
donation:
(1) from a party to an enforcement action; or
(2) to pursue a specific investigation or enforcement action.
(b) A financial regulatory agency must:
(1) report each gift, grant, or donation that the agency
receives as a separate item in the agency's report required under
Section 16.005(b); and
(2) include with the report a statement indicating the purpose
for which each gift, grant, or donation was donated and used.
Added by Acts 2009, 81st Leg., R.S., Ch.
1317, Sec. 28(a), eff. September 1, 2009.