By: Parker	H.B. No. 2493

	A BILL TO BE ENTITLED
	AN ACT
	relating to self-directed and semi-independent status of the State
	Securities Board.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.1.  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 The Securities Act. Any Act of the 84th Legislature
	that relates to the agency and that is inconsistent with the agency
	being self-directed and semi-independent may be implemented by the
	Commissioner only on authorization by 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 Board 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 Board.
	(b)  The State Securities Board shall be 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 for
	the purpose of carrying out the functions of the agency and funding
	the budget adopted and approved under Subsection (a).
	(d)  Periodically, the Commissioner shall submit to the
	Board, as directed by the Board, 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 Section
	35.A 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 State Securities Board in administering The
	Securities 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 in subsection (f) of this section,
	all other monies collected by the State Securities Board and any
	other funds belonging to or under the control of the State
	Securities 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 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 results of 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 previous fiscal year,
	including reports on financial condition and results of operations;
	(3)  a description of all changes in fees imposed on
	regulated persons;
	(4)  a report on changes in the regulatory jurisdiction
	of the agency; 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, 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 agency personnel and the total
	amount of per diem expenses and travel expenses paid for all agency
	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:
	(1)  the number of full-time equivalent
	positions at the agency;
	(2)  the number of complaints received from
	the public and the number of complaints initiated by agency staff;
	(3)  the number of complaints dismissed and
	the number of complaints resolved by enforcement action;
	(4)  the number of enforcement actions by
	sanction type;
	(5)  the number of enforcement cases closed
	through voluntary compliance;
	(6)  the amount of administrative penalties
	assessed and the rate of collection of assessed administrative
	penalties;
	(7)  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;
	(8)  the average time to resolve a
	complaint;
	(9)  the number of license holders or
	regulated persons broken down by type of license and license
	status, including inactive status or retired status;
	(10)  the fee charged to issue and renew each
	type of license, certificate, permit, or other similar
	authorization issued by the agency;
	(11)  the average time to issue a license;
	(12)  litigation costs, broken down by
	administrative hearings, judicial proceedings, and outside counsel
	costs; and
	(13)  reserve fund balances; and
	(4)  a detailed report of all revenue received and all
	expenses incurred by the agency in the previous 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).
	(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 agency's employees.
	Sec. 48.  PROPERTY. 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 agency no longer has status under The Securities
	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 agency no longer has status under The Securities
	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 State Securities 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 Section 47(b); and
	(2)  include with the report a statement indicating the
	purpose for which each gift, grant, or donation was donated and
	used.
	SECTION 1.2.  Section 2, The Securities Act (Article 581-2,
	Vernon's Texas Civil Statutes), is amended by amending Subsections
	D, G, K, and O to read as follows:
	D.  Each member of the Board is entitled to reimbursement for
	the travel expenses incurred per diem as set by legislative
	appropriation for each day that the member engages in the business
	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 salary of the Securities
	Commissioner. 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 Securities Commissioner by the provisions of this
	Act.
	K.  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. The
	Commissioner shall determine the number of Board employees and the
	salaries of those employees.
	O.  The State Securities Board is subject to Chapter 325,
	Government Code (Texas Sunset Act). Unless continued in existence
	as provided by that chapter, the board is abolished and this Act
	expires September 1, 2019. The Sunset Advisory Commission shall
	examine the agency's performance as a self-directed and
	semi-independent agency as part of the commission's periodic review
	of the agency under Chapter 325, Government Code (Texas Sunset
	Act). The agency shall pay the cost incurred by the Sunset Advisory
	Commission in performing a review of the agency under the agency's
	enabling legislation. The Sunset Advisory Commission shall
	determine the cost, and the agency shall pay the amount promptly on
	receipt of a statement from the Sunset Advisory Commission
	detailing the cost.
	SECTION 1.3.  Subsection C of 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, as provided by the General Appropriations Act, for
	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 1.4.  Subsection A of 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
	in amounts so that the aggregate amount that exceeds the amount of
	the fees on September 1, 2002, produces sufficient revenue to 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, an amount not
	to exceed $100;
	(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, an amount not to
	exceed $100;
	(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, an amount
	not to exceed $100;
	(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, an amount not to exceed $100;
	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, an amount not to exceed $100.
	SECTION 1.5.  Subsections J and N of Section 2, The Securities Act
	(Article 581-2, Vernon's Texas Civil Statutes), Subsections C and D
	of Section 35, The Securities Act (Article 581-35, Vernon's Texas
	Civil Statutes), and Section 36, The Securities Act (Article
	581-36, Vernon's Texas Civil Statutes) are repealed.
	SECTION 2.1.  To provide a reasonable period for the State
	Securities Board to establish itself as a self-directed and
	semi-independent agency, the following amounts are appropriated
	from the general revenue fund to the State Securities Board:
	(1)  for the state fiscal year ending August 31, 2016,
	an amount equal to 50% of the amount of general revenue appropriated
	to the agency for the state fiscal year ending August 31, 2015; and
	(2)  for the state fiscal year ending August 31, 2017,
	an amount equal to 50% of the amount of general revenue appropriated
	to the agency for the state fiscal year ending August 31, 2015.
	SECTION 2.2.  Subject to Section 45, as added by this Act, the
	appropriations made in this Act may be spent by the State Securities
	Board to which they are made as the Commissioner directs. The agency
	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 agency shall
	repay to the general revenue fund the appropriation made to the
	agency for the state fiscal year ending August 31, 2017, not later
	than that date and as funds become available.
	SECTION 3.1. 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,
	Commissioner, or agency in the administration or enforcement of the
	agency's duties.
	SECTION 3.2.  The State Securities Board shall continue to have and
	exercise the powers and duties allocated to the agency in the
	agency's enabling legislation, except as specifically amended by
	this Act.
	SECTION 4.1.  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 section.
	SECTION 4.2.  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 5.  This Act takes effect September 1, 2015.