Representative Howard Beatty presented House Bill 1378 to the Senate Insurance & Commerce Committee, saying the bill would change the composition and meeting requirements for the State Board of Finance and repeal the board’s obligation to directly employ a chief compliance officer.

"It lowers the required number of board members, to make a quorum from 7 to 6 members," Beatty said, and it "replaces the securities commissioner on the board, with the secretary of TSS," referring to the secretary of Transformation and Shared Services. He said the change would permit the governor’s designee to serve on the board to avoid schedule conflicts that can prevent the governor’s attendance.

Beatty also said the bill would eliminate the requirement that the board employ a chief compliance officer, noting that the compliance officer position is authorized for the state treasurer and it is not practical for the board itself to pay or employ that position.

Committee members asked technical and implementation questions. Senator Johnson asked why the secretary of Transformation and Shared Services was chosen; Andy Babbit with DFA explained: "Part of the responsibility of board of finance is to oversee all contracts that are coming out of EBD. So EBD falls under the secretary of transformation shared services." Babbit said that arrangement gives the board "a direct line of review" of Employee Benefits Division matters and how they might affect agency costs.

A committee member asked whether a separate bill changing the department name would require this bill to be amended. Beatty said the other bill's language is one-time language and would correct other code references as needed.

The committee voted to pass House Bill 1378 by voice vote. "Motion by Senator Johnson, second by Senator Boyd," the chair announced; members answered "aye," and the chair declared the bill passed out of committee.

The committee record excerpt did not include the full bill text, fiscal notes, or a roll-call vote tally in the provided transcript.