Committee gives do-not-pass on financial-institutions budget as oversight moves to board
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Summary
The Appropriations Committee recommended a do-not-pass for Senate Bill 2008 after members were told the agency's budget authority will move off state appropriation rolls to a board-controlled, fee-funded structure with a 2029 sunset.
The Appropriations Committee voted to recommend a 'do not pass' on Senate Bill 2008, clearing the way for the financial institutions' budget to move off the state appropriation schedule and to be controlled directly by an industry board.
Senator Burkhart moved the do-not-pass motion. The committee approved the motion 14-2 on a roll-call vote. Committee discussion explained that the budgetary authority and spending for the agency will be funded from the agency's own fees rather than through the legislature's standard appropriation process; the change includes a statutory sunset provision in 2029 so the legislature can re-evaluate the arrangement.
Legislative counsel Alex explained the effect: the agency will be special-funded, spending its fee revenue without annual legislative appropriation unless the legislature later decides to reclaim authority. The House provided an expiration date of 2029, which committee members said gives the legislature an opportunity to revisit the structure.
Members raised governance and oversight concerns. Senator Cleary said allowing the banking board to set the regulator's budget and the regulator's salary poses an oversight issue; others said the agencies historically generate fee revenue and are self-funded and that federal oversight provides additional checks. The committee noted the move is similar to previous changes for other boards that operate on fees.
After debate the committee recorded a 14-2 vote to recommend do not pass and directed staff to carry the bill forward accordingly.