Committee gives due-pass recommendation to measure moving securities duties to insurance commissioner

The Senate Industry and Business Committee voted 4-1 to recommend that the Legislature transfer the duties of the securities commissioner to the elected insurance commissioner, approving Senate Bill 2214 on a committee-level due-pass recommendation.

Insurance Commissioner John Godfrey told the committee the move would provide the securities division with immediate access to legal, fraud‑investigation and administrative resources housed in the Insurance Department. Godfrey said the department would retain a distinct securities division under a deputy commissioner and that the change would not eliminate the division’s separate enforcement responsibilities.

“Right now they’re operating without an attorney,” Godfrey said, noting the securities office lacks a fraud unit and that the Insurance Department could provide those capabilities. He added the transition offers synergies other states have realized and would strengthen investor and consumer protections.

Senator Michael Klein said he favored keeping the securities commissioner appointed by an authority other than the elected insurance commissioner and announced he would vote no. Other senators said the state could gain enforcement capacity and administrative efficiencies; Senator Buerda moved the due-pass recommendation and Senator Babb seconded. The clerk recorded a 4-1 vote in favor of the recommendation with Klein voting no.

Committee members directed staff to work on implementation details and noted the department and committee would continue to monitor identity and operational independence for the securities functions after the move.