Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the State Board Finance Reform topic
No spam. Unsubscribe anytime.
Committee approves bill to alter State Board of Finance membership and compliance staffing
Summary
House Bill 1378 was approved to change the State Board of Finance quorum and membership rules and to remove the requirement that the board directly employ a chief compliance officer.
The Senate Insurance & Commerce Committee voted to pass House Bill 1378, an agency bill that would alter the composition and meeting requirements of the State Board of Finance and remove the requirement that the board itself employ a chief compliance officer.
Representative Howard Beatty (R-95) presented the bill, saying it makes four updates: it lowers the quorum requirement from seven members to six; replaces the securities commissioner on the board with the secretary of the Department of Transformation and Shared Services (TSS); permits a governor’s designee to serve when the governor cannot attend; and eliminates the statutory requirement that the board directly employ a chief compliance officer, noting that the treasurer’s office currently houses that position.
"It lowers the required number of board members, to make a quorum from 7 to 6 members," Beatty told the committee, and explained that the board has had trouble reaching quorums because members have other duties. He said the chief compliance officer position is authorized for the treasurer of the state and it is not practical for the board itself to employ that position.
Sen. Johnson asked why the secretary of Transformation and Shared Services (TSS) was being placed on the board rather than another official. Committee witnesses said part of the rationale is that the board of finance oversees contracts coming out of the Division of Employee Benefits (EBD), which falls under TSS; placing that secretary on the board provides direct oversight and a clearer line of review.
The bill also reflects changes arising from Act 475 of 2023, which transferred administrative duties of the State Securities Department to the State Bank Department; Representative Beatty said the change avoids two board positions being held by the same individual. Andy Babbit of the Department of Finance and Administration (DFA) was cited in committee discussion as having additional context for the EBD connection.
Sen. Johnson moved to pass the bill; Sen. Boyd seconded. The committee approved the bill by voice vote. The motion record shows a voice vote; no roll-call tally was provided in the transcript.
The committee adjourned after completing its business.
