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Committee advances bill to move securities oversight to Banking and Finance amid questions about a $140 million fraud probe
Summary
A Rules Committee discussion of HB 934 focused on transferring securities and commodities authority from the Secretary of State to the Department of Banking and Finance and whether the move would disrupt an ongoing investigation into a roughly $140 million fraud labeled 'First Liberty.' The sponsor said staff and investigations would transition and the change is planned for 07/01/2026.
The House Rules Committee considered HB 934, a bill to transfer authority over securities and commodities from the Secretary of State to the Department of Banking and Finance.
Sponsor and committee members spent the bulk of the hearing on questions about continuity of an ongoing fraud investigation referred to in the record as the 'First Liberty' matter, described in the hearing as roughly a $140,000,000 scheme. Whip Parks asked, "Is it not true that this would hinder an ongoing investigation into First Liberty, a $140,000,000 Ponzi scheme?" The bill's sponsor responded that it would not: "That is correct. It is a 140 and counting," and said the affected personnel and work would move to the Department of Banking and Finance in a "seamless transition, upon 07/01/2026." The sponsor added the agencies would be able to "work in concert, work as a team."
Committee members pressed whether the transfer could allow the incoming commissioner to make personnel changes that might affect the investigation. One member asked, "Is there anything in this law that would tie the hands of the commissioner ... not to make any personnel changes after the switch?" The sponsor replied the law anticipates the staff moving to the new department and said that those employees "will have all the benefits that they have had previously," but also noted performance would determine continued employment.
Members also asked whether other ongoing investigations housed in the Secretary of State's security division (for example, investigations involving cemetery or funeral director matters) would remain at the Secretary of State's office; the sponsor said the bill concerns only securities, exchange and commodities and those other investigations would remain at the Secretary of State's office "in what capacity" the Secretary of State decides.
The hearing included repeated concerns about possible disruption of staff and workload in the Secretary of State's office after the transfer, questions about budgetary and staffing impacts, and multiple committee members asking the Department of Banking and Finance to clarify hiring plans for staff who would move. The sponsor characterized the bill as modeled on practices in other states and said it should improve regulatory focus and reduce fraud.
Next steps: The committee took questions at length and then moved on to subsequent agenda items; no final floor vote on HB 934 was recorded in the hearing transcript.
