Functions & Responsibilities

 

The Finance Commission is responsible for overseeing and coordinating the Texas Department of Banking, the Department of Savings and Mortgage Lending, and the Office of the Consumer Credit Commissioner and serves as the primary point of accountability for ensuring that state depository and lending institutions function as a system, considering the broad scope of the financial services industry. The Finance Commission is the policy making body for those agencies and is not a separate state agency. These three agencies are housed in the State Finance Commission Building at 2601 North Lamar, Austin, TX 78705. The Commission appoints the commissioners of these three agencies. The Commission is required to meet at least six times annually and the dates of its future meetings are noted on this website. All meetings are subject to the Open Meetings Act and are posted approximately seven days in advance in the Texas Register.

The Finance Commission of Texas is a board of private citizens appointed by and responsible to the Governor of Texas. Originated in 1943, it derives its authority from Chapter 11 of the Texas Finance Code (The Texas Banking Act), and consists of eleven members, subject to Senate confirmation. Members serve overlapping, six-year terms. Effective September 1, 2011, the Commission is to include two state banker, one state savings and loan executive, one consumer credit executive, one residential mortgage loan originator and six public members, one of whom must be a certified public accountant. The Governor appoints the presiding officer.

The commission members appoint one of the agency commissioners to serve as Executive Director to the Finance Commission. Commissioner Charles G. Cooper, Texas Department of Banking, was appointed to serve as the Executive Director effective May 1, 2014.

The Finance Commission has three standing committees — the Audit Committee, Strategic Planning Committee, and the Study Committee. The Audit Committee receives and acts on reports prepared by the Department's internal auditor (currently an external CPA firm). The Study Committee oversees the studies conducted by outside parties concerning access to financial services in Texas, high cost lending in Texas, or other studies as mandated by the Legislature. The Strategic Planning Committee oversees the direction and scope of the agencies strategic planning. Various ad hoc committees are appointed by the chairman as needed.

You may reach the Finance Commission members by corresponding with the Commission's headquarters office, or by contacting the Executive Director, both at 2601 N. Lamar, Austin, Texas 78705, (512) 936-6222, or by email.

 

Strategic Plan

 

In accordance with Section 11.002(a) and (b) of the Texas Finance Code, the Finance Commission of Texas (Commission) has developed this Strategic Plan for 2017–2021. In supporting the merits of sound strategic planning, the Commission also adopted an internal policy statement as part of its internal operating policies and procedures that requires adoption of a five-year strategic plan beginning in August 2002 and each two-year period thereafter.

The statute and policy statement are shown below:

 

Sec. 11.002. Purpose of Commission; Strategic Plan


(a) The finance commission is responsible for overseeing and coordinating the Texas Department of Banking, the Department of Savings and Mortgage Lending, and the Office of Consumer Credit Commissioner and serves as the primary point of accountability for ensuring that state depository and lending institutions function as a system, considering the broad scope of the financial services industry. The finance commission is the policy-making body for those finance agencies and is not a separate state agency. The finance commission shall carry out its functions in a manner that protects consumer interests, maintains a safe and sound banking system, and increases the economic prosperity of the state.

(b) The finance commission shall prepare and periodically update a strategic plan for coordination of the state financial system. Each finance agency shall cooperate in preparation of the plan.

 

Policy Statement


The finance commission recognizes the benefits of sound short-term and long-term planning and the need to direct the regulatory responsibilities of each finance agency in a manner that protects the integrity of the state’s financial system along with promoting economic prosperity. In this regard, the finance commission will prepare and adopt a five-year strategic plan each biennium beginning August 1, 2002. Revisions and updates to the plan are permitted, but shall be limited to items that are material in nature that will result in significant changes to the goals and objectives of the finance commission.


On or before September of each even-numbered year, the chair of the finance commission will appoint three members to serve on a strategic planning committee that shall also consist of a nonvoting representative from each of the three finance
agencies. The strategic planning committee shall be responsible for preparing or updating the strategic plan so that it encompasses the goals and objectives of the finance commission.

At a minimum, the strategic plan shall address the following:

  • The current and forecasted condition of the state’s economic and financial systems considering global and national policies and influences,

  • The effectiveness of regulatory statutes in providing guidelines that ensure a safe and sound banking system and financial environment for the citizens and businesses of the state,

  • The condition and effectiveness of the three finance agencies in meeting their goals and objectives as stipulated in their respective strategic plans, and

  • Any enhancements to the regulatory framework of the three finance agencies.

 

Strategic Planning Process


The three state agencies under the direction of the Finance Commission of Texas each submit separate strategic plans which include specific objectives, goals and strategies.  It is not the intent of the Commission to duplicate this process. Still, the Commission is committed to the principles of establishing clearly defined objectives, goals, and strategies.  

Consequently, a significant purpose of the Commission’s plan, and a goal of the strategic planning process, is to coordinate and bring together the concepts and plans of the three agencies under its supervision. Below is a general timeline of the development of the strategic plan.

  • The Strategic Planning Committee of the Finance Commission meet to discuss the three agencies’ submitted plans as well as define the scope, direction, content and process for preparation of the Commission’s strategic plan.
  • Staff from the three agencies meets to identify key elements for inclusion in the Commission’s plan.
  • Draft Commission strategic plans are provided to the agencies for review and comment.
  • Draft copies are distributed to the Commission members for comment and further direction.
  • The final draft is presented to the full Commission prior to the August meeting of the Commission. Consideration of the final plan is scheduled for the August meeting.