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F I S C A L I M P A C T R E P O R T
SPONSOR King
ORIGINAL DATE
LAST UPDATED
2/6/07
HB 863
SHORT TITLE
Prosecution of Securities Fraud
SB
ANALYST C.Sanchez
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
$247,000
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Regulation and Licensing Department (RLD)
SUMMARY
Synopsis of Bill
House Bill 863 would appropriate $247,000 to the Securities Division of the Regulation and
Licensing Department for the prosecution of securities fraud.
SIGNIFICANT ISSUES
Enhancing the Securities Division’s fraud prosecution capability would enable the Division to
handle more cases. Securities cases a very time consuming, and therefore many prosecutors will
not handle them because they can’t afford to tie up their resources for one case.
In addition to the length of time each case takes, it is also difficult to find attorneys and
investigators who have the necessary training and experience to successfully investigate and
prosecute such cases. HB 863 may provide the funds required to hire people with appropriate
backgrounds in accounting, finance and white collar investigations,
pg_0002
House Bill 863 – Page
2
ADMINISTRATIVE IMPLICATIONS
If HB 863 is used to hire additional personnel, additional office space would be needed.
TECHNICAL ISSUES
HB 863 should clarify what the intended use of the funds would be (e.g., personnel, office
expenses, etc.). This makes it difficult to determine what the recurring fiscal impact would be.
WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL
Securities Division funding would not increase.
CS/mt