73R6581 LJD-F
By Romo H.B. No. 1791
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the abolishment of the State Banking Board and the
1-3 transfer of the duties of the State Banking Board to the Banking
1-4 Commissioner.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. The chapter heading to Chapter I, The Texas
1-7 Banking Code (Article 342-101 et seq., Vernon's Texas Civil
1-8 Statutes), is amended to read as follows:
1-9 CHAPTER ONE--SCOPE OF ACT, DEFINITIONS, AND FINANCE
1-10 COMMISSION <AND STATE BANKING BOARD>
1-11 SECTION 2. Section 3, Article 6, Chapter I, The Texas
1-12 Banking Code (Article 342-106, Vernon's Texas Civil Statutes), is
1-13 amended to read as follows:
1-14 3. Members of the Finance Commission shall, subject to the
1-15 provisions of Article 7 of this Chapter, serve until their
1-16 successors are appointed and have qualified by taking oath in the
1-17 form prescribed by the <State> Banking Commissioner <Board>.
1-18 SECTION 3. Article 7, Chapter II, The Texas Banking Code
1-19 (Article 342-207, Vernon's Texas Civil Statutes), is amended to
1-20 read as follows:
1-21 Art. 7. Banking Commissioner--General Powers--Duties--
1-22 Liabilities of Banking Commissioner and Others--Defense by Attorney
1-23 General. (a) The Banking Commissioner shall supervise and shall
2-1 regulate, as provided in this Code, all state and private banks and
2-2 shall enforce the provisions of this Code in person or through the
2-3 Deputy Banking Commissioner, the Departmental Examiner or any
2-4 examiner.
2-5 (b) The Banking Commissioner, each member of the Finance
2-6 Commission, <each member of the State Banking Board,> the Deputy
2-7 Banking Commissioner, the Departmental Examiner, the Liquidating
2-8 Supervisor, each examiner, assistant examiner, and special agent,
2-9 and each other officer and employee of the State Banking Department
2-10 shall not be personally liable for damages occasioned by the
2-11 officer's or employee's <his> official acts or omissions except
2-12 when such acts or omissions are corrupt or malicious. The Attorney
2-13 General shall defend any action brought against any of the above
2-14 mentioned officers or employees by reason of the officer's or
2-15 employee's <his> official act or omission, whether or not at the
2-16 time of the institution of the action the defendant has terminated
2-17 the officer's or employee's <his> service with the Department.
2-18 (c) The Banking Commissioner shall hear and determine
2-19 applications for State banking charters.
2-20 (d) The Banking Commissioner shall adopt and publish rules
2-21 and procedural regulations as may be necessary to facilitate the
2-22 fair hearing and adjudication of charter applications.
2-23 SECTION 4. Section (a), Article 10, Chapter II, The Texas
2-24 Banking Code (Article 342-210, Vernon's Texas Civil Statutes), is
2-25 amended to read as follows:
3-1 (a) Subject to the provisions of Section 5 of Chapter 183 of
3-2 the Forty-fourth Legislature of Texas (1935), page 461 (Article
3-3 489b, Section 5), and any other statutory provision of this State,
3-4 all information obtained, either directly or indirectly, by the
3-5 Banking Department relative to the financial condition of any bank
3-6 or bank holding company other than call reports and profit and loss
3-7 statements, whether obtained through examination or otherwise,
3-8 except published statements, and all files and records of said
3-9 Department relative thereto shall be confidential, and shall not be
3-10 disclosed by the Banking Commissioner or any officer or employee of
3-11 said Department. Further provided that no such information shall
3-12 be divulged to any member of the Finance Commission, nor shall any
3-13 member of the Finance Commission be given access to such files and
3-14 records of the Banking Department; provided, however, that the
3-15 Banking Commissioner may disclose to the Finance Commission <or to
3-16 the State Banking Board> information, files and records pertinent
3-17 to any hearing or matter pending before such Commission <or such
3-18 Board>. Further provided that upon request, the Banking
3-19 Commissioner may disclose to a Federal Reserve Bank any information
3-20 relative to its members, and shall permit it access to any files
3-21 and records or reports relating to its members. Further provided
3-22 that the Banking Commissioner may, in the Banking Commissioner's
3-23 <his> discretion, if the Banking Commissioner <he> deems it
3-24 necessary or proper to the enforcement of the laws of this State,
3-25 another state, or the United States, and to the best interest of
4-1 the public, divulge such information to any other department of
4-2 this State, another state, or the National Government, or any
4-3 agency or instrumentality thereof.
4-4 SECTION 5. Article 5, Chapter III, The Texas Banking Code
4-5 (Article 342-305, Vernon's Texas Civil Statutes), is amended by
4-6 amending Sections B, C, and D and adding Sections G and H to read
4-7 as follows:
4-8 B. Applicants desiring to incorporate a State bank shall
4-9 file with the Banking Commissioner an application for charter upon
4-10 official forms prepared and prescribed by the Banking Commissioner.
4-11 All persons subscribing to the capital stock of the proposed bank
4-12 shall sign and verify under oath a statement of such stock
4-13 subscribed, and which statement shall truly report the number of
4-14 shares and the amount to be paid in consideration; the names,
4-15 identity, title and address of any other persons who will be
4-16 beneficial owners of such stock or otherwise share an interest or
4-17 ownership in said stock, or who will pay any portion of the
4-18 consideration; whether said stock is to be pledged as security for
4-19 any loan; whether a loan has been committed or is intended for the
4-20 subscription and purchase of said stock, and if so, the name and
4-21 address of such person or corporation which is intended to loan
4-22 funds for said purchase; the names of any cosigners, guarantors,
4-23 partners or other persons liable for the repayment of any loan
4-24 financing the purchase of such stock. Provided, however, that the
4-25 verified statement of subscribers to stock shall be confidential
5-1 and privileged from public disclosure prior to the final
5-2 determination by the Banking Commissioner <Board> of the
5-3 application for a charter, unless the Banking Commissioner <Board>
5-4 shall find that public disclosure prior to public hearing and final
5-5 determination of the charter application is necessary to a full
5-6 development of the factual record.
5-7 C. The Banking Commissioner shall require deposit of such
5-8 charter fees as are required by law and shall proceed to conduct a
5-9 thorough investigation of the application, the applicants and their
5-10 personnel, and the charter conditions alleged. The actual expense
5-11 of such investigation and report shall be paid by the applicants,
5-12 and the Banking Commissioner may require a deposit in an estimated
5-13 amount, the balance to be paid in full prior to hearing of the
5-14 application. A written report of the investigation shall be
5-15 <furnished to the State Banking Board and shall be> made available
5-16 to all interested parties at their request.
5-17 D. Upon filing of the application, the Banking Commissioner
5-18 shall promptly set the time and place for public hearing of the
5-19 application for charter, giving the applicants reasonable notice
5-20 thereof. Before the 10th day preceding the day on which the
5-21 hearing is held, the Banking Commissioner shall publish notice of
5-22 the hearing in a newspaper of general circulation in the county
5-23 where the proposed bank is to be located. If a protest of the
5-24 application is not filed, the Banking Commissioner may cancel the
5-25 hearing, and if the Banking Commissioner does so, the Banking
6-1 Commissioner <Board> shall <vote to> determine whether the
6-2 necessary conditions set out in Section A of this article have been
6-3 established, based on the application. If the Banking Commissioner
6-4 denies <Board votes to deny> the application, the Banking
6-5 Commissioner shall notify the applicant and the applicant may
6-6 request a hearing on the application not later than the 30th day
6-7 after the date on which the notice is sent to the applicant. After
6-8 full and public hearing the Banking Commissioner shall <Board shall
6-9 vote and> determine whether the necessary conditions set out in
6-10 Section A above have been established. Should the Banking
6-11 Commissioner <Board, or a majority of the Board,> determine all of
6-12 the said conditions affirmatively, then the application shall be
6-13 approved; if not, then the application shall be denied. If
6-14 approved, and when the Banking Commissioner receives satisfactory
6-15 evidence that the capital has been paid in full in cash, the
6-16 Banking Commissioner shall deliver to the incorporators a certified
6-17 copy of the Articles of Association, and the bank shall come into
6-18 corporate existence. Provided however, that the <State> Banking
6-19 Commissioner <Board> may make <its> approval of any application
6-20 conditional, and in such event shall set out such condition in the
6-21 resolution granting the charter, and the Banking Commissioner shall
6-22 not deliver the certified copy of the Articles of Association until
6-23 such condition has been met<, after which the Banking Commissioner
6-24 shall in writing inform the State Banking Board as to compliance
6-25 with such condition and delivery of the Articles of Association>.
7-1 G. If the Banking Commissioner denies an application the
7-2 applicant may appeal the decision of the Banking Commissioner for
7-3 judicial review.
7-4 H. Judicial review of a decision of the Banking Commissioner
7-5 regarding an application for a charter is under the substantial
7-6 evidence rule and is instituted by filing a petition with a
7-7 district court in Travis County as provided by Section 19,
7-8 Administrative Procedure and Texas Register Act (Article 6252-13a,
7-9 Vernon's Texas Civil Statutes), and its subsequent amendments.
7-10 SECTION 6. Article 7, Chapter III, The Texas Banking Code
7-11 (Article 342-307, Vernon's Texas Civil Statutes), is amended to
7-12 read as follows:
7-13 Art. 7. Certificate of Authority--Posting--Revocation of
7-14 Charter. No state bank may do business until it receives a
7-15 certificate of authority from the Banking Commissioner, which shall
7-16 not be delivered until it has elected the officers and directors
7-17 named in the application for charter or other officers and
7-18 directors approved by the Banking Commissioner; shall have adopted
7-19 by-laws approved by the Banking Commissioner; and shall have
7-20 complied with all the other requirements of this Code relative to
7-21 the incorporation of state banks.
7-22 If any state bank does not open and actually engage in
7-23 business within three months after the granting of its charter, or
7-24 conditional approval of application for charter, the Banking
7-25 Commissioner may <so inform the State Banking Board which may> in
8-1 the Banking Commissioner's <its> discretion forfeit the charter or
8-2 cancel the <its> conditional approval of application for charter,
8-3 without any judicial action.
8-4 Each state bank shall keep its certificate of authority
8-5 posted in its lobby at a point accessible to the public.
8-6 SECTION 7. Article 9, Chapter III, The Texas Banking Code
8-7 (Article 342-309, Vernon's Texas Civil Statutes), is amended to
8-8 read as follows:
8-9 Art. 9. REORGANIZATION--INCORPORATION TO TAKE OVER BUSINESS
8-10 OF OTHER BANKS--TRUST POWERS. A state bank may be incorporated to
8-11 take over the business of any incorporated bank or banks, state or
8-12 national, as a step in the reorganization of such bank or banks,
8-13 (which bank or banks, whether one or more, will be hereafter
8-14 referred to as the "reorganizing bank"), and shall, subject to the
8-15 provisions of this article, be authorized to purchase assets from
8-16 the reorganizing bank and as consideration therefor, assume all
8-17 liabilities, known or unknown, of the reorganizing bank, other than
8-18 its liability to stockholders as such.
8-19 Persons desiring to incorporate a state bank under the
8-20 provisions of this article shall proceed in the manner provided in
8-21 Article 5 of this Chapter, and in addition, shall file with the
8-22 Banking Commissioner:
8-23 (1) The proposed contract whereby the state bank is to
8-24 purchase the assets from and assume the liabilities of the
8-25 reorganizing bank, as above mentioned.
9-1 (2) Contracts, if any, whereby the proposed state bank
9-2 is to purchase for cash the whole or any part of the right of any
9-3 or all of the stockholders of the reorganizing bank to receive
9-4 liquidating dividends upon liquidation of the reorganizing bank,
9-5 which contracts shall expressly provide that they shall be binding
9-6 and effective only in event the reorganizing bank is placed in
9-7 voluntary liquidation within ten (10) days of the granting of the
9-8 application for the charter applied for. Such contracts shall be
9-9 executed on behalf of the proposed bank by the persons applying for
9-10 the charter.
9-11 If the Banking Commissioner, after investigation, determines
9-12 that the proposed bank, if incorporated, will, after its capital
9-13 has been paid in full and all contracts above mentioned finally
9-14 consummated, be solvent, its capital adequate and unimpaired, that
9-15 such reorganization is to the best interest of the reorganizing
9-16 bank, its depositors, creditors and stockholders and the public in
9-17 general, and that upon incorporation such bank will have in all
9-18 other respects complied with the law, the Banking Commissioner <he>
9-19 shall grant the application <recommend to the State Banking Board
9-20 that the charter be granted>.
9-21 The <If the State Banking Board concurs in the findings of
9-22 the Banking Commissioner, it shall grant the application, and the>
9-23 Banking Commissioner shall deliver a certified copy of the articles
9-24 of association in the manner provided in Article 5 of this chapter.
9-25 Provided, however, that the Banking Commissioner shall not deliver
10-1 a certificate of authority until the contracts above mentioned have
10-2 been fully consummated, and the requirements of Article 7 of this
10-3 chapter have been met. The state bank so incorporated shall be
10-4 deemed a reorganization of the reorganizing bank, and a
10-5 continuation of such bank in entity and identity, subject to all of
10-6 its liabilities, obligations, duties and relations, save and except
10-7 its liability to stockholders as such, and shall pay and perform
10-8 each and every obligation, duty and liability of the reorganizing
10-9 bank in exactly the same manner as the reorganizing bank was
10-10 obligated to do; further provided that if the reorganizing bank was
10-11 at the time of incorporation of the new state bank, named or acting
10-12 as guardian, trustee, executor, administrator or in any other
10-13 fiduciary capacity, such state bank shall, without the necessity of
10-14 any judicial action, or action by the creator of such trust,
10-15 continue the trusteeship or other fiduciary relation and perform
10-16 all of the duties and obligations of the reorganizing bank and
10-17 exercise all the powers and authority relative thereto; and neither
10-18 the reorganization of such bank, nor any liquidation of such bank
10-19 in connection therewith, shall be deemed a resignation or refusal
10-20 to act. The naming or designating by a testator or the creator of
10-21 a living trust of the reorganizing bank to act as trustee,
10-22 guardian, executor, or in any other fiduciary capacity shall be
10-23 considered the naming or designating of the bank resulting from the
10-24 reorganization.
10-25 The new state bank shall give notice of its assumption of the
11-1 liabilities of the reorganizing bank by publishing notice thereof
11-2 once each week for a period of two (2) weeks in some newspaper of
11-3 general circulation published in the county of its domicile, or in
11-4 event no such newspaper is published in said county, then in a
11-5 newspaper of general circulation published in an adjacent county.
11-6 The first notice shall be published within ten (10) days after the
11-7 delivery of the certificate of authority to such bank.
11-8 SECTION 8. Article 12, Chapter III, The Texas Banking Code
11-9 (Article 342-312, Vernon's Texas Civil Statutes), is amended to
11-10 read as follows:
11-11 Art. 12. AMENDMENT OF ARTICLES OF ASSOCIATION--RIGHTS OF
11-12 STOCKHOLDERS UPON INCREASE IN CAPITAL--STOCK OPTION PLANS. Subject
11-13 to the provisions of this Code, any state bank may amend its
11-14 articles of association for any lawful purpose.
11-15 If the owners of record of two-thirds of the capital stock,
11-16 at any regular meeting of stockholders, or any special meeting
11-17 called for that purpose, vote to amend the charter, the board of
11-18 directors shall prepare, execute in the manner provided for the
11-19 execution of articles of association, and file with the Banking
11-20 Commissioner an amendment to the articles of association. If the
11-21 Banking Commissioner finds that the amendment is not violative of
11-22 law and does not prejudice the interest of depositors and creditors
11-23 or the public, the Banking Commissioner <he> shall approve such
11-24 amendment and deliver to the bank a certified copy thereof, and
11-25 said amendment shall thereupon become effective; provided, however,
12-1 that if a state bank does not have the power to receive demand
12-2 deposits, no amendments of its articles of association adopting any
12-3 power provided under Subsection (a), (b), (c), (d), or (f) of
12-4 Article 1 of this Chapter and no amendment changing the domicile of
12-5 any state bank shall be effective until approved by the <State>
12-6 Banking Commissioner <Board> in the manner provided for the
12-7 approval of an original application for charter. Any state bank
12-8 may amend its articles of association to extend its corporate
12-9 existence for a perpetual period or for any period of years.
12-10 Each stockholder of a state bank shall be entitled to the
12-11 stockholder's <his> proportionate part of any increase of stock
12-12 effected out of surplus funds or undivided profits, and shall be
12-13 entitled to subscribe for the stockholder's <his> proportionate
12-14 share of any capital increase to be paid in cash; provided,
12-15 however, the bank may arrange for the disposition of fractional
12-16 shares by those entitled thereto or pay in cash the fair value of
12-17 fractions of a share as of the time when those entitled to receive
12-18 such fractions are determined. Each stockholder or the
12-19 stockholder's <his> assignee, in event the stockholder <he> elects
12-20 to assign such rights of subscription, shall subscribe for and pay
12-21 the amount of such subscription to the corporation within ten (10)
12-22 days after the stockholders have adopted such amendment, otherwise
12-23 the board of directors may allocate the unsubscribed or unpaid
12-24 portion of the increase among the other stockholders or otherwise
12-25 as they deem to the best interest of the bank.
13-1 With prior approval of the owners of record of two-thirds of
13-2 the capital stock, shares of stock in a bank, which are created by
13-3 a capital increase, may be allocated to and purchased by the bank
13-4 out of its surplus which is not certified or out of its undivided
13-5 profits to be held by the bank for fulfilling the requirements of
13-6 an officer or employee stock option or bonus plan, whereby officers
13-7 or employees, or both, of the bank are given options to purchase or
13-8 a bonus of shares of the bank's capital stock at a specified price,
13-9 subject to the following requirements and restrictions:
13-10 The number of shares so held shall not, at any time, exceed
13-11 five percent (5%) of the total number of shares outstanding in the
13-12 hands of other stockholders. Employee benefit plans, including
13-13 employee stock option plans, stock bonus plans, restricted stock
13-14 option or bonus plans, or any other plans, the sole purpose of
13-15 which is to compensate employees of the bank for services rendered
13-16 to the bank, authorized under this Article, may not extend beyond a
13-17 period of ten years from the date of issuance. No officer or
13-18 employee who owns or controls more than five percent (5%) of the
13-19 bank's capital stock shall be eligible to participate or to
13-20 continue participation in a stock option plan authorized by this
13-21 Article.
13-22 SECTION 9. Article 13a, Chapter III, The Texas Banking Code
13-23 (Article 342-313a, Vernon's Texas Civil Statutes), is amended to
13-24 read as follows:
13-25 Art. 13a. CONVERSION OF NATIONAL BANK INTO STATE BANK. A
14-1 national bank or association located in this state which follows
14-2 the procedures prescribed by the laws of the United States to
14-3 convert into a state bank, shall be granted a certificate of
14-4 incorporation in the state when the Banking Commissioner <State
14-5 Banking Board> finds that the bank meets the standards as to
14-6 location of office, capital structure and business experience of
14-7 officers and directors for the incorporation of a state bank. In
14-8 considering the application for conversion from a national bank
14-9 into a state bank the Banking Commissioner <Board> shall consider
14-10 and determine that the new bank meets with all the requirements of
14-11 a new state bank applicant. Included also in the application for
14-12 conversion and to be considered along with the other information
14-13 submitted shall be the terms of the transition from a national bank
14-14 into a state bank which shall also show that the provisions of
14-15 Public Law 706 of the 81st Congress of the United States have been
14-16 fully satisfied. Such conversion shall be governed by the
14-17 provisions of this Article and shall not be governed by Article 9,
14-18 now codified as Article 342-309, Vernon's Texas Civil Statutes.
14-19 SECTION 10. Sections (a) and (b), Article 14, Chapter III,
14-20 The Texas Banking Code (Article 342-314, Vernon's Texas Civil
14-21 Statutes), are amended to read as follows:
14-22 (a) A state bank or trust company may change its domicile to
14-23 <one of its previously established branch locations on prior
14-24 written approval of the Banking Commissioner. A state bank or
14-25 trust company may change its domicile to> any other location on
15-1 prior approval of the <State> Banking Commissioner <Board>.
15-2 (b) Applications for a change of domicile subject to
15-3 approval of the <State> Banking Commissioner <Board> shall be
15-4 granted by the <State> Banking Commissioner <Board> only upon good
15-5 and sufficient proof that all the following conditions exist:
15-6 (1) a public necessity exists for the bank at the
15-7 proposed location;
15-8 (2) proposed capital structure is adequate;
15-9 (3) volume of business in the community where the bank
15-10 is to be located is such as to indicate profitable operation of the
15-11 bank at that location;
15-12 (4) the proposed officers and directors have
15-13 sufficient banking experience, ability, and standing to render
15-14 success of the bank probable; and
15-15 (5) the applicants are acting in good faith.
15-16 SECTION 11. Sections 5-8, and 12, Article 3a, Chapter IX,
15-17 The Texas Banking Code (Article 342-903a, Vernon's Texas Civil
15-18 Statutes), are amended to read as follows:
15-19 Sec. 5. On written complaint by a bank that is utilizing or
15-20 that seeks to utilize an unmanned teller machine that it is being
15-21 denied the use of the machine on a reasonable, nondiscriminatory
15-22 basis and that the machine is, therefore, not being operated in the
15-23 best interests of the public, the <State> Banking Commissioner
15-24 <Board> shall have jurisdiction to determine whether or not the
15-25 bank has been denied the right to utilize the machine under this
16-1 article. After a hearing conducted by the Banking Commissioner
16-2 <State Banking Board> in accordance with the Administrative
16-3 Procedure and Texas Register Act, as amended (Article 6252-13a,
16-4 Vernon's Texas Civil Statutes), the <State> Banking Commissioner
16-5 <Board> may enter an order directing compliance with this article
16-6 and prescribing the manner and means of complying with this
16-7 article.
16-8 Sec. 6. In the event that operation of an unmanned teller
16-9 machine is to be discontinued, notice of intent to discontinue
16-10 shall be given to the <State> Banking Commissioner <Board> not less
16-11 than 60 days before the date on which operation of the machine is
16-12 to be discontinued, and a copy of that notice shall be sent to all
16-13 institutions using the machine. The <State> Banking Commissioner
16-14 <Board>, on complaint by an affected bank or on the Banking
16-15 Commissioner's <its> own motion, may delay the discontinuance of
16-16 operation of the unmanned teller machine for a period of not more
16-17 than 60 days past the proposed date of discontinuance if the
16-18 Banking Commissioner <it> finds that the banks sharing the unmanned
16-19 teller machine would be unfairly prejudiced by discontinuance on
16-20 the proposed date.
16-21 Sec. 7. Any person who violates this article or any order of
16-22 the <State> Banking Commissioner <Board> issued pursuant to this
16-23 article is subject to a civil penalty of not less than $50 nor more
16-24 than $1,000 for each day of violation and for each act of
16-25 violation. All civil penalties recovered under this article shall
17-1 be paid to the Banking Department under Article 12, Chapter I of
17-2 this code, as amended (Article 342-112, Vernon's Texas Civil
17-3 Statutes), for the use of the <State> Banking Commissioner <Board>
17-4 in enforcing this article.
17-5 Sec. 8. Whenever it appears that a person has violated or is
17-6 violating or is threatening to violate this article or any order of
17-7 the <State> Banking Commissioner <Board> issued pursuant to this
17-8 article, the <State> Banking Commissioner <Board> may cause a civil
17-9 suit to be instituted in a district court for injunctive relief to
17-10 restrain the person from continuing the violation or threat of
17-11 violation or for the assessment and recovery of the civil penalty
17-12 provided by this article, or for both injunctive relief and civil
17-13 penalty. At the request of the <State> Banking Commissioner
17-14 <Board>, the attorney general shall institute and conduct a suit in
17-15 the name of the state for injunctive relief or for the recovery and
17-16 receipt of a civil penalty, or for both injunctive relief and
17-17 penalty.
17-18 A suit for injunctive relief or recovery of a civil penalty
17-19 may be brought either in the county where the defendant resides, or
17-20 in the county where the violation or threat of violation occurs.
17-21 In any suit to enjoin a violation or threat of violation of this
17-22 article or of any order of the <State> Banking Commissioner
17-23 <Board>, the court may grant the <State> Banking Commissioner
17-24 <Board>, without bond or other undertaking, any prohibitory or
17-25 mandatory injunction as the facts may warrant, including temporary
18-1 restraining orders after notice and hearing, temporary injunctions,
18-2 and permanent injunctions.
18-3 Sec. 12. The legislature finds that the Congress of the
18-4 United States has amended the Consumer Protection Act, as amended
18-5 (15 U.S.C. 1601 et seq.), through passage of the Electronic Fund
18-6 Transfer Act and that the Consumer Protection Act is sufficiently
18-7 comprehensive to provide for the full and complete protection of
18-8 the rights of consumers using unmanned teller machines in this
18-9 state. The legislature further finds that it would not be in the
18-10 best interest of the public of this state to have separate
18-11 regulation of the consumer protection aspects of unmanned teller
18-12 machines by both the state and federal governments. To ensure the
18-13 continuing protection of consumers using the unmanned teller
18-14 machines authorized by this article, the <State> Banking
18-15 Commissioner <Board> and the attorney general are directed to make
18-16 a continuing study of the substantive and procedural provisions of
18-17 the Consumer Protection Act, of the regulations promulgated under
18-18 that Act, and of the effectiveness of enforcement of that Act in
18-19 this state and to report their findings and recommendations to the
18-20 legislature on or before June 30, 1981, and on the same date every
18-21 fourth year after 1981.
18-22 SECTION 12. Section 6, Article 3c, Chapter IX, The Texas
18-23 Banking Code (Article 342-903c, Vernon's Texas Civil Statutes), is
18-24 amended to read as follows:
18-25 Sec. 6. Compliance. On written complaint by a financial
19-1 institution that is utilizing or that seeks to utilize a system
19-2 that it is being denied the use of that system on a reasonable,
19-3 nondiscriminatory basis, the <State> Banking Commissioner <Board>
19-4 shall have jurisdiction to determine whether or not the financial
19-5 institution has been denied the right to utilize the system under
19-6 this article. The provisions of Sections 6 and 13, Article 3a,
19-7 Chapter IX, The Texas Banking Code of 1943, as amended (Article
19-8 342-903a, Vernon's Texas Civil Statutes), shall apply to this
19-9 article.
19-10 SECTION 13. Article 11.1, Chapter IX, The Texas Banking Code
19-11 (Article 342-911.1, Vernon's Texas Civil Statutes), is amended to
19-12 read as follows:
19-13 Art. 11.1. Appeals From Orders of <State Banking Board and>
19-14 Finance Commission. Any person, firm or corporation who is a party
19-15 to, or is necessarily aggrieved by, any final order, ruling or
19-16 judgment of the <State Banking Board or the> Finance Commission
19-17 shall have the right to appeal by filing a suit to set aside such
19-18 order, ruling or judgment in the District Court of Travis County,
19-19 Texas, within thirty (30) days following the date of rendition of
19-20 such order, ruling or judgment. Provided, that in such cases the
19-21 substantial evidence rule shall apply and govern the trial, as is
19-22 the common practice in cases of appeal from administrative orders
19-23 and as construed by the courts of this State. Pending final
19-24 judgment of the court the order shall remain in effect, unless
19-25 otherwise stayed or enjoined by the court upon proper application.
20-1 SECTION 14. Section 1, Article 1, Chapter XI, The Texas
20-2 Banking Code (Article 342-1101, Vernon's Texas Civil Statutes), is
20-3 amended by amending Subsection (b) and adding Subsections (c) and
20-4 (d) to read as follows:
20-5 (b) The <State> Banking Commissioner <Board> shall hear and
20-6 determine applications for state trust company charters.
20-7 (c) If the Banking Commissioner denies an application the
20-8 applicant may appeal the decision of the Banking Commissioner for
20-9 judicial review.
20-10 (d) Judicial review of a decision of the Banking
20-11 Commissioner regarding an application for a charter is under the
20-12 substantial evidence rule and is instituted by filing a petition
20-13 with a district court in Travis County as provided by Section 19,
20-14 Administrative Procedure and Texas Register Act (Article 6252-13a,
20-15 Vernon's Texas Civil Statutes), and its subsequent amendments.
20-16 SECTION 15. Section (a), Article 6, Chapter XI, The Texas
20-17 Banking Code (Article 342-1106, Vernon's Texas Civil Statutes), is
20-18 amended to read as follows:
20-19 (a) The <State> Banking Commissioner <Board> shall
20-20 promulgate and adopt such rules and procedural regulations as may
20-21 be necessary to facilitate the fair hearing and adjudication of
20-22 charter applications.
20-23 SECTION 16. Section 3, Chapter 496, Acts of the 44th
20-24 Legislature, 3rd Called Session, 1936 (Article 6243-23, Vernon's
20-25 Texas Civil Statutes), is amended to read as follows:
21-1 Sec. 3. Before the issuance of any such warrants, the
21-2 <State> Banking Commissioner <Board> shall, upon application by the
21-3 Old Age Assistance Commission, determine the rate of interest which
21-4 shall be paid on account of such warrants as authorized herein,
21-5 such interest rate never to exceed two and one-half (2-1/2) per
21-6 centum per annum.
21-7 SECTION 17. Section 3, Chapter 1, page 536, General Laws,
21-8 Acts of the 46th Legislature, 1939 (Article 6243-24, Vernon's Texas
21-9 Civil Statutes), is amended to read as follows:
21-10 Sec. 3. Before the issuance of any such warrants, the
21-11 <State> Banking Commissioner <Board> shall, upon application by the
21-12 Old Age Assistance Commission, determine the rate of interest which
21-13 shall be paid on account of such warrants as authorized herein,
21-14 such interest rate never to exceed two and one-half (2-1/2) per
21-15 centum per annum.
21-16 SECTION 18. Section 2(5)(A), Chapter 421, Acts of the 63rd
21-17 Legislature, Regular Session, 1973 (Article 6252-9b, Vernon's Texas
21-18 Civil Statutes), is amended to read as follows:
21-19 (5)(A) "Appointed officer of a major state agency"
21-20 means any of the following:
21-21 (i) a member of the Public Utility
21-22 Commission of Texas;
21-23 (ii) a member of the Texas Department of
21-24 Commerce;
21-25 (iii) a member of the Texas Board of
22-1 Aviation;
22-2 (iv) a member of the Texas Air Control
22-3 Board;
22-4 (v) a member of the Texas Alcoholic
22-5 Beverage Commission;
22-6 (vi) a member of the Finance Commission of
22-7 Texas;
22-8 (vii) a member of the State Purchasing and
22-9 General Services Commission;
22-10 (viii) a member of the Texas Board of
22-11 Criminal Justice;
22-12 (ix) a member of the Board of Trustees of
22-13 the Employees Retirement System of Texas;
22-14 (x) a member of the State Highway and
22-15 Public Transportation Commission;
22-16 (xi) a member of the Texas Workers'
22-17 Compensation Commission;
22-18 (xii) a member of the State Board of
22-19 Insurance;
22-20 (xiii) a member of the Parks and Wildlife
22-21 Commission;
22-22 (xiv) a member of the Public Safety
22-23 Commission;
22-24 (xv) the Secretary of State;
22-25 (xvi) a member of the State Securities
23-1 Board;
23-2 (xvii) a member of the Texas Amusement
23-3 Machine Commission;
23-4 (xviii) a member of the Texas Water
23-5 Development Board;
23-6 (xix) a member of the Texas Water
23-7 Commission;
23-8 (xx) a member of the governing board of a
23-9 state senior college or university as defined by Section 61.003,
23-10 Education Code, including The University of Texas at Arlington; The
23-11 University of Texas at Austin; The University of Texas at Dallas;
23-12 The University of Texas at El Paso; The University of Texas--Pan
23-13 American; The University of Texas--Pan American--Brownsville; The
23-14 University of Texas of the Permian Basin; The University of Texas
23-15 at San Antonio; The University of Texas at Tyler; The University of
23-16 Texas Southwestern Medical Center at Dallas; The University of
23-17 Texas Medical Branch at Galveston; The University of Texas Health
23-18 Science Center at Houston; The University of Texas Health Science
23-19 Center at San Antonio; The University of Texas System Cancer
23-20 Center; The University of Texas Health Science Center at Tyler;
23-21 Texas A&M University; Texas A&M University at Galveston; Prairie
23-22 View A&M University; Tarleton State University; Corpus Christi
23-23 State University; Texas A&I University; Laredo State University;
23-24 East Texas State University; East Texas State University at
23-25 Texarkana; University of Houston; University of Houston--Clear
24-1 Lake; University of Houston--Downtown; University of
24-2 Houston--Victoria; Lamar University at Beaumont; Lamar University
24-3 at Orange; Lamar University at Port Arthur; Midwestern State
24-4 University; University of North Texas; Texas College of Osteopathic
24-5 Medicine; Stephen F. Austin State University; Texas Southern
24-6 University; Texas Tech University; Texas Tech University Health
24-7 Sciences Center; Texas Woman's University; West Texas State
24-8 University; Angelo State University; Sam Houston State University;
24-9 Southwest Texas State University; Sul Ross State University; Sul
24-10 Ross State University--Uvalde Center; Texas State Technical
24-11 Institute--Amarillo; Texas State Technical Institute--Harlingen;
24-12 Texas State Technical Institute--Sweetwater; and Texas State
24-13 Technical Institute--Waco;
24-14 (xxi) a member of the Texas Higher
24-15 Education Coordinating Board;
24-16 (xxii) a member of the Texas Employment
24-17 Commission;
24-18 (xxiii) <a member of the State Banking
24-19 Board;>
24-20 <(xxiv)> a member of the board of trustees
24-21 of the Teachers Retirement System of Texas;
24-22 (xxiv) <(xxv)> a member of the Credit
24-23 Union Commission;
24-24 (xxv) <(xxvi)> a member of the School Land
24-25 Board;
25-1 (xxvi) <(xxvii)> a member of the board of
25-2 the Texas Department of Housing and Community Affairs;
25-3 (xxvii) <(xxviii)> a member of the Texas
25-4 Racing Commission;
25-5 (xxviii) <(xxix)> a member of the State
25-6 Board of Dental Examiners;
25-7 (xxix) <(xxx)> a member of the Texas Board
25-8 of Licensure for Nursing Home Administrators;
25-9 (xxx) <(xxxi)> a member of the Texas State
25-10 Board of Medical Examiners;
25-11 (xxxi) <(xxxii)> a member of the Board of
25-12 Pardons and Paroles;
25-13 (xxxii) <(xxxiii)> a member of the Texas
25-14 State Board of Pharmacy;
25-15 (xxxiii) <(xxxiv)> the Banking
25-16 Commissioner of the Banking Department of Texas;
25-17 (xxxiv) <(xxxv)> a member of the
25-18 Department of Information Resources Governing Board;
25-19 (xxxv) <(xxxvi)> the fire fighters'
25-20 pension commissioner;
25-21 (xxxvi) <(xxxvii)> a member of the Texas
25-22 Motor Vehicle Commission;
25-23 (xxxvii) <(xxxviii)> the director of the
25-24 Office of Court Administration of the Texas Judicial System;
25-25 (xxxviii) <(xxxix)> the chief executive of
26-1 the Office of Public Utility Counsel;
26-2 (xxxix) <(xl)> a member of the Texas Real
26-3 Estate Commission;
26-4 (xl) <(xli)> a member of the board of
26-5 directors and the executive director of the State Bar of Texas;
26-6 (xli) <(xlii)> a member of the Bond Review
26-7 Board;
26-8 (xlii) <(xliii)> a member of the Texas
26-9 Board of Health;
26-10 (xliii) <(xliv)> a member of the Texas
26-11 Board of Mental Health and Mental Retardation;
26-12 (xliv) <(xlv)> a member of the Texas Board
26-13 on Aging;
26-14 (xlv) <(xlvi)> a member of the Texas Board
26-15 of Human Services;
26-16 (xlvi) <(xlvii)> a member of the Texas
26-17 Funeral Service Commission;
26-18 (xlvii) <(xlviii)> a member of the board
26-19 of directors of a river authority created under the constitution or
26-20 laws of this state;
26-21 (xlviii) <(xlix)> the director of the
26-22 lottery division in the office of the comptroller; or
26-23 (xlix) <(l)> the deputy in charge of the
26-24 department of security in the lottery division in the office of the
26-25 comptroller.
27-1 SECTION 19. Section 21(e), Administrative Procedure and
27-2 Texas Register Act (Article 6252-13a, Vernon's Texas Civil
27-3 Statutes), is amended to read as follows:
27-4 (e) Sections 12 through 20 of this Act do not apply to
27-5 action by the Commissioner of Banking <or the State Banking Board>
27-6 with respect to the issuance of a state bank charter for a bank to
27-7 assume the assets and liabilities of a state bank the commissioner
27-8 deems to be in an unsafe condition as defined in Section 1, Article
27-9 1a, Chapter VIII, Texas Banking Code of 1943.
27-10 SECTION 20. Article 15, Chapter I, The Texas Banking Code
27-11 (Article 342-115, Vernon's Texas Civil Statutes), is repealed.
27-12 SECTION 21. (a) On the effective date of this Act:
27-13 (1) the powers, duties, and obligations of the State
27-14 Banking Board are transferred to the Banking Commissioner;
27-15 (2) the State Banking Board shall transfer all
27-16 property and records in its custody to the Banking Commissioner;
27-17 and
27-18 (3) an employee of the State Banking Board becomes an
27-19 employee of the Texas Department of Banking.
27-20 (b) On the transfer of all property and records under
27-21 Subsection (a)(2) of this section, the State Banking Board is
27-22 abolished. On the abolishment of the State Banking Board, a rule,
27-23 form, policy, or order of the State Banking Board becomes a rule,
27-24 form, policy, or order of the Banking Commissioner.
27-25 SECTION 22. This Act takes effect September 1, 1993.
28-1 SECTION 23. The importance of this legislation and the
28-2 crowded condition of the calendars in both houses create an
28-3 emergency and an imperative public necessity that the
28-4 constitutional rule requiring bills to be read on three several
28-5 days in each house be suspended, and this rule is hereby suspended.