By Romo H.B. No. 1791
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to abolishment of the state banking board and the transfer
1-3 of its function to the commissioner of banking.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The Texas Banking Code (Article 342-101 et seq.,
1-6 Vernon's Texas Civil Statutes), is amended by adding Article
1-7 342-115A to read as follows:
1-8 Art. 342-115A. STATE BANKING BOARD ABOLISHED. The State
1-9 Banking Board is abolished, and the powers and duties of the Board
1-10 are transferred to the Banking Commissioner of Texas. A power
1-11 granted or duty imposed by law on the Board is a power or duty of
1-12 the Board in reference to the Banking Commissioner of Texas, unless
1-13 otherwise noted.
1-14 SECTION 2. Article 15, Chapter I, Texas Banking Code
1-15 (Article 342-115, Vernon's Texas Civil Statutes), is repealed.
1-16 SECTION 3. Article 7, Chapter II, Texas Banking Code
1-17 (Article 342-207, Vernon's Texas Civil Statutes), is amended to
1-18 read as follows:
1-19 BANKING COMMISSIONER--GENERAL POWERS--DUTIES--LIABILITIES OF
1-20 BANKING COMMISSIONER AND OTHERS--DEFENSE BY ATTORNEY GENERAL. The
1-21 Banking Commissioner shall supervise and shall regulate, as
1-22 provided in this Code, all state and private banks and shall
1-23 enforce the provisions of this Code in person or through the Deputy
2-1 Banking Commissioner, the Department Examiner or any examiner. The
2-2 Banking Commissioner, each member of the Finance Commission, <each
2-3 member of the State Banking Board,> the Deputy Banking
2-4 Commissioner, the Department Examiner, the Liquidating Supervisor,
2-5 each examiner, assistant examiner, and special agent, and each
2-6 other officer and employee of the State Banking Department shall
2-7 not be personally liable for damages occasioned by his or her
2-8 official acts or omissions except when such acts or omissions are
2-9 corrupt or malicious. The Attorney General shall defend any action
2-10 brought against any of the above mentioned officers or employees by
2-11 reason of his or her official act or omission, whether or not at
2-12 the time of the institution of the action the defendant has
2-13 terminated his or her service with the Department.
2-14 SECTION 4. Subsection (a) of Article 10, Chapter II, Texas
2-15 Banking Code (Article 342-210, Vernon's Texas Civil Statutes), is
2-16 amended to read as follows:
2-17 (a) Subject to the provisions of Section 5 of Chapter 183 of
2-18 the Forty-fourth Legislature of Texas (1935), page 461 (Article
2-19 489b, Section 5), and any other statutory provision of this State,
2-20 all information obtained, either directly or indirectly, by the
2-21 Banking Department relative to the financial condition of any bank
2-22 or bank holding company other than call reports and profit and loss
2-23 statements, whether obtained through examination or otherwise,
2-24 except published statements, and all files and records of said
2-25 Department relative thereto shall be confidential, and shall not be
3-1 disclosed by the Banking Commissioner or any officer or employee of
3-2 said Department. Further provided that no such information shall
3-3 be divulged to any member of the Finance Commission, nor shall any
3-4 member of the Finance Commission be given access to such files and
3-5 records of the Banking Department, provided, however, that the
3-6 Banking Commissioner may disclose to the Finance Commission <or to
3-7 the State Banking Board> information, files and records pertinent
3-8 to any hearing or matter pending before such Commission<, or such
3-9 Board>. Further provided that upon request, the Banking
3-10 Commissioner may disclose to a Federal Reserve Bank any information
3-11 relative to its members, and shall permit it access to any files
3-12 and records or reports relating to its members. Further provided
3-13 that the Banking Commissioner may, in his or her discretion, if he
3-14 or she deems it necessary or proper to the enforcement of the laws
3-15 of this State, another state, or the United States, and to the best
3-16 interest of the public, divulge such information to any other
3-17 department of this State, another state, or the National
3-18 Government, or any agency or instrumentality thereof.
3-19 SECTION 5. Subsections B, C, and D of Article 5, Chapter
3-20 III, Texas Banking Code, (Article 342-305, Vernon's Texas Civil
3-21 Statutes), are amended to read as follows:
3-22 B. Applicants desiring to incorporate a State bank shall
3-23 file with the Banking Commissioner an application for charter upon
3-24 official forms prepared and prescribed by the Banking Commissioner.
3-25 All persons subscribing to the capital stock of the proposed bank
4-1 shall sign and verify under oath a statement of such stock
4-2 subscribed, and which statement shall truly report the number of
4-3 shares and the amount to be paid in consideration; the names,
4-4 identity, title, and address of any other persons who will be
4-5 beneficial owners of such stock and otherwise share an interest or
4-6 ownership in said stock, or who will pay any portion of the
4-7 consideration; whether said stock is to be pledged as security for
4-8 any loan; whether a loan has been committed or is intended for the
4-9 subscription and purchase of said stock, and if so, the name and
4-10 address of such person or corporation which is intended to loan
4-11 funds for said purchase; the names of any cosigners, guarantors,
4-12 partners or other persons liable for the repayment of any loan
4-13 financing the purchase of such stock. Provided, however that the
4-14 verified statement of subscribers to stock shall be confidential
4-15 and privileged from public disclosure prior to the final
4-16 determination by the Banking Commissioner <Board> of the
4-17 application for a charter, unless the Banking Commissioner <Board>
4-18 shall find that public disclosure prior to public hearing and final
4-19 determination of the charter application is necessary to a full
4-20 development of the factual record.
4-21 C. The Banking Commissioner shall require deposit of such
4-22 charter fees as are required by law and shall proceed to conduct a
4-23 thorough investigation of the application, the applicants and their
4-24 personnel, and the charter conditions alleged. The actual expense
4-25 of such investigation and report shall be paid by the applicants,
5-1 and the Banking Commissioner may require a deposit in an estimated
5-2 amount, the balance to be paid in full prior to hearing of the
5-3 application. A written report of the investigation shall be
5-4 furnished to the Banking Commissioner <State Banking Board> and
5-5 shall be made available to all interested parties at their request.
5-6 D. The Banking Commissioner shall cause a notice of the
5-7 application for charter to be published in a newspaper of general
5-8 circulation in the county where the proposed bank is to be located.
5-9 If a protest is filed within 10 days after notice of the
5-10 application is published, the Commissioner shall cause the
5-11 application to be set for public hearing. If no protest is filed
5-12 within 10 days after notice of the application is published, the
5-13 Commissioner shall investigate the application and with consent of
5-14 the applicant may waiver a hearing or in the Commissioner's
5-15 discretion a public hearing may nonetheless be held. <Upon filing
5-16 of the application, the Banking Commissioner shall promptly set the
5-17 time and place for public hearing of the application for charter,
5-18 giving the applicants reasonable notice thereof. Before the 10th
5-19 day preceding the day on which the hearing is held, the Banking
5-20 Commissioner shall publish notice of the hearing in a newspaper of
5-21 general circulation in the county where the proposed bank is to be
5-22 located. If a protest of the application is not filed, the Banking
5-23 Commissioner may cancel the hearing, and if the Banking
5-24 Commissioner does so, the Board shall vote to determine whether the
5-25 necessary conditions set out in Section A of this article have been
6-1 established, based on the application. If the Board votes to deny
6-2 the application, the Banking Commissioner shall notify the
6-3 applicant and the applicant may request a hearing on the
6-4 application not later than the 30th day after the date on which the
6-5 notice is sent to the applicant. After full and public hearing the
6-6 Board shall vote and determine whether the necessary conditions set
6-7 out in Section A above have been established. Should the Board, or
6-8 a majority of the Board, determine all of the said conditions
6-9 affirmatively, then the application shall be approved; if not, then
6-10 the application shall be denied.> If approved, and when the
6-11 Banking Commissioner receives satisfactory evidence that the
6-12 capital has been paid in full in cash, the Banking Commissioner
6-13 shall deliver to the incorporators a certified copy of the Articles
6-14 of Association, and the bank shall come into corporate existence.
6-15 <Provided however, that the State Banking Board may make its> The
6-16 commissioner may make approval of any application conditional, and
6-17 in such event shall set out such condition in the resolution
6-18 granting the charter, and the Banking Commissioner shall not
6-19 deliver the certified copy of the Articles of Association until
6-20 such condition has been met. <, after which the Banking
6-21 Commissioner shall in writing inform the State Banking Board as to
6-22 compliance with such condition and delivery of the Articles of
6-23 Association.> Any hearing pursuant to this section shall be
6-24 conducted under the Administrative Procedure and Texas Register
6-25 Act, Article 6252-13a, Vernon's Texas Civil Statutes, and appeal
7-1 from the rulings of the Commissioner shall be to a district court
7-2 of Travis County under the substantial evidence rule.
7-3 SECTION 6. Article 7, Chapter III, Texas Banking Code,
7-4 (Article 342-307, Vernon's Texas Civil Statutes), is amended to
7-5 read as follows:
7-6 Art. 342-307. Certificate of Authority--Posting--Revocation
7-7 of Charter. No state bank may do business until it receives a
7-8 certificate of authority from the Banking Commissioner, which shall
7-9 not be delivered until it has elected the officers and directors
7-10 named in the application for charter or other officers and
7-11 directors approved by the Banking Commissioner; shall have adopted
7-12 by-laws approved by the Banking Commissioner; and shall have
7-13 complied with all the other requirements of this Code relative to
7-14 the incorporation of state banks.
7-15 If any state bank does not open and actually engage in
7-16 business within three months after the granting of its charter, or
7-17 conditional approval of application for charter, the Banking
7-18 Commissioner <may so inform the State Banking Board which> may in
7-19 his or her <its> discretion forfeit the charter or cancel its
7-20 conditional approval of application for charter, without any
7-21 judicial action.
7-22 Each state bank shall keep its certificate of authority
7-23 posted in its lobby at a point accessible to the public.
7-24 SECTION 7. Article 9, Chapter III, Texas Banking Code,
7-25 (Article 342-309, Vernon's Texas Civil Statutes), is amended as
8-1 follows:
8-2 Art. 342-309. Reorganization--Incorporation to Take Over
8-3 Business of Other Banks--Trust Powers. A state bank may be
8-4 incorporated to take over the business of any incorporated bank or
8-5 banks, state or national, as a step in the reorganization of such
8-6 bank or banks, (which bank or banks, whether one or more, will be
8-7 hereafter referred to as the "reorganizing bank"), and shall,
8-8 subject to the provisions of this article, be authorized to
8-9 purchase assets from the reorganizing bank and as consideration
8-10 therefor, assume all liabilities, known or unknown, of the
8-11 reorganizing bank, other than its liability to stockholders as
8-12 such.
8-13 Persons desiring to incorporate a state bank under the
8-14 provisions of this article shall proceed in the manner provided in
8-15 Article 5 of this Chapter, and in addition, shall file with the
8-16 Banking Commissioner:
8-17 (1) The proposed contract whereby the state bank is to
8-18 purchase the assets from and assume the liabilities of the
8-19 reorganizing bank, as above mentioned.
8-20 (2) Contracts, if any, whereby the proposed state bank
8-21 is to purchase for cash the whole or any part of the right of any
8-22 or all of the stockholders of the reorganizing bank to liquidating
8-23 dividends upon liquidation of the reorganizing bank, which
8-24 contracts shall expressly provide that they shall be binding and
8-25 effective only in event the reorganizing bank is placed in
9-1 voluntary liquidation within ten (10) days of the granting of the
9-2 application for the charter applied for. Such contracts shall be
9-3 executed on behalf of the proposed bank by the persons applying for
9-4 the charter.
9-5 If the Banking Commissioner, after investigation, determines
9-6 that the proposed bank, if incorporated, will, after its capital
9-7 has been paid in full and all contracts above mentioned finally
9-8 consummated, be solvent, its capital adequate and unimpaired, that
9-9 such reorganization is to the best interest of the reorganizing
9-10 bank, its depositors, creditors and stockholders and the public in
9-11 general, and that upon incorporation such bank will have in all
9-12 other respects complied with the law, he or she shall grant the
9-13 charter <recommend to the State Banking Board that the charter be
9-14 granted>.
9-15 <If the State Banking Board concurs in the findings of>
9-16 T<t>he Banking Commissioner, <it> shall grant the application, and
9-17 then <the Banking Commissioner> shall deliver a certified copy of
9-18 the articles of association in the manner provided in Article 5 of
9-19 this chapter. Provided, however, that the Banking Commissioner
9-20 shall not deliver a certificate of authority until the contracts
9-21 above mentioned have been fully consummated, and the requirements
9-22 of Article 7 of this chapter have been met. The state bank so
9-23 incorporated shall be deemed Article 7 of this chapter have been
9-24 met. The state bank so incorporated shall be deemed a
9-25 reorganization of the reorganizing bank, and a continuation of such
10-1 bank in entity and identity, subject to all of its liabilities,
10-2 obligations, duties, and relations, save and except its liability
10-3 to stockholders as such, and shall pay and perform each and every
10-4 obligation, duty and liability of the reorganizing bank in exactly
10-5 the same manner as the reorganizing bank was obligated to do;
10-6 further provided that if the reorganizing bank was at the time of
10-7 incorporation of the new state bank, named or acting as guardian,
10-8 trustee, executor, administrator or in any other fiduciary
10-9 capacity, such state bank shall, without the necessity of any
10-10 judicial action, or action by the creator of such trust, continue
10-11 the trusteeship or other fiduciary relation and perform all of the
10-12 duties and obligations of the reorganizing bank and exercise all
10-13 the powers and authority relative thereto; and neither the
10-14 reorganization of such bank, nor any liquidation of such bank in
10-15 connection therewith, shall be deemed a resignation or refusal to
10-16 act. The naming or designating by a testator or the creator of a
10-17 living trust of the reorganizing bank to act as trustee, guardian,
10-18 executor, or in any other fiduciary capacity shall be considered
10-19 the naming or designating of the bank resulting from the
10-20 reorganization.
10-21 The new state bank shall give notice of its assumption of the
10-22 liabilities of the reorganizing bank by publishing notice thereof
10-23 once each week for a period of two (2) weeks in some newspaper of
10-24 general circulation published in the county of its domicile, or in
10-25 event no such newspaper is published in said county, then in a
11-1 newspaper of general circulation published in an adjacent county.
11-2 The first notice shall be published within ten (10) days after the
11-3 delivery of the certificate of authority to such bank.
11-4 SECTION 8. Article 12, Chapter III, Texas Banking Code,
11-5 (Article 342-312, Vernon's Texas Civil Statutes), is amended to
11-6 read as follows:
11-7 Art. 342-312. Amendment of Articles of Association--Rights
11-8 of Stockholders upon Increase in Capital--Stock Option Plans.
11-9 Subject to the provisions of this Code, any state bank may amend
11-10 its articles of association for any lawful purpose.
11-11 If the owners of record of two-thirds of the capital stock,
11-12 at any regular meeting of stockholders, or any special meeting
11-13 called for that purpose, vote to amend the charter, the board of
11-14 directors shall prepare, execute in the manner provided for the
11-15 execution of articles of association, and file with the Banking
11-16 Commissioner an amendment to the articles of association. If the
11-17 Banking Commissioner finds that the amendment is not violative of
11-18 law and does not prejudice the interest of depositors and creditors
11-19 or the public, he or she shall approve such amendment and deliver
11-20 to the bank a certified copy thereof, and said amendment shall
11-21 thereupon become effective; provided, however, that if a state bank
11-22 does not have the power to receive demand deposits, no amendments
11-23 of its articles of association adopting any power provided under
11-24 Subsection (a), (b), (c), (d), or (f) of Article 1 of this Chapter
11-25 and no amendment changing the domicile of any state bank shall be
12-1 effective until approved by the Banking Commissioner <State Banking
12-2 Board> in the manner provided for the approval of an original
12-3 application for charter. Any state bank may amend its articles of
12-4 association to extend its corporate existence for a perpetual
12-5 period or for any period of years.
12-6 Each stockholder of a state bank shall be entitled to his or
12-7 her proportionate part of any increase of stock effected out of
12-8 surplus funds or undivided profits, and shall be entitled to
12-9 subscribe for his or her proportionate share of any capital
12-10 increase to be paid in cash; provided, however, the bank may
12-11 arrange for the disposition of fractional shares by those entitled
12-12 thereto or pay in cash the fair value of fractions of a share as of
12-13 the time when those entitled to receive such fractions are
12-14 determined. Each stockholder or his or her assignee, in event he
12-15 or she elects to assign such rights of subscription, shall
12-16 subscribe for and pay the amount of such subscription to the
12-17 corporation within ten (10) days after the stockholders have
12-18 adopted such amendment, otherwise the board of directors may
12-19 allocate the unsubscribed or unpaid portion of the increase among
12-20 the other stockholders or otherwise as they deem to the best
12-21 interest of the bank.
12-22 With prior approval of the owners of record of two-thirds of
12-23 the capital stock, shares of stock in a bank, which are created by
12-24 a capital increase, may be allocated to and purchased by the bank
12-25 out of its surplus which is not certified or out of its undivided
13-1 profits to be held by the bank for fulfilling the requirements of
13-2 an officer or employee stock option or bonus plan, whereby officers
13-3 or employees, or both, of the bank are given options to purchase or
13-4 a bonus of shares of the bank's capital stock at a specified price,
13-5 subject to the following requirements and restrictions:
13-6 The number of shares so held shall not, at any time, exceed
13-7 five percent (5%) of the total number of shares outstanding in the
13-8 hands of other stockholders. Employee benefit plans, including
13-9 employee stock option plans, stock bonus plans, restricted stock
13-10 option or bonus plans, or any other plans, the sole purpose of
13-11 which is to compensate employees of the bank for services rendered
13-12 to the bank, authorized under this Article, may not extend beyond a
13-13 period of ten years from the date of issuance. No officer or
13-14 employee who owns or controls more than five percent (5%) of the
13-15 bank's capital stock shall be eligible to participate or to
13-16 continue participation in a stock option plan authorized by this
13-17 Article.
13-18 SECTION 9. Article 13a, Chapter III, Texas Banking Code,
13-19 (Article 342-313a, Vernon's Texas Civil Statutes is amended to read
13-20 as follows:
13-21 Art. 342-313a. Conversion of National Bank into State Bank.
13-22 A national bank of association located in this state which follows
13-23 the procedures prescribed by the laws of the United States to
13-24 convert into a state bank, shall be granted a certificate of
13-25 incorporation in the state when the Banking Commissioner <State
14-1 Banking Board> finds that the bank meets the standards as to
14-2 location of office, capital structure and business experience of
14-3 officers and directors for the incorporation of a state bank. In
14-4 considering the application for conversion from a national bank
14-5 into a state bank the Banking Commissioner <Board> shall consider
14-6 and determine that the new bank meets with all the requirements of
14-7 a new state bank applicant. Included also in the application for
14-8 conversion and to be considered along with the other information
14-9 submitted shall be the terms of the transition from a national bank
14-10 into a state bank which shall also show that the provisions of
14-11 Public Law 706 of the 81st Congress of the United States have been
14-12 fully satisfied. Such conversion shall be governed by the
14-13 provisions of this Article and shall not be governed by Article 9,
14-14 now codified as Article 342-309, Vernon's Texas Civil Statutes.
14-15 SECTION 10. Article 14, Chapter III, Texas Banking Code,
14-16 (Article 342-314, Vernon's Texas Civil Statutes), is amended to
14-17 read as follows:
14-18 Art. 342-314. Change of Domicile. <(a)> A state bank or
14-19 trust company may change its domicile to any location <one of its
14-20 previously established branch locations> on prior written approval
14-21 of the Banking Commissioner. <A state bank or trust company may
14-22 change its domicile to any other location on prior approval of the
14-23 State Banking Board.>
14-24 <(b) Applications for a change of domicile subject to
14-25 approval of the State Banking Board shall be granted by the State
15-1 Banking Board only upon good and sufficient proof that all the
15-2 following conditions exist:>
15-3 <(1) a public necessity exists for the bank at the
15-4 proposed location;>
15-5 <(2) proposed capital structure is adequate;>
15-6 <(3) volume of business in the community where the
15-7 bank is to be located is such as to indicate profitable operation
15-8 of the bank at that location;>
15-9 <(4) the proposed officers and directors have
15-10 sufficient banking experience, ability, and standing to render
15-11 success of the bank probable; and>
15-12 <(5) the applicants are acting in good faith.>
15-13 <(c) If the proposed relocation of the bank would effect an
15-14 abandonment of all or part of the community presently served by the
15-15 bank, the bank must establish that the abandonment is consistent
15-16 with the original determination of public necessity for the
15-17 establishment of a bank at that location.>
15-18 SECTION 11. Sections 5, 6, 7, 8, and 12 of Article 3a,
15-19 Chapter IX, Texas Banking Code, (Article 342-903a, Vernon's Texas
15-20 Civil Statutes), are amended to read as follows:
15-21 Sec. 5. On written complaint by a bank that is utilizing or
15-22 that seeks to utilize an unmanned teller machine that it is being
15-23 denied the use of the machine on a reasonable, nondiscriminatory
15-24 basis and that the machine is, therefore, not being operated in the
15-25 best interests of the public, the Banking Commissioner <State
16-1 Banking Board> shall have jurisdiction to determine whether or not
16-2 the bank has been denied the right to utilize the machine under
16-3 this article. After a hearing conducted by the Banking
16-4 Commissioner <State Banking Board> in accordance with the
16-5 Administrative Procedure and Texas Register Act, as amended
16-6 (Article 6252-13a, Vernon's Texas Civil Statutes), the Banking
16-7 Commissioner <State Banking Board> may enter an order directing
16-8 compliance with this article and prescribing the manner and means
16-9 of complying with this article.
16-10 Sec. 6. In the event that operation of an unmanned teller
16-11 machine is to be discontinued, notice of intent to discontinue
16-12 shall be given to the Banking Commissioner <State Banking Board>
16-13 not less than 60 days before the date on which operation of the
16-14 machine is to be discontinued, and a copy of that notice shall be
16-15 sent to all institutions using the machine. The Banking
16-16 Commissioner <State Banking Board>, on complaint by an affected
16-17 bank or on its own motion, may delay the discontinuance of
16-18 operation of the unmanned teller machine for a period of not more
16-19 than 60 days past the proposed date of discontinuance if it finds
16-20 that the banks sharing the unmanned teller machine would be
16-21 unfairly prejudiced by discontinuance on the proposed date.
16-22 Sec. 7. Any person who violates this article or any order of
16-23 the Banking Commissioner <State Banking Board> issued pursuant to
16-24 this article is subject to a civil penalty of not less than $50 nor
16-25 more than $1,000 for each day of violation and for each act of
17-1 violation. All civil penalties recovered under this article shall
17-2 be paid to the Banking Department under Article 12, Chapter I of
17-3 this code, as amended (Article 342-112, Vernon's Texas Civil
17-4 Statutes), for the use of the Banking Commissioner <State Banking
17-5 Board> in enforcing this article.
17-6 Sec. 8. Whenever it appears that a person has violated or is
17-7 violating or is threatening to violate this article or any order of
17-8 the Banking Commissioner <State Banking Board> issued pursuant to
17-9 this article, the Banking Commissioner <State Banking Board> may
17-10 cause a civil suit to be instituted in a district court for
17-11 injunctive relief to restrain the person from continuing the
17-12 violation or threat of violation or for the assessment and recovery
17-13 of the civil penalty provided by this article, or for both
17-14 injunctive relief and civil penalty. At the request of the Banking
17-15 Commissioner <State Banking Board>, the attorney general shall
17-16 institute and conduct a suit in the name of the state for
17-17 injunctive relief or for the recovery and receipt of a civil
17-18 penalty, or for both injunctive relief and penalty.
17-19 A suit for injunctive relief or recovery of a civil penalty
17-20 may be brought either in the county where the defendant resides, or
17-21 in the county where the violation or threat of violation occurs.
17-22 In any suit to enjoin a violation or threat of violation of this
17-23 article or of any order of the Banking Commissioner <State Banking
17-24 Board>, the court may grant the Banking Commissioner <State Banking
17-25 Board>, without bond or other undertaking, any prohibitory or
18-1 mandatory injunction as the facts may warrant, including temporary
18-2 restraining orders after notice and hearing, temporary injunctions,
18-3 and permanent injunctions.
18-4 Sec. 12. The legislature finds that the Congress of the
18-5 United States has amended the Consumer Protection Act, as amended
18-6 (15 U.S.C. 1601 et seq.), through passage of the Electronic Fund
18-7 Transfer Act and that the Consumer Protection Act is sufficiently
18-8 comprehensive to provide for the full and complete protection of
18-9 the rights of consumers using unmanned teller machines in this
18-10 state. The legislature further finds that it would not be in the
18-11 best interest of the public of this state to have separate
18-12 regulation of the consumer protection aspect of unmanned teller
18-13 machines by both the state and federal governments. To ensure the
18-14 continuing protection of consumers using the unmanned teller
18-15 machines authorized by this article, Banking Commissioner <State
18-16 Banking Board> and the attorney general are directed to make a
18-17 continuing study of the substantive and procedural provisions of
18-18 the Consumer Protection Act, of the regulations promulgated under
18-19 that Act, and of the effectiveness of enforcement of that Act in
18-20 this state and to report their findings and recommendations to the
18-21 legislature on or before June 30, 1982, and on the same date every
18-22 fourth year after 1981.
18-23 SECTION 12. Sec. 6 of Article 3c, Chapter IX, Texas Banking
18-24 Code, (Article 342-903c, Vernon's Texas Civil Statutes), is amended
18-25 to read as follows:
19-1 Sec. 6. On written complaint by a financial institution that
19-2 is utilizing or that seeks to utilize a system that it is being
19-3 denied the use of that system on a reasonable, nondiscriminatory
19-4 basis, the Banking Commissioner <State Banking Board> shall have
19-5 jurisdiction to determine whether or not the financial institution
19-6 has been denied the right to utilize the system under this article.
19-7 The provisions of Sections 6 and 13, Article 3a, Chapter IX, The
19-8 Texas Banking Code of 1943, as amended (Article 342-903a, Vernon's
19-9 Texas Civil Statutes), shall apply to this article.
19-10 SECTION 13. Article 11.1, Chapter IX, 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. 342-911.1. APPEALS FROM ORDERS OF <STATE BANKING BOARD
19-14 AND> FINANCE COMMISSION. Any person, firm or corporation who is a
19-15 party to, or is necessarily aggrieved by, any final order, ruling
19-16 or 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 the rendition
19-20 of such order, ruling or judgment. Provided, that in such cases
19-21 the substantial evidence rule shall apply and govern the trial, as
19-22 is the common practice in cases or appeal from administrative
19-23 orders 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. Subsection (b), Sec. 1, Article 1, Chapter XI,
20-2 Texas Banking Code (Article 342-1101, Vernon's Texas Civil
20-3 Statutes), is amended to read as follows:
20-4 (b) The Banking Commissioner <State Banking Board> shall
20-5 hear and determine applications for state trust company charters.
20-6 SECTION 15. Subsection (a) of Article 6, Chapter XI, Texas
20-7 Banking Code, (Article 342-1106, Vernon's Texas Civil Statutes), is
20-8 amended to read as follows:
20-9 (a) The Banking Commissioner <State Banking Board> shall
20-10 promulgate and adopt such rules and procedural regulations as may
20-11 be necessary to facilitate the fair hearing and adjudication of
20-12 charter applications.
20-13 SECTION 16. Section 3, Article 6243-23, Revised Statutes, is
20-14 amended to read as follows:
20-15 Sec. 3. Before the issuance of any such warrants, the
20-16 Banking Commissioner <State Banking Board> shall, upon application
20-17 by the Old Age Assistance Commission, determine the rate of
20-18 interest which shall be paid on account of such warrants as
20-19 authorized herein, such interest rate never to exceed two and
20-20 one-half (2 1/2) per centum per annum.
20-21 SECTION 17. Section 3, Article 6243-24, Revised Statutes, is
20-22 amended to read as follows:
20-23 Art. 6243-24. Warrants against Texas Old Age Assistance
20-24 Fund; interest; calling warrants. Sec. 3. Before the issuance of
20-25 any such warrants, the Banking Commissioner <State Banking Board>
21-1 shall, upon application by the Old Age Assistance Commission,
21-2 determine the rate of interest which shall be paid on account of
21-3 such warrants as authorized herein, such interest rate never to
21-4 exceed two and one-half (2 1/2) per centum per annum.
21-5 SECTION 18. Subsection 5(A), Section 2, Chapter 421, Acts of
21-6 the 63rd Legislature, Regular Session, 1973 (Article 6252-9b,
21-7 Vernon's Texas Civil Statutes), is amended to read as follows:
21-8 (5)(A) "Appointed officer of a major state agency"
21-9 means any of the following:
21-10 (i) a member of the Public Utility Commission of Texas;
21-11 (ii) a member of the Texas Department of Commerce;
21-12 (iii) a member of the Texas Board of Aviation;
21-13 (iv) a member of the Texas Air Control Board;
21-14 (v) a member of the Texas Alcoholic Beverage Commission;
21-15 (vi) a member of the Finance Commission of Texas;
21-16 (vii) a member of the State Purchasing and General Services
21-17 Commission;
21-18 (viii) a member of the Texas Board of Criminal Justice;
21-19 (ix) a member of the Board of Trustees of the Employees
21-20 Retirement System of Texas;
21-21 (x) a member of the State Highway and Public Transportation
21-22 Commission;
21-23 (xi) a member of the Texas Workers' Compensation Commission;
21-24 (xii) a member of the State Board of Insurance;
21-25 (xiii) a member of the Parks and Wildlife Commission;
22-1 (xiv) a member of the Public Safety Commission;
22-2 (xv) the Secretary of State;
22-3 (xvi) a member of the State Securities Board;
22-4 (xvii) a member of the Texas Amusement Machine Commission;
22-5 (xviii) a member of the Texas Water Development Board;
22-6 (xix) a member of the Texas Water Commission;
22-7 (xx) a member of the governing board of a state senior
22-8 college or university as defined by Section 61.003, Education Code,
22-9 including The University of Texas at Arlington; The University of
22-10 Texas at Austin; The University of Texas at Dallas; The University
22-11 of Texas at El Paso; The University of Texas--Pan American; The
22-12 University of Texas--Pan American--Brownsville--The University of
22-13 Texas of the Permian Basin; The University of Texas at San Antonio;
22-14 The University of Texas at Tyler; The University of Texas
22-15 Southwestern Medical Center at Dallas; The University of Texas
22-16 Medical Branch at Galveston; The University of Texas Health Science
22-17 Center at Houston; The University of Texas Health Science Center at
22-18 San Antonio; The University of Texas System Cancer Center; The
22-19 University of Texas Health Science Center at Tyler; Texas A&M
22-20 University; Texas A&M University at Galveston; Prairie View A&M
22-21 University; Tarleton State University; Corpus Christi State
22-22 University; Texas A&I University; Laredo State University; East
22-23 Texas State University; East Texas State University at Texarkana;
22-24 University of Houston; University of Houston--Clear Lake;
22-25 University of Houston--Downtown; University of Houston--Victoria;
23-1 Lamar University at Beaumont; Lamar University at Orange; Lamar
23-2 University at Port Arthur; Midwestern State University; University
23-3 of North Texas; Texas College of Osteopathic Medicine; Stephen F.
23-4 Austin State University; Texas Southern University; Texas Tech
23-5 University; Texas Tech University Health Sciences Center; Texas
23-6 Woman's University; West Texas State University; Angelo State
23-7 University; Sam Houston State University; Southwest Texas State
23-8 University; Sul Ross State University; Sul Ross State
23-9 University--Uvalde Center; Texas State Technical
23-10 Institute--Amarillo; Texas State Technical Institute--Harlingen;
23-11 Texas State Technical Institute--Sweetwater; and Texas State
23-12 Technical Institute--Waco;
23-13 (xxi) a member of the Texas Higher Education Coordinating
23-14 Board;
23-15 (xxii) a member of the Texas Employment Commission;
23-16 (xxiii) a member of the board of trustees of the Teachers
23-17 Retirement System of Texas; <a member of the State Banking Board;>
23-18 (xxiv) a member of the Credit Union Commission; <a member of
23-19 the board of trustees of the Teachers Retirement System of Texas;>
23-20 (xxv) a member of the School Land Board <a member of the
23-21 Credit Union Commission;>
23-22 (xxvi) a member of the board of the Texas Department of
23-23 Housing and Community Affairs; <a member of the School Land Board;>
23-24 (xxvii) a member of the Texas Racing Commission; <a member
23-25 of the board of the Texas Department of Housing and Community
24-1 Affairs;>
24-2 (xxviii) a member of the State Board of Dental Examiners <a
24-3 member of the Texas Racing Commission;>
24-4 (xxix) a member of the Texas Board of Licensure for Nursing
24-5 Home Administrators; <a member of the State Board of Dental
24-6 Examiners;>
24-7 (xxx) a member of the Texas State Board of Medical
24-8 Examiners; <a member of the Texas Board of Licensure for Nursing
24-9 Home Administrators;>
24-10 (xxxi) a member of the Board of Pardons and Paroles; <a
24-11 member of the Texas State Board of Medical Examiners;>
24-12 (xxxii) a member of the Texas State Board of Pharmacy; <a
24-13 member of the Board of Pardons and Paroles;>
24-14 (xxxiii) the Banking Commissioner of the Banking Department
24-15 of Texas; <a member of the Texas State Board of Pharmacy;>
24-16 (xxxiv) a member of the Department of Information Resources
24-17 Governing Board; <the Banking Commissioner of the Banking
24-18 Department of Texas;>
24-19 (xxxv) the fire fighters' pension commissioner; <a member of
24-20 the Department of Information Resources Governing Board;>
24-21 (xxxvi) a member of the Texas Motor Vehicle Commission <the
24-22 fire fighters' pension commissioner;>
24-23 (xxxvii) the director of the Office of Court Administration
24-24 of the Texas Judicial System; <a member of the Texas Motor Vehicle
24-25 Commission;>
25-1 (xxxviii) the chief executive of the Office of Public
25-2 Utility Counsel; <the director of the Office of Court
25-3 Administration of the Texas Judicial System;>
25-4 (xxxix) a member of the Texas Real Estate Commission; <the
25-5 chief executive of the Office of Public Utility Counsel;>
25-6 (xl) a member of the board of directors and the executive
25-7 director of the State Bar of Texas; <a member of the Texas Real
25-8 Estate Commission;>
25-9 (xli) a member of the Bond Review Board; <a member of the
25-10 board of directors and the executive director of the State Bar of
25-11 Texas;>
25-12 (xlii) a member of the Texas Board of Health; <a member of
25-13 the Bond Review Board;>
25-14 (xliii) a member of the Texas Board of Mental Health and
25-15 Mental Retardation; <a member of the Texas Board of Health;>
25-16 (xliv) a member of the Texas Board on Aging; <a member of
25-17 the Texas Board of Mental Health and Mental Retardation;>
25-18 (xlv) a member of the Texas Board of Human Services; <a
25-19 member of the Texas Board on Aging;>
25-20 (xlvi) a member of the Texas Funeral Service Commission <a
25-21 member of the Texas Board of Human Services;>
25-22 (xlvii) a member of the board of directors of a river
25-23 authority created under the constitution or laws of this state; <a
25-24 member of the Texas Funeral Service Commission;>
25-25 (xliii) the director of the lottery division in the office
26-1 of the comptroller; or <a member of the board of directors of a
26-2 river authority created under the constitution or laws of this
26-3 state;>
26-4 (xlix) the deputy in charge of the department of security in
26-5 the lottery division in the office of the comptroller. <the
26-6 director of the lottery division in the office of the comptroller;
26-7 or>
26-8 SECTION 19. Subsection (e), Section 21, Administrative
26-9 Procedure and Texas Register Act, (Article 6252-13a, Vernon's Texas
26-10 Civil Statutes), is amended to read as follows:
26-11 (e) Sections 12 through 20 of this Act do not apply to
26-12 action by the Commissioner of Banking <or the State Banking Board>
26-13 with respect to the issuance of a state bank charter for a bank to
26-14 assume the assets and liabilities of a state bank the commissioner
26-15 deems to be in an unsafe condition as defined in Section 1, Article
26-16 1a, Chapter VIII, Texas Banking Code of 1943.
26-17 SECTION 20. The importance of this legislation and the
26-18 crowded condition of the calendars in both houses create an
26-19 emergency and an imperative public necessity that the
26-20 constitutional rule requiring bills to be read on three several
26-21 days in each house be suspended, and this rule is hereby suspended,
26-22 and that this Act take effect and be in force from and after its
26-23 passage, and it is so enacted.