1-1 By: Romo (Senate Sponsor - Lucio) H.B. No. 1791
1-2 (In the Senate - Received from the House April 26, 1993;
1-3 April 28, 1993, read first time and referred to Committee on
1-4 Economic Development; May 24, 1993, reported favorably by the
1-5 following vote: Yeas 9, Nays 0; May 24, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Parker x
1-9 Lucio x
1-10 Ellis x
1-11 Haley x
1-12 Harris of Dallas x
1-13 Harris of Tarrant x
1-14 Leedom x
1-15 Madla x
1-16 Rosson x
1-17 Shapiro x
1-18 Wentworth x
1-19 A BILL TO BE ENTITLED
1-20 AN ACT
1-21 relating to the abolishment of the State Banking Board and the
1-22 transfer of the duties of the State Banking Board to the Banking
1-23 Commissioner.
1-24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-25 SECTION 1. The chapter heading to Chapter I, The Texas
1-26 Banking Code (Article 342-101 et seq., Vernon's Texas Civil
1-27 Statutes), is amended to read as follows:
1-28 CHAPTER ONE--SCOPE OF ACT, DEFINITIONS, AND FINANCE
1-29 COMMISSION <AND STATE BANKING BOARD>
1-30 SECTION 2. Section 3, Article 6, Chapter I, The Texas
1-31 Banking Code (Article 342-106, Vernon's Texas Civil Statutes), is
1-32 amended to read as follows:
1-33 3. Members of the Finance Commission shall, subject to the
1-34 provisions of Article 7 of this Chapter, serve until their
1-35 successors are appointed and have qualified by taking oath in the
1-36 form prescribed by the <State> Banking Commissioner <Board>.
1-37 SECTION 3. Article 7, Chapter II, The Texas Banking Code
1-38 (Article 342-207, Vernon's Texas Civil Statutes), is amended to
1-39 read as follows:
1-40 Art. 7. Banking Commissioner--General Powers--Duties--
1-41 Liabilities of Banking Commissioner and Others--Defense by Attorney
1-42 General. (a) The Banking Commissioner shall supervise and shall
1-43 regulate, as provided in this Code, all state and private banks and
1-44 shall enforce the provisions of this Code in person or through the
1-45 Deputy Banking Commissioner, the Departmental Examiner or any
1-46 examiner.
1-47 (b) The Banking Commissioner, each member of the Finance
1-48 Commission, <each member of the State Banking Board,> the Deputy
1-49 Banking Commissioner, the Departmental Examiner, the Liquidating
1-50 Supervisor, each examiner, assistant examiner, and special agent,
1-51 and each other officer and employee of the State Banking Department
1-52 shall not be personally liable for damages occasioned by the
1-53 officer's or employee's <his> official acts or omissions except
1-54 when such acts or omissions are corrupt or malicious. The Attorney
1-55 General shall defend any action brought against any of the above
1-56 mentioned officers or employees by reason of the officer's or
1-57 employee's <his> official act or omission, whether or not at the
1-58 time of the institution of the action the defendant has terminated
1-59 the officer's or employee's <his> service with the Department.
1-60 (c) The Banking Commissioner shall hear and determine
1-61 applications for State banking charters.
1-62 (d) The Banking Commissioner shall adopt and publish rules
1-63 and procedural regulations as may be necessary to facilitate the
1-64 fair hearing and adjudication of charter applications.
1-65 SECTION 4. Section (a), Article 10, Chapter II, The Texas
1-66 Banking Code (Article 342-210, Vernon's Texas Civil Statutes), is
1-67 amended to read as follows:
1-68 (a) Subject to the provisions of Section 5 of Chapter 183 of
2-1 the Forty-fourth Legislature of Texas (1935), page 461 (Article
2-2 489b, Section 5), and any other statutory provision of this State,
2-3 all information obtained, either directly or indirectly, by the
2-4 Banking Department relative to the financial condition of any bank
2-5 or bank holding company other than call reports and profit and loss
2-6 statements, whether obtained through examination or otherwise,
2-7 except published statements, and all files and records of said
2-8 Department relative thereto shall be confidential, and shall not be
2-9 disclosed by the Banking Commissioner or any officer or employee of
2-10 said Department. Further provided that no such information shall
2-11 be divulged to any member of the Finance Commission, nor shall any
2-12 member of the Finance Commission be given access to such files and
2-13 records of the Banking Department; provided, however, that the
2-14 Banking Commissioner may disclose to the Finance Commission <or to
2-15 the State Banking Board> information, files and records pertinent
2-16 to any hearing or matter pending before such Commission <or such
2-17 Board>. Further provided that upon request, the Banking
2-18 Commissioner may disclose to a Federal Reserve Bank any information
2-19 relative to its members, and shall permit it access to any files
2-20 and records or reports relating to its members. Further provided
2-21 that the Banking Commissioner may, in the Banking Commissioner's
2-22 <his> discretion, if the Banking Commissioner <he> deems it
2-23 necessary or proper to the enforcement of the laws of this State,
2-24 another state, or the United States, and to the best interest of
2-25 the public, divulge such information to any other department of
2-26 this State, another state, or the National Government, or any
2-27 agency or instrumentality thereof.
2-28 SECTION 5. Article 5, Chapter III, The Texas Banking Code
2-29 (Article 342-305, Vernon's Texas Civil Statutes), is amended by
2-30 amending Sections B, C, and D and adding Sections G and H to read
2-31 as follows:
2-32 B. Applicants desiring to incorporate a State bank shall
2-33 file with the Banking Commissioner an application for charter upon
2-34 official forms prepared and prescribed by the Banking Commissioner.
2-35 All persons subscribing to the capital stock of the proposed bank
2-36 shall sign and verify under oath a statement of such stock
2-37 subscribed, and which statement shall truly report the number of
2-38 shares and the amount to be paid in consideration; the names,
2-39 identity, title and address of any other persons who will be
2-40 beneficial owners of such stock or otherwise share an interest or
2-41 ownership in said stock, or who will pay any portion of the
2-42 consideration; whether said stock is to be pledged as security for
2-43 any loan; whether a loan has been committed or is intended for the
2-44 subscription and purchase of said stock, and if so, the name and
2-45 address of such person or corporation which is intended to loan
2-46 funds for said purchase; the names of any cosigners, guarantors,
2-47 partners or other persons liable for the repayment of any loan
2-48 financing the purchase of such stock. Provided, however, that the
2-49 verified statement of subscribers to stock shall be confidential
2-50 and privileged from public disclosure prior to the final
2-51 determination by the Banking Commissioner <Board> of the
2-52 application for a charter, unless the Banking Commissioner <Board>
2-53 shall find that public disclosure prior to public hearing and final
2-54 determination of the charter application is necessary to a full
2-55 development of the factual record.
2-56 C. The Banking Commissioner shall require deposit of such
2-57 charter fees as are required by law and shall proceed to conduct a
2-58 thorough investigation of the application, the applicants and their
2-59 personnel, and the charter conditions alleged. The actual expense
2-60 of such investigation and report shall be paid by the applicants,
2-61 and the Banking Commissioner may require a deposit in an estimated
2-62 amount, the balance to be paid in full prior to hearing of the
2-63 application. A written report of the investigation shall be
2-64 <furnished to the State Banking Board and shall be> made available
2-65 to all interested parties at their request.
2-66 D. Upon filing of the application, the Banking Commissioner
2-67 shall promptly set the time and place for public hearing of the
2-68 application for charter, giving the applicants reasonable notice
2-69 thereof. Before the 10th day preceding the day on which the
2-70 hearing is held, the Banking Commissioner shall publish notice of
3-1 the hearing in a newspaper of general circulation in the county
3-2 where the proposed bank is to be located. If a protest of the
3-3 application is not filed, the Banking Commissioner may cancel the
3-4 hearing, and if the Banking Commissioner does so, the Banking
3-5 Commissioner <Board> shall <vote to> determine whether the
3-6 necessary conditions set out in Section A of this article have been
3-7 established, based on the application. If the Banking Commissioner
3-8 denies <Board votes to deny> the application, the Banking
3-9 Commissioner shall notify the applicant and the applicant may
3-10 request a hearing on the application not later than the 30th day
3-11 after the date on which the notice is sent to the applicant. After
3-12 full and public hearing the Banking Commissioner shall <Board shall
3-13 vote and> determine whether the necessary conditions set out in
3-14 Section A above have been established. Should the Banking
3-15 Commissioner <Board, or a majority of the Board,> determine all of
3-16 the said conditions affirmatively, then the application shall be
3-17 approved; if not, then the application shall be denied. If
3-18 approved, and when the Banking Commissioner receives satisfactory
3-19 evidence that the capital has been paid in full in cash, the
3-20 Banking Commissioner shall deliver to the incorporators a certified
3-21 copy of the Articles of Association, and the bank shall come into
3-22 corporate existence. Provided however, that the <State> Banking
3-23 Commissioner <Board> may make <its> approval of any application
3-24 conditional, and in such event shall set out such condition in the
3-25 resolution granting the charter, and the Banking Commissioner shall
3-26 not deliver the certified copy of the Articles of Association until
3-27 such condition has been met<, after which the Banking Commissioner
3-28 shall in writing inform the State Banking Board as to compliance
3-29 with such condition and delivery of the Articles of Association>.
3-30 G. If the Banking Commissioner denies an application the
3-31 applicant may appeal the decision of the Banking Commissioner for
3-32 judicial review.
3-33 H. Judicial review of a decision of the Banking Commissioner
3-34 regarding an application for a charter is under the substantial
3-35 evidence rule and is instituted by filing a petition with a
3-36 district court in Travis County as provided by Section 19,
3-37 Administrative Procedure and Texas Register Act (Article 6252-13a,
3-38 Vernon's Texas Civil Statutes), and its subsequent amendments.
3-39 SECTION 6. Article 7, Chapter III, The Texas Banking Code
3-40 (Article 342-307, Vernon's Texas Civil Statutes), is amended to
3-41 read as follows:
3-42 Art. 7. Certificate of Authority--Posting--Revocation of
3-43 Charter. No state bank may do business until it receives a
3-44 certificate of authority from the Banking Commissioner, which shall
3-45 not be delivered until it has elected the officers and directors
3-46 named in the application for charter or other officers and
3-47 directors approved by the Banking Commissioner; shall have adopted
3-48 by-laws approved by the Banking Commissioner; and shall have
3-49 complied with all the other requirements of this Code relative to
3-50 the incorporation of state banks.
3-51 If any state bank does not open and actually engage in
3-52 business within three months after the granting of its charter, or
3-53 conditional approval of application for charter, the Banking
3-54 Commissioner may <so inform the State Banking Board which may> in
3-55 the Banking Commissioner's <its> discretion forfeit the charter or
3-56 cancel the <its> conditional approval of application for charter,
3-57 without any judicial action.
3-58 Each state bank shall keep its certificate of authority
3-59 posted in its lobby at a point accessible to the public.
3-60 SECTION 7. Article 9, Chapter III, The Texas Banking Code
3-61 (Article 342-309, Vernon's Texas Civil Statutes), is amended to
3-62 read as follows:
3-63 Art. 9. REORGANIZATION--INCORPORATION TO TAKE OVER BUSINESS
3-64 OF OTHER BANKS--TRUST POWERS. A state bank may be incorporated to
3-65 take over the business of any incorporated bank or banks, state or
3-66 national, as a step in the reorganization of such bank or banks,
3-67 (which bank or banks, whether one or more, will be hereafter
3-68 referred to as the "reorganizing bank"), and shall, subject to the
3-69 provisions of this article, be authorized to purchase assets from
3-70 the reorganizing bank and as consideration therefor, assume all
4-1 liabilities, known or unknown, of the reorganizing bank, other than
4-2 its liability to stockholders as such.
4-3 Persons desiring to incorporate a state bank under the
4-4 provisions of this article shall proceed in the manner provided in
4-5 Article 5 of this Chapter, and in addition, shall file with the
4-6 Banking Commissioner:
4-7 (1) The proposed contract whereby the state bank is to
4-8 purchase the assets from and assume the liabilities of the
4-9 reorganizing bank, as above mentioned.
4-10 (2) Contracts, if any, whereby the proposed state bank
4-11 is to purchase for cash the whole or any part of the right of any
4-12 or all of the stockholders of the reorganizing bank to receive
4-13 liquidating dividends upon liquidation of the reorganizing bank,
4-14 which contracts shall expressly provide that they shall be binding
4-15 and effective only in event the reorganizing bank is placed in
4-16 voluntary liquidation within ten (10) days of the granting of the
4-17 application for the charter applied for. Such contracts shall be
4-18 executed on behalf of the proposed bank by the persons applying for
4-19 the charter.
4-20 If the Banking Commissioner, after investigation, determines
4-21 that the proposed bank, if incorporated, will, after its capital
4-22 has been paid in full and all contracts above mentioned finally
4-23 consummated, be solvent, its capital adequate and unimpaired, that
4-24 such reorganization is to the best interest of the reorganizing
4-25 bank, its depositors, creditors and stockholders and the public in
4-26 general, and that upon incorporation such bank will have in all
4-27 other respects complied with the law, the Banking Commissioner <he>
4-28 shall grant the application <recommend to the State Banking Board
4-29 that the charter be granted>.
4-30 The <If the State Banking Board concurs in the findings of
4-31 the Banking Commissioner, it shall grant the application, and the>
4-32 Banking Commissioner shall deliver a certified copy of the articles
4-33 of association in the manner provided in Article 5 of this chapter.
4-34 Provided, however, that the Banking Commissioner shall not deliver
4-35 a certificate of authority until the contracts above mentioned have
4-36 been fully consummated, and the requirements of Article 7 of this
4-37 chapter have been met. The state bank so incorporated shall be
4-38 deemed a reorganization of the reorganizing bank, and a
4-39 continuation of such bank in entity and identity, subject to all of
4-40 its liabilities, obligations, duties and relations, save and except
4-41 its liability to stockholders as such, and shall pay and perform
4-42 each and every obligation, duty and liability of the reorganizing
4-43 bank in exactly the same manner as the reorganizing bank was
4-44 obligated to do; further provided that if the reorganizing bank was
4-45 at the time of incorporation of the new state bank, named or acting
4-46 as guardian, trustee, executor, administrator or in any other
4-47 fiduciary capacity, such state bank shall, without the necessity of
4-48 any judicial action, or action by the creator of such trust,
4-49 continue the trusteeship or other fiduciary relation and perform
4-50 all of the duties and obligations of the reorganizing bank and
4-51 exercise all the powers and authority relative thereto; and neither
4-52 the reorganization of such bank, nor any liquidation of such bank
4-53 in connection therewith, shall be deemed a resignation or refusal
4-54 to act. The naming or designating by a testator or the creator of
4-55 a living trust of the reorganizing bank to act as trustee,
4-56 guardian, executor, or in any other fiduciary capacity shall be
4-57 considered the naming or designating of the bank resulting from the
4-58 reorganization.
4-59 The new state bank shall give notice of its assumption of the
4-60 liabilities of the reorganizing bank by publishing notice thereof
4-61 once each week for a period of two (2) weeks in some newspaper of
4-62 general circulation published in the county of its domicile, or in
4-63 event no such newspaper is published in said county, then in a
4-64 newspaper of general circulation published in an adjacent county.
4-65 The first notice shall be published within ten (10) days after the
4-66 delivery of the certificate of authority to such bank.
4-67 SECTION 8. Article 12, Chapter III, The Texas Banking Code
4-68 (Article 342-312, Vernon's Texas Civil Statutes), is amended to
4-69 read as follows:
4-70 Art. 12. AMENDMENT OF ARTICLES OF ASSOCIATION--RIGHTS OF
5-1 STOCKHOLDERS UPON INCREASE IN CAPITAL--STOCK OPTION PLANS. Subject
5-2 to the provisions of this Code, any state bank may amend its
5-3 articles of association for any lawful purpose.
5-4 If the owners of record of two-thirds of the capital stock,
5-5 at any regular meeting of stockholders, or any special meeting
5-6 called for that purpose, vote to amend the charter, the board of
5-7 directors shall prepare, execute in the manner provided for the
5-8 execution of articles of association, and file with the Banking
5-9 Commissioner an amendment to the articles of association. If the
5-10 Banking Commissioner finds that the amendment is not violative of
5-11 law and does not prejudice the interest of depositors and creditors
5-12 or the public, the Banking Commissioner <he> shall approve such
5-13 amendment and deliver to the bank a certified copy thereof, and
5-14 said amendment shall thereupon become effective; provided, however,
5-15 that if a state bank does not have the power to receive demand
5-16 deposits, no amendments of its articles of association adopting any
5-17 power provided under Subsection (a), (b), (c), (d), or (f) of
5-18 Article 1 of this Chapter and no amendment changing the domicile of
5-19 any state bank shall be effective until approved by the <State>
5-20 Banking Commissioner <Board> in the manner provided for the
5-21 approval of an original application for charter. Any state bank
5-22 may amend its articles of association to extend its corporate
5-23 existence for a perpetual period or for any period of years.
5-24 Each stockholder of a state bank shall be entitled to the
5-25 stockholder's <his> proportionate part of any increase of stock
5-26 effected out of surplus funds or undivided profits, and shall be
5-27 entitled to subscribe for the stockholder's <his> proportionate
5-28 share of any capital increase to be paid in cash; provided,
5-29 however, the bank may arrange for the disposition of fractional
5-30 shares by those entitled thereto or pay in cash the fair value of
5-31 fractions of a share as of the time when those entitled to receive
5-32 such fractions are determined. Each stockholder or the
5-33 stockholder's <his> assignee, in event the stockholder <he> elects
5-34 to assign such rights of subscription, shall subscribe for and pay
5-35 the amount of such subscription to the corporation within ten (10)
5-36 days after the stockholders have adopted such amendment, otherwise
5-37 the board of directors may allocate the unsubscribed or unpaid
5-38 portion of the increase among the other stockholders or otherwise
5-39 as they deem to the best interest of the bank.
5-40 With prior approval of the owners of record of two-thirds of
5-41 the capital stock, shares of stock in a bank, which are created by
5-42 a capital increase, may be allocated to and purchased by the bank
5-43 out of its surplus which is not certified or out of its undivided
5-44 profits to be held by the bank for fulfilling the requirements of
5-45 an officer or employee stock option or bonus plan, whereby officers
5-46 or employees, or both, of the bank are given options to purchase or
5-47 a bonus of shares of the bank's capital stock at a specified price,
5-48 subject to the following requirements and restrictions:
5-49 The number of shares so held shall not, at any time, exceed
5-50 five percent (5%) of the total number of shares outstanding in the
5-51 hands of other stockholders. Employee benefit plans, including
5-52 employee stock option plans, stock bonus plans, restricted stock
5-53 option or bonus plans, or any other plans, the sole purpose of
5-54 which is to compensate employees of the bank for services rendered
5-55 to the bank, authorized under this Article, may not extend beyond a
5-56 period of ten years from the date of issuance. No officer or
5-57 employee who owns or controls more than five percent (5%) of the
5-58 bank's capital stock shall be eligible to participate or to
5-59 continue participation in a stock option plan authorized by this
5-60 Article.
5-61 SECTION 9. Article 13a, Chapter III, The Texas Banking Code
5-62 (Article 342-313a, Vernon's Texas Civil Statutes), is amended to
5-63 read as follows:
5-64 Art. 13a. CONVERSION OF NATIONAL BANK INTO STATE BANK. A
5-65 national bank or association located in this state which follows
5-66 the procedures prescribed by the laws of the United States to
5-67 convert into a state bank, shall be granted a certificate of
5-68 incorporation in the state when the Banking Commissioner <State
5-69 Banking Board> finds that the bank meets the standards as to
5-70 location of office, capital structure and business experience of
6-1 officers and directors for the incorporation of a state bank. In
6-2 considering the application for conversion from a national bank
6-3 into a state bank the Banking Commissioner <Board> shall consider
6-4 and determine that the new bank meets with all the requirements of
6-5 a new state bank applicant. Included also in the application for
6-6 conversion and to be considered along with the other information
6-7 submitted shall be the terms of the transition from a national bank
6-8 into a state bank which shall also show that the provisions of
6-9 Public Law 706 of the 81st Congress of the United States have been
6-10 fully satisfied. Such conversion shall be governed by the
6-11 provisions of this Article and shall not be governed by Article 9,
6-12 now codified as Article 342-309, Vernon's Texas Civil Statutes.
6-13 SECTION 10. Sections (a) and (b), Article 14, Chapter III,
6-14 The Texas Banking Code (Article 342-314, Vernon's Texas Civil
6-15 Statutes), are amended to read as follows:
6-16 (a) A state bank or trust company may change its domicile to
6-17 <one of its previously established branch locations on prior
6-18 written approval of the Banking Commissioner. A state bank or
6-19 trust company may change its domicile to> any other location on
6-20 prior approval of the <State> Banking Commissioner <Board>.
6-21 (b) Applications for a change of domicile subject to
6-22 approval of the <State> Banking Commissioner <Board> shall be
6-23 granted by the <State> Banking Commissioner <Board> only upon good
6-24 and sufficient proof that all the following conditions exist:
6-25 (1) a public necessity exists for the bank at the
6-26 proposed location;
6-27 (2) proposed capital structure is adequate;
6-28 (3) volume of business in the community where the bank
6-29 is to be located is such as to indicate profitable operation of the
6-30 bank at that location;
6-31 (4) the proposed officers and directors have
6-32 sufficient banking experience, ability, and standing to render
6-33 success of the bank probable; and
6-34 (5) the applicants are acting in good faith.
6-35 SECTION 11. Sections 5-8, and 12, Article 3a, Chapter IX,
6-36 The Texas Banking Code (Article 342-903a, Vernon's Texas Civil
6-37 Statutes), are amended to read as follows:
6-38 Sec. 5. On written complaint by a bank that is utilizing or
6-39 that seeks to utilize an unmanned teller machine that it is being
6-40 denied the use of the machine on a reasonable, nondiscriminatory
6-41 basis and that the machine is, therefore, not being operated in the
6-42 best interests of the public, the <State> Banking Commissioner
6-43 <Board> shall have jurisdiction to determine whether or not the
6-44 bank has been denied the right to utilize the machine under this
6-45 article. After a hearing conducted by the Banking Commissioner
6-46 <State Banking Board> in accordance with the Administrative
6-47 Procedure and Texas Register Act, as amended (Article 6252-13a,
6-48 Vernon's Texas Civil Statutes), the <State> Banking Commissioner
6-49 <Board> may enter an order directing compliance with this article
6-50 and prescribing the manner and means of complying with this
6-51 article.
6-52 Sec. 6. In the event that operation of an unmanned teller
6-53 machine is to be discontinued, notice of intent to discontinue
6-54 shall be given to the <State> Banking Commissioner <Board> not less
6-55 than 60 days before the date on which operation of the machine is
6-56 to be discontinued, and a copy of that notice shall be sent to all
6-57 institutions using the machine. The <State> Banking Commissioner
6-58 <Board>, on complaint by an affected bank or on the Banking
6-59 Commissioner's <its> own motion, may delay the discontinuance of
6-60 operation of the unmanned teller machine for a period of not more
6-61 than 60 days past the proposed date of discontinuance if the
6-62 Banking Commissioner <it> finds that the banks sharing the unmanned
6-63 teller machine would be unfairly prejudiced by discontinuance on
6-64 the proposed date.
6-65 Sec. 7. Any person who violates this article or any order of
6-66 the <State> Banking Commissioner <Board> issued pursuant to this
6-67 article is subject to a civil penalty of not less than $50 nor more
6-68 than $1,000 for each day of violation and for each act of
6-69 violation. All civil penalties recovered under this article shall
6-70 be paid to the Banking Department under Article 12, Chapter I of
7-1 this code, as amended (Article 342-112, Vernon's Texas Civil
7-2 Statutes), for the use of the <State> Banking Commissioner <Board>
7-3 in enforcing this article.
7-4 Sec. 8. Whenever it appears that a person has violated or is
7-5 violating or is threatening to violate this article or any order of
7-6 the <State> Banking Commissioner <Board> issued pursuant to this
7-7 article, the <State> Banking Commissioner <Board> may cause a civil
7-8 suit to be instituted in a district court for injunctive relief to
7-9 restrain the person from continuing the violation or threat of
7-10 violation or for the assessment and recovery of the civil penalty
7-11 provided by this article, or for both injunctive relief and civil
7-12 penalty. At the request of the <State> Banking Commissioner
7-13 <Board>, the attorney general shall institute and conduct a suit in
7-14 the name of the state for injunctive relief or for the recovery and
7-15 receipt of a civil penalty, or for both injunctive relief and
7-16 penalty.
7-17 A suit for injunctive relief or recovery of a civil penalty
7-18 may be brought either in the county where the defendant resides, or
7-19 in the county where the violation or threat of violation occurs.
7-20 In any suit to enjoin a violation or threat of violation of this
7-21 article or of any order of the <State> Banking Commissioner
7-22 <Board>, the court may grant the <State> Banking Commissioner
7-23 <Board>, without bond or other undertaking, any prohibitory or
7-24 mandatory injunction as the facts may warrant, including temporary
7-25 restraining orders after notice and hearing, temporary injunctions,
7-26 and permanent injunctions.
7-27 Sec. 12. The legislature finds that the Congress of the
7-28 United States has amended the Consumer Protection Act, as amended
7-29 (15 U.S.C. 1601 et seq.), through passage of the Electronic Fund
7-30 Transfer Act and that the Consumer Protection Act is sufficiently
7-31 comprehensive to provide for the full and complete protection of
7-32 the rights of consumers using unmanned teller machines in this
7-33 state. The legislature further finds that it would not be in the
7-34 best interest of the public of this state to have separate
7-35 regulation of the consumer protection aspects of unmanned teller
7-36 machines by both the state and federal governments. To ensure the
7-37 continuing protection of consumers using the unmanned teller
7-38 machines authorized by this article, the <State> Banking
7-39 Commissioner <Board> and the attorney general are directed to make
7-40 a continuing study of the substantive and procedural provisions of
7-41 the Consumer Protection Act, of the regulations promulgated under
7-42 that Act, and of the effectiveness of enforcement of that Act in
7-43 this state and to report their findings and recommendations to the
7-44 legislature on or before June 30, 1981, and on the same date every
7-45 fourth year after 1981.
7-46 SECTION 12. Section 6, Article 3c, Chapter IX, The Texas
7-47 Banking Code (Article 342-903c, Vernon's Texas Civil Statutes), is
7-48 amended to read as follows:
7-49 Sec. 6. Compliance. On written complaint by a financial
7-50 institution that is utilizing or that seeks to utilize a system
7-51 that it is being denied the use of that system on a reasonable,
7-52 nondiscriminatory basis, the <State> Banking Commissioner <Board>
7-53 shall have jurisdiction to determine whether or not the financial
7-54 institution has been denied the right to utilize the system under
7-55 this article. The provisions of Sections 6 and 13, Article 3a,
7-56 Chapter IX, The Texas Banking Code of 1943, as amended (Article
7-57 342-903a, Vernon's Texas Civil Statutes), shall apply to this
7-58 article.
7-59 SECTION 13. Article 11.1, Chapter IX, The Texas Banking Code
7-60 (Article 342-911.1, Vernon's Texas Civil Statutes), is amended to
7-61 read as follows:
7-62 Art. 11.1. Appeals From Orders of <State Banking Board and>
7-63 Finance Commission. Any person, firm or corporation who is a party
7-64 to, or is necessarily aggrieved by, any final order, ruling or
7-65 judgment of the <State Banking Board or the> Finance Commission
7-66 shall have the right to appeal by filing a suit to set aside such
7-67 order, ruling or judgment in the District Court of Travis County,
7-68 Texas, within thirty (30) days following the date of rendition of
7-69 such order, ruling or judgment. Provided, that in such cases the
7-70 substantial evidence rule shall apply and govern the trial, as is
8-1 the common practice in cases of appeal from administrative orders
8-2 and as construed by the courts of this State. Pending final
8-3 judgment of the court the order shall remain in effect, unless
8-4 otherwise stayed or enjoined by the court upon proper application.
8-5 SECTION 14. Section 1, Article 1, Chapter XI, The Texas
8-6 Banking Code (Article 342-1101, Vernon's Texas Civil Statutes), is
8-7 amended by amending Subsection (b) and adding Subsections (c) and
8-8 (d) to read as follows:
8-9 (b) The <State> Banking Commissioner <Board> shall hear and
8-10 determine applications for state trust company charters.
8-11 (c) If the Banking Commissioner denies an application the
8-12 applicant may appeal the decision of the Banking Commissioner for
8-13 judicial review.
8-14 (d) Judicial review of a decision of the Banking
8-15 Commissioner regarding an application for a charter is under the
8-16 substantial evidence rule and is instituted by filing a petition
8-17 with a district court in Travis County as provided by Section 19,
8-18 Administrative Procedure and Texas Register Act (Article 6252-13a,
8-19 Vernon's Texas Civil Statutes), and its subsequent amendments.
8-20 SECTION 15. Section (a), Article 6, Chapter XI, The Texas
8-21 Banking Code (Article 342-1106, Vernon's Texas Civil Statutes), is
8-22 amended to read as follows:
8-23 (a) The <State> Banking Commissioner <Board> shall
8-24 promulgate and adopt such rules and procedural regulations as may
8-25 be necessary to facilitate the fair hearing and adjudication of
8-26 charter applications.
8-27 SECTION 16. Section 3, Chapter 496, Acts of the 44th
8-28 Legislature, 3rd Called Session, 1936 (Article 6243-23, Vernon's
8-29 Texas Civil Statutes), is amended to read as follows:
8-30 Sec. 3. Before the issuance of any such warrants, the
8-31 <State> Banking Commissioner <Board> shall, upon application by the
8-32 Old Age Assistance Commission, determine the rate of interest which
8-33 shall be paid on account of such warrants as authorized herein,
8-34 such interest rate never to exceed two and one-half (2-1/2) per
8-35 centum per annum.
8-36 SECTION 17. Section 3, Chapter 1, page 536, General Laws,
8-37 Acts of the 46th Legislature, 1939 (Article 6243-24, Vernon's Texas
8-38 Civil Statutes), is amended to read as follows:
8-39 Sec. 3. Before the issuance of any such warrants, the
8-40 <State> Banking Commissioner <Board> shall, upon application by the
8-41 Old Age Assistance Commission, determine the rate of interest which
8-42 shall be paid on account of such warrants as authorized herein,
8-43 such interest rate never to exceed two and one-half (2-1/2) per
8-44 centum per annum.
8-45 SECTION 18. Section 2(5)(A), Chapter 421, Acts of the 63rd
8-46 Legislature, Regular Session, 1973 (Article 6252-9b, Vernon's Texas
8-47 Civil Statutes), is amended to read as follows:
8-48 (5)(A) "Appointed officer of a major state agency"
8-49 means any of the following:
8-50 (i) a member of the Public Utility
8-51 Commission of Texas;
8-52 (ii) a member of the Texas Department of
8-53 Commerce;
8-54 (iii) a member of the Texas Board of
8-55 Aviation;
8-56 (iv) a member of the Texas Air Control
8-57 Board;
8-58 (v) a member of the Texas Alcoholic
8-59 Beverage Commission;
8-60 (vi) a member of the Finance Commission of
8-61 Texas;
8-62 (vii) a member of the State Purchasing and
8-63 General Services Commission;
8-64 (viii) a member of the Texas Board of
8-65 Criminal Justice;
8-66 (ix) a member of the Board of Trustees of
8-67 the Employees Retirement System of Texas;
8-68 (x) a member of the State Highway and
8-69 Public Transportation Commission;
8-70 (xi) a member of the Texas Workers'
9-1 Compensation Commission;
9-2 (xii) a member of the State Board of
9-3 Insurance;
9-4 (xiii) a member of the Parks and Wildlife
9-5 Commission;
9-6 (xiv) a member of the Public Safety
9-7 Commission;
9-8 (xv) the Secretary of State;
9-9 (xvi) a member of the State Securities
9-10 Board;
9-11 (xvii) a member of the Texas Amusement
9-12 Machine Commission;
9-13 (xviii) a member of the Texas Water
9-14 Development Board;
9-15 (xix) a member of the Texas Water
9-16 Commission;
9-17 (xx) a member of the governing board of a
9-18 state senior college or university as defined by Section 61.003,
9-19 Education Code, including The University of Texas at Arlington; The
9-20 University of Texas at Austin; The University of Texas at Dallas;
9-21 The University of Texas at El Paso; The University of Texas--Pan
9-22 American; The University of Texas--Pan American--Brownsville; The
9-23 University of Texas of the Permian Basin; The University of Texas
9-24 at San Antonio; The University of Texas at Tyler; The University of
9-25 Texas Southwestern Medical Center at Dallas; The University of
9-26 Texas Medical Branch at Galveston; The University of Texas Health
9-27 Science Center at Houston; The University of Texas Health Science
9-28 Center at San Antonio; The University of Texas System Cancer
9-29 Center; The University of Texas Health Science Center at Tyler;
9-30 Texas A&M University; Texas A&M University at Galveston; Prairie
9-31 View A&M University; Tarleton State University; Corpus Christi
9-32 State University; Texas A&I University; Laredo State University;
9-33 East Texas State University; East Texas State University at
9-34 Texarkana; University of Houston; University of Houston--Clear
9-35 Lake; University of Houston--Downtown; University of
9-36 Houston--Victoria; Lamar University at Beaumont; Lamar University
9-37 at Orange; Lamar University at Port Arthur; Midwestern State
9-38 University; University of North Texas; Texas College of Osteopathic
9-39 Medicine; Stephen F. Austin State University; Texas Southern
9-40 University; Texas Tech University; Texas Tech University Health
9-41 Sciences Center; Texas Woman's University; West Texas State
9-42 University; Angelo State University; Sam Houston State University;
9-43 Southwest Texas State University; Sul Ross State University; Sul
9-44 Ross State University--Uvalde Center; Texas State Technical
9-45 Institute--Amarillo; Texas State Technical Institute--Harlingen;
9-46 Texas State Technical Institute--Sweetwater; and Texas State
9-47 Technical Institute--Waco;
9-48 (xxi) a member of the Texas Higher
9-49 Education Coordinating Board;
9-50 (xxii) a member of the Texas Employment
9-51 Commission;
9-52 (xxiii) <a member of the State Banking
9-53 Board;>
9-54 <(xxiv)> a member of the board of trustees
9-55 of the Teachers Retirement System of Texas;
9-56 (xxiv) <(xxv)> a member of the Credit
9-57 Union Commission;
9-58 (xxv) <(xxvi)> a member of the School Land
9-59 Board;
9-60 (xxvi) <(xxvii)> a member of the board of
9-61 the Texas Department of Housing and Community Affairs;
9-62 (xxvii) <(xxviii)> a member of the Texas
9-63 Racing Commission;
9-64 (xxviii) <(xxix)> a member of the State
9-65 Board of Dental Examiners;
9-66 (xxix) <(xxx)> a member of the Texas Board
9-67 of Licensure for Nursing Home Administrators;
9-68 (xxx) <(xxxi)> a member of the Texas State
9-69 Board of Medical Examiners;
9-70 (xxxi) <(xxxii)> a member of the Board of
10-1 Pardons and Paroles;
10-2 (xxxii) <(xxxiii)> a member of the Texas
10-3 State Board of Pharmacy;
10-4 (xxxiii) <(xxxiv)> the Banking
10-5 Commissioner of the Banking Department of Texas;
10-6 (xxxiv) <(xxxv)> a member of the
10-7 Department of Information Resources Governing Board;
10-8 (xxxv) <(xxxvi)> the fire fighters'
10-9 pension commissioner;
10-10 (xxxvi) <(xxxvii)> a member of the Texas
10-11 Motor Vehicle Commission;
10-12 (xxxvii) <(xxxviii)> the director of the
10-13 Office of Court Administration of the Texas Judicial System;
10-14 (xxxviii) <(xxxix)> the chief executive of
10-15 the Office of Public Utility Counsel;
10-16 (xxxix) <(xl)> a member of the Texas Real
10-17 Estate Commission;
10-18 (xl) <(xli)> a member of the board of
10-19 directors and the executive director of the State Bar of Texas;
10-20 (xli) <(xlii)> a member of the Bond Review
10-21 Board;
10-22 (xlii) <(xliii)> a member of the Texas
10-23 Board of Health;
10-24 (xliii) <(xliv)> a member of the Texas
10-25 Board of Mental Health and Mental Retardation;
10-26 (xliv) <(xlv)> a member of the Texas Board
10-27 on Aging;
10-28 (xlv) <(xlvi)> a member of the Texas Board
10-29 of Human Services;
10-30 (xlvi) <(xlvii)> a member of the Texas
10-31 Funeral Service Commission;
10-32 (xlvii) <(xlviii)> a member of the board
10-33 of directors of a river authority created under the constitution or
10-34 laws of this state;
10-35 (xlviii) <(xlix)> the director of the
10-36 lottery division in the office of the comptroller; or
10-37 (xlix) <(l)> the deputy in charge of the
10-38 department of security in the lottery division in the office of the
10-39 comptroller.
10-40 SECTION 19. Section 21(e), Administrative Procedure and
10-41 Texas Register Act (Article 6252-13a, Vernon's Texas Civil
10-42 Statutes), is amended to read as follows:
10-43 (e) Sections 12 through 20 of this Act do not apply to
10-44 action by the Commissioner of Banking <or the State Banking Board>
10-45 with respect to the issuance of a state bank charter for a bank to
10-46 assume the assets and liabilities of a state bank the commissioner
10-47 deems to be in an unsafe condition as defined in Section 1, Article
10-48 1a, Chapter VIII, Texas Banking Code of 1943.
10-49 SECTION 20. Article 15, Chapter I, The Texas Banking Code
10-50 (Article 342-115, Vernon's Texas Civil Statutes), is repealed.
10-51 SECTION 21. (a) On the effective date of this Act:
10-52 (1) the powers, duties, and obligations of the State
10-53 Banking Board are transferred to the Banking Commissioner;
10-54 (2) the State Banking Board shall transfer all
10-55 property and records in its custody to the Banking Commissioner;
10-56 and
10-57 (3) an employee of the State Banking Board becomes an
10-58 employee of the Texas Department of Banking.
10-59 (b) On the transfer of all property and records under
10-60 Subsection (a)(2) of this section, the State Banking Board is
10-61 abolished. On the abolishment of the State Banking Board, a rule,
10-62 form, policy, or order of the State Banking Board becomes a rule,
10-63 form, policy, or order of the Banking Commissioner.
10-64 SECTION 22. This Act takes effect September 1, 1993.
10-65 SECTION 23. The importance of this legislation and the
10-66 crowded condition of the calendars in both houses create an
10-67 emergency and an imperative public necessity that the
10-68 constitutional rule requiring bills to be read on three several
10-69 days in each house be suspended, and this rule is hereby suspended.
10-70 * * * * *
11-1 Austin,
11-2 Texas
11-3 May 24, 1993
11-4 Hon. Bob Bullock
11-5 President of the Senate
11-6 Sir:
11-7 We, your Committee on Economic Development to which was referred
11-8 H.B. No. 1791, have had the same under consideration, and I am
11-9 instructed to report it back to the Senate with the recommendation
11-10 that it do pass and be printed.
11-11 Parker,
11-12 Chairman
11-13 * * * * *
11-14 WITNESSES
11-15 No witnesses appeared on H.B. No. 1791.