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.