BILL ANALYSIS Financial Institutions Committee H.B. 1298 By: Carona March 6, 1995 Committee Report (Amended) BACKGROUND Criminal history records from the Texas Department of Public Safety may be obtained only if a specific authorization is contained in a statute such as Section 411.092 of the Government Code. Currently, the banking commissioner is permitted to obtain such information for license applicants under the Currency Exchange Act (Article 350, Revised Statutes). The activities performed under the charters and licenses granted by the banking commissioner require oversight and enforcement to protect the public interest. Criminal history records of applicants and principals of applicants prior to granting a charter or license is critical to informed decisionmaking. The Federal Deposit Insurance Corporation obtains a report from the Federal Bureau of Investigation before processing and approving deposit insurance for a state bank; however, this may occur after the charter has been approved by the banking commissioner. The banking commissioner must be able to check the criminal history of bank charter applicants during preliminary examination of applications but prior to approving a charter application. PURPOSE In addition to the Currency Exchange Act, the banking commissioner is charged with the oversight of trust companies, state banks, and foreign bank agencies under The Texas Banking Code (Article 342-101 et seq., V.T.C.S.), and for licensees of perpetual care cemeteries (Chapter 712, Health and Safety Code), sale of prepaid funeral services or funeral merchandise (Article 548b, V.T.C.S.), and the Sale of Checks Act (Article 489d, V.T.C.S.). RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 411.092(a), Government Code, by adding specific statutory authority for the banking commissioner to obtain criminal history information from the Department of Public Safety regarding an applicant for a charter, or other authority granted or issued by the banking commissioner under The Texas Banking Code; The Sale of Checks Act; Chapter 512, Acts of the 54th Legislature, Regular Session 1955 (sale of prepaid funeral services or funeral merchandise); and Chapter 712, Health and Safety Code (perpetual care cemeteries). SECTION 2. Emergency clause. EXPLANATION OF AMENDMENTS Committee Amendment #1: The Banking Commissioner does not have responsibility for verifying the character and fitness of any agencies under the Health and Safety Code, therefore, language regarding the Health and Safety Code is removed with the adoption of this amendment. SUMMARY OF COMMITTEE ACTION The Committee on Financial Institutions convened in a public hearing on March 6 to consider HB 1298. Chairman Marchant offered committee amendment #1 which was adopted without objection. The following person testified in favor of the bill: John Heasley. The following person testified neutrally on the bill: Catherine A. Ghiglieri. The bill was reported favorably as amended, with the recommendation that it do pass and be printed and be sent to the Committee on Local and Consent Calendars, by a record vote of 9 Ayes, 0 Nays, 0 PNV, Absent, 0.