BILL ANALYSIS H.B. 2527 By: Marchant 03-27-95 Committee Report (Unamended) BACKGROUND Currently, provisions do not exist in the Texas Credit Union Act to address the potential entry by credit unions of other nations into Texas as a result of NAFTA. PURPOSE The purpose of this legislation is to provide for the regulation of "foreign credit unions" that do business in Texas. The bill only allows the credit unions of other states or countries to do business in Texas if Texas credit unions are granted reciprocity. RULEMAKING AUTHORITY In the committee's opinion, this bill grants rulemaking authority to the Texas Credit Union Commission and the Texas Credit Union Commissioner in Section 2 of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Section 1.02, Texas Credit Union Act (Article 2461-1.02, Vernon's Texas Civil Statutes), is amended by adding Subdivision (6) to read as follows: (6) Defines "foreign credit union" as one not organized under Texas law or the United States. SECTION 2. Section 2.11, Texas Credit Union Act (Article 2461-2.11, Vernon's Texas Civil Statutes), is amended to read as follows: A foreign credit union is authorized to do business in Texas if it is organized in a state or country that allows Texas chartered credit unions to do business in that state or country. Foreign credit unions are subject to the rules of the Texas Credit Union Act and any other rules that the commission may establish for them. If the foreign credit union violates these rules, it may result in the suspension or revocation of authority to do business in Texas by the commissioner. SECTION 3. Emergency clause. SUMMARY OF COMMITTEE ACTION The committee convened in a public hearing on March 27, 1995 to consider HB 2527. The following person testified in favor of the bill: Jeff Huffman. The motion to report HB 2527 favorably without amendments, with the recommendation that it do pass and be printed and be sent to the Committee on Local and Consent Calendars, prevailed by the following record vote: 5 Ayes, 0 Nays, 0 PNV, 4 Absent.