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.