By Oliveira H.B. No. 1020
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of savings banks.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 1.03(1), Texas Savings Bank Act (Article
1-5 489e, Vernon's Texas Civil Statutes), is amended to read as
1-6 follows:
1-7 (1) "Administrative procedure act" means Chapter 2001,
1-8 Government Code <the Administrative Procedure and Texas Register
1-9 Act (Article 6252-13a, Vernon's Texas Civil Statutes)>.
1-10 SECTION 2. Section 2.05(a), Texas Savings Bank Act (Article
1-11 489e, Vernon's Texas Civil Statutes), is amended to read as
1-12 follows:
1-13 (a) An application to incorporate a savings bank must be in
1-14 a form specified by the commissioner, signed by each incorporator,
1-15 and submitted to the commissioner with the filing fee. An
1-16 application consists of:
1-17 (1) two copies of the proposed articles of
1-18 incorporation setting forth the name of the savings bank, the site
1-19 of the principal office, and the names and addresses of the initial
1-20 directors;
1-21 (2) two copies of the bylaws under which the savings
1-22 bank proposes to operate;
1-23 (3) statements, exhibits, maps, and other data
1-24 sufficiently detailed and comprehensive to enable the commissioner
2-1 to make findings under Section 2.11 of this Act;
2-2 (4) other information relating to the proposed savings
2-3 bank and its operation required by the rules of the commissioner
2-4 and the finance commission; and
2-5 (5) financial information about the applicants,
2-6 incorporators, directors, officers, or stockholders required by the
2-7 rules of the commissioner and the finance commission.
2-8 SECTION 3. Section 2.10, Texas Savings Bank Act (Article
2-9 489e, Vernon's Texas Civil Statutes), is amended by amending
2-10 Subsection (a) and adding Subsection (c) to read as follows:
2-11 (a) When a complete application to incorporate as defined by
2-12 rules adopted by the commissioner and the finance commission is
2-13 filed, the commissioner shall issue public notice of the
2-14 application and shall give any interested party an opportunity to
2-15 appear, present evidence, and be heard for or against the
2-16 application. A hearing officer designated by the commissioner
2-17 shall hold the hearing. A hearing is not required if:
2-18 (1) no party provides written notice to the
2-19 commissioner, before the 11th day after the date of publication of
2-20 the notice of application, of the party's intention to appear and
2-21 present evidence at the hearing; and
2-22 (2) the commissioner finds that the application
2-23 complies with all statutory requirements for approval.
2-24 (c) Not later than the 30th day after the date of the
2-25 completion of a hearing, the commissioner shall enter a final order
2-26 approving or denying the application. An applicant may appeal a
2-27 final order to a district court of Travis County with the
3-1 commissioner as defendant. A party to the action in the district
3-2 court of Travis County may appeal to the appellate court having
3-3 jurisdiction of the cause. The appeal is immediately returnable to
3-4 the appellate court having jurisdiction of the cause, and that
3-5 action has precedence in that appellate court over all causes of a
3-6 different character pending in that court. The commissioner is not
3-7 required to give an appeal bond in a cause arising under this
3-8 section. Filing an appeal under this section does not stay an
3-9 order of the commissioner.
3-10 SECTION 4. Chapter 2, Texas Savings Bank Act (Article 489e,
3-11 Vernon's Texas Civil Statutes), is amended by adding Section 2.15
3-12 to read as follows:
3-13 Sec. 2.15. PREFERENCE FOR LOCAL CONTROL. If more than one
3-14 application to incorporate a new savings bank or establish an
3-15 additional office of an existing savings bank in the same community
3-16 is before the commissioner at the same time, the commissioner may
3-17 give additional weight to the application having the greater degree
3-18 of control vested in or held by residents of the community.
3-19 SECTION 5. Sections 3.07(c) and (g), Texas Savings Bank Act
3-20 (Article 489e, Vernon's Texas Civil Statutes), are amended to read
3-21 as follows:
3-22 (c) The applicant shall pay a filing fee when the applicant
3-23 files an application. A proposal to acquire voting securities of a
3-24 savings bank subject to this section may be made by an individual,
3-25 two or more individuals acting in concert, any type of partnership,
3-26 corporation, syndicate, trust, or any other organization, or any
3-27 combination of those individuals or entities. The information
4-1 required by the commissioner may be required of each member of the
4-2 group, as directed by the commissioner. Notice of the application,
4-3 its date of filing, and the identity of all parties to the
4-4 application shall be submitted to the Texas Register by the
4-5 commissioner on receipt of the application for publication in the
4-6 next issue of the Texas Register following the date the information
4-7 is received, except that the commissioner may waive the requirement
4-8 that a notice be published or permit delay of the publication if
4-9 the commissioner determines that the waiver or delay is in the
4-10 public interest. Information obtained by the commissioner under
4-11 this section, other than published information, is confidential and
4-12 may not be disclosed by the commissioner or any officer or employee
4-13 of the Savings and Loan Department of Texas, except nothing in this
4-14 section prohibits the commissioner from disclosing, on request, the
4-15 identity of the actual or beneficial owner of any savings bank
4-16 chartered under this Act, and the information that would have been
4-17 contained in a published notice that the commissioner waived
4-18 becomes public information under Chapter 552, Government Code, on
4-19 the 34th day after the date the application is filed. The
4-20 commissioner, in the commissioner's discretion and if the
4-21 commissioner deems it necessary or proper in the enforcement of the
4-22 laws of any state or the United States and in the best interest of
4-23 the public, may also divulge information to any appropriate banking
4-24 agency or any appropriate governmental department, agency, or
4-25 instrumentality of this state, another state, or the United States.
4-26 (g) Not later than the 60th day after the date of the filing
4-27 of the application, the commissioner shall approve the application
5-1 without a hearing or notify the proposed transferee in writing of
5-2 the commissioner's intent to deny the application based on the
5-3 requirements of this section. The notice must state the grounds
5-4 for denial. The proposed transferee may file a written request for
5-5 hearing on the application before the 31st day after the date the
5-6 notice of intent to deny is mailed to the proposed transferee. The
5-7 commissioner may immediately enter an order denying the application
5-8 if a hearing is not timely requested, and the order is final and
5-9 nonappealable. If the proposed transferee requests a hearing
5-10 <When the commissioner determines that an application for approval
5-11 of change of control is complete>, the commissioner shall issue
5-12 public notice of the application and shall give any interested
5-13 party an opportunity to appear, present evidence, and be heard for
5-14 or against the application. A hearing officer designated by the
5-15 commissioner shall hold the hearing. After the <A hearing is not
5-16 required if no party provides written notice to the commissioner,
5-17 within 10 days of the date of publication of the notice of
5-18 application, of intention to appear and present evidence at the
5-19 hearing and if the commissioner finds that the application complies
5-20 with all statutory requirements for approval within 30 days after
5-21 the date of the completion of a> hearing, the commissioner shall
5-22 enter a final order either approving or denying the application.
5-23 An applicant may appeal a final order to a district court of Travis
5-24 County with the commissioner as defendant. Either party to the
5-25 action may appeal from the district court of Travis County to the
5-26 appellate court having jurisdiction of the cause. The appeal is at
5-27 once returnable to the appellate court having jurisdiction of the
6-1 cause, and that action has precedence in that appellate court over
6-2 all causes of a different character pending in that court. The
6-3 commissioner is not required to give any appeal bond in any cause
6-4 arising under this section. Filing an appeal under this section
6-5 does not stay an order of the commissioner.
6-6 SECTION 6. Section 4.08, Texas Savings Bank Act (Article
6-7 489e, Vernon's Texas Civil Statutes), is amended to read as
6-8 follows:
6-9 Sec. 4.08. CONFIDENTIALITY. (a) Except as otherwise
6-10 provided by this Act or rules adopted under this Act, the <The>
6-11 commissioner and any examiner, supervisor, conservator, liquidator,
6-12 inspector, deputy, assistant clerk, or other employee of the
6-13 Savings and Loan Department of Texas appointed or acting under this
6-14 Act shall keep confidential any facts or information regarding a
6-15 financial institution or a shareholder, participant, officer,
6-16 director, manager, affiliate, or service provider of a financial
6-17 institution, other than a public statement or a public portion of a
6-18 call report or profit and loss statement, regardless of whether the
6-19 facts or information is obtained through application, examination,
6-20 or otherwise. All related files and records of the department are
6-21 confidential and may not be disclosed <savings bank obtained in
6-22 the course of an examination or by reason of the individual's
6-23 official position, unless the public duty of the person requires
6-24 otherwise>. A person who violates this section or wilfully makes a
6-25 false official report on the condition of a financial institution
6-26 <savings bank> shall be removed from office or further employment
6-27 with the Savings and Loan Department of Texas.
7-1 (b) A report of an examination made to the commissioner is
7-2 confidential and not for public record or inspection, except that
7-3 the commissioner for good reason may make the report public.
7-4 (c) This section does not prevent the proper exchange of
7-5 information relating to savings banks and the business of savings
7-6 banks with the representatives of regulatory authorities of other
7-7 states or to any other department, agency, or instrumentality of
7-8 this state, another state, or the United States if the commissioner
7-9 determines the disclosure necessary or proper for the enforcement
7-10 of the laws of this state, another state, or the United States.
7-11 (d) Unless otherwise provided by this Act, this section does
7-12 not apply to facts, information, or reports of investigations
7-13 obtained or made by the commissioner or the commissioner's staff in
7-14 connection with an application for charter or a hearing held by the
7-15 commissioner under this Act, and those facts, information, or
7-16 reports may be included in the record of the appropriate hearing.
7-17 (e) The commissioner shall report promptly to the finance
7-18 commission when a supervisory order is issued under Chapter 5 of
7-19 this Act. The commissioner shall furnish information about a
7-20 savings bank or person as the finance commission may require in
7-21 executive session, and all information discussed in the executive
7-22 session is confidential.
7-23 (f) Confidential information that is provided to a financial
7-24 institution or an affiliate or service provider of a financial
7-25 institution, whether in the form of a report of examination or
7-26 otherwise, is the confidential property of the department. Unless
7-27 approved in writing by the commissioner or authorized by rules
8-1 adopted under this section, the information may not be made public
8-2 or disclosed in any manner by the recipient, or by an officer,
8-3 director, manager, employee, or agent of the recipient, to a person
8-4 not officially connected to the recipient as officer, director,
8-5 employee, attorney, auditor, or independent auditor.
8-6 (g) Discovery of confidential information under subpoena or
8-7 other legal process from a person subject to this section must
8-8 comply with rules adopted under this Act. The rules may restrict
8-9 release of confidential information to that portion directly
8-10 relevant to the legal dispute involved and may require that a
8-11 protective order, in the form and under circumstances specified by
8-12 the rules, be issued by a court of competent jurisdiction before
8-13 release of confidential information.
8-14 (h) Notwithstanding any other law, the commissioner may
8-15 refuse to release any information or record in the custody of the
8-16 department if the commissioner believes release of the information
8-17 or record might jeopardize an investigation of possibly unlawful
8-18 activities.
8-19 SECTION 7. Section 6.03(a), Texas Savings Bank Act (Article
8-20 489e, Vernon's Texas Civil Statutes), is amended to read as
8-21 follows:
8-22 (a) A person may not be a member of the board of directors
8-23 of a savings bank if the person:
8-24 (1) <is not a citizen of the United States;>
8-25 <(2)> is not at least 18 years of age;
8-26 (2) <(3)> has been adjudicated bankrupt or convicted
8-27 of a criminal offense involving dishonesty or breach of trust,
9-1 unless given prior written approval to be a member of the board by
9-2 the commissioner;
9-3 (3) <(4)> has a final judgment entered against the
9-4 person for a sum of money that has remained unsatisfied or
9-5 unsecured for more than six months after the date of the judgment's
9-6 entry, unless the commissioner gives the person prior written
9-7 approval to be a member of the board or unless the judgment was
9-8 satisfied of record more than one year before the date of the
9-9 election; or
9-10 (4) <(5)> is a director, officer, or employee of
9-11 another savings bank, unless given the prior written approval to
9-12 be a member of the board by the commissioner.
9-13 SECTION 8. Section 7.01, Texas Savings Bank Act (Article
9-14 489e, Vernon's Texas Civil Statutes), is amended to read as
9-15 follows:
9-16 Sec. 7.01. GENERAL CORPORATE POWERS. (a) Each savings bank
9-17 has the powers authorized by this Act and other rights, privileges,
9-18 and powers as may be incidental to or reasonably necessary for the
9-19 accomplishment of the objects and purposes of the savings bank.
9-20 Subject to the prior approval of the commissioner, a savings bank
9-21 may engage in business as a savings bank in any state or territory
9-22 of the United States to the extent permitted by the laws of that
9-23 state or territory, either directly or through ownership of another
9-24 savings bank incorporated under the laws of another state.
9-25 (b) The finance commission by rule may expand savings bank
9-26 powers to accommodate or take advantage of changing technology and
9-27 enable state savings banks to respond to the needs of and
10-1 convenience demanded by consumers and businesses through
10-2 on-premises and off-premises operations, except that the finance
10-3 commission may not authorize state savings banks to offer financial
10-4 services prohibited to state savings banks by laws of this state
10-5 other than this Act. In adopting any rules under this subsection,
10-6 the finance commission shall consider the need to:
10-7 (1) promote a stable financial institution
10-8 environment;
10-9 (2) provide the public with convenient, safe, and
10-10 competitive financial services; and
10-11 (3) allow for economic development within the state.
10-12 SECTION 9. Section 7.05, Texas Savings Bank Act (Article
10-13 489e, Vernon's Texas Civil Statutes), is amended to read as
10-14 follows:
10-15 Sec. 7.05. INVESTMENT IN BANKING PREMISES. (a) Without
10-16 prior approval of the commissioner, a <A> savings bank may invest
10-17 not more than an amount equal to its regulatory capital in real
10-18 estate, buildings, and related facilities, including parking, and
10-19 in leasehold improvements for rented facilities for use by the
10-20 savings bank as its banking premises.
10-21 (b) The finance commission by rule adopted under Section
10-22 7.01(b) of this Act may approve a new form of savings bank facility
10-23 or authorize the commissioner to approve a new form of savings bank
10-24 facility if the commissioner does not have a significant
10-25 supervisory or regulatory concern regarding the proposed facility.
10-26 SECTION 10. Section 7.10(b), Texas Savings Bank Act (Article
10-27 489e, Vernon's Texas Civil Statutes), is amended to read as
11-1 follows:
11-2 (b) A savings bank may not make any investment in a
11-3 subsidiary corporation if its aggregate investments in subsidiaries
11-4 would exceed 10 percent of its total assets, excluding amounts
11-5 invested in a subsidiary corporation the activities of which are
11-6 limited to activities that could be conducted directly by the
11-7 parent savings bank.
11-8 SECTION 11. Section 8.02, Texas Savings Bank Act (Article
11-9 489e, Vernon's Texas Civil Statutes), is amended to read as
11-10 follows:
11-11 Sec. 8.02. LIQUIDITY. Unless approved in advance by the
11-12 commissioner, a savings bank shall maintain a minimum of 10 percent
11-13 of an amount equal to its average daily deposits for the most
11-14 recently completed calendar quarter <assets> in cash, balances in a
11-15 federal reserve bank or passed through a federal home loan bank or
11-16 another depository institution to a federal reserve bank under the
11-17 Federal Reserve Act (12 U.S.C. Section 221 et seq.), or other
11-18 readily marketable investments, including unencumbered federal
11-19 government sponsored enterprises securities, as allowed by rules
11-20 adopted by the commissioner and the finance commission.
11-21 SECTION 12. Section 12.12(a), Texas Savings Bank Act
11-22 (Article 489e, Vernon's Texas Civil Statutes), is amended to read
11-23 as follows:
11-24 (a) Except as provided in Subsection (b) of this section, a
11-25 reference in statutes of this state, including Title 79, Revised
11-26 Statutes (Article 5069-1.01 et seq., Vernon's Texas Civil
11-27 Statutes), the Government Code, and the Local Government Code or in
12-1 a rule adopted under the statutes to a "savings and loan
12-2 association," "savings and loan," or "association" in the context
12-3 of a savings and loan association, or to a corporation,
12-4 association, or other organization incorporated or organized under
12-5 the Texas Savings and Loan Act (Article 852a, Vernon's Texas Civil
12-6 Statutes), is also a reference to a savings bank, as defined in
12-7 this Act.
12-8 SECTION 13. (a) The changes made by this Act to the
12-9 procedures applicable to a proceeding before the savings and loan
12-10 commissioner apply only to a proceeding initiated on or after the
12-11 effective date of this Act. A proceeding initiated before the
12-12 effective date of this Act is governed by the law in effect when
12-13 the proceeding was initiated, and that law is continued in effect
12-14 for that purpose.
12-15 (b) The savings and loan commissioner shall by rule
12-16 prescribe the manner and period in which a savings bank that on the
12-17 effective date of this Act does not comply with Section 7.05 or
12-18 8.02, Texas Savings Bank Act (Article 489e, Vernon's Texas Civil
12-19 Statutes), as amended by this Act, shall come into compliance with
12-20 that section.
12-21 SECTION 14. The importance of this legislation and the
12-22 crowded condition of the calendars in both houses create an
12-23 emergency and an imperative public necessity that the
12-24 constitutional rule requiring bills to be read on three several
12-25 days in each house be suspended, and this rule is hereby suspended,
12-26 and that this Act take effect and be in force from and after its
12-27 passage, and it is so enacted.