By Roman H.B. No. 2548 75R346 DWS-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to a checking account for low-income consumers. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Title 16, Revised Statutes, is amended by adding 1-5 Article 353 to read as follows: 1-6 Art. 353. CONSUMER CHECKING ACCOUNT 1-7 Sec. 1. DEFINITIONS. In this article: 1-8 (1) "Commission" means the Finance Commission of 1-9 Texas. 1-10 (2) "Commissioner" means the Banking Commissioner of 1-11 Texas. 1-12 (3) "Financial institution" means a state or national 1-13 bank, state or federal savings and loan association, state or 1-14 federal savings bank, or state or federal credit union doing 1-15 business in this state. 1-16 (4) "Regular checking account" means the type of 1-17 checking account held by the most customers at a financial 1-18 institution. 1-19 Sec. 2. CONSUMER CHECKING ACCOUNT REQUIRED. Each financial 1-20 institution that offers a checking account to the public shall 1-21 offer a consumer checking account to the public. 1-22 Sec. 3. FORM OF ACCOUNT. (a) The commission by rule shall 1-23 establish the required terms of a consumer checking account. The 1-24 rules must: 2-1 (1) be designed to make the account available for use 2-2 by low-income persons primarily for personal, family, or household 2-3 purposes; 2-4 (2) establish: 2-5 (A) the initial deposit that may be required to 2-6 open the account; 2-7 (B) the minimum balance that may be required to 2-8 maintain the account; 2-9 (C) the minimum number of checks that the 2-10 financial institution must permit the account holder to draw within 2-11 a certain period without additional charge; 2-12 (D) the minimum number of withdrawals that the 2-13 financial institution must permit the account holder to make by a 2-14 means other than check within a certain period without additional 2-15 charge; 2-16 (E) the minimum number of deposits that the 2-17 financial institution must permit the account holder to make within 2-18 a certain period without additional charge; and 2-19 (F) the maximum amount of any charge relating to 2-20 the account; and 2-21 (3) require the financial institution to provide the 2-22 holder of the account periodic account statements. 2-23 (b) In adopting rules under this section, the commission 2-24 shall ensure that a financial institution is not required to 2-25 receive less gross income from consumer checking accounts than it 2-26 costs the financial institution to provide those accounts. On 2-27 request of the commissioner, a financial institution shall provide 3-1 information necessary to enable the commission to carry out this 3-2 subsection. 3-3 Sec. 4. ALTERNATIVE FORM OF ACCOUNT. (a) On request of a 3-4 financial institution, the commissioner may approve as a consumer 3-5 checking account an account that does not meet the requirements of 3-6 rules adopted under Section 3 if the commissioner determines that 3-7 the account satisfies the purposes of a consumer checking account 3-8 described by Section 3(a)(1). 3-9 (b) Not later than the 30th day after the day on which a 3-10 financial institution submits a request under this section, the 3-11 commissioner shall send to the financial institution a written 3-12 notice that: 3-13 (1) approves the request; or 3-14 (2) disapproves the request and states the reasons for 3-15 the disapproval. 3-16 Sec. 5. CONSIDERATION OF EXISTING ACCOUNTS. The commission, 3-17 in adopting rules under Section 3, and the commissioner, in 3-18 considering a request under Section 4, shall consider the terms of 3-19 existing low-cost personal checking accounts available in this 3-20 state. 3-21 Sec. 6. PARITY WITH OTHER ACCOUNTS. (a) Except as otherwise 3-22 provided by this article or rules adopted under this article, a 3-23 financial institution shall offer each of its products and services 3-24 to a holder of a consumer checking account on the same basis that 3-25 it offers the product or service to a holder of a regular checking 3-26 account. 3-27 (b) A financial institution may not: 4-1 (1) give a holder of a consumer checking account less 4-2 access to mail or electronic banking services, including direct 4-3 deposit services, than it gives to a holder of a regular checking 4-4 account; or 4-5 (2) charge a holder of a consumer checking account an 4-6 amount for a service that is greater than the amount charged for 4-7 the service to a holder of a regular checking account. 4-8 Sec. 7. OPENING ACCOUNT; SERVICES PROVIDED AT EACH LOCATION. 4-9 (a) A financial institution shall: 4-10 (1) provide for the opening of a consumer checking 4-11 account at each location at which it opens a regular checking 4-12 account; and 4-13 (2) provide services related to a consumer checking 4-14 account at each location at which it provides services related to a 4-15 regular savings account. 4-16 (b) The financial institution may require that an applicant 4-17 for a consumer checking account provide the financial institution 4-18 with the same information required of an applicant for a regular 4-19 savings account. 4-20 Sec. 8. GROUNDS FOR CLOSING OR DENYING ACCOUNT. (a) A 4-21 financial institution may: 4-22 (1) close a consumer checking account for fraudulent 4-23 activity or overdrafts under the same standards the financial 4-24 institution applies to a regular checking account; and 4-25 (2) close or refuse to open a consumer checking 4-26 account if the applicant or account holder: 4-27 (A) has a consumer checking account or regular 5-1 checking account at another financial institution; or 5-2 (B) intentionally makes a material 5-3 misrepresentation in information provided to the financial 5-4 institution to open the account. 5-5 (b) A financial institution may not require, as a condition 5-6 of opening or maintaining a consumer checking account, that the 5-7 applicant or account holder hold any other account with that or any 5-8 other financial institution, including a credit card account. 5-9 Sec. 9. PUBLIC NOTICE OF ACCOUNT. Each financial 5-10 institution required to offer a consumer checking account shall 5-11 provide notice at each of its locations of the main features and 5-12 limitations of a consumer checking account by: 5-13 (1) posting a copy of the notice in a conspicuous 5-14 public area of the location; and 5-15 (2) making printed copies of the notice available to 5-16 the public. 5-17 Sec. 10. INJUNCTION. On request of the commissioner, the 5-18 attorney general shall bring an action to enjoin a violation of 5-19 this article. 5-20 SECTION 2. The Finance Commission of Texas shall adopt rules 5-21 under Article 353, Revised Statutes, as added by this Act, before 5-22 January 1, 1998. 5-23 SECTION 3. The importance of this legislation and the 5-24 crowded condition of the calendars in both houses create an 5-25 emergency and an imperative public necessity that the 5-26 constitutional rule requiring bills to be read on three several 5-27 days in each house be suspended, and this rule is hereby suspended, 6-1 and that this Act take effect and be in force from and after its 6-2 passage, and it is so enacted.