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.