By: Brown S.B. No. 358
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the continuation and functions of the Credit Union
1-2 Commission.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 2.03, Texas Credit Union Act (Article
1-5 2461-2.03, Vernon's Texas Civil Statutes), is amended to read as
1-6 follows:
1-7 Sec. 2.03. INCORPORATION PROCEDURE. (a) The incorporators
1-8 shall file with the commissioner:
1-9 (1) the original articles of incorporation in
1-10 duplicate;
1-11 (2) standard bylaws for the general operation of the
1-12 credit union in duplicate;
1-13 (3) a completed application in a form prescribed by
1-14 the commission; and
1-15 (4) the fees required and set by the commission.
1-16 (b) The commissioner may conduct any investigation and
1-17 obtain any information or report from any person, including a law
1-18 enforcement agency, that the commissioner considers necessary.
1-19 (c) [The commission shall adopt rules establishing
1-20 procedures concerning notice of applications to incorporate and
1-21 conditions under which a hearing may be available.]
1-22 [(d)] The commissioner shall approve the application for
1-23 incorporation if the incorporators have complied with this Act and
2-1 the rules adopted under this Act and the commissioner finds from
2-2 the information furnished with the application, the results of any
2-3 investigation, the evidence submitted at any hearing, and the
2-4 information in the official records in the department that:
2-5 (1) the character and general fitness of the
2-6 incorporators and the members of the initial board of directors
2-7 warrant belief that the business and affairs of the credit union
2-8 will be properly administered in accordance with this Act and the
2-9 rules adopted under this Act;
2-10 (2) the character and size of the field of membership
2-11 proposed to be served by the credit union conforms with this Act
2-12 and the rules adopted under this Act and are favorable to the
2-13 economic viability of the credit union; and
2-14 (3) the incorporators and the members of the initial
2-15 board of directors are acting in good faith and are making the
2-16 application in accordance with the purposes of this Act.
2-17 (d) [(e)] In addition to the findings under Subsection (c)
2-18 [(d)] of this section, the commissioner shall, in accordance with
2-19 rules the commission may adopt, consider the effect of overlapping
2-20 fields of membership on the applicant credit union and existing
2-21 state or federal credit unions doing business in this state, and
2-22 the commissioner may, as a condition of approval of the
2-23 application, require the applicant credit union to limit or
2-24 eliminate overlaps, in accordance with the rules, if any, in order
2-25 to achieve the purposes of this Act and promote the welfare and
3-1 stability of those credit unions. The commissioner also may
3-2 consider the availability and adequacy of financial services in the
3-3 local community and the effect that the incorporation of the credit
3-4 union would have on the local community.
3-5 (e) The [(f) Not later than 90 days after the later of the
3-6 date on which an application is filed or the date on which a
3-7 hearing on the application is held, the] commissioner shall state
3-8 his findings in a written order that approves or denies the
3-9 application to incorporate.
3-10 (f) [(g)] The commission shall adopt rules providing for
3-11 appeal by an incorporator or aggrieved person. The commissioner's
3-12 order may be appealed to the commission not later than 60 days
3-13 after the date of the order. The commission shall, by written
3-14 order, affirm or reverse the decision of the commissioner after
3-15 reviewing the information or evidence it considers necessary or
3-16 relevant.
3-17 (g) [(h)] An order of the commissioner or commission shall
3-18 be promptly mailed to the incorporators by registered or certified
3-19 mail. If the application is approved by the commissioner, in the
3-20 absence of an appeal, or by the commission after conclusion of an
3-21 appeal, the commissioner shall issue a certificate of
3-22 incorporation, deliver copies of the approved articles of
3-23 incorporation and bylaws to the incorporators, and retain copies of
3-24 these documents in the department's permanent files.
3-25 SECTION 2. Subsection (b), Section 2.06, Texas Credit Union
4-1 Act (Article 2461-2.06, Vernon's Texas Civil Statutes), is amended
4-2 to read as follows:
4-3 (b) The board of directors may amend the articles of
4-4 incorporation or bylaws and shall submit amendments to the
4-5 commissioner. The commissioner shall approve or disapprove an
4-6 amendment in writing [not later than 60 days after the date of
4-7 submission, the date of any required publication in the
4-8 department's newsletter, or the date on which a hearing on the
4-9 amendment is held, whichever is later]. In approving an amendment,
4-10 the commissioner shall make the findings and may take the actions
4-11 provided by Subsections (c) and (d) [and (e)] of Section 2.03 of
4-12 this Act. The commissioner may not approve an amendment if the
4-13 commissioner finds that it violates this Act or the rules adopted
4-14 under this Act. The commissioner shall state the reasons for a
4-15 disapproval with reasonable specificity. Amendments become
4-16 effective on approval by the commissioner.
4-17 SECTION 3. Section 10.03, Texas Credit Union Act (Article
4-18 2461-10.03, Vernon's Texas Civil Statutes), is amended by adding
4-19 Subsections (g) and (h) to read as follows:
4-20 (g) In determining whether to approve or disapprove the
4-21 merger or consolidation, the commissioner shall consider the
4-22 availability and adequacy of financial services in the local
4-23 community and the effect that the merger or consolidation would
4-24 have on the local community. The commission by rule shall
4-25 establish other appropriate criteria that the commissioner must
5-1 consider in making the determination.
5-2 (h) The rules adopted under this section must specify in
5-3 detail the procedures that:
5-4 (1) a credit union must follow to obtain commissioner
5-5 approval of a merger or consolidation; and
5-6 (2) the commissioner must follow in approving or
5-7 disapproving the merger or consolidation.
5-8 SECTION 4. Subsections (b) and (c), Section 11.01, Texas
5-9 Credit Union Act (Article 2461-11.01, Vernon's Texas Civil
5-10 Statutes), are amended to read as follows:
5-11 (b) The Credit Union Department is composed of the Credit
5-12 Union Commission and a Credit Union Commissioner, together with
5-13 other officers and employees within the department. The department
5-14 shall supervise and shall regulate, as provided in this Act, all
5-15 credit unions organized under the laws of the State of Texas. The
5-16 department shall periodically make comprehensive studies of the
5-17 statutes of this state as they pertain to credit union operations.
5-18 The commissioner shall report the recommendations of the department
5-19 when and as necessary to the legislature for consideration. The
5-20 [During January of each year, the] department shall prepare
5-21 annually [file with the governor and the presiding officer of each
5-22 house of the legislature] a complete and detailed written report
5-23 accounting for all funds received and disbursed by the department
5-24 during the preceding year. The annual report must meet the
5-25 reporting requirements applicable to financial reporting provided
6-1 in the General Appropriations Act. The financial transactions of
6-2 the department are subject to audit by the state auditor in
6-3 accordance with Chapter 321, Government Code.
6-4 (c) The Credit Union Commission is subject to Chapter 325,
6-5 Government Code (Texas Sunset Act). Unless continued in existence
6-6 as provided by that chapter, the commission is abolished [and this
6-7 Act expires] September 1, 2009 [1997].
6-8 SECTION 5. Section 11.02, Texas Credit Union Act (Article
6-9 2461-11.02, Vernon's Texas Civil Statutes), is amended to read as
6-10 follows:
6-11 Sec. 11.02. ELIGIBILITY OF MEMBERS. (a) Four [Six] members
6-12 of the commission must be individuals who are currently engaged in
6-13 the exercise of the duties, responsibilities, rights, and powers of
6-14 a duly authorized director, officer, or committee member of a
6-15 credit union that is organized and doing business in this state
6-16 under this Act or the Federal Credit Union Act and that has its
6-17 principal office in this state, and who have five years or more of
6-18 active experience as such a director, officer, or committee member.
6-19 No more than one person from a federal credit union may serve on
6-20 the commission at any time. Experience as a commissioner, deputy
6-21 commissioner, or examiner is equivalent to the type of experience
6-22 required by this subsection. If a person holding a position in
6-23 accordance with this subsection ceases to be engaged in the
6-24 exercise of the duties, responsibilities, rights, and powers
6-25 prescribed by this subsection for a period exceeding 90 days, the
7-1 person is ineligible to serve as a member and the person's position
7-2 on the commission is vacant.
7-3 (b) Five [Three] members of the commission are
7-4 representatives of the general public. A person is not eligible
7-5 for appointment as a public member of [An individual appointed to
7-6 serve in that capacity may not, at the time of the individual's
7-7 appointment to or while serving on] the commission if the person or
7-8 the person's spouse:
7-9 (1) is employed by or participates [be engaged] in the
7-10 management or direction of:
7-11 (A) a financial institution; or
7-12 (B) an organization, other than a financial
7-13 institution, regulated by any financial institution regulatory
7-14 agency or receiving funds from such agency[, such as a credit
7-15 union, bank, or savings and loan association]; [or]
7-16 (2) has [have], other than as a member or customer, a
7-17 financial interest in:
7-18 (A) a financial institution; or
7-19 (B) an organization, other than a financial
7-20 institution, regulated by any financial institution regulatory
7-21 agency or receiving funds from such agency; or
7-22 (3) uses or receives a substantial amount of tangible
7-23 goods, services, or funds from the department, other than
7-24 compensation or reimbursement authorized by law for commission
7-25 membership, attendance, or expenses[, such as a credit union, bank,
8-1 or savings and loan association].
8-2 (c) No two members of the commission may be residents of the
8-3 same state senatorial district.
8-4 (d) An officer, employee, or paid consultant of a [A person
8-5 currently serving as chairman, first vice-chairman, president,
8-6 vice-president, secretary, or treasurer of a state] trade
8-7 association representing or affiliated with a financial institution
8-8 group or any entity affiliated with financial institutions [in the
8-9 credit union industry, or an employee of such an organization,] may
8-10 not serve as a member of the commission and may not be an employee
8-11 of the department who is exempt from the state's position
8-12 classification plan or is compensated at or above the amount
8-13 prescribed by the General Appropriations Act for step 1, salary
8-14 group 17, of the position classification salary schedule.
8-15 (e) A person who is the spouse of an officer, manager, or
8-16 paid consultant of a trade association representing or affiliated
8-17 with a financial institution group or any entity affiliated with
8-18 financial institutions may not be a member of the commission and
8-19 may not be an employee of the department who is exempt from the
8-20 state's position classification plan or is compensated at or above
8-21 the amount prescribed by the General Appropriations Act for step 1,
8-22 salary group 17, of the position classification salary schedule.
8-23 (f) For the purposes of this section, a trade association is
8-24 a nonprofit, cooperative, and voluntarily joined association of
8-25 business or professional competitors designed to assist its members
9-1 and its industry or profession in dealing with mutual business or
9-2 professional problems and in promoting their common interest.
9-3 (g) [(e)] A person may not serve as a member of the
9-4 commission or act as the general counsel to the commission or the
9-5 department if the person [who] is required to register as a
9-6 lobbyist under Chapter 305, Government Code, because of the
9-7 person's activities for compensation on behalf of a profession
9-8 related to the operation of [may not serve as a member of the
9-9 commission or act as the general counsel to] the commission.
9-10 SECTION 6. Subsection (a), Section 11.03, Texas Credit Union
9-11 Act (Article 2461-11.03, Vernon's Texas Civil Statutes), is amended
9-12 to read as follows:
9-13 (a) The members of the commission are appointed, without
9-14 regard to race, color, creed, disability, sex, religion, age, or
9-15 national origin, by the governor, with the advice and consent of
9-16 the senate, for terms of six years, with the terms of three members
9-17 expiring February 15 of each odd-numbered year. The governor shall
9-18 appoint the members who are representatives of the general public
9-19 on the basis of recognized business ability.
9-20 SECTION 7. Chapter 11, Texas Credit Union Act (Article
9-21 2461-11.01 et seq., Vernon's Texas Civil Statutes), is amended by
9-22 adding Section 11.031 to read as follows:
9-23 Sec. 11.031. TRAINING PROGRAM. (a) Before a member of the
9-24 commission may assume the member's duties and before the member may
9-25 be confirmed by the senate, the member must complete at least one
10-1 course of the training program established under this section.
10-2 (b) A training program established under this section shall
10-3 provide information to the member regarding:
10-4 (1) the enabling legislation that created the
10-5 department and its policy-making body to which the member is
10-6 appointed to serve;
10-7 (2) the programs operated by the department;
10-8 (3) the role and functions of the department;
10-9 (4) the rules of the commission with an emphasis on
10-10 the rules that relate to disciplinary and investigatory authority;
10-11 (5) the current budget for the department;
10-12 (6) the results of the most recent formal audit of the
10-13 department;
10-14 (7) the requirements of the:
10-15 (A) open meetings law, Chapter 551, Government
10-16 Code;
10-17 (B) open records law, Chapter 552, Government
10-18 Code; and
10-19 (C) administrative procedure law, Chapter 2001,
10-20 Government Code;
10-21 (8) the requirements of the conflict of interest laws
10-22 and other laws relating to public officials;
10-23 (9) any applicable ethics policies adopted by the
10-24 department or the Texas Ethics Commission; and
10-25 (10) the basic principles and responsibilities of
11-1 credit union management.
11-2 SECTION 8. Section 11.04, Texas Credit Union Act (Article
11-3 2461-11.04, Vernon's Texas Civil Statutes), is amended to read as
11-4 follows:
11-5 Sec. 11.04. VACANCIES; REMOVAL. (a) [The office of a
11-6 member of the commission becomes vacant on January 1 if the member
11-7 failed to attend more than one-half of the meetings of the
11-8 commission held during the preceding calendar year, excluding any
11-9 meetings held before the member assumed office.]
11-10 [(b)] The governor may remove a member from the member's
11-11 position on the commission for neglect of duty, incompetence, or
11-12 fraudulent or criminal conduct.
11-13 (b) [(c)] It is grounds for removal from the commission if a
11-14 member:
11-15 (1) does not have at the time of appointment the
11-16 qualifications required by Section 11.02;
11-17 (2) does not maintain during service on the commission
11-18 the qualifications required by Section 11.02;
11-19 (3) violates a prohibition established by Section
11-20 11.02;
11-21 (4) cannot because of illness or disability discharge
11-22 the member's duties for a substantial part of the term for which
11-23 the member is appointed; or
11-24 (5) is absent from more than half of the regularly
11-25 scheduled commission meetings that the member is eligible to attend
12-1 during a calendar year unless the absence is excused by majority
12-2 vote of the commission.
12-3 (c) The validity of an action of the commission is not
12-4 affected by the fact that it is taken when a ground for removal of
12-5 a commission member exists.
12-6 (d) If the commissioner has knowledge that a potential
12-7 ground for removal exists, the commissioner shall notify the
12-8 presiding officer of the commission of the potential ground. The
12-9 presiding officer shall then notify the governor and the attorney
12-10 general that a potential ground for removal exists. If the
12-11 potential ground for removal involves the presiding officer, the
12-12 commissioner shall notify the next highest officer of the
12-13 commission, who shall notify the governor and the attorney general
12-14 that a potential ground for removal exists [violates a prohibition
12-15 established by Section 11.02(e) of this Act].
12-16 (e) [(d)] The office of a member of the commission is vacant
12-17 in the event of the death, resignation, or removal of the member,
12-18 or if the member ceases to have the qualifications necessary to
12-19 serve as a member.
12-20 (f) [(e)] In the event of a vacancy on the commission for
12-21 any cause, the governor, with the advice and consent of the senate,
12-22 shall promptly appoint a qualified person to fill the unexpired
12-23 term.
12-24 [(f) The validity of an action of the commission is not
12-25 affected by the fact that it was taken when a ground for removal of
13-1 a member of the commission existed.]
13-2 SECTION 9. Subsections (a), (c), and (e), Section 11.06,
13-3 Texas Credit Union Act (Article 2461-11.06, Vernon's Texas Civil
13-4 Statutes), are amended to read as follows:
13-5 (a) The commission shall hold regular meetings at least
13-6 twice each year. The chairman of the commission, the commissioner,
13-7 or any five members of the commission may call special meetings.
13-8 The commission shall adopt reasonable rules governing the time and
13-9 place of meetings and the conduct of all meetings, including the
13-10 form in which minutes of the meetings are maintained. The [All
13-11 meetings of the] commission is [are] subject to the Open Meetings
13-12 Law, Chapter 551, Government Code, and the administrative procedure
13-13 law, Chapter 2001, Government Code [271, Acts of the 60th
13-14 Legislature, 1967, as amended (Article 6252-17, Vernon's Texas
13-15 Civil Statutes)].
13-16 (c) The governor shall designate a member of the commission
13-17 as presiding officer of the commission to serve in that capacity at
13-18 the pleasure of the governor [commission shall annually elect a
13-19 chairman and vice-chairman from among its members. The chairman
13-20 shall preside at all meetings of the commission, and the
13-21 vice-chairman shall preside in the absence of the chairman. If
13-22 both the chairman and vice-chairman are absent from a meeting, the
13-23 most senior member of the commission in attendance at the meeting
13-24 shall serve as acting chairman].
13-25 (e) No commission member may act on matters under
14-1 consideration which directly affect [and specifically relate to]
14-2 any credit union of which the member of the commission is an
14-3 officer, director, or member. The commission shall adopt rules
14-4 relating to recusal of members, requiring that a member who has a
14-5 personal or private interest in a measure, proposal, or decision
14-6 pending before the commission shall publicly disclose the fact to
14-7 the commission at a meeting held in compliance with Chapter 551,
14-8 Government Code. The member may not vote or otherwise participate
14-9 in the decision. The disclosure shall be entered into the minutes
14-10 of the meeting.
14-11 SECTION 10. Chapter 11, Texas Credit Union Act (Article
14-12 2461-11.01 et seq., Vernon's Texas Civil Statutes), is amended by
14-13 adding Section 11.061 to read as follows:
14-14 Sec. 11.061. RECEIPT OF PUBLIC COMMENTS; NOTICE OF
14-15 COMMISSION ACTIVITIES. (a) The commission shall develop and
14-16 implement policies that provide the public with a reasonable
14-17 opportunity to appear before the commission and to speak on any
14-18 issue under the jurisdiction of the department.
14-19 (b) The commission shall adopt rules providing for public
14-20 notice of department activities.
14-21 SECTION 11. Section 11.07, Texas Credit Union Act (Article
14-22 2461-11.07, Vernon's Texas Civil Statutes), is amended by adding
14-23 Subsections (d) and (e) to read as follows:
14-24 (d) The commission may not adopt rules restricting
14-25 competitive bidding or advertising by a credit union except to
15-1 prohibit false, misleading, or deceptive practices.
15-2 (e) In its rules to prohibit false, misleading, or deceptive
15-3 practices, the commission may not include a rule that:
15-4 (1) restricts the use of any medium for advertising;
15-5 (2) relates to the size or duration of an
15-6 advertisement by the credit union; or
15-7 (3) restricts the credit union's advertisement under a
15-8 trade name.
15-9 SECTION 12. Chapter 11, Texas Credit Union Act (Article
15-10 2461-11.01 et seq., Vernon's Texas Civil Statutes), is amended by
15-11 adding Section 11.071 to read as follows:
15-12 Sec. 11.071. SEPARATION OF RESPONSIBILITIES. The commission
15-13 shall develop and implement policies that clearly separate the
15-14 policy-making responsibilities of the commission and the management
15-15 responsibilities of the commissioner and the staff of the
15-16 department.
15-17 SECTION 13. Section 11.10, Texas Credit Union Act (Article
15-18 2461-11.10, Vernon's Texas Civil Statutes), is amended to read as
15-19 follows:
15-20 Sec. 11.10. POWERS OF CREDIT UNION COMMISSIONER. (a) On
15-21 the appointment and qualification of a commissioner, the
15-22 commissioner shall supervise and regulate all credit unions doing
15-23 business in this state, except federal credit unions organized and
15-24 existing under federal law, in accordance with this Act and the
15-25 rules and regulations promulgated under this Act.
16-1 (b) The commissioner shall enforce the provisions of this
16-2 Act and the rules and regulations promulgated from time to time.
16-3 (c) The commissioner shall levy and collect all supervision
16-4 fees, charges, and revenues required to be paid by credit unions as
16-5 provided by Subsection (c), Section 11.07, of this Act. All money
16-6 paid to the department [collected] under this Act is subject to
16-7 Subchapter F, Chapter 404, Government Code [shall be deposited in
16-8 the credit union department expense fund, which is created as a
16-9 special fund in the state treasury. Money in the fund may be used
16-10 only for the administration of this Act. Income earned on the
16-11 money deposited in the credit union department expense fund shall
16-12 be credited to that fund].
16-13 (d) The commissioner or the commissioner's designee shall
16-14 provide to members of the commission and to department employees,
16-15 as often as necessary, information regarding their qualification
16-16 for office or employment under this Act and their responsibilities
16-17 under applicable laws relating to standards of conduct for state
16-18 officers or employees.
16-19 (e) The commission shall promulgate, and the commissioner
16-20 shall enforce, reasonable rules requiring credit unions to provide
16-21 or cause to be provided share and deposit insurance protection for
16-22 their members and depositors, including the authorization and
16-23 establishment of a share and deposit guaranty corporation or credit
16-24 union under the exclusive regulation of the department to enable
16-25 the department to carry out the purposes of this Act. Share and
17-1 deposit insurance protection may also be provided through other
17-2 sources approved by the department, including such a program of the
17-3 National Credit Union Administration.
17-4 (f) The commissioner shall supervise the establishment and
17-5 maintenance of files regarding each written complaint filed with
17-6 [complaints about credit unions received by] the department that
17-7 the department has authority to resolve. The files must include
17-8 all relevant information regarding the nature, status, and
17-9 disposition of the complaints. The department [commissioner] shall
17-10 provide to the person filing the complaint and the persons or
17-11 entities complained about the department's policies and procedures
17-12 pertaining to complaint investigation and resolution. The
17-13 department, at least [take the steps that the commissioner
17-14 determines to be necessary to notify each complainant of the
17-15 procedures and remedies available for the resolution of complaints.
17-16 After a written complaint is filed, the commissioner, at least as
17-17 frequently as] quarterly and until final disposition of the
17-18 complaint, shall notify the parties to the complaint of the status
17-19 of the complaint unless the notice would jeopardize an undercover
17-20 investigation.
17-21 (g) The department shall keep information about each
17-22 complaint filed with the department. The information shall
17-23 include:
17-24 (1) the date the complaint is received;
17-25 (2) the name of the complainant;
18-1 (3) the subject matter of the complaint;
18-2 (4) a record of all persons contacted in relation to
18-3 the complaint;
18-4 (5) a summary of the results of the review or
18-5 investigation of the complaint; and
18-6 (6) for complaints for which the department took no
18-7 action, an explanation of the reason the complaint was closed
18-8 without action.
18-9 (h) The commissioner shall supervise the preparation of
18-10 public interest information describing [regarding] the [regulatory]
18-11 functions of the department, procedures for filing and resolution
18-12 of complaints, and other matters of general interest regarding
18-13 [the] credit unions. The commissioner [union movement and] shall
18-14 make the [supervise the dissemination of that] information
18-15 available to the general public and appropriate state agencies.
18-16 (i) The commission by rule shall establish methods by which
18-17 consumers and service recipients are notified of the name, mailing
18-18 address, and telephone number of the department for the purpose of
18-19 directing complaints to the department. The commission may provide
18-20 for that notification:
18-21 (1) on each registration form, application, or written
18-22 contract for services of a credit union regulated under this Act;
18-23 (2) on a sign prominently displayed in the place of
18-24 business of each credit union regulated under this Act; or
18-25 (3) in a bill for service provided by a credit union
19-1 regulated under this Act.
19-2 (j) The department shall comply with federal and state laws
19-3 related to program and facility accessibility. The commissioner
19-4 shall also prepare and maintain a written plan that describes how a
19-5 person who does not speak English can be provided reasonable access
19-6 to the department's programs and services.
19-7 SECTION 14. Section 11.18, Texas Credit Union Act (Article
19-8 2461-11.18, Vernon's Texas Civil Statutes), is amended to read as
19-9 follows:
19-10 Sec. 11.18. CAREER PROGRAM; PERFORMANCE EVALUATION.
19-11 (a) The commissioner or the commissioner's [his] designee shall
19-12 develop an intra-agency career ladder program that addresses
19-13 opportunities for mobility and advancement for employees within the
19-14 department. The program shall require[, one part of which shall be
19-15 an] intra-agency posting of all nonentry level positions
19-16 concurrently with [for at least 10 days before] any public posting.
19-17 (b) The commissioner or the commissioner's [his] designee
19-18 shall develop a system of annual performance evaluations that are
19-19 based on documented employee performance [measurable job tasks].
19-20 All merit pay for department employees must be based on the system
19-21 established under this section.
19-22 SECTION 15. Chapter 11, Texas Credit Union Act (Article
19-23 2461-11.01 et seq., Vernon's Texas Civil Statutes), is amended by
19-24 adding Section 11.19 to read as follows:
19-25 Sec. 11.19. EQUAL EMPLOYMENT OPPORTUNITY POLICY. (a) The
20-1 commissioner or the commissioner's designee shall prepare and
20-2 maintain a written policy statement to assure implementation of a
20-3 program of equal employment opportunity under which all personnel
20-4 transactions are made without regard to race, color, disability,
20-5 sex, religion, age, or national origin. The policy statement must
20-6 include:
20-7 (1) personnel policies, including policies relating to
20-8 recruitment, evaluation, selection, appointment, training, and
20-9 promotion of personnel that are in compliance with requirements of
20-10 Chapter 21, Labor Code;
20-11 (2) a comprehensive analysis of the department
20-12 workforce that meets federal and state guidelines;
20-13 (3) procedures by which a determination can be made
20-14 about the extent of underuse in the department workforce of all
20-15 persons for whom federal or state guidelines encourage a more
20-16 equitable balance; and
20-17 (4) reasonable methods to appropriately address those
20-18 areas of underuse.
20-19 (b) A policy statement prepared under Subsection (a) must
20-20 cover an annual period, be updated annually and reviewed by the
20-21 Texas Commission on Human Rights for compliance with Subsection
20-22 (a)(1), and be filed with the governor's office.
20-23 (c) The governor's office shall deliver a biennial report to
20-24 the legislature based on the information received under Subsection
20-25 (b). The report may be made separately or as a part of other
21-1 biennial reports made to the legislature.
21-2 SECTION 16. Section 12.01, Texas Credit Union Act (Article
21-3 2461-12.01, Vernon's Texas Civil Statutes), is amended to read as
21-4 follows:
21-5 Sec. 12.01. HEARINGS. (a) The conduct of all hearings held
21-6 under this Act and the judicial review of the final decisions
21-7 following those hearings are governed by the administrative
21-8 procedure law, Chapter 2001, Government Code [the Administrative
21-9 Procedure and Texas Register Act, as amended (Article 6252-13a,
21-10 Vernon's Texas Civil Statutes)]. The commission may adopt rules
21-11 of procedure consistent with that chapter [the Administrative
21-12 Procedure and Texas Register Act, as amended,] for the fair hearing
21-13 and adjudication of all issues in a hearing held under this Act.
21-14 This section does not apply to a meeting under Section 12.03 of
21-15 this Act.
21-16 (b) If the commission proposes to suspend or revoke a credit
21-17 union's certificate of incorporation, the credit union is entitled
21-18 to a hearing conducted by the State Office of Administrative
21-19 Hearings. Proceedings for a disciplinary action are governed by
21-20 the administrative procedure law, Chapter 2001, Government Code.
21-21 Rules of practice adopted by the commission under Section 2001.004,
21-22 Government Code, applicable to the proceedings for a disciplinary
21-23 action may not conflict with rules adopted by the State Office of
21-24 Administrative Hearings.
21-25 SECTION 17. Chapter 12, Texas Credit Union Act (Article
22-1 2461-12.01 et seq., Vernon's Texas Civil Statutes), is amended by
22-2 adding Section 12.03 to read as follows:
22-3 Sec. 12.03. PROCEDURE FOR CERTAIN APPROVALS. (a) This
22-4 section applies to a request for approval by the commissioner of:
22-5 (1) an application for incorporation under Section
22-6 2.03 of this Act;
22-7 (2) a request for approval of an amendment to a credit
22-8 union's articles of incorporation under Section 2.06 of this Act,
22-9 including an amendment to expand the credit union's field of
22-10 membership; and
22-11 (3) a merger or consolidation under Section 10.03 of
22-12 this Act.
22-13 (b) Before approving a request to which this section
22-14 applies, the commissioner shall submit notice of the request to the
22-15 secretary of state for publication in the Texas Register. The
22-16 commission by rule shall provide for other appropriate public
22-17 notice of the request. The commissioner may waive the requirements
22-18 of this subsection or permit delayed public notice on a
22-19 determination that waiver or delay is in the public interest. If
22-20 the requirements of this subsection are waived, the information
22-21 that would be contained in a public notice becomes public
22-22 information under Chapter 552, Government Code, on the 35th day
22-23 after the date the request is made.
22-24 (c) Before making a determination on a request to which this
22-25 section applies, the commissioner must accept comment from any
23-1 interested party that wishes to comment. This comment may be in
23-2 the form of written testimony or may be provided at a meeting with
23-3 the commissioner held for the purpose of receiving this comment.
23-4 This meeting shall be held if requested by any interested party.
23-5 The commissioner may hold the meeting regardless of whether an
23-6 interested party requests the meeting. The commission may
23-7 establish reasonable rules governing the circumstances and conduct
23-8 of the meeting. Chapter 2001, Government Code, does not apply to
23-9 the meeting. Not later than the 60th day after the date the notice
23-10 is published in the Texas Register, or if the notice is not
23-11 published, after the date the request is received, the commissioner
23-12 shall approve or disapprove the application.
23-13 SECTION 18. The Sunset Advisory Commission, as part of its
23-14 evaluation of agencies preceding the meeting of the 77th
23-15 Legislature in 2001, shall:
23-16 (1) evaluate the organizational structure of the
23-17 state's financial regulatory agencies; and
23-18 (2) study the potential effects of placing the Credit
23-19 Union Commission under the jurisdiction of the Finance Commission
23-20 of Texas.
23-21 SECTION 19. (a) The Credit Union Commission and the Finance
23-22 Commission of Texas shall jointly review state law, including
23-23 rules, governing financial institutions in this state. The review
23-24 must include an examination of differences in the authority granted
23-25 by law to the different state regulatory officers and agencies and
24-1 how the officers and agencies differ in their manner of regulating
24-2 the institutions under their respective jurisdictions.
24-3 (b) A report of the review shall be submitted to the Sunset
24-4 Advisory Commission before September 1, 1999.
24-5 SECTION 20. If after the effective date of this Act a
24-6 vacancy exists in a position of member of the Credit Union
24-7 Commission that was held by an individual described by Subsection
24-8 (a), Section 11.02, Texas Credit Union Act (Article 2461-11.02,
24-9 Vernon's Texas Civil Statutes), the vacancy shall be filled by
24-10 appointment of an individual described by Subsection (b) of Section
24-11 11.02 of that Act until the number of public members and members
24-12 who represent credit unions are as prescribed by those sections, as
24-13 amended by this Act.
24-14 SECTION 21. This Act takes effect September 1, 1997.
24-15 SECTION 22. The importance of this legislation and the
24-16 crowded condition of the calendars in both houses create an
24-17 emergency and an imperative public necessity that the
24-18 constitutional rule requiring bills to be read on three several
24-19 days in each house be suspended, and this rule is hereby suspended.