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
1-24 the rules adopted under this Act and the commissioner finds from
2-1 the information furnished with the application, the results of any
2-2 investigation, the evidence submitted at any hearing, and the
2-3 information in the official records in the department that:
2-4 (1) the character and general fitness of the
2-5 incorporators and the members of the initial board of directors
2-6 warrant belief that the business and affairs of the credit union
2-7 will be properly administered in accordance with this Act and the
2-8 rules adopted under this Act;
2-9 (2) the character and size of the field of membership
2-10 proposed to be served by the credit union conforms with this Act
2-11 and the rules adopted under this Act and are favorable to the
2-12 economic viability of the credit union; and
2-13 (3) the incorporators and the members of the initial
2-14 board of directors are acting in good faith and are making the
2-15 application in accordance with the purposes of this Act.
2-16 (d) [(e)] In addition to the findings under Subsection (c)
2-17 [(d)] of this section, the commissioner shall, in accordance with
2-18 rules the commission may adopt, consider the effect of overlapping
2-19 fields of membership on the applicant credit union and existing
2-20 state or federal credit unions doing business in this state, and
2-21 the commissioner may, as a condition of approval of the
2-22 application, require the applicant credit union to limit or
2-23 eliminate overlaps, in accordance with the rules, if any, in order
2-24 to achieve the purposes of this Act and promote the welfare and
2-25 stability of those credit unions. The commissioner also may
2-26 consider the availability and adequacy of financial services in the
2-27 local community and the effect that the incorporation of the credit
3-1 union would have on the local community.
3-2 (e) The [(f) Not later than 90 days after the later of the
3-3 date on which an application is filed or the date on which a
3-4 hearing on the application is held, the] commissioner shall state
3-5 his findings in a written order that approves or denies the
3-6 application to incorporate.
3-7 (f) [(g)] The commission shall adopt rules providing for
3-8 appeal by an incorporator or aggrieved person. The commissioner's
3-9 order may be appealed to the commission not later than 60 days
3-10 after the date of the order. The commission shall, by written
3-11 order, affirm or reverse the decision of the commissioner after
3-12 reviewing the information or evidence it considers necessary or
3-13 relevant.
3-14 (g) [(h)] An order of the commissioner or commission shall
3-15 be promptly mailed to the incorporators by registered or certified
3-16 mail. If the application is approved by the commissioner, in the
3-17 absence of an appeal, or by the commission after conclusion of an
3-18 appeal, the commissioner shall issue a certificate of
3-19 incorporation, deliver copies of the approved articles of
3-20 incorporation and bylaws to the incorporators, and retain copies of
3-21 these documents in the department's permanent files.
3-22 SECTION 2. Subsection (b), Section 2.06, Texas Credit Union
3-23 Act (Article 2461-2.06, Vernon's Texas Civil Statutes), is amended
3-24 to read as follows:
3-25 (b) The board of directors may amend the articles of
3-26 incorporation or bylaws and shall submit amendments to the
3-27 commissioner. The commissioner shall approve or disapprove an
4-1 amendment in writing [not later than 60 days after the date of
4-2 submission, the date of any required publication in the
4-3 department's newsletter, or the date on which a hearing on the
4-4 amendment is held, whichever is later]. In approving an amendment,
4-5 the commissioner shall make the findings and may take the actions
4-6 provided by Subsections (c) and (d) [and (e)] of Section 2.03 of
4-7 this Act. The commissioner may not approve an amendment if the
4-8 commissioner finds that it violates this Act or the rules adopted
4-9 under this Act. The commissioner shall state the reasons for a
4-10 disapproval with reasonable specificity. Amendments become
4-11 effective on approval by the commissioner.
4-12 SECTION 3. Section 10.03, Texas Credit Union Act (Article
4-13 2461-10.03, Vernon's Texas Civil Statutes), is amended by adding
4-14 Subsections (g) and (h) to read as follows:
4-15 (g) In determining whether to approve or disapprove the
4-16 merger or consolidation, the commissioner shall consider the
4-17 availability and adequacy of financial services in the local
4-18 community and the effect that the merger or consolidation would
4-19 have on the local community. The commission by rule shall
4-20 establish other appropriate criteria that the commissioner must
4-21 consider in making the determination.
4-22 (h) The rules adopted under this section must specify in
4-23 detail the procedures that:
4-24 (1) a credit union must follow to obtain commissioner
4-25 approval of a merger or consolidation; and
4-26 (2) the commissioner must follow in approving or
4-27 disapproving the merger or consolidation.
5-1 SECTION 4. Subsections (b) and (c), Section 11.01, Texas
5-2 Credit Union Act (Article 2461-11.01, Vernon's Texas Civil
5-3 Statutes), are amended to read as follows:
5-4 (b) The Credit Union Department is composed of the Credit
5-5 Union Commission and a Credit Union Commissioner, together with
5-6 other officers and employees within the department. The department
5-7 shall supervise and shall regulate, as provided in this Act, all
5-8 credit unions organized under the laws of the State of Texas. The
5-9 department shall periodically make comprehensive studies of the
5-10 statutes of this state as they pertain to credit union operations.
5-11 The commissioner shall report the recommendations of the department
5-12 when and as necessary to the legislature for consideration. The
5-13 [During January of each year, the] department shall prepare
5-14 annually [file with the governor and the presiding officer of each
5-15 house of the legislature] a complete and detailed written report
5-16 accounting for all funds received and disbursed by the department
5-17 during the preceding year. The annual report must meet the
5-18 reporting requirements applicable to financial reporting provided
5-19 in the General Appropriations Act. The financial transactions of
5-20 the department are subject to audit by the state auditor in
5-21 accordance with Chapter 321, Government Code.
5-22 (c) The Credit Union Commission is subject to Chapter 325,
5-23 Government Code (Texas Sunset Act). Unless continued in existence
5-24 as provided by that chapter, the commission is abolished [and this
5-25 Act expires] September 1, 2009 [1997].
5-26 SECTION 5. Section 11.02, Texas Credit Union Act (Article
5-27 2461-11.02, Vernon's Texas Civil Statutes), is amended to read as
6-1 follows:
6-2 Sec. 11.02. ELIGIBILITY OF MEMBERS. (a) Four [Six] members
6-3 of the commission must be individuals who are currently engaged in
6-4 the exercise of the duties, responsibilities, rights, and powers of
6-5 a duly authorized director, officer, or committee member of a
6-6 credit union that is organized and doing business in this state
6-7 under this Act or the Federal Credit Union Act and that has its
6-8 principal office in this state, and who have five years or more of
6-9 active experience as such a director, officer, or committee member.
6-10 No more than one person from a federal credit union may serve on
6-11 the commission at any time. Experience as a commissioner, deputy
6-12 commissioner, or examiner is equivalent to the type of experience
6-13 required by this subsection. If a person holding a position in
6-14 accordance with this subsection ceases to be engaged in the
6-15 exercise of the duties, responsibilities, rights, and powers
6-16 prescribed by this subsection for a period exceeding 90 days, the
6-17 person is ineligible to serve as a member and the person's position
6-18 on the commission is vacant.
6-19 (b) Five [Three] members of the commission are
6-20 representatives of the general public. A person is not eligible
6-21 for appointment as a public member of [An individual appointed to
6-22 serve in that capacity may not, at the time of the individual's
6-23 appointment to or while serving on] the commission if the person or
6-24 the person's spouse:
6-25 (1) is employed by or participates [be engaged] in the
6-26 management or direction of:
6-27 (A) a financial institution; or
7-1 (B) an organization, other than a financial
7-2 institution, regulated by any financial institution regulatory
7-3 agency or receiving funds from such agency[, such as a credit
7-4 union, bank, or savings and loan association]; [or]
7-5 (2) has [have], other than as a member or customer, a
7-6 financial interest in:
7-7 (A) a financial institution; or
7-8 (B) an organization, other than a financial
7-9 institution, regulated by any financial institution regulatory
7-10 agency or receiving funds from such agency; or
7-11 (3) uses or receives a substantial amount of tangible
7-12 goods, services, or funds from the department, other than
7-13 compensation or reimbursement authorized by law for commission
7-14 membership, attendance, or expenses[, such as a credit union, bank,
7-15 or savings and loan association].
7-16 (c) No two members of the commission may be residents of the
7-17 same state senatorial district.
7-18 (d) An officer, employee, or paid consultant of a [A person
7-19 currently serving as chairman, first vice-chairman, president,
7-20 vice-president, secretary, or treasurer of a state] trade
7-21 association representing or affiliated with a financial institution
7-22 group or any entity affiliated with financial institutions [in the
7-23 credit union industry, or an employee of such an organization,] may
7-24 not serve as a member of the commission and may not be an employee
7-25 of the department who is exempt from the state's position
7-26 classification plan or is compensated at or above the amount
7-27 prescribed by the General Appropriations Act for step 1, salary
8-1 group 17, of the position classification salary schedule.
8-2 (e) A person who is the spouse of an officer, manager, or
8-3 paid consultant of a trade association representing or affiliated
8-4 with a financial institution group or any entity affiliated with
8-5 financial institutions may not be a member of the commission and
8-6 may not be an employee of the department who is exempt from the
8-7 state's position classification plan or is compensated at or above
8-8 the amount prescribed by the General Appropriations Act for step 1,
8-9 salary group 17, of the position classification salary schedule.
8-10 (f) For the purposes of this section, a trade association is
8-11 a nonprofit, cooperative, and voluntarily joined association of
8-12 business or professional competitors designed to assist its members
8-13 and its industry or profession in dealing with mutual business or
8-14 professional problems and in promoting their common interest.
8-15 (g) [(e)] A person may not serve as a member of the
8-16 commission or act as the general counsel to the commission or the
8-17 department if the person [who] is required to register as a
8-18 lobbyist under Chapter 305, Government Code, because of the
8-19 person's activities for compensation on behalf of a profession
8-20 related to the operation of [may not serve as a member of the
8-21 commission or act as the general counsel to] the commission.
8-22 SECTION 6. Subsection (a), Section 11.03, Texas Credit Union
8-23 Act (Article 2461-11.03, Vernon's Texas Civil Statutes), is amended
8-24 to read as follows:
8-25 (a) The members of the commission are appointed, without
8-26 regard to race, color, creed, disability, sex, religion, age, or
8-27 national origin, by the governor, with the advice and consent of
9-1 the senate, for terms of six years, with the terms of three members
9-2 expiring February 15 of each odd-numbered year. The governor shall
9-3 appoint the members who are representatives of the general public
9-4 on the basis of recognized business ability.
9-5 SECTION 7. Chapter 11, Texas Credit Union Act (Article
9-6 2461-11.01 et seq., Vernon's Texas Civil Statutes), is amended by
9-7 adding Section 11.031 to read as follows:
9-8 Sec. 11.031. TRAINING PROGRAM. (a) Before a member of the
9-9 commission may assume the member's duties and before the member may
9-10 be confirmed by the senate, the member must complete at least one
9-11 course of the training program established under this section.
9-12 (b) A training program established under this section shall
9-13 provide information to the member regarding:
9-14 (1) the enabling legislation that created the
9-15 department and its policy-making body to which the member is
9-16 appointed to serve;
9-17 (2) the programs operated by the department;
9-18 (3) the role and functions of the department;
9-19 (4) the rules of the commission with an emphasis on
9-20 the rules that relate to disciplinary and investigatory authority;
9-21 (5) the current budget for the department;
9-22 (6) the results of the most recent formal audit of the
9-23 department;
9-24 (7) the requirements of the:
9-25 (A) open meetings law, Chapter 551, Government
9-26 Code;
9-27 (B) open records law, Chapter 552, Government
10-1 Code; and
10-2 (C) administrative procedure law, Chapter 2001,
10-3 Government Code;
10-4 (8) the requirements of the conflict of interest laws
10-5 and other laws relating to public officials;
10-6 (9) any applicable ethics policies adopted by the
10-7 department or the Texas Ethics Commission; and
10-8 (10) the basic principles and responsibilities of
10-9 credit union management.
10-10 SECTION 8. Section 11.04, Texas Credit Union Act (Article
10-11 2461-11.04, Vernon's Texas Civil Statutes), is amended to read as
10-12 follows:
10-13 Sec. 11.04. VACANCIES; REMOVAL. (a) [The office of a
10-14 member of the commission becomes vacant on January 1 if the member
10-15 failed to attend more than one-half of the meetings of the
10-16 commission held during the preceding calendar year, excluding any
10-17 meetings held before the member assumed office.]
10-18 [(b)] The governor may remove a member from the member's
10-19 position on the commission for neglect of duty, incompetence, or
10-20 fraudulent or criminal conduct.
10-21 (b) [(c)] It is grounds for removal from the commission if a
10-22 member:
10-23 (1) does not have at the time of appointment the
10-24 qualifications required by Section 11.02;
10-25 (2) does not maintain during service on the commission
10-26 the qualifications required by Section 11.02;
10-27 (3) violates a prohibition established by Section
11-1 11.02;
11-2 (4) cannot because of illness or disability discharge
11-3 the member's duties for a substantial part of the term for which
11-4 the member is appointed; or
11-5 (5) is absent from more than half of the regularly
11-6 scheduled commission meetings that the member is eligible to attend
11-7 during a calendar year unless the absence is excused by majority
11-8 vote of the commission.
11-9 (c) The validity of an action of the commission is not
11-10 affected by the fact that it is taken when a ground for removal of
11-11 a commission member exists.
11-12 (d) If the commissioner has knowledge that a potential
11-13 ground for removal exists, the commissioner shall notify the
11-14 presiding officer of the commission of the potential ground. The
11-15 presiding officer shall then notify the governor and the attorney
11-16 general that a potential ground for removal exists. If the
11-17 potential ground for removal involves the presiding officer, the
11-18 commissioner shall notify the next highest officer of the
11-19 commission, who shall notify the governor and the attorney general
11-20 that a potential ground for removal exists [violates a prohibition
11-21 established by Section 11.02(e) of this Act].
11-22 (e) [(d)] The office of a member of the commission is vacant
11-23 in the event of the death, resignation, or removal of the member,
11-24 or if the member ceases to have the qualifications necessary to
11-25 serve as a member.
11-26 (f) [(e)] In the event of a vacancy on the commission for
11-27 any cause, the governor, with the advice and consent of the senate,
12-1 shall promptly appoint a qualified person to fill the unexpired
12-2 term.
12-3 [(f) The validity of an action of the commission is not
12-4 affected by the fact that it was taken when a ground for removal of
12-5 a member of the commission existed.]
12-6 SECTION 9. Subsections (a), (c), and (e), Section 11.06,
12-7 Texas Credit Union Act (Article 2461-11.06, Vernon's Texas Civil
12-8 Statutes), are amended to read as follows:
12-9 (a) The commission shall hold regular meetings at least
12-10 twice each year. The chairman of the commission, the commissioner,
12-11 or any five members of the commission may call special meetings.
12-12 The commission shall adopt reasonable rules governing the time and
12-13 place of meetings and the conduct of all meetings, including the
12-14 form in which minutes of the meetings are maintained. The [All
12-15 meetings of the] commission is [are] subject to the Open Meetings
12-16 Law, Chapter 551, Government Code, and the administrative procedure
12-17 law, Chapter 2001, Government Code [271, Acts of the 60th
12-18 Legislature, 1967, as amended (Article 6252-17, Vernon's Texas
12-19 Civil Statutes)].
12-20 (c) The governor shall designate a member of the commission
12-21 as presiding officer of the commission to serve in that capacity at
12-22 the pleasure of the governor [commission shall annually elect a
12-23 chairman and vice-chairman from among its members. The chairman
12-24 shall preside at all meetings of the commission, and the
12-25 vice-chairman shall preside in the absence of the chairman. If
12-26 both the chairman and vice-chairman are absent from a meeting, the
12-27 most senior member of the commission in attendance at the meeting
13-1 shall serve as acting chairman].
13-2 (e) No commission member may act on matters under
13-3 consideration which directly affect [and specifically relate to]
13-4 any credit union of which the member of the commission is an
13-5 officer, director, or member. The commission shall adopt rules
13-6 relating to recusal of members, requiring that a member who has a
13-7 personal or private interest in a measure, proposal, or decision
13-8 pending before the commission shall publicly disclose the fact to
13-9 the commission at a meeting held in compliance with Chapter 551,
13-10 Government Code. The member may not vote or otherwise participate
13-11 in the decision. The disclosure shall be entered into the minutes
13-12 of the meeting.
13-13 SECTION 10. Chapter 11, Texas Credit Union Act (Article
13-14 2461-11.01 et seq., Vernon's Texas Civil Statutes), is amended by
13-15 adding Section 11.061 to read as follows:
13-16 Sec. 11.061. RECEIPT OF PUBLIC COMMENTS; NOTICE OF
13-17 COMMISSION ACTIVITIES. (a) The commission shall develop and
13-18 implement policies that provide the public with a reasonable
13-19 opportunity to appear before the commission and to speak on any
13-20 issue under the jurisdiction of the department.
13-21 (b) The commission shall adopt rules providing for public
13-22 notice of department activities.
13-23 SECTION 11. Section 11.07, Texas Credit Union Act (Article
13-24 2461-11.07, Vernon's Texas Civil Statutes), is amended by adding
13-25 Subsections (d) and (e) to read as follows:
13-26 (d) The commission may not adopt rules restricting
13-27 competitive bidding or advertising by a credit union except to
14-1 prohibit false, misleading, or deceptive practices.
14-2 (e) In its rules to prohibit false, misleading, or deceptive
14-3 practices, the commission may not include a rule that:
14-4 (1) restricts the use of any medium for advertising;
14-5 (2) relates to the size or duration of an
14-6 advertisement by the credit union; or
14-7 (3) restricts the credit union's advertisement under a
14-8 trade name.
14-9 SECTION 12. Chapter 11, Texas Credit Union Act (Article
14-10 2461-11.01 et seq., Vernon's Texas Civil Statutes), is amended by
14-11 adding Section 11.071 to read as follows:
14-12 Sec. 11.071. SEPARATION OF RESPONSIBILITIES. The commission
14-13 shall develop and implement policies that clearly separate the
14-14 policy-making responsibilities of the commission and the management
14-15 responsibilities of the commissioner and the staff of the
14-16 department.
14-17 SECTION 13. Section 11.10, Texas Credit Union Act (Article
14-18 2461-11.10, Vernon's Texas Civil Statutes), is amended to read as
14-19 follows:
14-20 Sec. 11.10. POWERS OF CREDIT UNION COMMISSIONER. (a) On
14-21 the appointment and qualification of a commissioner, the
14-22 commissioner shall supervise and regulate all credit unions doing
14-23 business in this state, except federal credit unions organized and
14-24 existing under federal law, in accordance with this Act and the
14-25 rules and regulations promulgated under this Act.
14-26 (b) The commissioner shall enforce the provisions of this
14-27 Act and the rules and regulations promulgated from time to time.
15-1 (c) The commissioner shall levy and collect all supervision
15-2 fees, charges, and revenues required to be paid by credit unions as
15-3 provided by Subsection (c), Section 11.07, of this Act. All money
15-4 paid to the department [collected] under this Act is subject to
15-5 Subchapter F, Chapter 404, Government Code [shall be deposited in
15-6 the credit union department expense fund, which is created as a
15-7 special fund in the state treasury. Money in the fund may be used
15-8 only for the administration of this Act. Income earned on the
15-9 money deposited in the credit union department expense fund shall
15-10 be credited to that fund].
15-11 (d) The commissioner or the commissioner's designee shall
15-12 provide to members of the commission and to department employees,
15-13 as often as necessary, information regarding their qualification
15-14 for office or employment under this Act and their responsibilities
15-15 under applicable laws relating to standards of conduct for state
15-16 officers or employees.
15-17 (e) The commission shall promulgate, and the commissioner
15-18 shall enforce, reasonable rules requiring credit unions to provide
15-19 or cause to be provided share and deposit insurance protection for
15-20 their members and depositors, including the authorization and
15-21 establishment of a share and deposit guaranty corporation or credit
15-22 union under the exclusive regulation of the department to enable
15-23 the department to carry out the purposes of this Act. Share and
15-24 deposit insurance protection may also be provided through other
15-25 sources approved by the department, including such a program of the
15-26 National Credit Union Administration.
15-27 (f) The commissioner shall supervise the establishment and
16-1 maintenance of files regarding each written complaint filed with
16-2 [complaints about credit unions received by] the department that
16-3 the department has authority to resolve. The files must include
16-4 all relevant information regarding the nature, status, and
16-5 disposition of the complaints. The department [commissioner] shall
16-6 provide to the person filing the complaint and the persons or
16-7 entities complained about the department's policies and procedures
16-8 pertaining to complaint investigation and resolution. The
16-9 department, at least [take the steps that the commissioner
16-10 determines to be necessary to notify each complainant of the
16-11 procedures and remedies available for the resolution of complaints.
16-12 After a written complaint is filed, the commissioner, at least as
16-13 frequently as] quarterly and until final disposition of the
16-14 complaint, shall notify the parties to the complaint of the status
16-15 of the complaint unless the notice would jeopardize an undercover
16-16 investigation.
16-17 (g) The department shall keep information about each
16-18 complaint filed with the department. The information shall
16-19 include:
16-20 (1) the date the complaint is received;
16-21 (2) the name of the complainant;
16-22 (3) the subject matter of the complaint;
16-23 (4) a record of all persons contacted in relation to
16-24 the complaint;
16-25 (5) a summary of the results of the review or
16-26 investigation of the complaint; and
16-27 (6) for complaints for which the department took no
17-1 action, an explanation of the reason the complaint was closed
17-2 without action.
17-3 (h) The commissioner shall supervise the preparation of
17-4 public interest information describing [regarding] the [regulatory]
17-5 functions of the department, procedures for filing and resolution
17-6 of complaints, and other matters of general interest regarding
17-7 [the] credit unions. The commissioner [union movement and] shall
17-8 make the [supervise the dissemination of that] information
17-9 available to the general public and appropriate state agencies.
17-10 (i) The commission by rule shall establish methods by which
17-11 consumers and service recipients are notified of the name, mailing
17-12 address, and telephone number of the department for the purpose of
17-13 directing complaints to the department. The commission may provide
17-14 for that notification:
17-15 (1) on each registration form, application, or written
17-16 contract for services of a credit union regulated under this Act;
17-17 (2) on a sign prominently displayed in the place of
17-18 business of each credit union regulated under this Act; or
17-19 (3) in a bill for service provided by a credit union
17-20 regulated under this Act.
17-21 (j) The department shall comply with federal and state laws
17-22 related to program and facility accessibility. The commissioner
17-23 shall also prepare and maintain a written plan that describes how a
17-24 person who does not speak English can be provided reasonable access
17-25 to the department's programs and services.
17-26 SECTION 14. Section 11.18, Texas Credit Union Act (Article
17-27 2461-11.18, Vernon's Texas Civil Statutes), is amended to read as
18-1 follows:
18-2 Sec. 11.18. CAREER PROGRAM; PERFORMANCE EVALUATION.
18-3 (a) The commissioner or the commissioner's [his] designee shall
18-4 develop an intra-agency career ladder program that addresses
18-5 opportunities for mobility and advancement for employees within the
18-6 department. The program shall require[, one part of which shall be
18-7 an] intra-agency posting of all nonentry level positions
18-8 concurrently with [for at least 10 days before] any public posting.
18-9 (b) The commissioner or the commissioner's [his] designee
18-10 shall develop a system of annual performance evaluations that are
18-11 based on documented employee performance [measurable job tasks].
18-12 All merit pay for department employees must be based on the system
18-13 established under this section.
18-14 SECTION 15. Chapter 11, Texas Credit Union Act (Article
18-15 2461-11.01 et seq., Vernon's Texas Civil Statutes), is amended by
18-16 adding Section 11.19 to read as follows:
18-17 Sec. 11.19. EQUAL EMPLOYMENT OPPORTUNITY POLICY. (a) The
18-18 commissioner or the commissioner's designee shall prepare and
18-19 maintain a written policy statement to assure implementation of a
18-20 program of equal employment opportunity under which all personnel
18-21 transactions are made without regard to race, color, disability,
18-22 sex, religion, age, or national origin. The policy statement must
18-23 include:
18-24 (1) personnel policies, including policies relating to
18-25 recruitment, evaluation, selection, appointment, training, and
18-26 promotion of personnel that are in compliance with requirements of
18-27 Chapter 21, Labor Code;
19-1 (2) a comprehensive analysis of the department
19-2 workforce that meets federal and state guidelines;
19-3 (3) procedures by which a determination can be made
19-4 about the extent of underuse in the department workforce of all
19-5 persons for whom federal or state guidelines encourage a more
19-6 equitable balance; and
19-7 (4) reasonable methods to appropriately address those
19-8 areas of underuse.
19-9 (b) A policy statement prepared under Subsection (a) must
19-10 cover an annual period, be updated annually and reviewed by the
19-11 Texas Commission on Human Rights for compliance with Subsection
19-12 (a)(1), and be filed with the governor's office.
19-13 (c) The governor's office shall deliver a biennial report to
19-14 the legislature based on the information received under Subsection
19-15 (b). The report may be made separately or as a part of other
19-16 biennial reports made to the legislature.
19-17 SECTION 16. Section 12.01, Texas Credit Union Act (Article
19-18 2461-12.01, Vernon's Texas Civil Statutes), is amended to read as
19-19 follows:
19-20 Sec. 12.01. HEARINGS. (a) The conduct of all hearings held
19-21 under this Act and the judicial review of the final decisions
19-22 following those hearings are governed by the administrative
19-23 procedure law, Chapter 2001, Government Code [the Administrative
19-24 Procedure and Texas Register Act, as amended (Article 6252-13a,
19-25 Vernon's Texas Civil Statutes)]. The commission may adopt rules
19-26 of procedure consistent with that chapter [the Administrative
19-27 Procedure and Texas Register Act, as amended,] for the fair hearing
20-1 and adjudication of all issues in a hearing held under this Act.
20-2 This section does not apply to a meeting under Section 12.03 of
20-3 this Act.
20-4 (b) If the commission proposes to suspend or revoke a credit
20-5 union's certificate of incorporation, the credit union is entitled
20-6 to a hearing conducted by the State Office of Administrative
20-7 Hearings. Proceedings for a disciplinary action are governed by
20-8 the administrative procedure law, Chapter 2001, Government Code.
20-9 Rules of practice adopted by the commission under Section 2001.004,
20-10 Government Code, applicable to the proceedings for a disciplinary
20-11 action may not conflict with rules adopted by the State Office of
20-12 Administrative Hearings.
20-13 SECTION 17. Chapter 12, Texas Credit Union Act (Article
20-14 2461-12.01 et seq., Vernon's Texas Civil Statutes), is amended by
20-15 adding Section 12.03 to read as follows:
20-16 Sec. 12.03. PROCEDURE FOR CERTAIN APPROVALS. (a) This
20-17 section applies to a request for approval by the commissioner of:
20-18 (1) an application for incorporation under Section
20-19 2.03 of this Act;
20-20 (2) a request for approval of an amendment to a credit
20-21 union's articles of incorporation under Section 2.06 of this Act,
20-22 including an amendment to expand the credit union's field of
20-23 membership; and
20-24 (3) a merger or consolidation under Section 10.03 of
20-25 this Act.
20-26 (b) Before approving a request to which this section
20-27 applies, the commissioner shall submit notice of the request to the
21-1 secretary of state for publication in the Texas Register. The
21-2 commission by rule shall provide for other appropriate public
21-3 notice of the request. The commissioner may waive the requirements
21-4 of this subsection or permit delayed public notice on a
21-5 determination that waiver or delay is in the public interest. If
21-6 the requirements of this subsection are waived, the information
21-7 that would be contained in a public notice becomes public
21-8 information under Chapter 552, Government Code, on the 35th day
21-9 after the date the request is made.
21-10 (c) Before making a determination on a request to which this
21-11 section applies, the commissioner must accept comment from any
21-12 interested party that wishes to comment. This comment may be in
21-13 the form of written testimony or may be provided at a meeting with
21-14 the commissioner held for the purpose of receiving this comment.
21-15 This meeting shall be held if requested by any interested party.
21-16 The commissioner may hold the meeting regardless of whether an
21-17 interested party requests the meeting. The commission may
21-18 establish reasonable rules governing the circumstances and conduct
21-19 of the meeting. Chapter 2001, Government Code, does not apply to
21-20 the meeting. Not later than the 60th day after the date the notice
21-21 is published in the Texas Register, or if the notice is not
21-22 published, after the date the request is received, the commissioner
21-23 shall approve or disapprove the application.
21-24 SECTION 18. The Sunset Advisory Commission, as part of its
21-25 evaluation of agencies preceding the meeting of the 77th
21-26 Legislature in 2001, shall:
21-27 (1) evaluate the organizational structure of the
22-1 state's financial regulatory agencies; and
22-2 (2) study the potential effects of placing the Credit
22-3 Union Commission under the jurisdiction of the Finance Commission
22-4 of Texas.
22-5 SECTION 19. (a) The Credit Union Commission and the Finance
22-6 Commission of Texas shall jointly review state law, including
22-7 rules, governing financial institutions in this state. The review
22-8 must include an examination of differences in the authority granted
22-9 by law to the different state regulatory officers and agencies and
22-10 how the officers and agencies differ in their manner of regulating
22-11 the institutions under their respective jurisdictions.
22-12 (b) A report of the review shall be submitted to the Sunset
22-13 Advisory Commission before September 1, 1999.
22-14 SECTION 20. If after the effective date of this Act a
22-15 vacancy exists in a position of member of the Credit Union
22-16 Commission that was held by an individual described by Subsection
22-17 (a), Section 11.02, Texas Credit Union Act (Article 2461-11.02,
22-18 Vernon's Texas Civil Statutes), the vacancy shall be filled by
22-19 appointment of an individual described by Subsection (b) of Section
22-20 11.02 of that Act until the number of public members and members
22-21 who represent credit unions are as prescribed by those sections, as
22-22 amended by this Act.
22-23 SECTION 21. This Act takes effect September 1, 1997.
22-24 SECTION 22. The importance of this legislation and the
22-25 crowded condition of the calendars in both houses create an
22-26 emergency and an imperative public necessity that the
22-27 constitutional rule requiring bills to be read on three several
23-1 days in each house be suspended, and this rule is hereby suspended.