By Brown S.B. No. 358
75R1793 DWS-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the continuation and functions of the Credit Union
1-3 Commission.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 2.03, Texas Credit Union Act (Article
1-6 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended to
1-7 read as follows:
1-8 Sec. 2.03. INCORPORATION PROCEDURE. (a) The incorporators
1-9 shall file with the commissioner:
1-10 (1) the original articles of incorporation in
1-11 duplicate;
1-12 (2) standard bylaws for the general operation of the
1-13 credit union in duplicate;
1-14 (3) a completed application in a form prescribed by
1-15 the commission; and
1-16 (4) the fees required and set by the commission.
1-17 (b) The commissioner may conduct any investigation and
1-18 obtain any information or report from any person, including a law
1-19 enforcement agency, that the commissioner considers necessary.
1-20 (c) [The commission shall adopt rules establishing
1-21 procedures concerning notice of applications to incorporate and
1-22 conditions under which a hearing may be available.]
1-23 [(d)] The commissioner shall approve the application for
1-24 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
2-26 stability of those credit unions. The commissioner also may
2-27 consider the availability and adequacy of financial services in the
3-1 local community and the effect that the incorporation of the credit
3-2 union would have on the local community.
3-3 (e) The [(f) Not later than 90 days after the later of the
3-4 date on which an application is filed or the date on which a
3-5 hearing on the application is held, the] commissioner shall state
3-6 his findings in a written order that approves or denies the
3-7 application to incorporate.
3-8 (f) [(g)] The commission shall adopt rules providing for
3-9 appeal by an incorporator or aggrieved person. The commissioner's
3-10 order may be appealed to the commission not later than 60 days
3-11 after the date of the order. The commission shall, by written
3-12 order, affirm or reverse the decision of the commissioner after
3-13 reviewing the information or evidence it considers necessary or
3-14 relevant.
3-15 (g) [(h)] An order of the commissioner or commission shall
3-16 be promptly mailed to the incorporators by registered or certified
3-17 mail. If the application is approved by the commissioner, in the
3-18 absence of an appeal, or by the commission after conclusion of an
3-19 appeal, the commissioner shall issue a certificate of
3-20 incorporation, deliver copies of the approved articles of
3-21 incorporation and bylaws to the incorporators, and retain copies of
3-22 these documents in the department's permanent files.
3-23 SECTION 2. Section 2.06(b), Texas Credit Union Act (Article
3-24 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended to
3-25 read as follows:
3-26 (b) The board of directors may amend the articles of
3-27 incorporation or bylaws and shall submit amendments to the
4-1 commissioner. The commissioner shall approve or disapprove an
4-2 amendment in writing [not later than 60 days after the date of
4-3 submission, the date of any required publication in the
4-4 department's newsletter, or the date on which a hearing on the
4-5 amendment is held, whichever is later]. In approving an amendment,
4-6 the commissioner shall make the findings and may take the actions
4-7 provided by Subsections (c) and (d) [and (e)] of Section 2.03 of
4-8 this Act. The commissioner may not approve an amendment if the
4-9 commissioner finds that it violates this Act or the rules adopted
4-10 under this Act. The commissioner shall state the reasons for a
4-11 disapproval with reasonable specificity. Amendments become
4-12 effective on approval by the commissioner.
4-13 SECTION 3. Section 10.03, Texas Credit Union Act (Article
4-14 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended by
4-15 adding Subsections (g) and (h) to read as follows:
4-16 (g) In determining whether to approve or disapprove the
4-17 merger or consolidation, the commissioner shall consider the
4-18 availability and adequacy of financial services in the local
4-19 community and the effect that the merger or consolidation would
4-20 have on the local community. The commission by rule shall
4-21 establish other appropriate criteria that the commissioner must
4-22 consider in making the determination.
4-23 (h) The rules adopted under this section must specify in
4-24 detail the procedures that:
4-25 (1) a credit union must follow to obtain commissioner
4-26 approval of a merger or consolidation; and
4-27 (2) the commissioner must follow in approving or
5-1 disapproving the merger or consolidation.
5-2 SECTION 4. Sections 11.01(b) and (c), Texas Credit Union Act
5-3 (Article 2461-1.01 et seq., Vernon's Texas Civil Statutes), are
5-4 amended to read as follows:
5-5 (b) The Credit Union Department is composed of the Credit
5-6 Union Commission and a Credit Union Commissioner, together with
5-7 other officers and employees within the department. The department
5-8 shall supervise and shall regulate, as provided in this Act, all
5-9 credit unions organized under the laws of the State of Texas. The
5-10 department shall periodically make comprehensive studies of the
5-11 statutes of this state as they pertain to credit union operations.
5-12 The commissioner shall report the recommendations of the department
5-13 when and as necessary to the legislature for consideration. The
5-14 [During January of each year, the] department shall prepare
5-15 annually [file with the governor and the presiding officer of each
5-16 house of the legislature] a complete and detailed written report
5-17 accounting for all funds received and disbursed by the department
5-18 during the preceding year. The annual report must meet the
5-19 reporting requirements applicable to financial reporting provided
5-20 in the General Appropriations Act. The financial transactions of
5-21 the department are subject to audit by the state auditor in
5-22 accordance with Chapter 321, Government Code.
5-23 (c) The Credit Union Commission is subject to Chapter 325,
5-24 Government Code (Texas Sunset Act). Unless continued in existence
5-25 as provided by that chapter, the commission is abolished and this
5-26 Act expires September 1, 2001 [1997].
5-27 SECTION 5. Section 11.02, Texas Credit Union Act (Article
6-1 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended to
6-2 read as follows:
6-3 Sec. 11.02. ELIGIBILITY OF MEMBERS. (a) Four [Six] members
6-4 of the commission must be individuals who are currently engaged in
6-5 the exercise of the duties, responsibilities, rights, and powers of
6-6 a duly authorized director, officer, or committee member of a
6-7 credit union that is organized and doing business in this state
6-8 under this Act or the Federal Credit Union Act and that has its
6-9 principal office in this state, and who have five years or more of
6-10 active experience as such a director, officer, or committee member.
6-11 No more than one person from a federal credit union may serve on
6-12 the commission at any time. Experience as a commissioner, deputy
6-13 commissioner, or examiner is equivalent to the type of experience
6-14 required by this subsection. If a person holding a position in
6-15 accordance with this subsection ceases to be engaged in the
6-16 exercise of the duties, responsibilities, rights, and powers
6-17 prescribed by this subsection for a period exceeding 90 days, the
6-18 person is ineligible to serve as a member and the person's position
6-19 on the commission is vacant.
6-20 (b) Five [Three] members of the commission are
6-21 representatives of the general public. A person is not eligible
6-22 for appointment as a public member of [An individual appointed to
6-23 serve in that capacity may not, at the time of the individual's
6-24 appointment to or while serving on] the commission if the person or
6-25 the person's spouse:
6-26 (1) is employed by or participates [be engaged] in the
6-27 management or direction of a financial institution or other
7-1 organization regulated by the department or receiving funds from
7-2 the department [, such as a credit union, bank, or savings and loan
7-3 association]; [or]
7-4 (2) has [have], other than as a member or customer, a
7-5 financial interest in a financial institution or other organization
7-6 regulated by the department or receiving funds from the department;
7-7 or
7-8 (3) uses or receives a substantial amount of tangible
7-9 goods, services, or funds from the department, other than
7-10 compensation or reimbursement authorized by law for commission
7-11 membership, attendance, or expenses[, such as a credit union, bank,
7-12 or savings and loan association].
7-13 (c) No two members of the commission may be residents of the
7-14 same state senatorial district.
7-15 (d) An officer, employee, or paid consultant of a Texas [A
7-16 person currently serving as chairman, first vice-chairman,
7-17 president, vice-president, secretary, or treasurer of a state]
7-18 trade association in the credit union industry[, or an employee of
7-19 such an organization,] may not serve as a member of the commission
7-20 and may not be an employee of the department who is exempt from the
7-21 state's position classification plan or is compensated at or above
7-22 the amount prescribed by the General Appropriations Act for step 1,
7-23 salary group 17, of the position classification salary schedule.
7-24 (e) A person who is the spouse of an officer, manager, or
7-25 paid consultant of a Texas trade association in the credit union
7-26 industry may not be a member of the commission and may not be an
7-27 employee of the department who is exempt from the state's position
8-1 classification plan or is compensated at or above the amount
8-2 prescribed by the General Appropriations Act for step 1, salary
8-3 group 17, of the position classification salary schedule.
8-4 (f) For the purposes of this section, a Texas trade
8-5 association is a nonprofit, cooperative, and voluntarily joined
8-6 association of business or professional competitors in this state
8-7 designed to assist its members and its industry or profession in
8-8 dealing with mutual business or professional problems and in
8-9 promoting their common interest.
8-10 (g) [(e)] A person may not serve as a member of the
8-11 commission or act as the general counsel to the commission or the
8-12 department if the person [who] is required to register as a
8-13 lobbyist under Chapter 305, Government Code, because of the
8-14 person's activities for compensation on behalf of a profession
8-15 related to the operation of [may not serve as a member of the
8-16 commission or act as the general counsel to] the commission.
8-17 SECTION 6. Section 11.03(a), Texas Credit Union Act (Article
8-18 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended to
8-19 read as follows:
8-20 (a) The members of the commission are appointed, without
8-21 regard to race, color, creed, disability, sex, religion, age, or
8-22 national origin, by the governor, with the advice and consent of
8-23 the senate, for terms of six years, with the terms of three members
8-24 expiring February 15 of each odd-numbered year. The governor shall
8-25 appoint the members who are representatives of the general public
8-26 on the basis of recognized business ability.
8-27 SECTION 7. Chapter 11, Texas Credit Union Act (Article
9-1 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended by
9-2 adding Section 11.031 to read as follows:
9-3 Sec. 11.031. TRAINING PROGRAM. (a) Before a member of the
9-4 commission may assume the member's duties and before the member may
9-5 be confirmed by the senate, the member must complete at least one
9-6 course of the training program established under this section.
9-7 (b) A training program established under this section shall
9-8 provide information to the member regarding:
9-9 (1) the enabling legislation that created the
9-10 department and its policy-making body to which the member is
9-11 appointed to serve;
9-12 (2) the programs operated by the department;
9-13 (3) the role and functions of the department;
9-14 (4) the rules of the commission with an emphasis on
9-15 the rules that relate to disciplinary and investigatory authority;
9-16 (5) the current budget for the department;
9-17 (6) the results of the most recent formal audit of the
9-18 department;
9-19 (7) the requirements of the:
9-20 (A) open meetings law, Chapter 551, Government
9-21 Code;
9-22 (B) open records law, Chapter 552, Government
9-23 Code; and
9-24 (C) administrative procedure law, Chapter 2001,
9-25 Government Code;
9-26 (8) the requirements of the conflict of interest laws
9-27 and other laws relating to public officials; and
10-1 (9) any applicable ethics policies adopted by the
10-2 department or the Texas Ethics Commission.
10-3 SECTION 8. Section 11.04, Texas Credit Union Act (Article
10-4 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended to
10-5 read as follows:
10-6 Sec. 11.04. VACANCIES; REMOVAL. (a) The office of a member
10-7 of the commission becomes vacant on January 1 if the member failed
10-8 to attend more than one-half of the meetings of the commission held
10-9 during the preceding calendar year, excluding any meetings held
10-10 before the member assumed office.
10-11 (b) The governor may remove a member from the member's
10-12 position on the commission for neglect of duty, incompetence, or
10-13 fraudulent or criminal conduct.
10-14 (c) It is grounds for removal from the commission if a
10-15 member:
10-16 (1) does not have at the time of appointment the
10-17 qualifications required by Section 11.02;
10-18 (2) does not maintain during service on the commission
10-19 the qualifications required by Section 11.02;
10-20 (3) violates a prohibition established by Section
10-21 11.02;
10-22 (4) cannot because of illness or disability discharge
10-23 the member's duties for a substantial part of the term for which
10-24 the member is appointed; or
10-25 (5) is absent from more than half of the regularly
10-26 scheduled commission meetings that the member is eligible to attend
10-27 during a calendar year unless the absence is excused by majority
11-1 vote of the commission.
11-2 (d) The validity of an action of the commission is not
11-3 affected by the fact that it is taken when a ground for removal of
11-4 a commission member exists.
11-5 (e) If the commissioner has knowledge that a potential
11-6 ground for removal exists, the commissioner shall notify the
11-7 presiding officer of the commission of the potential ground. The
11-8 presiding officer shall then notify the governor and the attorney
11-9 general that a potential ground for removal exists. If the
11-10 potential ground for removal involves the presiding officer, the
11-11 commissioner shall notify the next highest officer of the
11-12 commission, who shall notify the governor and the attorney general
11-13 that a potential ground for removal exists [violates a prohibition
11-14 established by Section 11.02(e) of this Act].
11-15 (f) [(d)] The office of a member of the commission is vacant
11-16 in the event of the death, resignation, or removal of the member,
11-17 or if the member ceases to have the qualifications necessary to
11-18 serve as a member.
11-19 (g) [(e)] In the event of a vacancy on the commission for
11-20 any cause, the governor, with the advice and consent of the senate,
11-21 shall promptly appoint a qualified person to fill the unexpired
11-22 term.
11-23 [(f) The validity of an action of the commission is not
11-24 affected by the fact that it was taken when a ground for removal of
11-25 a member of the commission existed.]
11-26 SECTION 9. Sections 11.06(a), (c), and (e), Texas Credit
11-27 Union Act (Article 2461-1.01 et seq., Vernon's Texas Civil
12-1 Statutes), are amended to read as follows:
12-2 (a) The commission shall hold regular meetings at least
12-3 twice each year. The chairman of the commission, the commissioner,
12-4 or any five members of the commission may call special meetings.
12-5 The commission shall adopt reasonable rules governing the time and
12-6 place of meetings and the conduct of all meetings, including the
12-7 form in which minutes of the meetings are maintained. The [All
12-8 meetings of the] commission is [are] subject to the Open Meetings
12-9 Law, Chapter 551, Government Code, and the administrative procedure
12-10 law, Chapter 2001, Government Code [271, Acts of the 60th
12-11 Legislature, 1967, as amended (Article 6252-17, Vernon's Texas
12-12 Civil Statutes)].
12-13 (c) The governor shall designate a member of the commission
12-14 as presiding officer of the commission to serve in that capacity at
12-15 the pleasure of the governor [commission shall annually elect a
12-16 chairman and vice-chairman from among its members. The chairman
12-17 shall preside at all meetings of the commission, and the
12-18 vice-chairman shall preside in the absence of the chairman. If
12-19 both the chairman and vice-chairman are absent from a meeting, the
12-20 most senior member of the commission in attendance at the meeting
12-21 shall serve as acting chairman].
12-22 (e) No commission member may act on matters under
12-23 consideration which directly affect [and specifically relate to]
12-24 any credit union of which the member of the commission is an
12-25 officer, director, or member. The commission shall adopt rules
12-26 relating to recusal of members, requiring that a member who has a
12-27 personal or private interest in a measure, proposal, or decision
13-1 pending before the commission shall publicly disclose the fact to
13-2 the commission at a meeting held in compliance with Chapter 551,
13-3 Government Code. The member may not vote or otherwise participate
13-4 in the decision. The disclosure shall be entered into the minutes
13-5 of the meeting.
13-6 SECTION 10. Chapter 11, Texas Credit Union Act (Article
13-7 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended by
13-8 adding Section 11.061 to read as follows:
13-9 Sec. 11.061. RECEIPT OF PUBLIC COMMENTS; NOTICE OF
13-10 COMMISSION ACTIVITIES. (a) The commission shall develop and
13-11 implement policies that provide the public with a reasonable
13-12 opportunity to appear before the commission and to speak on any
13-13 issue under the jurisdiction of the department.
13-14 (b) The commission shall adopt rules providing for public
13-15 notice of department activities.
13-16 SECTION 11. Section 11.07, Texas Credit Union Act (Article
13-17 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended by
13-18 adding Subsections (d) and (e) to read as follows:
13-19 (d) The commission may not adopt rules restricting
13-20 competitive bidding or advertising by a credit union except to
13-21 prohibit false, misleading, or deceptive practices.
13-22 (e) In its rules to prohibit false, misleading, or deceptive
13-23 practices, the commission may not include a rule that:
13-24 (1) restricts the use of any medium for advertising;
13-25 (2) relates to the size or duration of an
13-26 advertisement by the credit union; or
13-27 (3) restricts the credit union's advertisement under a
14-1 trade name.
14-2 SECTION 12. Chapter 11, Texas Credit Union Act (Article
14-3 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended by
14-4 adding Section 11.071 to read as follows:
14-5 Sec. 11.071. SEPARATION OF RESPONSIBILITIES. The commission
14-6 shall develop and implement policies that clearly separate the
14-7 policy-making responsibilities of the commission and the management
14-8 responsibilities of the commissioner and the staff of the
14-9 department.
14-10 SECTION 13. Section 11.10, Texas Credit Union Act (Article
14-11 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended to
14-12 read as follows:
14-13 Sec. 11.10. POWERS OF CREDIT UNION COMMISSIONER. (a) On
14-14 the appointment and qualification of a commissioner, the
14-15 commissioner shall supervise and regulate all credit unions doing
14-16 business in this state, except federal credit unions organized and
14-17 existing under federal law, in accordance with this Act and the
14-18 rules and regulations promulgated under this Act.
14-19 (b) The commissioner shall enforce the provisions of this
14-20 Act and the rules and regulations promulgated from time to time.
14-21 (c) The commissioner shall levy and collect all supervision
14-22 fees, charges, and revenues required to be paid by credit unions as
14-23 provided by Subsection (c), Section 11.07, of this Act. All money
14-24 paid to the department [collected] under this Act is subject to
14-25 Subchapter F, Chapter 404, Government Code [shall be deposited in
14-26 the credit union department expense fund, which is created as a
14-27 special fund in the state treasury. Money in the fund may be used
15-1 only for the administration of this Act. Income earned on the
15-2 money deposited in the credit union department expense fund shall
15-3 be credited to that fund].
15-4 (d) The commissioner or the commissioner's designee shall
15-5 provide to members of the commission and to department employees,
15-6 as often as necessary, information regarding their qualification
15-7 for office or employment under this Act and their responsibilities
15-8 under applicable laws relating to standards of conduct for state
15-9 officers or employees.
15-10 (e) The commission shall promulgate, and the commissioner
15-11 shall enforce, reasonable rules requiring credit unions to provide
15-12 or cause to be provided share and deposit insurance protection for
15-13 their members and depositors, including the authorization and
15-14 establishment of a share and deposit guaranty corporation or credit
15-15 union under the exclusive regulation of the department to enable
15-16 the department to carry out the purposes of this Act. Share and
15-17 deposit insurance protection may also be provided through other
15-18 sources approved by the department, including such a program of the
15-19 National Credit Union Administration.
15-20 (f) The commissioner shall supervise the establishment and
15-21 maintenance of files regarding each written complaint filed with
15-22 [complaints about credit unions received by] the department that
15-23 the department has authority to resolve. The files must include
15-24 all relevant information regarding the nature, status, and
15-25 disposition of the complaints. The department [commissioner] shall
15-26 provide to the person filing the complaint and the persons or
15-27 entities complained about the department's policies and procedures
16-1 pertaining to complaint investigation and resolution. The
16-2 department, at least [take the steps that the commissioner
16-3 determines to be necessary to notify each complainant of the
16-4 procedures and remedies available for the resolution of complaints.
16-5 After a written complaint is filed, the commissioner, at least as
16-6 frequently as] quarterly and until final disposition of the
16-7 complaint, shall notify the parties to the complaint of the status
16-8 of the complaint unless the notice would jeopardize an undercover
16-9 investigation.
16-10 (g) The department shall keep information about each
16-11 complaint filed with the department. The information shall
16-12 include:
16-13 (1) the date the complaint is received;
16-14 (2) the name of the complainant;
16-15 (3) the subject matter of the complaint;
16-16 (4) a record of all persons contacted in relation to
16-17 the complaint;
16-18 (5) a summary of the results of the review or
16-19 investigation of the complaint; and
16-20 (6) for complaints for which the department took no
16-21 action, an explanation of the reason the complaint was closed
16-22 without action.
16-23 (h) [(g)] The commissioner shall supervise the preparation
16-24 of public interest information describing [regarding] the
16-25 [regulatory] functions of the department, procedures for filing and
16-26 resolution of complaints, and other matters of general interest
16-27 regarding [the] credit unions. The commissioner [union movement
17-1 and] shall make the [supervise the dissemination of that]
17-2 information available to the general public and appropriate state
17-3 agencies.
17-4 (i) The commission by rule shall establish methods by which
17-5 consumers and service recipients are notified of the name, mailing
17-6 address, and telephone number of the department for the purpose of
17-7 directing complaints to the department. The commission may provide
17-8 for that notification:
17-9 (1) on each registration form, application, or written
17-10 contract for services of a credit union regulated under this Act;
17-11 (2) on a sign prominently displayed in the place of
17-12 business of each credit union regulated under this Act; or
17-13 (3) in a bill for service provided by a credit union
17-14 regulated under this Act.
17-15 (j) The department shall comply with federal and state laws
17-16 related to program and facility accessibility. The commissioner
17-17 shall also prepare and maintain a written plan that describes how a
17-18 person who does not speak English can be provided reasonable access
17-19 to the department's programs and services.
17-20 SECTION 14. Section 11.18, Texas Credit Union Act (Article
17-21 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended to
17-22 read as follows:
17-23 Sec. 11.18. CAREER PROGRAM; PERFORMANCE EVALUATION. (a)
17-24 The commissioner or the commissioner's [his] designee shall develop
17-25 an intra-agency career ladder program that addresses opportunities
17-26 for mobility and advancement for employees within the department.
17-27 The program shall require [, one part of which shall be an]
18-1 intra-agency posting of all nonentry level positions concurrently
18-2 with [for at least 10 days before] any public posting.
18-3 (b) The commissioner or the commissioner's [his] designee
18-4 shall develop a system of annual performance evaluations that are
18-5 based on documented employee performance [measurable job tasks].
18-6 All merit pay for department employees must be based on the system
18-7 established under this section.
18-8 SECTION 15. Chapter 11, Texas Credit Union Act (Article
18-9 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended by
18-10 adding Section 11.19 to read as follows:
18-11 Sec. 11.19. EQUAL EMPLOYMENT OPPORTUNITY POLICY. (a) The
18-12 commissioner or the commissioner's designee shall prepare and
18-13 maintain a written policy statement to assure implementation of a
18-14 program of equal employment opportunity under which all personnel
18-15 transactions are made without regard to race, color, disability,
18-16 sex, religion, age, or national origin. The policy statement must
18-17 include:
18-18 (1) personnel policies, including policies relating to
18-19 recruitment, evaluation, selection, appointment, training, and
18-20 promotion of personnel that are in compliance with requirements of
18-21 Chapter 21, Labor Code;
18-22 (2) a comprehensive analysis of the department
18-23 workforce that meets federal and state guidelines;
18-24 (3) procedures by which a determination can be made
18-25 about the extent of underuse in the department workforce of all
18-26 persons for whom federal or state guidelines encourage a more
18-27 equitable balance; and
19-1 (4) reasonable methods to appropriately address those
19-2 areas of underuse.
19-3 (b) A policy statement prepared under Subsection (a) must
19-4 cover an annual period, be updated annually and reviewed by the
19-5 Texas Commission on Human Rights for compliance with Subsection
19-6 (a)(1), and be filed with the governor's office.
19-7 (c) The governor's office shall deliver a biennial report to
19-8 the legislature based on the information received under Subsection
19-9 (b). The report may be made separately or as a part of other
19-10 biennial reports made to the legislature.
19-11 SECTION 16. Section 12.01, Texas Credit Union Act (Article
19-12 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended to
19-13 read as follows:
19-14 Sec. 12.01. HEARINGS. (a) The conduct of all hearings held
19-15 under this Act and the judicial review of the final decisions
19-16 following those hearings are governed by the administrative
19-17 procedure law, Chapter 2001, Government Code [the Administrative
19-18 Procedure and Texas Register Act, as amended (Article 6252-13a,
19-19 Vernon's Texas Civil Statutes)]. The commission may adopt rules
19-20 of procedure consistent with that chapter [the Administrative
19-21 Procedure and Texas Register Act, as amended,] for the fair hearing
19-22 and adjudication of all issues in a hearing held under this Act.
19-23 This section does not apply to a hearing under Section 12.03 of
19-24 this Act.
19-25 (b) If the commission proposes to suspend or revoke a credit
19-26 union's certificate of incorporation, the credit union is entitled
19-27 to a hearing conducted by the State Office of Administrative
20-1 Hearings. Proceedings for a disciplinary action are governed by
20-2 the administrative procedure law, Chapter 2001, Government Code.
20-3 Rules of practice adopted by the commission under Section 2001.004,
20-4 Government Code, applicable to the proceedings for a disciplinary
20-5 action may not conflict with rules adopted by the State Office of
20-6 Administrative Hearings.
20-7 SECTION 17. Chapter 12, Texas Credit Union Act (Article
20-8 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended by
20-9 adding Section 12.03 to read as follows:
20-10 Sec. 12.03. PROCEDURE FOR CERTAIN APPROVALS. (a) This
20-11 section applies to a request for approval by the commissioner of:
20-12 (1) an application for incorporation under Section
20-13 2.03 of this Act;
20-14 (2) a request for approval of an amendment to a credit
20-15 union's articles of incorporation under Section 2.06 of this Act,
20-16 including an amendment to expand the credit union's field of
20-17 membership; and
20-18 (3) a merger or consolidation under Section 10.03 of
20-19 this Act.
20-20 (b) Before approving a request to which this section
20-21 applies, the commissioner shall submit notice of the request to the
20-22 secretary of state for publication in the Texas Register. The
20-23 commission by rule shall provide for other appropriate public
20-24 notice of the request. The commissioner may waive the requirements
20-25 of this subsection or permit delayed public notice on a
20-26 determination that waiver or delay is in the public interest. If
20-27 the requirements of this subsection are waived, the information
21-1 that would be contained in a public notice becomes public
21-2 information under Chapter 552, Government Code, on the 35th day
21-3 after the date the request is made.
21-4 (c) Before making a determination on a request to which this
21-5 section applies, the commissioner must accept comment from any
21-6 person who wishes to comment. This comment may be in the form of
21-7 written testimony or may be provided at a commissioner hearing held
21-8 for the purpose of receiving this comment. This hearing shall be
21-9 held if requested by any person. The commissioner may hold the
21-10 hearing regardless of whether a person requests the hearing. The
21-11 hearing is confidential. Chapter 2001, Government Code, does not
21-12 apply to the hearing. Not later than the 60th day after the date
21-13 the notice is published in the Texas Register, or if the notice is
21-14 not published, after the date the request is received, the
21-15 commissioner shall approve or disapprove the application.
21-16 SECTION 18. The Sunset Advisory Commission, as part of its
21-17 evaluation of agencies preceding the meeting of the 77th
21-18 Legislature in 2001, shall:
21-19 (1) evaluate the organizational structure of the
21-20 state's financial regulatory agencies; and
21-21 (2) study the potential effects of placing the Credit
21-22 Union Commission under the jurisdiction of the Finance Commission
21-23 of Texas.
21-24 SECTION 19. (a) The Credit Union Commission and the Finance
21-25 Commission of Texas shall jointly review state law, including
21-26 rules, governing financial institutions in this state. The review
21-27 must include an examination of differences in the authority granted
22-1 by law to the different state regulatory officers and agencies and
22-2 how the officers and agencies differ in their manner of regulating
22-3 the institutions under their respective jurisdictions.
22-4 (b) A report of the review shall be submitted to the Sunset
22-5 Advisory Commission before September 1, 1999.
22-6 SECTION 20. If after the effective date of this Act a
22-7 vacancy exists in a position of member of the Credit Union
22-8 Commission that was held by an individual described by Section
22-9 11.02(a), Texas Credit Union Act (Article 2461-1.01 et seq.,
22-10 Vernon's Texas Civil Statutes), the vacancy shall be filled by
22-11 appointment of an individual described by Section 11.02(b) of that
22-12 Act until the number of public members and members who represent
22-13 credit unions are as prescribed by those sections, as amended by
22-14 this Act.
22-15 SECTION 21. This Act takes effect September 1, 1997.
22-16 SECTION 22. The importance of this legislation and the
22-17 crowded condition of the calendars in both houses create an
22-18 emergency and an imperative public necessity that the
22-19 constitutional rule requiring bills to be read on three several
22-20 days in each house be suspended, and this rule is hereby suspended.