1-1 By: Brown S.B. No. 358
1-2 (In the Senate - Filed February 24, 1997; February 26, 1997,
1-3 read first time and referred to Committee on State Affairs;
1-4 April 8, 1997, reported favorably, as amended, by the following
1-5 vote: Yeas 13, Nays 0; April 8, 1997, sent to printer.)
1-6 COMMITTEE AMENDMENT NO. 1 By: Nelson
1-7 Amend S.B. No. 358 on page 5 by striking lines 33-41 and
1-8 substituting:
1-9 (1) is employed by or participates [be engaged] in the
1-10 management or direction of:
1-11 (A) a financial institution; or
1-12 (B) an organization, other than a financial
1-13 institution, regulated by the department or receiving funds from
1-14 the department [, such as a credit union, bank, or savings and loan
1-15 association]; [or]
1-16 (2) has [have], other than as a member or customer, a
1-17 financial interest in:
1-18 (A) a financial institution; or
1-19 (B) an organization, other than a financial
1-20 institution, regulated by the department or receiving funds from
1-21 the department; or
1-22 COMMITTEE AMENDMENT NO. 2 By: Gallegos, Galloway
1-23 Amend Committee Amendment No. 1:
1-24 (1) On line 13, by striking "the department" and replacing
1-25 it with "any financial institution regulatory agency".
1-26 (2) On line 14, by striking "the department" and replacing
1-27 it with "such agency".
1-28 (3) On line 20, by striking "the department" and replacing
1-29 it with "any financial institution regulatory agency".
1-30 (4) On line 21, by striking "the department" and replacing
1-31 it with "such agency".
1-32 COMMITTEE AMENDMENT NO. 3 By: Nixon
1-33 Amend S.B. No. 358 by striking SECTION 8 of the bill and
1-34 substituting the following:
1-35 SECTION 8. Section 11.04, Texas Credit Union Act (Article
1-36 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended to
1-37 read as follows:
1-38 Sec. 11.04. VACANCIES; REMOVAL. (a) [The office of a
1-39 member of the commission becomes vacant on January 1 if the member
1-40 failed to attend more than one-half of the meetings of the
1-41 commission held during the preceding calendar year, excluding any
1-42 meetings held before the member assumed office.]
1-43 [(b)] The governor may remove a member from the member's
1-44 position on the commission for neglect of duty, incompetence, or
1-45 fraudulent or criminal conduct.
1-46 (b) [(c)] It is grounds for removal from the commission if a
1-47 member:
1-48 (1) does not have at the time of appointment the
1-49 qualifications required by Section 11.02;
1-50 (2) does not maintain during service on the commission
1-51 the qualifications required by Section 11.02;
1-52 (3) violates a prohibition established by Section
1-53 11.02;
1-54 (4) cannot because of illness or disability discharge
1-55 the member's duties for a substantial part of the term for which
1-56 the member is appointed; or
1-57 (5) is absent from more than half of the regularly
1-58 scheduled commission meetings that the member is eligible to attend
1-59 during a calendar year unless the absence is excused by majority
1-60 vote of the commission.
1-61 (c) The validity of an action of the commission is not
1-62 affected by the fact that it is taken when a ground for removal of
1-63 a commission member exists.
1-64 (d) If the commissioner has knowledge that a potential
2-1 ground for removal exists, the commissioner shall notify the
2-2 presiding officer of the commission of the potential ground. The
2-3 presiding officer shall then notify the governor and the attorney
2-4 general that a potential ground for removal exists. If the
2-5 potential ground for removal involves the presiding officer, the
2-6 commissioner shall notify the next highest officer of the
2-7 commission, who shall notify the governor and the attorney general
2-8 that a potential ground for removal exists [violates a prohibition
2-9 established by Section 11.02(e) of this Act].
2-10 (e) [(d)] The office of a member of the commission is vacant
2-11 in the event of the death, resignation, or removal of the member,
2-12 or if the member ceases to have the qualifications necessary to
2-13 serve as a member.
2-14 (f) [(e)] In the event of a vacancy on the commission for
2-15 any cause, the governor, with the advice and consent of the senate,
2-16 shall promptly appoint a qualified person to fill the unexpired
2-17 term.
2-18 [(f) The validity of an action of the commission is not
2-19 affected by the fact that it was taken when a ground for removal of
2-20 a member of the commission existed.]
2-21 COMMITTEE AMENDMENT NO. 4 By: Carona
2-22 Amend S.B. 358, SECTION 17, by striking Subsection (c) of proposed
2-23 Section 12.03, and inserting the following:
2-24 (c) Before making a determination on a request to which this
2-25 section applies, the commissioner must accept comment from any
2-26 person who wishes to comment. This comment may be in the form of
2-27 written testimony or may be provided at a hearing which the
2-28 commissioner may hold, in accordance with rules established by the
2-29 commission, for the purpose of receiving this comment. Chapter
2-30 2001, Government Code, does not apply to the hearing. Not later
2-31 than the 60th day after the date the notice is published in the
2-32 Texas Register or the date on which a hearing on the application is
2-33 held, the commissioner shall approve or disapprove the application.
2-34 If the notice is not published, the commissioner shall approve or
2-35 disapprove the application not later than the 60th day after the
2-36 date the request is received.
2-37 COMMITTEE AMENDMENT NO. 5 By: Carona
2-38 Amend S.B. No. 358, SECTION 9, Section 11.06, Texas Credit Union
2-39 Act, on page 7, line 54, by striking "affect [and specifically
2-40 relate to]" and substituting "and specifically relate to".
2-41 COMMITTEE AMENDMENT NO. 6 By: Gallegos
2-42 Amend S.B. No. 358 in SECTION 4 of the bill on page 5, lines 5-6,
2-43 in Section 11.01(c), Texas Credit Union Act (Article 2461-1.01 et
2-44 seq., Vernon's Texas Civil Statutes), by striking the words "and
2-45 this Act expires September 1, 2001" and replacing with the words
2-46 "September 1, 2009".
2-47 COMMITTEE AMENDMENT NO. 7 By: Gallegos
2-48 Amend S.B. No. 358, SECTION 5, as follows:
2-49 (1) On page 5, line 49, by striking the word "Texas"; and
2-50 (2) On page 5, line 52, by striking the words "in the credit
2-51 union industry" and replacing with the words "representing or
2-52 affiliated with a financial institution group or any entity
2-53 affiliated with financial institutions [in the credit union
2-54 industry]"; and
2-55 (3) On page 5, line 59, by striking the word "Texas"; and
2-56 (4) On page 5, line 60, by striking the words "in the credit
2-57 union industry" and replacing with the words "representing or
2-58 affiliated with a financial institution group or any entity
2-59 affiliated with financial institutions"; and
2-60 (5) On page 5, line 65, by striking the word "Texas"; and
2-61 (6) On page 5, line 67, by striking the words "in this
2-62 state"
2-63 COMMITTEE AMENDMENT NO. 8 By: Nixon
2-64 Amend S.B. No. 358, SECTION 7, on page 6, line 49, by adding
2-65 "(10) the basic principles and responsibilities of
2-66 credit union management".
2-67 A BILL TO BE ENTITLED
2-68 AN ACT
2-69 relating to the continuation and functions of the Credit Union
3-1 Commission.
3-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
3-3 SECTION 1. Section 2.03, Texas Credit Union Act (Article
3-4 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended to
3-5 read as follows:
3-6 Sec. 2.03. INCORPORATION PROCEDURE. (a) The incorporators
3-7 shall file with the commissioner:
3-8 (1) the original articles of incorporation in
3-9 duplicate;
3-10 (2) standard bylaws for the general operation of the
3-11 credit union in duplicate;
3-12 (3) a completed application in a form prescribed by
3-13 the commission; and
3-14 (4) the fees required and set by the commission.
3-15 (b) The commissioner may conduct any investigation and
3-16 obtain any information or report from any person, including a law
3-17 enforcement agency, that the commissioner considers necessary.
3-18 (c) [The commission shall adopt rules establishing
3-19 procedures concerning notice of applications to incorporate and
3-20 conditions under which a hearing may be available.]
3-21 [(d)] The commissioner shall approve the application for
3-22 incorporation if the incorporators have complied with this Act and
3-23 the rules adopted under this Act and the commissioner finds from
3-24 the information furnished with the application, the results of any
3-25 investigation, the evidence submitted at any hearing, and the
3-26 information in the official records in the department that:
3-27 (1) the character and general fitness of the
3-28 incorporators and the members of the initial board of directors
3-29 warrant belief that the business and affairs of the credit union
3-30 will be properly administered in accordance with this Act and the
3-31 rules adopted under this Act;
3-32 (2) the character and size of the field of membership
3-33 proposed to be served by the credit union conforms with this Act
3-34 and the rules adopted under this Act and are favorable to the
3-35 economic viability of the credit union; and
3-36 (3) the incorporators and the members of the initial
3-37 board of directors are acting in good faith and are making the
3-38 application in accordance with the purposes of this Act.
3-39 (d) [(e)] In addition to the findings under Subsection (c)
3-40 [(d)] of this section, the commissioner shall, in accordance with
3-41 rules the commission may adopt, consider the effect of overlapping
3-42 fields of membership on the applicant credit union and existing
3-43 state or federal credit unions doing business in this state, and
3-44 the commissioner may, as a condition of approval of the
3-45 application, require the applicant credit union to limit or
3-46 eliminate overlaps, in accordance with the rules, if any, in order
3-47 to achieve the purposes of this Act and promote the welfare and
3-48 stability of those credit unions. The commissioner also may
3-49 consider the availability and adequacy of financial services in the
3-50 local community and the effect that the incorporation of the credit
3-51 union would have on the local community.
3-52 (e) The [(f) Not later than 90 days after the later of the
3-53 date on which an application is filed or the date on which a
3-54 hearing on the application is held, the] commissioner shall state
3-55 his findings in a written order that approves or denies the
3-56 application to incorporate.
3-57 (f) [(g)] The commission shall adopt rules providing for
3-58 appeal by an incorporator or aggrieved person. The commissioner's
3-59 order may be appealed to the commission not later than 60 days
3-60 after the date of the order. The commission shall, by written
3-61 order, affirm or reverse the decision of the commissioner after
3-62 reviewing the information or evidence it considers necessary or
3-63 relevant.
3-64 (g) [(h)] An order of the commissioner or commission shall
3-65 be promptly mailed to the incorporators by registered or certified
3-66 mail. If the application is approved by the commissioner, in the
3-67 absence of an appeal, or by the commission after conclusion of an
3-68 appeal, the commissioner shall issue a certificate of
3-69 incorporation, deliver copies of the approved articles of
4-1 incorporation and bylaws to the incorporators, and retain copies of
4-2 these documents in the department's permanent files.
4-3 SECTION 2. Subsection (b), Section 2.06, Texas Credit Union
4-4 Act (Article 2461-1.01 et seq., Vernon's Texas Civil Statutes), is
4-5 amended to read as follows:
4-6 (b) The board of directors may amend the articles of
4-7 incorporation or bylaws and shall submit amendments to the
4-8 commissioner. The commissioner shall approve or disapprove an
4-9 amendment in writing [not later than 60 days after the date of
4-10 submission, the date of any required publication in the
4-11 department's newsletter, or the date on which a hearing on the
4-12 amendment is held, whichever is later]. In approving an amendment,
4-13 the commissioner shall make the findings and may take the actions
4-14 provided by Subsections (c) and (d) [and (e)] of Section 2.03 of
4-15 this Act. The commissioner may not approve an amendment if the
4-16 commissioner finds that it violates this Act or the rules adopted
4-17 under this Act. The commissioner shall state the reasons for a
4-18 disapproval with reasonable specificity. Amendments become
4-19 effective on approval by the commissioner.
4-20 SECTION 3. Section 10.03, Texas Credit Union Act (Article
4-21 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended by
4-22 adding Subsections (g) and (h) to read as follows:
4-23 (g) In determining whether to approve or disapprove the
4-24 merger or consolidation, the commissioner shall consider the
4-25 availability and adequacy of financial services in the local
4-26 community and the effect that the merger or consolidation would
4-27 have on the local community. The commission by rule shall
4-28 establish other appropriate criteria that the commissioner must
4-29 consider in making the determination.
4-30 (h) The rules adopted under this section must specify in
4-31 detail the procedures that:
4-32 (1) a credit union must follow to obtain commissioner
4-33 approval of a merger or consolidation; and
4-34 (2) the commissioner must follow in approving or
4-35 disapproving the merger or consolidation.
4-36 SECTION 4. Subsections (b) and (c), Section 11.01, Texas
4-37 Credit Union Act (Article 2461-1.01 et seq., Vernon's Texas Civil
4-38 Statutes), are amended to read as follows:
4-39 (b) The Credit Union Department is composed of the Credit
4-40 Union Commission and a Credit Union Commissioner, together with
4-41 other officers and employees within the department. The department
4-42 shall supervise and shall regulate, as provided in this Act, all
4-43 credit unions organized under the laws of the State of Texas. The
4-44 department shall periodically make comprehensive studies of the
4-45 statutes of this state as they pertain to credit union operations.
4-46 The commissioner shall report the recommendations of the department
4-47 when and as necessary to the legislature for consideration. The
4-48 [During January of each year, the] department shall prepare
4-49 annually [file with the governor and the presiding officer of each
4-50 house of the legislature] a complete and detailed written report
4-51 accounting for all funds received and disbursed by the department
4-52 during the preceding year. The annual report must meet the
4-53 reporting requirements applicable to financial reporting provided
4-54 in the General Appropriations Act. The financial transactions of
4-55 the department are subject to audit by the state auditor in
4-56 accordance with Chapter 321, Government Code.
4-57 (c) The Credit Union Commission is subject to Chapter 325,
4-58 Government Code (Texas Sunset Act). Unless continued in existence
4-59 as provided by that chapter, the commission is abolished and this
4-60 Act expires September 1, 2001 [1997].
4-61 SECTION 5. Section 11.02, Texas Credit Union Act (Article
4-62 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended to
4-63 read as follows:
4-64 Sec. 11.02. ELIGIBILITY OF MEMBERS. (a) Four [Six] members
4-65 of the commission must be individuals who are currently engaged in
4-66 the exercise of the duties, responsibilities, rights, and powers of
4-67 a duly authorized director, officer, or committee member of a
4-68 credit union that is organized and doing business in this state
4-69 under this Act or the Federal Credit Union Act and that has its
5-1 principal office in this state, and who have five years or more of
5-2 active experience as such a director, officer, or committee member.
5-3 No more than one person from a federal credit union may serve on
5-4 the commission at any time. Experience as a commissioner, deputy
5-5 commissioner, or examiner is equivalent to the type of experience
5-6 required by this subsection. If a person holding a position in
5-7 accordance with this subsection ceases to be engaged in the
5-8 exercise of the duties, responsibilities, rights, and powers
5-9 prescribed by this subsection for a period exceeding 90 days, the
5-10 person is ineligible to serve as a member and the person's position
5-11 on the commission is vacant.
5-12 (b) Five [Three] members of the commission are
5-13 representatives of the general public. A person is not eligible
5-14 for appointment as a public member of [An individual appointed to
5-15 serve in that capacity may not, at the time of the individual's
5-16 appointment to or while serving on] the commission if the person or
5-17 the person's spouse:
5-18 (1) is employed by or participates [be engaged] in the
5-19 management or direction of a financial institution or other
5-20 organization regulated by the department or receiving funds from
5-21 the department[, such as a credit union, bank, or savings and loan
5-22 association]; [or]
5-23 (2) has [have], other than as a member or customer, a
5-24 financial interest in a financial institution or other organization
5-25 regulated by the department or receiving funds from the department;
5-26 or
5-27 (3) uses or receives a substantial amount of tangible
5-28 goods, services, or funds from the department, other than
5-29 compensation or reimbursement authorized by law for commission
5-30 membership, attendance, or expenses[, such as a credit union, bank,
5-31 or savings and loan association].
5-32 (c) No two members of the commission may be residents of the
5-33 same state senatorial district.
5-34 (d) An officer, employee, or paid consultant of a Texas [A
5-35 person currently serving as chairman, first vice-chairman,
5-36 president, vice-president, secretary, or treasurer of a state]
5-37 trade association in the credit union industry[, or an employee of
5-38 such an organization,] may not serve as a member of the commission
5-39 and may not be an employee of the department who is exempt from the
5-40 state's position classification plan or is compensated at or above
5-41 the amount prescribed by the General Appropriations Act for step 1,
5-42 salary group 17, of the position classification salary schedule.
5-43 (e) A person who is the spouse of an officer, manager, or
5-44 paid consultant of a Texas trade association in the credit union
5-45 industry may not be a member of the commission and may not be an
5-46 employee of the department who is exempt from the state's position
5-47 classification plan or is compensated at or above the amount
5-48 prescribed by the General Appropriations Act for step 1, salary
5-49 group 17, of the position classification salary schedule.
5-50 (f) For the purposes of this section, a Texas trade
5-51 association is a nonprofit, cooperative, and voluntarily joined
5-52 association of business or professional competitors in this state
5-53 designed to assist its members and its industry or profession in
5-54 dealing with mutual business or professional problems and in
5-55 promoting their common interest.
5-56 (g) [(e)] A person may not serve as a member of the
5-57 commission or act as the general counsel to the commission or the
5-58 department if the person [who] is required to register as a
5-59 lobbyist under Chapter 305, Government Code, because of the
5-60 person's activities for compensation on behalf of a profession
5-61 related to the operation of [may not serve as a member of the
5-62 commission or act as the general counsel to] the commission.
5-63 SECTION 6. Subsection (a), Section 11.03, Texas Credit Union
5-64 Act (Article 2461-1.01 et seq., Vernon's Texas Civil Statutes), is
5-65 amended to read as follows:
5-66 (a) The members of the commission are appointed, without
5-67 regard to race, color, creed, disability, sex, religion, age, or
5-68 national origin, by the governor, with the advice and consent of
5-69 the senate, for terms of six years, with the terms of three members
6-1 expiring February 15 of each odd-numbered year. The governor shall
6-2 appoint the members who are representatives of the general public
6-3 on the basis of recognized business ability.
6-4 SECTION 7. Chapter 11, Texas Credit Union Act (Article
6-5 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended by
6-6 adding Section 11.031 to read as follows:
6-7 Sec. 11.031. TRAINING PROGRAM. (a) Before a member of the
6-8 commission may assume the member's duties and before the member may
6-9 be confirmed by the senate, the member must complete at least one
6-10 course of the training program established under this section.
6-11 (b) A training program established under this section shall
6-12 provide information to the member regarding:
6-13 (1) the enabling legislation that created the
6-14 department and its policy-making body to which the member is
6-15 appointed to serve;
6-16 (2) the programs operated by the department;
6-17 (3) the role and functions of the department;
6-18 (4) the rules of the commission with an emphasis on
6-19 the rules that relate to disciplinary and investigatory authority;
6-20 (5) the current budget for the department;
6-21 (6) the results of the most recent formal audit of the
6-22 department;
6-23 (7) the requirements of the:
6-24 (A) open meetings law, Chapter 551, Government
6-25 Code;
6-26 (B) open records law, Chapter 552, Government
6-27 Code; and
6-28 (C) administrative procedure law, Chapter 2001,
6-29 Government Code;
6-30 (8) the requirements of the conflict of interest laws
6-31 and other laws relating to public officials; and
6-32 (9) any applicable ethics policies adopted by the
6-33 department or the Texas Ethics Commission.
6-34 SECTION 8. Section 11.04, Texas Credit Union Act (Article
6-35 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended to
6-36 read as follows:
6-37 Sec. 11.04. VACANCIES; REMOVAL. (a) The office of a member
6-38 of the commission becomes vacant on January 1 if the member failed
6-39 to attend more than one-half of the meetings of the commission held
6-40 during the preceding calendar year, excluding any meetings held
6-41 before the member assumed office.
6-42 (b) The governor may remove a member from the member's
6-43 position on the commission for neglect of duty, incompetence, or
6-44 fraudulent or criminal conduct.
6-45 (c) It is grounds for removal from the commission if a
6-46 member:
6-47 (1) does not have at the time of appointment the
6-48 qualifications required by Section 11.02;
6-49 (2) does not maintain during service on the commission
6-50 the qualifications required by Section 11.02;
6-51 (3) violates a prohibition established by Section
6-52 11.02;
6-53 (4) cannot because of illness or disability discharge
6-54 the member's duties for a substantial part of the term for which
6-55 the member is appointed; or
6-56 (5) is absent from more than half of the regularly
6-57 scheduled commission meetings that the member is eligible to attend
6-58 during a calendar year unless the absence is excused by majority
6-59 vote of the commission.
6-60 (d) The validity of an action of the commission is not
6-61 affected by the fact that it is taken when a ground for removal of
6-62 a commission member exists.
6-63 (e) If the commissioner has knowledge that a potential
6-64 ground for removal exists, the commissioner shall notify the
6-65 presiding officer of the commission of the potential ground. The
6-66 presiding officer shall then notify the governor and the attorney
6-67 general that a potential ground for removal exists. If the
6-68 potential ground for removal involves the presiding officer, the
6-69 commissioner shall notify the next highest officer of the
7-1 commission, who shall notify the governor and the attorney general
7-2 that a potential ground for removal exists [violates a prohibition
7-3 established by Section 11.02(e) of this Act].
7-4 (f) [(d)] The office of a member of the commission is vacant
7-5 in the event of the death, resignation, or removal of the member,
7-6 or if the member ceases to have the qualifications necessary to
7-7 serve as a member.
7-8 (g) [(e)] In the event of a vacancy on the commission for
7-9 any cause, the governor, with the advice and consent of the senate,
7-10 shall promptly appoint a qualified person to fill the unexpired
7-11 term.
7-12 [(f) The validity of an action of the commission is not
7-13 affected by the fact that it was taken when a ground for removal of
7-14 a member of the commission existed.]
7-15 SECTION 9. Subsections (a), (c), and (e), Section 11.06,
7-16 Texas Credit Union Act (Article 2461-1.01 et seq., Vernon's Texas
7-17 Civil Statutes), are amended to read as follows:
7-18 (a) The commission shall hold regular meetings at least
7-19 twice each year. The chairman of the commission, the commissioner,
7-20 or any five members of the commission may call special meetings.
7-21 The commission shall adopt reasonable rules governing the time and
7-22 place of meetings and the conduct of all meetings, including the
7-23 form in which minutes of the meetings are maintained. The [All
7-24 meetings of the] commission is [are] subject to the Open Meetings
7-25 Law, Chapter 551, Government Code, and the administrative procedure
7-26 law, Chapter 2001, Government Code [271, Acts of the 60th
7-27 Legislature, 1967, as amended (Article 6252-17, Vernon's Texas
7-28 Civil Statutes)].
7-29 (c) The governor shall designate a member of the commission
7-30 as presiding officer of the commission to serve in that capacity at
7-31 the pleasure of the governor [commission shall annually elect a
7-32 chairman and vice-chairman from among its members. The chairman
7-33 shall preside at all meetings of the commission, and the
7-34 vice-chairman shall preside in the absence of the chairman. If
7-35 both the chairman and vice-chairman are absent from a meeting, the
7-36 most senior member of the commission in attendance at the meeting
7-37 shall serve as acting chairman].
7-38 (e) No commission member may act on matters under
7-39 consideration which directly affect [and specifically relate to]
7-40 any credit union of which the member of the commission is an
7-41 officer, director, or member. The commission shall adopt rules
7-42 relating to recusal of members, requiring that a member who has a
7-43 personal or private interest in a measure, proposal, or decision
7-44 pending before the commission shall publicly disclose the fact to
7-45 the commission at a meeting held in compliance with Chapter 551,
7-46 Government Code. The member may not vote or otherwise participate
7-47 in the decision. The disclosure shall be entered into the minutes
7-48 of the meeting.
7-49 SECTION 10. Chapter 11, Texas Credit Union Act (Article
7-50 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended by
7-51 adding Section 11.061 to read as follows:
7-52 Sec. 11.061. RECEIPT OF PUBLIC COMMENTS; NOTICE OF
7-53 COMMISSION ACTIVITIES. (a) The commission shall develop and
7-54 implement policies that provide the public with a reasonable
7-55 opportunity to appear before the commission and to speak on any
7-56 issue under the jurisdiction of the department.
7-57 (b) The commission shall adopt rules providing for public
7-58 notice of department activities.
7-59 SECTION 11. Section 11.07, Texas Credit Union Act (Article
7-60 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended by
7-61 adding Subsections (d) and (e) to read as follows:
7-62 (d) The commission may not adopt rules restricting
7-63 competitive bidding or advertising by a credit union except to
7-64 prohibit false, misleading, or deceptive practices.
7-65 (e) In its rules to prohibit false, misleading, or deceptive
7-66 practices, the commission may not include a rule that:
7-67 (1) restricts the use of any medium for advertising;
7-68 (2) relates to the size or duration of an
7-69 advertisement by the credit union; or
8-1 (3) restricts the credit union's advertisement under a
8-2 trade name.
8-3 SECTION 12. Chapter 11, Texas Credit Union Act (Article
8-4 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended by
8-5 adding Section 11.071 to read as follows:
8-6 Sec. 11.071. SEPARATION OF RESPONSIBILITIES. The commission
8-7 shall develop and implement policies that clearly separate the
8-8 policy-making responsibilities of the commission and the management
8-9 responsibilities of the commissioner and the staff of the
8-10 department.
8-11 SECTION 13. Section 11.10, Texas Credit Union Act (Article
8-12 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended to
8-13 read as follows:
8-14 Sec. 11.10. POWERS OF CREDIT UNION COMMISSIONER. (a) On
8-15 the appointment and qualification of a commissioner, the
8-16 commissioner shall supervise and regulate all credit unions doing
8-17 business in this state, except federal credit unions organized and
8-18 existing under federal law, in accordance with this Act and the
8-19 rules and regulations promulgated under this Act.
8-20 (b) The commissioner shall enforce the provisions of this
8-21 Act and the rules and regulations promulgated from time to time.
8-22 (c) The commissioner shall levy and collect all supervision
8-23 fees, charges, and revenues required to be paid by credit unions as
8-24 provided by Subsection (c), Section 11.07, of this Act. All money
8-25 paid to the department [collected] under this Act is subject to
8-26 Subchapter F, Chapter 404, Government Code [shall be deposited in
8-27 the credit union department expense fund, which is created as a
8-28 special fund in the state treasury. Money in the fund may be used
8-29 only for the administration of this Act. Income earned on the
8-30 money deposited in the credit union department expense fund shall
8-31 be credited to that fund].
8-32 (d) The commissioner or the commissioner's designee shall
8-33 provide to members of the commission and to department employees,
8-34 as often as necessary, information regarding their qualification
8-35 for office or employment under this Act and their responsibilities
8-36 under applicable laws relating to standards of conduct for state
8-37 officers or employees.
8-38 (e) The commission shall promulgate, and the commissioner
8-39 shall enforce, reasonable rules requiring credit unions to provide
8-40 or cause to be provided share and deposit insurance protection for
8-41 their members and depositors, including the authorization and
8-42 establishment of a share and deposit guaranty corporation or credit
8-43 union under the exclusive regulation of the department to enable
8-44 the department to carry out the purposes of this Act. Share and
8-45 deposit insurance protection may also be provided through other
8-46 sources approved by the department, including such a program of the
8-47 National Credit Union Administration.
8-48 (f) The commissioner shall supervise the establishment and
8-49 maintenance of files regarding each written complaint filed with
8-50 [complaints about credit unions received by] the department that
8-51 the department has authority to resolve. The files must include
8-52 all relevant information regarding the nature, status, and
8-53 disposition of the complaints. The department [commissioner] shall
8-54 provide to the person filing the complaint and the persons or
8-55 entities complained about the department's policies and procedures
8-56 pertaining to complaint investigation and resolution. The
8-57 department, at least [take the steps that the commissioner
8-58 determines to be necessary to notify each complainant of the
8-59 procedures and remedies available for the resolution of complaints.
8-60 After a written complaint is filed, the commissioner, at least as
8-61 frequently as] quarterly and until final disposition of the
8-62 complaint, shall notify the parties to the complaint of the status
8-63 of the complaint unless the notice would jeopardize an undercover
8-64 investigation.
8-65 (g) The department shall keep information about each
8-66 complaint filed with the department. The information shall
8-67 include:
8-68 (1) the date the complaint is received;
8-69 (2) the name of the complainant;
9-1 (3) the subject matter of the complaint;
9-2 (4) a record of all persons contacted in relation to
9-3 the complaint;
9-4 (5) a summary of the results of the review or
9-5 investigation of the complaint; and
9-6 (6) for complaints for which the department took no
9-7 action, an explanation of the reason the complaint was closed
9-8 without action.
9-9 (h) The commissioner shall supervise the preparation of
9-10 public interest information describing [regarding] the [regulatory]
9-11 functions of the department, procedures for filing and resolution
9-12 of complaints, and other matters of general interest regarding
9-13 [the] credit unions. The commissioner [union movement and] shall
9-14 make the [supervise the dissemination of that] information
9-15 available to the general public and appropriate state agencies.
9-16 (i) The commission by rule shall establish methods by which
9-17 consumers and service recipients are notified of the name, mailing
9-18 address, and telephone number of the department for the purpose of
9-19 directing complaints to the department. The commission may provide
9-20 for that notification:
9-21 (1) on each registration form, application, or written
9-22 contract for services of a credit union regulated under this Act;
9-23 (2) on a sign prominently displayed in the place of
9-24 business of each credit union regulated under this Act; or
9-25 (3) in a bill for service provided by a credit union
9-26 regulated under this Act.
9-27 (j) The department shall comply with federal and state laws
9-28 related to program and facility accessibility. The commissioner
9-29 shall also prepare and maintain a written plan that describes how a
9-30 person who does not speak English can be provided reasonable access
9-31 to the department's programs and services.
9-32 SECTION 14. Section 11.18, Texas Credit Union Act (Article
9-33 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended to
9-34 read as follows:
9-35 Sec. 11.18. CAREER PROGRAM; PERFORMANCE EVALUATION.
9-36 (a) The commissioner or the commissioner's [his] designee shall
9-37 develop an intra-agency career ladder program that addresses
9-38 opportunities for mobility and advancement for employees within the
9-39 department. The program shall require[, one part of which shall be
9-40 an] intra-agency posting of all nonentry level positions
9-41 concurrently with [for at least 10 days before] any public posting.
9-42 (b) The commissioner or the commissioner's [his] designee
9-43 shall develop a system of annual performance evaluations that are
9-44 based on documented employee performance [measurable job tasks].
9-45 All merit pay for department employees must be based on the system
9-46 established under this section.
9-47 SECTION 15. Chapter 11, Texas Credit Union Act (Article
9-48 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended by
9-49 adding Section 11.19 to read as follows:
9-50 Sec. 11.19. EQUAL EMPLOYMENT OPPORTUNITY POLICY. (a) The
9-51 commissioner or the commissioner's designee shall prepare and
9-52 maintain a written policy statement to assure implementation of a
9-53 program of equal employment opportunity under which all personnel
9-54 transactions are made without regard to race, color, disability,
9-55 sex, religion, age, or national origin. The policy statement must
9-56 include:
9-57 (1) personnel policies, including policies relating to
9-58 recruitment, evaluation, selection, appointment, training, and
9-59 promotion of personnel that are in compliance with requirements of
9-60 Chapter 21, Labor Code;
9-61 (2) a comprehensive analysis of the department
9-62 workforce that meets federal and state guidelines;
9-63 (3) procedures by which a determination can be made
9-64 about the extent of underuse in the department workforce of all
9-65 persons for whom federal or state guidelines encourage a more
9-66 equitable balance; and
9-67 (4) reasonable methods to appropriately address those
9-68 areas of underuse.
9-69 (b) A policy statement prepared under Subsection (a) must
10-1 cover an annual period, be updated annually and reviewed by the
10-2 Texas Commission on Human Rights for compliance with Subsection
10-3 (a)(1), and be filed with the governor's office.
10-4 (c) The governor's office shall deliver a biennial report to
10-5 the legislature based on the information received under Subsection
10-6 (b). The report may be made separately or as a part of other
10-7 biennial reports made to the legislature.
10-8 SECTION 16. Section 12.01, Texas Credit Union Act (Article
10-9 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended to
10-10 read as follows:
10-11 Sec. 12.01. HEARINGS. (a) The conduct of all hearings held
10-12 under this Act and the judicial review of the final decisions
10-13 following those hearings are governed by the administrative
10-14 procedure law, Chapter 2001, Government Code [the Administrative
10-15 Procedure and Texas Register Act, as amended (Article 6252-13a,
10-16 Vernon's Texas Civil Statutes)]. The commission may adopt rules
10-17 of procedure consistent with that chapter [the Administrative
10-18 Procedure and Texas Register Act, as amended,] for the fair hearing
10-19 and adjudication of all issues in a hearing held under this Act.
10-20 This section does not apply to a hearing under Section 12.03 of
10-21 this Act.
10-22 (b) If the commission proposes to suspend or revoke a credit
10-23 union's certificate of incorporation, the credit union is entitled
10-24 to a hearing conducted by the State Office of Administrative
10-25 Hearings. Proceedings for a disciplinary action are governed by
10-26 the administrative procedure law, Chapter 2001, Government Code.
10-27 Rules of practice adopted by the commission under Section 2001.004,
10-28 Government Code, applicable to the proceedings for a disciplinary
10-29 action may not conflict with rules adopted by the State Office of
10-30 Administrative Hearings.
10-31 SECTION 17. Chapter 12, Texas Credit Union Act (Article
10-32 2461-1.01 et seq., Vernon's Texas Civil Statutes), is amended by
10-33 adding Section 12.03 to read as follows:
10-34 Sec. 12.03. PROCEDURE FOR CERTAIN APPROVALS. (a) This
10-35 section applies to a request for approval by the commissioner of:
10-36 (1) an application for incorporation under Section
10-37 2.03 of this Act;
10-38 (2) a request for approval of an amendment to a credit
10-39 union's articles of incorporation under Section 2.06 of this Act,
10-40 including an amendment to expand the credit union's field of
10-41 membership; and
10-42 (3) a merger or consolidation under Section 10.03 of
10-43 this Act.
10-44 (b) Before approving a request to which this section
10-45 applies, the commissioner shall submit notice of the request to the
10-46 secretary of state for publication in the Texas Register. The
10-47 commission by rule shall provide for other appropriate public
10-48 notice of the request. The commissioner may waive the requirements
10-49 of this subsection or permit delayed public notice on a
10-50 determination that waiver or delay is in the public interest. If
10-51 the requirements of this subsection are waived, the information
10-52 that would be contained in a public notice becomes public
10-53 information under Chapter 552, Government Code, on the 35th day
10-54 after the date the request is made.
10-55 (c) Before making a determination on a request to which this
10-56 section applies, the commissioner must accept comment from any
10-57 person who wishes to comment. This comment may be in the form of
10-58 written testimony or may be provided at a commissioner hearing held
10-59 for the purpose of receiving this comment. This hearing shall be
10-60 held if requested by any person. The commissioner may hold the
10-61 hearing regardless of whether a person requests the hearing. The
10-62 hearing is confidential. Chapter 2001, Government Code, does not
10-63 apply to the hearing. Not later than the 60th day after the date
10-64 the notice is published in the Texas Register, or if the notice is
10-65 not published, after the date the request is received, the
10-66 commissioner shall approve or disapprove the application.
10-67 SECTION 18. The Sunset Advisory Commission, as part of its
10-68 evaluation of agencies preceding the meeting of the 77th
10-69 Legislature in 2001, shall:
11-1 (1) evaluate the organizational structure of the
11-2 state's financial regulatory agencies; and
11-3 (2) study the potential effects of placing the Credit
11-4 Union Commission under the jurisdiction of the Finance Commission
11-5 of Texas.
11-6 SECTION 19. (a) The Credit Union Commission and the Finance
11-7 Commission of Texas shall jointly review state law, including
11-8 rules, governing financial institutions in this state. The review
11-9 must include an examination of differences in the authority granted
11-10 by law to the different state regulatory officers and agencies and
11-11 how the officers and agencies differ in their manner of regulating
11-12 the institutions under their respective jurisdictions.
11-13 (b) A report of the review shall be submitted to the Sunset
11-14 Advisory Commission before September 1, 1999.
11-15 SECTION 20. If after the effective date of this Act a
11-16 vacancy exists in a position of member of the Credit Union
11-17 Commission that was held by an individual described by Subsection
11-18 (a), Section 11.02, Texas Credit Union Act (Article 2461-1.01 et
11-19 seq., Vernon's Texas Civil Statutes), the vacancy shall be filled
11-20 by appointment of an individual described by Subsection (b) of
11-21 Section 11.02 of that Act until the number of public members and
11-22 members who represent credit unions are as prescribed by those
11-23 sections, as amended by this Act.
11-24 SECTION 21. This Act takes effect September 1, 1997.
11-25 SECTION 22. The importance of this legislation and the
11-26 crowded condition of the calendars in both houses create an
11-27 emergency and an imperative public necessity that the
11-28 constitutional rule requiring bills to be read on three several
11-29 days in each house be suspended, and this rule is hereby suspended.
11-30 * * * * *