By: Harris S.B. No. 891
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the regulation of credit unions.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 15.308, Finance Code, is amended to read
1-4 as follows:
1-5 Sec. 15.308. COMPENSATION OF EMPLOYEES. (a) The commission
1-6 shall set the compensation of the commissioner and[, the] deputy
1-7 commissioner[, each examiner, and each officer of the commission
1-8 and department, except a commission member, is entitled to
1-9 compensation set by the commission]. The compensation shall be
1-10 paid according to the General Appropriations Act [from money
1-11 available to the department].
1-12 (b) Except for the commissioner and deputy commissioner,
1-13 Chapter 654, Government Code, applies to any [a] department
1-14 position [only if the position is classified in salary groups 1-21
1-15 under the position classification plan in effect on January 1,
1-16 1991, or a comparable position under a successor plan. Chapter 654
1-17 does not apply to the position of examiner].
1-18 [(c) The legislature in the General Appropriations Act may
1-19 determine the total amount appropriated to the department. The
1-20 commission, subject to the limits provided by this subchapter,
1-21 shall determine the salaries of department employees in exempt and
1-22 examiner positions.]
1-23 [(d) The department may use money appropriated to it for any
1-24 purpose to pay the salaries determined by the commission.]
2-1 [(e) An employee of the commission may not receive
2-2 compensation that exceeds the compensation received by the
2-3 governor.]
2-4 SECTION 2. Subsection (c), Section 15.402, Finance Code, is
2-5 amended to read as follows:
2-6 (c) The commission by rule shall set reasonable
2-7 [supervision] fees, charges, and revenues required to be paid by a
2-8 credit union.
2-9 SECTION 3. Section 15.408, Finance Code, is amended to read
2-10 as follows:
2-11 Sec. 15.408. COLLECTION OF MONEY. The commissioner shall
2-12 collect all [supervision] fees, charges, and revenues required to
2-13 be paid by a credit union under Section 15.402(c). All money paid
2-14 to the department under this chapter and Subtitle D, Title 3, is
2-15 subject to Subchapter F, Chapter 404, Government Code.
2-16 SECTION 4. Subchapter E, Chapter 15, Finance Code, is
2-17 amended by adding Sections 15.411 and 15.412 to read as follows:
2-18 Sec. 15.411. AGREEMENTS WITH OTHER REGULATORS. (a) The
2-19 commissioner may enter into an agreement with any credit union
2-20 supervisory agency regarding the examination or supervision of
2-21 branch offices of credit unions chartered in this state doing
2-22 business in other states and foreign credit unions doing business
2-23 in this state. In lieu of conducting an examination or
2-24 investigation required by this subtitle, the commissioner may
2-25 accept examinations or reports from other credit union supervisory
2-26 agencies. The acceptance of the examination or report does not
3-1 waive any fee, charge, or revenue required to be paid by a credit
3-2 union, including a foreign credit union doing business in this
3-3 state.
3-4 (b) The commissioner may enter into any cooperative
3-5 arrangement with other credit union supervisory agencies to promote
3-6 the effective regulation of state credit unions doing business
3-7 across state lines, including contracting to use another agency's
3-8 examiners, allowing for the use of examiners of this state by
3-9 another agency, or collecting fees on behalf of or receiving
3-10 payments through another agency.
3-11 Sec. 15.412. FILING GROUP RETURN WITH THE INTERNAL REVENUE
3-12 SERVICE. (a) The commissioner may file a consolidated group
3-13 return form with the Internal Revenue Service on behalf of all
3-14 credit unions under the department's jurisdiction. To be included,
3-15 each credit union must annually authorize the department in writing
3-16 to include the credit union in the group return and must declare
3-17 that the authorization and the financial information submitted for
3-18 the purpose of compiling the group return are true and complete.
3-19 (b) The state is not liable for information contained in any
3-20 form submitted. Each credit union is individually responsible for
3-21 the accuracy, completeness, and timeliness of the information and
3-22 for any potential tax liability or penalties that may accrue.
3-23 SECTION 5. Section 121.002, Finance Code, is amended by
3-24 amending Subdivision (2) and adding Subdivision (8) to read as
3-25 follows:
3-26 (2) "Credit union," unless the context relates to a
4-1 federal credit union, means a voluntary, cooperative, nonprofit
4-2 financial institution authorized to do business in this state under
4-3 this subtitle for purposes of:
4-4 (A) encouraging thrift among its members;
4-5 (B) creating a source of credit at fair and
4-6 reasonable interest rates;
4-7 (C) developing and providing to its members
4-8 alternative methods of financing their purchases at reasonable
4-9 costs;
4-10 (D) providing an opportunity for its members to
4-11 use and control their money to improve their economic and social
4-12 condition; and
4-13 (E) [(D)] conducting any other business,
4-14 engaging in any other activity, or providing any other service that
4-15 may benefit its members.
4-16 (8) "Law enforcement agency" means the Department of
4-17 Public Safety of the State of Texas, the Federal Bureau of
4-18 Investigation, or any local police or sheriff department.
4-19 SECTION 6. Subsection (c), Section 122.003, Finance Code, is
4-20 amended to read as follows:
4-21 (c) A person who is not a credit union authorized to do
4-22 business in this state under this subtitle or the Federal Credit
4-23 Union Act (12 U.S.C. Section 1751 et seq.), or an organization,
4-24 corporation, or association the membership or ownership of which is
4-25 primarily confined to credit unions or credit union organizations,
4-26 may not do business under or[:]
5-1 [(1)] use a name or title containing the words "credit
5-2 union" or any derivation of that term[;]
5-3 [(2) represent itself as a credit union;]
5-4 [(3) conduct business as a credit union; or]
5-5 [(4) do business under a name or title] that:
5-6 (1) [(A)] indicates or reasonably implies that the
5-7 person carries on or transacts the kind of business carried on or
5-8 transacted by a credit union; or
5-9 (2) [(B)] is calculated to lead a person to believe
5-10 that the business being conducted is the type of business carried
5-11 on or transacted by a credit union.
5-12 SECTION 7. Section 122.012, Finance Code, is amended by
5-13 amending Subsection (b) and adding Subsection (c) to read as
5-14 follows:
5-15 (b) After notifying the commissioner in writing, a credit
5-16 union may establish and maintain, at locations other than its
5-17 principal place of business, additional offices or service
5-18 facilities that are reasonably necessary to provide services to the
5-19 credit union's members. The credit union shall notify the
5-20 commissioner in writing of the date that the new office or service
5-21 facility begins operating.
5-22 (c) The commission by rule may prescribe what constitutes an
5-23 office or service facility.
5-24 SECTION 8. Section 122.013, Finance Code, is amended by
5-25 adding Subsection (d) to read as follows:
5-26 (d) The commission may require a foreign credit union
6-1 operating in this state to submit periodic reports. The required
6-2 reports shall be provided by the foreign credit union or by the
6-3 credit union supervisory agency having primary responsibility for
6-4 that credit union. Any reporting requirements prescribed by the
6-5 commission under this subsection must be consistent with the
6-6 reporting requirements applicable to credit unions and appropriate
6-7 for the purpose of enabling the commissioner to regulate credit
6-8 unions.
6-9 SECTION 9. Section 122.101, Finance Code, is amended to read
6-10 as follows:
6-11 Sec. 122.101. CALL [ANNUAL] REPORTS. (a) A [Not later than
6-12 February 1 each year, a] credit union shall submit [report] to the
6-13 department on a semiannual basis a call report, on a form supplied
6-14 by the department, [for] that states the credit union's financial
6-15 condition [purpose]. The commissioner may require a credit union
6-16 to file additional call reports.
6-17 (b) The credit union must submit the call report on or
6-18 before the date stated on the form supplied by the department. [On
6-19 filing the report, a credit union shall pay to the commissioner any
6-20 required filing fee. The commission may set a reasonable fee for
6-21 processing a report.]
6-22 [(c)] If a credit union does not submit [file] a report by
6-23 the [or pay the filing fee before the 16th day after the day it is]
6-24 due date, the commissioner shall charge a late fee in an amount set
6-25 by the commission for each day the report remains unfiled [or fee
6-26 remains unpaid]. The commissioner for good cause shown may waive
7-1 all or part of the late fee.
7-2 (c) [(d)] A credit union that does not file a report on or
7-3 before [the 31st day after] the date it is due is subject to
7-4 sanctions provided by this chapter and Chapter 126.
7-5 SECTION 10. Subsection (b), Section 122.261, Finance Code,
7-6 is amended to read as follows:
7-7 (b) The commissioner may disclose the information described
7-8 by Subsection (a) to a share and deposit guaranty corporation or
7-9 credit union or to a department, agency, or instrumentality of this
7-10 state, another state, or the United States if the commissioner
7-11 determines the disclosure is necessary or proper for the
7-12 enforcement of the laws of this state or the United States.
7-13 SECTION 11. Section 123.107, Finance Code, is amended to
7-14 read as follows:
7-15 Sec. 123.107. INSURANCE FOR MEMBERS. A credit union may
7-16 purchase or otherwise provide insurance for the benefit or
7-17 convenience of its members in accordance with applicable law or
7-18 rules adopted by the commission.
7-19 SECTION 12. Subsection (a), Section 123.201, Finance Code,
7-20 is amended to read as follows:
7-21 (a) A credit union may:
7-22 (1) lend its funds, or engage in any other type of
7-23 financing transaction authorized by applicable law or rules adopted
7-24 by the commission [in accordance with applicable law]; and
7-25 (2) borrow money from any source, subject to
7-26 Subsection (b).
8-1 SECTION 13. Section 126.002, Finance Code, is amended by
8-2 amending Subsections (a) and (c) and adding Subsection (d) to read
8-3 as follows:
8-4 (a) Except as provided by Subsections (b) and (c),
8-5 information obtained directly or indirectly by the department that
8-6 relates to the financial condition or business affairs of a credit
8-7 union and the files and records of the department relating to that
8-8 information, except a statement intended for publication, are
8-9 confidential.
8-10 (c) The commissioner may disclose the information described
8-11 by Subsection (a) to a law enforcement agency [the Texas Share
8-12 Guaranty Credit Union] or another department, agency, or
8-13 instrumentality of this state, another state, or the United States
8-14 if the commissioner determines that disclosure is necessary or
8-15 proper to enforce the laws of this state applicable to credit
8-16 unions.
8-17 (d) Information obtained by the department from a federal or
8-18 state supervisory agency that is confidential under federal law or
8-19 the laws of that state may not be disclosed except as provided by
8-20 the applicable federal or state law.
8-21 SECTION 14. Section 126.054, Finance Code, is amended by
8-22 adding Subsection (c) to read as follows:
8-23 (c) The report of examination is confidential. The
8-24 commissioner may provide a copy of the report to other parties as
8-25 described in Section 126.002(c).
8-26 SECTION 15. Section 126.055, Finance Code, is amended to
9-1 read as follows:
9-2 Sec. 126.055. FEE. The commission may establish and a [A]
9-3 credit union shall pay a [an examination] fee [established by the
9-4 commission and] based on the cost of performing an [the]
9-5 examination of the credit union.
9-6 SECTION 16. (a) This Act takes effect September 1, 1999.
9-7 (b) In accordance with Subsection (c), Section 311.031,
9-8 Government Code, which gives effect to a substantive amendment
9-9 enacted by the same legislature that codifies the amended statute,
9-10 the text of Section 15.408, Finance Code, as set out in Section 3
9-11 of this Act, gives effect to changes made by Chapter 338, Acts of
9-12 the 75th Legislature, Regular Session, 1997.
9-13 (c) To the extent of any conflict, this Act prevails over
9-14 another Act of the 76th Legislature, Regular Session, 1999,
9-15 relating to nonsubstantive additions and corrections in enacted
9-16 codes.
9-17 SECTION 17. The importance of this legislation and the
9-18 crowded condition of the calendars in both houses create an
9-19 emergency and an imperative public necessity that the
9-20 constitutional rule requiring bills to be read on three several
9-21 days in each house be suspended, and this rule is hereby suspended.