1-1 By: Harris S.B. No. 891
1-2 (In the Senate - Filed March 4, 1999; March 8, 1999, read
1-3 first time and referred to Committee on Economic Development;
1-4 April 15, 1999, reported favorably by the following vote: Yeas 6,
1-5 Nays 0; April 15, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the regulation of credit unions.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Section 15.308, Finance Code, is amended to read
1-11 as follows:
1-12 Sec. 15.308. COMPENSATION OF EMPLOYEES. (a) The commission
1-13 shall set the compensation of the commissioner and[, the] deputy
1-14 commissioner[, each examiner, and each officer of the commission
1-15 and department, except a commission member, is entitled to
1-16 compensation set by the commission]. The compensation shall be
1-17 paid according to the General Appropriations Act [from money
1-18 available to the department].
1-19 (b) Except for the commissioner and deputy commissioner,
1-20 Chapter 654, Government Code, applies to any [a] department
1-21 position [only if the position is classified in salary groups 1-21
1-22 under the position classification plan in effect on January 1,
1-23 1991, or a comparable position under a successor plan. Chapter 654
1-24 does not apply to the position of examiner].
1-25 [(c) The legislature in the General Appropriations Act may
1-26 determine the total amount appropriated to the department. The
1-27 commission, subject to the limits provided by this subchapter,
1-28 shall determine the salaries of department employees in exempt and
1-29 examiner positions.]
1-30 [(d) The department may use money appropriated to it for any
1-31 purpose to pay the salaries determined by the commission.]
1-32 [(e) An employee of the commission may not receive
1-33 compensation that exceeds the compensation received by the
1-34 governor.]
1-35 SECTION 2. Subsection (c), Section 15.402, Finance Code, is
1-36 amended to read as follows:
1-37 (c) The commission by rule shall set reasonable
1-38 [supervision] fees, charges, and revenues required to be paid by a
1-39 credit union.
1-40 SECTION 3. Section 15.408, Finance Code, is amended to read
1-41 as follows:
1-42 Sec. 15.408. COLLECTION OF MONEY. The commissioner shall
1-43 collect all [supervision] fees, charges, and revenues required to
1-44 be paid by a credit union under Section 15.402(c). All money paid
1-45 to the department under this chapter and Subtitle D, Title 3, is
1-46 subject to Subchapter F, Chapter 404, Government Code.
1-47 SECTION 4. Subchapter E, Chapter 15, Finance Code, is
1-48 amended by adding Sections 15.411 and 15.412 to read as follows:
1-49 Sec. 15.411. AGREEMENTS WITH OTHER REGULATORS. (a) The
1-50 commissioner may enter into an agreement with any credit union
1-51 supervisory agency regarding the examination or supervision of
1-52 branch offices of credit unions chartered in this state doing
1-53 business in other states and foreign credit unions doing business
1-54 in this state. In lieu of conducting an examination or
1-55 investigation required by this subtitle, the commissioner may
1-56 accept examinations or reports from other credit union supervisory
1-57 agencies. The acceptance of the examination or report does not
1-58 waive any fee, charge, or revenue required to be paid by a credit
1-59 union, including a foreign credit union doing business in this
1-60 state.
1-61 (b) The commissioner may enter into any cooperative
1-62 arrangement with other credit union supervisory agencies to promote
1-63 the effective regulation of state credit unions doing business
1-64 across state lines, including contracting to use another agency's
2-1 examiners, allowing for the use of examiners of this state by
2-2 another agency, or collecting fees on behalf of or receiving
2-3 payments through another agency.
2-4 Sec. 15.412. FILING GROUP RETURN WITH THE INTERNAL REVENUE
2-5 SERVICE. (a) The commissioner may file a consolidated group
2-6 return form with the Internal Revenue Service on behalf of all
2-7 credit unions under the department's jurisdiction. To be included,
2-8 each credit union must annually authorize the department in writing
2-9 to include the credit union in the group return and must declare
2-10 that the authorization and the financial information submitted for
2-11 the purpose of compiling the group return are true and complete.
2-12 (b) The state is not liable for information contained in any
2-13 form submitted. Each credit union is individually responsible for
2-14 the accuracy, completeness, and timeliness of the information and
2-15 for any potential tax liability or penalties that may accrue.
2-16 SECTION 5. Section 121.002, Finance Code, is amended by
2-17 amending Subdivision (2) and adding Subdivision (8) to read as
2-18 follows:
2-19 (2) "Credit union," unless the context relates to a
2-20 federal credit union, means a voluntary, cooperative, nonprofit
2-21 financial institution authorized to do business in this state under
2-22 this subtitle for purposes of:
2-23 (A) encouraging thrift among its members;
2-24 (B) creating a source of credit at fair and
2-25 reasonable interest rates;
2-26 (C) developing and providing to its members
2-27 alternative methods of financing their purchases at reasonable
2-28 costs;
2-29 (D) providing an opportunity for its members to
2-30 use and control their money to improve their economic and social
2-31 condition; and
2-32 (E) [(D)] conducting any other business,
2-33 engaging in any other activity, or providing any other service that
2-34 may benefit its members.
2-35 (8) "Law enforcement agency" means the Department of
2-36 Public Safety of the State of Texas, the Federal Bureau of
2-37 Investigation, or any local police or sheriff department.
2-38 SECTION 6. Subsection (c), Section 122.003, Finance Code, is
2-39 amended to read as follows:
2-40 (c) A person who is not a credit union authorized to do
2-41 business in this state under this subtitle or the Federal Credit
2-42 Union Act (12 U.S.C. Section 1751 et seq.), or an organization,
2-43 corporation, or association the membership or ownership of which is
2-44 primarily confined to credit unions or credit union organizations,
2-45 may not do business under or[:]
2-46 [(1)] use a name or title containing the words "credit
2-47 union" or any derivation of that term[;]
2-48 [(2) represent itself as a credit union;]
2-49 [(3) conduct business as a credit union; or]
2-50 [(4) do business under a name or title] that:
2-51 (1) [(A)] indicates or reasonably implies that the
2-52 person carries on or transacts the kind of business carried on or
2-53 transacted by a credit union; or
2-54 (2) [(B)] is calculated to lead a person to believe
2-55 that the business being conducted is the type of business carried
2-56 on or transacted by a credit union.
2-57 SECTION 7. Section 122.012, Finance Code, is amended by
2-58 amending Subsection (b) and adding Subsection (c) to read as
2-59 follows:
2-60 (b) After notifying the commissioner in writing, a credit
2-61 union may establish and maintain, at locations other than its
2-62 principal place of business, additional offices or service
2-63 facilities that are reasonably necessary to provide services to the
2-64 credit union's members. The credit union shall notify the
2-65 commissioner in writing of the date that the new office or service
2-66 facility begins operating.
2-67 (c) The commission by rule may prescribe what constitutes an
2-68 office or service facility.
2-69 SECTION 8. Section 122.013, Finance Code, is amended by
3-1 adding Subsection (d) to read as follows:
3-2 (d) The commission may require a foreign credit union
3-3 operating in this state to submit periodic reports. The required
3-4 reports shall be provided by the foreign credit union or by the
3-5 credit union supervisory agency having primary responsibility for
3-6 that credit union. Any reporting requirements prescribed by the
3-7 commission under this subsection must be consistent with the
3-8 reporting requirements applicable to credit unions and appropriate
3-9 for the purpose of enabling the commissioner to regulate credit
3-10 unions.
3-11 SECTION 9. Section 122.101, Finance Code, is amended to read
3-12 as follows:
3-13 Sec. 122.101. CALL [ANNUAL] REPORTS. (a) A [Not later than
3-14 February 1 each year, a] credit union shall submit [report] to the
3-15 department on a semiannual basis a call report, on a form supplied
3-16 by the department, [for] that states the credit union's financial
3-17 condition [purpose]. The commissioner may require a credit union
3-18 to file additional call reports.
3-19 (b) The credit union must submit the call report on or
3-20 before the date stated on the form supplied by the department. [On
3-21 filing the report, a credit union shall pay to the commissioner any
3-22 required filing fee. The commission may set a reasonable fee for
3-23 processing a report.]
3-24 [(c)] If a credit union does not submit [file] a report by
3-25 the [or pay the filing fee before the 16th day after the day it is]
3-26 due date, the commissioner shall charge a late fee in an amount set
3-27 by the commission for each day the report remains unfiled [or fee
3-28 remains unpaid]. The commissioner for good cause shown may waive
3-29 all or part of the late fee.
3-30 (c) [(d)] A credit union that does not file a report on or
3-31 before [the 31st day after] the date it is due is subject to
3-32 sanctions provided by this chapter and Chapter 126.
3-33 SECTION 10. Subsection (b), Section 122.261, Finance Code,
3-34 is amended to read as follows:
3-35 (b) The commissioner may disclose the information described
3-36 by Subsection (a) to a share and deposit guaranty corporation or
3-37 credit union or to a department, agency, or instrumentality of this
3-38 state, another state, or the United States if the commissioner
3-39 determines the disclosure is necessary or proper for the
3-40 enforcement of the laws of this state or the United States.
3-41 SECTION 11. Section 123.107, Finance Code, is amended to
3-42 read as follows:
3-43 Sec. 123.107. INSURANCE FOR MEMBERS. A credit union may
3-44 purchase or otherwise provide insurance for the benefit or
3-45 convenience of its members in accordance with applicable law or
3-46 rules adopted by the commission.
3-47 SECTION 12. Subsection (a), Section 123.201, Finance Code,
3-48 is amended to read as follows:
3-49 (a) A credit union may:
3-50 (1) lend its funds, or engage in any other type of
3-51 financing transaction authorized by applicable law or rules adopted
3-52 by the commission [in accordance with applicable law]; and
3-53 (2) borrow money from any source, subject to
3-54 Subsection (b).
3-55 SECTION 13. Section 126.002, Finance Code, is amended by
3-56 amending Subsections (a) and (c) and adding Subsection (d) to read
3-57 as follows:
3-58 (a) Except as provided by Subsections (b) and (c),
3-59 information obtained directly or indirectly by the department that
3-60 relates to the financial condition or business affairs of a credit
3-61 union and the files and records of the department relating to that
3-62 information, except a statement intended for publication, are
3-63 confidential.
3-64 (c) The commissioner may disclose the information described
3-65 by Subsection (a) to a law enforcement agency [the Texas Share
3-66 Guaranty Credit Union] or another department, agency, or
3-67 instrumentality of this state, another state, or the United States
3-68 if the commissioner determines that disclosure is necessary or
3-69 proper to enforce the laws of this state applicable to credit
4-1 unions.
4-2 (d) Information obtained by the department from a federal or
4-3 state supervisory agency that is confidential under federal law or
4-4 the laws of that state may not be disclosed except as provided by
4-5 the applicable federal or state law.
4-6 SECTION 14. Section 126.054, Finance Code, is amended by
4-7 adding Subsection (c) to read as follows:
4-8 (c) The report of examination is confidential. The
4-9 commissioner may provide a copy of the report to other parties as
4-10 described in Section 126.002(c).
4-11 SECTION 15. Section 126.055, Finance Code, is amended to
4-12 read as follows:
4-13 Sec. 126.055. FEE. The commission may establish and a [A]
4-14 credit union shall pay a [an examination] fee [established by the
4-15 commission and] based on the cost of performing an [the]
4-16 examination of the credit union.
4-17 SECTION 16. (a) This Act takes effect September 1, 1999.
4-18 (b) In accordance with Subsection (c), Section 311.031,
4-19 Government Code, which gives effect to a substantive amendment
4-20 enacted by the same legislature that codifies the amended statute,
4-21 the text of Section 15.408, Finance Code, as set out in Section 3
4-22 of this Act, gives effect to changes made by Chapter 338, Acts of
4-23 the 75th Legislature, Regular Session, 1997.
4-24 (c) To the extent of any conflict, this Act prevails over
4-25 another Act of the 76th Legislature, Regular Session, 1999,
4-26 relating to nonsubstantive additions and corrections in enacted
4-27 codes.
4-28 SECTION 17. The importance of this legislation and the
4-29 crowded condition of the calendars in both houses create an
4-30 emergency and an imperative public necessity that the
4-31 constitutional rule requiring bills to be read on three several
4-32 days in each house be suspended, and this rule is hereby suspended.
4-33 * * * * *