By:  Carona                                           S.B. No. 1055
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the regulation and operations of credit unions.
 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-3     SECTION 1.  Section 15.204(c), Finance Code, is amended to read as
 1-4     follows:
 1-5     Sec. 15.204.  QUALIFICATIONS OF PUBLIC COMMISSION MEMBERS
 1-6           (c)  In this section, "financial institution" includes an
 1-7     institution such as a credit union, bank, savings bank, or savings
 1-8     and loan association.
 1-9     SECTION 2.  Chapter 121, Finance Code, is amended by adding Section
1-10     121.0015:
1-11     Sec. 121.0015.  PURPOSES.  The purposes of the legislature in
1-12     enacting this Act are to safeguard the public interest, to promote
1-13     public confidence in credit unions doing business in this state, to
1-14     provide for the protection of the interests, shares, and deposits
1-15     of credit unions, to delegate to the department rulemaking and
1-16     discretionary authority that may be necessary to assure that credit
1-17     unions operating under this Act may be sufficiently flexible and
1-18     readily responsive to changes in economic conditions and practices,
1-19     to maintain sound credit union growth and financial integrity,
1-20     fiscal responsibility, and independent judgment in the management
1-21     of the business affairs of credit unions, to permit Credit unions
1-22     to effectively provide a full array of financial and
 2-1     financially-related services, to provide effective supervision and
 2-2     regulation of credit unions and their fields of membership, and to
 2-3     clarify and modernize the law governing the credit unions doing
 2-4     business in this state.  Therefore, this Act is declared to be the
 2-5     public policy of this state and necessary to the public welfare.
 2-6     SECTION 3.  Section 123.003, Finance Code, is amended to read as
 2-7     follows:
 2-8     Sec. 123.003.  ENLARGEMENT OF POWERS.  [Notwithstanding any other
 2-9     law, the commission by rule may authorize a] A credit union [to] may
2-10     engage in any activity in which it could engage, exercise any power
2-11     it could exercise, or make any loan or investment it could make, if
2-12     it were operating as a federal credit union.
2-13     SECTION 4.  Section 125.301, Finance Code, is amended to read as
2-14     follows:
2-15     Sec. 125.301.  FORM OF ACCOUNT.  (a)  A credit union may receive
2-16     payments on shares or accept deposits in the name of any trustee:
2-17                 (1)  for a revocable trust, if:
2-18     a person who established the trust is a member of the credit union;
2-19     or
2-20     a trustee or beneficiary is a member of the credit union; or
2-21                 (2)  for an irrevocable trust if a person who
2-22     established the trust, trustee, or beneficiary is a member of the
2-23     credit union.
2-24     (b)  A credit union may rely on any information provided by the
2-25     trustee to determine whether a trust is revocable or irrevocable
2-26     [The name of each beneficiary must be disclosed to the credit union
 3-1     when a trust account is opened.]
 3-2     SECTION 5.  Section 125.503, Finance Code, is amended as follows:
 3-3     Sec. 125.503.  ACCESS BY MORE THAN ONE PERSON[ JOINTLY HELD SAFE
 3-4     DEPOSIT BOX.]
 3-5           (a)  In the absence of a contract to the contrary, a[A] credit
 3-6     union shall allow each holder of a safe deposit box jointly held in
 3-7     the name of two or more persons or a person other than the lessee
 3-8     designated in the lease agreement:
 3-9                 (1)  access to the box; and
3-10                 (2)  removal of its contents.
3-11           (b)  A credit union is not responsible for damage arising
3-12     because a holder or other designated person had access to the box
3-13     or removed its contents.
3-14           (c)  The death of a holder of a jointly held safe deposit box
3-15     does not affect the right of another holder or other designated
3-16     person [of the box] to have access to and remove contents from the
3-17     box.
3-18     SECTION 6.  This Act takes effect September 1, 1999.
3-19     SECTION 7.  The importance of this legislation and the crowded
3-20     condition of the calendars in both houses create an emergency and
3-21     an imperative public necessity that the constitutional rule
3-22     requiring bills to be read on three several days in each house be
3-23     suspended, and this rule is hereby suspended.