1-1 By: Carona S.B. No. 1055
1-2 (In the Senate - Filed March 9, 1999; March 10, 1999, read
1-3 first time and referred to Committee on Economic Development;
1-4 April 9, 1999, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 6, Nays 0; April 9, 1999,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1055 By: Carona
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the regulation and operation of credit unions.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Subsection (c), Section 15.204, Finance Code, is
1-13 amended to read as follows:
1-14 (c) In this section, "financial institution" includes an
1-15 institution such as a credit union, bank, savings bank, or savings
1-16 and loan association.
1-17 SECTION 2. Chapter 121, Finance Code, is amended by adding
1-18 Section 121.0011 to read as follows:
1-19 Sec. 121.0011. POLICY. The purposes of this subtitle are to
1-20 safeguard the public interest, to promote public confidence in
1-21 credit unions doing business in this state, to provide for the
1-22 protection of the interests, shares, and deposits of credit unions,
1-23 to delegate to the department rulemaking and discretionary
1-24 authority that may be necessary to assure that credit unions
1-25 operating under this subtitle may be sufficiently flexible and
1-26 readily responsive to changes in economic conditions and practices,
1-27 to maintain sound credit union growth and financial integrity,
1-28 fiscal responsibility, and independent judgment in the management
1-29 of the business affairs of credit unions, to permit credit unions
1-30 to effectively provide a full array of financial and financially
1-31 related services, to provide effective supervision and regulation
1-32 of credit unions and their fields of membership, and to clarify and
1-33 modernize the law governing the credit unions doing business in
1-34 this state. This subtitle is the public policy of this state and
1-35 necessary to the public welfare.
1-36 SECTION 3. Section 123.003, Finance Code, is amended to read
1-37 as follows:
1-38 Sec. 123.003. ENLARGEMENT OF POWERS. A [Notwithstanding any
1-39 other law, the commission by rule may authorize a] credit union may
1-40 [to] engage in any activity in which it could engage, exercise any
1-41 power it could exercise, or make any loan or investment it could
1-42 make, if it were operating as a federal credit union.
1-43 SECTION 4. Subsection (b), Section 125.301, Finance Code, is
1-44 amended to read as follows:
1-45 (b) A credit union may rely on any information provided by
1-46 the trustee to determine whether a trust is revocable or
1-47 irrevocable. [The name of each beneficiary must be disclosed to
1-48 the credit union when a trust account is opened.]
1-49 SECTION 5. Section 125.503, Finance Code, is amended to read
1-50 as follows:
1-51 Sec. 125.503. ACCESS BY MORE THAN ONE PERSON [JOINTLY HELD
1-52 SAFE DEPOSIT BOX]. (a) In the absence of a contract to the
1-53 contrary, a [A] credit union shall allow each holder of a safe
1-54 deposit box jointly held in the name of two or more persons or a
1-55 person other than the lessee designated in the lease agreement:
1-56 (1) access to the box; and
1-57 (2) removal of its contents.
1-58 (b) A credit union is not responsible for damage arising
1-59 because a holder or other designated person had access to the box
1-60 or removed its contents.
1-61 (c) The death of a holder of a jointly held safe deposit box
1-62 does not affect the right of another holder or other designated
1-63 person [of the box] to have access to and remove contents from the
1-64 box.
2-1 SECTION 6. This Act takes effect September 1, 1999.
2-2 SECTION 7. The importance of this legislation and the
2-3 crowded condition of the calendars in both houses create an
2-4 emergency and an imperative public necessity that the
2-5 constitutional rule requiring bills to be read on three several
2-6 days in each house be suspended, and this rule is hereby suspended.
2-7 * * * * *