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A BILL TO BE ENTITLED
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AN ACT
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relating to the continuation and functions of the Credit Union |
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Department and the Credit Union Commission. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 15.001(a), Finance Code, is amended to |
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read as follows: |
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(a) In this chapter, "Texas trade association" means a |
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[nonprofit,] cooperative[,] and voluntarily joined statewide |
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association of business or professional competitors in this state |
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designed to assist its members and its industry or profession in |
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dealing with mutual business or professional problems and in |
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promoting their common interest. |
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SECTION 2. Section 15.201(c), Finance Code, is amended to |
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read as follows: |
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(c) Appointments [An appointment] to the commission shall |
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[must] be made without regard to the race, color, [creed,] |
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disability, sex, religion, age, or national origin of the |
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appointees [appointee]. |
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SECTION 3. Section 15.202, Finance Code, is amended by |
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amending Subsection (b) and adding Subsection (c) to read as |
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follows: |
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(b) A person may not be a member of the commission if |
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[commission member may not be]: |
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(1) the person is an officer, employee, or paid |
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consultant of a Texas trade association in the financial |
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institutions field [an officer, employee, or paid consultant of a
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trade association representing or affiliated with a financial
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institution group or an entity affiliated with financial
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institutions]; or |
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(2) the person's spouse is an officer, manager, or paid |
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consultant of a Texas trade association in the financial |
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institutions field [a spouse of an officer, manager, or paid
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consultant of a trade association representing or affiliated with a
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financial institution group or an entity affiliated with financial
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institutions; or
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[(3)
a person who is required to register as a lobbyist
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under Chapter 305, Government Code, because of the person's
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activities for compensation on behalf of a profession related to
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the operation of the commission]. |
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(c) A person may not be a member of the commission if the |
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person is required to register as a lobbyist under Chapter 305, |
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Government Code, because of the person's activities for |
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compensation on behalf of a profession related to the operation of |
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the department. |
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SECTION 4. Section 15.2041, Finance Code, is amended to |
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read as follows: |
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Sec. 15.2041. TRAINING PROGRAM. (a) A [To be eligible to
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take office as a member of the commission, a] person who is |
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appointed to and qualifies for office as a member of the commission |
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may not vote, deliberate, or be counted as a member in attendance at |
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a meeting of the commission until the person completes [the
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commission must complete at least one course of] a training program |
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that complies with this section. [A commission member must
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complete a training program that complies with Subsection (b) not
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later than the 180th day after the date on which the person takes
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office.] |
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(b) The [A] training program [established under this
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section] must provide the person with information [to the member] |
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regarding: |
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(1) the legislation that created the department |
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[enabling legislation that created the department and its
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policy-making body to which the member is appointed to serve]; |
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(2) the programs, functions, rules, and budget of the |
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department [operated by the department]; |
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(3) [the role and functions of the department;
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[(4)
the rules of the commission with an emphasis on
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the rules that relate to disciplinary and investigatory authority;
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[(5) the current budget for the department;
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[(6)] the results of the most recent formal audit of |
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the department; |
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(4) [(7)] the requirements of laws relating to [the:
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[(A)] open meetings, public information, [law,
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Chapter 551, Government Code;
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[(B)
open records law, Chapter 552, Government
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Code; and
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[(C)] administrative procedure, and conflicts |
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[law, Chapter 2001, Government Code;
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[(8) the requirements of the conflict] of interest |
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[laws and other laws relating to public officials]; |
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(5) [(9)] any applicable ethics policies adopted by |
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the department or the Texas Ethics Commission; and |
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(6) [(10)] the basic principles and responsibilities |
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of credit union management. |
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(c) A person appointed to the commission is entitled to |
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reimbursement [for travel expenses incurred in attending the
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training program], as provided by the General Appropriations Act, |
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for the travel expenses incurred in attending the training program |
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regardless of whether the attendance at the program occurs before |
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or after the person qualifies for office [and as if the person were
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a member of the commission]. |
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SECTION 5. Sections 15.206(b), (c), and (d), Finance Code, |
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are amended to read as follows: |
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(b) It is a ground [grounds] for removal from the commission |
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that [if] a member: |
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(1) does not have at the time of taking office |
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[appointment] the [applicable] qualifications required by Sections |
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15.202, 15.203, and 15.204; |
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(2) does not maintain during service on the commission |
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the applicable qualifications required by Sections 15.202, 15.203, |
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and 15.204; |
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(3) is ineligible for membership under [violates a
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prohibition established by] Section 15.202, 15.203, or 15.204; |
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(4) cannot, because of illness or disability, |
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discharge the member's duties for a substantial part of the member's |
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term [for which the member is appointed]; or |
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(5) is absent from more than half of the regularly |
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scheduled commission meetings that the member is eligible to attend |
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during a calendar year without an excuse approved by a majority vote |
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of the commission. |
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(c) The validity of an action of the commission is not |
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affected by the fact that it is [was] taken when a ground for |
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removal of a commission member exists [existed]. |
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(d) If the commissioner has knowledge that a potential |
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ground for removal exists, the commissioner shall notify the |
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presiding officer of the commission of the potential ground. The |
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presiding officer shall then notify the governor and the attorney |
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general that a potential ground for removal exists. If the |
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potential ground for removal involves the presiding officer, the |
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commissioner shall notify the next highest ranking officer of the |
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commission, who shall then notify the governor and the attorney |
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general that a potential ground for removal exists. |
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SECTION 6. Section 15.210, Finance Code, is amended to read |
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as follows: |
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Sec. 15.210. PRESIDING OFFICER. The governor shall |
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designate a member of the commission as the presiding officer of the |
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commission to serve in that capacity at the pleasure [will] of the |
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governor. |
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SECTION 7. Section 15.212, Finance Code, is amended to read |
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as follows: |
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Sec. 15.212. SUNSET PROVISION. The Credit Union Department |
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and the Credit Union Commission are [is] subject to Chapter 325, |
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Government Code (Texas Sunset Act). Unless continued in existence |
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as provided by that chapter, the department and commission are [is] |
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abolished September 1, 2021 [2009]. |
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SECTION 8. Section 15.302(c), Finance Code, is amended to |
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read as follows: |
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(c) A person may not be appointed [The] commissioner if [may
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not]: |
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(1) the person is an [be a salaried] officer, |
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employee, or paid consultant of a Texas trade association in the |
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financial institutions field [credit union industry]; or |
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(2) the person's spouse is an officer, manager, or paid |
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consultant of a Texas trade association in the financial |
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institutions field [be related within the second degree by affinity
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or consanguinity, as determined under Chapter 573, Government Code,
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to a person who is a salaried officer, employee, or consultant of a
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trade association in the credit union industry]. |
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SECTION 9. Section 15.305, Finance Code, is amended to read |
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as follows: |
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Sec. 15.305. GENERAL COUNSEL. A person may not act as the |
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general counsel to the commission or the department if the person |
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[who] is required to register as a lobbyist under Chapter 305, |
|
Government Code, because of the person's activities for |
|
compensation on behalf of a profession related to the operation of |
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the department [commission, may not serve as general counsel to the
|
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commission]. |
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SECTION 10. Section 15.311, Finance Code, is amended to |
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read as follows: |
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Sec. 15.311. QUALIFICATIONS OF EMPLOYEES. A person may not |
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be a department [an] employee employed in a "bona fide executive, |
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administrative, or professional capacity," as that phrase is used |
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for purposes of establishing an exemption to the overtime |
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provisions of the federal Fair Labor Standards Act of 1938 (29 |
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U.S.C. Section 201 et seq.), if [of the department who is exempt
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from the state's position classification plan or is compensated at
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or above the amount prescribed by the General Appropriations Act
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for step 1, salary group 17, of the position classification salary
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schedule, if the person is]: |
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(1) the person is an officer, employee, or paid |
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consultant of a Texas trade association in the financial |
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institutions field [representing or affiliated with a financial
|
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institution group or an entity affiliated with financial
|
|
institutions]; or |
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(2) the person's [a] spouse is [of] an officer, |
|
manager, or paid consultant of a Texas trade association in the |
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financial institutions field [representing or affiliated with a
|
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financial institution group or an entity affiliated with financial
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institutions]. |
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SECTION 11. Subchapter E, Chapter 15, Finance Code, is |
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amended by adding Section 15.4024 to read as follows: |
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Sec. 15.4024. NEGOTIATED RULEMAKING AND ALTERNATIVE |
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DISPUTE RESOLUTION POLICY. (a) The commission shall develop and |
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implement a policy to encourage the use of: |
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(1) negotiated rulemaking procedures under Chapter |
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2008, Government Code, for the adoption of department rules; and |
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(2) appropriate alternative dispute resolution |
|
procedures under Chapter 2009, Government Code, to assist in the |
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resolution of internal and external disputes under the department's |
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jurisdiction. |
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(b) The department's procedures relating to alternative |
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dispute resolution must conform, to the extent possible, to any |
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model guidelines issued by the State Office of Administrative |
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Hearings for the use of alternative dispute resolution by state |
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agencies. |
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(c) The commission shall designate a trained person to: |
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(1) coordinate the implementation of the policy |
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adopted under Subsection (a); |
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(2) serve as a resource for any training needed to |
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implement the procedures for negotiated rulemaking or alternative |
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dispute resolution; and |
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(3) collect data concerning the effectiveness of those |
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procedures, as implemented by the department. |
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SECTION 12. Subchapter E, Chapter 15, Finance Code, is |
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amended by adding Section 15.4044 to read as follows: |
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Sec. 15.4044. FEES. The department may charge a late fee |
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against a credit union for late payment of its operating fees. |
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SECTION 13. Sections 15.409(b), (c), (d), (e), (f), and |
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(g), Finance Code, are amended to read as follows: |
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(b) The department [commissioner] shall maintain a system |
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to promptly and efficiently act on complaints [supervise the
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establishment and maintenance of files regarding each written
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complaint] filed with the department [that the department has
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authority to resolve]. The department shall maintain information |
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about parties to the complaint, the subject matter of the |
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complaint, a summary of the results of the review or investigation |
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of the complaint, and its disposition. |
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(c) [A file established and maintained under this section
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must include all relevant information regarding the nature, status,
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and disposition of a complaint.
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[(d)] The department shall make information available |
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describing its [provide to a person filing a complaint and the
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persons complained about the department's policies and] procedures |
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for [concerning] complaint investigation and resolution. |
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(d) The [(e)
At least quarterly until final disposition of
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any written complaint that is filed with the department, the] |
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department shall periodically notify the complaint parties [to the
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complaint] of the [its] status of [unless] the complaint until |
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final disposition [notice would jeopardize an undercover
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investigation]. |
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(e) [(f)
The department shall keep information about each
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complaint filed with the department. The information must include:
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[(1) the date the complaint is received;
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[(2) the name of the complainant;
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[(3) the subject matter of the complaint;
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[(4)
a record of all persons contacted in relation to
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the complaint;
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[(5)
a summary of the results of the review or
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investigation of the complaint; and
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[(6)
for a complaint that the department closed
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without taking action, an explanation of the reason the complaint
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was closed without action.
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[(g)] The commission by rule shall establish methods by |
|
which consumers and service recipients are notified of the name, |
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mailing address, [and] telephone number, and Internet website of |
|
the department for the purpose of directing complaints to the |
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department. The commission shall [may] provide for that |
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notification: |
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(1) on the Internet website of [each registration
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form, application, or written contract for services of] a credit |
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union regulated under this chapter and Subtitle D, Title 3, if the |
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credit union maintains a website; |
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(2) on a sign prominently displayed in the place of |
|
business of each credit union regulated under this chapter and |
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Subtitle D, Title 3; and [or] |
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(3) in any newsletter distributed [a bill for service
|
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provided] by a credit union regulated under this chapter and |
|
Subtitle D, Title 3, if the credit union distributes a newsletter. |
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(f) The commission by rule may establish other methods by |
|
which credit unions that do not have an Internet website or do not |
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distribute a newsletter may make the information described by |
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Subsection (e) more readily available to credit unions' customers |
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and service recipients. |
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SECTION 14. Subchapter E, Chapter 15, Finance Code, is |
|
amended by adding Section 15.4105 to read as follows: |
|
Sec. 15.4105. ANNUAL REPORT TO MEMBERS. (a) The commission |
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shall adopt, and the commissioner shall enforce, reasonable rules |
|
requiring a credit union regulated under this chapter and Subtitle |
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D, Title 3, to provide an annual report to the credit union's |
|
members regarding the credit union's financial condition and |
|
management. The report must: |
|
(1) include a current balance sheet; |
|
(2) include an income and expense statement; |
|
(3) contain the name and date of expiration of the term |
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of office of each member serving on the board of directors; |
|
(4) contain a brief description of any changes, since |
|
the preceding report was provided under this section, to the credit |
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union's: |
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(A) management; |
|
(B) bylaws; |
|
(C) articles of incorporation; |
|
(D) financial condition; |
|
(E) membership size; and |
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(F) services offered; and |
|
(5) contain any other information the commission |
|
considers necessary to ensure that credit union members are |
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provided with basic knowledge of the credit union's financial |
|
condition and management. |
|
(b) In adopting rules under this section, the commission |
|
must ensure that a credit union: |
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(1) updates the report before the credit union's |
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annual organizational meeting; |
|
(2) makes the report available to members throughout |
|
the year on the credit union's Internet website, if the credit union |
|
maintains a website; and |
|
(3) provides the report to credit union members by an |
|
alternative method, including delivery at the credit union's annual |
|
organizational meeting, if the credit union does not have an |
|
Internet website. |
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SECTION 15. Subchapter E, Chapter 15, Finance Code, is |
|
amended by adding Section 15.416 to read as follows: |
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Sec. 15.416. USE OF TECHNOLOGY. The commission shall |
|
implement a policy requiring the department to use appropriate |
|
technological solutions to improve the department's ability to |
|
perform its functions. The policy must ensure that the public is |
|
able to interact with the department on the Internet. |
|
SECTION 16. Chapter 15, Finance Code, is amended by adding |
|
Subchapter F to read as follows: |
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SUBCHAPTER F. RULES REGARDING USE OF ADVISORY COMMITTEES |
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Sec. 15.501. RULEMAKING AUTHORITY. (a) The commission |
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shall adopt rules, in compliance with Section 15.407 and Chapter |
|
2110, Government Code, regarding the purpose, structure, and use of |
|
advisory committees by the commission, including rules governing an |
|
advisory committee's: |
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(1) purpose, role, responsibility, and goals; |
|
(2) size and quorum requirements; |
|
(3) qualifications for membership, including |
|
experience requirements and geographic representation; |
|
(4) appointment procedures; |
|
(5) terms of service; |
|
(6) training requirements; and |
|
(7) duration. |
|
(b) An advisory committee must be structured and used to |
|
advise the commission. An advisory committee may not be |
|
responsible for rulemaking or policymaking. |
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Sec. 15.502. PERIODIC EVALUATION. The commission shall by |
|
rule establish a process by which the commission shall periodically |
|
evaluate an advisory committee to ensure its continued necessity. |
|
The commission may retain or develop committees as appropriate to |
|
meet changing needs. |
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Sec. 15.503. COMPLIANCE WITH OPEN MEETINGS ACT. A |
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commission advisory committee must comply with Chapter 551, |
|
Government Code. |
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SECTION 17. Subchapter C, Chapter 122, Finance Code, is |
|
amended by adding Section 122.107 to read as follows: |
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Sec. 122.107. NOTICE OF AVAILABILITY OF CERTAIN DOCUMENTS. |
|
(a) A credit union regulated under this subtitle and Chapter 15 |
|
shall give notice to the credit union's members of the availability |
|
on request of a member of documents related to the credit union's |
|
finances and management, including: |
|
(1) a summary of the most recent annual audit; |
|
(2) the most recent statement of financial condition, |
|
such as nonconfidential pages of the quarterly call report provided |
|
under Section 122.101; |
|
(3) a copy of IRS Form 990 or its successor; and |
|
(4) any other documents that members are entitled to |
|
possess, as determined by the commission. |
|
(b) The notice required by Subsection (a) must be given: |
|
(1) on the credit union's Internet website if the |
|
credit union maintains a website; and |
|
(2) in a newsletter twice a year if the credit union |
|
distributes a newsletter. |
|
(c) The commission shall adopt reasonable rules to |
|
implement this section, including rules prescribing an alternative |
|
method for credit unions that do not maintain an Internet website or |
|
distribute a newsletter to provide their members with notice of the |
|
documents required by Subsection (a). |
|
SECTION 18. The heading to Section 122.257, Finance Code, |
|
is amended to read as follows: |
|
Sec. 122.257. CEASE AND DESIST ORDER FOR CREDIT UNIONS. |
|
SECTION 19. Subchapter F, Chapter 122, Finance Code, is |
|
amended by adding Section 122.2575 to read as follows: |
|
Sec. 122.2575. CEASE AND DESIST ORDER FOR OTHER PERSONS. |
|
(a) If it appears to the commissioner that a person who is not |
|
authorized to engage in business under this subtitle or the Federal |
|
Credit Union Act (12 U.S.C. Section 1751 et seq.) is violating this |
|
subtitle, a rule adopted under this subtitle, or another state |
|
statute or rule relating to the regulation of credit unions, the |
|
commissioner may issue without notice and hearing an order to cease |
|
and desist from continuing a particular action to enforce |
|
compliance with the applicable state statute or rule relating to |
|
the regulation of credit unions. The order must contain a |
|
reasonably detailed statement of the fact on which the order is |
|
made. |
|
(b) If a person against whom an order under this section is |
|
made requests a hearing, the commissioner shall set and give notice |
|
of a hearing before the commissioner or a hearings officer. The |
|
hearing shall be governed by Chapter 2001, Government Code. |
|
(c) An order under this section becomes final unless the |
|
person to whom the order is issued requests a hearing not later than |
|
the 30th day after the date the order is issued. If a hearing has |
|
not been requested not later than the 30th day after the date the |
|
order is made, the order is considered final and nonappealable. |
|
SECTION 20. The change in law made by this Act in the |
|
qualifications of the members of the Credit Union Commission does |
|
not affect the entitlement of a person serving as a member of the |
|
commission immediately before September 1, 2009, to continue to |
|
carry out the functions of the person's office for the remainder of |
|
the person's term. The change in law applies only to a person |
|
appointed on or after September 1, 2009. This Act does not prohibit |
|
a person who is a member of the Credit Union Commission immediately |
|
before September 1, 2009, from being reappointed as a commission |
|
member if the person has the qualifications required for the |
|
position under Chapter 15, Finance Code, as amended by this Act. |
|
SECTION 21. This Act takes effect September 1, 2009. |