Texas 2009 - 81st Regular

Texas Senate Bill SB1012 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R4739 JE-D
2	2	By: Estes S.B. No. 1012
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the continuation and functions of the Credit Union
8	8	Department and the Credit Union Commission.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 15.001(a), Finance Code, is amended to
11	11	read as follows:
12	12	(a) In this chapter, "Texas trade association" means a
13	13	[nonprofit,] cooperative[,] and voluntarily joined statewide
14	14	association of business or professional competitors in this state
15	15	designed to assist its members and its industry or profession in
16	16	dealing with mutual business or professional problems and in
17	17	promoting their common interest.
18	18	SECTION 2. Section 15.201(c), Finance Code, is amended to
19	19	read as follows:
20	20	(c) Appointments [An appointment] to the commission shall
21	21	[must] be made without regard to the race, color, [creed,]
22	22	disability, sex, religion, age, or national origin of the
23	23	appointees [appointee].
24	24	SECTION 3. Section 15.202, Finance Code, is amended by
25	25	amending Subsection (b) and adding Subsection (c) to read as
26	26	follows:
27	27	(b) A person may not be a member of the commission if
28	28	[commission member may not be]:
29	29	(1) the person is an officer, employee, or paid
30	30	consultant of a Texas trade association in the financial
31	31	institutions field [an officer, employee, or paid consultant of a
32	32	trade association representing or affiliated with a financial
33	33	institution group or an entity affiliated with financial
34	34	institutions]; or
35	35	(2) the person's spouse is an officer, manager, or paid
36	36	consultant of a Texas trade association in the financial
37	37	institutions field [a spouse of an officer, manager, or paid
38	38	consultant of a trade association representing or affiliated with a
39	39	financial institution group or an entity affiliated with financial
40	40	institutions; or
41	41	[(3) a person who is required to register as a lobbyist
42	42	under Chapter 305, Government Code, because of the person's
43	43	activities for compensation on behalf of a profession related to
44	44	the operation of the commission].
45	45	(c) A person may not be a member of the commission if the
46	46	person is required to register as a lobbyist under Chapter 305,
47	47	Government Code, because of the person's activities for
48	48	compensation on behalf of a profession related to the operation of
49	49	the department.
50	50	SECTION 4. Section 15.2041, Finance Code, is amended to
51	51	read as follows:
52	52	Sec. 15.2041. TRAINING PROGRAM. (a) A [To be eligible to
53	53	take office as a member of the commission, a] person who is
54	54	appointed to and qualifies for office as a member of the commission
55	55	may not vote, deliberate, or be counted as a member in attendance at
56	56	a meeting of the commission until the person completes [the
57	57	commission must complete at least one course of] a training program
58	58	that complies with this section. [A commission member must
59	59	complete a training program that complies with Subsection (b) not
60	60	later than the 180th day after the date on which the person takes
61	61	office.]
62	62	(b) The [A] training program [established under this
63	63	section] must provide the person with information [to the member]
64	64	regarding:
65	65	(1) the legislation that created the department
66	66	[enabling legislation that created the department and its
67	67	policy-making body to which the member is appointed to serve];
68	68	(2) the programs, functions, rules, and budget of the
69	69	department [operated by the department];
70	70	(3) [the role and functions of the department;
71	71	[(4) the rules of the commission with an emphasis on
72	72	the rules that relate to disciplinary and investigatory authority;
73	73	[(5) the current budget for the department;
74	74	[(6)] the results of the most recent formal audit of
75	75	the department;
76	76	(4) [(7)] the requirements of laws relating to [the:
77	77	[(A)] open meetings, public information, [law,
78	78	Chapter 551, Government Code;
79	79	[(B) open records law, Chapter 552, Government
80	80	Code; and
81	81	[(C)] administrative procedure, and conflicts
82	82	[law, Chapter 2001, Government Code;
83	83	[(8) the requirements of the conflict] of interest
84	84	[laws and other laws relating to public officials];
85	85	(5) [(9)] any applicable ethics policies adopted by
86	86	the department or the Texas Ethics Commission; and
87	87	(6) [(10)] the basic principles and responsibilities
88	88	of credit union management.
89	89	(c) A person appointed to the commission is entitled to
90	90	reimbursement [for travel expenses incurred in attending the
91	91	training program], as provided by the General Appropriations Act,
92	92	for the travel expenses incurred in attending the training program
93	93	regardless of whether the attendance at the program occurs before
94	94	or after the person qualifies for office [and as if the person were
95	95	a member of the commission].
96	96	SECTION 5. Sections 15.206(b), (c), and (d), Finance Code,
97	97	are amended to read as follows:
98	98	(b) It is a ground [grounds] for removal from the commission
99	99	that [if] a member:
100	100	(1) does not have at the time of taking office
101	101	[appointment] the [applicable] qualifications required by Sections
102	102	15.202, 15.203, and 15.204;
103	103	(2) does not maintain during service on the commission
104	104	the applicable qualifications required by Sections 15.202, 15.203,
105	105	and 15.204;
106	106	(3) is ineligible for membership under [violates a
107	107	prohibition established by] Section 15.202, 15.203, or 15.204;
108	108	(4) cannot, because of illness or disability,
109	109	discharge the member's duties for a substantial part of the member's
110	110	term [for which the member is appointed]; or
111	111	(5) is absent from more than half of the regularly
112	112	scheduled commission meetings that the member is eligible to attend
113	113	during a calendar year without an excuse approved by a majority vote
114	114	of the commission.
115	115	(c) The validity of an action of the commission is not
116	116	affected by the fact that it is [was] taken when a ground for
117	117	removal of a commission member exists [existed].
118	118	(d) If the commissioner has knowledge that a potential
119	119	ground for removal exists, the commissioner shall notify the
120	120	presiding officer of the commission of the potential ground. The
121	121	presiding officer shall then notify the governor and the attorney
122	122	general that a potential ground for removal exists. If the
123	123	potential ground for removal involves the presiding officer, the
124	124	commissioner shall notify the next highest ranking officer of the
125	125	commission, who shall then notify the governor and the attorney
126	126	general that a potential ground for removal exists.
127	127	SECTION 6. Section 15.210, Finance Code, is amended to read
128	128	as follows:
129	129	Sec. 15.210. PRESIDING OFFICER. The governor shall
130	130	designate a member of the commission as the presiding officer of the
131	131	commission to serve in that capacity at the pleasure [will] of the
132	132	governor.
133	133	SECTION 7. Section 15.212, Finance Code, is amended to read
134	134	as follows:
135	135	Sec. 15.212. SUNSET PROVISION. The Credit Union Department
136	136	and the Credit Union Commission are [is] subject to Chapter 325,
137	137	Government Code (Texas Sunset Act). Unless continued in existence
138	138	as provided by that chapter, the department and commission are [is]
139	139	abolished September 1, 2021 [2009].
140	140	SECTION 8. Section 15.302(c), Finance Code, is amended to
141	141	read as follows:
142	142	(c) A person may not be appointed [The] commissioner if [may
143	143	not]:
144	144	(1) the person is an [be a salaried] officer,
145	145	employee, or paid consultant of a Texas trade association in the
146	146	financial institutions field [credit union industry]; or
147	147	(2) the person's spouse is an officer, manager, or paid
148	148	consultant of a Texas trade association in the financial
149	149	institutions field [be related within the second degree by affinity
150	150	or consanguinity, as determined under Chapter 573, Government Code,
151	151	to a person who is a salaried officer, employee, or consultant of a
152	152	trade association in the credit union industry].
153	153	SECTION 9. Section 15.305, Finance Code, is amended to read
154	154	as follows:
155	155	Sec. 15.305. GENERAL COUNSEL. A person may not act as the
156	156	general counsel to the commission or the department if the person
157	157	[who] is required to register as a lobbyist under Chapter 305,
158	158	Government Code, because of the person's activities for
159	159	compensation on behalf of a profession related to the operation of
160	160	the department [commission, may not serve as general counsel to the
161	161	commission].
162	162	SECTION 10. Section 15.311, Finance Code, is amended to
163	163	read as follows:
164	164	Sec. 15.311. QUALIFICATIONS OF EMPLOYEES. A person may not
165	165	be a department [an] employee employed in a "bona fide executive,
166	166	administrative, or professional capacity," as that phrase is used
167	167	for purposes of establishing an exemption to the overtime
168	168	provisions of the federal Fair Labor Standards Act of 1938 (29
169	169	U.S.C. Section 201 et seq.), if [of the department who is exempt
170	170	from the state's position classification plan or is compensated at
171	171	or above the amount prescribed by the General Appropriations Act
172	172	for step 1, salary group 17, of the position classification salary
173	173	schedule, if the person is]:
174	174	(1) the person is an officer, employee, or paid
175	175	consultant of a Texas trade association in the financial
176	176	institutions field [representing or affiliated with a financial
177	177	institution group or an entity affiliated with financial
178	178	institutions]; or
179	179	(2) the person's [a] spouse is [of] an officer,
180	180	manager, or paid consultant of a Texas trade association in the
181	181	financial institutions field [representing or affiliated with a
182	182	financial institution group or an entity affiliated with financial
183	183	institutions].
184	184	SECTION 11. Subchapter E, Chapter 15, Finance Code, is
185	185	amended by adding Section 15.4024 to read as follows:
186	186	Sec. 15.4024. NEGOTIATED RULEMAKING AND ALTERNATIVE
187	187	DISPUTE RESOLUTION POLICY. (a) The commission shall develop and
188	188	implement a policy to encourage the use of:
189	189	(1) negotiated rulemaking procedures under Chapter
190	190	2008, Government Code, for the adoption of department rules; and
191	191	(2) appropriate alternative dispute resolution
192	192	procedures under Chapter 2009, Government Code, to assist in the
193	193	resolution of internal and external disputes under the department's
194	194	jurisdiction.
195	195	(b) The department's procedures relating to alternative
196	196	dispute resolution must conform, to the extent possible, to any
197	197	model guidelines issued by the State Office of Administrative
198	198	Hearings for the use of alternative dispute resolution by state
199	199	agencies.
200	200	(c) The commission shall designate a trained person to:
201	201	(1) coordinate the implementation of the policy
202	202	adopted under Subsection (a);
203	203	(2) serve as a resource for any training needed to
204	204	implement the procedures for negotiated rulemaking or alternative
205	205	dispute resolution; and
206	206	(3) collect data concerning the effectiveness of those
207	207	procedures, as implemented by the department.
208	208	SECTION 12. Subchapter E, Chapter 15, Finance Code, is
209	209	amended by adding Section 15.4044 to read as follows:
210	210	Sec. 15.4044. FEES. The department may charge a late fee
211	211	against a credit union for late payment of its operating fees.
212	212	SECTION 13. Sections 15.409(b), (c), (d), (e), (f), and
213	213	(g), Finance Code, are amended to read as follows:
214	214	(b) The department [commissioner] shall maintain a system
215	215	to promptly and efficiently act on complaints [supervise the
216	216	establishment and maintenance of files regarding each written
217	217	complaint] filed with the department [that the department has
218	218	authority to resolve]. The department shall maintain information
219	219	about parties to the complaint, the subject matter of the
220	220	complaint, a summary of the results of the review or investigation
221	221	of the complaint, and its disposition.
222	222	(c) [A file established and maintained under this section
223	223	must include all relevant information regarding the nature, status,
224	224	and disposition of a complaint.
225	225	[(d)] The department shall make information available
226	226	describing its [provide to a person filing a complaint and the
227	227	persons complained about the department's policies and] procedures
228	228	for [concerning] complaint investigation and resolution.
229	229	(d) The [(e) At least quarterly until final disposition of
230	230	any written complaint that is filed with the department, the]
231	231	department shall periodically notify the complaint parties [to the
232	232	complaint] of the [its] status of [unless] the complaint until
233	233	final disposition [notice would jeopardize an undercover
234	234	investigation].
235	235	(e) [(f) The department shall keep information about each
236	236	complaint filed with the department. The information must include:
237	237	[(1) the date the complaint is received;
238	238	[(2) the name of the complainant;
239	239	[(3) the subject matter of the complaint;
240	240	[(4) a record of all persons contacted in relation to
241	241	the complaint;
242	242	[(5) a summary of the results of the review or
243	243	investigation of the complaint; and
244	244	[(6) for a complaint that the department closed
245	245	without taking action, an explanation of the reason the complaint
246	246	was closed without action.
247	247	[(g)] The commission by rule shall establish methods by
248	248	which consumers and service recipients are notified of the name,
249	249	mailing address, [and] telephone number, and Internet website of
250	250	the department for the purpose of directing complaints to the
251	251	department. The commission shall [may] provide for that
252	252	notification:
253	253	(1) on the Internet website of [each registration
254	254	form, application, or written contract for services of] a credit
255	255	union regulated under this chapter and Subtitle D, Title 3, if the
256	256	credit union maintains a website;
257	257	(2) on a sign prominently displayed in the place of
258	258	business of each credit union regulated under this chapter and
259	259	Subtitle D, Title 3; and [or]
260	260	(3) in any newsletter distributed [a bill for service
261	261	provided] by a credit union regulated under this chapter and
262	262	Subtitle D, Title 3, if the credit union distributes a newsletter.
263	263	(f) The commission by rule may establish other methods by
264	264	which credit unions that do not have an Internet website or do not
265	265	distribute a newsletter may make the information described by
266	266	Subsection (e) more readily available to credit unions' customers
267	267	and service recipients.
268	268	SECTION 14. Subchapter E, Chapter 15, Finance Code, is
269	269	amended by adding Section 15.4105 to read as follows:
270	270	Sec. 15.4105. ANNUAL REPORT TO MEMBERS. (a) The commission
271	271	shall adopt, and the commissioner shall enforce, reasonable rules
272	272	requiring a credit union regulated under this chapter and Subtitle
273	273	D, Title 3, to provide an annual report to the credit union's
274	274	members regarding the credit union's financial condition and
275	275	management. The report must:
276	276	(1) include a current balance sheet;
277	277	(2) include an income and expense statement;
278	278	(3) contain the name and date of expiration of the term
279	279	of office of each member serving on the board of directors;
280	280	(4) contain a brief description of any changes, since
281	281	the preceding report was provided under this section, to the credit
282	282	union's:
283	283	(A) management;
284	284	(B) bylaws;
285	285	(C) articles of incorporation;
286	286	(D) financial condition;
287	287	(E) membership size; and
288	288	(F) services offered; and
289	289	(5) contain any other information the commission
290	290	considers necessary to ensure that credit union members are
291	291	provided with basic knowledge of the credit union's financial
292	292	condition and management.
293	293	(b) In adopting rules under this section, the commission
294	294	must ensure that a credit union:
295	295	(1) updates the report before the credit union's
296	296	annual organizational meeting;
297	297	(2) makes the report available to members throughout
298	298	the year on the credit union's Internet website, if the credit union
299	299	maintains a website; and
300	300	(3) provides the report to credit union members by an
301	301	alternative method, including delivery at the credit union's annual
302	302	organizational meeting, if the credit union does not have an
303	303	Internet website.
304	304	SECTION 15. Subchapter E, Chapter 15, Finance Code, is
305	305	amended by adding Section 15.416 to read as follows:
306	306	Sec. 15.416. USE OF TECHNOLOGY. The commission shall
307	307	implement a policy requiring the department to use appropriate
308	308	technological solutions to improve the department's ability to
309	309	perform its functions. The policy must ensure that the public is
310	310	able to interact with the department on the Internet.
311	311	SECTION 16. Chapter 15, Finance Code, is amended by adding
312	312	Subchapter F to read as follows:
313	313	SUBCHAPTER F. RULES REGARDING USE OF ADVISORY COMMITTEES
314	314	Sec. 15.501. RULEMAKING AUTHORITY. (a) The commission
315	315	shall adopt rules, in compliance with Section 15.407 and Chapter
316	316	2110, Government Code, regarding the purpose, structure, and use of
317	317	advisory committees by the commission, including rules governing an
318	318	advisory committee's:
319	319	(1) purpose, role, responsibility, and goals;
320	320	(2) size and quorum requirements;
321	321	(3) qualifications for membership, including
322	322	experience requirements and geographic representation;
323	323	(4) appointment procedures;
324	324	(5) terms of service;
325	325	(6) training requirements; and
326	326	(7) duration.
327	327	(b) An advisory committee must be structured and used to
328	328	advise the commission. An advisory committee may not be
329	329	responsible for rulemaking or policymaking.
330	330	Sec. 15.502. PERIODIC EVALUATION. The commission shall by
331	331	rule establish a process by which the commission shall periodically
332	332	evaluate an advisory committee to ensure its continued necessity.
333	333	The commission may retain or develop committees as appropriate to
334	334	meet changing needs.
335	335	Sec. 15.503. COMPLIANCE WITH OPEN MEETINGS ACT. A
336	336	commission advisory committee must comply with Chapter 551,
337	337	Government Code.
338	338	SECTION 17. Subchapter C, Chapter 122, Finance Code, is
339	339	amended by adding Section 122.107 to read as follows:
340	340	Sec. 122.107. NOTICE OF AVAILABILITY OF CERTAIN DOCUMENTS.
341	341	(a) A credit union regulated under this subtitle and Chapter 15
342	342	shall give notice to the credit union's members of the availability
343	343	on request of a member of documents related to the credit union's
344	344	finances and management, including:
345	345	(1) a summary of the most recent annual audit;
346	346	(2) the most recent statement of financial condition,
347	347	such as nonconfidential pages of the quarterly call report provided
348	348	under Section 122.101;
349	349	(3) a copy of IRS Form 990 or its successor; and
350	350	(4) any other documents that members are entitled to
351	351	possess, as determined by the commission.
352	352	(b) The notice required by Subsection (a) must be given:
353	353	(1) on the credit union's Internet website if the
354	354	credit union maintains a website; and
355	355	(2) in a newsletter twice a year if the credit union
356	356	distributes a newsletter.
357	357	(c) The commission shall adopt reasonable rules to
358	358	implement this section, including rules prescribing an alternative
359	359	method for credit unions that do not maintain an Internet website or
360	360	distribute a newsletter to provide their members with notice of the
361	361	documents required by Subsection (a).
362	362	SECTION 18. The heading to Section 122.257, Finance Code,
363	363	is amended to read as follows:
364	364	Sec. 122.257. CEASE AND DESIST ORDER FOR CREDIT UNIONS.
365	365	SECTION 19. Subchapter F, Chapter 122, Finance Code, is
366	366	amended by adding Section 122.2575 to read as follows:
367	367	Sec. 122.2575. CEASE AND DESIST ORDER FOR OTHER PERSONS.
368	368	(a) If it appears to the commissioner that a person who is not
369	369	authorized to engage in business under this subtitle or the Federal
370	370	Credit Union Act (12 U.S.C. Section 1751 et seq.) is violating this
371	371	subtitle, a rule adopted under this subtitle, or another state
372	372	statute or rule relating to the regulation of credit unions, the
373	373	commissioner may issue without notice and hearing an order to cease
374	374	and desist from continuing a particular action to enforce
375	375	compliance with the applicable state statute or rule relating to
376	376	the regulation of credit unions. The order must contain a
377	377	reasonably detailed statement of the fact on which the order is
378	378	made.
379	379	(b) If a person against whom an order under this section is
380	380	made requests a hearing, the commissioner shall set and give notice
381	381	of a hearing before the commissioner or a hearings officer. The
382	382	hearing shall be governed by Chapter 2001, Government Code.
383	383	(c) An order under this section becomes final unless the
384	384	person to whom the order is issued requests a hearing not later than
385	385	the 30th day after the date the order is issued. If a hearing has
386	386	not been requested not later than the 30th day after the date the
387	387	order is made, the order is considered final and nonappealable.
388	388	SECTION 20. The change in law made by this Act in the
389	389	qualifications of the members of the Credit Union Commission does
390	390	not affect the entitlement of a person serving as a member of the
391	391	commission immediately before September 1, 2009, to continue to
392	392	carry out the functions of the person's office for the remainder of
393	393	the person's term. The change in law applies only to a person
394	394	appointed on or after September 1, 2009. This Act does not prohibit
395	395	a person who is a member of the Credit Union Commission immediately
396	396	before September 1, 2009, from being reappointed as a commission
397	397	member if the person has the qualifications required for the
398	398	position under Chapter 15, Finance Code, as amended by this Act.
399	399	SECTION 21. This Act takes effect September 1, 2009.