Texas 2013 - 83rd Regular

Texas Senate Bill SB1008 Compare Versions

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1	1	By: Carona S.B. No. 1008
2	2	(Anderson)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the business, supervision, and regulation of state
8	8	savings and loan associations and state savings banks; providing a
9	9	criminal penalty.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subsection (b), Section 13.002, Finance Code, is
12	12	amended to read as follows:
13	13	(b) The savings and mortgage lending commissioner must have
14	14	not less than five [seven] years' experience in the executive
15	15	management of a savings association or savings bank or in savings
16	16	association or savings bank supervision during the 10 years
17	17	preceding the commissioner's appointment.
18	18	SECTION 2. Section 61.002, Finance Code, is amended by
19	19	amending Subdivision (1) and adding Subdivision (1-a) to read as
20	20	follows:
21	21	(1) "Appropriate banking agency":
22	22	(A) means:
23	23	(i) with respect to a savings bank
24	24	chartered by this state, the Department of Savings and Mortgage
25	25	Lending;
26	26	(ii) with respect to a federal savings
27	27	bank, the Office of the Comptroller of the Currency;
28	28	(iii) with respect to a savings and loan
29	29	association chartered by this state, the Department of Savings and
30	30	Mortgage Lending;
31	31	(iv) with respect to a federal savings and
32	32	loan association, the Office of the Comptroller of the Currency;
33	33	(v) with respect to a bank chartered by this
34	34	state, the Texas Department of Banking;
35	35	(vi) with respect to a national bank, the
36	36	Office of the Comptroller of the Currency; and
37	37	(vii) with respect to a bank, savings bank,
38	38	or savings and loan association chartered by another state, the
39	39	chartering agency; and
40	40	(B) includes:
41	41	(i) in each case in which a state bank is a
42	42	member of the Federal Reserve System, the board of governors of the
43	43	Federal Reserve System;
44	44	(ii) in each case where required by the
45	45	Federal Deposit Insurance Act (12 U.S.C. Section 1811 et seq.), the
46	46	Federal Deposit Insurance Corporation; and
47	47	(iii) any successor of a state or federal
48	48	agency specified by this subdivision.
49	49	(1-a) "Association" means a savings and loan
50	50	association subject to this subtitle.
51	51	SECTION 3. Subsection (a), Section 62.105, Finance Code, is
52	52	amended to read as follows:
53	53	(a) An association shall maintain [on file with the
54	54	commissioner] a blanket indemnity bond with an adequate corporate
55	55	surety protecting the association from loss by or through dishonest
56	56	or criminal action or omission, including fraud, theft, robbery, or
57	57	burglary, by an officer or employee of the association or a director
58	58	of the association when the director performs the duties of an
59	59	officer or employee.
60	60	SECTION 4. Subsection (a), Section 62.206, Finance Code, is
61	61	amended to read as follows:
62	62	(a) The converted association shall file with the
63	63	commissioner:
64	64	(1) a copy of the charter issued to the federal
65	65	association by the Office of the Comptroller of the Currency
66	66	[Office of Thrift Supervision]; or
67	67	(2) a certificate showing the organization of the
68	68	association as a federal association, certified by the secretary or
69	69	assistant secretary of the Office of the Comptroller of the
70	70	Currency [Office of Thrift Supervision].
71	71	SECTION 5. Section 62.207, Finance Code, is amended to read
72	72	as follows:
73	73	Sec. 62.207. EFFECT OF ISSUANCE OF CHARTER. On the issuance
74	74	of a charter by the Office of the Comptroller of the Currency
75	75	[Office of Thrift Supervision], the association:
76	76	(1) ceases to be an association incorporated under
77	77	this subtitle; and
78	78	(2) is no longer subject to the supervision and
79	79	control of the commissioner.
80	80	SECTION 6. Subsection (b), Section 62.251, Finance Code, is
81	81	amended to read as follows:
82	82	(b) The application to convert must:
83	83	(1) be filed in the office of the commissioner and with
84	84	the appropriate banking agency [Office of Thrift Supervision or its
85	85	successor] not later than the 10th day after the date of the
86	86	meeting; and
87	87	(2) include a copy of the minutes of the meeting, sworn
88	88	to by the secretary or an assistant secretary.
89	89	SECTION 7. Subsection (c), Section 89.052, Finance Code, is
90	90	amended to read as follows:
91	91	(c) When a supervisory order is issued under Chapter 66, the
92	92	commissioner shall report the existence of the order promptly to
93	93	the finance commission but shall maintain the confidentiality of
94	94	the content of the order [and in a closed meeting shall furnish any
95	95	information about the association or the person that is the subject
96	96	of the order that the commission members may require. Any
97	97	information discussed in the closed meeting is confidential].
98	98	SECTION 8. Section 89.101, Finance Code, is amended to read
99	99	as follows:
100	100	Sec. 89.101. CRIMINAL SLANDER. (a) A person commits an
101	101	offense if the person[, with intent to injure an association or a
102	102	federal association in this state]:
103	103	(1) knowingly makes, utters, circulates, or transmits
104	104	to another person a statement that is untrue and derogatory to the
105	105	financial condition of an [the] association [or federal
106	106	association]; or
107	107	(2) with intent to injure an association counsels,
108	108	aids, procures, or induces another person to originate, make,
109	109	utter, transmit, or circulate a statement or rumor that is untrue
110	110	and derogatory to the financial condition of the association [or
111	111	federal association].
112	112	(b) An offense under Subsection (a) is a state jail felony
113	113	[punishable by:
114	114	[(1) a fine not to exceed $2,500;
115	115	[(2) imprisonment in the Texas Department of Criminal
116	116	Justice for not more than two years; or
117	117	[(3) both the fine and imprisonment].
118	118	SECTION 9. Subdivision (1), Section 91.002, Finance Code,
119	119	is amended to read as follows:
120	120	(1) "Appropriate banking agency":
121	121	(A) means:
122	122	(i) with respect to a savings bank
123	123	chartered by this state, the Department of Savings and Mortgage
124	124	Lending;
125	125	(ii) with respect to a federal savings
126	126	bank, the Office of the Comptroller of the Currency [Office of
127	127	Thrift Supervision];
128	128	(iii) with respect to a savings and loan
129	129	association chartered by this state, the Department of Savings and
130	130	Mortgage Lending;
131	131	(iv) with respect to a federal savings and
132	132	loan association, the Office of the Comptroller of the Currency
133	133	[Office of Thrift Supervision];
134	134	(v) with respect to a bank chartered by this
135	135	state, the Texas Department of Banking; [and]
136	136	(vi) with respect to a national bank, the
137	137	Office of the Comptroller of the Currency; and
138	138	(vii) with respect to a bank, savings bank,
139	139	or savings and loan association chartered by another state, the
140	140	chartering agency; and
141	141	(B) includes:
142	142	(i) in each case in which a state bank is a
143	143	member of the Federal Reserve System, the board of governors of the
144	144	Federal Reserve System;
145	145	(ii) in each case where required by the
146	146	Federal Deposit Insurance Act (12 U.S.C. Section 1811 et seq.), the
147	147	Federal Deposit Insurance Corporation; and
148	148	(iii) any successor of a state or federal
149	149	agency specified by this subdivision.
150	150	SECTION 10. Subsection (b), Section 94.002, Finance Code,
151	151	is amended to read as follows:
152	152	(b) In this section, "commercial loan" means a loan that:
153	153	(1) is for business, commercial, corporate, or
154	154	agricultural purposes; [and]
155	155	(2) is not a real property loan; and
156	156	(3) is not a qualified thrift asset under Section
157	157	92.204.
158	158	SECTION 11. Subsection (a), Section 96.002, Finance Code,
159	159	is amended to read as follows:
160	160	(a) The finance commission may adopt rules necessary to
161	161	supervise and regulate savings banks and to protect public
162	162	investment in savings banks, including rules relating to:
163	163	(1) the minimum amounts of capital required to
164	164	incorporate and operate as a savings bank, which may not be less
165	165	than the amounts required of corresponding national banks;
166	166	(2) the fees and procedures for processing, hearing,
167	167	and deciding applications filed with the commissioner or the
168	168	Department of Savings and Mortgage Lending under this subtitle;
169	169	(3) the books and records that a savings bank is
170	170	required to keep and the location at which the books and records are
171	171	required to be maintained;
172	172	(4) the accounting principles and practices that a
173	173	savings bank is required to observe;
174	174	(5) the conditions under which records may be copied
175	175	or reproduced for permanent storage before the originals are
176	176	destroyed;
177	177	(6) the form, content, and time of publication of
178	178	statements of condition;
179	179	(7) the form and content of any report [annual reports
180	180	and other reports] that a savings bank is required to prepare and
181	181	publish or file under this chapter;
182	182	(8) the manner in which assets, liabilities, and
183	183	transactions in general are to be described when entered in the
184	184	books of a savings bank, so that the entry accurately describes the
185	185	subject matter of the entry;
186	186	(9) the conditions under which the commissioner may
187	187	require an asset to be charged off or reserves established by
188	188	transfer from surplus or paid-in capital because of depreciation of
189	189	or overstated value of the asset;
190	190	(10) the change of control of a savings bank;
191	191	(11) the conduct, management, and operation of a
192	192	savings bank;
193	193	(12) the withdrawable accounts, bonuses, plans, and
194	194	contracts for savings programs;
195	195	(13) the merger, consolidation, reorganization,
196	196	conversion, and liquidation of a savings bank;
197	197	(14) the establishment of an additional office or the
198	198	change of office location or name of a savings bank;
199	199	(15) the requirements for a savings bank's holding
200	200	companies, including those relating to:
201	201	(A) registration and periodic reporting of a
202	202	holding company with the commissioner; and
203	203	(B) transactions between a holding company, an
204	204	affiliate of a holding company, or a savings bank; and
205	205	(16) the powers of a savings bank to make loans and
206	206	investments that contain provisions reasonably necessary to ensure
207	207	that a loan made by a savings bank is consistent with sound lending
208	208	practices and that the savings bank's investment will promote the
209	209	purposes of this subtitle, including provisions governing:
210	210	(A) the type of loans and the conditions under
211	211	which a savings bank may originate, make, or sell loans;
212	212	(B) the conditions under which a savings bank may
213	213	purchase or participate in a loan made by another lender;
214	214	(C) the conditions for the servicing of a loan
215	215	for another lender;
216	216	(D) the conditions under which a savings bank may
217	217	lend money on the security of a loan made by another person;
218	218	(E) the conditions under which a savings bank may
219	219	pledge loans held by it as collateral for borrowing by the savings
220	220	bank;
221	221	(F) the conditions under which a savings bank may
222	222	invest in securities and debt instruments;
223	223	(G) the documentation that a savings bank must
224	224	have in its files at the time of funding or purchase of a loan, an
225	225	investment, or a participation in a loan;
226	226	(H) the form and content of statements of
227	227	expenses and fees and other charges that are paid by a borrower or
228	228	that a borrower is obligated to pay;
229	229	(I) the title information that must be
230	230	maintained;
231	231	(J) the borrower's insurance coverage of
232	232	property securing a loan;
233	233	(K) an appraisal report;
234	234	(L) the financial statement of a borrower;
235	235	(M) the fees or other compensation that may be
236	236	paid to a person in connection with obtaining a loan for a savings
237	237	bank, including an officer, director, employee, affiliated person,
238	238	consultant, or third party;
239	239	(N) the conditions under which the savings bank
240	240	may advance money to pay a tax, assessment, insurance premium, or
241	241	other similar charge for the protection of the savings bank's
242	242	interest in property securing the savings bank's loans;
243	243	(O) the terms under which a savings bank may
244	244	acquire and deal in real property;
245	245	(P) the valuation on a savings bank's books of
246	246	real property held by the savings bank;
247	247	(Q) the terms governing the investment by a
248	248	savings bank in a subsidiary, the powers that may be exercised by a
249	249	subsidiary, and the activities that may be engaged in by a
250	250	subsidiary; and
251	251	(R) any other matter considered necessary to
252	252	administer each type of transaction.
253	253	SECTION 12. Subsection (b), Section 96.053, Finance Code,
254	254	is amended to read as follows:
255	255	(b) A savings bank shall make any [other] report the
256	256	commissioner may require to administer and enforce this chapter. A
257	257	[An additional] report under this section must be:
258	258	(1) [signed in the same manner as the annual report;
259	259	[(2)] in the form and manner the commissioner
260	260	prescribes; and
261	261	(2) [(3)] filed on the date the commissioner
262	262	prescribes.
263	263	SECTION 13. Subsection (a), Section 96.111, Finance Code,
264	264	is amended to read as follows:
265	265	(a) When a supervisory order is issued under this chapter,
266	266	the [The] commissioner shall report the existence of the order
267	267	promptly to the finance commission but shall maintain the
268	268	confidentiality of the content of the order [when a supervisory
269	269	order is issued under this chapter]. [The commissioner shall
270	270	furnish information about a savings bank or person as the finance
271	271	commission may require in a closed meeting. All information
272	272	discussed in the closed meeting is confidential.]
273	273	SECTION 14. Subchapter C, Chapter 119, Finance Code, is
274	274	amended by adding Section 119.202 to read as follows:
275	275	Sec. 119.202. CRIMINAL SLANDER OR LIBEL. (a) A person
276	276	commits an offense if the person:
277	277	(1) knowingly makes, utters, circulates, or transmits
278	278	to another person a statement that is untrue and derogatory to the
279	279	financial condition of a savings bank; or
280	280	(2) with intent to injure a savings bank counsels,
281	281	aids, procures, or induces another person to originate, make,
282	282	utter, transmit, or circulate a statement or rumor that is untrue
283	283	and derogatory to the financial condition of the savings bank.
284	284	(b) An offense under Subsection (a) is a state jail felony.
285	285	SECTION 15. The following provisions of the Finance Code
286	286	are repealed:
287	287	(1) Section 62.103;
288	288	(2) Section 92.202;
289	289	(3) Subchapter E, Chapter 94;
290	290	(4) Subsection (d), Section 96.051; and
291	291	(5) Subsection (a), Section 96.053.
292	292	SECTION 16. The change in law made by this Act applies only
293	293	to an offense committed on or after the effective date of this Act.
294	294	An offense committed before the effective date of this Act is
295	295	governed by the law in effect on the date the offense was committed,
296	296	and the former law is continued in effect for that purpose. For
297	297	purposes of this section, an offense was committed before the
298	298	effective date of this Act if any element of the offense occurred
299	299	before that date.
300	300	SECTION 17. This Act takes effect September 1, 2013.