Texas 2015 - 84th Regular

Texas Senate Bill SB1791 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Ellis S.B. No. 1791
2		-	(Farrar)
	1	+	S.B. No. 1791
3	2
4	3
5		-	A BILL TO BE ENTITLED
6	4		AN ACT
7	5		relating to disclosures on selection or modification of an account
8	6		by a customer of a financial institution.
9	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	8		SECTION 1. Section 113.053, Estates Code, is amended to
11	9		read as follows:
12	10		Sec. 113.053. REQUIRED DISCLOSURE; USE OF FORM[;
13	11		DISCLOSURE]. (a) A financial institution shall disclose the
14	12		information provided in this subchapter to a customer at the time
15	13		the customer selects or modifies an account. A financial
16	14		institution is considered to have [adequately] disclosed the
17	15		information provided in this subchapter if:
18	16		(1) the financial institution uses the form provided
19	17		by Section 113.052; and
20	18		(2) the customer places the customer's initials to the
21	19		right of each paragraph of the form.
22	20		(b) If a financial institution varies the format of the form
23	21		provided by Section 113.052, the financial institution may make
24	22		disclosures in the account agreement or in any other form that
25	23		[adequately] discloses the information provided by this
26	24		subchapter. Disclosures under this subsection must:
27	25		(1) be given separately from other account
28	26		information;
29	27		(2) be provided before account selection or
30	28		modification;
31	29		(3) be printed in 14-point boldfaced type; and
32	30		(4) if the discussions that precede the account
33	31		opening or modification are conducted primarily in a language other
34	32		than English, be in that language.
35	33		(c) The financial institution shall notify the customer of
36	34		the type of account the customer selected [If the customer receives
37	35		adequate disclosure of the ownership rights to an account and the
38	36		names of the parties are appropriately indicated, a financial
39	37		institution may combine any of the provisions in, and vary the
40	38		format of, the form and notices described in Section 113.052 in:
41	39		[(1) a universal account form with options listed for
42	40		selection and additional disclosures provided in the account
43	41		agreement; or
44	42		[(2) any other manner that adequately discloses the
45	43		information provided by this subchapter].
46	44		(d) This section does not apply to a credit union.
47	45		SECTION 2. Subchapter B, Chapter 113, Estates Code, is
48	46		amended by adding Section 113.0531 to read as follows:
49	47		Sec. 113.0531. USE OF FORM AND DISCLOSURE BY CREDIT UNIONS.
50	48		(a) A credit union is considered to have disclosed the information
51	49		provided by this subchapter if the credit union uses the form
52	50		provided by Section 113.052.
53	51		(b) If a credit union varies the format of the form provided
54	52		by Section 113.052, the credit union may make disclosures in the
55	53		account agreement or in any other form that discloses the
56	54		information provided by this subchapter.
57	55		(c) If the customer receives disclosure of the ownership
58	56		rights to an account and the names of the parties are indicated, a
59	57		credit union may combine any of the provisions in, and vary the
60	58		format of, the form and notices described in Section 113.052 in:
61	59		(1) a universal account form with options listed for
62	60		selection and additional disclosures provided in the account
63	61		agreement; or
64	62		(2) any other manner that adequately discloses the
65	63		information provided by this subchapter.
66	64		SECTION 3. This Act applies only to an account created or
67	65		modified on or after the effective date of this Act. An account
68	66		created or modified before the effective date of this Act is
69	67		governed by the law in effect when the account was created or
70	68		modified, and the former law is continued in effect for that
71	69		purpose.
72	70		SECTION 4. This Act takes effect September 1, 2015.
	71	+	______________________________ ______________________________
	72	+	President of the Senate Speaker of the House
	73	+	I hereby certify that S.B. No. 1791 passed the Senate on
	74	+	April 20, 2015, by the following vote: Yeas 29, Nays 1.
	75	+	______________________________
	76	+	Secretary of the Senate
	77	+	I hereby certify that S.B. No. 1791 passed the House on
	78	+	May 11, 2015, by the following vote: Yeas 118, Nays 7, one
	79	+	present not voting.
	80	+	______________________________
	81	+	Chief Clerk of the House
	82	+	Approved:
	83	+	______________________________
	84	+	Date
	85	+	______________________________
	86	+	Governor