CHAPTER 15. CREDIT UNION COMMISSION AND DEPARTMENT
FINANCE CODE
TITLE 2. FINANCIAL REGULATORY AGENCIES
CHAPTER 15. CREDIT UNION COMMISSION AND DEPARTMENT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 15.001. DEFINITIONS. (a) In this chapter, "Texas trade
association" means a cooperative and voluntarily joined statewide
association of business or professional competitors in this state
designed to assist its members and its industry or profession in
dealing with mutual business or professional problems and in
promoting their common interest.
(b) The definitions provided by Section 121.002 apply to this
chapter.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.05(a), eff. Sept.
1, 1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
695, Sec. 1, eff. September 1, 2009.
SUBCHAPTER B. DEPARTMENT
Sec. 15.101. COMPOSITION OF DEPARTMENT. The department is
composed of:
(1) the commission;
(2) the commissioner; and
(3) other department officers and employees.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 15.102. REGULATION OF CREDIT UNIONS. The department shall
supervise and regulate credit unions as provided by this chapter
and Subtitle D, Title 3.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 15.103. STUDY OF STATUTES. The department periodically
shall comprehensively study the statutes of this state as they
pertain to credit union operations.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
SUBCHAPTER C. COMPOSITION OF COMMISSION
Sec. 15.201. APPOINTMENT; TERMS. (a) The commission is
composed of nine members appointed by the governor with the
advice and consent of the senate.
(b) Commission members serve staggered terms of six years, with
the terms of one-third of the members expiring February 15 of
each odd-numbered year.
(c) Appointments to the commission shall be made without regard
to the race, color, disability, sex, religion, age, or national
origin of the appointees.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.06(a), eff. Sept.
1, 1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
695, Sec. 2, eff. September 1, 2009.
Sec. 15.202. GENERAL QUALIFICATIONS OF COMMISSION MEMBERS. (a)
No two commission members may be residents of the same state
senatorial district.
(b) A person may not be a member of the commission if:
(1) the person is an officer, employee, or paid consultant of a
Texas trade association in the financial institutions field; or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association in the financial
institutions field.
(c) A person may not be a member of the commission if the person
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 the department.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.05(b), eff. Sept.
1, 1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
695, Sec. 3, eff. September 1, 2009.
Sec. 15.203. QUALIFICATIONS OF INDUSTRY COMMISSION MEMBERS. (a)
Four commission members must be individuals who:
(1) have five years or more of active experience as a director,
officer, or committee member of a credit union that:
(A) is organized and doing business in this state under Subtitle
D, Title 3, or the Federal Credit Union Act (12 U.S.C. Section
1751 et seq.); and
(B) has its principal office in this state; and
(2) are engaged in exercising the powers and duties of a
director, officer, or committee member of such a credit union.
(b) Experience as a commissioner, deputy commissioner, or
examiner is equivalent to the experience required by Subsection
(a).
(c) Not more than one individual from a federal credit union may
serve on the commission at any time.
(d) An individual who ceases to be engaged in exercising the
powers and duties prescribed by this section for a period
exceeding 90 days becomes ineligible to serve as a commission
member, and the individual's position on the commission becomes
vacant.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.05(c), eff. Sept.
1, 1999.
Sec. 15.204. QUALIFICATIONS OF PUBLIC COMMISSION MEMBERS. (a)
Five commission members must be representatives of the public. A
person is not eligible for appointment as a public member of the
commission if the person or the person's spouse:
(1) is employed by or participates in managing or directing:
(A) a financial institution; or
(B) an organization, other than a financial institution,
regulated by or receiving money from a financial institution
regulatory agency;
(2) has, other than as a member or customer, a financial
interest in:
(A) a financial institution; or
(B) an organization, other than a financial institution,
regulated by or receiving money from a financial institution
regulatory agency; or
(3) uses or receives a substantial amount of tangible goods,
services, or money from the department, other than compensation
or reimbursement authorized by law for commission membership,
attendance, or expenses.
(b) The governor shall appoint public commission members on the
basis of recognized business ability.
(c) In this section, "financial institution" includes an
institution such as a credit union, bank, savings bank, or
savings and loan association.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.05(d), eff. Sept.
1, 1999; Acts 1999, 76th Leg., ch. 87, Sec. 1, eff. Sept. 1,
1999.
Sec. 15.2041. TRAINING PROGRAM. (a) A person who is appointed
to and qualifies for office as a member of the commission may not
vote, deliberate, or be counted as a member in attendance at a
meeting of the commission until the person completes a training
program that complies with this section.
(b) The training program must provide the person with
information regarding:
(1) the legislation that created the department;
(2) the programs, functions, rules, and budget of the
department;
(3) the results of the most recent formal audit of the
department;
(4) the requirements of laws relating to open meetings, public
information, administrative procedure, and conflicts of
interest;
(5) any applicable ethics policies adopted by the department or
the Texas Ethics Commission; and
(6) the basic principles and responsibilities of credit union
management.
(c) A person appointed to the commission is entitled to
reimbursement under Section 15.207, as if the person were a
member of the commission, for travel expenses incurred in
attending the training program, regardless of whether the
attendance at the program occurs before or after the person
qualifies for office.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.07(a), eff. Sept.
1, 1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
695, Sec. 4, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch.
1317, Sec. 28(e), eff. September 1, 2009.
Sec. 15.205. VACANCIES. The office of a commission member
becomes vacant:
(1) on the death, resignation, or removal of the member; or
(2) if the member ceases to have the qualifications required for
service as a member.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.08(a), eff. Sept.
1, 1999.
Sec. 15.206. REMOVAL. (a) A ground for removal of a commission
member by the governor exists if a member:
(1) neglects the member's duty;
(2) is incompetent; or
(3) commits fraudulent or criminal conduct.
(b) It is a ground for removal from the commission that a
member:
(1) does not have at the time of taking office the
qualifications required by Sections 15.202, 15.203, and 15.204;
(2) does not maintain during service on the commission the
applicable qualifications required by Sections 15.202, 15.203,
and 15.204;
(3) is ineligible for membership under Section 15.202, 15.203,
or 15.204;
(4) cannot, because of illness or disability, discharge the
member's duties for a substantial part of the member's term; or
(5) is absent from more than half of the regularly scheduled
commission meetings that the member is eligible to attend during
a calendar year without an excuse approved by a majority vote of
the commission.
(c) The validity of an action of the commission is not affected
by the fact that it is taken when a ground for removal of a
commission member exists.
(d) If the commissioner has knowledge that a potential ground
for removal exists, the commissioner shall notify the presiding
officer of the commission of the potential ground. The presiding
officer shall then notify the governor and the attorney general
that a potential ground for removal exists. If the potential
ground for removal involves the presiding officer, the
commissioner shall notify the next highest ranking officer of the
commission, who shall then notify the governor and the attorney
general that a potential ground for removal exists.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.08(b), eff. Sept.
1, 1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
695, Sec. 5, eff. September 1, 2009.
Sec. 15.207. EXPENSES AND COMPENSATION OF COMMISSION MEMBERS.
(a) A commission member may not receive compensation or a
benefit because of the member's service on the commission except
as provided by Subsection (b).
(b) For each day that a commission member engages in the
business of the commission, the member is entitled to:
(1) per diem, including compensatory per diem;
(2) actual expenses for meals and lodging; and
(3) transportation expenses.
(c) Repealed by Acts 2009, 81st Leg., R.S., Ch. 1317, Sec.
28(i), eff. September 1, 2009.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1317, Sec. 28(i), eff. September 1, 2009.
Sec. 15.208. MATTER IN WHICH COMMISSION MEMBER HAS PERSONAL
INTEREST. (a) A commission member may not act on a matter under
the commission's consideration that directly affects a credit
union of which the member is an officer, director, or member.
(b) The commission shall adopt rules relating to recusal of
members, requiring that a member who has a personal or private
interest in a measure, proposal, or decision pending before the
commission shall publicly disclose the fact to the commission at
a meeting held in compliance with Chapter 551, Government Code.
The member may not vote or otherwise participate in the decision.
The disclosure shall be entered into the minutes of the meeting.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.09(a), eff. Sept.
1, 1999.
Sec. 15.209. MEETINGS. (a) The commission shall hold at least
two regular meetings each year.
(b) The chairman, the commissioner, or five commission members
may call a special meeting of the commission.
(c) The commission shall adopt reasonable rules governing a
meeting, including rules relating to the:
(1) time and place of a meeting;
(2) conduct of a meeting; and
(3) form of the minutes.
(d) The commission is subject to the:
(1) open meetings law, Chapter 551, Government Code; and
(2) administrative procedure law, Chapter 2001, Government Code.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.09(b), eff. Sept.
1, 1999.
Sec. 15.210. PRESIDING OFFICER. The governor shall designate a
member of the commission as the presiding officer of the
commission to serve in that capacity at the pleasure of the
governor.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.09(c), eff. Sept.
1, 1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
695, Sec. 6, eff. September 1, 2009.
Sec. 15.211. SUIT FOR OFFICIAL ACT OR OMISSION. (a) The
attorney general shall defend an action brought against a
commission member or an officer or employee of the commission
because of the person's official act or omission regardless of
whether the individual is a member, officer, or employee of the
commission at the time the action is initiated.
(b) A suit against the commission or its officers or employees
may be brought only in Travis County.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 15.212. SUNSET PROVISION. The Credit Union Department and
the Credit Union Commission are subject to Chapter 325,
Government Code (Texas Sunset Act). Unless continued in
existence as provided by that chapter, the department and
commission are abolished September 1, 2021.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.04(b), eff. Sept.
1, 1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
695, Sec. 7, eff. September 1, 2009.
SUBCHAPTER D. COMMISSIONER AND OTHER EMPLOYEES OF COMMISSION
Sec. 15.301. COMMISSIONER. (a) The commission shall appoint a
commissioner by affirmative vote of two-thirds of the membership
of the commission.
(b) The commissioner serves at the will of the commission.
(c) The commissioner is an employee of the commission and is
subject to the commission's orders and directions.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 15.302. QUALIFICATIONS OF COMMISSIONER. (a) The
commissioner must have at least five years' practical experience
in the operation of credit unions during the 10 years preceding
the commissioner's appointment.
(b) The experience required by this section may consist of
experience:
(1) in exercising the powers and duties of a director, officer,
or committee member of a credit union; or
(2) in the employment of a credit union regulatory agency.
(c) A person may not be appointed commissioner if:
(1) the person is an officer, employee, or paid consultant of a
Texas trade association in the financial institutions field; or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association in the financial
institutions field.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
695, Sec. 8, eff. September 1, 2009.
Sec. 15.303. DEPUTY COMMISSIONER. (a) Subject to the
commission's approval, the commissioner may appoint a deputy
commissioner, who must have the qualifications required of the
commissioner.
(b) The deputy commissioner serves at the will of the
commissioner and, at the commissioner's direction, may exercise
the powers and prerogatives of the commissioner.
(c) The deputy commissioner is an employee of the commission and
is subject to the commission's orders and directions.
(d) During the commissioner's absence or inability to act, the
deputy commissioner shall perform the commissioner's duties.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 15.304. EXAMINERS. (a) The commissioner shall appoint a
sufficient number of credit union examiners to perform fully the
duties imposed by the laws of this state.
(b) Appointment of an examiner is subject to recruitment
specifications and qualifications approved by the commission.
(c) An examiner is an employee of the commission and is subject
to the commission's orders and directions.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 15.305. GENERAL COUNSEL. A person may not act as the
general counsel to the commission or the department if the person
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 the department.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.05(e), eff. Sept.
1, 1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
695, Sec. 9, eff. September 1, 2009.
Sec. 15.306. OATH. Before assuming the duties of office, the
commissioner, the deputy commissioner, each examiner, and each
other officer or employee of the commission must take an oath of
office approved by the commission.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 2003, 78th Leg., ch. 285, Sec. 8, eff. Sept. 1,
2003.
Sec. 15.307. OFFICERS OF COMMISSION AND DEPARTMENT. Each
officer of the commission and department, except a commission
member, is an employee of the commission and is subject to the
commission's orders and directions.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 15.309. INTRA-AGENCY CAREER LADDER. (a) The commissioner
or a person designated by the commissioner shall develop an
intra-agency career ladder program that addresses opportunities
for mobility and advancement for employees within the department.
(b) The program must require intra-agency posting of all
non-entry-level positions concurrently with public posting.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.12(a), eff. Sept.
1, 1999.
Sec. 15.310. PERFORMANCE EVALUATION. (a) The commissioner or a
person designated by the commissioner shall develop a system of
annual performance evaluations that are based on documented
employee performance.
(b) Merit pay for department employees must be based on the
system established under this section.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.12(b), eff. Sept.
1, 1999.
Sec. 15.311. QUALIFICATIONS OF EMPLOYEES. A person may not be a
department employee employed in a "bona fide executive,
administrative, or professional capacity," as that phrase is used
for purposes of establishing an exemption to the overtime
provisions of the federal Fair Labor Standards Act of 1938 (29
U.S.C. Section 201 et seq.), if:
(1) the person is an officer, employee, or paid consultant of a
Texas trade association in the financial institutions field; or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association in the financial
institutions field.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.05(f), eff. Sept.
1, 1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
695, Sec. 10, eff. September 1, 2009.
Sec. 15.312. INFORMATION PROVIDED TO MEMBERS AND EMPLOYEES. The
commissioner or the commissioner's designee shall provide to
members of the commission and to department employees, as often
as necessary, information regarding their qualification for
office or employment under this chapter and their
responsibilities under applicable laws relating to standards of
conduct for state officers or employees.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.11(a), eff. Sept.
1, 1999.
Sec. 15.313. EQUAL EMPLOYMENT OPPORTUNITY POLICY. (a) The
commissioner or a person designated by the commissioner shall
prepare and maintain a written policy statement to assure
implementation of a program of equal employment opportunity under
which all personnel transactions are made without regard to race,
color, disability, sex, religion, age, or national origin. The
policy statement must include:
(1) personnel policies, including policies relating to
recruitment, evaluation, selection, appointment, training, and
promotion of personnel that comply with requirements of Chapter
21, Labor Code;
(2) a comprehensive analysis of the department workforce that
meets federal and state law, including rules and regulations, and
instructions adopted directly from that law;
(3) procedures by which a determination can be made about the
extent of underuse in the department workforce of all persons for
whom federal or state laws, including rules and regulations, and
instructions adopted directly from that law, encourage a more
equitable balance; and
(4) reasonable methods to appropriately address those areas of
underuse.
(b) A policy statement prepared under Subsection (a) must:
(1) cover an annual period;
(2) be updated annually and reviewed by the Commission on Human
Rights for compliance with Subsection (a)(1); and
(3) be filed with the governor's office.
(c) The governor's office shall deliver a biennial report to the
legislature based on the information received under Subsection
(b). The report may be made separately or as a part of other
biennial reports made to the legislature.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.13(a), eff. Sept.
1, 1999.
SUBCHAPTER E. POWERS AND DUTIES OF COMMISSION AND COMMISSIONER
Sec. 15.401. SUPERVISION OF COMMISSIONER. The commission shall
supervise, consult with, and advise the commissioner.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 15.4011. CREDIT UNION DEPARTMENT BUILDING. The commission
shall have charge and control of the property known as the Credit
Union Department Building and use of staff, equipment, and
facilities of the department. The Credit Union Department
Building refers to the property located in the city of Austin and
titled in the name of the State of Texas for the use and benefit
of the Credit Union Department, as described by deed recorded in
Volume 6126, Page 27, of the Deed Records of Travis County,
Texas.
Added by Acts 2009, 81st Leg., R.S., Ch.
1317, Sec. 28(f), eff. September 1, 2009.
Sec. 15.402. ADOPTION OF RULES. (a) The commission may adopt
reasonable rules necessary to administer this chapter and to
accomplish the purposes of Subtitle D, Title 3.
(b) In adopting rules under this section, the commission may
regulate and classify credit unions according to criteria that
the commission determines are appropriate and necessary to
accomplish the purposes of this chapter and Subtitle D, Title 3,
including the:
(1) character of field of membership;
(2) amount of assets;
(3) number of members; and
(4) financial condition.
(b-1) In adopting rules under this section, the commission shall
consider the need to:
(1) promote a stable credit union environment;
(2) provide credit union members with convenient, safe, and
competitive services;
(3) preserve and promote the competitive parity of credit unions
with regard to other depository institutions consistent with the
safety and soundness of credit unions; and
(4) promote or encourage economic development in this state.
(c) The commission by rule shall establish reasonable and
necessary fees for the administration of this chapter and
Subtitle D, Title 3.
(d) The presence or absence in this chapter or Subtitle D, Title
3, of a specific reference to rules regarding a particular
subject does not enlarge or diminish the rulemaking authority
provided by this section.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 157, Sec. 2, eff. Sept. 1,
1999; Acts 2003, 78th Leg., ch. 533, Sec. 1, eff. Sept. 1, 2003.
Sec. 15.4021. RECEIPT OF PUBLIC COMMENTS; NOTICE OF COMMISSION
ACTIVITIES. (a) The commission shall develop and implement
policies that provide the public with a reasonable opportunity to
appear before the commission and to speak on any issue under the
jurisdiction of the department.
(b) The commission shall adopt rules providing for public notice
of department activities.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.10(a), eff. Sept.
1, 1999.
Sec. 15.4022. RULES RELATING TO COMPETITIVE BIDDING AND
ADVERTISING. (a) The commission may not adopt rules restricting
competitive bidding or advertising by a credit union except to
prohibit false, misleading, or deceptive practices.
(b) In its rules to prohibit false, misleading, or deceptive
practices, the commission may not include a rule that:
(1) restricts the use of any medium for advertising;
(2) relates to the size or duration of an advertisement by the
credit union; or
(3) restricts the credit union's advertisement under a trade
name.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.10(a), eff. Sept.
1, 1999.
Sec. 15.4023. SEPARATION OF RESPONSIBILITIES. The commission
shall develop and implement policies that clearly separate the
policy-making responsibilities of the commission and the
management responsibilities of the commissioner and the staff of
the department.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.10(a), eff. Sept.
1, 1999.
Text of section as added by Acts 2009, 81st Leg., R.S., Ch.
1104, Sec. 3
For text of section as added by Acts 2009, 81st Leg., R.S., Ch.
695, Sec. 11, see other Sec. 15.4024.
Sec. 15.4024. RULES RELATING TO CERTAIN EMPLOYEES OF CREDIT
UNION SUBSIDIARY ORGANIZATIONS. (a) In this section, "credit
union subsidiary organization" has the meaning assigned by
Section 180.002.
(b) The commission may adopt and enforce rules necessary for the
commissioner to:
(1) examine, inspect, or investigate employees of credit union
subsidiary organizations who are licensed to act as residential
mortgage loan originators under Chapter 156; and
(2) enforce compliance by employees of credit union subsidiary
organizations described by Subdivision (1) with the applicable
requirements of Chapters 156 and 180.
Added by Acts 2009, 81st Leg., R.S., Ch.
1104, Sec. 3, eff. June 19, 2009.
Text of section as added by Acts 2009, 81st Leg., R.S., Ch.
695, Sec. 11
For text of section as added by Acts 2009, 81st Leg., R.S., Ch.
1104, Sec. 3, see other Sec. 15.4024.
Sec. 15.4024. NEGOTIATED RULEMAKING AND ALTERNATIVE DISPUTE
RESOLUTION POLICY. (a) The commission shall develop and
implement a policy to encourage the use of:
(1) negotiated rulemaking procedures under Chapter 2008,
Government Code, for the adoption of department rules; and
(2) appropriate alternative dispute resolution procedures under
Chapter 2009, Government Code, to assist in the resolution of
internal and external disputes under the department's
jurisdiction.
(b) The department's procedures relating to alternative dispute
resolution must conform, to the extent possible, to any model
guidelines issued by the State Office of Administrative Hearings
for the use of alternative dispute resolution by state agencies.
(c) The commission shall designate a trained person to:
(1) coordinate the implementation of the policy adopted under
Subsection (a);
(2) serve as a resource for any training needed to implement the
procedures for negotiated rulemaking or alternative dispute
resolution; and
(3) collect data concerning the effectiveness of those
procedures, as implemented by the department.
Added by Acts 2009, 81st Leg., R.S., Ch.
695, Sec. 11, eff. September 1, 2009.
Sec. 15.403. SUPERVISION AND REGULATION OF CREDIT UNIONS. The
commissioner shall supervise and regulate a credit union doing
business in this state, other than a federal credit union, in
accordance with this chapter and Subtitle D, Title 3, including
rules adopted under this chapter and Subtitle D, Title 3.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 2003, 78th Leg., ch. 533, Sec. 2, eff. Sept. 1,
2003.
Sec. 15.4031. CREDIT UNION COMMISSIONER HEARING. (a) The
commissioner may convene a hearing to receive evidence and
argument regarding any matter under this chapter or Subtitle D,
Title 3, before the commissioner for decision or review. The
hearing must be conducted under Chapter 2001, Government Code. A
matter made confidential by law must be considered by the
commissioner in a closed hearing.
(b) A hearing officer may conduct any hearing on behalf of the
commissioner.
Added by Acts 2003, 78th Leg., ch. 533, Sec. 3, eff. Sept. 1,
2003.
Sec. 15.4032. EXAMINATION OF RELATED ENTITIES. (a) In
accordance with rules adopted by the commission, the commissioner
may examine, to the same extent as if the services or activities
were performed by a credit union on its own premises:
(1) a credit union service organization in which a credit union
has a material interest;
(2) an organization engaged primarily in the business of
managing one or more credit unions; and
(3) a third-party contractor providing electronic data
processing, electronic fund transfers, or other member services
on behalf of a credit union.
(b) The commissioner may collect a fee from an examined
contractor or organization in connection with each examination to
cover the cost of the examination or may collect that fee from
the credit unions that use the examined contractor.
Added by Acts 2003, 78th Leg., ch. 533, Sec. 3, eff. Sept. 1,
2003.
Sec. 15.404. ADMINISTRATION AND ENFORCEMENT OF STATUTES AND
RULES. The commissioner shall administer and enforce this
chapter and Subtitle D, Title 3, and rules adopted under this
chapter and Subtitle D, Title 3.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 2003, 78th Leg., ch. 533, Sec. 4, eff. Sept. 1,
2003.
Sec. 15.4041. ISSUANCE OF INTERPRETIVE STATEMENTS. (a) The
commissioner may issue interpretive statements containing matters
of general policy to guide the public and credit unions, and may
amend or repeal a published interpretive statement by issuing an
amended statement or notice of repeal of a statement.
(b) An interpretive statement may be disseminated by newsletter,
through an electronic medium such as the Internet, in a volume of
statutes or related materials published by the commissioner or
others, or by any other means reasonably calculated to notify
persons affected by the interpretive statement. Notice of an
amended or withdrawn statement must be disseminated in a
substantially similar manner as the affected statement was
originally disseminated.
Added by Acts 2003, 78th Leg., ch. 533, Sec. 5, eff. Sept. 1,
2003.
Sec. 15.4042. ISSUANCE OF OPINION. (a) In response to a
specific request from a member of the public or the credit union
industry, the commissioner may issue an opinion directly or
through the deputy commissioner or a department attorney.
(b) If the commissioner determines that the opinion is useful
for the general guidance of the public or credit unions, the
commissioner may disseminate the opinion by newsletter, through
an electronic medium such as the Internet, in a volume of
statutes or related materials published by the commissioner or
others, or by any other means reasonably calculated to notify
persons affected by the opinion. A published opinion must be
redacted to preserve the confidentiality of the requesting party
unless the requesting party consents to be identified in the
published opinion.
(c) The commissioner may amend or repeal a published opinion by
issuing an amended opinion or notice of repeal of an opinion and
disseminating the opinion or notice in a substantially similar
manner as the affected opinion was originally disseminated. The
requesting party may rely on the original opinion if:
(1) all material facts were originally disclosed to the
commissioner;
(2) the safety and soundness of the affected credit union will
not be endangered by further reliance on the original opinion;
and
(3) the text and interpretation of relevant governing provisions
of this chapter or Subtitle D, Title 3, have not been changed by
legislative or judicial action.
Added by Acts 2003, 78th Leg., ch. 533, Sec. 5, eff. Sept. 1,
2003.
Sec. 15.4043. EFFECT OF INTERPRETIVE STATEMENT OR OPINION. An
interpretive statement or opinion issued under this subchapter
does not have the force of law and is not a rule for the purposes
of Chapter 2001, Government Code, unless adopted by the
commission as provided by Chapter 2001, Government Code. An
interpretive statement or opinion is an administrative
construction of this chapter or Subtitle D, Title 3, may be
relied on by credit unions authorized to engage in business in
this state, and is entitled to great weight if the construction
is reasonable and does not conflict with this chapter or Subtitle
D, Title 3.
Added by Acts 2003, 78th Leg., ch. 533, Sec. 5, eff. Sept. 1,
2003.
Sec. 15.4044. FEES. The department may charge a late fee
against a credit union for late payment of its operating fees.
Added by Acts 2009, 81st Leg., R.S., Ch.
695, Sec. 12, eff. September 1, 2009.
Sec. 15.405. LEGISLATIVE RECOMMENDATIONS. The commissioner
shall report the department's legislative recommendations to the
legislature for consideration.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 15.406. ATTENDANCE AT COMMISSION MEETINGS; VOTING. The
commissioner shall attend meetings of the commission but may not
vote at a meeting.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 15.407. OFFICIAL COMMITTEES. The chairman may appoint
individuals who are not commission members to serve on official
committees that are charged with evaluating industry methods or
problems and presenting formal recommendations to the commission
for possible action. The individuals appointed are entitled to
reimbursement for reasonable and necessary expenses incidental to
travel incurred in connection with the performance of official
duties.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 2001, 77th Leg., ch. 1158, Sec. 7, eff. Sept. 1,
2001.
Sec. 15.409. CONSUMER INFORMATION AND COMPLAINTS. (a) The
commissioner shall:
(1) supervise the preparation of public interest information
describing:
(A) functions of the department;
(B) procedures for filing and resolving complaints; and
(C) other matters of general interest relating to credit unions;
and
(2) make the information prepared under Subdivision (1)
available to the public and appropriate state agencies.
(b) The department shall maintain a system to promptly and
efficiently act on complaints filed with the department. The
department shall maintain information about parties to the
complaint, the subject matter of the complaint, a summary of the
results of the review or investigation of the complaint, and its
disposition.
(c) The department shall make information available describing
its procedures for complaint investigation and resolution.
(d) The department shall periodically notify the complaint
parties of the status of the complaint until final disposition.
(e) The commission by rule shall establish methods by which
consumers and service recipients are notified of the name,
mailing address, telephone number, and Internet website of the
department for the purpose of directing complaints to the
department. The commission shall provide for that notification:
(1) on the Internet website of a credit union regulated under
this chapter and Subtitle D, Title 3, if the credit union
maintains a website;
(2) on a sign prominently displayed in the place of business of
each credit union regulated under this chapter and Subtitle D,
Title 3; and
(3) in any newsletter distributed by a credit union regulated
under this chapter and Subtitle D, Title 3, if the credit union
distributes a newsletter.
(f) The commission by rule may establish other methods by which
credit unions that do not have an Internet website or do not
distribute a newsletter may make the information described by
Subsection (e) more readily available to credit unions' customers
and service recipients.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.11(c), eff. Sept.
1, 1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
695, Sec. 13, eff. September 1, 2009.
Sec. 15.4091. ACCESS TO DEPARTMENT FACILITIES, PROGRAMS, AND
SERVICES. (a) The department shall comply with federal and
state laws related to program and facility accessibility.
(b) The commissioner shall prepare and maintain a written plan
that describes how a person who does not speak English can be
provided reasonable access to the department's programs and
services.
Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.11(d), eff. Sept.
1, 1999.
Sec. 15.410. SHARE AND DEPOSITOR INSURANCE PROTECTION. (a) The
commission shall adopt, and the commissioner shall enforce,
reasonable rules requiring a credit union to provide share and
deposit insurance protection for credit union members and
depositors.
(b) Rules adopted under this section must include authorization
for and establishment of a share and deposit guaranty corporation
or credit union under the department's exclusive regulation to
enable the department to carry out the purposes of this chapter
and Subtitle D, Title 3.
(c) A credit union may provide share and deposit insurance
protection through another source approved by the department,
including a program of the National Credit Union Administration.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 15.4105. ANNUAL REPORT TO MEMBERS. (a) The commission
shall adopt, and the commissioner shall enforce, reasonable rules
requiring a credit union regulated under this chapter and
Subtitle 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 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
union's:
(A) management;
(B) bylaws;
(C) articles of incorporation;
(D) financial condition;
(E) membership size; and
(F) services offered; and
(5) contain any other information the commission considers
necessary to ensure that credit union members are 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:
(1) updates the report before the credit union's 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.
Added by Acts 2009, 81st Leg., R.S., Ch.
695, Sec. 14, eff. September 1, 2009.
Sec. 15.411. AGREEMENTS WITH OTHER REGULATORS. (a) The
commissioner may enter into an agreement with any credit union
supervisory agency regarding the examination or supervision of
branch offices of credit unions chartered in this state doing
business in other states and foreign credit unions doing business
in this state. In lieu of conducting an examination or
investigation required by this subtitle, the commissioner may
accept examinations or reports from other credit union
supervisory agencies. The acceptance of the examination or report
does not waive any fee, charge, or revenue required to be paid by
a credit union, including a foreign credit union doing business
in this state.
(b) The commissioner may enter into any cooperative arrangement
with other credit union supervisory agencies to promote the
effective regulation of state credit unions doing business across
state lines, including contracting to use another agency's
examiners, allowing for the use of examiners of this state by
another agency, or collecting fees on behalf of or receiving
payments through another agency.
Added by Acts 1999, 76th Leg., ch. 157, Sec. 4, eff. Sept. 1,
1999.
Sec. 15.412. FILING GROUP RETURN WITH THE INTERNAL REVENUE
SERVICE. (a) The commissioner may file a consolidated group
return form with the Internal Revenue Service on behalf of all
credit unions under the department's jurisdiction. To be
included, each credit union must annually authorize the
department in writing to include the credit union in the group
return and must declare that the authorization and the financial
information submitted for the purpose of compiling the group
return are true and complete.
(b) The state is not liable for information contained in any
form submitted. Each credit union is individually responsible for
the accuracy, completeness, and timeliness of the information and
for any potential tax liability or penalties that may accrue.
Added by Acts 1999, 76th Leg., ch. 157, Sec. 4, eff. Sept. 1,
1999.
Sec. 15.413. INTERPRETATION OF HOME EQUITY LENDING LAW. The
commission may, on request of an interested person or on its own
motion, issue interpretations of Sections 50(a)(5)-(7), (e)-(p),
(t), and (u), Article XVI, Texas Constitution. An interpretation
under this section is subject to Chapter 2001, Government Code,
and is applicable to lenders regulated by the commission. The
Finance Commission of Texas and the commission shall attempt to
adopt interpretations that are as consistent as feasible or shall
state justification for any inconsistency.
Acts 2003, 78th Leg., ch. 1207, Sec. 2, eff. Sept. 13, 2003.
Sec. 15.414. AUTHORITY TO CONTRACT FOR PROFESSIONAL OR PERSONAL
SERVICES. For the purpose of carrying out the powers, duties,
and responsibilities of the department, the commissioner may
negotiate, contract, or enter into an agreement for professional
or personal services. The commission by rule shall adopt policies
and procedures consistent with applicable state procurement
practices for soliciting and awarding contracts under this
section.
Added by Acts 2003, 78th Leg., ch. 533, Sec. 5, eff. Sept. 1,
2003.
Sec. 15.415. GIFTS OF MONEY OR PROPERTY. The department may
accept money or property by gift, bequest, devise, or otherwise
for any department purpose authorized by this chapter and
Subtitle D, Title 3. A gift, bequest, or devise shall be used for
the purposes specified by the grantor. The commission must
approve acceptance and use of any gift, bequest, or devise under
this section.
Added by Acts 2003, 78th Leg., ch. 533, Sec. 5, eff. Sept. 1,
2003.
Renumbered from Finance Code, Section 15.413 by Acts 2005, 79th
Leg., Ch.
728, Sec. 23.001(26), eff. September 1, 2005.
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.
Added by Acts 2009, 81st Leg., R.S., Ch.
695, Sec. 15, eff. September 1, 2009.
SUBCHAPTER F. RULES REGARDING USE OF ADVISORY COMMITTEES
Sec. 15.501. RULEMAKING AUTHORITY. (a) The commission 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:
(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.
Added by Acts 2009, 81st Leg., R.S., Ch.
695, Sec. 16, eff. September 1, 2009.
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.
Added by Acts 2009, 81st Leg., R.S., Ch.
695, Sec. 16, eff. September 1, 2009.
Sec. 15.503. COMPLIANCE WITH OPEN MEETINGS ACT.A commission
advisory committee must comply with Chapter 551, Government Code.
Added by Acts 2009, 81st Leg., R.S., Ch.
695, Sec. 16, eff. September 1, 2009.