CHAPTER 15. CREDIT UNION COMMISSION AND DEPARTMENT - Texas Statutes

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.