Bill Text: TX SB707 | 2021-2022 | 87th Legislature | Enrolled

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Bill Title: Relating to the continuation and functions of the Credit Union Department and the Credit Union Commission.

Spectrum: Moderate Partisan Bill (Republican 7-2)

Status: (Passed) 2021-06-04 - Effective on 9/1/21 [SB707 Detail]

Download: Texas-2021-SB707-Enrolled.html

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S.B. No. 707

AN ACT
relating to the continuation and functions of the Credit Union
Department and the Credit Union Commission.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 15, Finance Code, is
amended by adding Section 15.104 to read as follows:
Sec. 15.104. NOTIFICATION AND GUIDANCE ON ADOPTION OF
CERTAIN FEDERAL LAWS OR REGULATIONS. The department shall promptly
notify and issue guidance to all credit unions chartered in this
state on the adoption of a federal law or regulation that:
(1) affects a power or authority conferred to credit
unions under Section 123.003(a);
(2) takes effect immediately; and
(3) conflicts with state law.
SECTION 2. Section 15.2041, Finance Code, is amended by
amending Subsection (b) and adding Subsection (d) to read as
follows:
(b) The training program must provide the person with
information regarding:
(1) the law governing department operations
[legislation that created the department];
(2) the programs, functions, rules, and budget of the
department;
(3) the scope of and limitations on the rulemaking
authority of the commission;
(4) the results of the most recent formal audit of the
department;
(5) [(4)] the requirements of:
(A) laws relating to open meetings, public
information, administrative procedure, and disclosing conflicts of
interest; and
(B) other laws applicable to members of a state
policy-making body in performing their duties; and
(6) [(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].
(d) The commissioner shall create a training manual that
includes the information required by Subsection (b). The
commissioner shall distribute a copy of the training manual
annually to each commission member. Each commission member shall
sign and submit to the commissioner a statement acknowledging that
the commission member received and has reviewed the training
manual.
SECTION 3. Section 15.212, Finance Code, is amended to read
as follows:
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, 2033 [2021].
SECTION 4. Sections 15.409(b), (c), and (d), Finance Code,
are redesignated as Section 15.408, Finance Code, and amended to
read as follows:
Sec. 15.408. CONSUMER COMPLAINTS. (a) [(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.
(b) [(c)] The department shall make information available
describing its procedures for complaint investigation and
resolution.
(c) [(d)] The department shall periodically notify the
complaint parties [person filing the complaint and each person who
is the subject of the complaint] of the status of the complaint
until final disposition unless the notice would jeopardize an
investigation.
SECTION 5. Subchapter E, Chapter 15, Finance Code, is
amended by adding Section 15.4081 to read as follows:
Sec. 15.4081. COMPLAINT TRACKING; ANNUAL STATISTICAL
ANALYSIS. (a) To help identify and address regulatory issues and
constraints, the department shall track all phases of the complaint
and enforcement processes, including the receipt, investigation,
and disposition of complaints. The department shall maintain the
following information for each complaint:
(1) the basis for the complaint;
(2) the origin of the complaint, including whether the
complaint was issued from:
(A) another regulatory agency;
(B) a credit union member;
(C) a credit union employee;
(D) a member of the public; or
(E) a public or private entity;
(3) the number of days taken to resolve the complaint
from the date the complaint was received; and
(4) the disposition of the complaint, including:
(A) if no disciplinary action was taken, the
reasons no disciplinary action was taken;
(B) if disciplinary action was taken, the type of
disciplinary action taken, including the amount of any
administrative penalty or late fee;
(C) if dismissed or referred to another agency,
the details regarding dismissal or referral; and
(D) if ongoing, the current status of the
complaint.
(b) The department shall annually compile a statistical
analysis of the department's complaint and enforcement processes
for the preceding fiscal year. The analysis must include:
(1) the total number of complaints filed with the
department against credit unions;
(2) the number of open investigations at the end of the
fiscal year;
(3) the number of complaints that were resolved,
disaggregated by:
(A) the source of the complaint;
(B) the type of alleged violation;
(C) jurisdictional and non-jurisdictional
complaints;
(D) regulatory and nonregulatory complaints; and
(E) the disposition and type of action taken,
including any administrative penalty or late fee assessed; and
(4) the average number of days taken to resolve a
complaint, including complaints that were resolved through an
examination of a credit union.
SECTION 6. The heading to Section 15.409, Finance Code, is
amended to read as follows:
Sec. 15.409. CONSUMER INFORMATION [AND COMPLAINTS].
SECTION 7. Section 122.001(d), Finance Code, is repealed.
SECTION 8. The repeal of Section 122.001(d), Finance Code,
by this Act applies only to articles of incorporation filed on or
after the effective date of this Act. Articles of incorporation
filed before the effective date of this Act are governed by the law
in effect on the date the articles were filed, and the former law is
continued in effect for that purpose.
SECTION 9. (a) Except as provided by Subsection (b) of this
section, Section 15.2041, Finance Code, as amended by this Act,
applies to a member of the Credit Union Commission appointed
before, on, or after the effective date of this Act.
(b) A member of the Credit Union Commission who, before the
effective date of this Act, completed the training program required
by Section 15.2041, Finance Code, as that law existed before the
effective date of this Act, is only required to complete additional
training on the subjects added by this Act to the training program
required by Section 15.2041, Finance Code. A commission member
described by this subsection may not vote, deliberate, or be
counted as a member in attendance at a meeting of the commission
held on or after December 1, 2021, until the member completes the
additional training.
SECTION 10. This Act takes effect September 1, 2021.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 707 passed the Senate on
April 19, 2021, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 707 passed the House on
May 19, 2021, by the following vote: Yeas 136, Nays 9, one
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor