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§ 11.001. DEFINITIONS. (a) The definitions provided by Section 31.002 apply to this chapter.
(b) In this chapter, "finance agency" means: (1) the Texas Department of Banking; (2) the Savings and Loan Department; or (3) the Office of Consumer Credit Commissioner.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 867, § 1, eff. Sept. 1, 2001.
§ 11.002. PURPOSE OF COMMISSION; STRATEGIC PLAN. (a) The finance commission is responsible for overseeing and coordinating the Texas Department of Banking, the Savings and Loan Department, and the Office of Consumer Credit Commissioner and serves as the primary point of accountability for ensuring that state depository and lending institutions function as a system, considering the broad scope of the financial services industry. The finance commission is the policy-making body for those finance agencies and is not a separate state agency. The finance commission shall carry out its functions in a manner that protects consumer interests, maintains a safe and sound banking system, and increases the economic prosperity of the state.
(b) The finance commission shall prepare and periodically update a strategic plan for coordination of the state financial system. Each finance agency shall cooperate in preparation of the plan.
Added by Acts 2001, 77th Leg., ch. 867, § 2, eff. Sept. 1, 2001.
SUBCHAPTER B. COMPOSITION AND OPERATION
§ 11.101. APPOINTMENT; TERMS; OATH. (a) The Finance Commission of Texas is composed of nine members appointed by the governor with the advice and consent of the senate.
(b) Members of the finance commission serve staggered terms of six years with the terms of one-third of the members expiring February 1 of each even-numbered year.
(c) An appointment to the finance commission must be made without regard to the race, color, age, sex, religion, disability, or national origin of the appointee.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 11.102. QUALIFICATIONS OF MEMBERS. (a) A member of the finance commission must be a registered voter of this state. Not more than two members may be residents of the same state senatorial district.
(b) One member of the finance commission must be a banking executive, one member of the finance commission must be a savings executive, one member of the finance commission must be a consumer credit executive, and one member of the finance commission must be a mortgage broker.
(c) Five members of the finance commission must be representatives of the general public. At least one of those members must be a certified public accountant.
(d) A person may not be a public member of the finance commission if the person or the person's spouse:
(1) is registered, certified, or licensed by a regulatory agency in an industry regulated by a finance agency;
(2) is employed by or participates in the management of a business entity or other organization regulated by or receiving money from a finance agency;
(3) owns or controls, directly or indirectly, more than a 10 percent interest in a business entity or other organization regulated by or receiving money from a finance agency; or
(4) uses or receives a substantial amount of tangible goods, services, or money from a finance agency other than compensation or reimbursement authorized by law for finance commission membership, attendance, or expenses.
(e) For the purposes of this section: (1) "Banking executive" means a person who: (A) has had five years' or more executive experience in a bank during the seven-year period preceding the person's appointment; and
(B) is an officer of a state bank. (2) "Savings executive" means a person who: (A) has had five years' or more executive experience in a savings association or savings bank during the seven-year period preceding the person's appointment; and
(B) is an officer of a state savings association or savings bank. (3) "Consumer credit executive" means a person who: (A) has had five years' or more executive experience in an entity regulated by the consumer credit commissioner during the seven-year period preceding the person's appointment; and
(B) is an officer of an entity regulated by the consumer credit commissioner.
(4) "Mortgage broker" means a person who: (A) has had five years' or more experience as a mortgage broker, as defined by Section 156.002, during the seven-year period preceding the person's appointment; and
(B) is a mortgage broker, as defined by Section 156.002. (f) Experience as banking commissioner, deputy banking commissioner, examiner, or supervisor of examiners for a state or federal banking regulatory agency is considered executive experience in a bank for the purposes of Subsection (e)(1)(A). Experience as savings and loan commissioner, deputy savings and loan commissioner, examiner, or supervisor of examiners for a state or federal savings and loan regulatory agency is considered executive experience in a savings association or savings bank for the purposes of Subsection (e)(2)(A).
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 867, § 3, eff. Sept. 1, 2001.
§ 11.1021. CONFLICT OF INTEREST. (a) In this section, "Texas trade association" means a cooperative and voluntarily joined 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) A person may not be a member of the finance commission if: (1) the person is an officer, employee, or paid consultant of a Texas trade association in an industry regulated by a finance agency; or
(2) the person's spouse is an officer, manager, or paid consultant of a Texas trade association in an industry regulated by a finance agency.
(c) A person may not be a member of the finance 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 a finance agency.
Added by Acts 2001, 77th Leg., ch. 867, § 4, eff. Sept. 1, 2001.
§ 11.103. REMOVAL OF MEMBERS. (a) It is a ground for removal from the finance commission that a member:
(1) does not have at the time of taking office the qualifications required by Section 11.102;
(2) does not maintain during service on the finance commission the qualifications required by Section 11.102;
(3) is ineligible for membership under Section 11.102 or 11.1021; (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 finance commission meetings that the member is eligible to attend during a calendar year without an excuse approved by a majority vote of the finance commission. (b) If the banking commissioner, savings and loan commissioner, or consumer credit commissioner has knowledge that a potential ground for removal exists, the banking commissioner, savings and loan commissioner, or consumer credit commissioner shall notify the presiding officer of the finance 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 banking commissioner, savings and loan commissioner, or consumer credit commissioner shall notify the next highest ranking officer of the finance commission, who shall then notify the governor and the attorney general that a potential ground for removal exists.
(c) The validity of an action of the finance commission is not affected by the fact that it was taken when a ground for removal of a member of the finance commission existed.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 867, § 5, eff. Sept. 1, 2001.
§ 11.104. EXPENSES AND COMPENSATION OF MEMBERS. A member of the finance commission is entitled to:
(1) the reimbursement for reasonable and necessary expenses incidental to travel incurred in connection with the performance of official duties; and
(2) a per diem as set by legislative appropriation for each day that the member engages in the business of the finance commission.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 11.105. MATTER IN WHICH MEMBER HAS PERSONAL INTEREST. A member of the finance commission may not act or participate in the portion of a commission meeting during which the matter considered specifically relates to an entity:
(1) of which the member or the member's spouse is an officer, director, stockholder, shareholder, manager, participant, participant-transferee, or owner; or
(2) in which the member or the member's spouse has another financial interest.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 11.106. MEETINGS. (a) The finance commission shall hold at least six regular public meetings during each calendar year on dates set by the commission.
(b) The presiding officer or three members of the finance commission may call a special public meeting of the commission.
(c) The finance commission may hold an open or closed special meeting by telephone conference call if:
(1) immediate action is required; (2) the convening at one location of a quorum of the finance commission is difficult or impossible;
(3) notice is given for the meeting as for other meetings; (4) the notice specifies a location for the meeting at which the public may attend;
(5) each part of the meeting that is required to be open to the public is audible to the public at the location specified in the notice of the meeting; and
(6) the meeting is tape-recorded and the tape recording of each portion of the meeting that is required to be open to the public is made available to the public.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 11.107. PRESIDING OFFICER. (a) The governor shall appoint a member of the finance commission as presiding officer of the commission. The presiding officer serves at the will of the governor.
(b) The presiding officer shall preside at and provide for the keeping of minutes of each public meeting of the finance commission.
(c) The presiding officer may: (1) adopt rules and procedures as the presiding officer considers necessary for the orderly operation of the finance commission and for communication among the finance commission, the department, the Savings and Loan Department, and the Office of Consumer Credit Commissioner;
(2) adopt internal procedures governing the time and place of meetings, the type of notice for special public meetings, the manner in which public meetings are to be conducted, and other similar matters; and
(3) appoint committees composed of finance commission members as the presiding officer considers necessary to carry out the commission's business.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 11.108. SUNSET PROVISION. The finance commission is subject to Chapter 325, Government Code (Texas Sunset Act). Unless continued in existence as provided by that chapter, the commission is abolished September 1, 2013.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 867, § 6, eff. Sept. 1, 2001.
§ 11.109. STANDARDS OF CONDUCT. The presiding officer of the finance commission or the presiding officer's designee shall provide to members of the finance commission, as often as necessary, information regarding the requirements for office under this title, including information regarding a person's responsibilities under applicable laws relating to standards of conduct for state officers.
Added by Acts 2001, 77th Leg., ch. 867, § 7, eff. Sept. 1, 2001.
§ 11.110. TRAINING. (a) A person who is appointed to and qualifies for office as a member of the finance commission may not vote, deliberate, or be counted as a member in attendance at a meeting of the finance 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 finance agencies and the finance commission;
(2) the programs operated by the finance agencies; (3) the role and functions of the finance agencies; (4) the rules of the finance commission with an emphasis on the rules that relate to disciplinary and investigatory authority;
(5) the current budget for the finance agencies; (6) the results of the most recent formal audit of the finance agencies; (7) the requirements of: (A) the open meetings law, Chapter 551, Government Code; (B) the public information law, Chapter 552, Government Code; (C) the administrative procedure law, Chapter 2001, Government Code; and (D) other laws relating to public officials, including conflict-of-interest laws; and
(8) any applicable ethics policies adopted by the finance commission or the Texas Ethics Commission.
(c) A person appointed to the finance commission is entitled to reimbursement, as provided by the General Appropriations Act, for the 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 2001, 77th Leg., ch. 867, § 7, eff. Sept. 1, 2001.
§ 11.111. SEPARATION OF FUNCTIONS. The finance commission shall develop and implement policies that clearly separate the policymaking responsibilities of the finance commission and the management responsibilities of the banking commissioner, savings and loan commissioner, and consumer credit commissioner and staff of the finance agencies.
Added by Acts 2001, 77th Leg., ch. 867, § 7, eff. Sept. 1, 2001.
§ 11.112. PUBLIC TESTIMONY. The finance commission shall develop and implement policies that provide the public with a reasonable opportunity to appear before the finance commission and to speak on any issue under the jurisdiction of the finance agencies.
Added by Acts 2001, 77th Leg., ch. 867, § 7, eff. Sept. 1, 2001.
SUBCHAPTER C. STAFF AND EXPENSES
§ 11.202. HEARINGS OFFICER AND AUDITOR. (a) The finance commission shall direct a finance agency to employ an internal auditor to provide services to and facilitate commission oversight and control over the finance agencies.
(b) The Texas Department of Banking may employ a hearings officer to serve the finance agencies as determined by interagency agreement. For the purposes of Section 2003.021, Government Code, a hearings officer employed under this section is considered to be an employee of each agency for which hearing services are provided. The hearings officer's only duty is to preside over matters related to contested cases before a finance agency or the finance commission.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 867, § 8, eff. Sept. 1, 2001.
§ 11.203. LIMITATION ON DIRECTION OF AUDITOR. The internal auditor reports to the finance commission and is not subject to direction by the employing finance agency.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 867, § 9, eff. Sept. 1, 2001.
§ 11.204. SHARING OF STAFF, EQUIPMENT, AND FACILITIES; ALLOCATION OF COSTS. (a) The finance commission shall use the staff, equipment, and facilities of the finance agencies to the extent necessary to carry out the finance commission's duties. To reduce administrative costs, the finance agencies shall share staff, equipment, and facilities to the extent that the sharing contributes to cost efficiency without detracting from the staff expertise needed for individual areas of agency responsibility.
(b) An interagency agreement must provide that the cost of staff used by the finance commission, including the internal auditor, is to be charged to the finance agencies in proportion to the amount of time devoted to each agency's business. All other costs of operation of the finance commission are to be shared by and included in the budgets of the finance agencies in proportion to the amount of cash receipts of each of those agencies.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 867, § 10, eff. Sept. 1, 2001.
SUBCHAPTER D. POWERS AND DUTIES
§ 11.301. BANKING RULES. The finance commission may adopt banking rules as provided by Section 31.003.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 11.302. SAVINGS ASSOCIATION AND SAVINGS BANK RULES. (a) The finance commission may adopt rules applicable to state savings associations or to savings banks and may authorize state savings associations and savings banks to invest money of state savings associations or savings banks in any manner permitted for a federal savings association or federal savings bank domiciled in this state. This subsection does not authorize the finance commission to diminish or limit a right or power specifically given to state savings associations or savings banks by state law.
(b) The finance commission may adopt rules to: (1) prevent state savings associations or savings banks from concentrating an excessive or unreasonable portion of the resources of state savings associations or savings banks in a type or character of loan or security authorized by Subtitle B or C, Title 3; and
(2) establish standards for investments by state savings associations or savings banks, including limits on the amount that a state savings association or savings bank may invest in a type or character of investment to an amount or percentage of the savings association's or savings bank's assets or net worth.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 11.303. DISCLOSURE OF CERTAIN INFORMATION TO FINANCE COMMISSION PROHIBITED. Information regarding the financial condition of a state savings association or savings bank obtained through examination or otherwise may not be disclosed to a member of the finance commission, except that the savings and loan commissioner may disclose to the finance commission a file or record pertinent to a hearing or matter pending before the commission.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 11.304. CONSUMER CREDIT RULES. The finance commission may adopt rules necessary to supervise the consumer credit commissioner and ensure compliance with Chapter 14 and Title 4.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 11.305. RESEARCH. (a) The finance commission shall instruct the consumer credit commissioner to establish a program to address alternatives to high-cost lending in this state. The program shall:
(1) study and report on the problem of high-cost lending, including without limitation the availability, quality, and prices of financial services, including lending and depository services, offered in this state to agricultural businesses, small businesses, and individual consumers in this state;
(2) evaluate alternatives to high-cost lending and the practices of business entities in this state that provide financial services to agricultural businesses, small businesses, and individual consumers in this state;
(3) develop models to provide lower-cost alternatives to assist borrowers who contract for high-cost loans; and
(4) track the location of lenders who enter into loan contracts providing for an interest charge authorized by Section 342.201, map the location of the lenders by senatorial district and by any other appropriate areas, provide other demographic information relating to the loans and the location of the lenders, and provide information on the changes in the distribution of the lenders from 1997 through the date of the report.
(b) The program may: (1) apply for and receive public and private grants and gifts to conduct the research authorized by this section;
(2) contract with public and private entities to carry out studies and analyses under this section;
(3) provide funding for pilot programs; and (4) make grants to nonprofit institutions working to provide alternatives to high-cost loans.
(c) Not later than December 1 of each year, the consumer credit commissioner shall provide to the legislature a report detailing its findings and making recommendations to improve the availability, quality, and prices of financial services.
(d) The Texas Department of Banking and the Savings and Loan Department shall jointly conduct a continuing review of the condition of the state banking system. The review must include a review of all available national and state economic forecasts and an analysis of changing banking practices and new banking legislation. Periodically the departments shall submit a report to the finance commission on the results of the review, including information relating to the condition of the state banking system at the time of the report and the predicted condition of that system in the future.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 867, § 11, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 916, § 7, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 211, § 2.03(c), eff. June 16, 2003.
§ 11.3055. FINANCIAL SERVICES STUDY. (a) The finance commission may assign the banking commissioner, savings and loan commissioner, or consumer credit commissioner to conduct research on:
(1) the availability, quality, and prices of financial services, including lending and depository services, offered in this state to agricultural businesses, small businesses, and individual consumers in this state; and
(2) the practices of business entities in this state that provide financial services to agricultural businesses, small businesses, and individual consumers in this state.
(b) The banking commissioner, savings and loan commissioner, or consumer credit commissioner may:
(1) apply for and receive public and private grants and gifts to conduct the research authorized by this section; and
(2) contract with public and private entities to carry out studies and analyses under this section.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 867, § 11, eff. Sept. 1, 2001. Renumbered from V.T.C.A., Finance Code § 11.305(a), (b) and amended by Acts 2003, 78th Leg., ch. 211, § 2.03(c), eff. June 16, 2003.
§ 11.306. MORTGAGE BROKER RULES. The finance commission may adopt mortgage broker rules as provided by Chapter 156.
Added by Acts 1999, 76th Leg., ch. 1254, § 1, eff. Sept. 1, 1999. Amended by Acts 2001, 77th Leg., ch. 867, § 12, eff. Sept. 1, 2001.
§ 11.307. RULES RELATING TO CONSUMER COMPLAINTS. (a) The finance commission shall adopt rules applicable to each entity regulated by the Texas Department of Banking or the Savings and Loan Department specifying the manner in which the entity provides consumers with information on how to file complaints with the appropriate agency.
(b) The finance commission shall adopt rules applicable to each entity regulated by a finance agency requiring the entity to include information on how to file complaints with the appropriate agency in each privacy notice that the entity is required to provide consumers under law, including Pub. L. No. 106-102.
Added by Acts 2001, 77th Leg., ch. 867, § 13, eff. Sept. 1, 2001.
§ 11.308. INTERPRETATION OF HOME EQUITY LENDING LAW. The finance 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 all lenders authorized to make extensions of credit under Section 50(a)(6), Article XVI, Texas Constitution, except lenders regulated by the Credit Union Commission. The finance commission and the Credit Union Commission shall attempt to adopt interpretations that are as consistent as feasible or shall state justification for any inconsistency.
Added by Acts 2003, 78th Leg., ch. 1207, § 1, eff. Sept. 13, 2003. § 12.001. DEFINITIONS. The definitions provided by Section 31.002 apply to this chapter.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
SUBCHAPTER B. OPERATION OF DEPARTMENT
§ 12.101. BANKING COMMISSIONER. (a) The banking commissioner is the chief executive officer of the Texas Department of Banking. The finance commission, by at least five affirmative votes, shall appoint the banking commissioner. The banking commissioner serves at the will of the finance commission and is subject to the finance commission's orders and directions.
(b) The banking commissioner must have not less than seven years' experience in banking or bank supervision.
(c) The finance commission shall set the compensation of the banking commissioner. The compensation shall be paid from money of the department.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 867, § 14, eff. Sept. 1, 2001.
§ 12.102. DEPUTY BANKING COMMISSIONERS. (a) The banking commissioner shall appoint one or more deputy banking commissioners as necessary to the efficient operation of the department. The banking commissioner shall prescribe the qualifications and duties of a deputy banking commissioner.
(b) During the banking commissioner's absence or inability to serve, a deputy banking commissioner has the powers and shall perform the duties of the banking commissioner.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 412, § 1.01, eff. Sept. 1, 2001.
§ 12.103. COMPENSATION OF EMPLOYEES OF DEPARTMENT. (a) Chapter 654, Government Code, applies to a department position only if the position is classified in salary groups 1-10 under the General Appropriations Act.
(b) The legislature in the General Appropriations Act may determine the total amount appropriated to the department but may not determine the number or salaries of employees of the department other than positions subject to Chapter 654, Government Code.
(c) The finance commission, subject to the limits provided by this section, shall otherwise determine the number of employees of the department and the salaries of those employees.
(d) The department may use money appropriated to it for any purpose to pay the salaries determined by the finance commission.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 12.104. OATH OF OFFICE. Before assuming the duties of office, each deputy banking commissioner, examiner, assistant examiner, conservator, supervisor, and special agent, and each other officer or employee specified by the banking commissioner, must take an oath of office to:
(1) discharge faithfully the duties assigned; and (2) uphold the constitution and laws of this state and of the United States.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 412, § 1.02, eff. Sept. 1, 2001.
§ 12.105. FEES, REVENUE, AND EXPENSES; AUDIT. (a) The finance commission shall establish reasonable and necessary fees for the administration of this chapter, Chapter 11, Chapter 13, and Subtitle A, Title 3.
(b) The costs of an audit of the department under Chapter 321, Government Code, shall be paid to the state auditor from the money of the department.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 12.106. LIABILITY. (a) The banking commissioner, a member of the finance commission, a deputy banking commissioner, an examiner, assistant examiner, supervisor, conservator, agent, or other officer or employee of the department, or an agent of the banking commissioner is not personally liable for damages arising from the person's official act or omission unless the act or omission is corrupt or malicious.
(b) The attorney general shall defend an action brought against a person because of an official act or omission under Subsection (a) regardless of whether the defendant has terminated service with the department before the action commences.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 412, § 1.03, eff. Sept. 1, 2001.
§ 12.107. CONFLICT OF INTEREST. (a) In this section, "Texas trade association" means a cooperative and voluntarily joined association of business or professional competitors in this state that:
(1) is primarily designed to assist its members and its industry or profession in dealing with mutual business or professional problems and in promoting their common interest; and
(2) includes business and professional competitors located in this state among its members.
(b) A person may not be a department employee if: (1) the person is an officer, employee, or paid consultant of a Texas trade association in an industry regulated by the department; or
(2) the person's spouse is an officer, manager, or paid consultant of a Texas trade association in an industry regulated by the department.
(c) A person may not act as the general counsel to 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.
(d) A department employee may not: (1) purchase an asset owned by a person regulated by the department in the possession of the banking commissioner or other receiver for purposes of liquidation, unless the asset is purchased at public auction or with the approval of the receivership court;
(2) except as provided by Subsection (e), become directly or indirectly indebted to a person regulated by the department;
(3) except as provided by Subsection (f), become directly or indirectly financially interested in a person regulated by the department; or
(4) obtain a product or service from a person regulated by the department, or an affiliate of a person regulated by the department, on terms or rates that are more favorable to the employee than those prevailing at the time for comparable transactions with or involving other similarly situated consumers.
(e) Subject to Subsection (d)(4) and except as otherwise provided by employment policies adopted by the banking commissioner, Subsection (d)(2) does not prohibit indebtedness of:
(1) a clerical or administrative employee to a person regulated by the department, if the employee does not exercise discretionary decision-making authority with respect to the person; or
(2) an employee of the department, other than a clerical or administrative employee, if the indebtedness was permissible when incurred and became prohibited indebtedness under Subsection (d)(2) as a result of employment by the department or a circumstance over which the employee has no control, including a merger, acquisition, purchase or sale of assets, or assumption of liabilities involving a regulated person, if the employee:
(A) repays the indebtedness; or (B) does not knowingly participate in or consider any matter concerning the person to whom the employee is indebted.
(f) Except as otherwise provided by employment policies adopted by the banking commissioner, Subsection (d)(3) does not prohibit a financial interest of an employee of the department solely because:
(1) the employee owns publicly traded shares of a registered investment company (mutual fund) that owns publicly traded equity securities issued by a person regulated by the department; or
(2) the spouse of or other person related to the employee is employed by a person regulated by the department and receives equity securities of the person through participation in an employee benefit plan, including an employee stock option, bonus, or ownership plan, if:
(A) the sole purpose of the plan is to compensate employees with an ownership interest in the person for services rendered; and
(B) the employee does not knowingly participate in or consider any matter concerning the person until the spouse or other related person no longer owns equity securities issued by the person.
(g) The banking commissioner may adopt employment policies relating to this section, including policies to:
(1) require employees to notify the department of possible conflicts of interest;
(2) specify the manner or extent of required recusal; (3) define the circumstances under which adverse employment action may be taken; and
(4) impose more restrictive requirements on senior officers of the department for whom recusal is not viable or consistent with the prudent exercise of the department's responsibilities.
(h) The finance commission may adopt rules to administer this section, including rules to:
(1) codify employment policies of the banking commissioner adopted under Subsection (g);
(2) define or further define terms used by this section; and (3) establish limits, requirements, or exemptions other than those specified by this section, except that an exempted employee must be recused from participation in or consideration of all regulatory matters specifically concerning the person to whom the exempted indebtedness is owed or the financial interest relates.
(i) Before the 11th day after the date on which an employee begins employment with the department, the employee shall read the conflict-of-interest statutes, rules, and policies applicable to employees of the department and sign a notarized affidavit stating that the employee has read those statutes, rules, and policies.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 699, § 1, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 412, § 1.04, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 1276, § 8.001, eff. Sept. 1, 2003.
§ 12.108. CONSUMER INFORMATION AND COMPLAINTS. (a) The banking commissioner shall:
(1) prepare information of consumer interest describing: (A) the regulatory functions of the department; and (B) the department's procedures by which consumer complaints are filed with and resolved by the department; and
(2) make the information available to the public and appropriate state agencies.
(b) The department shall maintain a file on each written complaint filed with the department. The file must include:
(1) the name of the person who filed the complaint; (2) the date the complaint is received by the department; (3) the subject matter of the complaint; (4) the name of each person contacted in relation to the complaint; (5) a summary of the results of the review or investigation of the complaint; and
(6) an explanation of the reason the file was closed. (c) The department shall provide to the person filing the complaint and to each person who is a subject of the complaint a written summary of the department's policies and procedures relating to complaint investigation and resolution .
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 699, § 2, eff. Sept. 1, 2001.
§ 12.109. SUNSET PROVISION. The office of banking commissioner is subject to Chapter 325, Government Code (Texas Sunset Act). Unless continued in existence as provided by that chapter, the office is abolished September 1, 2013.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 699, § 3, eff. Sept. 1, 2001.
§ 12.111. STANDARDS OF CONDUCT. The banking commissioner or the banking commissioner's designee shall provide to agency employees, as often as necessary, information regarding the requirements for office or employment under this chapter, including information regarding a person's responsibilities under applicable laws relating to standards of conduct for state officers or employees.
Added by Acts 2001, 77th Leg., ch. 699, § 4, eff. Sept. 1, 2001.
§ 12.112. EQUAL EMPLOYMENT OPPORTUNITY POLICY. (a) The banking commissioner or the banking commissioner's designee shall prepare and maintain a written policy statement that implements a program of equal employment opportunity to ensure that all personnel decisions are made without regard to race, color, disability, sex, religion, age, or national origin.
(b) The policy statement must include: (1) personnel policies, including policies relating to recruitment, evaluation, selection, training, and promotion of personnel, that show the intent of the department to avoid the unlawful employment practices described by Chapter 21, Labor Code; and
(2) an analysis of the extent to which the composition of the department's personnel is in accordance with state and federal law and a description of reasonable methods to achieve compliance with state and federal law.
(c) The policy statement must: (1) be updated annually; (2) be reviewed by the state Commission on Human Rights for compliance with Subsection (b)(1); and
(3) be filed with the governor's office.
Added by Acts 2001, 77th Leg., ch. 699, § 4, eff. Sept. 1, 2001.
§ 12.113. EMPLOYEE INCENTIVE PROGRAM. The banking commissioner or the banking commissioner's designee shall provide to agency employees information and training on the benefits and methods of participation in the state employee incentive program.
Added by Acts 2001, 77th Leg., ch. 699, § 4, eff. Sept. 1, 2001. § 13.001. DEFINITIONS. The definitions provided by Section 31.002 apply to this chapter.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 13.0015. NAME CHANGES. (a) The Savings and Loan Department is renamed the Department of Savings and Mortgage Lending and the savings and loan commissioner is renamed the savings and mortgage lending commissioner.
(b) A reference in a statute or rule to the Savings and Loan Department means the Department of Savings and Mortgage Lending.
(c) A reference in a statute or rule to the savings and loan commissioner means the savings and mortgage lending commissioner.
Added by Acts 2005, 79th Leg., ch. 1018, § 3.02, eff. Sept. 1, 2005.
§ 13.002. SAVINGS AND LOAN COMMISSIONER. (a) The savings and loan commissioner is the chief executive officer of the Savings and Loan Department. The finance commission, by at least five affirmative votes, shall appoint the savings and loan commissioner. The savings and loan commissioner serves at the will of the finance commission and is subject to the finance commission's orders and direction.
(b) The savings and loan commissioner must have not less than seven years' experience in the executive management of a savings association or savings bank or in savings association or savings bank supervision.
(c) The finance commission shall set the compensation of the savings and loan commissioner. The compensation shall be paid from money of the Savings and Loan Department.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 867, § 15, eff. Sept. 1, 2001.
§ 13.003. DEPUTY COMMISSIONERS. (a) The savings and loan commissioner shall appoint one or more deputy savings and loan commissioners.
(b) One deputy savings and loan commissioner must have the qualifications required of the savings and loan commissioner. During the savings and loan commissioner's absence or inability to serve, that deputy savings and loan commissioner has the powers and shall perform the duties of the savings and loan commissioner.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 13.004. EXAMINERS. The savings and loan commissioner shall appoint savings association and savings bank examiners.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 13.005. COMPENSATION OF OFFICERS AND EMPLOYEES. (a) Subject to Subsection (b), each officer and employee of the Savings and Loan Department is entitled to compensation set by the finance commission. The compensation shall be paid from the money of the Savings and Loan Department.
(b) Chapter 654, Government Code, applies to a position of the Savings and Loan Department only if it is classified in salary groups 1-10 under the General Appropriations Act. The legislature in the General Appropriations Act may determine the total amount appropriated to the Savings and Loan Department but may not determine the number or salaries of employees other than the positions specifically subject to Chapter 654, Government Code, as provided by this section. The finance commission, subject to the limits provided by this section, shall otherwise determine the number of employees of the Savings and Loan Department and the salaries of those employees. The Savings and Loan Department may use money appropriated to it for any purpose to pay the salaries determined by the finance commission.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 13.006. OATH OF OFFICE. Before assuming the duties of office, each deputy savings and loan commissioner, examiner, assistant examiner, conservator, supervisor, and special agent and each other officer or employee specified by the savings and loan commissioner must take an oath of office to discharge faithfully the duties assigned and uphold the constitution and laws of this state and the United States.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 13.007. GENERAL POWERS AND DUTIES OF COMMISSIONER. The savings and loan commissioner shall:
(1) supervise and regulate the organization, operation, and liquidation of state savings associations, as provided by Subtitle B, Title 3, and state savings banks, as provided by Subtitle C, Title 3; and
(2) enforce those subtitles personally or through a deputy savings and loan commissioner, examiner, supervisor, conservator, or other agent.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 13.008. FEES, REVENUE, AND EXPENSES; AUDIT. (a) The finance commission shall establish reasonable and necessary fees for the administration of Subtitles B and C, Title 3, and Chapters 156 and 157, and for the support of the finance commission as provided by Subchapter C, Chapter 11. In establishing the reasonable and necessary fees for the administration of Chapters 156 and 157, the commissioner and the finance commission may not exceed the limit on the fees set forth in those chapters.
(b) The savings and loan commissioner shall: (1) collect all fees, penalties, charges, and revenue required to be paid by state savings associations and savings banks; and
(2) periodically submit to the finance commission, as directed by the finance commission, a complete report of the receipts and expenditures of the Savings and Loan Department. (c) The cost of an audit of the financial transactions of the Savings and Loan Department under Chapter 321, Government Code, shall be paid to the state auditor from the money of the Savings and Loan Department.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 867, § 16, eff. Sept. 1, 2001; Acts 2005, 79th Leg., ch. 1018, § 3.03, eff. Sept. 1, 2005.
§ 13.009. CONFLICTS OF LAW. If this chapter conflicts with Subtitle B or C, Title 3, this chapter controls.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 13.010. CONFLICTS OF INTEREST. (a) In this section, "Texas trade association" means a cooperative and voluntarily joined 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) A person may not be a Savings and Loan 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.), and its subsequent amendments, if:
(1) the person is an officer, employee, or paid consultant of a Texas trade association in a field regulated by the Savings and Loan Department; or
(2) the person's spouse is an officer, manager, or paid consultant of a Texas trade association in a field regulated by the Savings and Loan Department.
(c) A person may not act as the general counsel to the Savings and Loan 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 Savings and Loan Department
(d) Before the 11th day after the date on which an employee begins employment with the Savings and Loan Department, the employee shall read the conflict-of-interest statutes applicable to employees of the Savings and Loan Department and sign a notarized affidavit stating that the employee has read those statutes.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 337, § 1, eff. Sept. 1, 2001.
§ 13.011. CONSUMER INFORMATION AND COMPLAINTS. (a) The savings and loan commissioner shall prepare information of consumer interest describing:
(1) the regulatory functions of the Savings and Loan Department; and (2) the procedures by which consumer complaints are filed with and resolved by the Savings and Loan Department.
(b) The information under Subsection (a) must be made available to the public and appropriate state agencies.
(c) The Savings and Loan Department shall maintain a file on each written complaint filed with the Savings and Loan Department. The file must include:
(1) the name of the person who filed the complaint; (2) the date the complaint is received by the Savings and Loan Department; (3) the subject matter of the complaint; (4) the name of each person contacted in relation to the complaint; (5) a summary of the results of the review or investigation of the complaint; and
(6) an explanation of the reason the file was closed, if the agency closed the file without taking action other than to investigate the complaint.
(d) The Savings and Loan Department shall provide to the person filing the complaint and to each person who is a subject of the complaint a copy of the Savings and Loan Department's policies and procedures relating to complaint investigation and resolution.
(e) The Savings and Loan Department, at least quarterly until final disposition of the complaint, shall notify the person filing the complaint and each person who is a subject of the complaint of the status of the investigation unless the notice would jeopardize an undercover investigation.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 337, § 2, eff. Sept. 1, 2001.
§ 13.012. SUNSET PROVISION. The office of savings and loan commissioner and the Savings and Loan Department are subject to Chapter 325, Government Code (Texas Sunset Act). Unless continued in existence as provided by that chapter, the office and department are abolished September 1, 2013.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 337, § 3, eff. Sept. 1, 2001.
§ 13.013. STANDARDS OF CONDUCT. The savings and loan commissioner or the savings and loan commissioner's designee shall provide to agency employees, as often as necessary, information regarding the requirements for office or employment under this chapter, including information regarding a person's responsibilities under applicable laws relating to standards of conduct for state officers or employees.
Added by Acts 2001, 77th Leg., ch. 337, § 4, eff. Sept. 1, 2001.
§ 13.014. EQUAL EMPLOYMENT OPPORTUNITY POLICY. (a) The savings and loan commissioner or the savings and loan commissioner's designee shall prepare and maintain a written policy statement that implements a program of equal employment opportunity to ensure that all personnel decisions are made without regard to race, color, disability, sex, religion, age, or national origin.
(b) The policy statement must include: (1) personnel policies, including policies relating to recruitment, evaluation, selection, training, and promotion of personnel, that show the intent of the Savings and Loan Department to avoid the unlawful employment practices described by Chapter 21, Labor Code; and
(2) an analysis of the extent to which the composition of the Savings and Loan Department's personnel is in accordance with state and federal law and a description of reasonable methods to achieve compliance with state and federal law.
(c) The policy statement must: (1) be updated annually; (2) be reviewed by the state Commission on Human Rights for compliance with Subsection (b)(1); and
(3) be filed with the governor's office.
Added by Acts 2001, 77th Leg., ch. 337, § 4, eff. Sept. 1, 2001.
§ 13.015. EMPLOYEE INCENTIVE PROGRAM. The savings and loan commissioner or the savings and loan commissioner's designee shall provide to agency employees information and training on the benefits and methods of participation in the state employee incentive program.
Added by Acts 2001, 77th Leg., ch. 337, § 4, eff. Sept. 1, 2001. § 14.001. DEFINITIONS. (a) In this chapter: (1) "Document" includes books, accounts, correspondence, records, and papers.
(2) "Office" means the Office of Consumer Credit Commissioner. (b) The definitions provided by Section 341.001 apply to this chapter.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
SUBCHAPTER B. OPERATION OF OFFICE
§ 14.051. CONSUMER CREDIT COMMISSIONER. (a) The finance commission shall appoint the commissioner.
(b) The commissioner: (1) serves at the will of the commission; and (2) is subject to orders and directions of the commission.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 867, § 17, eff. Sept. 1, 2001.
§ 14.052. DIVISION OF CONSUMER PROTECTION. The division of consumer protection is a division in the office and is under the direction of the commissioner.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.053. COMPENSATION OF EMPLOYEES OF OFFICE. (a) Chapter 654, Government Code, applies to an office position only if the position is classified in salary groups 1-10 under the state's position classification plan in effect on January 1, 1989, or a comparable position under a successor plan.
(b) The legislature in the General Appropriations Act may determine the total amount appropriated to the office but may not determine the number or salaries of employees of the office in exempt positions.
(c) The finance commission, subject to the limits provided by this subchapter, shall determine the number of employees of the office in exempt positions and the salaries of those employees.
(d) The office may use money appropriated to it for any purpose to pay salaries determined by the finance commission unless the legislature in the General Appropriations Act expressly limits the use of particular funds for a particular purpose.
(e) An employee of the office in an exempt position other than the position of commissioner may not receive a salary that exceeds an amount that is $2,000 less than the commissioner's salary.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.054. OATH OF OFFICE.. Before assuming the duties of office, the commissioner and each assistant commissioner, examiner, and other employee of the office must take an oath of office
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2003, 78th Leg., ch. 285, § 7, eff. Sept. 1, 2003.
§ 14.055. LIABILITY. (a) The commissioner or an assistant commissioner, examiner, or other employee of the office is not personally liable for damages arising from the person's official act or omission unless the act or omission is corrupt or malicious.
(b) The attorney general shall defend an action brought against a person because of an official act or omission under Subsection (a) regardless of whether the person has terminated service with the office when the action is instituted.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.056. CONFLICT OF INTEREST. (a) In this section, "Texas trade association" means a cooperative and voluntarily joined 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) A person may not be an employee of the office 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.), and its subsequent amendments, if:
(1) the person is an officer, employee, or paid consultant of a Texas trade association in an industry regulated by the office; or
(2) the person's spouse is an officer, manager, or paid consultant of a Texas trade association in an industry regulated by the office.
(c) A person may not act as the general counsel to the office 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 office.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 1235, § 1, eff. Sept. 1, 2001.
§ 14.057. PERFORMANCE EVALUATIONS; MERIT PAY. (a) The commissioner or a person designated by the commissioner shall develop a system of annual employee performance evaluations based on measurable job tasks.
(b) Merit pay for employees of the office must be based on the system established under this section.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.058. EQUAL EMPLOYMENT OPPORTUNITY. (a) The commissioner or the commissioner's designee shall prepare and maintain a written policy statement that implements a program of equal employment opportunity to ensure that all personnel decisions are made without regard to race, color, disability, sex, religion, age, or national origin.
(b) The policy statement must include: (1) personnel policies, including policies relating to recruitment, evaluation, selection, training, and promotion of personnel, that show the intent of the office to avoid the unlawful employment practices described by Chapter 21, Labor Code; and
(2) an analysis of the extent to which the composition of the office's personnel is in accordance with state and federal law and a description of reasonable methods to achieve compliance with state and federal law.
(c) The policy statement must: (1) be updated annually; (2) be reviewed by the state Commission on Human Rights for compliance with Subsection (b)(1); and
(3) be filed with the governor's office
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 1235, § 2, eff. Sept. 1, 2001.
§ 14.059. INTRA-AGENCY CAREER LADDER. (a) The commissioner or a person designated by the commissioner shall develop an intra-agency career ladder program.
(b) The program must require intra-agency posting of all nonentry level positions for at least 10 days before public posting.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.060. FINANCIAL OVERSIGHT. (a) The commissioner, on the direction of the finance commission, shall report to the finance commission on all the receipts and expenditures of the office.
(b) The finance commission may examine or cause to be examined the financial records of the office.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.061. COST OF AUDIT. The cost of an audit of the office under Chapter 321, Government Code, shall be paid to the state auditor from the funds of the office.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.062. CONSUMER INFORMATION AND COMPLAINTS. (a) The office shall maintain a file on each written complaint filed with the office. The file must include:
(1) the name of the person who filed the complaint; (2) the date the complaint is received by the office; (3) the subject matter of the complaint; (4) the name of each person contacted in relation to the complaint; (5) a summary of the results of the review or investigation of the complaint; and
(6) an explanation of the reason the file was closed, if the office closed the file without taking action other than to investigate the complaint.
(b) The office shall provide to the person filing the complaint and to each person who is a subject of the complaint a copy of the office's policies and procedures relating to complaint investigation and resolution.
(c) The office, at least quarterly until final disposition of the complaint, shall notify the person filing the complaint and each person who is a subject of the complaint of the status of the investigation unless the notice would jeopardize an undercover investigation.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 1235, § 3, eff. Sept. 1, 2001.
§ 14.063. APPLICATION OF OPEN MEETINGS LAW. The office is a governmental body subject to Chapter 551, Government Code.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.064. CONSUMER INFORMATION. The commissioner shall: (1) prepare information of consumer interest describing: (A) the regulatory functions of the office; and (B) the office's procedures by which consumer complaints are filed with and resolved by the office; and
(2) make the information available to the public and appropriate state agencies.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.065. OFFICE EMPLOYEES. The commissioner may appoint, remove, and prescribe the duties of assistant commissioners, examiners, and other employees as necessary to maintain and operate the office, including the division of consumer protection.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.066. SUNSET PROVISION. The office is subject to Chapter 325, Government Code (Texas Sunset Act). Unless continued in existence as provided by that chapter, the office is abolished September 1, 2013.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 1235, § 4, eff. Sept. 1, 2001.
§ 14.067. EMPLOYEE INCENTIVE PROGRAM. The commissioner or the commissioner's designee shall provide to agency employees information and training on the benefits and methods of participation in the state employee incentive program.
Added by Acts 2001, 77th Leg., ch. 1235, § 5, eff. Sept. 1, 2001.
SUBCHAPTER C. POWERS AND DUTIES OF COMMISSIONER
§ 14.101. GENERAL DUTIES OF COMMISSIONER. The commissioner shall enforce this chapter, Subtitles B and C of Title 4, and Chapter 394 in person or through an assistant commissioner, examiner, or other employee of the office.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.102. EDUCATIONAL AND DEBT COUNSELING PROGRAMS. The commissioner shall coordinate, encourage, and assist public and private agencies, organizations, groups, and consumer credit institutions in developing and operating voluntary educational and debt counseling programs designed to promote prudent and beneficial use of consumer credit by residents of this state.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.103. CONSUMER PROTECTION PROGRAMS. The commissioner, through the division of consumer protection, shall coordinate, encourage, and assist public and private agencies, organizations, groups, and consumer protection institutions in developing and operating voluntary educational consumer protection programs designed to promote prudent and informed consumer action by residents of this state.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.104. LENDER CONTRACTS. A written contract of an authorized lender subject to regulation by the office must contain the name, mailing address, and telephone number of the office.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.105. GIFTS AND GRANTS. (a) The commissioner may accept money, gifts, or grants on behalf of the state for a purpose related to a consumer credit educational opportunity or to assist a local government in the exercise of its police power unless the acceptance is prohibited by Subsection (b) or other law. Acceptance and use of money under this subsection must be approved by the finance commission.
(b) The commissioner may not accept or use money offered by: (1) a person for investigating or prosecuting a matter; or (2) a person who is affiliated with an industry that is regulated by the finance commission.
(c) Money received under Subsection (a) may be appropriated only for the purpose for which the money was given.
(d) The commissioner is not prohibited by Subsection (b) from receiving and using money from a person under the jurisdiction of the commissioner if the receipt and use is expressly authorized by other law.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.106. INFORMATION REGARDING EMPLOYMENT REQUIREMENTS. The commissioner or the commissioner's designee shall provide to agency employees, as often as necessary, information regarding the requirements for employment under this chapter, including information regarding a person's responsibilities under applicable laws relating to standards of conduct for state employees.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 1235, § 6, eff. Sept. 1, 2001.
§ 14.107. FEES. (a) The finance commission shall establish reasonable and necessary fees for carrying out the commissioner's powers and duties under this chapter, Title 4, and Chapters 371, 392, and 394 and under Chapters 38-41, Business &
Commerce Code.
(b) The finance commission by rule shall set the fees for licensing and examination under Chapter 342, 348, or 371 at amounts or rates necessary to recover the costs of administering those chapters. The rules may provide that the amount of a fee charged to a license holder is based on the volume of the license holder's regulated business and other key factors. The commissioner may provide for collection of a single annual fee from a person licensed under Chapter 342, 348, or 371 to include amounts due for both licensing and examination.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 867, § 18, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1235, § 7, eff. Sept. 1, 2001.
§ 14.108. INTERPRETATIONS OF LAW. (a) The commissioner may issue an interpretation of this chapter or Subtitle A or B, Title 4, after approval of the interpretation by the finance commission.
(b) The provisions of Chapter 2001, Government Code, that relate to the adoption of an administrative rule do not apply to the issuance of an interpretation under this section.
(c) The commissioner shall publish in the Texas Register, in a form prescribed by the finance commission, a request for an interpretation not later than the 10th day after the date on which the commissioner receives the request.
(d) An interpretation approved by the finance commission shall be published in the Texas Register, in a form prescribed by the finance commission, not later than the 10th day after the date on which the finance commission has approved the interpretation.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
SUBCHAPTER D. CRIMINAL HISTORY RECORD INFORMATION
§ 14.151. OBTAINING INFORMATION. (a) The commissioner or an assistant commissioner, examiner, or other employee of the office shall obtain criminal history record information maintained by the Department of Public Safety, the Federal Bureau of Investigation Identification Division, or another law enforcement agency relating to:
(1) an applicant for a license issued by the commissioner; or (2) a person licensed under the commissioner's authority. (b) For an applicant or license holder that is a business entity, the criminal history record information requirement of this section applies to an officer, director, owner, or employee of the entity or another person having a substantial relationship with the entity.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.152. FINGERPRINT REQUIREMENT; PENALTY. The commissioner may refuse to grant a license to, or may suspend or revoke the license of, an applicant or license holder who fails to provide, on request, a complete set of legible fingerprints on a fingerprint card format approved by the Department of Public Safety and the Federal Bureau of Investigation.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.153. ACTION BY LAW ENFORCEMENT AGENCIES. (a) The commissioner shall send fingerprints and other identification information to the Department of Public Safety to be retained by that department.
(b) The Department of Public Safety shall use the information to perform a search of the state criminal history files and shall report the findings to the office.
(c) The Department of Public Safety shall send fingerprints and other identification information to the Federal Bureau of Investigation so that the bureau can perform a search of its criminal history files.
(d) The Department of Public Safety shall notify the office of activity reported to the crime records division that identifies a person with a record maintained under this subchapter.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.154. CONFIDENTIALITY. (a) Criminal history record information received by the office is confidential and is for the exclusive use of the office.
(b) Except on court order or as provided by Section 14.155(a), the information may not be released or otherwise disclosed to another person.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.155. DISCLOSURE; OFFENSE. (a) The office may not provide a person being investigated under this subchapter with a copy of the person's criminal history record obtained from the Department of Public Safety, Federal Bureau of Investigation Identification Division, or other law enforcement agency. This subchapter does not prevent the office from:
(1) disclosing to the person being investigated a date and place of arrest or an offense or disposition contained in the criminal history record; or
(2) disclosing criminal history record information to, and discussing the information with, an authorized law enforcement agency with an interest in the person to whom the information relates.
(b) A person commits an offense if the person releases or discloses information received under this subchapter except on court order or as provided by Subsection (a). An offense under this subsection is a Class A misdemeanor.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.156. RECOVERY OF COSTS. In addition to an investigation fee paid to the commissioner by a license applicant, the commissioner is entitled to recover from an applicant or license holder the cost of processing an inquiry to determine whether the person has a criminal history record.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.157. RULES. The finance commission shall adopt rules governing the custody and use of information obtained under this subchapter.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 867, § 19, eff. Sept. 1, 2001.
SUBCHAPTER E. INVESTIGATION AND ENFORCEMENT
§ 14.201. INVESTIGATION AND ENFORCEMENT AUTHORITY. Investigative and enforcement authority under this subchapter applies only to this chapter, Subtitles B and C of Title 4, and Chapter 394.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.202. REQUEST FOR INFORMATION; FAILURE TO COMPLY. (a) On receipt of a written complaint or other reasonable cause to believe that a person is violating a statute listed by Section 14.201, the commissioner may require the person to furnish information regarding a specific loan, retail transaction, or business practice to which the violation relates.
(b) If a person fails to furnish the information requested by the commissioner, the commissioner may conduct an investigation to determine whether a violation exists.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.203. ISSUANCE OF SUBPOENA OR SUMMONS. (a) During an investigation, the commissioner may issue a subpoena or summons that is addressed to a peace officer of this state and requires the attendance and testimony of a witness or the production of a document.
(b) A document that is necessary to continue the business of a person under investigation may not be removed from the office or place of business of that person, but the commissioner may:
(1) examine, or cause to be examined, the document at the office or place of business; and
(2) require a copy to be made of a part of the document related to a matter under investigation.
(c) A copy of a document made under Subsection (b)(2) must be verified by the affidavit of the person under investigation or by an officer of that person.
(d) On the commissioner's certification, a copy of a document made under Subsection (b)(2) is admissible in evidence in an:
(1) investigation or hearing under this subchapter or under a statute to which this subchapter applies; or
(2) appeal to the district court. (e) To implement this section, the commissioner may sign a subpoena, administer an oath or affirmation, examine a witness, or receive evidence.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.204. ENFORCEMENT OF SUBPOENA; CONTEMPT. (a) If a person disobeys a subpoena or if a witness appearing before the commissioner refuses to testify, the commissioner may petition the district court of a jurisdiction in which the person or witness may be found, and the court on this petition may issue an order requiring the person or witness to obey the subpoena, testify, or produce a document relating to the matter in issue, as applicable. The court shall treat the application in the same manner as a motion in a civil suit.
(b) The court shall promptly set an application to enforce a subpoena under Subsection (a) for hearing and shall cause notice of the application and the hearing to be served on the person to whom the subpoena is directed. Notice may be served by a peace officer of this state.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.205. INVESTIGATION BY HEARING OFFICER. (a) During an investigation described by this subchapter, the commissioner may appoint a hearing officer to conduct the investigation.
(b) On appointment, a hearing officer has the same authority as the commissioner to conduct the investigation, except that the hearing officer may not issue an order on the subject of the investigation.
(c) The commissioner may consider the record of an investigation conducted before a hearing officer in the same manner and to the same extent as in a hearing before the commissioner.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.206. FEES AND EXPENSES. (a) The fee for serving a subpoena under this subchapter is the same as that paid a sheriff or constable for performing a similar service.
(b) A witness required to attend a hearing before the commissioner shall receive for each day's attendance a fee and a travel and transportation allowance as authorized by law or a rule adopted by the finance commission.
(c) A fee under Subsection (b) is not payable until the witness appears at the hearing.
(d) A disbursement made in payment of a fee under this section shall be included in, and paid in the same manner that is provided for, other expenses incurred in the administration and enforcement of the statutes to which this subchapter applies.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 867, § 20, eff. Sept. 1, 2001.
§ 14.207. IMPOSITION OF COSTS ON PARTIES. The commissioner may impose on a party in interest of record fees, expenses, or costs incurred in connection with a hearing or may divide the fee or expense among any or all interested parties as determined by the commissioner.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.208. INJUNCTION; APPEAL. (a) If the commissioner has reasonable cause to believe that a person is violating a statute to which this chapter applies, the commissioner, in addition to any other authorized action, may issue an order to cease and desist from the violation or an order to take affirmative action, or both, to enforce compliance. A person may appeal the order to the finance commission as provided by Subsection (d) or directly to district court in accordance with Chapter 2001, Government Code.
(b) If a person against whom an order under this section is made requests a hearing not later than the 30th day after the date the order is served, the commissioner shall set and give notice of a hearing before a hearings officer. The hearing is governed by Chapter 2001, Government Code. Based on the findings of fact, conclusions of law, and recommendations of the hearings officer, the commissioner by order may find whether a violation has occurred.
(c) If a hearing is not timely requested under Subsection (b), the order is considered final and becomes enforceable. The commissioner, after giving notice, may impose against a person who violates a cease and desist order an administrative penalty in an amount not to exceed $1,000 for each day of violation. In addition to any other remedy provided by law, the commissioner on relation of the attorney general may institute in district court a suit for injunctive relief and to collect an administrative penalty. A bond is not required of the commissioner with respect to injunctive relief granted under this section. In the action, the court may enter as proper an order awarding a preliminary or final injunction.
(d) If a party seeks review of the order by the finance commission, the party shall file a petition for review with the finance commission not later than the 30th day after the date of the issuance of the commissioner's decision. The finance commission may affirm, vacate, or modify an order issued by the commissioner. A party aggrieved by a final decision of the finance commission is entitled to judicial review. The party may appeal the decision of the finance commission by the filing of a motion for rehearing with the finance commission and then filing a petition initiating judicial review.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2005, 79th Leg., ch. 1018, § 4.01, eff. Sept. 1, 2005.
§ 14.209. APPOINTMENT OF RECEIVER. (a) In addition to other remedies for the enforcement of a restraining order or injunction, the court in which an action is brought under Section 14.208(b) may impound and appoint a receiver for the defendant's property and business, including a document relating to the property or business, as the court considers reasonably necessary to prevent a violation through use of the property and business.
(b) On appointment and qualification, a receiver has the powers and duties of a receiver under Chapter 64, Civil Practice and Remedies Code.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
SUBCHAPTER F. ADMINISTRATIVE PENALTY; RESTITUTION ORDER; ASSURANCE OF VOLUNTARY COMPLIANCE
§ 14.251. ASSESSMENT OF PENALTY; RESTITUTION ORDER. (a) The commissioner may assess an administrative penalty against a person who knowingly and wilfully violates or causes a violation of this chapter, Chapter 394, or Subtitle B, Title 4, or a rule adopted under this chapter, Chapter 394, or Subtitle B, Title 4.
(b) The commissioner may order a person who violates or causes a violation of this chapter, Chapter 394, or Subtitle B, Title 4, or a rule adopted under this chapter, Chapter 394, or Subtitle B, Title 4, to make restitution to an identifiable person injured by the violation.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 62, § 7.29, eff. Sept. 1, 1999.
§ 14.252. AMOUNT OF PENALTY. (a) The commissioner may assess an administrative penalty for a violation in an amount not to exceed $1,000 for each day of the violation.
(b) The aggregate amount of penalties under this subchapter that the commissioner may assess against a person during one calendar year may not exceed the lesser of:
(1) $100,000; or (2) an amount that is equal to the greater of five percent of the net worth of the creditor or $5,000.
(c) In determining the amount of an administrative penalty, the commissioner shall consider:
(1) the seriousness of the violation, including the nature, circumstances, extent, and gravity of the prohibited act;
(2) the extent of actual or potential harm to a third party; (3) the history of violations; (4) the amount necessary to deter future violations; (5) efforts to correct the violation; and (6) any other matter that justice may require.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2005, 79th Leg., ch. 1018, § 4.03, eff. Sept. 1, 2005.
§ 14.253. REPORT ON VIOLATION. If the commissioner determines that a violation occurred, the commissioner may issue a report that states:
(1) the facts on which the determination is based; and (2) the commissioner's recommendation on imposition of a penalty, including a recommendation on the amount of the penalty.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.254. NOTICE OF REPORT ON VIOLATION AND PENALTY RECOMMENDATION. (a) Not later than the 14th day after the date on which a report is issued, the commissioner shall give written notice of the report by certified mail to the person charged with committing or causing the violation.
(b) The notice must: (1) include a brief summary of the alleged violation; (2) include a statement of the amount of the recommended penalty; and (3) inform the person that the person has a right to a hearing on the occurrence of the violation, the amount of the penalty, or both.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.255. RESPONSE OF PERSON RECEIVING NOTICE. Not later than the 20th day after the date on which a person receives notice under Section 14.254, the person may:
(1) accept in writing the determination and recommended penalty of the commissioner; or
(2) make a written request for a hearing on the occurrence of the violation, the amount of the penalty, or both.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.256. ACCEPTANCE OF PENALTY. If a person accepts the determination and recommended penalty of the commissioner, the commissioner by order shall approve the determination and impose the recommended penalty.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.257. HEARING ON PENALTY; ORDER. (a) If a person requests a hearing or fails to give a timely response to the notice, the commissioner shall set a hearing and give notice of the hearing to the person by certified mail.
(b) The hearing shall be held by a hearings officer who shall make findings of fact and conclusions of law and promptly issue a proposal for a decision about the occurrence of the violation and the amount of a proposed penalty.
(c) According to the findings of fact, conclusions of law, and proposal for a decision, the commissioner by order may find:
(1) that a violation has occurred and impose a penalty; or (2) a violation has not occurred. (d) Notice of the commissioner's order, given to the person under Chapter 2001, Government Code, must include a statement of the person's right to judicial review of the order.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.258. STAY OF PENALTY; SUIT BY ATTORNEY GENERAL. (a) The enforcement of the penalty may be stayed during the time the order is under judicial review if the person pays the penalty to the clerk of the court or files a supersedeas bond with the court in the amount of the penalty. A person who cannot afford to pay the penalty or file the bond may stay the enforcement by filing an affidavit in the manner required by the Texas Rules of Civil Procedure for a party who cannot afford to file security for costs, subject to the right of the commissioner to contest the affidavit as provided by those rules.
(b) The attorney general may sue to collect the penalty. (c) A court that sustains the occurrence of a violation may uphold or reduce the amount of the administrative penalty and order the person to pay that amount.
(d) A court that does not sustain the occurrence of a violation shall order that no penalty is owed.
(e) If a person has paid a penalty and a court in a final judgment reduces or does not uphold the amount, the court shall order that the appropriate amount plus accrued interest be remitted to the person. The interest rate is the rate authorized by Chapter 304, and interest shall be paid for the period beginning on the date the penalty was paid and ending on the date the penalty is remitted.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2005, 79th Leg., ch. 1018, § 4.04, eff. Sept. 1, 2005.
§ 14.259. RECOVERY OF COSTS. In addition to the administrative penalty or restitution amount, the court may authorize the commissioner to recover from a person who pays an administrative penalty or restitution amount, or both, reasonable expenses incurred in obtaining the ordered amount, including the cost of investigation, witness fees, and deposition expenses.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.260. ADMINISTRATIVE PROCEDURE ACT. A proceeding under this subchapter is subject to Chapter 2001, Government Code.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.261. ACCEPTANCE OF ASSURANCE. (a) In administering this chapter, the commissioner may accept assurance of voluntary compliance from a person who is engaging in or has engaged in an act or practice in violation of:
(1) this chapter or a rule adopted under this chapter; (2) Chapter 394; or (3) Subtitle B, Title 4, or a rule adopted under Subtitle B, Title 4. (b) The assurance must be in writing and be filed with the commissioner. (c) The commissioner may condition acceptance of an assurance of voluntary compliance on the stipulation that the person offering the assurance restore to a person in interest money that may have been acquired by the act or practice described by Subsection (a).
(d) The finance commission may adopt rules to establish the form of the assurance or require certain information be contained in an assurance.
Added by Acts 2005, 79th Leg., ch. 1018, § 4.05, eff. Sept. 1, 2005.
§ 14.262. EFFECT OF ASSURANCE. (a) An assurance of voluntary compliance is not an admission of a violation of:
(1) this chapter or a rule adopted under this chapter; (2) Chapter 394; or (3) Subtitle B, Title 4, or a rule adopted under Subtitle B, Title 4. (b) Unless an assurance of voluntary compliance is rescinded by agreement or voided by a court for good cause, a subsequent failure to comply with the assurance is prima facie evidence of a violation of:
(1) this chapter or a rule adopted under this chapter; (2) Chapter 394; or (3) Subtitle B, Title 4, or a rule adopted under Subtitle B, Title 4.
Added by Acts 2005, 79th Leg., ch. 1018, § 4.05, eff. Sept. 1, 2005.
§ 14.263. REOPENING. A matter closed by the filing of an assurance of voluntary compliance may be reopened at any time.
Added by Acts 2005, 79th Leg., ch. 1018, § 4.05, eff. Sept. 1, 2005.
§ 14.264. RIGHT TO BRING ACTION NOT AFFECTED. (a) An assurance of voluntary compliance does not affect the right of an individual to bring an action, except as provided in Chapter 349 and except that the right of an individual in relation to money received according to a stipulation under Section 14.261(c) is governed by the terms of the assurance.
(b) A person entering into an assurance of voluntary compliance may, not later than the 60th day after the date of filing of the assurance, correct the violation under Section 349.201. Amounts paid as restitution and other acts taken in accordance with an assurance of voluntary compliance shall be considered for purposes of determining whether the obligor has made a correction under Subchapter C, Chapter 349. With respect to corrections of violations or possible violations relating to matters addressed in the assurance of voluntary compliance, the date of filing of the assurance is considered to be the date of:
(1) actual discovery of the violation or possible violation; (2) written notice; and (3) filing of the action alleging the violation.
Added by Acts 2005, 79th Leg., ch. 1018, § 4.05, eff. Sept. 1, 2005.
SUBCHAPTER G. JUDICIAL REVIEW
§ 14.301. APPEAL OF FINAL DECISION OF COMMISSIONER. A party in interest aggrieved by a final decision of the commissioner is entitled to judicial review.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 14.302. APPEAL OF LICENSE WITHHOLDING OR REVOCATION. An appeal of a decision of the commissioner refusing to grant a license to an applicant or revoking the license of a license holder shall be under the substantial evidence rule as provided by Chapter 2001, Government Code.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 1235, § 8, eff. Sept. 1, 2001.
§ 14.303. STAY OF ORDER PENDING APPEAL. On a showing of good cause, the commissioner or the reviewing court may enter an order staying the effect of a final decision of the commissioner pending appeal by a party in interest.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. § 15.001. DEFINITIONS. (a) In this chapter, "trade association" means a nonprofit, cooperative, and voluntarily joined association of business or professional competitors 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, § 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 62, § 7.05(a), eff. Sept. 1, 1999.
SUBCHAPTER B. DEPARTMENT
§ 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, § 1, eff. Sept. 1, 1997.
§ 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, § 1, eff. Sept. 1, 1997.
§ 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, § 1, eff. Sept. 1, 1997.
§ 15.104. FISCAL REPORT. (a) The department shall annually prepare a complete and detailed written report accounting for all money received and disbursed by the department during the preceding year.
(b) The report must meet the reporting requirements applicable to financial reporting provided by the General Appropriations Act.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 62, § 7.04(a), eff. Sept. 1, 1999.
SUBCHAPTER C. COMPOSITION OF COMMISSION
§ 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) An appointment to the commission must be made without regard to the race, color, creed, disability, sex, religion, age, or national origin of the appointee.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 62, § 7.06(a), eff. Sept. 1, 1999.
§ 15.202. GENERAL QUALIFICATIONS OF COMMISSION MEMBERS. (a) No two commission members may be residents of the same state senatorial district.
(b) A commission member may not be: (1) an officer, employee, or paid consultant of a trade association representing or affiliated with a financial institution group or an entity affiliated with financial institutions;
(2) a spouse of an officer, manager, or paid consultant of a trade association representing or affiliated with a financial institution group or an entity affiliated with financial institutions; or
(3) a person who 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 commission.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 62, § 7.05(b), eff. Sept. 1, 1999.
§ 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, § 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 62, § 7.05(c), eff. Sept. 1, 1999.
§ 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, § 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 62, § 7.05(d), eff. Sept. 1, 1999; Acts 1999, 76th Leg., ch. 87, § 1, eff. Sept. 1, 1999.
§ 15.2041. TRAINING PROGRAM. (a) To be eligible to take office as a member of the commission, a person appointed to the commission must complete at least one course of a training program that complies with this section. A commission member must complete a training program that complies with Subsection (b) not later than the 180th day after the date on which the person takes office.
(b) A training program established under this section must provide information to the member regarding:
(1) the enabling legislation that created the department and its policy-making body to which the member is appointed to serve;
(2) the programs operated by the department; (3) the role and functions of the department; (4) the rules of the commission with an emphasis on the rules that relate to disciplinary and investigatory authority;
(5) the current budget for the department; (6) the results of the most recent formal audit of the department; (7) the requirements of the: (A) open meetings law, Chapter 551, Government Code; (B) open records law, Chapter 552, Government Code; and (C) administrative procedure law, Chapter 2001, Government Code; (8) the requirements of the conflict of interest laws and other laws relating to public officials;
(9) any applicable ethics policies adopted by the department or the Texas Ethics Commission; and
(10) the basic principles and responsibilities of credit union management. (c) A person appointed to the commission is entitled to reimbursement for travel expenses incurred in attending the training program, as provided by the General Appropriations Act and as if the person were a member of the commission.
Added by Acts 1999, 76th Leg., ch. 62, § 7.07(a), eff. Sept. 1, 1999.
§ 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, § 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 62, § 7.08(a), eff. Sept. 1, 1999.
§ 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 grounds for removal from the commission if a member: (1) does not have at the time of appointment the applicable 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) violates a prohibition established by 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 term for which the member is appointed; 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.
(c) The validity of an action of the commission is not affected by the fact that it was taken when a ground for removal of a commission member existed.
(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 officer of the commission, who shall notify the governor and the attorney general that a potential ground for removal exists.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 62, § 7.08(b), eff. Sept. 1, 1999.
§ 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) Compensation and expenses under Subsection (b) shall be in the amount set by legislative appropriation.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 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, § 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 62, § 7.09(a), eff. Sept. 1, 1999.
§ 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, § 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 62, § 7.09(b), eff. Sept. 1, 1999.
§ 15.210. PRESIDING OFFICER. The governor shall designate a member of the commission as presiding officer of the commission to serve in that capacity at the will of the governor.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 62, § 7.09(c), eff. Sept. 1, 1999.
§ 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, § 1, eff. Sept. 1, 1997.
§ 15.212. SUNSET PROVISION. The Credit Union Commission is subject to Chapter 325, Government Code (Texas Sunset Act). Unless continued in existence as provided by that chapter, the commission is abolished September 1, 2009.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 62, § 7.04(b), eff. Sept. 1, 1999.
SUBCHAPTER D. COMMISSIONER AND OTHER EMPLOYEES OF COMMISSION
§ 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, § 1, eff. Sept. 1, 1997.
§ 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) The commissioner may not: (1) be a salaried officer, employee, or consultant of a trade association in the credit union industry; or
(2) be related within the second degree by affinity or consanguinity, as determined under Chapter 573, Government Code, to a person who is a salaried officer, employee, or consultant of a trade association in the credit union industry.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 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, § 1, eff. Sept. 1, 1997.
§ 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, § 1, eff. Sept. 1, 1997.
§ 15.305. GENERAL COUNSEL. A person who 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 commission, may not serve as general counsel to the commission.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 62, § 7.05(e), eff. Sept. 1, 1999.
§ 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, § 1, eff. Sept. 1, 1997. Amended by Acts 2003, 78th Leg., ch. 285, § 8, eff. Sept. 1, 2003.
§ 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, § 1, eff. Sept. 1, 1997.
§ 15.308. COMPENSATION OF EMPLOYEES. (a) The commission shall set the compensation of the commissioner and deputy commissioner. The compensation shall be paid according to the General Appropriations Act.
(b) Except for the commissioner and deputy commissioner, Chapter 654, Government Code, applies to any department position.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 157, § 1, eff. Sept. 1, 1999.
§ 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, § 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 62, § 7.12(a), eff. Sept. 1, 1999.
§ 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, § 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 62, § 7.12(b), eff. Sept. 1, 1999.
§ 15.311. QUALIFICATIONS OF EMPLOYEES. A person may not be an employee of the department who is exempt from the state's position classification plan or is compensated at or above the amount prescribed by the General Appropriations Act for step 1, salary group 17, of the position classification salary schedule, if the person is:
(1) an officer, employee, or paid consultant of a trade association representing or affiliated with a financial institution group or an entity affiliated with financial institutions; or
(2) a spouse of an officer, manager, or paid consultant of a trade association representing or affiliated with a financial institution group or an entity affiliated with financial institutions.
Added by Acts 1999, 76th Leg., ch. 62, § 7.05(f), eff. Sept. 1, 1999.
§ 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, § 7.11(a), eff. Sept. 1, 1999.
§ 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, § 7.13(a), eff. Sept. 1, 1999.
SUBCHAPTER E. POWERS AND DUTIES OF COMMISSION AND COMMISSIONER
§ 15.401. SUPERVISION OF COMMISSIONER. The commission shall supervise, consult with, and advise the commissioner.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 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, § 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 157, § 2, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 533, § 1, eff. Sept. 1, 2003.
§ 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, § 7.10(a), eff. Sept. 1, 1999.
§ 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, § 7.10(a), eff. Sept. 1, 1999.
§ 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, § 7.10(a), eff. Sept. 1, 1999.
§ 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, § 1, eff. Sept. 1, 1997. Amended by Acts 2003, 78th Leg., ch. 533, § 2, eff. Sept. 1, 2003.
§ 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, § 3, eff. Sept. 1, 2003.
§ 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, § 3, eff. Sept. 1, 2003.
§ 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, § 1, eff. Sept. 1, 1997. Amended by Acts 2003, 78th Leg., ch. 533, § 4, eff. Sept. 1, 2003.
§ 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, § 5, eff. Sept. 1, 2003.
§ 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, § 5, eff. Sept. 1, 2003.
§ 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, § 5, eff. Sept. 1, 2003.
§ 15.405. LEGISLATIVE RECOMMENDATIONS. The commissioner shall report the department's legislative recommendations to the legislature for consideration.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 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, § 1, eff. Sept. 1, 1997.
§ 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, § 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 1158, § 7, eff. Sept. 1, 2001.
§ 15.408. COLLECTION OF MONEY. The commissioner shall collect all fees, charges, and revenues required to be paid by a credit union under Section 15.402(c). All money paid to the department under this chapter and Subtitle D, Title 3, is subject to Subchapter F, Chapter 404, Government Code.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 62, § 7.11(b), eff. Sept. 1, 1999; Acts 1999, 76th Leg., ch. 157, § 3, eff. Sept. 1, 1999.
§ 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 commissioner shall supervise the establishment and maintenance of files regarding each written complaint filed with the department that the department has authority to resolve.
(c) A file established and maintained under this section must include all relevant information regarding the nature, status, and disposition of a complaint.
(d) The department shall provide to a person filing a complaint and the persons complained about the department's policies and procedures concerning complaint investigation and resolution.
(e) At least quarterly until final disposition of any written complaint that is filed with the department, the department shall notify the parties to the complaint of its status unless the notice would jeopardize an undercover investigation.
(f) The department shall keep information about each complaint filed with the department. The information must include:
(1) the date the complaint is received; (2) the name of the complainant; (3) the subject matter of the complaint; (4) a record of all persons contacted in relation to the complaint; (5) a summary of the results of the review or investigation of the complaint; and
(6) for a complaint that the department closed without taking action, an explanation of the reason the complaint was closed without action.
(g) The commission by rule shall establish methods by which consumers and service recipients are notified of the name, mailing address, and telephone number of the department for the purpose of directing complaints to the department. The commission may provide for that notification:
(1) on each registration form, application, or written contract for services of a credit union regulated under this chapter and Subtitle D, Title 3;
(2) on a sign prominently displayed in the place of business of each credit union regulated under this chapter and Subtitle D, Title 3; or
(3) in a bill for service provided by a credit union regulated under this chapter and Subtitle D, Title 3.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 62, § 7.11(c), eff. Sept. 1, 1999.
§ 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, § 7.11(d), eff. Sept. 1, 1999.
§ 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, § 1, eff. Sept. 1, 1997.
§ 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, § 4, eff. Sept. 1, 1999.
§ 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, § 4, eff. Sept. 1, 1999.
§ 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.
Added by Acts 2003, 78th Leg., ch. 1207, § 2, eff. Sept. 13, 2003.
§ 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, § 5, eff. Sept. 1, 2003.
§ 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, § 5, eff. Sept. 1, 2003. Renumbered from V.T.C.A., Finance Code § 15.413 by Acts 2005, 79th Leg., ch. 728, § 23.001(26), eff. Sept. 1, 2005.
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