HBA-NLM H.B. 2068 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2068 By: Marchant Financial Institutions 4/5/1999 Introduced BACKGROUND AND PURPOSE A separate Savings and Loan Department was created in 1961 under the direction of the savings and loan commissioner appointed by the Finance Commission of Texas. The Texas Savings and Loan Act (act) was enacted in 1963. With the enactment of the Texas Savings Bank Act in 1993, most state chartered savings and loan associations converted to the state savings bank charter. H.B. 2068 converts the remaining institutions to a state savings bank and repeals Subtitle B (Savings and Loan Associations), Title 3, from the Finance Code. In addition, this bill renames the Savings and Loan Department as the Savings Bank Department. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Finance Commission of Texas in SECTION 9 of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Sections 11.102(b)-(f), Finance Code, as follows: (b) Provides that two members of the finance commission must be savings bank executives. (c) Prohibits five members of the finance commission from being savings bank executives. (d) Prohibits a member or employee of the finance commission from being an officer, employee, or paid consultant of a trade association representing an industry regulated by the savings bank, rather than the savings and loan, commissioner. (e) Defines "savings bank executive" for the purposes of this section and deletes the provision that a savings bank executive may be an officer of a state savings association. (f) Makes conforming and nonsubstantive changes. SECTION 2. Amends Section 11.107(c), Finance Code, to make a conforming change. SECTION 3. Amends Section 11.201(a), Finance Code, to make conforming changes. SECTION 4. Amends Section 11.202(a), Finance Code, to make a conforming change. SECTION 5. Amends Sections 11.203, 11.204, 11.302, and 11.303, Finance Code, to make conforming changes. SECTION 6. Amends Chapter 13, Finance Code, to provide that at least one deputy savings bank commissioner must have the qualifications required of the savings bank commissioner if the savings bank commissioner appoints one or more deputy savings bank commissioners. Makes conforming changes. SECTION 7. Amends Section 91.002(15), Finance Code, to redefine "foreign savings bank." SECTION 8. Repealer: Subtitle B (Savings and Loan Associations), Title 3, Finance Code. SECTION 9. (a) Requires each savings and loan association organized under the laws of this state to convert into a state-chartered savings bank as provided by Subchapter G (Conversion of Other Financial Institution to Savings Bank), Chapter 92, Finance Code, on the effective date of this Act, except that a savings and loan association is prohibited from being required to submit an application for conversion and is entitled to retain and continue to use the association's corporate name. (b) Requires the Finance Commission, by rule, to provide for a plan of conversion relating to the conversion of savings and loan associations as required by this section. (c) Provides that any reference in the law to a savings and loan association organized under the laws of this state, including reference to a savings and loan association or state savings association, means a state-chartered savings bank as provided by Subtitle C (Savings Banks), Title 3, Finance Code. SECTION 10. (a) Effective date: September 1, 1999. (b) Establishes that the name of the Savings and Loan Department is changed to the Savings Bank Department (department), and the name of the savings and loan commissioner is changed to the savings bank commissioner. Provides for conforming changes to any reference in the law. (c) Requires the department to use all existing stationery and other supplies before using supplies reflecting the change in name. (d) Provides that the validity of a form, procedure adopted, proceeding begun, or other action taken by or in connection with the authority of the Savings and Loan Department before the change of its name is not affected by this Act. Provides that to the extent those actions continue to have any effect on or after September 1, 1999, they are considered to be the actions of the department. (e) Provides that any appropriation made to the Savings and Loan Department is available to the department under its name as changed by this Act. SECTION 11. Emergency clause.