HBA-TYH H.B. 2745 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2745
By: Wise
Financial Institutions
3/31/1999
Introduced



BACKGROUND AND PURPOSE 

Current Texas law requires state-chartered credit unions to provide public
information through the Texas Register when expanding their charters.
Federal credit unions do not have to provide any type of public
notification.  During the period when state-chartered credit unions must
provide public notice before being granted permission to expand or change,
the federal credit unions have an opportunity to adjust their business
plans, object to the expansion or change, and take whatever measures they
feel necessary to protect their operations.  H.B. 2745 requires federal
credit unions to provide the same type of public notification as
state-chartered credit unions when expanding their charters. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Credit Union Commission in SECTION
1 (Section 149.003, Finance Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 149, Finance Code, by adding Section 149.003, as
follows: 
 
Sec. 149.003.  NOTICE REQUIREMENT FOR FEDERAL CREDIT UNION.  Requires a
federal credit union, not later than the 61st day before a federal credit
union doing business in this state is authorized to expand the credit
union's field of membership, to submit notice of the expansion to the
secretary of state for publication in the Texas Register.  Requires the
Credit Union Commission, by rule, to provide for other appropriate public
notice relating to the expansion of membership.  

SECTION 2.  Emergency clause.
  Effective date: upon passage.