Texas CU Reform Bill Excludes Provision Allowing CUs to Acquire Banks

FARMERS BRANCH, Texas – Contrary to reports filed by other credit union publications, the Texas credit union modernization bill – HB 1307 – that was voted out of the state House Financial Institutions Committee on March 26, does not include a provision allowing credit unions to acquire banks. Ann Graham, then general counsel for the Texas Credit Union League said that provision was dropped. Among the provisions of the measure, it would: allow CUs to offer check cashing and wire transfers to non-members in their field-of-membership, allow low-income credit unions to issue secondary capital accounts to members or non-members with the commissioner’s approval and accept shares and deposits from non-members; allow a CU to terminate or suspend a membership if a member verbally or physically abuses a credit union member or employee; allow a CU to authorize voting by mail or by electronic balloting; and requires CUs to file quarterly call reports. The bill was sent to the House floor for a hearing, but Graham said no date has been set. The legislative session ends the end of May.