FARMERS BRANCH, Texas (5/13/15)--Both state- and federally chartered credit unions in Texas would be exempt from legislation that adds new requirements to payable-on-death accounts passed in the Texas House Monday.
As originally filed, Senate Bill 1791, sponsored by Sen. Rodney Ellis (D-Houston) and Rep Jessica Farrar (D-Houston), covered all financial institutions. The Texas Credit Union Association worked with Ellis and Farrar to add an exemption for credit unions in the bill before it passed the Senate April 20 (Leaguer May 12).
When the Texas House took up the bill on Monday, an amendment putting the credit unions back into the bill was offered by Rep. Travis Clardy (R-Nacogdoches).
Farrar, sponsor of the bill in the House, refused to accept the amendment and made a motion to table the amendment.
Rep. Dan Flynn (R-Van) spoke in support of the motion, saying that the costs to not-for-profit credit unions for the new disclosures were too great and that credit unions deserved the exemption. House members agreed and voted down the amendment 85-39. The House then voted to pass SB 1791 by a vote of 118-7.
“Texas credit unions once again did a super job of contacting their representatives in response to a legislative alert to support the credit union amendment today,” said Jeff Huffman, president of the Texas Credit Union Association.
HB 1628 by Rep. Eric Johnson (D-Dallas), which would allow prize-linked savings accounts in Texas, was scheduled on the House consent calendar for Tuesday.
The bill allows savings promotion raffles to be conducted by credit unions or other financial institutions without running afoul of the anti-raffle laws.
The bill, which is supported by the Texas Credit Union Association, was heard in the House Investments and Financial Services Committee several weeks ago.