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HB 2024, Texas Credit Union Department SDSI Status
Tuesday, March 10, 2015 6:55 AM

A hearing has been scheduled Wednesday, March 11, 2015, in the House State Affairs Committee on HB 2024 by Rep. Larry Gonzales. This bill moves the legal authority for the Self-Directed Semi-Independent (SDSI) budget status for the Texas Credit Union Department to the Government code from the Finance code. This stems from a recommendation by the Sunset Commission in December of last year to create a process for state agencies to obtain the SDSI status, or for the Legislature to bring an agency back under the appropriations process.

It also establishes a bureaucracy to require additional reporting from agencies that have the SDSI status, review SDSI applications by state agencies, or recommend bringing agencies back under the appropriations process. The Sunset Commission made several changes to the report that would have been problematic for credit unions, including one that would have swept funds from the agency to the general revenue fund of the state. The League believes the current construct in the Finance Code is working well and is continuing to work with the author and members of the Legislature on the bill.

Senator “Chuy” Hinojosa filed SB 217 March 5, 2015, which is identical to HB 2024. No hearing has been scheduled on this bill. There are some senators who have expressed their dislike for the SDSI program, preferring that all agencies go through the appropriations process to obtain funding. The SDSI program has been helpful to the TCUD by allowing them to provide competitive salaries for examiners and staff to avoid the 63 percent turnover rate the agency once had due to limits the Legislature imposed on increasing the TCUD budget.

If you have any questions, please contact Jeff Huffman, president, Texas Credit Union Association, at (469) 385-6488 or jhuffman@txcua.coop.