Opinion No.
Background
- Feeney requests guidance on the scope of the 'enlargement of powers' in Texas Finance Code §123.003(a) for state-chartered credit unions (SCCUs).
- §123.003(a) permits SCCUs to engage in any activity or loan as if they were a federal credit union, raising questions about parity with federal regulation.
- §124.002 sets the maximum interest rate SCCUs may charge (1.5% per month) and allows a higher rate 'authorized by law,' including Chapter 303.
- The opinion analyzes whether parity with federal regulation allows SCCUs to charge federally established rates higher than §124.002.
- The analysis emphasizes statutory hierarchy: specific §124.002 controls over the general §123.003(a) when rates conflict.
- The opinion discusses the extent to which §123.003(a) activities can be limited by state law, commissioner action, or commission rules, and how federal regulations are applied over time.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does §123.003(a) permit higher rates than §124.002? | SCCUs argue parity with federal regs allows higher rates. | General parity cannot override §124.002's specific rate cap; federal rates do not control Texas law. | Parity cannot authorize higher rates than §124.002; specific statute controls. |
| Are §123.003 activities limited by state law or commission rules? | §123.003 grants broad authority subject to other laws. | Commissioner and rules may limit §123.003 activities as reasonably necessary for express authority and §121.0011 purposes. | Commissioner rules may limit §123.003 activities to the extent reasonably necessary. |
| Can the commissioner enforce restrictions tied to federal loan regulations under §123.003? | Federal restrictions may be enforceable via state supervision. | Enforcement is limited to what is necessary for state-law supervision and regulation. | The commissioner may enforce restrictions to the extent necessary for state supervision. |
| Is a SCCU's §123.003 authority determined by federal law at the time of exercise or at the time of enactment? | Authority could reflect evolving federal standards. | Authority is determined by federal law as it exists at the time the SCCU engages in the activity. | Authority is determined by federal law as it exists at the time of exercise. |
Key Cases Cited
- In re UnitedServs. Auto. Ass'n, 307 S.W.3d 299 (Tex. 2010) (harmonization of statutes and legislative intent)
- Horizon/CMS Healthcare Corp. v. Auld, 34 S.W.3d 887 (Tex. 2000) (specific over general statutory construction)
- Ex parte Elliott, 973 S.W.2d 737 (Tex. App.—Austin 1998) (avoidance of unilateral delegation to federal agency)
- City of San Antonio v. City of Boerne, 111 S.W.3d 22 (Tex. 2003) (construction to avoid rendering specific grants superfluous)