Untitled Texas Attorney General Opinion, GA-0882

This opinion answers questions from the Commissioner of the Credit Union Department about the scope of 123.003(a) 'Enlargement of Powers' for state-chartered credit unions (SCCUs).
Section 124.002 sets a maximum interest rate for SCCU loans, with a default cap of 1.5% per month and a provision that higher rates may be authorized by law (including Chapter 303).
Pleadings urge that 123.003(a) parity with federal credit unions could permit SCCUs to charge federally established rates higher than Texas limits.
The analysis discusses statutory hierarchy: a specific rate cap in 124.002 generally controls over the broader general grant in 123.003(a).
The opinion also addresses whether 123.003(a) is constrained by other Texas laws, commissioner actions, or rules, and whether authority is fixed to federal standards at enactment or adapts over time.
The conclusion affirms limits on 123.003(a) parity, clarifies that SCCUs’ authority is bounded by 124.002 and state supervision, and states that federal-law references apply at the time the activity is undertaken.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Can SCCUs charge federally established higher interest rates under 123.003(a) whenever federal rates exceed 124.002?	Par 123.003(a) and parity with federal unions permit higher rates.	Higher rates must be governed by 124.002; parity cannot override specific cap.	No; 124.002 controls; cannot exceed Texas rate cap.
Are SCCU activities under 123.003(a) limited by other Texas laws or by commissioner action/rules?	Par 123.003(a) broadly enables activities; not limited by other laws.	Commissioner and rules may limit activities reasonably to exercise authority.	Commissioner/rules may limit under their express authority and the purposes of 121.0011.
Can the commissioner enforce federal-regulation restrictions on activities authorized by 123.003(a)?	Federal restrictions should be enforceable under parity.	Enforcement is limited to state-law supervision and regulation needs.	Yes; enforce restrictions as necessary for state supervision.
Does 123.003(a) refer to federal law as of enactment or as it evolves over time?	Federal standards as they stood when SCCU acts.	Federal standards at enactment should govern.	Authority is determined by federal law applicable at the time the activity occurs.

In re United Servs. Auto. Ass'n, 307 S.W.3d 299 (Tex. 2010) (statutory interpretation and harmonization guidance)
Horizon/CMS Healthcare Corp. v. Auld, 458 S.W.3d 351 (Tex. 2000) (specific over general statute controls; not needed for balance of powers)
Ex parte Elliott, 973 S.W.2d 737 (Tex. App.—Austin 1998) (constitutional concerns about delegating to federal agencies to define Texas law)
City of San Antonio v. Boerne, 111 S.W.3d 22 (Tex. 2003) (limits of broad statutory readings; respect for specific grants)