S.B. No. 1791

	AN ACT
	relating to disclosures on selection or modification of an account
	by a customer of a financial institution.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 113.053, Estates Code, is amended to
	read as follows:
	Sec. 113.053.  REQUIRED DISCLOSURE; USE OF FORM[;
	DISCLOSURE].  (a)  A financial institution shall disclose the
	information provided in this subchapter to a customer at the time
	the customer selects or modifies an account.  A financial
	institution is considered to have [adequately] disclosed the
	information provided in this subchapter if:
	(1)  the financial institution uses the form provided
	by Section 113.052; and
	(2)  the customer places the customer's initials to the
	right of each paragraph of the form.
	(b)  If a financial institution varies the format of the form
	provided by Section 113.052, the financial institution may make
	disclosures in the account agreement or in any other form that
	[adequately] discloses the information provided by this
	subchapter.  Disclosures under this subsection must:
	(1)  be given separately from other account
	information;
	(2)  be provided before account selection or
	modification;
	(3)  be printed in 14-point boldfaced type; and
	(4)  if the discussions that precede the account
	opening or modification are conducted primarily in a language other
	than English, be in that language.
	(c)  The financial institution shall notify the customer of
	the type of account the customer selected [If the customer receives
	adequate disclosure of the ownership rights to an account and the
	names of the parties are appropriately indicated, a financial
	institution may combine any of the provisions in, and vary the
	format of, the form and notices described in Section 113.052 in:
	[(1)     a universal account form with options listed for
	selection and additional disclosures provided in the account
	agreement; or
	[(2)     any other manner that adequately discloses the
	information provided by this subchapter].
	(d)  This section does not apply to a credit union.
	SECTION 2.  Subchapter B, Chapter 113, Estates Code, is
	amended by adding Section 113.0531 to read as follows:
	Sec. 113.0531.  USE OF FORM AND DISCLOSURE BY CREDIT UNIONS.
	(a)  A credit union is considered to have disclosed the information
	provided by this subchapter if the credit union uses the form
	provided by Section 113.052.
	(b)  If a credit union varies the format of the form provided
	by Section 113.052, the credit union may make disclosures in the
	account agreement or in any other form that discloses the
	information provided by this subchapter.
	(c)  If the customer receives disclosure of the ownership
	rights to an account and the names of the parties are indicated, a
	credit union may combine any of the provisions in, and vary the
	format of, the form and notices described in Section 113.052 in:
	(1)  a universal account form with options listed for
	selection and additional disclosures provided in the account
	agreement; or
	(2)  any other manner that adequately discloses the
	information provided by this subchapter.
	SECTION 3.  This Act applies only to an account created or
	modified on or after the effective date of this Act. An account
	created or modified before the effective date of this Act is
	governed by the law in effect when the account was created or
	modified, and the former law is continued in effect for that
	purpose.
	SECTION 4.  This Act takes effect September 1, 2015.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 1791 passed the Senate on
	April 20, 2015, by the following vote:  Yeas 29, Nays 1.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 1791 passed the House on
	May 11, 2015, by the following vote:  Yeas 118, Nays 7, one
	present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor