diff --git a/indra/newview/llpanelgroupgeneral.cpp b/indra/newview/llpanelgroupgeneral.cpp
index d17f5494a05e1fddc4a7617e6fe468bd0c89680c..f85a2ffbc150be022b4d62c01faee2aa60c4e44a 100644
--- a/indra/newview/llpanelgroupgeneral.cpp
+++ b/indra/newview/llpanelgroupgeneral.cpp
@@ -194,6 +194,7 @@ void LLPanelGroupGeneral::setupCtrls(LLPanel* panel_group)
 	if (mInsignia)
 	{
 		mInsignia->setCommitCallback(onCommitAny, this);
+		mInsignia->setAllowLocalTexture(FALSE);
 	}
 	mFounderName = getChild<LLTextBox>("founder_name");
 
diff --git a/indra/newview/lltexturectrl.cpp b/indra/newview/lltexturectrl.cpp
index c7adaa908f7e7a7b91573e63e9e78ef6e2456f7f..a5a2eec24613cd99695fe3968b4a78de472f6fa3 100644
--- a/indra/newview/lltexturectrl.cpp
+++ b/indra/newview/lltexturectrl.cpp
@@ -990,6 +990,7 @@ LLTextureCtrl::LLTextureCtrl(const LLTextureCtrl::Params& p)
 	mOnSelectCallback(NULL),
 	mBorderColor( p.border_color() ),
 	mAllowNoTexture( FALSE ),
+	mAllowLocalTexture( TRUE ),
 	mImmediateFilterPermMask( PERM_NONE ),
 	mNonImmediateFilterPermMask( PERM_NONE ),
 	mCanApplyImmediately( FALSE ),
@@ -1198,6 +1199,12 @@ void LLTextureCtrl::showPicker(BOOL take_focus)
 		floaterp->openFloater();
 	}
 
+	LLFloaterTexturePicker* picker_floater = dynamic_cast<LLFloaterTexturePicker*>(floaterp);
+	if (picker_floater)
+	{
+		picker_floater->setLocalTextureEnabled(mAllowLocalTexture);
+	}
+
 	if (take_focus)
 	{
 		floaterp->setFocus(TRUE);
diff --git a/indra/newview/lltexturectrl.h b/indra/newview/lltexturectrl.h
index 840feddfaf151c7db37d73a3dcf2778411a18b35..6bcf9c3a7522ec7bc403db126562f0ce184d50db 100644
--- a/indra/newview/lltexturectrl.h
+++ b/indra/newview/lltexturectrl.h
@@ -142,6 +142,9 @@ class LLTextureCtrl
 	void			setAllowNoTexture( BOOL b )					{ mAllowNoTexture = b; }
 	bool			getAllowNoTexture() const					{ return mAllowNoTexture; }
 
+	void			setAllowLocalTexture(BOOL b)					{ mAllowLocalTexture = b; }
+	BOOL			getAllowLocalTexture() const					{ return mAllowLocalTexture; }
+
 	const LLUUID&	getImageItemID() { return mImageItemID; }
 
 	virtual void	setImageAssetName(const std::string& name);
@@ -222,6 +225,7 @@ class LLTextureCtrl
 	LLTextBox*				 	mCaption;
 	std::string				 	mLabel;
 	BOOL					 	mAllowNoTexture; // If true, the user can select "none" as an option
+	BOOL						mAllowLocalTexture;
 	PermissionMask			 	mImmediateFilterPermMask;
 	PermissionMask				mDnDFilterPermMask;
 	PermissionMask			 	mNonImmediateFilterPermMask;