Texas 2009 - 81st Regular

Texas Senate Bill SB825

Filed
 
Out of House Committee
 
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the designation of certain areas as banking development districts to encourage the establishment of financial institution branches in those areas.

Impact

The passage of SB825 would significantly amend state finance laws by introducing provisions specifically designed to support the formation of banking development districts. Local governments would gain greater authority to direct public funds to designated banking institutions, and these institutions could benefit from specific tax abatement agreements to incentivize their operations in these districts. It is anticipated that this facilitation of banking services would enhance community economic resilience and growth, particularly in areas that historically lack adequate financial institutions.

Summary

SB825 aims to establish 'banking development districts' in Texas to promote the establishment of branches of financial institutions in areas where banking needs are underserved. The legislation provides a framework for local governments to partner with financial institutions to apply for the designation of such districts, thereby making it easier to open new branches where there is a demonstrable need. This initiative seeks to stimulate economic development by increasing access to banking services in targeted communities, thus facilitating financial inclusion and support for local businesses.

Contention

While the bill is designed to foster economic growth, it may face scrutiny regarding the efficacy of tax incentives and whether they result in significant benefits to the communities they are intended to serve. Critics could argue that focusing on tax abatements might lead to reduced revenue for local governments, which could detract from other public services. Additionally, considerations regarding the criteria for determining which areas qualify as banking development districts could spark debate, particularly if some communities perceive that their needs are being overlooked.

Companion Bills

TX HB4072

Identical Relating to the designation of certain areas as banking development districts to encourage the establishment of financial institution branches in those areas.

Previously Filed As

TX SB1823

Relating to the provision by the Texas Water Development Board of financial assistance for the development of residential drainage projects in economically distressed areas.

TX HB4299

Relating to the provision of financial assistance by the Texas Water Development Board for the development of certain projects in economically distressed areas.

TX SB2234

Relating to the provision of financial assistance by the Texas Water Development Board for the development of certain projects in economically distressed areas.

TX SB28

Relating to financial assistance provided and programs administered by the Texas Water Development Board.

TX HB5352

Relating to the approval and creation of the Williamson County Development District No. 1; and to the administration, powers, duties, operation, and financing of the district, including the authority to impose an assessment, a tax, and issue bonds.

TX SB1246

Relating to authorized investments of public money by certain governmental entities and the confidentiality of certain information related to those investments.

TX SB1987

Relating to the accreditation of certain postsecondary educational institutions in this state or of certain programs offered by those institutions.

TX HB1515

Relating to the continuation and functions of and certain programs subject to rules adopted by the Texas Economic Development and Tourism Office.

TX HB1718

Relating to rural development funds and insurance tax credits for certain investments in those funds; authorizing fees.

TX HB3495

Relating to the investment authority of certain state agencies and the confidentiality of certain information related to those investments.

Similar Bills

TX HB1626

Relating to the designation of certain areas as banking or credit union development districts to encourage the establishment of branches of banks or credit unions in those areas.

TX SB763

Relating to the designation of certain areas as banking development districts to encourage the establishment of financial institution branches in those areas.

TX HB4072

Relating to the designation of certain areas as banking development districts to encourage the establishment of financial institution branches in those areas.

TX HB2675

Relating to the deposit of funds into court registries by the clerks of justice courts.

TX HB2488

Relating to open-source textbooks and other instructional materials for public schools.

TX HB3185

Relating to the creation and operations of health care provider participation programs in certain counties.

TX HB1023

Relating to the terms and qualifications of the members of the port commission of, and the powers, duties, and territory of, the Port of Harlingen Authority; authorizing the imposition of a tax.

TX SB635

Relating to the terms and qualifications of the members of the port commission of, and the powers, duties, and territory of, the Port of Harlingen Authority; authorizing the imposition of a tax.