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Texas Senate Bill SB825

Texas 2009 - 81st Regular

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11 81R1584 KFF-D
22 By: Ellis S.B. No. 825
33
44
55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the designation of certain areas as banking development
88 districts to encourage the establishment of financial institution
99 branches in those areas.
1010 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1111 SECTION 1. Subtitle Z, Title 3, Finance Code, is amended by
1212 adding Chapter 279 to read as follows:
1313 CHAPTER 279. BANKING DEVELOPMENT DISTRICTS
1414 SUBCHAPTER A. GENERAL PROVISIONS
1515 Sec. 279.001. DEFINITIONS. In this chapter:
1616 (1) "Finance commission" means the Finance Commission
1717 of Texas.
1818 (2) "Financial institution" means a state or national
1919 bank, a state or federal savings bank, or a state or federal savings
2020 and loan association.
2121 (3) "Local government" means a municipality or county.
2222 [Sections 279.002-279.050 reserved for expansion]
2323 SUBCHAPTER B. POWERS AND DUTIES OF FINANCE COMMISSION
2424 Sec. 279.051. ADMINISTRATION OF PROGRAM. The finance
2525 commission shall administer and monitor a banking development
2626 district program under this chapter to encourage the establishment
2727 of branches of a financial institution in geographic areas where
2828 there is a demonstrated need for banking services.
2929 Sec. 279.052. RULES. (a) Subject to Subsection (b), the
3030 finance commission shall adopt rules to implement this chapter.
3131 (b) The finance commission, in consultation with the Texas
3232 Economic Development and Tourism Office, shall adopt rules
3333 regarding the criteria for the designation of banking development
3434 districts under this chapter. The rules must require the finance
3535 commission to consider:
3636 (1) the location, number, and proximity of sites where
3737 banking services are available in the proposed district;
3838 (2) consumer needs for banking services in the
3939 proposed district;
4040 (3) the economic viability and local credit needs of
4141 the community in the proposed district;
4242 (4) the existing commercial development in the
4343 proposed district; and
4444 (5) the impact additional banking services would have
4545 on potential economic development in the proposed district.
4646 [Sections 279.053-279.100 reserved for expansion]
4747 SUBCHAPTER C. DESIGNATION OF BANKING DEVELOPMENT DISTRICT
4848 Sec. 279.101. APPLICATION FOR DESIGNATION OF BANKING
4949 DEVELOPMENT DISTRICT. A local government, in conjunction with a
5050 financial institution, may submit an application to the finance
5151 commission for the designation of a banking development district.
5252 Sec. 279.102. APPLICATION BY FINANCIAL INSTITUTION TO OPEN
5353 BRANCH IN DISTRICT. A financial institution may apply to open a
5454 branch in the district at the time the local government submits an
5555 application in conjunction with the institution under Section
5656 279.101.
5757 Sec. 279.103. APPLICATION BY FINANCIAL INSTITUTION WITH
5858 EXISTING BRANCH IN PROPOSED DISTRICT. (a) A local government may
5959 submit an application under Section 279.101 in conjunction with a
6060 financial institution that operates a branch in the proposed
6161 district at the time the application is submitted, if the branch was
6262 opened after December 31, 1996.
6363 (b) The finance commission shall consider the importance
6464 and benefits of preserving the banking services offered by the
6565 branch located in the proposed district in making a determination
6666 under Section 279.104.
6767 Sec. 279.104. DETERMINATION BY FINANCE COMMISSION. (a)
6868 Not later than the 91st day after the date an application for the
6969 designation of a banking development district is submitted under
7070 Section 279.101, the finance commission shall make a determination
7171 regarding whether to approve the application.
7272 (b) If the finance commission approves the application, the
7373 finance commission shall notify the:
7474 (1) local government;
7575 (2) financial institution;
7676 (3) comptroller;
7777 (4) Texas Economic Development and Tourism Office;
7878 (5) lieutenant governor; and
7979 (6) speaker of the house of representatives.
8080 [Sections 279.105-279.150 reserved for expansion]
8181 SUBCHAPTER D. DEPOSIT OF PUBLIC FUNDS IN BANKING DISTRICT
8282 DEPOSITORY
8383 Sec. 279.151. DESIGNATION OF BANKING DISTRICT
8484 DEPOSITORY. (a) The governing body of a local government in which
8585 a banking development district has been designated under Subchapter
8686 C may by resolution designate a financial institution located in
8787 the district as a banking district depository for purposes of this
8888 subchapter regardless of whether the financial institution is
8989 designated by the comptroller as a state depository under
9090 Subchapter C, Chapter 404, Government Code.
9191 (b) A resolution adopted under Subsection (a) must specify
9292 the maximum amount that may be kept on deposit with the banking
9393 district depository.
9494 (c) In calculating the yield under Section 2256.006,
9595 Government Code, of public funds deposited in a banking district
9696 depository, the governing body of a local government may consider
9797 the benefit to this state of stimulating economic development.
9898 Sec. 279.152. DEPOSIT OF PUBLIC FUNDS BY LOCAL
9999 GOVERNMENT. (a) A local government may deposit public funds with
100100 a financial institution designated as a banking district depository
101101 under Section 279.151.
102102 (b) Subject to an agreement between the governing body and
103103 the banking district depository, public funds deposited in the
104104 banking district depository may earn a fixed interest rate that is
105105 at or below the financial institution's posted two year certificate
106106 of deposit rate. The terms of the agreement must be specified in
107107 the resolution adopted under Section 279.151.
108108 Sec. 279.153. DEPOSIT OF PUBLIC FUNDS BY STATE. (a) The
109109 comptroller may deposit public funds with a financial institution
110110 designated as a banking district depository under Section 279.151.
111111 (b) Subject to an agreement between the comptroller and the
112112 banking district depository, public funds deposited in the banking
113113 district depository may earn a fixed interest rate that is at or
114114 below the financial institution's posted two year certificate of
115115 deposit rate.
116116 (c) In calculating the yield under Section 2256.006,
117117 Government Code, of public funds deposited in a banking district
118118 depository, the comptroller may consider the benefit to this state
119119 of stimulating economic development.
120120 [Sections 279.154-279.200 reserved for expansion]
121121 SUBCHAPTER E. BANKING DISTRICT BENEFITS
122122 Sec. 279.201. TAX ABATEMENT. The governing body of a local
123123 government may enter into a tax abatement agreement as provided by
124124 Chapter 312, Tax Code, with a financial institution that owns
125125 property in a banking development district.
126126 SECTION 2. Subchapter B, Chapter 312, Tax Code, is amended
127127 by adding Section 312.2012 to read as follows:
128128 Sec. 312.2012. BANKING DEVELOPMENT DISTRICT. The
129129 designation of an area as a banking development district under
130130 Chapter 279, Finance Code, constitutes designation of the area as a
131131 reinvestment zone under this subchapter without further hearing or
132132 other procedural requirements other than those provided by Chapter
133133 279, Finance Code, except that property is eligible for tax
134134 abatement under this subchapter only if the property is owned by a
135135 financial institution as defined by Section 279.001, Finance Code.
136136 SECTION 3. Subchapter C, Chapter 312, Tax Code, is amended
137137 by adding Section 312.4012 to read as follows:
138138 Sec. 312.4012. BANKING DEVELOPMENT DISTRICT. The
139139 designation of an area as a banking development district under
140140 Chapter 279, Finance Code, constitutes designation of the area as a
141141 reinvestment zone under this subchapter without further hearing or
142142 other procedural requirements other than those provided by Chapter
143143 279, Finance Code, except that property is eligible for tax
144144 abatement under this subchapter only if the property is owned by a
145145 financial institution as defined by Section 279.001, Finance Code.
146146 SECTION 4. Not later than January 1, 2010, the Finance
147147 Commission of Texas shall adopt rules governing the designation of
148148 banking development districts, as required by Chapter 279, Finance
149149 Code, as added by this Act.
150150 SECTION 5. This Act takes effect immediately if it receives
151151 a vote of two-thirds of all the members elected to each house, as
152152 provided by Section 39, Article III, Texas Constitution. If this
153153 Act does not receive the vote necessary for immediate effect, this
154154 Act takes effect September 1, 2009.