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Texas Senate Bill SB763

Texas 2011 - 82nd Regular

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11 By: Ellis S.B. No. 763
22 (In the Senate - Filed February 17, 2011; February 23, 2011,
33 read first time and referred to Committee on Business and Commerce;
44 March 7, 2011, reported adversely, with favorable Committee
55 Substitute by the following vote: Yeas 7, Nays 0; March 7, 2011,
66 sent to printer.)
77 COMMITTEE SUBSTITUTE FOR S.B. No. 763 By: Van de Putte
88
99
1010 A BILL TO BE ENTITLED
1111 AN ACT
1212 relating to the designation of certain areas as banking development
1313 districts to encourage the establishment of financial institution
1414 branches in those areas.
1515 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1616 SECTION 1. Subtitle Z, Title 3, Finance Code, is amended by
1717 adding Chapter 279 to read as follows:
1818 CHAPTER 279. BANKING DEVELOPMENT DISTRICTS
1919 SUBCHAPTER A. GENERAL PROVISIONS
2020 Sec. 279.001. DEFINITIONS. In this chapter:
2121 (1) "Finance commission" means the Finance Commission
2222 of Texas.
2323 (2) "Financial institution" means a state or national
2424 bank, a state or federal savings bank, or a state or federal savings
2525 and loan association.
2626 (3) "Local government" means a municipality or county.
2727 [Sections 279.002-279.050 reserved for expansion]
2828 SUBCHAPTER B. POWERS AND DUTIES OF FINANCE COMMISSION
2929 Sec. 279.051. ADMINISTRATION OF PROGRAM. The finance
3030 commission shall administer and monitor a banking development
3131 district program under this chapter to encourage the establishment
3232 of branches of a financial institution in geographic areas where
3333 there is a demonstrated need for banking services.
3434 Sec. 279.052. RULES. (a) Subject to Subsection (b), the
3535 finance commission shall adopt rules to implement this chapter.
3636 (b) The finance commission, in consultation with the Texas
3737 Economic Development and Tourism Office, shall adopt rules
3838 regarding the criteria for the designation of banking development
3939 districts under this chapter. The rules must require the finance
4040 commission to consider:
4141 (1) the location, number, and proximity of sites where
4242 banking services are available in the proposed district;
4343 (2) consumer needs for banking services in the
4444 proposed district;
4545 (3) the economic viability and local credit needs of
4646 the community in the proposed district;
4747 (4) the existing commercial development in the
4848 proposed district; and
4949 (5) the impact additional banking services would have
5050 on potential economic development in the proposed district.
5151 [Sections 279.053-279.100 reserved for expansion]
5252 SUBCHAPTER C. DESIGNATION OF BANKING DEVELOPMENT DISTRICT
5353 Sec. 279.101. APPLICATION FOR DESIGNATION OF BANKING
5454 DEVELOPMENT DISTRICT. A local government, in conjunction with a
5555 financial institution, may submit an application to the finance
5656 commission for the designation of a banking development district.
5757 Sec. 279.102. APPLICATION BY FINANCIAL INSTITUTION TO OPEN
5858 BRANCH IN DISTRICT. A financial institution may apply to open a
5959 branch in the banking development district at the time the local
6060 government submits an application in conjunction with the
6161 institution under Section 279.101.
6262 Sec. 279.103. APPLICATION BY FINANCIAL INSTITUTION WITH
6363 EXISTING BRANCH IN PROPOSED DISTRICT. (a) A local government may
6464 submit an application under Section 279.101 in conjunction with a
6565 financial institution that operates a branch in the proposed
6666 banking development district at the time the application is
6767 submitted, if the branch was opened after December 31, 2010.
6868 (b) The finance commission shall consider the importance
6969 and benefits of preserving the banking services offered by the
7070 branch located in the proposed district in making a determination
7171 under Section 279.104.
7272 Sec. 279.104. DETERMINATION BY FINANCE COMMISSION.
7373 (a) Not later than the 91st day after the date an application for
7474 the designation of a banking development district is submitted
7575 under Section 279.101, the finance commission shall make a
7676 determination regarding whether to approve the application.
7777 (b) If the finance commission approves the application, the
7878 finance commission shall notify the:
7979 (1) local government;
8080 (2) financial institution;
8181 (3) comptroller;
8282 (4) Texas Economic Development and Tourism Office;
8383 (5) lieutenant governor; and
8484 (6) speaker of the house of representatives.
8585 [Sections 279.105-279.150 reserved for expansion]
8686 SUBCHAPTER D. DEPOSIT OF PUBLIC FUNDS IN BANKING DISTRICT
8787 DEPOSITORY
8888 Sec. 279.151. DESIGNATION OF BANKING DISTRICT DEPOSITORY.
8989 (a) The governing body of a local government in which a banking
9090 development district has been designated under Subchapter C may by
9191 resolution designate a financial institution located in the
9292 district as a banking district depository for purposes of this
9393 subchapter.
9494 (b) A resolution adopted under Subsection (a) must specify
9595 the maximum amount that may be kept on deposit with the banking
9696 district depository.
9797 (c) In calculating the yield under Section 2256.006,
9898 Government Code, of public funds deposited in a banking district
9999 depository, the governing body of a local government may consider
100100 the benefit to this state of stimulating economic development.
101101 Sec. 279.152. DEPOSIT OF PUBLIC FUNDS BY LOCAL GOVERNMENT.
102102 (a) A local government may deposit public funds with a financial
103103 institution designated as a banking district depository under
104104 Section 279.151 regardless of whether the financial institution is
105105 designated by the comptroller as a state depository under
106106 Subchapter C, Chapter 404, Government Code.
107107 (b) Subject to an agreement between the governing body and
108108 the banking district depository, public funds deposited in the
109109 banking district depository may earn a fixed interest rate that is
110110 at or below the financial institution's posted two-year certificate
111111 of deposit rate. The terms of the agreement must be specified in
112112 the resolution adopted under Section 279.151.
113113 Sec. 279.153. DEPOSIT OF PUBLIC FUNDS BY STATE. (a) If the
114114 comptroller designates the financial institution as a state
115115 depository under Subchapter C, Chapter 404, Government Code, the
116116 comptroller may deposit public funds with a financial institution
117117 designated as a banking district depository under Section 279.151.
118118 (b) For purposes of Subsection (a), a financial institution
119119 is subject to the collateral requirements of Section 404.031,
120120 Government Code.
121121 (c) Subject to an agreement between the comptroller and the
122122 banking district depository, public funds deposited in the banking
123123 district depository may earn a fixed interest rate that is at or
124124 below the financial institution's posted two-year certificate of
125125 deposit rate.
126126 (d) In calculating the yield under Section 2256.006,
127127 Government Code, of public funds deposited in a banking district
128128 depository, the comptroller may consider the benefit to this state
129129 of stimulating economic development.
130130 [Sections 279.154-279.200 reserved for expansion]
131131 SUBCHAPTER E. BANKING DISTRICT BENEFITS
132132 Sec. 279.201. TAX ABATEMENT. The governing body of a local
133133 government may enter into a tax abatement agreement as provided by
134134 Chapter 312, Tax Code, with a financial institution that owns
135135 property in a banking development district on which the financial
136136 institution establishes or operates a branch.
137137 SECTION 2. Subchapter B, Chapter 312, Tax Code, is amended
138138 by adding Section 312.2012 to read as follows:
139139 Sec. 312.2012. BANKING DEVELOPMENT DISTRICT. (a) The
140140 designation of an area as a banking development district under
141141 Chapter 279, Finance Code, constitutes designation of the area as a
142142 reinvestment zone under this subchapter without further hearing or
143143 other procedural requirements other than those provided by Chapter
144144 279, Finance Code, except that property is eligible for tax
145145 abatement under this subchapter only if the property is owned by a
146146 financial institution as defined by Section 279.001, Finance Code,
147147 and the financial institution establishes or operates a branch on
148148 the property.
149149 (b) The designation of an area as a reinvestment zone under
150150 this section is for purposes of this subchapter only and not for
151151 purposes of any other law, including Chapters 311 and 313.
152152 SECTION 3. Subchapter C, Chapter 312, Tax Code, is amended
153153 by adding Section 312.4012 to read as follows:
154154 Sec. 312.4012. BANKING DEVELOPMENT DISTRICT. (a) The
155155 designation of an area as a banking development district under
156156 Chapter 279, Finance Code, constitutes designation of the area as a
157157 reinvestment zone under this subchapter without further hearing or
158158 other procedural requirements other than those provided by Chapter
159159 279, Finance Code, except that property is eligible for tax
160160 abatement under this subchapter only if the property is owned by a
161161 financial institution as defined by Section 279.001, Finance Code,
162162 and the financial institution establishes or operates a branch on
163163 the property.
164164 (b) The designation of an area as a reinvestment zone under
165165 this section is for purposes of this subchapter only and not for
166166 purposes of any other law, including Chapters 311 and 313.
167167 SECTION 4. Not later than January 1, 2012, the Finance
168168 Commission of Texas shall adopt rules governing the designation of
169169 banking development districts, as required by Chapter 279, Finance
170170 Code, as added by this Act.
171171 SECTION 5. This Act takes effect immediately if it receives
172172 a vote of two-thirds of all the members elected to each house, as
173173 provided by Section 39, Article III, Texas Constitution. If this
174174 Act does not receive the vote necessary for immediate effect, this
175175 Act takes effect September 1, 2011.
176176 * * * * *