Texas 2015 - 84th Regular

Texas House Bill HB1626 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Johnson, et al. (Senate Sponsor - West) H.B. No. 1626
2		-	(In the Senate - Received from the House May 11, 2015;
3		-	May 20, 2015, read first time and referred to Committee on Business
4		-	and Commerce; May 22, 2015, reported favorably by the following
5		-	vote: Yeas 7, Nays 0; May 22, 2015, sent to printer.)
6		-	Click here to see the committee vote
	1	+	H.B. No. 1626
7	2
8	3
9		-	A BILL TO BE ENTITLED
10	4		AN ACT
11	5		relating to the designation of certain areas as banking or credit
12	6		union development districts to encourage the establishment of
13	7		branches of banks or credit unions in those areas.
14	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	9		SECTION 1. Subtitle Z, Title 3, Finance Code, is amended by
16	10		adding Chapter 279 to read as follows:
17	11		CHAPTER 279. BANKING AND CREDIT UNION DEVELOPMENT DISTRICTS
18	12		SUBCHAPTER A. GENERAL PROVISIONS
19	13		Sec. 279.001. DEFINITIONS. In this chapter:
20	14		(1) "Credit union" means a state or federal credit
21	15		union.
22	16		(2) "Finance commission" means the Finance Commission
23	17		of Texas.
24	18		(3) "Financial institution" means a state or national
25	19		bank, a state or federal savings bank, or a state or federal savings
26	20		and loan association.
27	21		(4) "Local government" means a municipality or county.
28	22		SUBCHAPTER B. BANKING DEVELOPMENT DISTRICTS
29	23		Sec. 279.051. ADMINISTRATION OF PROGRAM. The finance
30	24		commission shall administer and monitor a banking development
31	25		district program under this chapter to encourage the establishment
32	26		of branches of a financial institution in geographic areas where
33	27		there is a demonstrated need for banking services.
34	28		Sec. 279.052. RULES. (a) Subject to Subsection (b), the
35	29		finance commission shall adopt rules to implement this subchapter
36	30		and Subchapter D with respect to financial institutions in banking
37	31		development districts.
38	32		(b) The finance commission, in consultation with the Texas
39	33		Economic Development and Tourism Office, shall adopt rules
40	34		regarding the criteria for the designation of banking development
41	35		districts under this subchapter. The rules must require the
42	36		finance commission to consider:
43	37		(1) the location, number, and proximity of sites where
44	38		banking services are available in the proposed banking development
45	39		district;
46	40		(2) consumer needs for banking services in the
47	41		proposed district;
48	42		(3) the economic viability and local credit needs of
49	43		the community in the proposed district;
50	44		(4) the existing commercial development in the
51	45		proposed district; and
52	46		(5) the impact additional banking services would have
53	47		on potential economic development in the proposed district.
54	48		Sec. 279.053. APPLICATION FOR DESIGNATION OF BANKING
55	49		DEVELOPMENT DISTRICT. A local government, in conjunction with a
56	50		financial institution, may submit an application to the finance
57	51		commission for the designation of a banking development district.
58	52		Sec. 279.054. APPLICATION BY FINANCIAL INSTITUTION TO OPEN
59	53		BRANCH IN DISTRICT. A financial institution may apply to open a
60	54		branch in the proposed banking development district at the time the
61	55		local government submits an application in conjunction with the
62	56		institution under Section 279.053.
63	57		Sec. 279.055. DETERMINATION BY FINANCE COMMISSION. (a)
64	58		Not later than the 120th day after the date an application for the
65	59		designation of a banking development district is submitted under
66	60		Section 279.053, the finance commission shall make a determination
67	61		regarding whether to approve the application.
68	62		(b) If the finance commission approves the application, the
69	63		finance commission shall notify the:
70	64		(1) local government;
71	65		(2) financial institution;
72	66		(3) comptroller;
73	67		(4) Texas Economic Development and Tourism Office;
74	68		(5) lieutenant governor; and
75	69		(6) speaker of the house of representatives.
76	70		SUBCHAPTER C. CREDIT UNION DEVELOPMENT DISTRICTS
77	71		Sec. 279.101. ADMINISTRATION OF PROGRAM. The Credit Union
78	72		Commission shall administer and monitor a credit union development
79	73		district program under this chapter to encourage the establishment
80	74		of branches of a credit union in geographic areas where there is a
81	75		demonstrated need for services provided by a credit union.
82	76		Sec. 279.102. RULES. (a) Subject to Subsection (b), the
83	77		Credit Union Commission shall adopt rules to implement this
84	78		subchapter and Subchapter D with respect to credit unions in credit
85	79		union development districts.
86	80		(b) The Credit Union Commission, in consultation with the
87	81		Texas Economic Development and Tourism Office, shall adopt rules
88	82		regarding the criteria for the designation of credit union
89	83		development districts under this subchapter. The rules must
90	84		require the Credit Union Commission to consider:
91	85		(1) the location, number, and proximity of sites where
92	86		services provided by a credit union are available in the proposed
93	87		credit union development district;
94	88		(2) consumer needs for services provided by a credit
95	89		union in the proposed district;
96	90		(3) the economic viability and local credit needs of
97	91		the community in the proposed district;
98	92		(4) the existing commercial development in the
99	93		proposed district; and
100	94		(5) the impact additional services provided by a
101	95		credit union would have on potential economic development in the
102	96		proposed district.
103	97		Sec. 279.103. APPLICATION FOR DESIGNATION OF CREDIT UNION
104	98		DEVELOPMENT DISTRICT. A local government, in conjunction with a
105	99		credit union, may submit an application to the Credit Union
106	100		Commission for the designation of a credit union development
107	101		district.
108	102		Sec. 279.104. APPLICATION BY CREDIT UNION TO OPEN BRANCH IN
109	103		DISTRICT. A credit union may apply to open a branch in the proposed
110	104		credit union development district at the time the local government
111	105		submits an application in conjunction with the credit union under
112	106		Section 279.103.
113	107		Sec. 279.105. DETERMINATION BY CREDIT UNION COMMISSION.
114	108		(a) Not later than the 120th day after the date an application for
115	109		the designation of a credit union development district is submitted
116	110		under Section 279.103, the Credit Union Commission shall make a
117	111		determination regarding whether to approve the application.
118	112		(b) If the Credit Union Commission approves the
119	113		application, the Credit Union Commission shall notify the:
120	114		(1) local government;
121	115		(2) credit union;
122	116		(3) comptroller;
123	117		(4) Texas Economic Development and Tourism Office;
124	118		(5) lieutenant governor; and
125	119		(6) speaker of the house of representatives.
126	120		SUBCHAPTER D. DEPOSIT OF PUBLIC FUNDS IN DISTRICT DEPOSITORY
127	121		Sec. 279.151. DESIGNATION OF DISTRICT DEPOSITORY. (a) The
128	122		governing body of a local government in which a banking development
129	123		district has been designated under Subchapter B may by resolution
130	124		designate a financial institution located in the district as a
131	125		banking district depository for purposes of this subchapter.
132	126		(b) The governing body of a local government in which a
133	127		credit union development district has been designated under
134	128		Subchapter C may by resolution designate a credit union located in
135	129		the district as a credit union district depository for purposes of
136	130		this subchapter.
137	131		(c) A resolution adopted under Subsection (a) or (b) must
138	132		specify the maximum amount that may be kept on deposit with the
139	133		banking district or credit union district depository, as
140	134		appropriate.
141	135		(d) In calculating the yield under Section 2256.006,
142	136		Government Code, of public funds deposited in a banking district or
143	137		credit union district depository, the governing body of a local
144	138		government may consider the benefit to this state of stimulating
145	139		economic development.
146	140		Sec. 279.152. DEPOSIT OF PUBLIC FUNDS BY LOCAL GOVERNMENT.
147	141		(a) A local government may deposit public funds with a financial
148	142		institution designated as a banking district depository or a credit
149	143		union designated as a credit union district depository under
150	144		Section 279.151 regardless of whether the financial institution or
151	145		credit union is designated by the comptroller as a state depository
152	146		under Subchapter C, Chapter 404, Government Code.
153	147		(b) Subject to an agreement between the governing body and
154	148		the banking district or credit union district depository, public
155	149		funds deposited in the district depository may earn a fixed
156	150		interest rate that is at or below the financial institution's or
157	151		credit union's posted two-year certificate of deposit rate, as
158	152		appropriate. The terms of the agreement must be specified in the
159	153		applicable resolution adopted under Section 279.151.
160	154		Sec. 279.153. DEPOSIT OF PUBLIC FUNDS BY STATE. (a) If the
161	155		comptroller designates the financial institution as a state
162	156		depository under Subchapter C, Chapter 404, Government Code, the
163	157		comptroller may deposit public funds with a financial institution
164	158		designated as a banking district depository under Section
165	159		279.151(a).
166	160		(b) If the comptroller designates the credit union as a
167	161		state depository under Subchapter C, Chapter 404, Government Code,
168	162		the comptroller may deposit public funds with a credit union
169	163		designated as a credit union district depository under Section
170	164		279.151(b).
171	165		(c) For purposes of Subsections (a) and (b), a financial
172	166		institution or credit union is subject to the collateral
173	167		requirements of Section 404.031, Government Code.
174	168		(d) Subject to an agreement between the comptroller and the
175	169		banking district or credit union district depository, public funds
176	170		deposited in the district depository may earn a fixed interest rate
177	171		that is at or below the financial institution's or credit union's
178	172		posted two-year certificate of deposit rate, as appropriate.
179	173		(e) In calculating the yield under Section 2256.006,
180	174		Government Code, of public funds deposited in a banking district or
181	175		credit union district depository, the comptroller may consider the
182	176		benefit to this state of stimulating economic development.
183	177		SECTION 2. Not later than January 1, 2016, the Finance
184	178		Commission of Texas shall adopt rules governing the designation of
185	179		banking development districts, as required by Subchapter B, Chapter
186	180		279, Finance Code, as added by this Act.
187	181		SECTION 3. Not later than January 1, 2016, the Credit Union
188	182		Commission shall adopt rules governing the designation of credit
189	183		union development districts, as required by Subchapter C, Chapter
190	184		279, Finance Code, as added by this Act.
191	185		SECTION 4. This Act takes effect immediately if it receives
192	186		a vote of two-thirds of all the members elected to each house, as
193	187		provided by Section 39, Article III, Texas Constitution. If this
194	188		Act does not receive the vote necessary for immediate effect, this
195	189		Act takes effect September 1, 2015.
196		-	* * * * *
	190	+	______________________________ ______________________________
	191	+	President of the Senate Speaker of the House
	192	+	I certify that H.B. No. 1626 was passed by the House on May 8,
	193	+	2015, by the following vote: Yeas 99, Nays 40, 1 present, not
	194	+	voting.
	195	+	______________________________
	196	+	Chief Clerk of the House
	197	+	I certify that H.B. No. 1626 was passed by the Senate on May
	198	+	25, 2015, by the following vote: Yeas 24, Nays 6, 1 present, not
	199	+	voting.
	200	+	______________________________
	201	+	Secretary of the Senate
	202	+	APPROVED: _____________________
	203	+	Date
	204	+	_____________________
	205	+	Governor