| 1 | 1 | | 87R755 JES-D |
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| 2 | 2 | | By: Reynolds H.B. No. 2012 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to reporting requirements for bank loans made to African |
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| 8 | 8 | | American-owned businesses. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subtitle Z, Title 3, Finance Code, is amended by |
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| 11 | 11 | | adding Chapter 272 to read as follows: |
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| 12 | 12 | | CHAPTER 272. REPORTING REQUIREMENTS FOR BANK LOANS TO CERTAIN |
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| 13 | 13 | | BUSINESSES |
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| 14 | 14 | | Sec. 272.001. DEFINITIONS. (a) In this chapter, "African |
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| 15 | 15 | | American-owned business" means a business entity that is at least |
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| 16 | 16 | | 51 percent owned by one or more African Americans. |
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| 17 | 17 | | (b) The definitions provided by Section 31.002 apply to this |
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| 18 | 18 | | chapter. |
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| 19 | 19 | | Sec. 272.002. ANNUAL REPORT REQUIRED. Not later than March |
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| 20 | 20 | | 1 of each year, each bank doing business in this state that makes |
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| 21 | 21 | | loans to businesses shall submit a report to the finance commission |
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| 22 | 22 | | in the form and manner prescribed by the commission on loans made by |
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| 23 | 23 | | the bank during the previous calendar year to African |
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| 24 | 24 | | American-owned businesses. The report must include: |
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| 25 | 25 | | (1) the total dollar value of loans made by the bank to |
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| 26 | 26 | | African American-owned businesses; and |
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| 27 | 27 | | (2) the amount loaned to African American-owned |
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| 28 | 28 | | businesses as a percentage of the total amount of loans made by the |
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| 29 | 29 | | bank to businesses during that calendar year. |
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| 30 | 30 | | Sec. 272.003. ONLINE PUBLICATION OF REPORT. (a) The |
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| 31 | 31 | | finance commission shall provide the reports submitted under |
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| 32 | 32 | | Section 272.002 to the banking commissioner. The banking |
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| 33 | 33 | | commissioner shall publish and maintain the information from the |
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| 34 | 34 | | reports on the department's Internet website in a form determined |
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| 35 | 35 | | by the commissioner. |
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| 36 | 36 | | (b) The information published under Subsection (a) must be: |
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| 37 | 37 | | (1) available to the public; and |
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| 38 | 38 | | (2) displayed in a manner that shows the reported |
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| 39 | 39 | | information disaggregated by bank. |
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| 40 | 40 | | Sec. 272.004. RULES. The finance commission shall adopt |
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| 41 | 41 | | rules necessary to implement this chapter. |
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| 42 | 42 | | SECTION 2. As soon as practicable after the effective date |
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| 43 | 43 | | of this Act, the Finance Commission of Texas shall adopt the rules |
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| 44 | 44 | | necessary to implement Chapter 272, Finance Code, as added by this |
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| 45 | 45 | | Act. |
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| 46 | 46 | | SECTION 3. This Act takes effect September 1, 2021. |
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