Texas 2023 - 88th Regular

Texas Senate Bill SB1646 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	S.B. No. 1646
2	2
3	3
4	4	AN ACT
5	5	relating to the regulation of state trust companies.
6	6	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	7	SECTION 1. Section 182.502(b), Finance Code, is amended to
8	8	read as follows:
9	9	(b) A trust institution applying to convert into a state
10	10	trust company may receive a certificate of authority to do business
11	11	as a state trust company if the banking commissioner finds that:
12	12	(1) the trust institution is not engaging in a pattern
13	13	or practice of unsafe and unsound fiduciary or banking practices;
14	14	(2) the trust institution has adequate capitalization
15	15	for a state trust company to act as a fiduciary at the same
16	16	locations as the trust institution is acting as a fiduciary before
17	17	the conversion;
18	18	(3) the trust institution can be expected to operate
19	19	profitably after the conversion;
20	20	(4) the officers and directors of the trust
21	21	institution as a group have sufficient fiduciary [banking]
22	22	experience, ability, standing, competence, trustworthiness, and
23	23	integrity to justify a belief that the trust institution will
24	24	operate as a state trust company in compliance with law; and
25	25	(5) each principal shareholder has sufficient
26	26	experience, ability, standing, competence, trustworthiness, and
27	27	integrity to justify a belief that the trust institution will be
28	28	free from improper or unlawful influence or interference with
29	29	respect to the trust institution's operation as a state trust
30	30	company in compliance with law.
31	31	SECTION 2. Section 184.002(c), Finance Code, is amended to
32	32	read as follows:
33	33	(c) A state trust company shall comply with regulatory
34	34	accounting principles in accounting for its investment in and
35	35	depreciation of trust company facilities, furniture, fixtures, and
36	36	equipment [dispose of any real property subject to Subsection (a)
37	37	not later than the fifth anniversary of the date the real property:
38	38	[(1) was acquired, except as otherwise provided by
39	39	rules adopted under this subtitle;
40	40	[(2) ceases to be used as a state trust company
41	41	facility; or
42	42	[(3) ceases to be a state trust company facility as
43	43	provided by Subsection (b)].
44	44	SECTION 3. Sections 184.003(a) and (c), Finance Code, are
45	45	amended to read as follows:
46	46	(a) A state trust company may not invest its restricted
47	47	capital in real property except:
48	48	(1) as permitted by this subtitle or rules adopted
49	49	under this subtitle; [or]
50	50	(2) with the prior written approval of the banking
51	51	commissioner; or
52	52	(3) as necessary to avoid or minimize a loss on a loan
53	53	or investment previously made in good faith.
54	54	(c) A state trust company shall dispose of any real property
55	55	subject to Subsection (a) not later than[:
56	56	[(1)] the fifth anniversary of the date the real
57	57	property:
58	58	(1) [(A)] was acquired, except as otherwise provided
59	59	by rules adopted under this subtitle; [or]
60	60	(2) [(B)] ceases to be used as a state trust company
61	61	facility; or
62	62	(3) [(2) the second anniversary of the date the real
63	63	property] ceases to be a state trust company facility as provided by
64	64	Section 184.002(b).
65	65	SECTION 4. Section 182.502(b), Finance Code, as amended by
66	66	this Act, applies only to an application for conversion filed on or
67	67	after the effective date of this Act. An application for conversion
68	68	filed before the effective date of this Act is governed by the law
69	69	in effect on the date the application was filed, and the former law
70	70	is continued in effect for that purpose.
71	71	SECTION 5. This Act takes effect immediately if it receives
72	72	a vote of two-thirds of all the members elected to each house, as
73	73	provided by Section 39, Article III, Texas Constitution. If this
74	74	Act does not receive the vote necessary for immediate effect, this
75	75	Act takes effect September 1, 2023.
76	76	______________________________ ______________________________
77	77	President of the Senate Speaker of the House
78	78	I hereby certify that S.B. No. 1646 passed the Senate on
79	79	April 27, 2023, by the following vote: Yeas 31, Nays 0.
80	80	______________________________
81	81	Secretary of the Senate
82	82	I hereby certify that S.B. No. 1646 passed the House on
83	83	May 6, 2023, by the following vote: Yeas 127, Nays 7, two present
84	84	not voting.
85	85	______________________________
86	86	Chief Clerk of the House
87	87	Approved:
88	88	______________________________
89	89	Date
90	90	______________________________
91	91	Governor