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Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 84(R)

House Bill 1626

House Author:  Johnson et al.

Effective:  9-1-15

Senate Sponsor:  West


            House Bill 1626 amends the Finance Code to require the Finance Commission of Texas and the Credit Union Commission to administer and monitor a banking development district program and a credit union development district program, respectively, to encourage the establishment of branches of financial institutions or credit unions in areas where there is a demonstrated need for such financial services. The bill authorizes a local government to apply for the designation of a banking or credit union development district and authorizes a financial institution or credit union to apply to open a branch in a proposed development district at the time the local government submits the application.

House Bill 1626 authorizes the governing body of a local government in which a banking or credit union development district has been established to designate a financial institution or credit union located in the district as a banking district depository or credit union district depository, as applicable. The bill authorizes a local government to deposit public funds with a financial institution or credit union designated as a district depository. The bill also authorizes the comptroller of public accounts to deposit public funds with a district depository if the comptroller designates the financial institution or credit union as a state depository.