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House Bill 1626 |
House Author: Johnson et al. |
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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.