73R2567 CAE-D By Patterson, Edwards, et al. H.B. No. 584 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to a reporting requirement applicable to certain financial 1-3 institutions. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Title 16, Revised Statutes, is amended by adding 1-6 Article 351 to read as follows: 1-7 Art. 351. REPORT BY FINANCIAL INSTITUTIONS 1-8 Sec. 1. DEFINITIONS. In this article: 1-9 (1) "Financial institution" means a state or national 1-10 bank, state or federal savings and loan association, or state or 1-11 federal credit union in this state. 1-12 (2) "Branch office" means an office of a financial 1-13 institution that is approved as a branch by a federal or state 1-14 regulating agency, but does not include an unmanned teller machine 1-15 as defined by Article 3a, Chapter IX, The Texas Banking Code 1-16 (Article 342-903a, Vernon's Texas Civil Statutes). 1-17 Sec. 2. APPLICATION. (a) This article applies only to: 1-18 (1) a financial institution having deposits of $300 1-19 million or more; and 1-20 (2) a holding company owning or controlling one or 1-21 more financial institutions the combined deposits of which are $300 1-22 million or more. 1-23 (b) A financial institution or holding company is not 1-24 required to file a report under this article if all offices of the 2-1 financial institution or holding company are located in a single 2-2 county. 2-3 Sec. 3. REPORT REQUIRED. (a) During each calendar quarter 2-4 a financial institution or holding company shall submit a report of 2-5 its financial activity, as provided by Section 4 of this article, 2-6 as of the end of the previous calendar quarter. 2-7 (b) A bank shall submit the report to the banking 2-8 commissioner, a savings and loan association shall submit the 2-9 report to the savings and loan commissioner, a credit union shall 2-10 submit the report to the credit union commissioner, and a holding 2-11 company shall submit the report to the appropriate commissioner 2-12 regulating the type of financial institution owned or controlled by 2-13 the holding company. A financial institution having deposits of 2-14 $300 million or more shall submit a separate report regardless of 2-15 whether it is owned or controlled by a holding company. 2-16 (c) A report submitted as required by this section must 2-17 provide separate information on each branch office, except that 2-18 branch offices located in a single municipality or in a single 2-19 county may be reported together. 2-20 (d) A report under this article is public information. 2-21 Sec. 4. INFORMATION REQUIRED. A report under this article 2-22 must include: 2-23 (1) information on loans and deposits itemized by 2-24 categories as required by the Financial Institutions Examination 2-25 Council or its successor under 12 U.S.C. Section 3301 et seq. for 2-26 federally supervised financial institutions; and 2-27 (2) reports of condition or similar public reports 3-1 reported by branch office transaction. 3-2 Sec. 5. FORM OF REPORT; FINANCE COMMISSION DUTIES. A report 3-3 under this article must be submitted on a uniform form prescribed 3-4 by The Finance Commission of Texas. The finance commission may 3-5 adopt rules to define terms not defined by this article and to 3-6 provide for the administration of this article. 3-7 Sec. 6. DUE DATE OF REPORT; RECORDKEEPING; PUBLIC NOTICE AND 3-8 AVAILABILITY. (a) A financial institution or holding company 3-9 subject to this article shall submit the required report not later 3-10 than the 30th day after the last day of each calendar quarter and 3-11 shall retain a copy of the report for its records for at least five 3-12 years. 3-13 (b) A financial institution or holding company shall make 3-14 the report available to the public not later than the 30th day 3-15 after the date the report is submitted to the appropriate 3-16 commissioner. The report shall be available to the public for five 3-17 years at the financial institution's home office. If a financial 3-18 institution has a branch office in another county, a report must 3-19 also be available in that county. The report at the branch office 3-20 may include only information relating to transactions in the county 3-21 where that branch office is located. 3-22 (c) A financial institution shall make the report required 3-23 by this article available for inspection and copying during the 3-24 hours the financial institution or branch office, as appropriate, 3-25 is normally open to the public for business. The financial 3-26 institution may charge a reasonable fee for photocopying services. 3-27 (d) A financial institution shall post a notice regarding 4-1 the availability of the report required by this article in the 4-2 lobbies of its home office and any branch office. On request, the 4-3 financial institution shall promptly provide the location of the 4-4 institution's offices where the report is available. A financial 4-5 institution may include the location where the report is available 4-6 in the notice of availability of the report. 4-7 Sec. 7. PENALTY. If the banking commissioner in the case of 4-8 a banking association, the savings and loan commissioner in the 4-9 case of a savings association, or the credit union commissioner in 4-10 the case of a credit union finds that a financial institution has 4-11 violated this article or a rule adopted under this article, the 4-12 commissioner may order the institution to pay a civil penalty. The 4-13 amount of a civil penalty under this section may not exceed $500 4-14 for each day the violation continues. A penalty collected under 4-15 this section shall be deposited in the state treasury. The Finance 4-16 Commission of Texas may adopt rules as necessary to carry out this 4-17 section. 4-18 Sec. 8. STATE AND FEDERAL APPLICATION. If a federal 4-19 regulatory agency with primary supervisory responsibility for a 4-20 federally chartered financial institution or holding company 4-21 determines that a provision of this article does not apply to the 4-22 institution or holding company, the provision does not apply to a 4-23 state-chartered counterpart of the institution or holding company. 4-24 SECTION 2. The first report of financial institutions 4-25 required by Article 351, Revised Statutes, as added by this Act, 4-26 shall cover the first calendar quarter of 1994 and shall be filed 4-27 during the second calendar quarter of that year. 5-1 SECTION 3. The importance of this legislation and the 5-2 crowded condition of the calendars in both houses create an 5-3 emergency and an imperative public necessity that the 5-4 constitutional rule requiring bills to be read on three several 5-5 days in each house be suspended, and this rule is hereby suspended.