By: Patterson H.B. No. 584
73R2567 CAE-D
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.