BILL ANALYSIS


                                                        H.B. 1298
                                            By: Carona (Montford)
                                             Economic Development
                                                         05-12-95
                              Senate Committee Report (Unamended)
BACKGROUND

Criminal history records from the Texas Department of Public Safety
may be obtained only if a specific authorization is contained in a
statute such as Section 411.092 of the Government Code. Currently,
the banking commissioner is permitted to obtain such information
for license applicants under Article 350, V.T.C.S. (Currency
Exchange Act).

The activities performed under the charters and licenses granted by
the banking commissioner require oversight and enforcement to
protect the public interest. Criminal history records of applicants
prior to granting a charter or license are critical to informed
decisionmaking. The Federal Deposit Insurance Corporation obtains
a report from the Federal Bureau of Investigation before processing
and approving deposit insurance for a state bank; however, this may
occur after the charter has been approved by the banking
commissioner. The banking commissioner must be able to check the
criminal history of bank charter applicants during preliminary
examination of applications but prior to approving a charter
application.

PURPOSE

As proposed, H.B. 1298 entitles the banking commissioner to obtain
from the Texas Department of Public Safety criminal history record
information that relates to certain persons.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 411.092(a), Government Code, as follows:

     (a) Entitles the banking commissioner to obtain from the Texas
     Department of Public Safety (DPS) criminal history record
     information maintained by DPS that relates to a person who is:
     
       (1) an applicant for a license, charter, or other authority
       granted or issued by the banking commissioner under:
       
       (A) The Texas Banking Code (Article 342-101 et seq.,
         V.T.C.S.) or any successor to that law;
         
         (B) Article 350, V.T.C.S.;
         
         (C) The Sale of Checks Act (Article 489d, V.T.C.S.); or 
         
         (D) Chapter 512, Acts of the 54th Legislature, Regular
         Session, 1955 (Article 548b, V.T.C.S.); or
       (2) a principal of an applicant under Subdivision (1).
       
     SECTION 2.     Emergency clause.
           Effective date: upon passage.