H.B. No. 889
    1-1                                AN ACT
    1-2  relating to a prohibition on merger transactions involving
    1-3  out-of-state banks and a prohibition on interstate branches.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  DEFINITIONS.  In this Act:
    1-6              (1)  "Branch" means a place of business of a bank other
    1-7  than the bank's main office at which deposits are received, checks
    1-8  are paid, or money is lent.
    1-9              (2)  "Domestic bank" means a bank that is:
   1-10                    (A)  a national bank having its main office in
   1-11  this state; or
   1-12                    (B)  a state bank chartered by this state.
   1-13              (3)  "Out-of-state bank" means a bank that is:
   1-14                    (A)  a national bank having its main office in a
   1-15  state other than this state; or
   1-16                    (B)  a state-chartered bank chartered by a state
   1-17  other than this state.
   1-18        SECTION 2.  INTERSTATE MERGERS AND BRANCHES PROHIBITED.
   1-19  Notwithstanding any other law:
   1-20              (1)  pursuant to Section 44(a)(2), Federal Deposit
   1-21  Insurance Act (12 U.S.C.  Section 1831u(a)(2)), a domestic bank may
   1-22  not engage in a merger transaction involving an out-of-state bank;
   1-23              (2)  an out-of-state bank may not establish a de novo
   1-24  branch in this state or acquire a branch in this state by purchase
    2-1  or other means; and
    2-2              (3)  a domestic bank may not establish a de novo branch
    2-3  in a state other than this state or acquire a branch in a state
    2-4  other than this state by purchase or other means.
    2-5        SECTION 3.  This Act shall expire September 2, 1999.
    2-6        SECTION 4.  EMERGENCY.  The importance of this legislation
    2-7  and the crowded condition of the calendars in both houses create an
    2-8  emergency and an imperative public necessity that the
    2-9  constitutional rule requiring bills to be read on three several
   2-10  days in each house be suspended, and this rule is hereby suspended,
   2-11  and that this Act take effect and be in force from and after its
   2-12  passage, and it is so enacted.