74R7308 DWS-F By Marchant, Patterson, Brimer, Berlanga, et al. H.B. No. 889 Substitute the following for H.B. No. 889: By Patterson C.S.H.B. No. 889 A BILL TO BE ENTITLED 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. EMERGENCY. The importance of this legislation 2-6 and the crowded condition of the calendars in both houses create an 2-7 emergency and an imperative public necessity that the 2-8 constitutional rule requiring bills to be read on three several 2-9 days in each house be suspended, and this rule is hereby suspended, 2-10 and that this Act take effect and be in force from and after its 2-11 passage, and it is so enacted.