1-1  By:  Marchant, et al. (Senate Sponsor - Turner)        H.B. No. 889
    1-2        (In the Senate - Received from the House March 16, 1995;
    1-3  March 20, 1995, read first time and referred to Committee on State
    1-4  Affairs; April 7, 1995, reported favorably, as amended, by the
    1-5  following vote:  Yeas 13, Nays 0; April 7, 1995, sent to printer.)
    1-6  COMMITTEE AMENDMENT NO. 1                                 By:  Cain
    1-7  Amend House Bill 889 by adding a new SECTION 3 to read as follows,
    1-8  and renumbering the remaining SECTIONs accordingly:
    1-9        SECTION 3.  This act shall expire September 2, 1999.
   1-10                         A BILL TO BE ENTITLED
   1-11                                AN ACT
   1-12  relating to a prohibition on merger transactions involving
   1-13  out-of-state banks and a prohibition on interstate branches.
   1-14        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-15        SECTION 1.  DEFINITIONS.  In this Act:
   1-16              (1)  "Branch" means a place of business of a bank other
   1-17  than the bank's main office at which deposits are received, checks
   1-18  are paid, or money is lent.
   1-19              (2)  "Domestic bank" means a bank that is:
   1-20                    (A)  a national bank having its main office in
   1-21  this state; or
   1-22                    (B)  a state bank chartered by this state.
   1-23              (3)  "Out-of-state bank" means a bank that is:
   1-24                    (A)  a national bank having its main office in a
   1-25  state other than this state; or
   1-26                    (B)  a state-chartered bank chartered by a state
   1-27  other than this state.
   1-28        SECTION 2.  INTERSTATE MERGERS AND BRANCHES PROHIBITED.
   1-29  Notwithstanding any other law:
   1-30              (1)  pursuant to Section 44(a)(2), Federal Deposit
   1-31  Insurance Act (12 U.S.C.  Section 1831u(a)(2)), a domestic bank may
   1-32  not engage in a merger transaction involving an out-of-state bank;
   1-33              (2)  an out-of-state bank may not establish a de novo
   1-34  branch in this state or acquire a branch in this state by purchase
   1-35  or other means; and
   1-36              (3)  a domestic bank may not establish a de novo branch
   1-37  in a state other than this state or acquire a branch in a state
   1-38  other than this state by purchase or other means.
   1-39        SECTION 3.  EMERGENCY.  The importance of this legislation
   1-40  and the crowded condition of the calendars in both houses create an
   1-41  emergency and an imperative public necessity that the
   1-42  constitutional rule requiring bills to be read on three several
   1-43  days in each house be suspended, and this rule is hereby suspended,
   1-44  and that this Act take effect and be in force from and after its
   1-45  passage, and it is so enacted.
   1-46                               * * * * *