By Giddings H.B. No. 1291
74R5450 LJR-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to reports by banks concerning the availability of capital
1-3 to certain small businesses; providing a civil penalty.
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 349 to read as follows:
1-7 Art. 349. REPORTS BY BANKS
1-8 Sec. 1. DEFINITIONS. In this article:
1-9 (1) "Bank" has the meaning assigned by Article 2,
1-10 Chapter I, The Texas Banking Code (Article 342-102, Vernon's Texas
1-11 Civil Statutes).
1-12 (2) "Branch office" means an office of a bank that is
1-13 approved as a branch by a federal or state regulating agency, but
1-14 does not include an unmanned teller machine as defined by Article
1-15 3a, Chapter IX, The Texas Banking Code (Article 342-903a, Vernon's
1-16 Texas Civil Statutes).
1-17 (3) "Historically underutilized business" and "small
1-18 business" have the meanings assigned by Section 481.101, Government
1-19 Code.
1-20 Sec. 2. REPORT REQUIRED. (a) Not later than the 30th day
1-21 after the last day of each calendar quarter, a bank shall submit to
1-22 the banking commissioner in accordance with this article a report
1-23 of its lending activity for the preceding calendar quarter.
1-24 (b) The report must provide separate information for each
2-1 bank location and branch office in this state.
2-2 (c) The report must include for the period covered:
2-3 (1) the number and total dollar amount of completed
2-4 applications received by the bank for loans for each of the
2-5 following categories:
2-6 (A) agricultural loans;
2-7 (B) loans to small businesses;
2-8 (C) loans for the development or redevelopment
2-9 of the community in which the bank location or branch office is
2-10 located; and
2-11 (D) loans to historically underutilized
2-12 businesses;
2-13 (2) the number and total dollar amount of loans made
2-14 for each category described by Subdivision (1); and
2-15 (3) the total number and total dollar amount of all
2-16 loans made.
2-17 Sec. 3. BANKING COMMISSIONER DUTIES; FORM OF REPORT. (a)
2-18 The banking commissioner shall administer this article.
2-19 (b) The banking commissioner by rule shall prescribe the
2-20 form of a report required by this article and may adopt other rules
2-21 to administer this article.
2-22 Sec. 4. AVAILABILITY OF REPORT; PUBLIC NOTICE. (a) A
2-23 report required by this article is public information.
2-24 (b) Not later than the 30th day after the date the report is
2-25 submitted to the banking commissioner, the bank shall make a copy
2-26 of the report available to the public for inspection and copying
2-27 during business hours at each bank location and branch office in
3-1 this state.
3-2 (c) The report shall remain available to the public as
3-3 required by Subsection (b) until the fifth anniversary of the date
3-4 the report is submitted to the banking commissioner.
3-5 (d) A bank shall post a notice regarding the availability of
3-6 the report required by this article in the lobby of each location
3-7 and branch office.
3-8 (e) A bank may charge a reasonable fee for photocopies of a
3-9 report.
3-10 Sec. 5. CIVIL PENALTY. (a) A bank that violates this
3-11 article or a rule adopted under this article is liable to the state
3-12 for a civil penalty in an amount not to exceed $500 for each day
3-13 the violation continues.
3-14 (b) The attorney general or the prosecuting attorney in the
3-15 county in which the alleged violation occurs may bring suit to
3-16 recover the civil penalty imposed under Subsection (a).
3-17 Sec. 6. APPLICATION OF ARTICLE. If a federal regulatory
3-18 agency with primary supervisory responsibility for a federally
3-19 chartered bank determines that a provision of this article does not
3-20 apply to a federally chartered bank in this state, the provision
3-21 does not apply to a state or private bank in this state.
3-22 SECTION 2. The first report required by Article 349, Revised
3-23 Statutes, as added by this Act, shall cover the first calendar
3-24 quarter of 1996 and shall be filed not later than April 30, 1996.
3-25 SECTION 3. This Act takes effect September 1, 1995.
3-26 SECTION 4. The importance of this legislation and the
3-27 crowded condition of the calendars in both houses create an
4-1 emergency and an imperative public necessity that the
4-2 constitutional rule requiring bills to be read on three several
4-3 days in each house be suspended, and this rule is hereby suspended.