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.