By Patterson                                          H.B. No. 2158
       74R7522 DWS-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to conversion of a financial institution branch to a
    1-3  regional service center based on the branch's deposits.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Chapter VI, The Texas Banking Code (Article
    1-6  342-601 et seq., Vernon's Texas Civil Statutes), is amended by
    1-7  adding Article 10 to read as follows:
    1-8        Art. 10.  MAXIMUM DEPOSITS IN CERTAIN COUNTIES
    1-9        Sec. 1.  In this article:
   1-10              (1)  "Financial institution" means a state or national
   1-11  bank, state or federal savings and loan association, or state or
   1-12  federal credit union in this state.
   1-13              (2)  "Branch" means an office of a financial
   1-14  institution that is approved as a branch by a federal or state
   1-15  regulating agency, but does not include an unmanned teller machine
   1-16  as defined by Article 3a, Chapter IX, The Texas Banking Code
   1-17  (Article 342-903a, Vernon's Texas Civil Statutes).
   1-18        Sec. 2.  This article applies only to a branch located in a
   1-19  county in which the total deposits held by all financial
   1-20  institutions and  branches in the county exceed $100 million.
   1-21        Sec. 3.  Except as otherwise provided by federal law, a
   1-22  single branch that holds more than 25 percent of the total deposits
   1-23  held by all financial institutions and branches in the county shall
   1-24  be converted into an independent financial institution with a
    2-1  resident of this state as chief executive officer and a board of
    2-2  directors having residents of this state as at least a majority of
    2-3  its members.  The financial institution shall provide full
    2-4  financial institution services.
    2-5        Sec. 4.  The Finance Commission by rule shall provide:
    2-6              (1)  a method for determining the amount of deposits of
    2-7  a financial institution or branch; and
    2-8              (2)  recordkeeping, reporting, and other requirements
    2-9  to implement this article.
   2-10        SECTION 2.  This Act takes effect September 1, 1995.
   2-11        SECTION 3.  The importance of this legislation and the
   2-12  crowded condition of the calendars in both houses create an
   2-13  emergency and an imperative public necessity that the
   2-14  constitutional rule requiring bills to be read on three several
   2-15  days in each house be suspended, and this rule is hereby suspended.