By Giddings, Brimer H.B. No. 3007
74R4971 CLG-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to lending services provided by a bank to small businesses
1-3 in its local area.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter V, The Texas Banking Code (Article
1-6 342-501 et seq., Vernon's Texas Civil Statutes), is amended by
1-7 adding Article 15 to read as follows:
1-8 Art. 15. LENDING SERVICES TO SMALL BUSINESSES IN LOCAL AREA.
1-9 (a) A state bank or national bank domiciled in this state shall
1-10 loan at least 25 percent of the money that it loans to small
1-11 businesses in the bank's local area.
1-12 (b) The Banking Commissioner, on complaint of any person,
1-13 shall hold a hearing to determine whether the bank is violating
1-14 this section. On a determination that a bank is violating this
1-15 section, the Banking Commissioner shall order the bank ineligible
1-16 to act as a state depository. The bank subject to the order
1-17 becomes eligible to act as a state depository only when it
1-18 establishes to the Banking Commissioner's satisfaction that it
1-19 complies with this section and the Banking Commissioner rescinds
1-20 the order.
1-21 (c) A bank's local area is its local community, as
1-22 delineated under federal regulations adopted under the Community
1-23 Reinvestment Act of 1977 (12 U.S.C. Section 2901 et seq.), except
1-24 that if the bank is not subject to those regulations or if the
2-1 bank's local community is determined by its effective lending
2-2 territory, the bank's local area for the purposes of this article
2-3 is the area that would be the bank's local community under those
2-4 regulations excluding the regulations relating to effective lending
2-5 territory. Each bank shall file with the Banking Commissioner a
2-6 statement of its local area in the manner and form prescribed by
2-7 the Banking Commissioner.
2-8 (d) In this article, "small business" means a corporation,
2-9 partnership, sole proprietorship, or other legal entity that:
2-10 (1) is formed for the purpose of making a profit;
2-11 (2) is independently owned and operated; and
2-12 (3) has fewer than 50 employees or less than $3
2-13 million in annual gross receipts.
2-14 SECTION 2. Section 404.021, Government Code, is amended by
2-15 adding Subsection (d) to read as follows:
2-16 (d) A bank is not eligible to be a state depository if an
2-17 order of the banking commissioner under Section (b), Article 15,
2-18 Chapter V, The Texas Banking Code (Article 342-515, Vernon's Texas
2-19 Civil Statutes), is in effect against a bank. If such an order is
2-20 issued against a bank that has been previously designated as a
2-21 state depository, the treasurer shall withdraw state funds from the
2-22 bank, except that the treasurer is not required to withdraw funds
2-23 at a time or in a manner that will result in loss to the state.
2-24 The treasurer may maintain state funds on deposit in a bank subject
2-25 to such an order if the banking commissioner informs the treasurer
2-26 that the bank is making a bona fide effort to correct the situation
2-27 on which the order is grounded.
3-1 SECTION 3. This Act applies only to a loan made on or after
3-2 the effective date of this Act. A loan made before the effective
3-3 date of this Act is governed by the law in effect when the loan was
3-4 made, and that law is continued in effect for that purpose.
3-5 SECTION 4. This Act takes effect September 1, 1995.
3-6 SECTION 5. The importance of this legislation and the
3-7 crowded condition of the calendars in both houses create an
3-8 emergency and an imperative public necessity that the
3-9 constitutional rule requiring bills to be read on three several
3-10 days in each house be suspended, and this rule is hereby suspended.
3-11 COMMITTEE AMENDMENT NO. 1
3-12 Amend H.B. 3007 as follows:
3-13 On page 3, line 5, amend SECTION 4 to read as follows:
3-14 SECTION 4. This Act takes effect September 1, 1995, provided
3-15 that, after the effective date of this Act, if a federal regulatory
3-16 agency with primary supervisory responsibility for a federally
3-17 chartered bank determines that a provision of this bill does not
3-18 apply to a federally chartered bank in this state, that same
3-19 provision does not apply to a state chartered or private bank in
3-20 this state.
3-21 Marchant
3-22 COMMITTEE AMENDMENT NO. 2
3-23 Amend H.B. 3007 as follows:
3-24 Amend page 1, line 11, by inserting between the words
3-25 "business" and "in" the following:
3-26 ", exclusive of federal Small Business Administration loans,"
3-27 Marchant