SRC-AAA H.B. 1414 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1414
By: Van de Putte (Ellis)
Economic Development
4-21-97
Engrossed


DIGEST 

Currently, the Federal Community Reinvestment Act (act) requires banking
institutions to meet certain needs of the local communities in which they
are chartered.  Community reinvestment in Texas is lower than in other
large states, while bank liquidity is relatively high.  This bill creates
a community reinvestment work group to develop strategies to meet the
reinvestment needs of lowand moderate-income communities statewide in
conjunction with the act. 

PURPOSE

As proposed, H.B. 1414 creates a community reinvestment work group to
develop strategies to meet the reinvestment needs of low- and
moderate-income communities statewide in conjunction with the  
Federal Community Reinvestment Act.

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 16, V.T.C.S.,  by adding Article 352, as follows:

Art. 352. COMMUNITY REINVESTMENT WORK GROUP

Sec. 1. COMMUNITY REINVESTMENT WORK GROUP.  Creates the community
reinvestment work group (group).  Sets forth the purpose of the group.
Sets forth the constituency of the group. Sets forth offices, meetings,
terms and appointments of the group. Requires the group to perform certain
duties in developing the strategies required by this section. 

Sec. 2. REPORT TO LEGISLATURE.  Requires the group to submit a report each
biennium to the legislature regarding the effectiveness of the group's
strategies. 

SECTION 2. Requires the group to submit its first report no later than
February 1, 1999. 

SECTION 3. Effective date: September 1, 1997.

SECTION 4. Emergency clause.