BWM C.S.H.B. 3077 75(R)BILL ANALYSIS FINANCIAL INSTITUTIONS C.S.H.B. 3077 By: Oliveira 4-15-97 Committee Report (Substituted) BACKGROUND Current Texas law does not allow federal associations domiciled in Texas that merge with or convert to domestic or foreign bank to retain their branches in Texas PURPOSE H.B. 3076 allows for federal associations domiciled in Texas which merge with or convert to a domestic or foreign savings bank to retain their branches in Texas and will have all powers, rights, and privileges held by a Texas savings bank. This grants the Department authority to grant reciprocity to permit foreign savings banks which merge with Texas domiciled banks to retain their branches. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 1.03(13), Texas Savings Bank Act (Article 489e, Vernon's Civil Statutes) by deleting from the definition of "federal savings bank" the provision regarding the bank's principle business office being located in the state. SECTION 2. Amends Section 11.06, Texas Savings Bank Act (Article 489e, Vernon's Civil Statutes) by adding Subsection (b). Subsection (b). Provides that a federal savings bank that merges, consolidates or coverts to a domestic or foreign savings bank is entitled to retain an office in the state. SECTION 3. Amends Section 103(9), Texas Savings and Loan Act (Article 852a, Vernon's Texas Civil Statutes) by removing from the definition of "federal association" the provision regarding the principle business affice being located in the state. SECTION 4. Amends Chapter 10, Texas Savings and Loan Act (Article 852a, Vernon's Texas Civil Statutes) by adding Section 10.05. Sec. 10.05 Provides that a federal association that has been merged, consolidated or converted into a domestic or foreign savings bank or association is entitled to retain an office in this state. SECTION 5. Emergency Clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The Committee Substitute to HB 3077 amends the definitions of "federal savings bank" as found in the Texas Savings Bank Act, and "federal association" as found in the Texas Savings and Loan Act. Furthermore, the Substitute removes the provision giving a federal savings bank that has been merged, consolidated, or converted into a domestic or foreign savings bank or association all the rights, powers, privileges, benefits, immunities, and exemptions relating to a savings bank or its members.