SRC-AAA S.B. 671 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 671
By: Ellis
Economic Development
3-5-97
As Filed


DIGEST 

Currently, the Federal Community Reinvestment Act requires banking
institutions to meet the credit needs of the local communities in which
they are chartered.  According to the Office of the Comptroller of the
Currency, community reinvestment in Texas is currently lower than in other
large states, while banking liquidity is relatively high.  S.B. 671
establishes the Community Reinvestment Work Group to work in conjunction
with the banking community in Texas to develop statewide community
investment strategies to leverage private capital for community
development in Texas. 

PURPOSE

As proposed, S.B. 671 establishes the Community Reinvestment Work Group to
work in conjunction with the banking community in Texas to develop
statewide community investment strategies to leverage private capital for
community development in Texas. 

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. Provides for the creation of
the Community Reinvestment work group (group) and its constituency,
presiding officer, meetings, terms of the members, responsible party for
expenses, and compensation and strategies for the group. 

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

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

SECTION 3. Effective date: September 1, 1997.

SECTION 4. Emergency clause.