1-1     By:  Van de Putte, et al. (Senate Sponsor - Ellis)    H.B. No. 1414

 1-2           (In the Senate - Received from the House April 10, 1997;

 1-3     April 11, 1997, read first time and referred to Committee on

 1-4     Economic Development; April 25, 1997, reported favorably by the

 1-5     following vote:  Yeas 10, Nays 0; April 25, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the creation, powers, and duties of the Community

 1-9     Reinvestment work group.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Title 16, Revised Statutes, is amended by adding

1-12     Article 352 to read as follows:

1-13           Art. 352.  COMMUNITY REINVESTMENT WORK GROUP

1-14           Sec. 1.  COMMUNITY REINVESTMENT WORK GROUP.  (a)  The

1-15     Community Reinvestment work group is created to work in conjunction

1-16     with the banking community in the state to:

1-17                 (1)  develop statewide community reinvestment

1-18     strategies using existing investment pools and other  investment

1-19     vehicles to leverage private capital from banks, insurance

1-20     companies, and other entities for community development in the

1-21     state;

1-22                 (2)  consult and coordinate with representatives from

1-23     appropriate federal regulatory agencies, including the Office of

1-24     the Comptroller of the Currency, the Federal Reserve Board of

1-25     Governors, the Federal Deposit Insurance Corporation, and the

1-26     Office of Thrift Supervision; and

1-27                 (3)  monitor and evaluate the strategies developed

1-28     under this section.

1-29           (b)  The work group is composed of:

1-30                 (1)  a representative of the comptroller's office,

1-31     appointed by the comptroller;

1-32                 (2)  a representative of the Texas Department of

1-33     Housing and Community Affairs, appointed by the executive director

1-34     of that department;

1-35                 (3)  a representative of the Texas Department of

1-36     Commerce, appointed by the executive director of that department;

1-37                 (4)  a representative of the Texas Department of

1-38     Banking, appointed by the banking commissioner of Texas; and

1-39                 (5)  a representative of the Texas Department of

1-40     Insurance, appointed by the commissioner of insurance.

1-41           (c)  The representative of the comptroller's office serves as

1-42     presiding officer of the work group.  The members of the work group

1-43     may elect any other necessary officers.

1-44           (d)  The work group shall meet quarterly and may meet more

1-45     often at the call of the presiding officer.

1-46           (e)  A member of the work group serves a two-year term and

1-47     may be removed for any reason by the appointing authority.

1-48           (f)  The appointing authority is responsible for the expenses

1-49     of a member's service on the work group.  A member of the work

1-50     group receives no additional compensation for serving on the work

1-51     group.

1-52           (g)  In developing the strategies required by this section,

1-53     the work group shall:

1-54                 (1)  explore innovative qualified investment

1-55     strategies;

1-56                 (2)  ensure to the extent possible that the strategies

1-57     encourage financial institutions in this state to lend money to

1-58     low-income and moderate-income families and individuals in the

1-59     state;

1-60                 (3)  coordinate its efforts to attract private capital

1-61     through investments that meet the requirements of the Community

1-62     Reinvestment Act of 1977 (12 U.S.C. Section 2901 et seq.); and

1-63                 (4)  ensure to the extent possible that the strategies

1-64     augment existing Community Reinvestment Act of 1977 programs in the

 2-1     state, including the operation of local community development

 2-2     corporations.

 2-3           Sec. 2.  REPORT TO LEGISLATURE.  The Community Reinvestment

 2-4     work group shall submit each biennium to the legislature a written

 2-5     report on the effectiveness of the strategies the work group is

 2-6     required to develop under Section 1 of this article.

 2-7           SECTION 2.  The Community Reinvestment work group shall

 2-8     submit the first report required by Section 2, Article 352, Revised

 2-9     Statutes, as added by this Act, not later than February 1, 1999.

2-10           SECTION 3.  This Act takes effect September 1, 1997.

2-11           SECTION 4.   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.

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