By Ellis                                         S.B. No. 671

      75R2616 CLG-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the creation, powers, and duties of the Community

 1-3     Reinvestment work group.


 1-5           SECTION 1.  Title 16, Revised Statutes, is amended by adding

 1-6     Article 352 to read as follows:


 1-8           Sec. 1.  COMMUNITY REINVESTMENT WORK GROUP.  (a)  The

 1-9     Community Reinvestment work group is created to work in conjunction

1-10     with the banking community in the state to:

1-11                 (1)  develop statewide community reinvestment

1-12     strategies using existing investment pools and other  investment

1-13     vehicles to leverage private capital from banks, insurance

1-14     companies, and other entities for community development in the

1-15     state; and

1-16                 (2)  monitor and evaluate the strategies developed

1-17     under this section.

1-18           (b)  The work group is composed of:

1-19                 (1)  a representative of the comptroller's office,

1-20     appointed by the comptroller;

1-21                 (2)  a representative of the Texas Department of

1-22     Housing and Community Affairs, appointed by the executive director

1-23     of that department;

1-24                 (3)  a representative of the Texas Department of

 2-1     Commerce, appointed by the executive director of that department;

 2-2                 (4)  a representative of the Texas Department of

 2-3     Banking, appointed by the banking commissioner of Texas; and

 2-4                 (5)  a representative of the Texas Department of

 2-5     Insurance, appointed by the commissioner of insurance.

 2-6           (c)  The representative of the comptroller's office serves as

 2-7     presiding officer of the work group.  The members of the work group

 2-8     may elect any other necessary officers.

 2-9           (d)  The work group shall meet quarterly and may meet more

2-10     often at the call of the presiding officer.

2-11           (e)  A member of the work group serves a two-year term  and

2-12     may be removed for any reason by the appointing authority.

2-13           (f)  The appointing authority is responsible for the expenses

2-14     of a member's service on the work group.  A member of the work

2-15     group receives no additional compensation for serving on the work

2-16     group.

2-17           (g)  In developing the strategies required by this section,

2-18     the work group shall:

2-19                 (1)  explore innovative qualified investment

2-20     strategies;

2-21                 (2)  ensure to the extent possible that the strategies

2-22     encourage financial institutions in this state to lend money to

2-23     low-income and moderate-income families and individuals in the

2-24     state;

2-25                 (3)  coordinate its efforts to attract private capital

2-26     through investments that meet the requirements of the Community

2-27     Reinvestment Act of 1977 (12 U.S.C. Section 2901 et seq.); and

 3-1                 (4)  ensure to the extent possible that the strategies

 3-2     augment existing Community Reinvestment Act of 1977 programs in the

 3-3     state, including the operation of local community development

 3-4     corporations.

 3-5           Sec. 2.  REPORT TO LEGISLATURE.  The Community Reinvestment

 3-6     work group shall submit each biennium to the legislature a written

 3-7     report on the effectiveness of the strategies the work group is

 3-8     required to develop under Section 1 of this article.

 3-9           SECTION 2.  The Community Reinvestment work group shall

3-10     submit the first report required by Section 2, Article 352, Revised

3-11     Statutes, as added by this Act, not later than February 1, 1999.

3-12           SECTION 3.  This Act takes effect September 1, 1997.

3-13           SECTION 4.  The importance of this legislation and the

3-14     crowded condition of the calendars in both houses create an

3-15     emergency and an imperative public necessity that the

3-16     constitutional rule requiring bills to be read on three several

3-17     days in each house be suspended, and this rule is hereby suspended.