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78R2000 ATP-D

By:  Villarreal                                                   H.B. No. 1224



A BILL TO BE ENTITLED

AN ACT

relating to the amount of deposits that a financial institution may 
control.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  It is the intent of the legislature, in limiting 
the amount of deposits that a financial institution may control as a 
result of a merger or acquisition, to:
		(1)  ensure that access to financial services is 
available throughout the state; and
		(2)  stimulate competition and increase financial 
markets.                  
	SECTION 2.  Section 32.304(a), Finance Code, is amended to 
read as follows:  
	(a)  A merger is not permitted under this subchapter if, on 
consummation of the transaction, the resulting state bank, 
including all insured depository institution affiliates of the 
resulting state bank, would control 15 [20] percent or more of the 
total amount of deposits in this state held by all insured 
depository institutions in this state.
	SECTION 3.  Section 32.406(a), Finance Code, is amended to 
read as follows:  
	(a)  A purchase of assets is not permitted under Section 
32.401 if, on consummation of the transaction, the acquiring state 
bank, including all insured depository institution affiliates of 
the resulting state bank, would control 15 [20] percent or more of 
the total amount of deposits in this state held by all insured 
depository institutions in this state.
	SECTION 4.  Section 202.002(a), Finance Code, is amended to 
read as follows: 
	(a)  The commissioner may not approve an acquisition if, on 
consummation of the transaction, the applicant, including all 
depository institution affiliates of the applicant, would control 
15 [20] percent or more of the total amount of deposits in this 
state held by depository institutions in this state.
	SECTION 5.  Section 203.004(a), Finance Code, is amended to 
read as follows: 
	(a)  An interstate merger transaction is not permitted if, on 
consummation of the transaction, the resulting bank, including all 
depository institution affiliates of the resulting bank, would 
control 15 [20] percent or more of the total amount of deposits in 
this state held by all depository institutions in this state.
	SECTION 6.  This Act takes effect September 1, 2003.