LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

February 23, 2007

TO:	Honorable Burt R. Solomons, Chair, House Committee on Financial Institutions
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB944 by Solomons (Relating to location of certain financial institution branches.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would amend the Finance Code to define commercial activity, prohibit a state bank from establishing or maintaining a branch or office, and a depository institution from establishing or maintaining a branch, on the premises or property of an affiliate if the affiliate engages in commercial activity.

Based on the analysis of the Department of Banking and the Department of Savings and Mortgage Lending, it is assumed that duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.

The bill would take effect immediately upon receiving a vote of two-thirds of all members elected to each house or otherwise on September 1, 2007.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

450 Department of Savings and Mortgage Lending, 451 Department of Banking

LBB Staff:

JOB, JRO, MW, TGl