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SECTION 1. Subtitle Z, Title
3, Finance Code, is amended by adding Chapter 279 to read as follows:
CHAPTER 279. BANKING
DEVELOPMENT DISTRICTS
SUBCHAPTER A. GENERAL
PROVISIONS
Sec. 279.001.
DEFINITIONS. In this chapter:
(1) "Finance
commission" means the Finance Commission of Texas.
(2) "Financial
institution" means a state or national bank, a state or federal
savings bank, or a state or federal savings and loan association.
(3) "Local
government" means a municipality or county.
(4) "Proposed Texas financial institution" means:
(A) a proposed new bank for which an application for a state bank
charter has been filed with the Texas Department of Banking; or
(B) a proposed new savings bank or savings and loan association
for which an application to incorporate under the laws of this state has
been filed with the Department of Savings and Mortgage Lending.
SUBCHAPTER B. POWERS AND
DUTIES OF FINANCE COMMISSION
Sec. 279.051.
ADMINISTRATION OF PROGRAM.
Sec. 279.052. RULES.
(a) Subject to Subsection (b), the finance commission shall adopt rules to
implement this chapter.
(b) The finance
commission, in consultation with the Texas Economic Development and Tourism
Office, shall adopt rules regarding the criteria for the designation of
banking development districts under this chapter.
The rules must require the finance commission to consider:
(1) the location, number,
and proximity of sites where banking services are available in the proposed
district;
(2) consumer needs for
banking services in the proposed district;
(3) the economic
viability and local credit needs of the community in the proposed district;
(4) the existing
commercial development in the proposed district; and
(5) the impact additional
banking services would have on potential economic development in the
proposed district.
SUBCHAPTER C. DESIGNATION
OF BANKING DEVELOPMENT DISTRICT
Sec. 279.101. APPLICATION
FOR DESIGNATION OF BANKING DEVELOPMENT DISTRICT. A local government, in
conjunction with a financial institution or
the organizers or incorporators of a proposed Texas financial institution,
may submit an application to the finance commission for the designation of
a banking development district.
Sec. 279.102. APPLICATION
BY FINANCIAL INSTITUTION TO OPEN BRANCH IN DISTRICT. A financial
institution may apply to open a branch in the proposed banking development
district at the time the local government submits an application in
conjunction with the institution under Section
279.101.
Sec. 279.103.
DETERMINATION BY FINANCE COMMISSION. (a) Not later than the 91st day after the date an application for
the designation of a banking development district is submitted under
Section 279.101, the finance commission shall make a determination
regarding whether to approve the application.
(b) If the finance commission
approves the application, the finance commission shall notify the:
(1) local government;
(2) financial institution
or the organizers or incorporators of the
proposed Texas financial institution, as appropriate;
(3) comptroller;
(4) Texas Economic
Development and Tourism Office;
(5) lieutenant governor;
and
(6) speaker of the house
of representatives.
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
SUBCHAPTER D. DEPOSIT OF
PUBLIC FUNDS IN BANKING DISTRICT DEPOSITORY
Sec. 279.151. DESIGNATION
OF BANKING DISTRICT DEPOSITORY. (a) The governing body of a local government
in which a banking development district has been designated under Subchapter C may by resolution designate a
financial institution located in the district as a banking district
depository for purposes of this subchapter.
No
equivalent provision.
(b) A resolution adopted
under Subsection (a) must specify the maximum amount that may be kept on
deposit with the banking district depository.
(c) In calculating the
yield under Section 2256.006, Government Code, of public funds deposited in
a banking district depository, the governing body of a local government may
consider the benefit to this state of stimulating economic development.
Sec. 279.152. DEPOSIT OF
PUBLIC FUNDS BY LOCAL GOVERNMENT. (a) A local government may deposit
public funds with a financial institution designated as a banking district
depository under Section 279.151 regardless of
whether the financial institution is designated by the comptroller as a
state depository under Subchapter C, Chapter 404, Government Code.
(b) Subject to an
agreement between the governing body and the banking district depository,
public funds deposited in the banking
district depository may earn a fixed interest rate that is at or below the
financial institution's posted two-year certificate of deposit rate. The
terms of the agreement must be specified in the resolution adopted under
Section 279.151.
Sec. 279.153. DEPOSIT OF
PUBLIC FUNDS BY STATE. (a) If the comptroller designates the financial
institution as a state depository under Subchapter C, Chapter 404,
Government Code, the comptroller may deposit public funds with a financial
institution designated as a banking district depository under Section 279.151.
No
equivalent provision.
(b) For purposes of
Subsection (a), a financial institution is subject to the collateral
requirements of Section 404.031, Government Code.
(c) Subject to an
agreement between the comptroller and the banking district depository,
public funds deposited in the banking district depository may earn a fixed
interest rate that is at or below the financial institution's posted
two-year certificate of deposit rate.
(d) In calculating the
yield under Section 2256.006, Government Code, of public funds deposited in
a banking district depository, the comptroller may consider the benefit to
this state of stimulating economic development.
SUBCHAPTER E. BANKING
DISTRICT BENEFITS
Sec. 279.201. TAX
ABATEMENT. The governing body of a local government may enter into a tax
abatement agreement as provided by Chapter 312, Tax Code, with:
(1) a financial
institution that owns property in a banking development district on which
the institution proposes to open a branch of the institution; or
(2) the organizers or incorporators of a proposed Texas financial
institution that owns property in a banking development district on which
the organizers propose to establish and operate a branch of the
institution.
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SECTION 1. Subtitle Z, Title
3, Finance Code, is amended by adding Chapter 279 to read as follows:
CHAPTER 279. BANKING AND
CREDIT UNION DEVELOPMENT DISTRICTS
SUBCHAPTER A. GENERAL
PROVISIONS
Sec. 279.001.
DEFINITIONS. In this chapter:
(1) "Credit union" means a state or federal credit
union.
(2) "Finance
commission" means the Finance Commission of Texas.
(3) "Financial
institution" means a state or national bank, a state or federal
savings bank, or a state or federal savings and loan association.
(4) "Local
government" means a municipality or county.
SUBCHAPTER B. BANKING
DEVELOPMENT DISTRICTS
Sec. 279.051.
ADMINISTRATION OF PROGRAM.
Sec. 279.052. RULES.
(a) Subject to Subsection (b), the finance commission shall adopt rules to
implement this subchapter and Subchapters D
and E with respect to financial institutions in banking development
districts.
(b) The finance
commission, in consultation with the Texas Economic Development and Tourism
Office, shall adopt rules regarding the criteria for the designation of
banking development districts under this subchapter.
The rules must require the finance commission to consider:
(1) the location, number,
and proximity of sites where banking services are available in the proposed
banking development district;
(2) consumer needs for
banking services in the proposed district;
(3) the economic
viability and local credit needs of the community in the proposed district;
(4) the existing
commercial development in the proposed district; and
(5) the impact additional
banking services would have on potential economic development in the proposed
district.
No
equivalent provision.
Sec. 279.053. APPLICATION
FOR DESIGNATION OF BANKING DEVELOPMENT DISTRICT. A local government, in
conjunction with a financial institution, may submit an application to the
finance commission for the designation of a banking development district.
Sec. 279.054. APPLICATION
BY FINANCIAL INSTITUTION TO OPEN BRANCH IN DISTRICT. A financial
institution may apply to open a branch in the proposed banking development
district at the time the local government submits an application in
conjunction with the institution under Section
279.053.
Sec. 279.055.
DETERMINATION BY FINANCE COMMISSION. (a) Not later than the 120th day after the date an application
for the designation of a banking development district is submitted under
Section 279.053, the finance commission shall make a determination
regarding whether to approve the application.
(b) If the finance
commission approves the application, the finance commission shall notify
the:
(1) local government;
(2) financial
institution;
(3) comptroller;
(4) Texas Economic
Development and Tourism Office;
(5) lieutenant governor;
and
(6) speaker of the house
of representatives.
SUBCHAPTER C. CREDIT
UNION DEVELOPMENT DISTRICTS
Sec. 279.101.
ADMINISTRATION OF PROGRAM. The Credit Union Commission shall administer
and monitor a credit union development district program under this chapter
to encourage the establishment of branches of a credit union in geographic
areas where there is a demonstrated need for services provided by a credit
union.
Sec. 279.102. RULES.
(a) Subject to Subsection (b), the Credit Union Commission shall adopt
rules to implement this subchapter and Subchapters D and E with respect to
credit unions in credit union development districts.
(b) The Credit Union
Commission, in consultation with the Texas Economic Development and Tourism
Office, shall adopt rules regarding the criteria for the designation of
credit union development districts under this subchapter. The rules must
require the Credit Union Commission to consider:
(1) the location, number,
and proximity of sites where services provided by a credit union are
available in the proposed credit union development district;
(2) consumer needs for
services provided by a credit union in the proposed district;
(3) the economic
viability and local credit needs of the community in the proposed district;
(4) the existing
commercial development in the proposed district; and
(5) the impact additional
services provided by a credit union would have on potential economic
development in the proposed district.
Sec. 279.103. APPLICATION
FOR DESIGNATION OF CREDIT UNION DEVELOPMENT DISTRICT. A local government,
in conjunction with a credit union, may submit an application to the Credit
Union Commission for the designation of a credit union development
district.
Sec. 279.104. APPLICATION
BY CREDIT UNION TO OPEN BRANCH IN DISTRICT. A credit union may apply to
open a branch in the proposed credit union development district at the time
the local government submits an application in conjunction with the credit
union under Section 279.103.
Sec. 279.105.
DETERMINATION BY CREDIT UNION COMMISSION. (a) Not later than the 120th
day after the date an application for the designation of a credit union
development district is submitted under Section 279.103, the Credit Union
Commission shall make a determination regarding whether to approve the
application.
(b) If the Credit Union
Commission approves the application, the Credit Union Commission shall
notify the:
(1) local government;
(2) credit union;
(3) comptroller;
(4) Texas Economic
Development and Tourism Office;
(5) lieutenant governor;
and
(6) speaker of the house
of representatives.
SUBCHAPTER D. DEPOSIT OF
PUBLIC FUNDS IN DISTRICT DEPOSITORY
Sec. 279.151. DESIGNATION
OF DISTRICT DEPOSITORY. (a) The governing body of a local government in
which a banking development district has been designated under Subchapter B may by resolution designate a
financial institution located in the district as a banking district
depository for purposes of this subchapter.
(b) The governing body of
a local government in which a credit union development district has been
designated under Subchapter C may by resolution designate a credit union
located in the district as a credit union district depository for purposes
of this subchapter.
(c) A resolution adopted
under Subsection (a) or (b) must
specify the maximum amount that may be kept on deposit with the banking
district or credit union district
depository, as appropriate.
(d) In calculating the
yield under Section 2256.006, Government Code, of public funds deposited in
a banking district or credit union district
depository, the governing body of a local government may consider the
benefit to this state of stimulating economic development.
Sec. 279.152. DEPOSIT OF
PUBLIC FUNDS BY LOCAL GOVERNMENT. (a) A local government may deposit
public funds with a financial institution designated as a banking district
depository or a credit union designated as
a credit union district depository under Section 279.151 regardless
of whether the financial institution or
credit union is designated by the comptroller as a state depository
under Subchapter C, Chapter 404, Government Code.
(b) Subject to an
agreement between the governing body and the banking district or credit union district depository,
public funds deposited in the district depository may earn a fixed interest
rate that is at or below the financial institution's or credit union's posted two-year
certificate of deposit rate, as appropriate.
The terms of the agreement must be specified in the applicable resolution
adopted under Section 279.151.
Sec. 279.153. DEPOSIT OF
PUBLIC FUNDS BY STATE. (a) If the comptroller designates the financial
institution as a state depository under Subchapter C, Chapter 404,
Government Code, the comptroller may deposit public funds with a financial
institution designated as a banking district depository under Section 279.151(a).
(b) If the comptroller
designates the credit union as a state depository under Subchapter C,
Chapter 404, Government Code, the comptroller may deposit public funds with
a credit union designated as a credit union district depository under
Section 279.151(b).
(c) For purposes of
Subsections (a) and (b), a financial
institution or credit union is
subject to the collateral requirements of Section 404.031, Government Code.
(d) Subject to an
agreement between the comptroller and the banking district or credit union district depository,
public funds deposited in the district depository may earn a fixed interest
rate that is at or below the financial institution's or credit union's posted two-year
certificate of deposit rate, as appropriate.
(e) In calculating the
yield under Section 2256.006, Government Code, of public funds deposited in
a banking district or credit union district
depository, the comptroller may consider the benefit to this state of
stimulating economic development.
SUBCHAPTER E. BANKING OR
CREDIT UNION DISTRICT BENEFITS
Sec. 279.201. TAX ABATEMENT.
The governing body of a local government may enter into a tax abatement
agreement as provided by Chapter 312, Tax Code, with:
(1) a financial
institution that owns property in a banking development district on which
the institution proposes to open a branch of the institution; or
(2) a credit union that owns property in a credit union
development district on which the credit union proposes to open a branch of
the credit union.
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SECTION 2. Subchapter B,
Chapter 312, Tax Code, is amended by adding Section 312.2012 to read as
follows:
Sec. 312.2012. BANKING
DEVELOPMENT DISTRICT. (a) In this section, "financial
institution" and "proposed Texas
financial institution" have the meanings assigned by Section
279.001, Finance Code.
(b) The designation of an
area as a banking development district under Chapter 279, Finance Code,
constitutes designation of the area as a reinvestment zone under this
subchapter without further hearing or other procedural requirements other
than those provided by Chapter 279, Finance Code. Except as otherwise
provided by this section, the provisions of this subchapter apply to the
abatement of taxes on property located in a banking development district.
(c) Only the governing
body of a municipality or county is eligible to enter into a tax abatement
agreement with an owner of property located in a banking development
district so long as the property is owned by a financial institution or the organizers or incorporators of a proposed
Texas financial institution.
(d) The governing body of
a municipality or county may enter into an agreement with a financial
institution to abate taxes on property owned by the institution only on the
condition that the institution open a branch on the property.
(e) The governing body of
a municipality or county may enter into an agreement with the organizers or
incorporators of a proposed Texas financial institution to abate taxes on
property owned by the organizers or incorporators only on the condition
that the proposed financial institution:
(1) is granted a state
bank charter or issued a certificate of incorporation, as appropriate, to
engage in business in this state; and
(2) establish and operate
a branch on the property.
(f) The designation of an
area as a reinvestment zone under this section is for purposes of this
subchapter only and not for purposes of any other law, including Chapters
311 and 313.
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SECTION 2. Subchapter B,
Chapter 312, Tax Code, is amended by adding Section 312.2012 to read as
follows:
Sec. 312.2012. BANKING OR
CREDIT UNION DEVELOPMENT DISTRICT. (a) In this section, "financial
institution" and "credit
union" have the meanings assigned by Section 279.001, Finance
Code.
(b) The designation of an
area as a banking development district or
credit union development district under Chapter 279, Finance Code,
constitutes designation of the area as a reinvestment zone under this
subchapter without further hearing or other procedural requirements other
than those provided by Chapter 279, Finance Code. Except as otherwise
provided by this section, the provisions of this subchapter apply to the
abatement of taxes on property located in a banking or credit union development district.
(c) Only the governing
body of a municipality or county is eligible to enter into a tax abatement
agreement with an owner of property located:
(1) in a banking
development district so long as the property is owned by a financial
institution; or
(2) in a credit union development district so long as the property
is owned by a credit union.
(d) The governing body of
a municipality or county may enter into an agreement with:
(1) a financial
institution to abate taxes on property owned by the institution that is located in a banking development district
only on the condition that the institution open a branch on the property; or
(2) a credit union to abate taxes on property owned by the credit
union that is located in a credit union development district only on the
condition that the credit union open a branch on the property.
No
equivalent provision.
(e) The designation of an
area as a reinvestment zone under this section is for purposes of this
subchapter only and not for purposes of any other law, including Chapters
311 and 313.
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SECTION 3. Subchapter C,
Chapter 312, Tax Code, is amended by adding Section 312.4012 to read as
follows:
Sec. 312.4012. BANKING
DEVELOPMENT DISTRICT. (a) In this section, "financial
institution" and "proposed Texas
financial institution" have the meanings assigned by Section
279.001, Finance Code.
(b) The designation of an
area as a banking development district under Chapter 279, Finance Code,
constitutes designation of the area as a reinvestment zone under this
subchapter without further hearing or other procedural requirements other
than those provided by Chapter 279, Finance Code. Except as otherwise
provided by this section, the provisions of this subchapter apply to the
abatement of taxes on property located in a banking development district.
(c) Only the governing
body of a county is eligible to enter into a tax abatement agreement with
an owner of property located in a banking development district so long as
the property is owned by a financial institution or the organizers or incorporators of a proposed Texas financial institution.
(d) The governing body of
a county may enter into an agreement with a financial institution to abate
taxes on property owned by the institution only on the condition that the
institution open a branch on the property.
(e) The governing body of
a county may enter into an agreement with the organizers or incorporators
of a proposed Texas financial institution to abate taxes on property owned
by the organizers or incorporators only on the condition that the proposed
financial institution:
(1) is granted a state
bank charter or issued a certificate of incorporation, as appropriate, to
engage in business in this state; and
(2) establish and operate
a branch on the property.
(f) The designation of an
area as a reinvestment zone under this section is for purposes of this
subchapter only and not for purposes of any other law, including Chapters
311 and 313.
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SECTION 3. Subchapter C,
Chapter 312, Tax Code, is amended by adding Section 312.4012 to read as
follows:
Sec. 312.4012. BANKING OR
CREDIT UNION DEVELOPMENT DISTRICT. (a) In this section, "financial
institution" and "credit
union" have the meanings assigned by Section 279.001, Finance
Code.
(b) The designation of an
area as a banking or credit union
development district under Chapter 279, Finance Code, constitutes
designation of the area as a reinvestment zone under this subchapter
without further hearing or other procedural requirements other than those
provided by Chapter 279, Finance Code. Except as otherwise provided by this
section, the provisions of this subchapter apply to the abatement of taxes
on property located in a banking or credit
union development district.
(c) Only the governing
body of a county is eligible to enter into a tax abatement agreement with
an owner of property located:
(1) in a banking
development district so long as the property is owned by a financial
institution; or
(2) in a credit union development district so long as the property
is owned by a credit union.
(d) The governing body of
a county may enter into an agreement with:
(1) a financial
institution to abate taxes on property owned by the institution that is located in a banking development district
only on the condition that the institution open a branch on the property; or
(2) a credit union to abate taxes on property owned by the credit
union that is located in a credit union development district only on the
condition that the credit union open a branch on the property.
No
equivalent provision.
(e) The designation of an
area as a reinvestment zone under this section is for purposes of this
subchapter only and not for purposes of any other law, including Chapters
311 and 313.
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