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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of state banks. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 34.103(c), Finance Code, is amended to |
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read as follows: |
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(c) A state bank may not establish or acquire a subsidiary |
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or a controlling interest in a subsidiary that engages in |
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activities as principal in which the bank is prohibited from |
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engaging directly unless: |
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(1) the state bank's investment in the subsidiary has |
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been allowed [approved] by the Federal Deposit Insurance |
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Corporation under Section 24, Federal Deposit Insurance Act (12 |
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U.S.C. Section 1831a); or |
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(2) with respect to a subsidiary engaged in activities |
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as principal that a national bank may conduct only through a |
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financial subsidiary, including firm underwriting of equity |
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securities other than as permitted by Section 34.101, and not |
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otherwise engaged in activities as principal that are impermissible |
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for a state bank or a financial subsidiary of a national bank, the |
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subsidiary's activities and the bank's investment are in compliance |
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with the restrictions and requirements of Section 46, Federal |
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Deposit Insurance Act (12 U.S.C. Section 1831w). |
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SECTION 2. Section 35.002(a), Finance Code, is amended to |
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read as follows: |
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(a) The banking commissioner has grounds to issue a cease |
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and desist order to a current or former [an] officer, employee, or |
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director of a state bank, or the bank itself acting through an |
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authorized person, if the banking commissioner determines from |
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examination or other credible evidence that the bank or person |
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directly or indirectly has: |
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(1) violated this subtitle or another applicable law; |
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(2) engaged in a breach of trust or other fiduciary |
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duty; |
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(3) refused to submit to examination or examination |
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under oath; |
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(4) conducted business in an unsafe or unsound manner; |
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or |
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(5) violated a condition of the bank's charter or an |
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agreement between the bank or the person and the banking |
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commissioner or the department. |
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SECTION 3. Section 35.002(a), Finance Code, as amended by |
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this Act, applies only to a violation that occurs on or after the |
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effective date of this Act. A violation that occurs before the |
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effective date of this Act is governed by the law in effect when the |
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violation occurred, and the former law is continued in effect for |
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that purpose. |
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SECTION 4. This Act takes effect September 1, 2023. |