88R51 SRA-F
 
  By: Slawson H.B. No. 1095
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the regulation of state banks.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 34.103(c), Finance Code, is amended to
  read as follows:
         (c)  A state bank may not establish or acquire a subsidiary
  or a controlling interest in a subsidiary that engages in
  activities as principal in which the bank is prohibited from
  engaging directly unless:
               (1)  the state bank's investment in the subsidiary has
  been allowed [approved] by the Federal Deposit Insurance
  Corporation under Section 24, Federal Deposit Insurance Act (12
  U.S.C. Section 1831a); or
               (2)  with respect to a subsidiary engaged in activities
  as principal that a national bank may conduct only through a
  financial subsidiary, including firm underwriting of equity
  securities other than as permitted by Section 34.101, and not
  otherwise engaged in activities as principal that are impermissible
  for a state bank or a financial subsidiary of a national bank, the
  subsidiary's activities and the bank's investment are in compliance
  with the restrictions and requirements of Section 46, Federal
  Deposit Insurance Act (12 U.S.C. Section 1831w).
         SECTION 2.  Section 35.002(a), Finance Code, is amended to
  read as follows:
         (a)  The banking commissioner has grounds to issue a cease
  and desist order to a current or former [an] officer, employee, or
  director of a state bank, or the bank itself acting through an
  authorized person, if the banking commissioner determines from
  examination or other credible evidence that the bank or person
  directly or indirectly has:
               (1)  violated this subtitle or another applicable law;
               (2)  engaged in a breach of trust or other fiduciary
  duty;
               (3)  refused to submit to examination or examination
  under oath;
               (4)  conducted business in an unsafe or unsound manner;
  or
               (5)  violated a condition of the bank's charter or an
  agreement between the bank or the person and the banking
  commissioner or the department.
         SECTION 3.  Section 35.002(a), Finance Code, as amended by
  this Act, applies only to a violation that occurs on or after the
  effective date of this Act. A violation that occurs before the
  effective date of this Act is governed by the law in effect when the
  violation occurred, and the former law is continued in effect for
  that purpose.
         SECTION 4.  This Act takes effect September 1, 2023.