By: Lambert (Senate Sponsor - Zaffirini) H.B. No. 3806

(In the Senate - Received from the House April 30, 2025; May 1, 2025, read first time and referred to Committee on Business & Commerce; May 15, 2025, reported favorably by the following vote: Yeas 11, Nays 0; May 15, 2025, sent to printer.) Click here to see the committee vote

A BILL TO BE ENTITLED

AN ACT

relating to prohibited activities of a state trust company under supervision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 185.106, Finance Code, is amended to read as follows:

Sec. 185.106. DUTIES OF STATE TRUST COMPANY UNDER SUPERVISION. During a period of supervision, a state trust company, without the prior approval of the banking commissioner or the supervisor or as otherwise permitted or restricted by the order of supervision, may not:

(1) dispose of, sell, transfer, convey, or encumber the state trust company's assets;

(2) lend or invest the state trust company's funds;

(3) incur a debt, obligation, or liability;

(4) pay a [cash] dividend to the state trust company's shareholders or participants;

(5) solicit or accept any new client accounts; [or]

(6) remove an executive officer or director, change the number of executive officers or directors, or have any other change in the position of executive officer or director; or

(7) engage in any other activity determined by the banking commissioner to threaten the safety and soundness of the state trust company.

SECTION 2. This Act takes effect September 1, 2025.

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