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AN ACT
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relating to the designation of certain areas as banking or credit |
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union development districts to encourage the establishment of |
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branches of banks or credit unions in those areas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle Z, Title 3, Finance Code, is amended by |
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adding Chapter 279 to read as follows: |
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CHAPTER 279. BANKING AND CREDIT UNION DEVELOPMENT DISTRICTS |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 279.001. DEFINITIONS. In this chapter: |
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(1) "Credit union" means a state or federal credit |
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union. |
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(2) "Finance commission" means the Finance Commission |
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of Texas. |
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(3) "Financial institution" means a state or national |
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bank, a state or federal savings bank, or a state or federal savings |
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and loan association. |
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(4) "Local government" means a municipality or county. |
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SUBCHAPTER B. BANKING DEVELOPMENT DISTRICTS |
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Sec. 279.051. ADMINISTRATION OF PROGRAM. The finance |
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commission shall administer and monitor a banking development |
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district program under this chapter to encourage the establishment |
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of branches of a financial institution in geographic areas where |
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there is a demonstrated need for banking services. |
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Sec. 279.052. RULES. (a) Subject to Subsection (b), the |
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finance commission shall adopt rules to implement this subchapter |
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and Subchapter D with respect to financial institutions in banking |
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development districts. |
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(b) The finance commission, in consultation with the Texas |
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Economic Development and Tourism Office, shall adopt rules |
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regarding the criteria for the designation of banking development |
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districts under this subchapter. The rules must require the |
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finance commission to consider: |
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(1) the location, number, and proximity of sites where |
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banking services are available in the proposed banking development |
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district; |
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(2) consumer needs for banking services in the |
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proposed district; |
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(3) the economic viability and local credit needs of |
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the community in the proposed district; |
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(4) the existing commercial development in the |
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proposed district; and |
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(5) the impact additional banking services would have |
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on potential economic development in the proposed district. |
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Sec. 279.053. APPLICATION FOR DESIGNATION OF BANKING |
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DEVELOPMENT DISTRICT. A local government, in conjunction with a |
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financial institution, may submit an application to the finance |
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commission for the designation of a banking development district. |
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Sec. 279.054. APPLICATION BY FINANCIAL INSTITUTION TO OPEN |
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BRANCH IN DISTRICT. A financial institution may apply to open a |
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branch in the proposed banking development district at the time the |
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local government submits an application in conjunction with the |
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institution under Section 279.053. |
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Sec. 279.055. DETERMINATION BY FINANCE COMMISSION. (a) |
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Not later than the 120th day after the date an application for the |
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designation of a banking development district is submitted under |
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Section 279.053, the finance commission shall make a determination |
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regarding whether to approve the application. |
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(b) If the finance commission approves the application, the |
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finance commission shall notify the: |
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(1) local government; |
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(2) financial institution; |
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(3) comptroller; |
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(4) Texas Economic Development and Tourism Office; |
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(5) lieutenant governor; and |
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(6) speaker of the house of representatives. |
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SUBCHAPTER C. CREDIT UNION DEVELOPMENT DISTRICTS |
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Sec. 279.101. ADMINISTRATION OF PROGRAM. The Credit Union |
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Commission shall administer and monitor a credit union development |
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district program under this chapter to encourage the establishment |
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of branches of a credit union in geographic areas where there is a |
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demonstrated need for services provided by a credit union. |
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Sec. 279.102. RULES. (a) Subject to Subsection (b), the |
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Credit Union Commission shall adopt rules to implement this |
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subchapter and Subchapter D with respect to credit unions in credit |
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union development districts. |
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(b) The Credit Union Commission, in consultation with the |
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Texas Economic Development and Tourism Office, shall adopt rules |
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regarding the criteria for the designation of credit union |
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development districts under this subchapter. The rules must |
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require the Credit Union Commission to consider: |
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(1) the location, number, and proximity of sites where |
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services provided by a credit union are available in the proposed |
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credit union development district; |
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(2) consumer needs for services provided by a credit |
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union in the proposed district; |
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(3) the economic viability and local credit needs of |
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the community in the proposed district; |
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(4) the existing commercial development in the |
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proposed district; and |
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(5) the impact additional services provided by a |
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credit union would have on potential economic development in the |
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proposed district. |
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Sec. 279.103. APPLICATION FOR DESIGNATION OF CREDIT UNION |
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DEVELOPMENT DISTRICT. A local government, in conjunction with a |
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credit union, may submit an application to the Credit Union |
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Commission for the designation of a credit union development |
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district. |
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Sec. 279.104. APPLICATION BY CREDIT UNION TO OPEN BRANCH IN |
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DISTRICT. A credit union may apply to open a branch in the proposed |
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credit union development district at the time the local government |
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submits an application in conjunction with the credit union under |
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Section 279.103. |
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Sec. 279.105. DETERMINATION BY CREDIT UNION COMMISSION. |
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(a) Not later than the 120th day after the date an application for |
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the designation of a credit union development district is submitted |
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under Section 279.103, the Credit Union Commission shall make a |
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determination regarding whether to approve the application. |
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(b) If the Credit Union Commission approves the |
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application, the Credit Union Commission shall notify the: |
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(1) local government; |
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(2) credit union; |
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(3) comptroller; |
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(4) Texas Economic Development and Tourism Office; |
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(5) lieutenant governor; and |
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(6) speaker of the house of representatives. |
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SUBCHAPTER D. DEPOSIT OF PUBLIC FUNDS IN DISTRICT DEPOSITORY |
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Sec. 279.151. DESIGNATION OF DISTRICT DEPOSITORY. (a) The |
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governing body of a local government in which a banking development |
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district has been designated under Subchapter B may by resolution |
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designate a financial institution located in the district as a |
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banking district depository for purposes of this subchapter. |
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(b) The governing body of a local government in which a |
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credit union development district has been designated under |
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Subchapter C may by resolution designate a credit union located in |
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the district as a credit union district depository for purposes of |
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this subchapter. |
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(c) A resolution adopted under Subsection (a) or (b) must |
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specify the maximum amount that may be kept on deposit with the |
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banking district or credit union district depository, as |
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appropriate. |
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(d) In calculating the yield under Section 2256.006, |
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Government Code, of public funds deposited in a banking district or |
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credit union district depository, the governing body of a local |
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government may consider the benefit to this state of stimulating |
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economic development. |
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Sec. 279.152. DEPOSIT OF PUBLIC FUNDS BY LOCAL GOVERNMENT. |
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(a) A local government may deposit public funds with a financial |
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institution designated as a banking district depository or a credit |
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union designated as a credit union district depository under |
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Section 279.151 regardless of whether the financial institution or |
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credit union is designated by the comptroller as a state depository |
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under Subchapter C, Chapter 404, Government Code. |
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(b) Subject to an agreement between the governing body and |
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the banking district or credit union district depository, public |
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funds deposited in the district depository may earn a fixed |
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interest rate that is at or below the financial institution's or |
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credit union's posted two-year certificate of deposit rate, as |
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appropriate. The terms of the agreement must be specified in the |
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applicable resolution adopted under Section 279.151. |
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Sec. 279.153. DEPOSIT OF PUBLIC FUNDS BY STATE. (a) If the |
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comptroller designates the financial institution as a state |
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depository under Subchapter C, Chapter 404, Government Code, the |
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comptroller may deposit public funds with a financial institution |
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designated as a banking district depository under Section |
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279.151(a). |
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(b) If the comptroller designates the credit union as a |
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state depository under Subchapter C, Chapter 404, Government Code, |
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the comptroller may deposit public funds with a credit union |
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designated as a credit union district depository under Section |
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279.151(b). |
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(c) For purposes of Subsections (a) and (b), a financial |
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institution or credit union is subject to the collateral |
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requirements of Section 404.031, Government Code. |
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(d) Subject to an agreement between the comptroller and the |
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banking district or credit union district depository, public funds |
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deposited in the district depository may earn a fixed interest rate |
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that is at or below the financial institution's or credit union's |
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posted two-year certificate of deposit rate, as appropriate. |
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(e) In calculating the yield under Section 2256.006, |
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Government Code, of public funds deposited in a banking district or |
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credit union district depository, the comptroller may consider the |
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benefit to this state of stimulating economic development. |
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SECTION 2. Not later than January 1, 2016, the Finance |
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Commission of Texas shall adopt rules governing the designation of |
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banking development districts, as required by Subchapter B, Chapter |
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279, Finance Code, as added by this Act. |
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SECTION 3. Not later than January 1, 2016, the Credit Union |
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Commission shall adopt rules governing the designation of credit |
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union development districts, as required by Subchapter C, Chapter |
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279, Finance Code, as added by this Act. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2015. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 1626 was passed by the House on May 8, |
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2015, by the following vote: Yeas 99, Nays 40, 1 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 1626 was passed by the Senate on May |
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25, 2015, by the following vote: Yeas 24, Nays 6, 1 present, not |
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voting. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |