S.B. No. 726

	AN ACT
	relating to investments by state banks to promote community
	development.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  The heading to Section 34.106, Finance Code, is
	amended to read as follows:
	Sec. 34.106.  INVESTMENTS TO PROMOTE COMMUNITY DEVELOPMENT
	[FOR PUBLIC WELFARE].
	SECTION 2.  Section 34.106, Finance Code, is amended by
	amending Subsection (d) and adding Subsection (e) to read as
	follows:
	(d)  A bank's aggregate investments under this section[,
	including loans and commitments for loans,] may not exceed an
	amount equal to 15 [10] percent of the bank's unimpaired capital and
	surplus. [The banking commissioner may authorize investments in
	excess of this limitation in response to a written application if
	the banking commissioner concludes that:
	[(1)     the excess investment is not precluded by other
	applicable law; and
	[(2)     the safety and soundness of the requesting bank
	would not be adversely affected.]
	(e)  Notwithstanding any other law, a bank's exposure to a
	single project or entity described by this section, including all
	investments, loans, and commitments for loans, may not exceed 25
	percent of the bank's unimpaired capital and surplus without the
	prior authorization of the banking commissioner in response to a
	written application.
	SECTION 3.  This Act takes effect September 1, 2019.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 726 passed the Senate on
	March 27, 2019, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 726 passed the House on
	April 11, 2019, by the following vote:  Yeas 145, Nays 1, one
	present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor