Relating to the regulation of state banks.

89(R) HB 3804 - Enrolled version - Bill Text

H.B. No. 3804

AN ACT

relating to the regulation of state banks.

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

SECTION 1. Section 31.002(a)(15), Finance Code, is amended

to read as follows:

(15) "Deposit" means the establishment of a

debtor-creditor relationship represented by the agreement of the

deposit debtor to act as a holding, paying, or disbursing agent for

the deposit creditor. The term:

(A) includes:

(i) an unpaid balance of money that is

received by the deposit debtor in the usual course of business in

exchange for conditional or unconditional credit to a commercial,

checking, savings, or time account of the deposit creditor or the

creditor's designee, or that is evidenced by a certificate of

deposit or similar instrument, a certified check or draft drawn

against a deposit account, or a letter of credit or traveler's check

on which the deposit debtor is primarily liable, but excluding an

obligation arising under Chapter
152
[
151
];

(ii) money or credit given for money

received by the deposit debtor in the usual course of business for a

special purpose, including money:

(a) held as escrow money, as security

for an obligation due to the deposit debtor or another person, or as

security for a loan;

(b) left with a deposit debtor by a

deposit creditor to meet maturing obligations that are not yet due;

and

(c) held by the deposit debtor to meet

an acceptance or letter of credit;

(iii) an outstanding draft, cashier's

check, money order, or other officer's check issued by the deposit

debtor in the usual course of business for any purpose, including

payment for services, dividends, or purchases; and

(iv) an obligation that the finance

commission by rule defines as a deposit liability, except that the

term may not include money received for immediate application to

reduction of an indebtedness; and

(B) does not include an obligation that this

subtitle or finance commission rule determines not to be a deposit

liability.

SECTION 2. Section 33.005, Finance Code, is amended to read

as follows:

Sec. 33.005. EXEMPTIONS. The following acquisitions are

exempt from Section 33.001:

(1) an acquisition of securities in connection with

the exercise of a security interest or otherwise in full or partial

satisfaction of a debt previously contracted for in good faith and

the acquiring person files written notice of acquisition with the

banking commissioner before the person votes the securities

acquired;

(2) unless the banking commissioner provides

otherwise in writing, an acquisition of voting securities in any

class or series by a controlling person who[
:

[
(A)
] was identified as a controlling person
of

the
[
in a
] state bank in a prior application filed with and approved

by the banking commissioner
and:
[
;
]

(A)
[
(B)
] has from the date of receipt of

approval under this subchapter continuously held power to vote 25

percent or more of any class of voting securities of the state bank;

or

(B)
[
(C)
] is considered to have from the date of

receipt of approval under this subchapter continuously controlled

the state bank under Section 33.001(b);

(3) an acquisition or transfer by operation of law,

will, or intestate succession and the acquiring person files

written notice of acquisition with the banking commissioner before

the person votes the securities acquired;

(4) a transaction subject to Chapter 202 if:

(A) the acquiring bank holding company currently

owns and controls a state bank; or

(B) the post-transaction controlling person is

identified as the controlling person in a merger or other

acquisition-related application filed with the banking

commissioner concurrently with the submission required by Section

202.001; and

(5) a transaction exempted by the banking commissioner

or by rules adopted under this subtitle because the transaction is

not within the purposes of this subchapter or the regulation of the

transaction is not necessary or appropriate to achieve the

objectives of this subchapter.

SECTION 3. Section 35.106, Finance Code, is amended to read

as follows:

Sec. 35.106. AUTHORITY OF SUPERVISOR. During a period of

supervision, a bank, 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 bank's assets;

(2) lend or invest the bank's money;

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

(4) pay a [
cash
] dividend to the bank's shareholders;

(5) 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

(6) engage in any other activity determined by the

banking commissioner to threaten the safety and soundness of the

bank.

SECTION 4. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.

______________________________

______________________________

President of the Senate

Speaker of the House

I certify that H.B. No. 3804 was passed by the House on April

30, 2025, by the following vote: Yeas 135, Nays 0, 2 present, not

voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 3804 was passed by the Senate on May

25, 2025, by the following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

APPROVED: _____________________

Date

_____________________

Governor