85R6064 GRM-F
	By: Holland, Longoria	H.B. No. 2726

	A BILL TO BE ENTITLED
	AN ACT
	relating to state banks, state bank holding companies, and branches
	of foreign banks.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 33.002, Finance Code, is amended by
	adding Subsection (a-1) and amending Subsections (d), (e), and (f)
	to read as follows:
	(a-1)  The banking commissioner shall promptly notify the
	applicant of the date the banking commissioner determines the
	application to be informationally complete and accepted for filing.
	(d)  The applicant shall publish notice of the application,
	the [its] date the application is accepted for [of] filing, and the
	identity of the applicant and, if the applicant includes a group,
	the identity of each group member. The notice must be published in
	the form and frequency specified by the banking commissioner and in
	a newspaper of general circulation in the county in which the bank's
	home office is located, or in another publication or location as
	directed by the banking commissioner.
	(e)  The applicant may defer publication of the notice until
	not later than the 34th day after the date the application is
	accepted for filing [filed] if:
	(1)  the application is filed in contemplation of a
	public tender offer subject to 15 U.S.C. Section 78n(d)(1);
	(2)  the applicant requests confidential treatment and
	represents that a public announcement of the tender offer and the
	filing of appropriate forms with the Securities and Exchange
	Commission or the appropriate federal banking agency, as
	applicable, will occur within the period of deferral; and
	(3)  the banking commissioner determines that the
	public interest will not be harmed by the requested confidential
	treatment.
	(f)  The banking commissioner may waive the requirement that
	a notice be published or permit delayed publication on a
	determination that waiver or delay is in the public interest. If
	publication of notice is waived under this subsection, the
	information that would be contained in a published notice becomes
	public information under Chapter 552, Government Code, on the 35th
	day after the date the application is accepted for filing [filed].
	SECTION 2.  Section 59.109, Finance Code, is amended to read
	as follows:
	Sec. 59.109.  TERMINATION OF [DELINQUENT] RENTAL; LIEN; SALE
	OF CONTENTS. (a) A safe deposit company may not terminate an
	agreement for the rental of a safe deposit box unless:
	(1)  the safe deposit company has delivered or sent to
	the lessee a notice not later than the 90th day before the date of
	the termination and has provided the lessee an opportunity to
	retrieve the contents during normal business hours throughout the
	duration of the notice period; or
	(2)  the payment for the rental of a safe deposit box is
	delinquent for at least six months, and the lessee fails to pay the
	rent due following notice provided under Subsection (a-1).
	(a-1)  If the payment for the rental of [for] a safe deposit
	box is delinquent for at least six months, or if the rental
	agreement is otherwise terminated, the safe deposit company shall
	[may] send notice to each lessee that the company will remove the
	contents of the box if the rent is not paid or, if the rental
	agreement is otherwise terminated, the contents are not retrieved
	before the date specified in the notice, which may not be earlier
	than the 60th day after the date the notice is delivered or sent.
	(a-2)  If the delinquent rent is not paid or, if the rental
	agreement is otherwise terminated, the contents are not retrieved
	before the date specified in the notice, the safe deposit company
	may open the box in the presence of two employees, at least one of
	whom is an officer or manager of the safe deposit company and at
	least one of whom is a notary public. The safe deposit company
	shall inventory the contents of the box in detail as provided by the
	comptroller's reporting instructions and place the contents of the
	box in a sealed envelope or container bearing the name of the
	lessee.
	(b)  The safe deposit company has a lien on the contents of
	the box for an amount equal to the rental owed for the box and the
	cost of opening the box. The safe deposit company may retain
	possession of the contents not later than two years from the date of
	the opening of the box plus a reasonable period to dispose of the
	contents of the box. If the rental and the cost of opening the box
	are not paid before the second anniversary of the date the box was
	opened, or if the rental agreement is being terminated for a reason
	other than delinquent payment, and the lessee has failed to
	retrieve the contents in a reasonable period after notice of the
	termination has been sent or delivered, the safe deposit company
	may sell all or part of the contents at public auction in the manner
	and with the notice prescribed by Section 51.002, Property Code,
	for the sale of real property under a deed of trust. Any unsold
	contents of the box and any excess proceeds from a sale of contents
	shall be remitted to the comptroller as provided by Chapters 72-75,
	Property Code.
	SECTION 3.  Section 202.001, Finance Code, is amended by
	amending Subsection (a) and adding Subsection (a-1) to read as
	follows:
	(a)  This section applies to a company intending to acquire a
	Texas bank holding company or a Texas bank. For purposes of this
	section, a Texas bank holding company does not include a bank
	holding company of which the only subsidiaries are state savings
	banks.
	(a-1)  A company described by Subsection (a) [intending to
	acquire a Texas bank holding company or a Texas bank] shall submit
	to the commissioner a copy of the application for approval or notice
	submitted to the Board of Governors of the Federal Reserve System
	under Section 3, Bank Holding Company Act (12 U.S.C. Section 1842).
	The copy must be:
	(1)  submitted to the commissioner when the application
	is submitted to the board of governors;
	(2)  accompanied by any additional information
	required under Subsection (b); and
	(3)  accompanied by any filing fee required by law.
	SECTION 4.  Sections 204.105(b) and (e), Finance Code, are
	amended to read as follows:
	(b)  Among other exceptions to Subsection (a) that may be
	required or authorized by the commissioner provided by this
	subchapter or by rules adopted under this subtitle:
	(1)  a Texas state branch may not accept deposits of
	less than an amount equal to the standard maximum deposit insurance
	amount [$100,000] from citizens or residents of the United States,
	other than credit balances that are incidental to or arise out of
	its exercise of other lawful banking powers, unless the Federal
	Deposit Insurance Corporation determines that specific deposit
	taking activities in lesser amounts do not constitute domestic
	retail deposit activities requiring deposit insurance protection
	within the meaning of Section 6, International Banking Act (12
	U.S.C. Section 3104);
	(2)  a Texas state agency may not accept deposits from
	citizens or residents of the United States, other than credit
	balances that are incidental to or arise out of its exercise of
	other lawful banking powers, but may accept deposits from persons
	who are neither citizens nor residents of the United States; and
	(3)  a limitation or restriction based on the capital
	and surplus of a Texas state bank is considered to refer, as applied
	to a Texas state branch or agency, to the dollar equivalent of the
	capital and surplus of the foreign bank, and if the foreign bank has
	more than one Texas state branch or agency in this state, the
	business transacted by all the branches and agencies must be
	aggregated in determining compliance with the limitation.
	(e)  For purposes of this section:
	(1)  "Resident of the United States"[, the term
	"resident of the United States"] means:
	(A) [(1)]  an individual residing in the United
	States;
	(B) [(2)]  a corporation, partnership,
	association, or other entity organized in the United States; or
	(C) [(3)]  a branch or office located in the
	United States of an entity that is not organized in the United
	States.
	(2)  "Standard maximum deposit insurance amount" means
	the amount of the maximum amount of deposit insurance as determined
	under the Federal Deposit Insurance Act (12 U.S.C. Section 1821).
	SECTION 5.  Section 204.203(a), Finance Code, is amended to
	read as follows:
	(a)  A registered Texas representative office of a foreign
	bank may engage in:
	(1)  representational and administrative functions in
	connection with the banking activities of the foreign bank that:
	(A)  may include soliciting new business for the
	foreign bank, conducting research, acting as liaison between the
	foreign bank's head office and customers in the United States,
	performing preliminary and servicing steps in connection with
	lending, or performing back-office functions; and
	(B)  do not include contracting for any deposit or
	deposit-like liability, lending money, or engaging in any other
	banking activity for the foreign bank [solicit loans and in
	connection with a loan:
	[(A)     assemble credit information about the
	borrower;
	[(B)  inspect and appraise property;
	[(C)  obtain property title information; and
	[(D)  prepare a loan application];
	(2)  making credit decisions if:
	(A)  the foreign bank also operates one or more
	branches or agencies in the United States;
	(B)  the loans approved at the representative
	office are made by a United States office of the bank; and
	(C)  the loan proceeds are not disbursed in the
	representative office [solicit purchasers for loans from the
	foreign bank]; and
	(3)  other functions for or on behalf of the foreign
	bank or its affiliates, including operating as a regional
	administrative office of the foreign bank, but only to the extent
	that the functions are not banking activities and are not
	prohibited by applicable federal or state law [solicit persons to
	contract for servicing the foreign bank loans;
	[(4)  conduct research;
	[(5)     perform services as liaison for customers and
	correspondents of the foreign bank;
	[(6)     execute loan documents relating to permitted
	loans with the written approval of the foreign bank;
	[(7)     perform back office administrative functions as
	may be more specifically defined by rule; and
	[(8)     engage in other activities approved by the
	commissioner or permitted by rule].
	SECTION 6.  Sections 204.203(b), (c), and (d), Finance Code,
	are repealed.
	SECTION 7.  This Act takes effect September 1, 2017.