By: Slawson, Anchia (Senate Sponsor - Paxton) H.B. No. 3849          (In the Senate - Received from the House April 26, 2021;   May 4, 2021, read first time and referred to Committee on Business &   Commerce; May 20, 2021, reported favorably by the following vote:     Yeas 9, Nays 0; May 20, 2021, sent to printer.)Click here to see the committee vote     A BILL TO BE ENTITLED   AN ACT     relating to the requirements for the regulation of state trust   companies.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 182.502(b), Finance Code, is amended to   read as follows:          (b)  A trust institution applying to convert into a state   trust company may receive a certificate of authority to do business   as a state trust company if the banking commissioner finds that:                (1)  the trust institution is not engaging in a pattern   or practice of unsafe and unsound fiduciary or banking practices;                (2)  the trust institution has adequate capitalization   for a state trust company to act as a fiduciary at the same   locations as the trust institution is acting as a fiduciary before   the conversion;                (3)  the trust institution can be expected to operate   profitably after the conversion;                (4)  the officers and directors of the trust   institution as a group have sufficient fiduciary [banking]   experience, ability, standing, competence, trustworthiness, and   integrity to justify a belief that the trust institution will   operate as a state trust company in compliance with law; and                (5)  each principal shareholder has sufficient   experience, ability, standing, competence, trustworthiness, and   integrity to justify a belief that the trust institution will be   free from improper or unlawful influence or interference with   respect to the trust institution's operation as a state trust   company in compliance with law.          SECTION 2.  Section 184.003(e), Finance Code, is amended to   read as follows:          (e)  Subject to the exercise of prudent judgment, a state   trust company may invest its secondary capital in real property.   The factors to be considered by a state trust company in exercise of   prudent judgment include the factors contained in Section   184.101(e) [184.101(f)].          SECTION 3.  The change in law made by this Act to Section   182.502(b), Finance Code, applies only to an application for   conversion filed on or after the effective date of this Act. An   application for conversion filed before the effective date of this   Act is governed by the law in effect on the date the application was   filed, and the former law is continued in effect for that purpose.          SECTION 4.  This Act takes effect September 1, 2021.     * * * * *