By: Campbell S.B. No. 1400     (Holland)           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.