88R12649 SRA-F     By: Lambert, Ashby H.B. No. 3576       A BILL TO BE ENTITLED   AN ACT   relating to 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 184.002(c), Finance Code, is amended to   read as follows:          (c)  A state trust company shall comply with regulatory   accounting principles in accounting for its investment in and   depreciation of trust company facilities, furniture, fixtures, and   equipment [dispose of any real property subject to Subsection (a)   not later than the fifth anniversary of the date the real property:                [(1)  was acquired, except as otherwise provided by   rules adopted under this subtitle;                [(2)  ceases to be used as a state trust company   facility; or                [(3)  ceases to be a state trust company facility as   provided by Subsection (b)].          SECTION 3.  Sections 184.003(a) and (c), Finance Code, are   amended to read as follows:          (a)  A state trust company may not invest its restricted   capital in real property except:                (1)  as permitted by this subtitle or rules adopted   under this subtitle; [or]                (2)  with the prior written approval of the banking   commissioner; or                (3)  as necessary to avoid or minimize a loss on a loan   or investment previously made in good faith.          (c)  A state trust company shall dispose of any real property   subject to Subsection (a) not later than[:                [(1)]  the fifth anniversary of the date the real   property:                (1) [(A)]  was acquired, except as otherwise provided   by rules adopted under this subtitle; [or]                (2) [(B)]  ceases to be used as a state trust company   facility; or                (3) [(2)  the second anniversary of the date the real   property] ceases to be a state trust company facility as provided by   Section 184.002(b).          SECTION 4.  Section 182.502(b), Finance Code, as amended by   this Act, 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 5.  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, 2023.