H.B. No. 3804 amends various sections of the Finance Code to update the regulation of state banks in Texas. Notably, it redefines the term "Deposit" in Section 31.002(a)(15) to clarify the nature of the debtor-creditor relationship and specifies that it excludes obligations arising under Chapter 152. Additionally, Section 33.005 is revised to outline exemptions for certain acquisitions of securities, including those related to the exercise of a security interest and acquisitions by controlling persons who have previously been approved by the banking commissioner. The amendments also streamline the language regarding the conditions under which these exemptions apply.

Furthermore, Section 35.106 is amended to restrict the actions of a bank under supervision, prohibiting it from engaging in various activities such as disposing of assets, incurring debts, or paying dividends without prior approval from the banking commissioner. The bill is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that threshold is not met. These changes aim to enhance the regulatory framework governing state banks, ensuring their stability and compliance with established financial standards.

Statutes affected:
Introduced: Finance Code 31.002, Finance Code 33.005, Finance Code 35.106 (Finance Code 31, Finance Code 35, Finance Code 33)
House Committee Report: Finance Code 31.002, Finance Code 33.005, Finance Code 35.106 (Finance Code 31, Finance Code 35, Finance Code 33)
Engrossed: Finance Code 31.002, Finance Code 33.005, Finance Code 35.106 (Finance Code 31, Finance Code 35, Finance Code 33)
Senate Committee Report: Finance Code 31.002, Finance Code 33.005, Finance Code 35.106 (Finance Code 31, Finance Code 35, Finance Code 33)
Enrolled: Finance Code 31.002, Finance Code 33.005, Finance Code 35.106 (Finance Code 31, Finance Code 35, Finance Code 33)