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TX HB3806

Bill

Status

Passed

6/20/2025

Primary Sponsor

Stan Lambert

Click for details

Origin

House of Representatives

89th Legislature Regular Session

AI Summary

  • Amends Section 185.106 of the Texas Finance Code governing state trust companies under regulatory supervision
  • Expands the dividend prohibition from "cash dividend" to any "dividend" paid to shareholders or participants without prior approval
  • Adds new restriction prohibiting state trust companies under supervision from engaging in any activity the banking commissioner determines threatens the company's safety and soundness
  • Requires prior approval from the banking commissioner or supervisor before undertaking prohibited activities including disposing of assets, lending or investing funds, incurring debts, or making changes to executive officers or directors
  • Takes effect September 1, 2025; passed House 131-0 on April 30, 2025 and Senate 31-0 on May 25, 2025

Legislative Description

Relating to prohibited activities of a state trust company under supervision.

Property Interests

Last Action

Effective on 9/1/25

6/20/2025

Committee Referrals

Business & Commerce5/1/2025
Pensions, Investments & Financial Services3/26/2025

Full Bill Text

No bill text available