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MARGINS TAX CORRECTIONS BILL
You made a difference! The vote on Thursday regarding the calendar rule on HB 3928 is the talk of the Capitol! The rule was passed by an overwhelming 5 to 1 margin, clearing the way for this bill to be brought to the floor on Tuesday.
Thanks to all who contacted their state representatives on this important matter. It was impressive to have a number of House members stop me and tell me that they’ve heard from a number of their community bankers!
Amendments for this bill, with many of them aiming squarely at us, will be submitted this weekend. It is critical that we do whatever possible to maintain our language in Section 19 regarding apportionment.
We have been asked to continue with the heat . . . if you haven’t contacted your representative – or even if you feel compelled to contact them again – please do so with the following messages:
~ HB 3928, Relating to technical changes to the revised franchise tax, will be heard on Tuesday, May 1. This is an extremely important issue for community banking.
~ Support the bill as it came out of committee.
~ Vote WITH Chairman Keffer on amendments.
One big hurdle down . . . several more to go before we get the job done. Thanks to all of you for making a difference for community banking.
CREDIT COUNSELING
You also responded in significant numbers to our Action Alert last week concerning SB 987, which would have required credit counseling prior to obtaining a mortgage loan in a wide variety of circumstances. Your concerns were heard loud and clear by the Texas Senate.
We have been in negotiations with both Senator Lucio and Representative Rodriguez and staff on this issue. Our primary concern was to ensure that community banks could continue to offer adjustable rate and/or balloon notes without this onerous requirement. IBAT has signed off on a much more narrow bill that would require this counseling only in situations where a consumer would be obtaining a negative amortization or “teaser introductory rate” loan, with other limiting caveats (LtoV greater than 90%, low credit score, etc.) to trigger this counseling requirement.
INVESTMENT ADVISORY SERVICES BY BANKS
It was brought to our attention late last week that Representative Branch’s HB 3282 would have some serious implications for banks dealing with various public entities. While we have agreement to clarify the ability of a bank to make loans to and take deposits from a public entity in the normal course without the assistance of an outside advisor, there are still concerns regarding those banks who act as advisors for public entities. If your bank serves in an advisory capacity for public entities, please take a look at this bill, and feel free to contact Steve Scurlock at 800/749-4228 with any observations or concerns. The bill and related information can be found here: http://www.legis.state.tx.us/BillLookup/Text.aspx?LegSess=80R&Bill=HB3282
NEXT WEEK
Our ILC branching bill, HB 944, will be heard in the Senate Business and Commerce Committee on Tuesday. We are pleased that Chairman Troy Fraser has picked this up in the Senate, and look forward to getting this important legislation through the process.
We’re officially into “crunch time”. Bills not out of at least one house will have some difficulty becoming law. We will attempt to keep you apprised of important issues in the coming weeks, and appreciate any and all questions and comments.
Steve Scurlock
IBAT Executive Vice President
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