Regular Session
Government Affairs & Regulatory Compliance Analysis
HB3806 significantly expands the Texas Department of Banking’s authority over state trust companies placed under supervision. Effective September 1, 2025, the law extends the prohibition on unapproved dividends to include non-cash assets and freezes the institution's ability to hire, fire, or alter the Board of Directors without prior Commissioner approval.
Rep. Stan Lambert·House Bill·Regular Session
Banking Commissioner • Texas Department of Banking
This legislation has regulatory implications for the following Texas businesses and organizations:
Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.
Affected business types:
Affected business types:
lowMinimal cost impact anticipated.
JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.
JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
The "Safety and Soundness" Catch-All:
Section 1(7) grants the Banking Commissioner the power to prohibit *“any other activity determined... to threaten the safety and soundness of the state trust company.”*
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
Explore more bills from this author and on related topics
Common questions about HB3806
HB3806 significantly expands the Texas Department of Banking’s authority over state trust companies placed under supervision. Effective September 1, 2025, the law extends the prohibition on unapproved dividends to include non-cash assets and freezes the institution's ability to hire, fire, or alter the Board of Directors without prior Commissioner approval.
HB3806 was authored by Texas Representative Stan Lambert during the Regular Session.
HB3806 was signed into law by Governor Greg Abbott on June 20, 2025.
HB3806 is enforced by Banking Commissioner and Texas Department of Banking.
The regulatory priority for HB3806 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of HB3806 is estimated as "low". This may vary based on industry and implementation requirements.
HB3806 addresses topics including financial, financial--general, property interests, property interests--trusts and banking commissioner of texas.
Key dates for HB3806: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.
HB3806 establishes the following penalties: administrative penalty of Variable (Enforcement Action) for Violation of supervision order by issuing non-cash dividends or engaging in activities deemed unsafe by the Commissioner without prior approval.. Consult with legal counsel for specific applicability to your situation.
HB3806 primarily affects property owners and real estate professionals, banks, credit unions, and financial services firms. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
