Relating to a prohibition on the establishment, operation, or ownership of a public bank by a political subdivision.

This bill prohibits Texas cities, counties, and other local governments (political subdivisions) from establishing, operating, or owning public banks. It amends the Local Government Code to explicitly ban such entities, defining banking under Texas Finance Code Section 31.002. The law directly affects local governments seeking to create publicly owned financial institutions. It takes effect September 1, 2025.