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

SB 621 prohibits Texas cities, counties, and school districts (political subdivisions) from establishing, operating, or owning any public bank. The law bans local governments from creating entities that engage in banking activities as defined by Texas Finance Code Section 31.002. This applies to all local government entities and takes effect September 1, 2025. The bill directly prevents local governments from creating public banking institutions under state law.