Texas Register, Volume 48, Number 45, Pages 6497-6654, November 10, 2023 Page: 6,509

                                
will not be an effect on small businesses, microbusinesses or ru-
ral communities. There is no anticipated economic cost to per-
sons who are required to comply with the proposed repealed
rule.
The General Counsel has determined that during the first five
years that the proposed repealed rule is in effect, it will not: cre-
ate or eliminate a government program; require the creation of
new employee positions or the elimination of existing employee
positions; require an increase in future legislative appropriations
to the agency; require an increase or decrease in fees paid to the
agency; expand, limit, or repeal an existing regulation; create a
new regulation; increase or decrease the number of individuals
subject to the rules' applicability; or positively or adversely affect
this state's economy.
The Commission invites comments on the proposed repealed
rules from any member of the public. A written statement should
be emailed to public comment@ethics.state.tx.us, or mailed
or delivered to J.R. Johnson, Executive Director, Texas Ethics
Commission, P.O. Box 12070, Austin, Texas 78711-2070. A
person who wants to offer spoken comments to the Com-
mission concerning the proposed repealed rule may do so at
any Commission meeting during the agenda item relating to
the proposed repealed rule. Information concerning the date,
time, and location of Commission meetings is available by
telephoning (512) 463-5800 or on the Commission's website at
www.ethics.state.tx.us.
The repealed rule is proposed under Texas Government Code
571.062, which authorizes the Commission to adopt rules to
administer Title 15 of the Election Code and Chapter 571 of the
Government Code.
The proposed repealed rule affects Title 15 of the Election Code
and Chapter 571 of the Government Code
18.11. Guidelines for Waiver or Reduction of a Late Fine for a Cor-
rected/Amended 8-day Pre-election Report.
The agency certifies that legal counsel has reviewed the pro-
posal and found it to be within the state agency's legal authority
to adopt.
Filed with the Office of the Secretary of State on October 27,
2023.
TRD-202303947
James Tinley
General Counsel
Texas Ethics Commission
Earliest possible date of adoption: December 10, 2023
For further information, please call: (512) 463-5800

4        4        4
TITLE 7. BANKING AND SECURITIES
PART 2. TEXAS DEPARTMENT OF
BANKING
CHAPTER 12. LOANS AND INVESTMENTS
SUBCHAPTER A. LENDING LIMITS
7 TAC 12.2, 12.3, 12.6, 12.11, 12.12
The Finance Commission of Texas (the commission), on behalf
of the Texas Department of Banking (the department), proposes

to amend Subchapter A of Chapter 12 of Title 7 of the Texas Ad-
ministrative Code, concerning loans and investments by state
banks. The amended rules are proposed to conform the rules
to changes in applicable Texas law, federal regulation, and ac-
counting standards.
Subchapter A of Chapter 12 governs lending limits for state
banks as required by the Texas Finance Code (Finance Code).
Section 12.2 provides various definitions for Subchapter A
that incorporate various concepts and standards from other
state laws and from federal banking regulations and generally
accepted accounting standards to ensure clear, consistent, and
fair regulation with minimal additional burden. Certain citations
in Section 12.2 to Texas laws, federal regulations, and Financial
Accounting Standards Board are no longer correct and need to
be updated. Although the citations for those other requirements
have changed, the substance of those requirements have not
materially changed. In addition, state banks are already subject
to these other requirements as currently in effect.
Section 12.6 of SubchapterA indicates that a state bank has the
option of obtaining an opinion from the Texas Attorney General
about the applicability of the Finance Code's lending limit to loans
guaranteed by various government agencies. However, Section
402.042 of the Texas Government Code does not permit a state
bank to request such an opinion. This reference should be re-
moved from the lending limit rules.
Section 12.6 of Subchapter A also indicates that the department,
rather than the Banking Commissioner (commissioner), should
make certain determinations for whether temporary purchases of
mortgages by state banks are subject to the lending limit. This
is inconsistent with other provisions of Subchapter A, which pro-
vide that the commissioner should make similar determinations
rather than the department. This should be made consistent by
amending this rule to require the commissioner to make this de-
termination.
For the particular sections of Subchapter A being amended for
other reasons, some minor stylistic edits are made to improve
clarity and consistency within Chapter 12.
Jared Whitson, Director of Bank and Trust Supervision, has de-
termined that for the first five years the proposed amended rules
are in effect, there will be no foreseeable increases or reductions
in costs or other fiscal implications to state or local government
as a result of enforcing or administering the rules as amended.
Director Whitson has further determined that for the first five
years the proposed amended rules are in effect, the public ben-
efit anticipated from enforcing the rules is ensuring that the Fi-
nance Code lending limits and other lending laws will be en-
forced for the benefit of borrowers, banks, and bank depositors

and shareholders in a manner that is clear and not unnecessar-
ily complex for state banks, and consistent with applicable Texas
law, federal regulations, and accounting standards.
Director Whitson has also determined that for the first five years
the proposed amended rules are in effect the economic costs to
persons required to comply with the rules as proposed will be
unchanged from the costs required under these rules as they
currently exist.
In addition, Director Whitson has determined that for the first five
years the proposed amended rules are in effect, the rules will
not: create or eliminate a government program; require the cre-
ation of new department employee positions or the elimination
of existing agency employee positions; require an increase or

PROPOSED RULES November 10, 2023 48 TexReg 6509