Texas Register, Volume 48, Number 52, Pages 8063-8476, December 29, 2023 Page: 8,077

                                
PROPOSED
Proposed rules include new rules, amendments to existing rules, and repeals of existing ru.
LE     S   A state agency shall give at least 30 days' notice of its intention to adopt a rule before
adopts the rule. A state agency shall give all interested persons a reasonable opportunity
submit data, views, or arguments, orally or in writing (Government Code, Chapter 2001).
Symbols in proposed rule text. Proposed new language is indicated by underlined text. [Squae -aekets-and stiket
indicate existing rule text that is proposed for deletion. "(No change)" indicates that existing rule text at this level will not
amended.

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TITLE 7. BANKING AND SECURITIES

PART 2. TEXAS DEPARTMENT OF
BANKING
CHAPTER 15. CORPORATE ACTIVITIES
SUBCHAPTER A. FEES AND OTHER
PROVISIONS OF GENERAL APPLICABILITY
7 TAC 15.1, 15.3 - 15.7
The Finance Commission of Texas (the commission), on behalf
of the Texas Department of Banking (the department), proposes
to amend Subchapter A of Chapter 15 of Title 7 of the Texas
Administrative Code, 15.1, 15.3 - 15.7, concerning corporate
activities by state banks. The amended rules are proposed to
conform the rules to changes in applicable federal regulation and
improve clarity.
Subchapter A of Chapter 15 provides general rules for corporate
activities of state banks subject to the Texas Finance Code
(Finance Code). Section 15.1 provides various definitions for
Chapter 15 that incorporate various concepts and standards
from other laws, including federal banking regulations, to ensure
clear, consistent, and fair regulation with minimal additional
burden. A citation in 15.1 to a federal regulation defining "well
capitalized" is no longer correct and needs to be updated. Simi-
larly, 15.3, which governs expedited corporate filings, provides
a citation the same federal banking regulation, and also needs
to be updated. Rather citing the current federal regulation, the
underlying federal statute defining "well capitalized" can be
cited instead. Changing these citations would not materially
change the substance of these rules. In addition, state banks
are already subject to these federal regulatory standards.
Section 15.4 discusses required information for filings and poten-
tial abandonment of incomplete filings. The proposed amend-
ment to this section clarifies the process for determining that a
previously accepted filing is abandoned due to the filer not timely
paying additional fees or costs that may be required under exist-
ing law and regulation, such as application investigation fees.
Section 15.5 governs public notice requirements for certain fil-
ings. Subsection (e) contains a reference to a definition that has
been removed from 15.1. Further, subsection (e) is redundant
of subsection (a). Subsection (e) provides the Banking Com-
missioner (commissioner) with specific discretion to waive pub-
lic notice requirements for a filing where public notice has been
required and provided by another regulator. Subsection (a) pro-
vides the commissioner with more general discretion to find that
any alternative form of publication is acceptable, which could in-
clude the alternative publication currently described in subsec-

tion (e). For these reasons, deletion of subsection (e) of 15.5
is appropriate.
Section 15.6 discusses applications for state bank charters. It
contains a typographical error that needs to be corrected.
Section 15.7 discusses submission of documents in general, and
submission of reproductions of documents in particular. This
section should be amended to expressly apply both to original
documents and to reproductions, where appropriate. Another
appropriate amendment updates the name of the non-deposi-
tory supervision division of the department. Finally, this section
should amended to address electronic filings in all forms, and to
clarify the rules on when filings of all types are deemed to be re-
ceived by the department.
Daniel Frasier, Director of Corporate Activities and Financial In-
novation, has determined that for the first five years the pro-
posed 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 administer-
ing the rules as amended.
Director Frasier has further determined that for the first five years
the proposed amended rules are in effect, the public benefit an-
ticipated from enforcing the rules is ensuring that the Finance
Code corporate activities requirements will be enforced for the
benefit of banks and their constituents in a manner that is clear
and not unnecessarily complex, and consistent with applicable
federal regulations.
Director Frasier 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 Frasier 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
decrease in future legislative appropriations to the department;
require an increase or decrease in fees paid to the department;
create a new regulation; or increase or decrease the number of
individuals subject to the rules' applicability.
Finally, Director Frasier has determined that there will be no ad-
verse economic effect on small businesses, micro-businesses,
or rural communities from the proposed amended rules and no
difference in the cost of compliance for these entities.
To be considered, comments on the proposed amendments
must be submitted to the department in writing no later than 5:00

p.m. on January 29, 2024. Comments should be addressed
to General Counsel, Texas Department of Banking, Legal Di-

PROPOSED RULES December 29, 2023 48 TexReg 8077