FINANCE CODE
CHAPTER 12. TEXAS DEPARTMENT OF BANKING
SUBCHAPTER A. GENERAL PROVISIONS
§ 12.001. DEFINITIONS. The definitions provided by
Section 31.002 apply to this chapter.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
SUBCHAPTER B. OPERATION OF DEPARTMENT
§ 12.101. BANKING COMMISSIONER. (a) The banking
commissioner is the chief executive officer of the Texas Department
of Banking. The finance commission, by at least five affirmative
votes, shall appoint the banking commissioner. The banking
commissioner serves at the will of the finance commission and is
subject to the finance commission's orders and directions.
(b) The banking commissioner must have not less than seven
years' experience in banking or bank supervision.
(c) The finance commission shall set the compensation of the
banking commissioner. The compensation shall be paid from money of
the department.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended
by Acts 2001, 77th Leg., ch. 867, § 14, eff. Sept. 1, 2001.
§ 12.102. DEPUTY BANKING COMMISSIONERS. (a) The
banking commissioner shall appoint one or more deputy banking
commissioners as necessary to the efficient operation of the
department. The banking commissioner shall prescribe the
qualifications and duties of a deputy banking commissioner.
(b) During the banking commissioner's absence or inability
to serve, a deputy banking commissioner has the powers and shall
perform the duties of the banking commissioner.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended
by Acts 2001, 77th Leg., ch. 412, § 1.01, eff. Sept. 1, 2001.
§ 12.103. COMPENSATION OF EMPLOYEES OF
DEPARTMENT. (a) Chapter 654, Government Code, applies to a
department position only if the position is classified in salary
groups 1-10 under the General Appropriations Act.
(b) The legislature in the General Appropriations Act may
determine the total amount appropriated to the department but may
not determine the number or salaries of employees of the department
other than positions subject to Chapter 654, Government Code.
(c) The finance commission, subject to the limits provided
by this section, shall otherwise determine the number of employees
of the department and the salaries of those employees.
(d) The department may use money appropriated to it for any
purpose to pay the salaries determined by the finance commission.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 12.104. OATH OF OFFICE. Before assuming the duties of
office, each deputy banking commissioner, examiner, assistant
examiner, conservator, supervisor, and special agent, and each
other officer or employee specified by the banking commissioner,
must take an oath of office to:
(1) discharge faithfully the duties assigned; and
(2) uphold the constitution and laws of this state and
of the United States.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended
by Acts 2001, 77th Leg., ch. 412, § 1.02, eff. Sept. 1, 2001.
§ 12.105. FEES, REVENUE, AND EXPENSES; AUDIT. (a) The
finance commission shall establish reasonable and necessary fees
for the administration of this chapter, Chapter 11, Chapter 13, and
Subtitle A, Title 3.
(b) The costs of an audit of the department under Chapter
321, Government Code, shall be paid to the state auditor from the
money of the department.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
§ 12.106. LIABILITY. (a) The banking commissioner, a
member of the finance commission, a deputy banking commissioner, an
examiner, assistant examiner, supervisor, conservator, agent, or
other officer or employee of the department, or an agent of the
banking commissioner is not personally liable for damages arising
from the person's official act or omission unless the act or
omission is corrupt or malicious.
(b) The attorney general shall defend an action brought
against a person because of an official act or omission under
Subsection (a) regardless of whether the defendant has terminated
service with the department before the action commences.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended
by Acts 2001, 77th Leg., ch. 412, § 1.03, eff. Sept. 1, 2001.
§ 12.107. CONFLICT OF INTEREST. (a) In this section,
"Texas trade association" means a cooperative and voluntarily
joined association of business or professional competitors in this
state that:
(1) is primarily designed to assist its members and
its industry or profession in dealing with mutual business or
professional problems and in promoting their common interest; and
(2) includes business and professional competitors
located in this state among its members.
(b) A person may not be a department employee if:
(1) the person is an officer, employee, or paid
consultant of a Texas trade association in an industry regulated by
the department; or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association in an industry regulated by
the department.
(c) A person may not act as the general counsel to the
department if the person is required to register as a lobbyist under
Chapter 305, Government Code, because of the person's activities
for compensation on behalf of a profession related to the operation
of the department.
(d) A department employee may not:
(1) purchase an asset owned by a person regulated by
the department in the possession of the banking commissioner or
other receiver for purposes of liquidation, unless the asset is
purchased at public auction or with the approval of the
receivership court;
(2) except as provided by Subsection (e), become
directly or indirectly indebted to a person regulated by the
department;
(3) except as provided by Subsection (f), become
directly or indirectly financially interested in a person regulated
by the department; or
(4) obtain a product or service from a person
regulated by the department, or an affiliate of a person regulated
by the department, on terms or rates that are more favorable to the
employee than those prevailing at the time for comparable
transactions with or involving other similarly situated consumers.
(e) Subject to Subsection (d)(4) and except as otherwise
provided by employment policies adopted by the banking
commissioner, Subsection (d)(2) does not prohibit indebtedness of:
(1) a clerical or administrative employee to a person
regulated by the department, if the employee does not exercise
discretionary decision-making authority with respect to the
person; or
(2) an employee of the department, other than a
clerical or administrative employee, if the indebtedness was
permissible when incurred and became prohibited indebtedness under
Subsection (d)(2) as a result of employment by the department or a
circumstance over which the employee has no control, including a
merger, acquisition, purchase or sale of assets, or assumption of
liabilities involving a regulated person, if the employee:
(A) repays the indebtedness; or
(B) does not knowingly participate in or consider
any matter concerning the person to whom the employee is indebted.
(f) Except as otherwise provided by employment policies
adopted by the banking commissioner, Subsection (d)(3) does not
prohibit a financial interest of an employee of the department
solely because:
(1) the employee owns publicly traded shares of a
registered investment company (mutual fund) that owns publicly
traded equity securities issued by a person regulated by the
department; or
(2) the spouse of or other person related to the
employee is employed by a person regulated by the department and
receives equity securities of the person through participation in
an employee benefit plan, including an employee stock option,
bonus, or ownership plan, if:
(A) the sole purpose of the plan is to compensate
employees with an ownership interest in the person for services
rendered; and
(B) the employee does not knowingly participate
in or consider any matter concerning the person until the spouse or
other related person no longer owns equity securities issued by the
person.
(g) The banking commissioner may adopt employment policies
relating to this section, including policies to:
(1) require employees to notify the department of
possible conflicts of interest;
(2) specify the manner or extent of required recusal;
(3) define the circumstances under which adverse
employment action may be taken; and
(4) impose more restrictive requirements on senior
officers of the department for whom recusal is not viable or
consistent with the prudent exercise of the department's
responsibilities.
(h) The finance commission may adopt rules to administer
this section, including rules to:
(1) codify employment policies of the banking
commissioner adopted under Subsection (g);
(2) define or further define terms used by this
section; and
(3) establish limits, requirements, or exemptions
other than those specified by this section, except that an exempted
employee must be recused from participation in or consideration of
all regulatory matters specifically concerning the person to whom
the exempted indebtedness is owed or the financial interest
relates.
(i) Before the 11th day after the date on which an employee
begins employment with the department, the employee shall read the
conflict-of-interest statutes, rules, and policies applicable to
employees of the department and sign a notarized affidavit stating
that the employee has read those statutes, rules, and policies.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended
by Acts 2001, 77th Leg., ch. 699, § 1, eff. Sept. 1, 2001; Acts
2001, 77th Leg., ch. 412, § 1.04, eff. Sept. 1, 2001; Acts 2003,
78th Leg., ch. 1276, § 8.001, eff. Sept. 1, 2003.
§ 12.108. CONSUMER INFORMATION AND
COMPLAINTS. (a) The banking commissioner shall:
(1) prepare information of consumer interest
describing:
(A) the regulatory functions of the department;
and
(B) the department's procedures by which
consumer complaints are filed with and resolved by the department;
and
(2) make the information available to the public and
appropriate state agencies.
(b) The department shall maintain a file on each written
complaint filed with the department. The file must include:
(1) the name of the person who filed the complaint;
(2) the date the complaint is received by the
department;
(3) the subject matter of the complaint;
(4) the name of each person contacted in relation to
the complaint;
(5) a summary of the results of the review or
investigation of the complaint; and
(6) an explanation of the reason the file was closed.
(c) The department shall provide to the person filing the
complaint and to each person who is a subject of the complaint a
written summary of the department's policies and procedures
relating to complaint investigation and resolution .
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended
by Acts 2001, 77th Leg., ch. 699, § 2, eff. Sept. 1, 2001.
§ 12.109. SUNSET PROVISION. The office of banking
commissioner is subject to Chapter 325, Government Code (Texas
Sunset Act). Unless continued in existence as provided by that
chapter, the office is abolished September 1, 2013.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended
by Acts 2001, 77th Leg., ch. 699, § 3, eff. Sept. 1, 2001.
§ 12.111. STANDARDS OF CONDUCT. The banking
commissioner or the banking commissioner's designee shall provide
to agency employees, as often as necessary, information regarding
the requirements for office or employment under this chapter,
including information regarding a person's responsibilities under
applicable laws relating to standards of conduct for state officers
or employees.
Added by Acts 2001, 77th Leg., ch. 699, § 4, eff. Sept. 1, 2001.
§ 12.112. EQUAL EMPLOYMENT OPPORTUNITY
POLICY. (a) The banking commissioner or the banking
commissioner's designee shall prepare and maintain a written policy
statement that implements a program of equal employment opportunity
to ensure that all personnel decisions are made without regard to
race, color, disability, sex, religion, age, or national origin.
(b) The policy statement must include:
(1) personnel policies, including policies relating
to recruitment, evaluation, selection, training, and promotion of
personnel, that show the intent of the department to avoid the
unlawful employment practices described by Chapter 21, Labor Code;
and
(2) an analysis of the extent to which the composition
of the department's personnel is in accordance with state and
federal law and a description of reasonable methods to achieve
compliance with state and federal law.
(c) The policy statement must:
(1) be updated annually;
(2) be reviewed by the state Commission on Human
Rights for compliance with Subsection (b)(1); and
(3) be filed with the governor's office.
Added by Acts 2001, 77th Leg., ch. 699, § 4, eff. Sept. 1, 2001.
§ 12.113. EMPLOYEE INCENTIVE PROGRAM. The banking
commissioner or the banking commissioner's designee shall provide
to agency employees information and training on the benefits and
methods of participation in the state employee incentive program.
Added by Acts 2001, 77th Leg., ch. 699, § 4, eff. Sept. 1, 2001.
