The banking commissioner may start an administrative-penalty proceeding against a bank or other person by serving notice of the hearing. The hearing cannot be held until at least 20 days after service, and the notice must meet specified content and delivery requirements.
Sec. 35.010. ADMINISTRATIVE PENALTY. (a) The banking commissioner may initiate a proceeding for an administrative penalty against a bank or other person by serving on the bank or other person, as applicable, notice of the time and place of a hearing on the penalty. The hearing may not be held earlier than the 20th day after the date the notice is served. The notice must: (1) be served by personal delivery or by registered or certified mail, return receipt requested; (2) contain a statement of the conduct alleged to constitute a violation; and (3) if the alleged violation is described by Section 35.009(a)(1) or (2), identify corrective action that the bank or other person must take to avoid or reduce the amount of a penalty that would otherwise be imposed under this section. (b) In determining the amount of any penalty to be imposed, the banking commissioner shall consider the following factors: (1) the financial resources of the bank or other person; (2) the good faith of the bank or other person, including any corrective action taken; (3) the gravity of the violation; (4) the history of previous violations; (5) an offset of the amount of the penalty by the amount of any penalty imposed by another state or federal agency for the same conduct; and (6) any other matter that justice may require. (c) If the banking commissioner determines after the hearing that the alleged conduct occurred and that the conduct constitutes a violation, the banking commissioner may impose an administrative penalty against a bank or other person, as applicable, in an amount: (1) if imposed against a bank, not more than $10,000 for each violation for each day the violation continues, except that the maximum administrative penalty that may be imposed is the lesser of $500,000 or one percent of the bank's assets; or (2) if imposed against a person other than a bank, not more than $5,000 for each violation for each day the violation continues, except that the maximum administrative penalty that may be imposed is $250,000. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997. Amended by: Acts 2011, 82nd Leg., R.S., Ch. 183 (S.B. 1165), Sec. 6, eff. May 28, 2011. Acts 2019, 86th Leg., R.S., Ch. 652 (S.B. 1823), Sec. 5, eff. September 1, 2019.