Part 1.
FINANCE COMMISSION OF TEXAS
Chapter 3.
STATE BANK REGULATION
Subchapter B. GENERAL
7 TAC §3.36, §3.37
The Finance Commission of Texas (commission) adopts amendments
to §3.36, concerning annual assessments and specialty examination fees,
and §3.37, concerning the calculation of annual assessment for banks,
without changes to the proposed text as previously published in the July 4,
2003, issue of the
Texas Register
(28 TexReg
5018). The text will not be republished.
Sections 3.36 and 3.37 govern the calculation and payment of fees that
the Texas Department of Banking (department) is authorized to recover for
maintaining and operating the department and enforcing applicable provisions
of the Finance Code. The amendments to §3.36 address needed clarifications
and revisions regarding the due dates and method of payment of assessment
fees, and increase the fee charged for specialty examinations. The amendments
to §3.37 change the assessment rates applicable to state banks and increase
the amount of a bank's annual assessment.
Amended §3.36(d)(1) requires a bank to pay its annual assessment to
the department by electronic payment/ACH transfer in quarterly installments
to be debited effective September 15, December 15, March 15, and June 15 of
each year, or by other means directed by the department, and formalizes current
practice.
Amended §3.36(d)(2)-(3) changes the due dates that foreign bank branches,
agencies and representative offices must pay their quarterly installments
from the first day of September, December, March, and June to the 15th day
of those months. The amendment to §3.36(d)(3) also moves the current §3.36(j)
into subsection (d).
Amended §3.36(h)(1) increases the fee the department imposes for specialty
examinations from $500 per examiner per day to $600 per examiner per day.
The increase is necessary because the existing fee does not generate sufficient
revenue to cover the costs of the examinations, including the salary expense
of examiners plus a proportionate share of department overhead allocable to
the examination function. The department reviewed the aggregate costs incurred
in conducting specialty examinations and the aggregate collections from examinations
conducted during fiscal year 2003, and determined that the $100 per examiner
per day increase would enable the department to more fully recover its examination
costs.
The remaining amendments to §3.36 are intended as either conforming
changes or clarifications without substantive effect.
Amended §3.37 adjusts certain variables used to calculate the annual
assessment fees the department imposes on state banks. A state bank's assessment
is calculated on the basis of its assessable assets using three factors: (1)
a base assessment amount; (2) a multiplication factor; and (3) the examination
frequency. The amendments to §3.37 increase the base assessment amounts
and the multiplication factors applicable to the assessable asset groups and
increase the assessment for all state banks. Amended §3.37 also changes
the policy memorandum reference in the existing §3.37 table to Supervisory
Memorandum 1003 to conform the reference to the memorandum currently in effect.
The changes are shown in amended Figure: 7 TAC §3.37, which replaces
the table in existing 7 TAC §3.37.
The increase in assessments effected by the amendments is necessary to
cover the salary expenses and recover the cost of the department's operations
related to its supervision of the banking industry. To determine the needed
increase in base assessment amounts and multiplication factors reflected in
amended §3.37, the department reviewed current and projected staffing
needs and projected the future cost of maintaining and operating the department
and enforcing Finance Code, Title 3, Subtitles A and G. The department determined
the aggregate annual assessment fees it must collect starting in fiscal year
2004 to cover anticipated costs, then projected the aggregate annual assessment
fees it was likely to collect based upon the existing rates and calculations
in §3.37. In order to meet the projected shortfall in revenue, the department
determined to increase the annual assessment fees for all state banks. Amended §3.37
does so in a manner that is ratable and equitable.
The specialty examination fee and annual assessment rate increases are
established by the commission and not mandated by the Legislature.
Two state banks submitted comments regarding the proposed fee and assessment
increases. One commenter specifically supported the increases, and the other
recognized the need for them and the absence of alternative means by which
the department could secure the revenue necessary to discharge its supervisory
responsibilities.
The amendments are adopted pursuant to Finance Code, §§11.301,
31.003(a)(4), 31.106, and 201.003(a)(4), which authorize the commission to
adopt rules necessary or reasonable to recover the cost of supervision and
regulation by imposing and collecting ratable and equitable fees.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on August 15, 2003.
TRD-200305222
Everette D. Jobe
Certifying Official
Finance Commission of Texas
Effective date: September 4, 2003
Proposal publication date: July 4, 2003
For further information, please call: (512) 475-1300
Chapter 17.
TRUST COMPANY REGULATION
Subchapter B. EXAMINATION AND CALL REPORTS
Part 2.
TEXAS DEPARTMENT OF BANKING