TITLE 7. BANKING AND SECURITIES
PART 1. FINANCE COMMISSION OF TEXAS
CHAPTER 3. STATE BANK REGULATION
SUBCHAPTER
F.
The Finance Commission of Texas (Commission), on behalf of the Texas Department of Banking (Department), proposes the repeal of an existing rule at 7 Texas Administrative Code (TAC), Part 1, Chapter 3, Subchapter F, §3.112, regarding what the Department may charge for providing public information. The proposed rule implements a recommendation stemming from the Texas Regulatory Efficiency Office's collaborative process aimed at removing unnecessary language and improving rule readability.
Description and Purpose of Proposed Repeal
The proposed rule will repeal §3.112 in its entirety. Because the requirements for public information charges are already established by §552.261 of the Texas Public Information Act (Tex. Gov't Code § 552.261), the rule is unnecessary and its repeal will not affect any substantive right of the public.
Fiscal and Regulatory Impact
Texas Department of Banking Executive Deputy Commissioner Wendy Rodriguez has determined that for the first five-year period the proposed rule is in effect, there will be no fiscal implications for state government or for local government as a result of enforcing or administering the rule.
Ms. Rodriguez has also determined that, for each year of the first five years the rule as proposed is in effect, the public would benefit from improved clarity and organization of the Department's rules.
For each year of the first five years that the rule will be in effect, there will be no economic costs to persons required to comply with the rule as proposed.
For each year of the first five years that the proposed rule will be in effect, it will not:
- create or eliminate a government program;
- require the creation of new employee positions or the elimination of existing employee positions;
- require an increase or decrease in future legislative appropriations to the agency;
- require an increase or decrease in fees paid to the agency;
- create a new regulation;
- increase or decrease the number of individuals subject to the rule's applicability; or
- positively or adversely affect this state's economy.
The proposed rule will, however, repeal an existing regulation.
There will be no adverse economic effect on small businesses, micro-businesses, or rural communities. There will be no difference in the cost of compliance for these entities.
To be considered, comments on the proposed rule must be submitted no later than 5:00 p.m. on October 4, 2026. Comments should be addressed to General Counsel, Texas Department of Banking, Legal Division, 2601 North Lamar Boulevard, Suite 300, Austin, Texas 78705-4294. Comments may also be submitted by email to legal@dob.texas.gov.
The proposed rule is authorized by Texas Finance Code §31.003, which provides that the Commission may adopt rules to implement and clarify Finance Code, Title 3, Subtitle A.
No statute is affected by the proposed repealed rule.
§3.112.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on August 24, 2026.
TRD-202603724
Robert K. Nichols, III
General Counsel
Finance Commission of Texas
Earliest possible date of adoption: October 11, 2026
For further information, please call: (512) 475-1327
CHAPTER 5. ADMINISTRATION OF FINANCE AGENCIES
7 TAC §5.105The Finance Commission of Texas (Commission), on behalf of the Texas Department of Banking (Department), proposes the repeal of an existing rule at 7 Texas Administrative Code (TAC), Part 1, Chapter 5, §5.105, regarding negotiated rulemaking procedures. The proposed rule implements a recommendation stemming from the Texas Regulatory Efficiency Office's collaborative process aimed at removing unnecessary language and improving rule readability.
Description and Purpose of Proposed Amendment
The proposed rule will repeal §5.105 in its entirety and will move its current text into existing §9.85. As both rules address the same subject negotiated rulemaking procedures for Finance Commission agencies consolidating these rules removes redundancy and places all relevant requirements in one section.
The Commission is also proposing a corresponding amendment to §9.85.
Fiscal and Regulatory Impact
Texas Department of Banking Executive Deputy Commissioner Wendy Rodriguez has determined that for the first five-year period the proposed rule is in effect, there will be no fiscal implications for state government or for local government as a result of enforcing or administering the rule.
Ms. Rodriguez has also determined that, for each year of the first five years the rule as proposed is in effect, the public will benefit from improved clarity and organization of the Commission's rules.
For each year of the first five years that the rule will be in effect, there will be no economic costs to persons required to comply with the rule as proposed.
For each year of the first five years that the proposed rule will be in effect, it will not:
- create or eliminate a government program;
- require the creation of new employee positions or the elimination of existing employee positions;
- require an increase or decrease in future legislative appropriations to the agency;
- require an increase or decrease in fees paid to the agency;
- create a new regulation;
- increase or decrease the number of individuals subject to the rule's applicability; or
- positively or adversely affect this state's economy.
The proposed rule will, however, repeal an existing regulation.
There will be no adverse economic effect on small businesses, micro-businesses, or rural communities. There will be no difference in the cost of compliance for these entities.
To be considered, comments on the proposed rule must be submitted no later than 5:00 p.m. on October 4, 2026. Comments should be addressed to General Counsel, Texas Department of Banking, Legal Division, 2601 North Lamar Boulevard, Suite 300, Austin, Texas 78705-4294. Comments may also be submitted by email to legal@dob.texas.gov.
The proposed rule is authorized by Texas Finance Code §12.113, which provides that the Commission by rule shall adopt a policy to encourage the use of negotiated rulemaking procedures.
Finance Code §12.113 is affected by the proposed repealed rule.
§5.105.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on August 24, 2026.
TRD-202603725
Robert K. Nichols, III
General Counsel
Finance Commission of Texas
Earliest possible date of adoption: October 11, 2026
For further information, please call: (512) 475-1327
CHAPTER 9. RULES OF PROCEDURE FOR CONTESTED CASE HEARINGS, APPEALS, AND RULEMAKINGS
SUBCHAPTER
B.
The Finance Commission of Texas (Commission) proposes amendments to existing rules at 7 Texas Administrative Code (TAC), Part 1, Chapter 9, Subchapter B, §§9.11, 9.20, 9.30, 9.32, 9.34, and 9.37, regarding the Commission's procedures for contested case hearings, appeals, and rulemakings. The proposed rules implement recommendations from the Texas Regulatory Efficiency Office's recommendations aimed at removing unnecessary language and improving the rules' readability.
The proposed amendment to §9.11 would require the Department to provide a hyperlink to the Department's rules rather than providing a physical copy of the rules. This change will remove an outdated practice that imposes unnecessary printing costs without improving respondent access.
The proposed amendments to §9.32 would modernize the rule's language by retitling the section "Remote Hearings" (rather than "Telephone Hearings"), and extending the rule's applicability to hearings held by telephone, videoconference, or other electronic means. Additionally, the proposed rule would reduce - from 20 minutes to 10 minutes - the time after which the administrative law judge may consider a party to have failed to appear. The proposed amendments also add language to clarify when a person who connects to a remote hearing will be considered to have failed to appear. Lastly, the proposed rule replaces the term "sua sponte" with "on the judge's own motion."
The proposed amendments to §9.34 reword and reorganize the section for increased readability, and set the deadlines for exceptions and briefs to be filed to 15 days, in alignment with the deadlines set out in the State Office of Administrative Hearings' rule at 1 TAC §155.507 (relating to Proposals for Decision; Exceptions and Replies).
The proposed amendments to §§9.20, 9.30, and 9.37 simply improve readability by replacing the Latin legal term "sua sponte" with "on the judge's own motion."
Texas Department of Banking Executive Deputy Commissioner Wendy Rodriguez has determined that for the first five-year period the proposed rule is in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.
Ms. Rodriguez has also determined that, for each year of the first five years the proposed rules are in effect, the public would benefit from the rules' improved readability, clarity, and organization.
For each year of the first five years that the rule will be in effect, there will be no economic costs to persons required to comply with the rule as proposed.
For each year of the first five years that the rule will be in effect, the proposed rules will not:
-create or eliminate a government program;
-require the creation of new employee positions or the elimination of existing employee positions;
-require an increase or decrease in future legislative appropriations to the agency;
-require an increase or decrease in fees paid to the agency;
-create a new regulation;
-expand, limit, or repeal an existing regulation;
-increase or decrease the number of individuals subject to the rule's applicability; or
-positively or adversely affect this state's economy.
There will be no adverse economic effect on small businesses, micro-businesses, or rural communities, nor will there be a difference in the cost of compliance for these entities.
To be considered, comments on the proposed rules must be submitted no later than 5:00 p.m. on October 4, 2026. Comments should be addressed to General Counsel, Texas Department of Banking, Legal Division, 2601 North Lamar Boulevard, Suite 300, Austin, Texas 78705-4294. Comments may also be submitted by email to legal@dob.texas.gov.
These amendments are proposed under §31.003(a)(5) of the Texas Finance Code, which provides authority for the Commission to adopt rules to facilitate the fair hearing and adjudication of matters before the Banking Commissioner and the Finance Commission.
No statute is affected by the proposed rules.
§9.11.
(a) (No change.)
(b) Notice of a disciplinary proceeding that is required to be preceded by a hearing must be signed by the agency head or administrative law judge and must contain:
(1) - (6) (No change.)
(7)
a citation to this chapter with a direct link to the current version of this chapter as published in the Texas Administrative Code [copy of this chapter included as an attachment];
(8) - (9) (No change.)
(c) - (d) (No change.)
§9.20.
(a)
On the judge's own motion [Sua sponte] or on the motion of any party, the administrative law judge may direct that the parties or their authorized representatives appear at a prehearing conference to consider any of the matters specified in Rule 166, Texas Rules of Civil Procedure (other than those matters having to do with trial by jury).
(b) (No change.)
§9.30.
The administrative law judge may take official notice of judicially cognizable facts, and of generally recognized facts within the area of the agency's specialized knowledge. A party that desires the administrative law judge to take official notice of particular facts must make a motion that the administrative law judge do so, stating with specificity the facts, material, records, or documents encompassed in the motion. A party who opposes the motion will have the opportunity to contest the requested action. The administrative law judge may also on the judge’s own motion [sua sponte] take official notice of facts, material, records, or documents on giving the parties an opportunity to contest the facts, material, records, or documents to be officially noticed.
§9.32. Telephone Hearings].
(a)
On the judge's own motion [Sua sponte] or on motion of any party and a showing of good cause, after reasonable notice to all parties to allow them to object and argue against the procedure, the administrative law judge may conduct all or part of a hearing by telephone, videoconference, or other electronic means.
(b)
In determining whether to allow testimony by telephone, videoconference, or other electronic means, the administrative law judge shall consider all relevant factors including whether the motion is opposed, the cost and feasibility of the witness being physically present at the hearing instead of appearing by [telephone or] other [electronic] means, the nature and duration of the expected testimony, the nature of any exhibits expected to be introduced through the witness, whether there is a good reason that the witness is unavailable to testify in person, and the extent to which the demeanor and credibility of the witness are likely to be significant factors in weighing the witness' testimony. In deciding a motion under this section, the administrative law judge shall ensure that substantive and procedural rights of all parties are respected.
(c) [(b)] Documentary evidence to be offered during a [telephone] hearing held via telephone, videoconference, or other electronic means must be delivered by the proponent to all parties and to the administrative law judge prior to the hearing.
(d) [(c)] For [In] a [telephone] hearing held via telephone, videoconference, or other electronic means, the administrative law judge may consider the following as a failure to appear if the conditions exist for more than 10 [20] minutes after the scheduled time for hearing:
(1)
failure to connect to the hearing [answer the telephone];
(2)
failure to be available on the designated platform for the hearing [free the telephone for a hearing]; or
(3) failure to be ready to proceed with the hearing as scheduled.
§9.34.
(a) Following the hearing, the administrative law judge shall prepare and serve a proposal for decision in accordance with Government Code, §2001.062.
(1) On a party's request, the administrative law judge shall allow the parties to file written briefs and proposed findings of fact and conclusions of law before preparing the proposal for decision.
(2) Unless the administrative law judge orders otherwise:
(A) exceptions and briefs must be filed not later than the 15th day after the proposal for decision is issued; and
(B) a reply must be filed not later than the 15th day after the exception or brief it responds to is filed.
(3) The administrative law judge shall review all exceptions and replies and notify the referring agency and parties whether the judge recommends any changes to the proposal for decision.
[(a) Following the hearing the administrative law judge upon request shall give the parties an opportunity to file written briefs and proposed findings of fact and conclusions of law. Pursuant to Government Code, §2001.062, the administrative law judge shall review these materials and all evidence and testimony, and prepare a proposal for decision containing a statement of the reasons for the proposed decision and of each finding of fact and conclusion of law necessary to the proposed decision. The administrative law judge shall also prepare a proposed final order for the agency head to sign adopting the proposed decision. Upon completion, the administrative law judge shall serve copies of the proposal for decision and proposed final order on all parties and give each adversely affected party an opportunity to file exceptions and present briefs. If a party files exceptions or presents briefs, the administrative law judge shall give an opportunity to other parties to file replies to the exceptions or briefs. Exceptions, replies to exceptions, and related briefs must be filed within deadlines established by the administrative law judge. The administrative law judge may amend the proposal for decision and proposed final order in response to the exceptions, replies, or briefs submitted. If the administrative law judge makes substantive revisions, the administrative law judge shall circulate the amended proposal for decision and proposed final order to the parties for additional exceptions and briefs before submitting the proposal for decision and the proposed final order based thereon to the agency head(s) for approval.]
(b) After the period under subsection (a)(2) has expired, the administrative law judge shall submit the proposal for decision and the materials listed in Government Code, §2001.060, to the agency head(s). On review, the agency head(s) may:
(1) adopt the proposal for decision in whole or in part;
(2) modify and adopt the proposal for decision in whole or in part;
(3) decline to adopt the proposal for decision in whole or in part;
(4) remand the proceeding for further examination by the administrative law judge, including for the limited purpose of receiving additional briefing or evidence from the parties on specific issues; or
(5) take another lawful and appropriate action with regard to the case.
[(b) After the administrative law judge has circulated the proposal for decision and proposed order to the parties and the parties have had an opportunity to file exceptions and briefs in the manner provided in subsection (a) of this section, the administrative law judge shall submit the proposal for decision and proposed order together with all materials listed in Government Code, §2001.060, to the agency head(s) for review. No additional briefs may be submitted after the case is under submission to the agency head(s) for decision unless requested by the agency head(s). The agency head(s) may:]
[(1) adopt the proposal for decision and proposed final order, in whole or in part;]
[(2) modify and adopt the proposal for decision and proposed final order, in whole or in part;]
[(3) decline to adopt the proposal for decision and proposed final order, in whole or in part;]
[(4) remand the proceeding for further examination by the administrative law judge, including for the limited purpose of receiving additional briefing or evidence from the parties on specific issues; or]
[(5) take another lawful and appropriate action with regard to the case.]
(c) - (d) (No change.)
§9.37.
(a)
On the judge's own motion [Sua sponte] or on motion of a party and after notice and an opportunity for a hearing and subject to approval by the agency head on behalf of which the hearing is being conducted, the administrative law judge may impose appropriate sanctions as provided by subsection (b) of this section against a party or its representative for:
(1) filing a motion or pleading that is groundless and brought:
(A) in bad faith;
(B) for the purpose of harassment; or
(C) for any other improper purpose, such as to cause unnecessary delay or needless increase in the cost of the proceeding;
(2) abuse of the discovery process in seeking, making, or resisting discovery; or
(3) failure to obey an order of the administrative law judge.
(b) (No change.)
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on August 24, 2026.
TRD-202603726
Robert K. Nichols, III
General Counsel
Finance Commission of Texas
Earliest possible date of adoption: October 11, 2026
For further information, please call: (512) 475-1327
SUBCHAPTER
D.
The Finance Commission of Texas (Commission), on behalf of the Texas Department of Banking (Department), proposes the amendment of an existing rule at 7 Texas Administrative Code (TAC), Part 1, Chapter 9, Subchapter D, §9.85, regarding negotiated rulemaking procedures. The proposed rule implements a recommendation stemming from the Texas Regulatory Efficiency Office's collaborative process aimed at removing unnecessary language and improving rule readability.
Description and Purpose of Proposed Amendment
The proposed rule incorporates the language of existing 7 TAC §5.105 into new subsection §9.85(f). As both rules address the same subject negotiated rulemaking procedures for Finance Commission agencies consolidating these rules removes redundancy and places all relevant requirements in one section.
The Commission is also proposing a corresponding repeal of §5.105.
Fiscal and Regulatory Impact
Texas Department of Banking Executive Deputy Commissioner Wendy Rodriguez has determined that for the first five-year period the proposed rule is in effect, there will be no fiscal implications for state government or for local government as a result of enforcing or administering the rule.
Ms. Rodriguez has also determined that, for each year of the first five years the proposed rule is in effect, the public will benefit from improved clarity and organization of the Commission's rules.
For each year of the first five years that the proposed rule will be in effect, there will be no economic costs to persons required to comply with the rule as proposed.
For each year of the first five years that the rule will be in effect, the rule will not:
- create or eliminate a government program;
- require the creation of new employee positions or the elimination of existing employee positions;
- require an increase or decrease in future legislative appropriations to the agency;
- require an increase or decrease in fees paid to the agency;
- create a new regulation;
- expand, limit or repeal an existing regulation;
- increase or decrease the number of individuals subject to the rule's applicability; and
- positively or adversely affect this state's economy.
There will be no adverse economic effect on small businesses, micro-businesses, or rural communities. There will be no difference in the cost of compliance for these entities.
To be considered, comments on the proposed rule must be submitted no later than 5:00 p.m. on October 4, 2026. Comments should be addressed to General Counsel, Texas Department of Banking, Legal Division, 2601 North Lamar Boulevard, Suite 300, Austin, Texas 78705-4294. Comments may also be submitted by email to legal@dob.texas.gov.
The proposed rule is authorized by Texas Finance Code, §12.113, which provides that the Commission by rule shall adopt a policy to encourage the use of negotiated rulemaking procedures.
Finance Code §12.113 is affected by the proposed repealed rule.
§9.85.
(a) Initiation of process. An agency may propose to engage in negotiated rulemaking process pursuant to Texas Government Code, Chapter 2008 if:
(1) the finance commission votes to initiate a rulemaking proceeding under §9.82 of this title (relating to Petitions To Initiate Rulemaking) that includes negotiated rulemaking; or
(2) the agency determines that drafting the proposed rule might benefit from the negotiated rulemaking process.
(b) Appointment of a convener. Upon proposing a negotiated rulemaking process under subsection (a) of this section, the agency will appoint a convener to assist in determining whether it is advisable to proceed with negotiated rulemaking. The convener will be appointed pursuant to, and perform the duties described by, Texas Government Code, §2008.052.
(c) Notice of negotiated rulemaking. If the agency decides to engage in negotiated rulemaking after considering the convener's recommendation and report, then the agency will publish timely notice of its intent on its website and with the secretary of state for publication in the Texas Register in compliance with Texas Government Code, §2008.053.
(d) Appointment of facilitator and committee. The agency will appoint a facilitator and members of the negotiated rulemaking committee to carry out the duties described in Texas Government Code, §2008.056.
(e) Adoption of rule. The finance commission may adopt, amend, or refuse to adopt a rule created through the negotiated rulemaking process in its sole discretion.
(f) Policy, coordination, and reporting.
(1) It is the policy of the finance commission to encourage the use of negotiated rulemaking procedures under Texas Government Code, Chapter 2008 for the adoption of rules in appropriate situations.
(2) The finance agencies will coordinate with each other as reasonable to implement the use of negotiated rulemaking procedures and provide training as needed to implement the use of negotiated rulemaking procedures.
(3) Each agency will collect data concerning the effectiveness of negotiated rulemaking procedures, and report to the finance commission its use of negotiated rulemaking procedures.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on August 24, 2026.
TRD-202603727
Robert K. Nichols, III
General Counsel
Finance Commission of Texas
Earliest possible date of adoption: October 11, 2026
For further information, please call: (512) 475-1327