Texas House Bill HB2282

Texas 2011 - 82nd Regular

• Out of House Committee: 3/28/11
• Introduced: 3/4/11
• Refer: 3/10/11
• Report Pass: 3/22/11

Caption

Relating to certain enforcement powers of the banking commissioner; providing administrative penalties.

Impact

The proposed legislation aims to strengthen the regulatory framework governing financial institutions in Texas. By allowing the banking commissioner to impose significant administrative penalties, the bill is designed to deter misconduct and ensure compliance with existing financial regulations. This increased regulatory oversight could foster a more reliable banking environment, potentially protecting consumers and securing the financial stability of the state’s banking sector.

Summary

House Bill 2282 seeks to amend Texas Finance Code to enhance the enforcement powers of the banking commissioner. The bill empowers the commissioner to initiate administrative penalties against banks or individuals for violations of banking regulations. This includes a structured penalty system, where a state trust company could face penalties ranging from $500 to $10,000 per violation per day, with a cap of $500,000 or 1% of the institution's assets. For individuals not part of a state trust company, the penalties are scaled down to between $500 and $5,000 per violation per day, capped at $250,000.

Contention

Key points of contention surrounding HB 2282 may include debates over the appropriateness of the penalty structures and concerns about the potential for overreach by the banking commissioner. Some critics might argue that the bill grants excessive power to the commissioner, which could lead to unfair practices or penalization of institutions for minor infractions. On the other hand, proponents contend that such measures are necessary for maintaining the integrity of the financial system and that they align with contemporary regulatory practices.