(a) The comptroller may revoke a depository’s designation as a state depository for one year if, after notice and a hearing, the comptroller makes a written finding that the depository, while acting as either a depository or a custodian:
(1) did not maintain reasonable compliance with this chapter; and
(2) failed to remedy a violation of this chapter within a reasonable time after receiving written notice of the violation.
(b) The comptroller may permanently revoke a depository’s designation as a state depository if the comptroller makes a written finding that the depository:
(1) has not maintained reasonable compliance with this chapter; and
(2) has acted in bad faith by not remedying a violation of this chapter.