Bill Text: TX HB2134 | 2013-2014 | 83rd Legislature | Enrolled
Bill Title: Relating to the regulation of money services businesses.
Spectrum: Bipartisan Bill
Status: (Passed) 2013-06-14 - Effective on 9/1/13 [HB2134 Detail]
Download: Texas-2013-HB2134-Enrolled.html
H.B. No. 2134 |
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relating to the regulation of money services businesses. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 151.002(b)(3), Finance Code, is amended | ||
to read as follows: | ||
(3) "Bank Secrecy Act" means the Bank Secrecy Act (31 | ||
U.S.C. Section 5311 et seq.), and its implementing regulations [ |
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SECTION 2. Section 151.104(a), Finance Code, is amended to | ||
read as follows: | ||
(a) The commissioner may conduct investigations in or | ||
outside this state and the United States as the commissioner | ||
considers necessary or appropriate to administer and enforce this | ||
chapter, including investigations to: | ||
(1) determine whether to approve an application for | ||
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filed under this chapter or a rule adopted or order issued under | ||
this chapter; | ||
(2) determine whether a person has violated or is | ||
likely to violate this chapter or a rule adopted or order issued | ||
under this chapter; | ||
(3) determine whether a license or authorized delegate | ||
designation should be revoked or suspended; | ||
(4) otherwise aid in the enforcement of this chapter | ||
or a rule adopted or order issued under this chapter; and | ||
(5) aid in the adoption of rules or issuance of orders | ||
under this chapter. | ||
SECTION 3. Section 151.105, Finance Code, is amended by | ||
adding Subsection (b-1) to read as follows: | ||
(b-1) To efficiently and effectively administer and enforce | ||
this chapter and to minimize regulatory burden, the commissioner | ||
may cooperate, coordinate, and share information with an | ||
organization the membership of which is made up of state or federal | ||
governmental agencies described by Subsection (a). The | ||
commissioner may: | ||
(1) enter into a written cooperation, coordination, or | ||
information-sharing contract or agreement with the organization; | ||
and | ||
(2) share information, provided that the organization | ||
agrees in writing to maintain the confidentiality and security of | ||
the shared information. | ||
SECTION 4. Subchapter C, Chapter 151, Finance Code, is | ||
amended by adding Section 151.2031 to read as follows: | ||
Sec. 151.2031. USE OF NATIONWIDE MORTGAGE LICENSING SYSTEM | ||
AND REGISTRY. (a) In this section, "Nationwide Mortgage Licensing | ||
System and Registry" or "nationwide registry" means a licensing | ||
system developed and maintained by the Conference of State Bank | ||
Supervisors or an affiliated organization to manage mortgage | ||
licenses and other financial services licenses, or a successor | ||
registry. | ||
(b) The commissioner may require that a person submit | ||
through the Nationwide Mortgage Licensing System and Registry in | ||
the form and manner prescribed by the commissioner and acceptable | ||
to the registry any information or document or payment of a fee | ||
required to be submitted under this chapter or rules adopted under | ||
this chapter. | ||
(c) The commissioner may use the nationwide registry as a | ||
channeling agent for obtaining information required for licensing | ||
purposes under this chapter or rules adopted under this chapter, | ||
including: | ||
(1) criminal history record information from the | ||
Federal Bureau of Investigation, the United States Department of | ||
Justice, or any other agency or entity at the commissioner's | ||
discretion; | ||
(2) information related to any administrative, civil, | ||
or criminal findings by a governmental jurisdiction; and | ||
(3) information requested by the commissioner under | ||
Section 151.203(a)(3). | ||
SECTION 5. The heading to Section 151.207, Finance Code, is | ||
amended to read as follows: | ||
Sec. 151.207. CONTINUATION [ |
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REPORT AND FEE. | ||
SECTION 6. Sections 151.207(a), (b), (c), (d), (e), and | ||
(f), Finance Code, are amended to read as follows: | ||
(a) If a [ |
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satisfy the requirements that apply to an applicant for a new money | ||
transmission license or currency exchange license, as applicable, | ||
the commissioner may suspend or revoke the license holder's | ||
license. | ||
(b) In addition to complying with Subsection (a) | ||
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must annually: | ||
(1) pay a license [ |
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established by commission rule; and | ||
(2) submit a [ |
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the form and medium required by the commissioner, and contains: | ||
(A) if the license is a money transmission | ||
license, an audited unconsolidated financial statement dated as of | ||
the last day of the license holder's fiscal year that ended in the | ||
immediately preceding calendar year; | ||
(B) if the license is a currency exchange | ||
license, a financial statement, audited or unaudited, dated as of | ||
the last day of the license holder's fiscal year that ended in the | ||
immediately preceding calendar year; and | ||
(C) documentation and certification, or any | ||
other information the commissioner reasonably requires to | ||
determine the security, net worth, permissible investments, and | ||
other requirements the license holder must satisfy and whether the | ||
license holder continues to meet the qualifications and | ||
requirements for licensure. | ||
(c) If the department does not receive a license holder's | ||
annual license [ |
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on or before the due date prescribed by the commissioner under this | ||
section [ |
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in writing that: | ||
(1) the license holder shall [ |
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submit the [ |
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later than the 45th day after the due date prescribed by the | ||
commissioner; and | ||
(2) the license holder must pay a late fee, in an | ||
amount that is established by commission rule and not subject to | ||
appeal, for each business day after the report due date specified by | ||
the commissioner [ |
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the completed [ |
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(d) If the license holder fails to submit the completed | ||
annual [ |
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and any late fee due within the time prescribed by Subsection | ||
(c)(1), the license expires [ |
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engaging in the business of money transmission or currency | ||
exchange, as applicable, as of that date [ |
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license is not subject to appeal. | ||
(e) On timely receipt of a license holder's complete annual | ||
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due, the department shall review the report and, if necessary, | ||
investigate the business and records of the license holder. On | ||
completion of the review and investigation, if any, the | ||
commissioner may: | ||
(1) [ |
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license the commissioner considers [ |
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necessary or appropriate; or | ||
(2) [ |
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of a ground specified in Section 151.703. | ||
(f) On written application and for good cause shown, the | ||
commissioner may extend the due date [ |
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license fee and annual report required under this section. | ||
SECTION 7. Section 151.208(c), Finance Code, is amended to | ||
read as follows: | ||
(c) The surrender of a license does not reduce or eliminate | ||
a license holder's civil or criminal liability arising from any | ||
acts or omissions before the surrender of the license, including | ||
any administrative action undertaken by the commissioner to [ |
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an administrative penalty, to order the payment of restitution, or | ||
to exercise any other authority under this chapter. Further, the | ||
surrender of a license does not release the security required of the | ||
license holder under Section 151.308 or 151.506. | ||
SECTION 8. Section 151.209, Finance Code, is amended to | ||
read as follows: | ||
Sec. 151.209. REFUNDS. A fee or cost paid under this | ||
chapter [ |
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refundable. | ||
SECTION 9. Section 151.301(b)(8), Finance Code, is amended | ||
to read as follows: | ||
(8) "Stored value" means monetary value evidenced by | ||
an electronic record that is prefunded and for which value is | ||
reduced on each use. The term includes prepaid access as defined by | ||
31 C.F.R. Section 1010.100(ww). The term does not include an | ||
electronic record that is: | ||
(A) loaded with points, miles, or other | ||
nonmonetary value; [ |
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(B) not sold to the public but distributed as a | ||
reward or charitable donation; or | ||
(C) redeemable only for goods or services from a | ||
specified merchant or set of affiliated merchants, such as: | ||
(i) a specified retailer or retail chain; | ||
(ii) a set of affiliated companies under | ||
common ownership; | ||
(iii) a college campus; or | ||
(iv) a mass transportation system. | ||
SECTION 10. Section 151.306(b), Finance Code, is amended to | ||
read as follows: | ||
(b) The effective period for a temporary license may not | ||
exceed 90 days from the date the license is issued, provided that | ||
the commissioner may extend the period for not more than an | ||
additional 90 [ |
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timely filed application for which approval is likely. | ||
SECTION 11. Section 151.308(c), Finance Code, is amended to | ||
read as follows: | ||
(c) The security must: | ||
(1) be in a form satisfactory to the commissioner; | ||
(2) be payable to any claimant or to the commissioner, | ||
on behalf of a claimant or this state, for any liability arising out | ||
of the license holder's money transmission business in this state, | ||
incurred under, subject to, or by virtue of this chapter; and | ||
(3) [ |
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qualified surety company authorized to engage in business in this | ||
state and acceptable to the commissioner or, if the security is an | ||
irrevocable letter of credit, be issued by a financial institution | ||
acceptable to the commissioner. | ||
SECTION 12. Section 151.401, Finance Code, is amended to | ||
read as follows: | ||
Sec. 151.401. LIABILITY OF LICENSE HOLDER. A money | ||
transmission license holder is liable for the payment of all money | ||
or monetary value received for transmission [ |
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Section 151.402. | ||
SECTION 13. Sections 151.402(e) and (f), Finance Code, are | ||
amended to read as follows: | ||
(e) A license holder must notify the license holder's | ||
authorized delegates and require the delegates to take any action | ||
required by the commissioner if [ |
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(1) the license holder's license expired or is | ||
surrendered or revoked [ |
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(2) the license holder is subject to an emergency or | ||
final order that affects the conduct of the license holder's | ||
business through an authorized delegate. | ||
(f) A license holder must maintain a current list of | ||
authorized delegates located in this state or doing business with | ||
persons located in this state that includes the name and business | ||
address of each delegate and must provide the list to the | ||
commissioner on request. A license holder that engages in business | ||
through 11 or more authorized delegates located in this state must | ||
include on the license holder's website a list of the names and | ||
addresses of the authorized delegates of the license holder located | ||
in this state and the delegates' business addresses. The license | ||
holder must update the list quarterly. | ||
SECTION 14. Section 151.501(b), Finance Code, is amended by | ||
amending Subdivision (2) and adding Subdivision (3) to read as | ||
follows: | ||
(2) "Currency exchange" means: | ||
(A) receiving [ |
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government and exchanging it for the currency of another | ||
government; or | ||
(B) receiving a negotiable instrument and | ||
exchanging it for the currency of another government. | ||
(3) "Negotiable instrument" has the meaning assigned | ||
by Section 3.104, Business & Commerce Code. | ||
SECTION 15. Sections 151.603(a), (b), and (c), Finance | ||
Code, are amended to read as follows: | ||
(a) An applicant or license holder shall file a written | ||
report with the commissioner not later than the 15th day after the | ||
date the applicant or license holder knows or has reason to know of | ||
a material change in the information reported in an application or | ||
annual [ |
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report must describe the change and the anticipated impact of the | ||
change on the activities of the applicant or license holder in this | ||
state. | ||
(b) A money transmission license holder shall prepare | ||
written reports and statements as follows: | ||
(1) the annual [ |
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151.207(b)(2), including an audited unconsolidated financial | ||
statement that is dated as of the last day of the license holder's | ||
fiscal year that ended in the immediately preceding calendar year; | ||
(2) a quarterly interim financial statement and report | ||
regarding the permissible investments required to be maintained | ||
under Section 151.309 that reflect the license holder's financial | ||
condition and permissible investments as of the last day of the | ||
calendar quarter to which the statement and report relate and that | ||
are prepared not later than the 45th day after the last day of the | ||
calendar quarter; and | ||
(3) any other report required by rule of the | ||
commission or reasonably requested by the commissioner to determine | ||
compliance with this chapter. | ||
(c) A currency exchange license holder shall prepare a | ||
written report or statement as follows: | ||
(1) the annual [ |
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151.207(b)(2), including a financial statement that may be audited | ||
or unaudited and that is dated as of the last day of the license | ||
holder's fiscal year that ended in the immediately preceding | ||
calendar year; | ||
(2) a quarterly interim financial statement and | ||
transaction report that reflects the license holder's financial | ||
condition and currency exchange business as of the last day of the | ||
calendar quarter to which the statement and report relate and that | ||
are prepared not later than the 45th day after the last day of the | ||
calendar quarter; and | ||
(3) any other report required by rule of the | ||
commission or reasonably requested by the commissioner to determine | ||
compliance with this chapter. | ||
SECTION 16. Section 151.604(a), Finance Code, is amended to | ||
read as follows: | ||
(a) A license holder shall file a written report with the | ||
commissioner not later than the 15th day after the date the license | ||
holder knows or has reason to know of a material change in the | ||
information reported in an application or annual [ |
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required under Section 151.207(b)(2). The report must describe | ||
the change and the anticipated impact of the change on the license | ||
holder's activities in this state. | ||
SECTION 17. Section 278.001(1), Finance Code, is amended to | ||
read as follows: | ||
(1) "Currency" has the meaning assigned by Section | ||
151.501 [ |
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SECTION 18. Section 278.053, Finance Code, is repealed. | ||
SECTION 19. As soon as practicable after the effective date | ||
of this Act, the Finance Commission of Texas shall adopt rules | ||
necessary to implement the changes in law made by this Act. | ||
SECTION 20. Section 151.104(a), Finance Code, as amended by | ||
this Act, applies only to an investigation commenced on or after the | ||
effective date of this Act. An investigation commenced before the | ||
effective date of this Act is governed by the law in effect on the | ||
date the investigation was commenced, and the former law is | ||
continued in effect for that purpose. | ||
SECTION 21. This Act takes effect September 1, 2013. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 2134 was passed by the House on April | ||
18, 2013, by the following vote: Yeas 140, Nays 3, 2 present, not | ||
voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 2134 was passed by the Senate on May | ||
20, 2013, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: _____________________ | ||
Date | ||
_____________________ | ||
Governor |