Bill Text: TX SB899 | 2015-2016 | 84th Legislature | Enrolled

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Bill Title: Relating to the regulation of money services businesses; affecting the prosecution of a criminal offense.

Sponsorship: Partisan Bill (Republican 2)

Status: (Passed) 2015-05-22 - Effective on 9/1/15 [SB899 Detail]

Download: Texas-2015-SB899-Enrolled.html

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S.B. No. 899

AN ACT
relating to the regulation of money services businesses; affecting
the prosecution of a criminal offense.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.003, Finance Code, is amended to
read as follows:
Sec. 151.003. EXCLUSIONS. The following persons are not
required to be licensed under this chapter:
(1) the United States or an instrumentality of the
United States, including the United States Post Office or a
contractor acting on behalf of the United States Post Office;
(2) a state or an agency, political subdivision, or
other instrumentality of a state;
(3) a federally insured financial institution, as that
term is defined by Section 201.101, that is organized under the laws
of this state, another state, or the United States;
(4) a foreign bank branch or agency in the United
States established under the federal International Banking Act of
1978 (12 U.S.C. Section 3101 et seq.);
(5) a person acting as an agent for an entity excluded
under Subdivision (3) or (4), to the extent of the person's actions
in that capacity, provided that:
(A) the entity is liable for satisfying the money
services obligation owed to the purchaser on the person's receipt
of the purchaser's money; and
(B) the entity and person enter into a written
contract that appoints the person as the entity's agent and the
person acts only within the scope of authority conferred by the
contract;
(6) a person that, on behalf of the United States or a
department, agency, or instrumentality of the United States, or a
state or county, city, or any other governmental agency or
political subdivision of a state, provides electronic funds
transfer services of governmental benefits for a federal, state,
county, or local governmental agency;
(7) a person that acts as an intermediary on behalf of
and at the direction of a license holder in the process by which the
license holder, after receiving money or monetary value from a
purchaser, either directly or through an authorized delegate,
transmits the money or monetary value to the purchaser's designated
recipient, provided that the license holder is liable for
satisfying the obligation owed to the purchaser;
(8) an attorney or title company that in connection
with a real property transaction receives and disburses domestic
currency or issues an escrow or trust fund check only on behalf of a
party to the transaction;
(9) a person engaged in the business of currency
transportation who is both a registered motor carrier under Chapter
643, Transportation Code, and a licensed armored car company or
courier company under Chapter 1702, Occupations Code, provided that
the person:
(A) only transports currency from a person to:
(i) the same person at another location; or
(ii) a financial institution to be
deposited in an account belonging to the same person; and
(B) does not otherwise engage in the money
transmission or currency exchange business without a license issued
under this chapter; and
(10) any other person, transaction, or class of
persons or transactions exempted by commission rule or any other
person or transaction exempted by the commissioner's order on a
finding that the licensing of the person is not necessary to achieve
the purposes of this chapter.
SECTION 2. Sections 151.302(a) and (b), Finance Code, are
amended to read as follows:
(a) A person may not engage in the business of money
transmission in this state or advertise, solicit, or represent
[hold itself out as a person] that the person engages in the
business of money transmission in this state unless the person:
(1) is licensed under this subchapter;
(2) is an authorized delegate of a person licensed
under this subchapter, appointed by the license holder in
accordance with Section 151.402;
(3) is excluded from licensure under Section 151.003;
or
(4) has been granted an exemption under Subsection
(c).
(b) For purposes of this chapter,[:
[(1)] a person engages in the business of money
transmission if the person [conducts money transmission for persons
located in this state and] receives compensation or expects to
receive compensation, directly or indirectly, for conducting money
transmission [the transmissions; and
[(2) a person solicits, advertises, or holds itself
out as a person that engages in the business of money transmission
if the person represents that the person will conduct money
transmission for persons located in this state].
SECTION 3. Section 151.504(b), Finance Code, is amended to
read as follows:
(b) At the time an application for a currency exchange
license is submitted, an applicant must file with the department:
(1) an application fee in the amount established by
commission rule; and
(2) security in the amount required under [of $2,500
that meets the requirements of] Section 151.506.
SECTION 4. Section 151.506, Finance Code, is amended to
read as follows:
Sec. 151.506. SECURITY. (a) An applicant for a currency
exchange license must provide and a currency exchange license
holder must maintain at all times security in the amount applicable
to the applicant or license holder under this section. The security
must satisfy [of $2,500 that satisfies] the requirements of and is
subject to Sections 151.308(c)-(j).
(b) An applicant must provide and a license holder must
maintain security in the amount of $2,500 if the applicant will
conduct or the license holder conducts business with persons
located in this state exclusively at one or more physical locations
through in-person, contemporaneous transactions.
(c) Except as provided by Subsection (d), if Subsection (b)
does not apply to:
(1) the applicant, the applicant must provide security
in the amount that is the greater of:
(A) $2,500; or
(B) an amount equal to one percent of the
applicant's projected total dollar volume of currency exchange
business in this state for the first year of licensure; or
(2) the license holder, the license holder must
maintain security in the amount that is the greater of:
(A) $2,500; or
(B) an amount equal to one percent of the license
holder's total dollar volume of currency exchange business in this
state for the preceding year.
(d) The maximum amount of security that may be required
under Subsection (c) is $1 million.
SECTION 5. Section 151.605(g), Finance Code, is amended to
read as follows:
(g) The following persons are exempt from the requirements
of Subsection (a), but the license holder must notify the
commissioner not later than the 15th day after the date the change
of control becomes effective:
(1) a person that acts as proxy for the sole purpose of
voting at a designated meeting of the security holders or holders of
voting interests of a license holder or controlling person;
(2) a person that acquires control of a license holder
by devise or descent;
(3) [a person that acquires control as a personal
representative, custodian, guardian, conservator, or trustee, or
as an officer appointed by a court or by operation of law;
[(4)] a person exempted in the public interest by rule
of the commission or by order of the commissioner; and
(4) [(5)] a person that has previously complied with
and received approval under this chapter or that was identified as a
person in control in a prior application filed with and approved by
the commissioner.
SECTION 6. Section 151.708(c), Finance Code, is amended to
read as follows:
(c) An offense under this section may be prosecuted in [If
the commissioner has reason to believe that a person has committed
an offense under this section or any other state or federal law, the
commissioner may file a criminal referral with the district
attorney of] Travis County or in [an appropriate prosecuting
attorney of] the county in which the offense is alleged to have been
committed.
SECTION 7. Section 151.301(b)(7), Finance Code, is
repealed.
SECTION 8. Section 151.605, Finance Code, as amended by
this Act, applies only to a person that acquires control of a
license holder under that section as a personal representative,
custodian, guardian, conservator, or trustee or as an officer
appointed by a court or by operation of law on or after the
effective date of this Act. A person that acquired control of a
license holder as a personal representative, custodian, guardian,
conservator, or trustee or as an officer appointed by a court or by
operation of law before the effective date of this Act is governed
by the law in effect on the date the person acquired control, and
the former law is continued in effect for that purpose.
SECTION 9. Section 151.708(c), Finance Code, as amended by
this Act, applies only to an offense committed on or after the
effective date of this Act. An offense committed before the
effective date of this Act is governed by the law in effect when the
offense was committed, and the former law is continued in effect for
that purpose. For purposes of this section, an offense was
committed before the effective date of this Act if any element of
the offense occurred before that date.
SECTION 10. This Act takes effect September 1, 2015.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 899 passed the Senate on
April 9, 2015, by the following vote: Yeas 30, Nays 1.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 899 passed the House on
May 12, 2015, by the following vote: Yeas 128, Nays 16, two
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor