Bill Text: TX SB899 | 2015-2016 | 84th Legislature | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the regulation of money services businesses; affecting the prosecution of a criminal offense.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2015-05-22 - Effective on 9/1/15 [SB899 Detail]
Download: Texas-2015-SB899-Engrossed.html
Bill Title: Relating to the regulation of money services businesses; affecting the prosecution of a criminal offense.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2015-05-22 - Effective on 9/1/15 [SB899 Detail]
Download: Texas-2015-SB899-Engrossed.html
By: Eltife | S.B. No. 899 |
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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 | ||
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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,[ |
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transmission if the person [ |
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receive compensation, directly or indirectly, for conducting money | ||
transmission [ |
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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 [ |
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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 [ |
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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) [ |
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of the commission or by order of the commissioner; and | ||
(4) [ |
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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 [ |
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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. |