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A BILL TO BE ENTITLED
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AN ACT
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relating to prohibiting the imposition of a monetary fine or |
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penalty for a violation of a money services business's terms of |
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service agreement; providing a civil penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. (a) This section takes effect only if the Act of |
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the 88th Legislature, Regular Session, 2023, relating to the |
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regulation of money services businesses, does not become law. |
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(b) Subchapter E, Chapter 151, Finance Code, is amended by |
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adding Section 151.406 to read as follows: |
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Sec. 151.406. PROHIBITION ON IMPOSITION OF FINE OR PENALTY |
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FOR TERMS OF SERVICE VIOLATION. (a) A money transmission license |
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holder may not include in the license holder's terms of service |
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agreement a provision allowing or providing for a monetary fine or |
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penalty for violating any provision of the terms of service |
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agreement. |
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(b) This section may not be construed to prevent a money |
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transmission license holder from closing a customer account as a |
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result of a customer's violation of the license holder's terms of |
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service agreement. |
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(c) In addition to any other relief provided for a violation |
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of this chapter, a money transmission license holder that violates |
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this section is liable to this state for a civil penalty in an |
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amount equal to three times the amount of the fine or penalty |
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imposed by the license holder. |
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(d) The attorney general may bring an action in the name of |
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the state to recover the civil penalty under Subsection (c). The |
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attorney general may recover attorney's fees and costs incurred in |
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bringing an action under Subsection (c). |
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SECTION 2. (a) This section takes effect only if the Act of |
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the 88th Legislature, Regular Session, 2023, relating to the |
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|
regulation of money services businesses, becomes law. |
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(b) Subchapter G, Chapter 152, Finance Code, is amended by |
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adding Section 152.305 to read as follows: |
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Sec. 152.305. PROHIBITION ON IMPOSITION OF FINE OR PENALTY |
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FOR TERMS OF SERVICE VIOLATION. (a) A money transmission |
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licensee may not include in the licensee's terms of service |
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agreement a provision allowing or providing for a monetary fine or |
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|
penalty for violating any provision of the terms of service |
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agreement. |
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(b) This section may not be construed to prevent a money |
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transmission licensee from closing a customer account as a result |
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of a customer's violation of the licensee's terms of service |
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agreement. |
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(c) In addition to any other relief provided for a violation |
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of this chapter, a money transmission licensee that violates this |
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section is liable to this state for a civil penalty in an amount |
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equal to three times the amount of the fine or penalty imposed by |
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the licensee. |
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(d) The attorney general may bring an action in the name of |
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the state to recover the civil penalty under Subsection (c). The |
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attorney general may recover attorney's fees and costs incurred in |
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bringing an action under Subsection (c). |
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SECTION 3. This Act applies only to a terms of service |
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agreement entered into after the effective date of this Act. A |
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terms of service agreement entered into before the effective date |
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of this Act is governed by the law as it existed immediately before |
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the effective date of this Act, and the former law is continued in |
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effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2023. |