H.B. No. 474
1-1 AN ACT
1-2 relating to the regulation of currency exchange and transmission
1-3 businesses.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 3(c), Article 350, Revised Statutes, is
1-6 amended to read as follows:
1-7 (c) A retailer, wholesaler, or service provider who, in the
1-8 ordinary course of business, accepts currency of a country or
1-9 government other than the United States in payment for goods sold
1-10 or services provided is eligible for an exemption from licensing
1-11 under this article. A person requesting an exemption under this
1-12 subsection must annually file an application with the commissioner,
1-13 accompanied by a nonrefundable license exemption application fee in
1-14 an amount to be set by the commissioner to recover the cost of
1-15 administering this subsection. <A person who engages in a currency
1-16 exchange or transmission business only as an incidental part of the
1-17 person's normal business or as an accommodation to clients or
1-18 customers with whom the person transacts business in the normal
1-19 course of business may request from the commissioner an exemption
1-20 from this article.> The commissioner shall <may> grant an
1-21 exemption to a person under this subsection if the commissioner
1-22 determines that the person making the request is eligible under
1-23 this subsection <does not engage in a currency exchange or
1-24 transmission business as a principal component of the person's
2-1 daily business operations. A person who has been granted an
2-2 exemption under this subsection annually shall certify to the
2-3 commissioner that the person is maintaining the exempt status>.
2-4 The commissioner in accordance with the examination provisions of
2-5 this article may examine <or cause to be examined> a person to
2-6 verify the <certification or> exempt status. The retailer,
2-7 wholesaler, or service provider may not be exempted under this
2-8 subsection or an exemption may be suspended or revoked if:
2-9 (1) the value of the goods or services purchased in a
2-10 single transaction exceeds $10,000;
2-11 (2) the change given or made as a result of the
2-12 transaction exceeds $100;
2-13 (3) an attempt is made to structure transactions in a
2-14 way to evade the licensing requirements of this article or to avoid
2-15 using a licensed currency exchange business;
2-16 (4) the retailer, wholesaler, or service provider is
2-17 engaged in the business of cashing checks, drafts, or other
2-18 monetary instruments for a fee or other consideration and is not
2-19 otherwise exempted from licensing under this article; or
2-20 (5) the retailer, wholesaler, or service provider
2-21 would not be eligible for a license under Section 8 of this
2-22 article.
2-23 SECTION 2. Section 10, Article 350, Revised Statutes, is
2-24 amended to read as follows:
2-25 Sec. 10. BOND. (a) A person who is licensed under this
2-26 article shall post a bond with a qualified surety company doing
2-27 business in this state that is acceptable to the commissioner or an
3-1 irrevocable letter of credit issued by a qualified financial
3-2 institution that is acceptable to the commissioner. The bond or
3-3 letter of credit shall be <for each license the person holds> in an
3-4 amount determined by the commissioner. The commissioner shall
3-5 determine the amount of the bond or letter of credit based on the
3-6 dollar volume of the licensee's currency exchange or transmission
3-7 business and the number of locations from which the person
3-8 operates, but the bond or letter of credit must be at least
3-9 $25,000.
3-10 (b) A <The> bond or letter of credit posted by a licensee
3-11 must be conditioned that as long as the person holds the license
3-12 the person will not violate this article or a rule adopted under
3-13 this article. The beneficiary of the bond or letter of credit must
3-14 be the Banking Department.
3-15 SECTION 3. Section 13(a), Article 350, Revised Statutes, is
3-16 amended to read as follows:
3-17 (a) The commissioner shall cooperate with federal and state
3-18 agencies in discharging the commissioner's responsibilities
3-19 relating to the regulation of currency exchange or transmission
3-20 businesses. The commissioner may:
3-21 (1) arrange for the exchange of information among
3-22 government officials concerning the regulation of a currency
3-23 exchange or transmission business; <and>
3-24 (2) cooperate in and coordinate training programs
3-25 concerning the regulation of currency exchange or transmission
3-26 businesses; and
3-27 (3) assist state and federal agencies in their
4-1 enforcement and investigatory activities and supply those agencies
4-2 with documentation and information.
4-3 SECTION 4. Section 16, Article 350, Revised Statutes, is
4-4 amended to read as follows:
4-5 Sec. 16. INJUNCTION. The prosecuting attorney of the county
4-6 in which a violation is alleged to have occurred, the attorney
4-7 general, or the district attorney of Travis County may seek an
4-8 injunction prohibiting the further operation of a currency exchange
4-9 or transmission business if an investigation discloses that a
4-10 person is operating a currency exchange or transmission business
4-11 without a license or in violation of this article or rules adopted
4-12 under this article.
4-13 SECTION 5. Section 20, Article 350, Revised Statutes, is
4-14 amended to read as follows:
4-15 Sec. 20. Confidential Information. All information obtained
4-16 by the Banking Department from a licensee relating to the financial
4-17 condition of a licensee, whether obtained through examination or
4-18 otherwise, except published statements, and all files and records
4-19 of the Banking Department relating to a licensee are confidential
4-20 and may not be disclosed by the commissioner or an officer or
4-21 employee of the Banking Department. The commissioner may release
4-22 information if:
4-23 (1) the commissioner finds that immediate and
4-24 irreparable harm is threatened to the licensee's customers or
4-25 potential customers or the general public;
4-26 (2) the licensee consents before the release;
4-27 (3) the commissioner finds that release of the
5-1 information is required in connection with an administrative <a>
5-2 hearing under this article <before the Finance Commission>, in
5-3 which event information may be released to the parties of that
5-4 hearing <distributed to the Finance Commission>; or
5-5 (4) the commissioner finds that the release is
5-6 reasonably necessary for the protection of the public and in the
5-7 interest of justice, in which event information may be distributed
5-8 to representatives of an agency, department, or instrumentality of
5-9 this state, any other state, or the federal government<, provided
5-10 the representatives state in writing under oath that they will
5-11 maintain the confidentiality of the information>.
5-12 SECTION 6. Section 8(e), Article 350, Revised Statutes, is
5-13 repealed.
5-14 SECTION 7. Section 3, Article 350, Revised Statutes, is
5-15 amended by adding Subsection (e) to read as follows:
5-16 (e) An attorney or title company receiving and disbursing
5-17 only domestic currency or funds in connection with a real estate
5-18 transaction on behalf of the principals to the transaction is
5-19 exempt from the requirements of this article.
5-20 SECTION 8. The importance of this legislation and the
5-21 crowded condition of the calendars in both houses create an
5-22 emergency and an imperative public necessity that the
5-23 constitutional rule requiring bills to be read on three several
5-24 days in each house be suspended, and this rule is hereby suspended,
5-25 and that this Act take effect and be in force from and after its
5-26 passage, and it is so enacted.