1-1 By: Cuellar of Webb (Senate Sponsor - Montford) H.B. No. 474
1-2 (In the Senate - Received from the House March 30, 1993;
1-3 March 31, 1993, read first time and referred to Committee on
1-4 Economic Development; May 6, 1993, reported adversely, with
1-5 favorable Committee Substitute by the following vote: Yeas 9, Nays
1-6 0; May 6, 1993, sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Parker x
1-10 Lucio x
1-11 Ellis x
1-12 Haley x
1-13 Harris of Dallas x
1-14 Harris of Tarrant x
1-15 Leedom x
1-16 Madla x
1-17 Rosson x
1-18 Shapiro x
1-19 Wentworth x
1-20 COMMITTEE SUBSTITUTE FOR H.B. No. 474 By: Lucio
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to the regulation of currency exchange and transmission
1-24 businesses.
1-25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-26 SECTION 1. Section 3(c), Article 350, Revised Statutes, is
1-27 amended to read as follows:
1-28 (c) A retailer or service provider who, in the ordinary
1-29 course of business, accepts currency of a country or government
1-30 other than the United States in payment for goods sold or services
1-31 provided is eligible for an exemption from licensing under this
1-32 article. A person requesting an exemption under this subsection
1-33 must annually file an application with the commissioner,
1-34 accompanied by a nonrefundable license exemption application fee in
1-35 an amount to be set by the commissioner to recover the cost of
1-36 administering this subsection. <A person who engages in a currency
1-37 exchange or transmission business only as an incidental part of the
1-38 person's normal business or as an accommodation to clients or
1-39 customers with whom the person transacts business in the normal
1-40 course of business may request from the commissioner an exemption
1-41 from this article.> The commissioner shall <may> grant an
1-42 exemption to a person under this subsection if the commissioner
1-43 determines that the person making the request is eligible under
1-44 this subsection <does not engage in a currency exchange or
1-45 transmission business as a principal component of the person's
1-46 daily business operations. A person who has been granted an
1-47 exemption under this subsection annually shall certify to the
1-48 commissioner that the person is maintaining the exempt status>.
1-49 The commissioner in accordance with the examination provisions of
1-50 this article may examine <or cause to be examined> a person to
1-51 verify the <certification or> exempt status. The retailer or
1-52 service provider may not be exempted under this subsection or an
1-53 exemption may be suspended or revoked if:
1-54 (1) the value of the goods or services purchased in a
1-55 single transaction exceeds $1,000;
1-56 (2) the change given or made as a result of the
1-57 transaction exceeds $100;
1-58 (3) an attempt is made to structure transactions in a
1-59 way to evade the licensing requirements of this article or to avoid
1-60 using a licensed currency exchange business;
1-61 (4) the retailer or service provider is engaged in the
1-62 business of cashing checks, drafts, or other monetary instruments
1-63 for a fee or other consideration and is not otherwise exempted from
1-64 licensing under this article; or
1-65 (5) the retailer or service provider would not be
1-66 eligible for a license under Section 8 of this article.
1-67 SECTION 2. Section 10, Article 350, Revised Statutes, is
1-68 amended to read as follows:
2-1 Sec. 10. BOND. (a) A person who is licensed under this
2-2 article shall post a bond with a qualified surety company doing
2-3 business in this state that is acceptable to the commissioner or an
2-4 irrevocable letter of credit issued by a qualified financial
2-5 institution that is acceptable to the commissioner. The bond or
2-6 letter of credit shall be <for each license the person holds> in an
2-7 amount determined by the commissioner. The commissioner shall
2-8 determine the amount of the bond or letter of credit based on the
2-9 dollar volume of the licensee's currency exchange or transmission
2-10 business and the number of locations from which the person
2-11 operates, but the bond or letter of credit must be at least
2-12 $25,000.
2-13 (b) A <The> bond or letter of credit posted by a licensee
2-14 must be conditioned that as long as the person holds the license
2-15 the person will not violate this article or a rule adopted under
2-16 this article. The beneficiary of the bond or letter of credit must
2-17 be the Banking Department.
2-18 SECTION 3. Section 13(a), Article 350, Revised Statutes, is
2-19 amended to read as follows:
2-20 (a) The commissioner shall cooperate with federal and state
2-21 agencies in discharging the commissioner's responsibilities
2-22 relating to the regulation of currency exchange or transmission
2-23 businesses. The commissioner may:
2-24 (1) arrange for the exchange of information among
2-25 government officials concerning the regulation of a currency
2-26 exchange or transmission business; <and>
2-27 (2) cooperate in and coordinate training programs
2-28 concerning the regulation of currency exchange or transmission
2-29 businesses; and
2-30 (3) assist state and federal agencies in their
2-31 enforcement and investigatory activities and supply those agencies
2-32 with documentation and information.
2-33 SECTION 4. Section 16, Article 350, Revised Statutes, is
2-34 amended to read as follows:
2-35 Sec. 16. INJUNCTION. The prosecuting attorney of the county
2-36 in which a violation is alleged to have occurred, the attorney
2-37 general, or the district attorney of Travis County may seek an
2-38 injunction prohibiting the further operation of a currency exchange
2-39 or transmission business if an investigation discloses that a
2-40 person is operating a currency exchange or transmission business
2-41 without a license or in violation of this article or rules adopted
2-42 under this article.
2-43 SECTION 5. Section 20, Article 350, Revised Statutes, is
2-44 amended to read as follows:
2-45 Sec. 20. Confidential Information. All information obtained
2-46 by the Banking Department from a licensee relating to the financial
2-47 condition of a licensee, whether obtained through examination or
2-48 otherwise, except published statements, and all files and records
2-49 of the Banking Department relating to a licensee are confidential
2-50 and may not be disclosed by the commissioner or an officer or
2-51 employee of the Banking Department. The commissioner may release
2-52 information if:
2-53 (1) the commissioner finds that immediate and
2-54 irreparable harm is threatened to the licensee's customers or
2-55 potential customers or the general public;
2-56 (2) the licensee consents before the release;
2-57 (3) the commissioner finds that release of the
2-58 information is required in connection with an administrative <a>
2-59 hearing under this article <before the Finance Commission>, in
2-60 which event information may be released to the parties of that
2-61 hearing <distributed to the Finance Commission>; or
2-62 (4) the commissioner finds that the release is
2-63 reasonably necessary for the protection of the public and in the
2-64 interest of justice, in which event information may be distributed
2-65 to representatives of an agency, department, or instrumentality of
2-66 this state, any other state, or the federal government<, provided
2-67 the representatives state in writing under oath that they will
2-68 maintain the confidentiality of the information>.
2-69 SECTION 6. Section 8(e), Article 350, Revised Statutes, is
2-70 repealed.
3-1 SECTION 7. Section 3, Article 350, Revised Statutes, is
3-2 amended by adding Subsection (e) to read as follows:
3-3 (e) An attorney or title company receiving and disbursing
3-4 only domestic currency or funds in connection with a real estate
3-5 transaction on behalf of the principals to the transaction is
3-6 exempt from the requirements of this article.
3-7 SECTION 8. The importance of this legislation and the
3-8 crowded condition of the calendars in both houses create an
3-9 emergency and an imperative public necessity that the
3-10 constitutional rule requiring bills to be read on three several
3-11 days in each house be suspended, and this rule is hereby suspended,
3-12 and that this Act take effect and be in force from and after its
3-13 passage, and it is so enacted.
3-14 * * * * *
3-15 Austin,
3-16 Texas
3-17 May 6, 1993
3-18 Hon. Bob Bullock
3-19 President of the Senate
3-20 Sir:
3-21 We, your Committee on Economic Development to which was referred
3-22 H.B. No. 474, have had the same under consideration, and I am
3-23 instructed to report it back to the Senate with the recommendation
3-24 that it do not pass, but that the Committee Substitute adopted in
3-25 lieu thereof do pass and be printed.
3-26 Parker,
3-27 Chairman
3-28 * * * * *
3-29 WITNESSES
3-30 FOR AGAINST ON
3-31 ___________________________________________________________________
3-32 Name: Catherine A. Ghiglieri x
3-33 Representing: Texas Dept. of Banking
3-34 City: Austin
3-35 -------------------------------------------------------------------
3-36 Name: John R. Vasquez x
3-37 Representing: Euromex Casa de Cambio
3-38 City: Austin
3-39 -------------------------------------------------------------------
3-40 Name: Carlos Contreras x
3-41 Representing: Valuta Corporation
3-42 City: Austin
3-43 -------------------------------------------------------------------
3-44 Name: Brian A. Herrick x
3-45 Representing: Texas Dept. of Banking
3-46 City: Austin
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