By D. Smith of Harris                                 H.B. No. 1888
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the regulation of the sale of checks.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 2, The Sale of Checks Act (Article 489d,
    1-5  Vernon's Texas Civil Statutes), is amended by amending Subsections
    1-6  (c) and (g) and adding Subsection (i) to read as follows:
    1-7        (c)  "Check" means any check, draft, money order, personal
    1-8  money order, or other instrument or means for the transmission or
    1-9  payment of money, including wire, electronic, or other means used
   1-10  to transmit money for a fee or other consideration.
   1-11        (g)  "Commissioner" means the Commissioner of the <State>
   1-12  Banking Department of Texas.
   1-13        (i)  "Commission" means The Finance Commission of Texas.
   1-14        SECTION 2.  Section 4, The Sale of Checks Act (Article 489d,
   1-15  Vernon's Texas Civil Statutes), is amended to read as follows:
   1-16        Sec. 4.  Exemption from Licensing.  (a)  No license to sell
   1-17  checks as aforesaid shall be required hereunder of any of the
   1-18  following:
   1-19              (1) <(a)>  Banks, credit unions, building and loan
   1-20  associations, <and> savings and loan associations, and savings
   1-21  banks whether organized under the laws of this state, another
   1-22  state, or <of> the United States; provided, however, that they do
   1-23  not issue or sell checks, other than traveler's checks, off
   1-24  premises and that they do not issue or sell checks, other than
    2-1  traveler's checks, through agents who are not directly or
    2-2  indirectly owned by them unless the agent is a federally insured
    2-3  bank, credit union, savings and loan association, or savings bank;
    2-4              (2) <(b)  Incorporated telegraph companies insofar as
    2-5  they receive money at any of their respective offices or agencies
    2-6  for immediate transmission by telegraph;>
    2-7              <(c)>  Agents of a licensee, as provided in Section 11;
    2-8  <or>
    2-9              (3)  Escrow or trust fund checks issued by a title
   2-10  company or attorney; or
   2-11              (4) <(d)>  The United States or any department or
   2-12  agency of the United States.
   2-13        (b)  The Commissioner by rule may exempt a person from this
   2-14  Act or reduce the requirements of Sections 7, 8, 9A, 9B, and 9C of
   2-15  this Act if:
   2-16              (1)  the sale of checks is ancillary to the person's
   2-17  business, is limited to commercial contracts in interstate
   2-18  commerce, and the person does not engage in the business of selling
   2-19  checks to the public; and
   2-20              (2)  the Commissioner determines that the exemption or
   2-21  reduced requirement is in the public interest.
   2-22        SECTION 3.  Section 5, The Sale of Checks Act (Article 489d,
   2-23  Vernon's Texas Civil Statutes), is amended to read as follows:
   2-24        Sec. 5.  Qualifications.  (a)  <To qualify for a license
   2-25  hereunder an applicant shall meet the following requirements:>
   2-26              <(a)  The applicant shall have a net worth of at least
   2-27  Five Hundred Thousand Dollars ($500,000), computed according to
    3-1  generally accepted accounting principles.>
    3-2              <(b)>  The financial responsibility, financial
    3-3  condition, and business experience, and character and general
    3-4  fitness of an <the> applicant for a license shall be such as
    3-5  reasonably to warrant the belief that issuance of a license is in
    3-6  the public interest <applicant's business will be conducted
    3-7  honestly, carefully and efficiently>.  To the extent deemed
    3-8  advisable by the Commissioner, the Commissioner may investigate and
    3-9  consider the qualifications of officers and directors of an
   3-10  applicant in determining whether this qualification has been met.
   3-11        (b)  To qualify for a license under this Act an applicant:
   3-12              (1)  must have a net worth of at least Five Hundred
   3-13  Thousand Dollars ($500,000), computed according to generally
   3-14  accepted accounting principles;
   3-15              (2)  must be in a financial condition that will enable
   3-16  the applicant to safely and soundly engage in the business of
   3-17  selling checks;
   3-18              (3)  may not have been convicted of a felony or a crime
   3-19  involving moral turpitude that is reasonably related to an
   3-20  applicant's fitness to hold a license under this Act, regardless of
   3-21  whether the punishment received was a suspended sentence,
   3-22  probation, or nonadjudicated conviction, if the applicant is an
   3-23  individual;
   3-24              (4)  must provide a truthful and complete response to
   3-25  requests for information contained in an application for a license;
   3-26              (5)  may not be indebted to the state for a fee or
   3-27  penalty imposed under this Act or a rule of the commission;
    4-1              (6)  must have good moral character and a reputation as
    4-2  a peaceable, law-abiding citizen in the community where the
    4-3  applicant resides, if the applicant is an individual; and
    4-4              (7)  may not be engaged in an activity or practice that
    4-5  the commissioner finds adversely affects the financial safety and
    4-6  soundness of the applicant.
    4-7        (c)  The commission may adopt rules relating to an
    4-8  application for a license.
    4-9        SECTION 4.  Section 7, The Sale of Checks Act (Article 489d,
   4-10  Vernon's Texas Civil Statutes), is amended to read as follows:
   4-11        Sec. 7.  Accompanying Fee, Statements and Bond.  Each
   4-12  application for a license shall be accompanied by:
   4-13        (a)  An investigation fee in an amount set by the
   4-14  Commissioner that is sufficient to administer this Act <of Five
   4-15  Hundred Dollars ($500)> which shall not be subject to refund but
   4-16  which, if the license be granted, shall constitute the license fee
   4-17  for the first license year or part thereof;
   4-18        (b)  Audited financial statements reasonably satisfactory to
   4-19  the Commissioner;
   4-20        (c)  A surety bond issued by a bonding company or insurance
   4-21  company authorized to do business in this state, in the principal
   4-22  sum of One Hundred Thousand Dollars ($100,000), and, except as
   4-23  provided by this subsection, an additional principal sum of Fifty
   4-24  Thousand Dollars ($50,000) for each location, in excess of one but
   4-25  for not more than the first nine locations, at which the applicant
   4-26  proposes to sell checks in this state.  The maximum amount of a
   4-27  surety bond required under this subsection is Five Hundred Thousand
    5-1  Dollars ($500,000), except the Commissioner, subject to Section 15
    5-2  of this Act, may require a licensee to provide an additional amount
    5-3  over the Five Hundred Thousand Dollars ($500,000) up to a total
    5-4  maximum amount of One Million Dollars ($1,000,000), based on the
    5-5  licensee's financial condition, considered in relation to the
    5-6  dollar volume of the licensee's outstanding checks.  Each<, but in
    5-7  no event shall the bond be required to be in excess of Five Hundred
    5-8  Thousand Dollars ($500,000).  If the bond accompanying the
    5-9  application be in a principal sum of less than Five Hundred
   5-10  Thousand Dollars ($500,000), the> application shall also be
   5-11  accompanied by a list of the locations at which the business is to
   5-12  be conducted.  The bond shall be in form satisfactory to the
   5-13  Commissioner and represents money held in trust for the benefit of
   5-14  check purchasers.  The bond shall run to the state for the benefit
   5-15  of any claimants against the applicant or his agents to secure the
   5-16  faithful performance of the obligations of the applicant and his
   5-17  agents with respect to the receipt, handling, transmission and
   5-18  payment of money in connection with the sale of checks.  The
   5-19  aggregate liability of the surety in no event shall exceed the
   5-20  principal sum of the bond.  If a licensee is in bankruptcy or
   5-21  receivership, claimants against the licensee or the licensee's
   5-22  agents may bring suit directly on the bond for an amount equal to
   5-23  the amount of an unpaid judgment against the licensee or may assert
   5-24  a claim against the bond.  The <Such claimants against the
   5-25  applicant or his agents may themselves bring suit directly on the
   5-26  bond, or the> Attorney General may bring suit in a district court
   5-27  in Travis County on <thereon in> behalf of such claimants, either
    6-1  in one action or successive actions; or
    6-2        (d)  In lieu of such corporate surety bond or bonds, or of
    6-3  any portion of the principal thereof as required by this Section,
    6-4  the applicant may deposit with the Commissioner, or with such banks
    6-5  or trust companies or national banks in this state as such
    6-6  applicant may designate and the Commissioner may approve, cash,
    6-7  certificates of deposit, interest-bearing stocks and bonds, notes,
    6-8  debentures or other obligations of the United States or any agency
    6-9  or instrumentality thereof, or guaranteed by the United States, or
   6-10  of this state, or of a city, county, town, village, school district
   6-11  or instrumentality of this state, or guaranteed by this state, or
   6-12  other similar security devices acceptable to the Commissioner,  to
   6-13  an aggregate amount, based upon principal amount or market value,
   6-14  whichever is lower, of not less than the amount of the required
   6-15  corporate surety bond or portion thereof.  A deposit made with the
   6-16  Commissioner under this subsection shall be placed with the Texas
   6-17  Treasury Safekeeping Trust Company and represents money held in
   6-18  trust for the benefit of check purchasers.  The deposit shall be
   6-19  <The securities shall be deposited as aforesaid and> held to secure
   6-20  the same obligations as would the surety bond, but the licensee
   6-21  <depositor> shall be entitled to receive all interest and dividends
   6-22  thereon, shall have the right, with the approval of the
   6-23  Commissioner, to substitute other securities for those deposited,
   6-24  and shall be required so to do on written order of the Commissioner
   6-25  made for good cause shown.
   6-26        SECTION 5.  Section 9, The Sale of Checks Act (Article 489d,
   6-27  Vernon's Texas Civil Statutes), is amended to read as follows:
    7-1        Sec. 9.  Obligations of Licensee.  Each person holding a
    7-2  license under this Act shall at all times when the license is in
    7-3  effect:
    7-4              (a)  Maintain the bond or securities in the amount
    7-5  prescribed by Section 7 and if<;>
    7-6              <(b)  If> the licensee does not have on file or deposit
    7-7  a bond or securities, as aforesaid, in the undiminished principal
    7-8  sum of at least Five Hundred Thousand Dollars ($500,000), file
    7-9  quarterly reports with the Commissioner setting forth the locations
   7-10  at which he sells checks in this state not later than the 45th day
   7-11  after the date of the last day of each quarter of the licensee's
   7-12  fiscal year <as of January 1, April 1, July 1, and October 1 in
   7-13  each year, the report for each such date being due on or before the
   7-14  15th day thereafter>;
   7-15                    (1)  Within ten (10) days following the filing of
   7-16  such a report, the principal sum of the bond or securities shall be
   7-17  increased to reflect any increase in the number of locations, and
   7-18  may be decreased to reflect any decrease in the number of
   7-19  locations;
   7-20                    (2)  If the Commissioner shall at any time
   7-21  reasonably determine that the bond or securities aforesaid are
   7-22  insecure, deficient in amount, or exhausted in whole or part, the
   7-23  Commissioner <he> may by written order require the filing of a new
   7-24  or supplemental bond or the deposit of new or additional securities
   7-25  in order to secure compliance with this Act, such order to be
   7-26  complied with within thirty (30) days following service thereof
   7-27  upon the licensee;
    8-1              (b) <(c)>  Maintain a net worth equal to or greater
    8-2  than the amount then currently prescribed by Section 5 for license
    8-3  applicants; <and>
    8-4              (c)  If the licensee has a net worth of less than Five
    8-5  Million Dollars ($5 million), as shown by audited financial
    8-6  statements reasonably satisfactory to the Commissioner, have
    8-7  <(d)  Have> on hand permissible investments in an amount equal to
    8-8  the aggregate face amount of all outstanding checks sold in the
    8-9  United States<, except traveler's checks,> for which the licensee
   8-10  is liable for payment, less the amount of a surety bond maintained
   8-11  under Section 7(c) of this Act; <however, this subsection does not
   8-12  apply to any licensee with a net worth of not less than Five
   8-13  Million Dollars ($5 million) as shown by audited financial
   8-14  statements reasonably satisfactory to the Commissioner; statements
   8-15  filed under Section 9B of this Act may be used to satisfy this
   8-16  requirement> and
   8-17              (d)  If the licensee has a net worth of Five Million
   8-18  Dollars ($5 million) or more, as shown by audited financial
   8-19  statements reasonably satisfactory to the Commissioner, maintain a
   8-20  surety bond or have on hand permissible investments in an amount
   8-21  equal to at least 50 percent of the aggregate face amount of all
   8-22  outstanding checks sold in the United States for which the licensee
   8-23  is liable for payment, less the amount of a surety bond maintained
   8-24  under Section 7(c) of this Act; if the licensee maintains a surety
   8-25  bond under this subsection, the surety bond must be:
   8-26                    (1)  in addition to any other bond or security
   8-27  required by this Act;
    9-1                    (2)  issued by a bonding company or insurance
    9-2  company authorized to do business in this state; and
    9-3                    (3)  payable to the state on behalf of any
    9-4  claimants against the licensee or the licensee's agent to secure
    9-5  the faithful performance of the obligations of the licensee or
    9-6  agent in the receipt, handling, transmission, and payment of money
    9-7  in connection with the sale of checks.
    9-8        SECTION 6.  Section 9B(a), The Sale of Checks Act (Article
    9-9  489d, Vernon's Texas Civil Statutes), is amended to read as
   9-10  follows:
   9-11        (a)  Each year, on a quarterly basis not later than the 45th
   9-12  day after the date of the last day of each quarter of the
   9-13  licensee's fiscal year <May 15, August 15, November 15, and
   9-14  February 15>, each licensee shall file with the Commissioner an
   9-15  unconsolidated financial statement as of the last day of the
   9-16  preceding quarter, including balance sheet, and required reports
   9-17  regarding maintaining permissible investments pursuant to Section 9
   9-18  for the preceding <calendar> quarter submitted on forms furnished
   9-19  by the Commissioner.  In addition, each licensee is <Each year at
   9-20  least one of these unconsolidated financial statements must have
   9-21  been audited before filing.  Licensees who maintain a corporate
   9-22  surety bond or securities, as described by Section 7(c), in a
   9-23  principal sum of at least Five Hundred Thousand Dollars ($500,000)
   9-24  are> required<, however, only> to file an <the> annual audited
   9-25  unconsolidated financial statement not later than the 120th day
   9-26  after the date of the last day of the licensee's fiscal year.
   9-27        SECTION 7.  Section 9C, The Sale of Checks Act (Article 489d,
   10-1  Vernon's Texas Civil Statutes), is amended to read as follows:
   10-2        Sec. 9C.  Trust Imposed on Sales Proceeds.  Licensees and
   10-3  agents <Agents> of licensees shall hold in trust from the moment of
   10-4  receipt the proceeds of a sale or delivery of the licensee's
   10-5  checks.  An agent of a licensee may not commingle the proceeds with
   10-6  his own property or funds, except to use the funds in the ordinary
   10-7  course of its business for the purpose of making change or
   10-8  otherwise, if the proceeds are accounted for at the end of each
   10-9  business day.  If any licensee or agent of a licensee commingles
  10-10  any proceeds received from the sale of checks <issued by the
  10-11  licensee> with any other funds or property owned or controlled by
  10-12  the licensee or agent, all commingled proceeds and other property
  10-13  shall be impressed with a trust in favor of the holders of the
  10-14  checks  <licensee> in an amount equal to the amount of the proceeds
  10-15  <due the licensee> from the sale of checks less the amount of fees
  10-16  paid for <due the agent from> the sale of checks.  In the event
  10-17  that a licensee's license is revoked by the Commissioner pursuant
  10-18  to Section 14, all sales proceeds then held in trust by the
  10-19  licensee and its agents <of that licensee> shall be deemed to have
  10-20  been assigned to the Commissioner for the benefit of holders of the
  10-21  checks.
  10-22        SECTION 8.  The Sale of Checks Act (Article 489d, Vernon's
  10-23  Texas Civil Statutes) is amended by adding Sections 9D and 9E to
  10-24  read as follows:
  10-25        Sec. 9D.  MANDATORY REMITTANCE BY AGENT.  An agent of a
  10-26  licensee shall remit to the licensee all funds due from the sale of
  10-27  a check within:
   11-1              (1)  10 business days after the date of the sale,
   11-2  unless otherwise ordered by the Commissioner, or a shorter period
   11-3  as the licensee may require; or
   11-4              (2)  a period exceeding 10 business days after the date
   11-5  of the sale if the agent has previously deposited with, and during
   11-6  the period maintains on deposit with, an office of a federally
   11-7  insured bank, savings and loan association, or savings bank located
   11-8  in the United States in an account that is in the sole and
   11-9  exclusive name of the licensee an amount that, for each day by
  11-10  which the period exceeds 10 business days, is not less than the
  11-11  aggregate face amount of checks issued by the licensee that the
  11-12  agent usually sells daily.
  11-13        Sec. 9E.  ADMINISTRATION; RULES.  The Banking Department of
  11-14  Texas shall administer this Act.  The commission may adopt rules
  11-15  necessary for the enforcement and orderly administration of this
  11-16  Act.
  11-17        SECTION 9.  Section 13, The Sale of Checks Act (Article 489d,
  11-18  Vernon's Texas Civil Statutes), is amended to read as follows:
  11-19        Sec. 13.  DISCLOSURE OF RESPONSIBILITY.  Every check sold by
  11-20  a licensee, directly or through an agent, shall bear the name and
  11-21  mailing address or telephone number of the licensee clearly
  11-22  imprinted thereon or be accompanied by a written notice delivered
  11-23  to the purchaser at the time of sale containing that information.
  11-24        SECTION 10.  Section 15, The Sale of Checks Act (Article
  11-25  489d, Vernon's Texas Civil Statutes), is amended to read as
  11-26  follows:
  11-27        Sec. 15.  HEARINGS.  No license shall be denied or revoked
   12-1  except after a hearing thereon.  The Commissioner shall give the
   12-2  applicant or licensee at least twenty (20) days written notice of
   12-3  the time and place of such hearing by registered or certified mail
   12-4  addressed to the principal place of business of such applicant or
   12-5  licensee.  Any order of the Commissioner denying or revoking such
   12-6  license shall state the grounds upon which it is based and shall
   12-7  not be effective until twenty (20) days after written notice
   12-8  thereof has been sent by registered or certified mail to the
   12-9  applicant or licensee at such principal place of business, unless
  12-10  the Commissioner finds that an imminent peril to public health,
  12-11  safety, or welfare exists, in which event the Commissioner may make
  12-12  the order effective immediately.  A licensee may seek court review
  12-13  of the Commissioner's findings and order under the Administrative
  12-14  Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
  12-15  Civil Statutes).
  12-16        SECTION 11.  The Sale of Checks Act (Article 489d, Vernon's
  12-17  Texas Civil Statutes) is amended by adding Section 15A to read as
  12-18  follows:
  12-19        Sec. 15A.  CEASE AND DESIST ORDERS.  (a)  The Commissioner
  12-20  may issue an order to cease and desist from certain violations and
  12-21  practices if the Commissioner determines that a licensee or a
  12-22  person acting on behalf of the licensee has:
  12-23              (1)  violated this Act or a rule adopted under this Act
  12-24  or has violated any other law applicable to the sale of checks or a
  12-25  rule adopted under the other law;
  12-26              (2)  committed a breach of trust or of a fiduciary
  12-27  duty;
   13-1              (3)  committed a fraudulent act;
   13-2              (4)  refused to submit to an examination by the
   13-3  Commissioner;
   13-4              (5)  conducted the licensee's business in an unsafe or
   13-5  unauthorized manner; or
   13-6              (6)  violated a condition of the licensee's license or
   13-7  an agreement between the licensee and the Commissioner.
   13-8        (b)  A copy of the order must be served on the licensee and
   13-9  any other person named in the order.  An order takes effect on the
  13-10  date specified in the order but not before the 10th day after the
  13-11  date of its receipt by the licensee or other person named in the
  13-12  order unless the Commissioner finds that immediate and irreparable
  13-13  harm is threatened to the licensee, purchasers or potential
  13-14  purchasers of checks, or the general public.  The licensee shall
  13-15  certify to the Commissioner in writing that each person named in
  13-16  the order and, if the licensee is a corporation, each member of the
  13-17  licensee's board of directors has read and understood the order.
  13-18        (c)  A licensee or other person named in the order may appeal
  13-19  the Commissioner's order to the commission by filing a notice of
  13-20  appeal with the commission not later than the 10th day after the
  13-21  date of receipt of notice of the order.
  13-22        (d)  On receipt of a timely notice of appeal, the commission
  13-23  shall set a time and place for hearing the appeal of the order and
  13-24  give reasonable notice of the hearing to the party filing the
  13-25  appeal.  Unless otherwise provided by this Act, the hearing before
  13-26  the commission shall be conducted in accordance with the
  13-27  Administrative Procedure and Texas Register Act (Article 6252-13a,
   14-1  Vernon's Texas Civil Statutes).  If the commission finds that a
   14-2  party filing an appeal has committed one or more of the violations
   14-3  or practices charged by the Commissioner and that the order is
   14-4  necessary or in the best interests of purchasers of checks, the
   14-5  commission shall affirm the order.  If the commission finds
   14-6  otherwise, the commission shall set aside the order.  The licensee
   14-7  or other person named in the order may appeal the decision of the
   14-8  commission to a district court in Travis County in accordance with
   14-9  the Administrative Procedure and Texas Register Act (Article
  14-10  6252-13a, Vernon's Texas Civil Statutes).
  14-11        (e)  If a licensee or other person named in an order does not
  14-12  comply with a final order, the Attorney General, if requested by
  14-13  the Commissioner, may bring suit in a district court in Travis
  14-14  County against the licensee or other person to enjoin violation of
  14-15  the order.
  14-16        (f)  Nothing in this section diminishes the regulatory or
  14-17  enforcement powers of the Commissioner or the commission under
  14-18  other provisions of this Act or other applicable law.  The
  14-19  Commissioner is not required to proceed under this section before
  14-20  taking regulatory action under Section 14 or 16 of this Act or
  14-21  under any other applicable law.
  14-22        SECTION 12.  Section 16(c), The Sale of Checks Act (Article
  14-23  489d, Vernon's Texas Civil Statutes), is amended to read as
  14-24  follows:
  14-25        (c)  If, after notice and a hearing, the Commissioner finds
  14-26  that a person has violated this Act, <or> a rule adopted under this
  14-27  Act, or an order of the Commissioner issued under this Act, the
   15-1  Commissioner may order the person to pay to the Commissioner a
   15-2  civil penalty in the amount that the Commissioner specifies, except
   15-3  that the amount of the civil penalty may not exceed One Thousand
   15-4  Dollars ($1,000) for each violation or, in the case of a continuing
   15-5  violation, One Thousand Dollars ($1,000) for each day that the
   15-6  violation continues.
   15-7        SECTION 13.  The Sale of Checks Act (Article 489d, Vernon's
   15-8  Texas Civil Statutes) is amended by adding Section 18 to read as
   15-9  follows:
  15-10        Sec. 18.  CONFIDENTIAL INFORMATION.  (a)  Except as provided
  15-11  by Subsection (b) of this section, information obtained by the
  15-12  Commissioner or the commission under this Act from a licensee or
  15-13  through an examination and a file or record of the Banking
  15-14  Department of Texas relating to that information is confidential
  15-15  and may not be disclosed if the information:
  15-16              (1)  relates to the financial condition of the
  15-17  licensee; or
  15-18              (2)  is proprietary information of the licensee, as
  15-19  determined by the Commissioner in the Commissioner's sole
  15-20  discretion.
  15-21        (b)  The Commissioner may release confidential information
  15-22  if:
  15-23              (1)  the information is an annual audited
  15-24  unconsolidated financial statement filed by a licensee as required
  15-25  by Section 9B of this Act;
  15-26              (2)  the Commissioner finds that immediate and
  15-27  irreparable harm is threatened to purchasers or potential
   16-1  purchasers of checks or the general public;
   16-2              (3)  the licensee consents to the release or has
   16-3  published the information contained in the release;
   16-4              (4)  the Commissioner finds that release of the
   16-5  information is required for an administrative hearing, in which
   16-6  case the information may be released to the parties to the hearing
   16-7  on order of the hearings officer; or
   16-8              (5)  the Commissioner finds that the release is
   16-9  reasonably necessary for the protection of the public and in the
  16-10  interest of justice, in which case the information may be released
  16-11  only to a representative of an agency, department, or
  16-12  instrumentality of this state, another state, or the federal
  16-13  government.
  16-14        (c)  Before releasing information that the Commissioner
  16-15  determines is not proprietary under Subsection (a)(2) of this
  16-16  section, the Commissioner shall give the licensee notice of the
  16-17  release.
  16-18        SECTION 14.  Notwithstanding Subsection (d), Section 9, The
  16-19  Sale of Checks Act (Article 489d, Vernon's Texas Civil Statutes),
  16-20  as added by this Act, a person who is subject to that subsection
  16-21  and who held a license under that Act on January 1, 1993, is
  16-22  required to maintain for the license permissible investments or a
  16-23  bond under that section in the following amounts:
  16-24              (1)  during the 12-month period beginning September 1,
  16-25  1993, an amount equal to not less than 10 percent of the aggregate
  16-26  face amount of all outstanding checks sold in the United States for
  16-27  which the licensee is liable for payment, less the amount of a
   17-1  surety bond maintained under Section 7(c) of that Act;
   17-2              (2)  during the 12-month period beginning September 1,
   17-3  1994, an amount equal to not less than 20 percent of the aggregate
   17-4  face amount of all outstanding checks sold in the United States for
   17-5  which the licensee is liable for payment, less the amount of a
   17-6  surety bond maintained under Section 7(c) of that Act;
   17-7              (3)  during the 12-month period beginning September 1,
   17-8  1995, an amount equal to not less than 30 percent of the aggregate
   17-9  face amount of all outstanding checks sold in the United States for
  17-10  which the licensee is liable for payment, less the amount of a
  17-11  surety bond maintained under Section 7(c) of that Act;
  17-12              (4)  during the 12-month period beginning September 1,
  17-13  1996, an amount equal to not less than 40 percent of the aggregate
  17-14  face amount of all outstanding checks sold in the United States for
  17-15  which the licensee is liable for payment, less the amount of a
  17-16  surety bond maintained under Section 7(c) of that Act; and
  17-17              (5)  on and after September 1, 1997, the amount
  17-18  required by Subsection (d), Section 9, The Sale of Checks Act
  17-19  (Article 489d, Vernon's Texas Civil Statutes), as added by this
  17-20  Act.
  17-21        SECTION 15.  (a)  Except as provided by this section, this
  17-22  Act takes effect September 1, 1993.
  17-23        (b)  Sections 2 and 4, The Sale of Checks Act (Article 489d,
  17-24  Vernon's Texas Civil Statutes), as amended by Sections 1 and 2 of
  17-25  this Act, take effect January 1, 1994.
  17-26        (c)  The changes made by this Act to the security
  17-27  requirements provided by Section 7, The Sale of Checks Act (Article
   18-1  489d, Vernon's Texas Civil Statutes), apply to a person holding a
   18-2  license under the Act on September 1, 1993, beginning April 15,
   18-3  1994.
   18-4        SECTION 16.  The importance of this legislation and the
   18-5  crowded condition of the calendars in both houses create an
   18-6  emergency and an imperative public necessity that the
   18-7  constitutional rule requiring bills to be read on three several
   18-8  days in each house be suspended, and this rule is hereby suspended.