By Carona H.B. No. 1259
74R4581 DWS-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to security obligations of a licensed seller of checks.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 9, The Sale of Checks Act (Article 489d,
1-5 Vernon's Texas Civil Statutes), is amended to read as follows:
1-6 Sec. 9. Obligations of Licensee. Each person holding a
1-7 license under this Act shall at all times when the license is in
1-8 effect:
1-9 (a) Maintain the bond or securities in the amount
1-10 prescribed by Section 7 and if<;>
1-11 <(b) If> the licensee does not have on file or deposit
1-12 a bond or securities, as aforesaid, in the undiminished principal
1-13 sum of at least Five Hundred Thousand Dollars ($500,000), file
1-14 quarterly reports with the Commissioner setting forth the locations
1-15 at which he sells checks in this state not later than the 45th day
1-16 after the date of the last day of each quarter of the licensee's
1-17 fiscal year <as of January 1, April 1, July 1, and October 1 in
1-18 each year, the report for each such date being due on or before the
1-19 15th day thereafter>;
1-20 (1) Within ten (10) days following the filing of
1-21 such a report, the principal sum of the bond or securities shall be
1-22 increased to reflect any increase in the number of locations, and
1-23 may be decreased to reflect any decrease in the number of
1-24 locations;
2-1 (2) If the Commissioner shall at any time
2-2 reasonably determine that the bond or securities aforesaid are
2-3 insecure, deficient in amount, or exhausted in whole or part, the
2-4 Commissioner <he> may by written order require the filing of a new
2-5 or supplemental bond or the deposit of new or additional securities
2-6 in order to secure compliance with this Act, such order to be
2-7 complied with within thirty (30) days following service thereof
2-8 upon the licensee;
2-9 (b) <(c)> Maintain a net worth equal to or greater
2-10 than the amount then currently prescribed by Section 5 for license
2-11 applicants; <and>
2-12 (c) If the licensee has a net worth of less than Five
2-13 Million Dollars ($5 million), as shown by audited financial
2-14 statements reasonably satisfactory to the Commissioner, have
2-15 <(d) Have> on hand permissible investments in an amount equal to
2-16 the aggregate face amount of all outstanding checks sold in the
2-17 United States<, except traveler's checks,> for which the licensee
2-18 is liable for payment; and
2-19 (d) If the licensee has a net worth of Five Million
2-20 Dollars ($5 million) or more, as shown by audited financial
2-21 statements reasonably satisfactory to the Commissioner, have on
2-22 hand permissible investments in an amount equal to at least 50
2-23 percent of the aggregate face amount of all outstanding checks sold
2-24 in the United States for which the licensee is liable for payment.
2-25 <however, this subsection does not apply to any licensee with a net
2-26 worth of not less than Five Million Dollars ($5 million) as shown
2-27 by audited financial statements reasonably satisfactory to the
3-1 Commissioner; statements filed under Section 9B of this Act may be
3-2 used to satisfy this requirement.>
3-3 SECTION 2. Notwithstanding Subsection (d), Section 9, The
3-4 Sale of Checks Act (Article 489d, Vernon's Texas Civil Statutes),
3-5 as added by this Act, a person who is subject to that subsection
3-6 and who held a license under that Act on January 1, 1995, is
3-7 required to maintain for the license permissible investments or a
3-8 bond under that section in the following amounts:
3-9 (1) during the 12-month period beginning September 1,
3-10 1995, an amount equal to not less than 25 percent of the aggregate
3-11 face amount of all outstanding checks sold in the United States for
3-12 which the licensee is liable for payment; and
3-13 (2) on and after September 1, 1996, the amount
3-14 required by Subsection (d), Section 9, The Sale of Checks Act
3-15 (Article 489d, Vernon's Texas Civil Statutes), as added by this
3-16 Act.
3-17 SECTION 3. This Act takes effect September 1, 1995.
3-18 SECTION 4. The importance of this legislation and the
3-19 crowded condition of the calendars in both houses create an
3-20 emergency and an imperative public necessity that the
3-21 constitutional rule requiring bills to be read on three several
3-22 days in each house be suspended, and this rule is hereby suspended.