By Serna H.B. No. 3209
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of currency exchange and currency
1-3 transmission business.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 5, Article 350, Revised Statutes, is
1-6 amended to read as follows:
1-7 Sec. 5. <The commissioner shall set the license application
1-8 fees, license fees, license renewal fees, and examination fees in
1-9 amounts reasonable and necessary to defray the cost of
1-10 administering this article.> The Finance Commission shall, by
1-11 regulation, set the license application fee and license renewal fee
1-12 as may be necessary to cover the cost of administering this article
1-13 and shall establish a schedule for assessing examination and/or
1-14 investigation fees necessary to defray the cost of the examination
1-15 or investigation. The schedule shall include, but is not limited
1-16 to the following:
1-17 (1) a requirement for an itemization of expenses
1-18 incurred by the Examiner on each bill to be provided to the
1-19 licensee;
1-20 (2) a requirement for a breakdown of hours spent on
1-21 examination and an hourly rate charge per Examiner;
1-22 (3) an explanation of the state imposed restrictions
1-23 on lawful charges to be incurred by state employees with specific
2-1 reference to provisions of the Texas statutes and/or regulations
2-2 controlling the same.
2-3 SECTION 2. Section 8(b), Article 350, Revised Statutes, is
2-4 amended to read as follows:
2-5 Sec. 8. (b) Before the commissioner issues a license to an
2-6 applicant, the commissioner must determine that the financial
2-7 condition, business experience, and character and general fitness
2-8 of an applicant are such that the issuance of a license to the
2-9 applicant under this article is in the public interest. If the
2-10 applicant is an individual, he or she must be a resident of this
2-11 State. If the applicant is other than an individual, a majority of
2-12 the principals must be residents of this State. Notwithstanding
2-13 anything herein to the contrary, the provisions of this Article
2-14 related to residency of applicants are not intended to conflict
2-15 with any provisions of the North American Free Trade Agreement or
2-16 the General Agreement on Tariffs and Trade. If any provision of
2-17 the Article related to residency requirements are in conflict with
2-18 the above mentioned trade agreements, it is the express intention
2-19 of the Legislature that such trade agreements shall control.
2-20 SECTION 3. Section 8(c), Article 350, Revised Statutes, is
2-21 amended to read as follows:
2-22 Sec. 8. (c) A person is not eligible for a license or must
2-23 surrender an existing license if<, during the previous 10 years,>
2-24 the person or a principal of the person, if a business or any agent
2-25 of the person:
3-1 (1) has been convicted, within the previous 10 years,
3-2 of a felony or a crime involving moral turpitude under the laws of
3-3 this state, any other state, or the United States;
3-4 (2) has been convicted, within the previous 10 years,
3-5 of a crime under the laws of another country that involves moral
3-6 turpitude or would be a felony if committed in the United States;
3-7 (3) owes delinquent taxes, fines or fees to any local,
3-8 state, or federal taxing or governmental entity.
3-9 (4) is a close relative or spouse of a person who,
3-10 within the previous 10 years, has been convicted of any State or
3-11 Federal drug, money laundering or drug trafficking law;
3-12 (5) has, within the previous 10 years, violated the
3-13 Sale of Checks Act or any State or Federal law relating to currency
3-14 exchange or transmission or monetary instrument reporting
3-15 requirements.
3-16 (6) has, as determined by the Commissioner, a record
3-17 of violating, within the previous 10 years, any state or federal
3-18 law relating to money laundering, Bank Secrecy Act reporting, labor
3-19 or immigration laws. The Commissioner has the sole discretion in
3-20 determining whether such person or any principal or agent has such
3-21 a record;
3-22 SECTION 4. Section 8(d), Article 350, Revised Statutes, is
3-23 amended to read as follows:
3-24 Sec. 8. (d) An applicant for a license or renewal of a
3-25 license must demonstrate that the applicant:
4-1 (1) has not recklessly failed to file or evaded the
4-2 obligation to file a currency transaction report as required by 31
4-3 U.S.C. Section 5313 during the previous three years;
4-4 (2) has not recklessly accepted currency for exchange
4-5 or transmission during the previous three years in which a portion
4-6 of the currency was derived from an illegal transaction or
4-7 activity;
4-8 (3) will conduct its currency exchange or transmission
4-9 business within the bounds of state and federal law<; and>
4-10 (4) warrants the trust of the community; and
4-11 (5) has and will maintain effective January 1, 1996 a
4-12 minimum paid in capital of $50,000 in liquid assets for each
4-13 location at which business is conducted, including any location or
4-14 agency that receives or holds any funds intended to be transmitted
4-15 by another location. Effective January 1, 1997, any applicant for
4-16 a license or renewal of a license must have and maintain a minimum
4-17 paid in capital of $100,000 in liquid assets for each location at
4-18 which business is conducted, including any location or agency that
4-19 receives or holds any funds intended to be transmitted by another
4-20 location. For purposes of this Section, liquid assets mean:
4-21 (A) domestic or foreign cash, gold bullion or
4-22 domestic or foreign bank notes;
4-23 (B) investment securities that are obligations
4-24 of the United States, its agencies or instrumentalities or
4-25 obligations that are guaranteed fully as to principal and interest
5-1 by the United States or any obligations of any state, municipality
5-2 or political subdivision thereof; or
5-3 (C) any other investment approved by the Banking
5-4 Commissioner of Texas.
5-5 SECTION 5. Section 8, Article 350, Revised Statutes, is
5-6 amended to add subsection (e) and will read as follows:
5-7 Sec. 8 (e) Prior to approving any application, the
5-8 Department may investigate any applicant or any principal of an
5-9 applicant who has spent any significant amount of time as an adult
5-10 in a foreign country. The Department is authorized to conduct such
5-11 investigation at the sole expense of the applicant. The Department
5-12 may require the nonrefundable payment up front of the anticipated
5-13 expenses for conducting such investigation. Failure to provide the
5-14 same or cooperate with the investigation shall constitute grounds
5-15 for denying the application.
5-16 SECTION 6. Section 10, Article 350, Revised Statutes, is
5-17 amended to read as follows:
5-18 Sec. 10. (a) A person who is licensed under this article
5-19 shall post a bond with a qualified surety company doing business in
5-20 this state that is acceptable to the commissioner or an irrevocable
5-21 letter of credit issued by a qualified financial institution that
5-22 is acceptable to the commissioner. The bond or letter of credit
5-23 shall be in an amount determined by the commissioner. The
5-24 commissioner shall determine the amount of the bond or letter of
5-25 credit based on the dollar volume of the licensee's currency
6-1 exchange or transmission business and the number of locations from
6-2 which the person operates, but the bond or letter of credit must be
6-3 at least <$25,000> 50,000 per location at which currency is
6-4 exchanged or accepted for transmission. In determining the amount
6-5 of bond for licensees engaged in the currency transmission
6-6 business, the Banking Commissioner shall calculate the bond to be,
6-7 at a minimum, equal to the maximum amount of funds held for
6-8 transmission, but not yet transmitted, for any continuous period of
6-9 time during the prior audit period, or a percentage, determined by
6-10 the Commissioner, of the total funds transmitted annually,
6-11 whichever is greater.
6-12 (b) A bond or letter of credit posted by a licensee must be
6-13 conditioned that as long as the person holds the license the person
6-14 will not violate this article or a rule adopted under this article.
6-15 The beneficiary of the bond or letter of credit must be the Banking
6-16 Department.
6-17 SECTION 7. Section 11, Article 350, Revised Statutes, is
6-18 amended to read as follows:
6-19 Sec. 11. (a) Each licensee is subject to a periodic
6-20 examination of the licensee's business records by the commissioner
6-21 at the expense of the licensee. For the purpose of carrying out
6-22 this article, the commissioner may examine all books, records,
6-23 papers, or other objects that the commissioner determines are
6-24 necessary for conducting a complete examination and may also
6-25 examine under oath any principal associated with the license
7-1 holder, including an officer, director, or employee of the
7-2 licensee. If a person required by the commissioner to submit to an
7-3 examination refuses to permit the examination or to answer any
7-4 question authorized by this article, the commissioner may suspend
7-5 the person's license until the examination is completed.
7-6 (b) The Department, at least once every two years, shall
7-7 conduct an unannounced examination in order to investigate and
7-8 examine properly each licensee's compliance with all state and
7-9 federal laws.
7-10 (c) As part of every examination, the Department shall
7-11 verify that each licensee is complying with all state and federal
7-12 laws in the conduct of such business, including, but not limited
7-13 to, examination of compliance with all labor and immigration laws
7-14 as well as all Bank Secrecy Act reporting requirements.
7-15 SECTION 8. Section 17, Article 350, Revised Statutes, is
7-16 amended to read as follows:
7-17 Sec. 17. As provided by Chapter 59, Code of Criminal
7-18 Procedure, the state may seek the forfeiture of all money, real
7-19 estate, equipment, business assets, bank accounts, financial
7-20 instruments, accounts receivable, and all other property, real or
7-21 personal, tangible or intangible, related to the currency exchange
7-22 or transmission business conducted by a person who knowingly
7-23 operates a currency exchange or transmission business in violation
7-24 of this article, including rules adopted under this article, or
7-25 operates without a proper license.
8-1 SECTION 9. Section 22, Article 350, Revised Statutes, is
8-2 hereby added and reads as follows:
8-3 DECEPTIVE ADVERTISING
8-4 Sec. 22. (a) Any person holding a license under this
8-5 Article determines to conduct any type of advertising of prices to
8-6 be charged for services provided herein, the person is required to
8-7 specifically state any fees or commissions to be charged to the
8-8 consumer. The Finance Commission shall, by rule, establish
8-9 requirements for size and type of lettering in all advertisements
8-10 of rates. A violation of this provision shall be considered a
8-11 violation of the Act and a deceptive practice as that term is
8-12 defined in the Texas Business and Commerce Code.
8-13 (b) Applicants for licenses shall not utilize any name or
8-14 advertising technique which is similar to any other licensee. The
8-15 Department shall not grant any license to any applicant who
8-16 attempts to utilize a name that is similar to any other licensee.
8-17 The Finance Commission shall promulgate rules necessary to
8-18 implement the requirements of this subsection.
8-19 SECTION 10. Article 342-104, Revised Statutes, is amended to
8-20 read as follows:
8-21 1. Two (2) members of the Finance Commission shall be
8-22 banking executives. For the purposes of this article, a banking
8-23 executive is a person who has had five (5) years or more executive
8-24 experience in the seven (7) years next preceding the person's
8-25 appointment in a Federal or State bank in a capacity not lower than
9-1 cashier and who, at the time of the person's appointment, is an
9-2 officer in a State bank.
9-3 2. Two (2) members of the Finance Commission shall be
9-4 savings executives. For the purposes of this article a savings
9-5 executive is a person who:
9-6 (i) has had five (5) years or more executive
9-7 experience in the seven (7) years next preceding the person's
9-8 appointment in a State or Federal Savings and Loan Association, a
9-9 savings bank, or a federal savings bank in a capacity not lower
9-10 than cashier; and
9-11 (ii) at the time of the person's appointment is an
9-12 officer in a State association or a savings bank.
9-13 3. One member of the Finance Commission shall be a currency
9-14 exchange executive. For purposes of this Article, a currency
9-15 exchange executive is a person who:
9-16 (i) has had five (5) years or more executive
9-17 experience in the seven (7) years preceding the person's
9-18 appointment in the currency exchange or currency transmission
9-19 business and has served as an officer or director or principal for
9-20 at least five (5) years; and
9-21 (ii) at the time of the person's appointment, is a
9-22 principal in a currency exchange business license pursuant to
9-23 Article 350, Revised Civil Statutes.
9-24 <3> 4. Experience as Banking Commissioner, Deputy Banking
9-25 Commissioner, Departmental Examiner, or Examiner shall be deemed
10-1 executive banking experience, and experience as Savings and Loan
10-2 Commissioner, Deputy Savings and Loan Commissioner, or Savings and
10-3 Loan Examiner shall be deemed executive savings and loan
10-4 experience, within the meaning of this article.
10-5 <4> 5. The members of the Finance Commission who are not
10-6 banking executives, <or> savings executives, or currency exchange
10-7 executives shall be selected by the Governor on the basis of
10-8 recognized business ability. Those members may not be banking
10-9 executives, savings executives, or controlling shareholders in a
10-10 bank, savings and loan association, or savings bank. At least one
10-11 of those members must be a certified public accountant.
10-12 <5> 6. A member or employee of the Finance Commission may
10-13 not be an officer, employee, or paid consultant of a trade
10-14 association in the banking or lending industry. A member or
10-15 employee of the Finance Commission may not be related within the
10-16 second degree by affinity or consanguinity, as determined under
10-17 Article 5996h, Revised Statutes, to a person who is an officer,
10-18 employee, or paid consultant of a trade association in the banking
10-19 or lending industry.
10-20 SECTION 11. The importance of this legislation and the
10-21 crowded condition of the calendars in both houses create an
10-22 emergency and an imperative public necessity that the
10-23 constitutional rule requiring bills to be read on three several
10-24 days in each house be suspended, and this rule is hereby suspended,
10-25 and that this Act take effect and be in force from and after its
11-1 passage, and it is so enacted.