By: Ellis S.B. No. 1209 A BILL TO BE ENTITLED AN ACT 1-1 relating to the business of currency exchange, currency 1-2 transmission, and currency transportation, amending Article 350, 1-3 Vernon's Texas Civil Statutes; and making an appropriation. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Section 1, Article 350, Vernon's Revised Civil 1-6 Statutes, is amended by amending Subdivision (5) and adding 1-7 Subdivision (11) to read as follows: 1-8 (5) "Currency exchange, transportation, or 1-9 transmission business" means a person who is engaging in currency 1-10 exchange, currency transportation, or currency transmission as a 1-11 service or for profit. 1-12 (11) "Currency transportation" means engaging in the 1-13 business of physically transporting currency from one location to 1-14 another. 1-15 SECTION 2. Section 2, Article 350, Vernon's Texas Civil 1-16 Statutes, is amended to read as follows: 1-17 Except as provided by Section 3 of this article, a person may 1-18 not engage in the business of currency exchange, transportation, or 1-19 transmission without a license issued under this article. A person 1-20 licensed under this article may not engage in any business other 1-21 than currency exchange, transportation, or transmission at the 1-22 location where the person maintains their currency exchange, 1-23 transportation, or transmission business. 2-1 SECTION 3. Section 3, Article 350, Vernon's Texas Civil 2-2 Statutes, is amended by adding Subsection (f) to read as follows: 2-3 (f) A person engaged in the business of currency 2-4 transportation who holds a valid permit issued pursuant to Section 2-5 6-dd of Article 911b, Vernon's Texas Civil Statutes is not required 2-6 to be licensed under this article, provided that such a permit does 2-7 not authorize the person to engage in the business of currency 2-8 exchange or transmission without a license issued under this 2-9 article. 2-10 SECTION 4. Article 350, Vernon's Texas Civil Statutes, is 2-11 amended by adding Section 12 to read as follows: 2-12 Sec. 12. REPORTING AND RECORDKEEPING. (a) Persons holding 2-13 a license under this article shall maintain separate accounting 2-14 books and records in this state relating to their operations. All 2-15 books and records maintained by a licensee shall be located where 2-16 they are readily accessible to the Department of Banking. 2-17 (b) Licensees shall comply with all federal laws and 2-18 regulations affecting their operations, and shall maintain records 2-19 of all filings made pursuant to and documentation required under 2-20 all applicable federal laws and regulations, including the 2-21 requirements set forth in 31 United States Code, Section 5313, and 2-22 31 Code of Federal Regulations, Part 103. 2-23 (c) Each licensee shall, in a form prescribed by the Banking 2-24 Commissioner, file quarterly written reports with the Department of 2-25 Banking. 3-1 (d) In addition to the records required to be maintained 3-2 under Subsections (a) and (b) of this section, licensees shall keep 3-3 the following records: 3-4 (1) Currency Exchange. 3-5 (A) No licensee may engage in a currency 3-6 exchange transaction in an amount of $1,000.00 or more unless the 3-7 licensee issues sequentially numbered receipts or receipts bearing 3-8 a unique identification or transaction number for each of those 3-9 transactions. The receipts must include the date of the 3-10 transaction, the amount and type of currency received and given in 3-11 exchange, the rate of exchange, and the applicable commission for 3-12 the transaction. The licensee shall also maintain a record of each 3-13 such transaction that includes the identifying receipt number as 3-14 well as the following information: 3-15 (i) the name and address of the customer; 3-16 (ii) the social security number of the 3-17 customer, or if the customer is an alien and does not have a social 3-18 security number, the passport number, alien identification card 3-19 number, or other official document of the customer evidencing 3-20 nationality or residence; 3-21 (iii) the name and address of the person 3-22 on whose behalf the transaction is being conducted if the customer 3-23 is conducting the transaction on behalf of another person, together 3-24 with the appropriate identification for such other person specified 3-25 in Subsection (d)(1)(A)(ii); 4-1 (iv) the location of the office where the 4-2 transaction was conducted; and 4-3 (v) the name of the employee of the 4-4 licensee conducting the transaction. 4-5 (B) In connection with all transactions in an 4-6 amount of $1,000.00 or more, the licensee shall verify the 4-7 customer's name and address by examination of a document that 4-8 contains the name, address, and a photograph of the customer and is 4-9 customarily acceptable within the banking community as a means of 4-10 identification when cashing checks for non-depositors. The 4-11 licensee shall record the specific identifying information on the 4-12 receipt or in the log entry related to the transaction, including 4-13 the identification number associated with the document and the 4-14 issuer of the identification document. 4-15 (C) Contemporaneous currency exchange 4-16 transactions of the same or different types of currency made by or 4-17 on behalf of the same person totaling $1,000.00 or more shall be 4-18 treated as one transaction. Multiple transactions made by or on 4-19 behalf of the same person during one business day totaling 4-20 $1,000.00 or more shall be treated as one transaction if an 4-21 individual employee, director, officer, or partner of the licensee 4-22 knew or should have known that the transactions occurred. 4-23 (2) Currency Transmission. 4-24 (A) No licensee authorized to engage in currency 4-25 transmission may enter into a currency transaction in an amount of 5-1 $1,000.00 or more unless the licensee issues sequentially numbered 5-2 receipts or receipts bearing a unique identification or transaction 5-3 number for each of those transactions. The receipt must bear the 5-4 date of the transaction, the amount of the transmission in U.S. 5-5 dollars, the rate of exchange (if applicable), and the fee or 5-6 commission charged for the transaction. The receipt also must 5-7 indicate whether the transaction was initiated or terminated at the 5-8 licensee's business. The licensee must also maintain a record of 5-9 each such transaction that includes the identifying receipt number 5-10 as well as the following information: 5-11 (i) the name and address of the customer, 5-12 whether sender or recipient; 5-13 (ii) the social security number of the 5-14 customer, or if the customer is an alien and does not have a social 5-15 security number, the passport number, alien identification card 5-16 number, or other official document of the customer evidencing 5-17 nationality or residence; 5-18 (iii) the date of birth of the customer; 5-19 (iv) the name and address of the person on 5-20 whose behalf the transaction is being conducted, if the customer is 5-21 conducting the transaction on behalf of another person, together 5-22 with the appropriate identification for such other person specified 5-23 in Subsection (d)(2)(a)(ii) above; 5-24 (v) the location of the office where the 5-25 transaction was conducted; 6-1 (vi) the designated recipient's name, 6-2 address, and telephone number, if the customer is the sender; 6-3 (vii) the sender's name, address, and 6-4 telephone number, if the customer is the recipient and that 6-5 information is available to the licensee; 6-6 (viii) any instructions or messages 6-7 relating to the transmission; and 6-8 (ix) the method of payment. 6-9 (B) In connection with all transactions in an 6-10 amount of $1,000.00 or more, the licensee shall verify the 6-11 customer's name and address by examination of a document that 6-12 contains the name and address of the customer and is customarily 6-13 acceptable within the banking community as a means of 6-14 identification when cashing checks for non-depositors. The 6-15 licensee shall record the specific identifying information on the 6-16 receipt or in the log entry related to the transaction, including 6-17 the identification number associated with the document and the 6-18 issuer of the identification document. 6-19 (C) Contemporaneous transactions initiated by or 6-20 on behalf of the same person or received by or on behalf of the 6-21 same person totaling $1,000 or more shall be treated as one 6-22 transaction. Multiple transactions during a single business day 6-23 initiated by or on behalf of the same person or received by or on 6-24 behalf of the same person and totaling $1,000 or more shall be 6-25 treated as one transaction if an individual employee, director, 7-1 officer, or partner of the licensee knew or should have known that 7-2 the transactions occurred. 7-3 (3) Currency Transportation. 7-4 (A) No licensee may engage in a currency 7-5 transportation transaction in an amount of $1,000.00 or more unless 7-6 the licensee issues sequentially numbered receipts or receipts 7-7 bearing a unique identification or transaction number for each 7-8 transaction. The receipts must include the date of the 7-9 transaction, the amount and type of currency received or 7-10 transportation, and the applicable commission for the transaction. 7-11 The licensee shall also maintain a record of each such transaction 7-12 that includes the identifying receipt number as well as the 7-13 following information: 7-14 (i) the name and address of the customer; 7-15 (ii) the social security number of the 7-16 customer, or if the customer is an alien and does not have a social 7-17 security number, the passport number, alien identification card 7-18 number, or other official document of the customer evidencing 7-19 nationality or residence; 7-20 (iii) the name and address of the person 7-21 on whose behalf the transaction is being conducted if the customer 7-22 is conducting the transaction on behalf of another person, together 7-23 with the appropriate identification for such other person specified 7-24 in subsection(d)(3)(A)(ii); 7-25 (iv) the location of the office where the 8-1 transaction was conducted; 8-2 (v) the name of the employee of the 8-3 licensee conducting the transaction; 8-4 (vi) the designated recipient's name, 8-5 address, and telephone number, if the customer is the sender; 8-6 (vii) the sender's name, address, and 8-7 telephone number, if the customer is the recipient and that 8-8 information is available to the licensee; 8-9 (viii) any instructions or messages 8-10 relating to the transportation; and 8-11 (ix) the method of payment. 8-12 (B) In connection with all transactions in an 8-13 amount of $1,000.00 or more, the licensee shall verify the 8-14 customer's name and address by examination of a document that 8-15 contains the name, address, and a photograph of the customer and is 8-16 customarily acceptable within the banking community as a means of 8-17 identification when cashing checks for non-depositors. The 8-18 licensee shall record the specific identifying information on the 8-19 receipt or in the log entry related to the transaction, including 8-20 the identification number associated with the document and the 8-21 issuer of the identification document. 8-22 (C) Contemporaneous currency transportation 8-23 transactions of the same or different types of currency made by or 8-24 on behalf of the same person totaling $1,000.00 or more shall be 8-25 treated as one transaction. Multiple transactions made by or on 9-1 behalf of the same person during one business day totaling 9-2 $1,000.00 or more shall be treated as one transaction if an 9-3 individual employee, director, officer, or partner of the licensee 9-4 knew or should have known that the transactions occurred. 9-5 (4) A licensee must maintain a log or logs for each 9-6 calendar month on which shall be recorded the following information 9-7 for each transaction: 9-8 (A) the date of the transaction; 9-9 (B) the location of the office where the 9-10 transaction was conducted; 9-11 (C) the amount and type of currency received and 9-12 given in exchange, the amount of currency received for 9-13 transportation, or the amount of the transmission, as applicable; 9-14 (D) the rate of exchange, if applicable; 9-15 (E) the amount of any service charges or fees 9-16 assessed in connection with the transaction; and 9-17 (F) the number of the receipt issued in 9-18 connection with the transaction, if any. 9-19 (e) All logs, records, and receipt information must be 9-20 maintained by the licensee in a readily accessible and retrievable 9-21 form and must be maintained for a period of at least 5 years. 9-22 Copies of receipts issued by the licensee must be kept at the 9-23 licensee's business location for 180 days after the date of 9-24 issuance provided that after 180 days the receipts need not be 9-25 retained if the information required on the receipt is maintained 10-1 in a readily accessible and retrievable form. If a license is 10-2 surrendered or revoked the licensee must retain the actual receipts 10-3 issued prior to the surrender or revocation for a period of one 10-4 year after the date of surrender or revocation. 10-5 (f) Failure to comply with this section shall be grounds for 10-6 denial, revocation, or suspension of a license as provided in 10-7 Section 6 of the Act and assessment of civil and criminal penalties 10-8 penalty in accordance with provisions of the Act. 10-9 SECTION 5. Article 350, Vernon's Texas Civil Statutes is 10-10 amended by renumbering Sections 12 through 21 as Sections 13 10-11 through 22, respectively. 10-12 SECTION 6. SEVERABILITY. If any section, sentence, clause, 10-13 or part of this Act shall, for any reason, be held invalid, such 10-14 invalidity shall not affect the remaining portions of the Act, and 10-15 it is hereby declared to be the intention of this legislature to 10-16 have passed each section, sentence, clause, or part irrespective of 10-17 the fact that any other section, sentence, clause, or part may be 10-18 declared invalid. 10-19 SECTION 7. APPROPRIATION OF FEES AND CIVIL PENALTIES. In 10-20 addition to moneys appropriated elsewhere, the attorney general is 10-21 hereby appropriated all fees assessed pursuant to and all recovered 10-22 expenses and costs incurred in obtaining penalties authorized by 10-23 enforcing or assisting in the enforcing of the statute amended by 10-24 this bill. Recovered expenses include, but are not limited to, 10-25 investigative costs, witness fees, attorneys' fees, and deposition 11-1 expenses and shall be credited to the attorney general's law 11-2 enforcement account. Moneys hereby appropriated may be expended 11-3 only for purposes of enforcing the provisions the statute amended 11-4 by this bill, and may not be appropriated for any other purpose. 11-5 SECTION 8. CRIMINAL OFFENSES OR VIOLATIONS. (a) The change 11-6 in law made by this Act applies only to an offense committed on or 11-7 after the effective date of this Act. For purposes of this Act, an 11-8 offense is committed before the effective date of this Act if any 11-9 element of the offense occurs before the effective date. 11-10 (b) An offense committed before the effective date of this 11-11 Act is covered by the law in effect when the offense is committed, 11-12 and the former law is continued in effect for this purpose. 11-13 SECTION 9. EFFECTIVE DATE. This Act takes effect 11-14 September 1, 1995. 11-15 SECTION 10. EMERGENCY. The importance of this legislation 11-16 and the crowded condition of the calendars in both houses creates 11-17 an emergency and an imperative public necessity that the 11-18 constitutional rule requiring bills to be read on three several 11-19 days in each house be suspended, and this rule is hereby suspended, 11-20 and it is so enacted.