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.