SRC-SLL S.B. 1663 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1663
By: Shapiro
Economic Development
4-18-97
As Filed


DIGEST 

Currently, there is some disagreement whether the Sale of Checks Act
applies to a person who maintains a bank account in Texas and then engages
in the business of selling checks written on the account at a place of
business located outside of Texas.  There is increasing suspicion that
this loophole in the law is used by some out-of-state businesses to
launder illegal drug profits.  A money launderer operating such an account
simply allows a drug trafficker to deposit cash from narcotics sales into
the Texas account in exchange for checks that can be negotiated by the
drug trafficker through seemingly legitimate business transactions.  By
conducting this type of business outside of Texas, the money launderer
successfully evades Texas law.  This bill will require a person engaged in
the business of selling checks written on a Texas account to obtain a
license regardless of where the check-selling business is located. 

PURPOSE

As proposed, S.B. 1663 requires a person engaged in the business of
selling checks written on a Texas account to obtain a license regardless
of where the check-selling business is located. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 3, Article 489d, V.T.C.S., to prohibit a person,
except those specified in Section 4, from maintaining, utilizing, or
otherwise controlling an account in this state for the purpose of engaging
in the business of selling checks, without having first obtained a license
hereunder. 

SECTION 2. Severability clause.

SECTION 3. Effective date: September 1, 1997.

SECTION 4. Emergency clause.