By Cuellar                                            H.B. No. 2320
         76R11082 DWS-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the licensing and regulation of currency exchange,
 1-3     transmission, and transportation businesses.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 59.201(a), Finance Code, is amended to
 1-6     read as follows:
 1-7           (a)  Subject to Chapter 153, a [A] person may install,
 1-8     maintain, and operate one or more electronic terminals at any
 1-9     location in this state for the convenience of customers of
1-10     depository institutions.
1-11           SECTION 2.  Section 153.001, Finance Code, is amended by
1-12     amending Subdivisions (5), (6), (7), and (10) and by adding
1-13     Subdivision (11) to read as follows:
1-14                 (5)  "Currency exchange, transportation, or
1-15     transmission business" means engaging in or offering currency
1-16     exchange, transportation, or transmission as a service or for
1-17     profit.
1-18                 (6)  "Currency transmission" means receiving currency
1-19     or an instrument payable in currency to transmit the currency or
1-20     its equivalent by wire, computer modem, facsimile, or other
1-21     electronic means or through the use of a financial institution, a
1-22     financial intermediary, the federal reserve system, or another
1-23     funds transfer network.
1-24                 (7)  "Currency transportation" means receiving currency
 2-1     or an instrument payable in currency to physically transport the
 2-2     [transporting] currency or its equivalent from one location to
 2-3     another by motor vehicle or other means of transportation or
 2-4     through the use of the mail or a shipping, courier, or other
 2-5     delivery service.
 2-6                 (10)  "Instrument" has the meaning assigned by Section
 2-7     3.104, Business & Commerce Code.
 2-8                 (11)  "Principal" means a person who participates in
 2-9     the affairs of a license holder or exercises supervisory duties,
2-10     including an owner, officer, director, partner, trustee, or agent
2-11     of the license holder.
2-12           SECTION 3.  Section 153.002, Finance Code, is amended to read
2-13     as follows:
2-14           Sec. 153.002.  RULES.  The commission shall adopt rules
2-15     necessary or desirable to implement this chapter, including rules
2-16     regarding requirements for or conditions applicable to:
2-17                 (1)  [requirements for the] issuance, renewal, denial,
2-18     suspension, and revocation of a license; [and]
2-19                 (2)  recordkeeping and reporting [requirements] of a
2-20     license holder; and
2-21                 (3)  exemption from the licensing requirements of this
2-22     chapter.
2-23           SECTION 4.  Section 153.102(d), Finance Code, is amended to
2-24     read as follows:
2-25           (d)  An applicant for a license must demonstrate that the
2-26     applicant:
2-27                 (1)  has not during the preceding three years
 3-1     [recklessly] failed to file or evaded the obligation to file a
 3-2     currency transaction report as required by 31 U.S.C.  Section 5313;
 3-3                 (2)  has not during the preceding three years
 3-4     [recklessly] accepted currency for exchange, transportation, or
 3-5     transmission in which a part of the currency was derived from an
 3-6     illegal transaction or activity;
 3-7                 (3)  will conduct the currency exchange,
 3-8     transportation, or transmission business according to state and
 3-9     federal law;
3-10                 (4)  warrants the trust of the community;
3-11                 (5)  has and will maintain [for each location at which
3-12     currency is accepted for transmission] a minimum net worth of
3-13     $25,000 or, if the applicant will engage in currency transmission
3-14     transactions at multiple locations in this state in accordance with
3-15     Section 153.105, a minimum net worth of $25,000 multiplied by the
3-16     number of locations, computed according to generally accepted
3-17     accounting principles, except that the applicant may not be
3-18     required to maintain a net worth of more than $1 million[, computed
3-19     according to generally accepted accounting principles]; and
3-20                 (6)  does not owe delinquent taxes, fines, or fees to
3-21     any local, state, or federal government or political subdivision of
3-22     the government.
3-23           SECTION 5.  Section 153.105, Finance Code, is amended to read
3-24     as follows:
3-25           Sec. 153.105.  OPERATING IN MORE THAN ONE LOCATION.  A
3-26     license holder may conduct currency exchange, transmission, or
3-27     transportation business at multiple locations in this state if each
 4-1     location, whether the location is owned and operated directly by
 4-2     the license holder or by a principal appointed by the license
 4-3     holder, is separately licensed pursuant to an application submitted
 4-4     in accordance with this chapter  [An applicant must submit a
 4-5     separate application for each location at which the business is to
 4-6     be operated].
 4-7           SECTION 6.  Section 153.109, Finance Code, is amended by
 4-8     adding Subsection (f) to read as follows:
 4-9           (f)  On application, the commissioner may, on a case-by-case
4-10     basis in the exercise of discretion, reduce the amount of the bond
4-11     or letter of credit required by Subsection (c) if the commissioner
4-12     finds that the amount of the reduced bond or letter of credit is
4-13     sufficient to protect the public interest.  In making a
4-14     determination under this subsection, the commissioner shall
4-15     consider:
4-16                 (1)  the nature and type of business the license holder
4-17     conducts;
4-18                 (2)  the nature and degree of liquidity in assets held
4-19     by the license holder in a corporate capacity;
4-20                 (3)  the competence, character, general fitness, and
4-21     experience of management;
4-22                 (4)  the extent and adequacy of internal controls
4-23     maintained by the license holder;
4-24                 (5)  the presence or absence of annual unqualified
4-25     audits by an independent certified public accountant; and
4-26                 (6)  the existence and adequacy of other insurance
4-27     obtained or held by the license holder to protect its customers.
 5-1           SECTION 7.  Sections 153.117(a) and (e), Finance Code, are
 5-2     amended to read as follows:
 5-3           (a)  The following persons are not required to be licensed
 5-4     under this chapter:
 5-5                 (1)  a federally insured financial institution, as that
 5-6     term is defined by state law governing bank holding companies and
 5-7     interstate bank operations, that is [bank, foreign bank agency,
 5-8     credit union, savings bank, or savings and loan association,
 5-9     whether] organized under the laws of this state, another state, or
5-10     [of] the United States;
5-11                 (2)  a foreign bank branch or agency in the United
5-12     States established under the federal International Banking Act of
5-13     1978 (12 U.S.C. Section 3101 et seq.), as amended;
5-14                 (3)  a license holder under Chapter 152, except that
5-15     the license holder is required to comply with the other provisions
5-16     of this chapter to the extent [unless] the license holder engages
5-17     in currency exchange, transportation, or transmission transactions;
5-18     [or]
5-19                 (4) [(3)]  a person registered as a securities dealer
5-20     under The Securities Act (Article 581-1 et seq., Vernon's Texas
5-21     Civil Statutes);
5-22                 (5)  an attorney or title company that in connection
5-23     with a real property transaction receives and disburses only
5-24     domestic currency on behalf of a party to the transaction;
5-25                 (6)  a Federal Reserve bank;
5-26                 (7)  a clearinghouse exercising bank payment,
5-27     collection, and clearing functions; or
 6-1                 (8)  another person that the commissioner may exempt by
 6-2     rule if the commissioner finds that the licensing of the person is
 6-3     not necessary or appropriate to achieve the objectives of this
 6-4     chapter.
 6-5           (e)  A person engaged in the business of currency
 6-6     transportation who is both a registered motor carrier under Chapter
 6-7     643, Transportation Code [Article 6675c, Revised Statutes], and a
 6-8     licensed armored car company or courier company under the Private
 6-9     Investigators and Private Security Agencies Act (Article
6-10     4413(29bb), Vernon's Texas Civil Statutes), is not required to be
6-11     licensed under this chapter.  This exemption [Registration under
6-12     Article 6675c] does not authorize the person to engage in the
6-13     business of currency exchange or transmission without a license
6-14     issued under this chapter.
6-15           SECTION 8.  Section 153.204, Finance Code, is amended to read
6-16     as follows:
6-17           Sec. 153.204.  PROHIBITED ACTIONS[; NOTICE AND MEETING].
6-18     [(a)]  The commissioner may take an action authorized under Section
6-19     153.407 if the commissioner finds that a person [shall give written
6-20     notice to and call a meeting with a license holder and the
6-21     offending principal of the license holder if the commissioner finds
6-22     that the principal or the license holder acting through an
6-23     authorized person]:
6-24                 (1)  violated or refused to comply with this chapter, a
6-25     rule adopted under this chapter, or any other law or regulation
6-26     applicable to a currency exchange, transportation, or transmission
6-27     business;
 7-1                 (2)  committed a fraudulent practice in conducting the
 7-2     holder's business;
 7-3                 (3)  refused to submit to an examination;
 7-4                 (4)  conducted business in an unsafe or unauthorized
 7-5     manner;
 7-6                 (5)  violated a condition of the license; or
 7-7                 (6)  violated a condition of an agreement with the
 7-8     commissioner or the department.
 7-9           [(b)  The notice must include a statement of the alleged
7-10     misconduct of the license holder or principal.]
7-11           [(c)  At the meeting, the commissioner shall state the
7-12     commissioner's findings and require the discontinuation of the
7-13     misconduct.]
7-14           SECTION 9.  Section 153.205(b), Finance Code, is amended to
7-15     read as follows:
7-16           (b)  The commissioner by rule may establish requirements
7-17     regarding content and [for] the size and type of lettering used in
7-18     an advertisement for prices or rates.
7-19           SECTION 10.  Section 153.301(a), Finance Code, is amended to
7-20     read as follows:
7-21           (a)  The commissioner periodically may examine the business
7-22     records of a license holder or any principal of the license holder
7-23     at the license holder's expense and may require a license holder
7-24     with  multiple locations in this state licensed in accordance with
7-25     Section 153.105 to make business records for all licensed locations
7-26     available for examination at a specified licensed location.
7-27           SECTION 11.  Section 153.305(c), Finance Code, is amended to
 8-1     read as follows:
 8-2           (c)  Information may be released under Subsection (b)(2) only
 8-3     to the parties to the hearing.  Information may be released under
 8-4     Subsection (b)(3) only to an agency, department, or instrumentality
 8-5     of this state, [or] another state, [or] the United States, or a
 8-6     foreign country or to a law enforcement agency of a municipality or
 8-7     political subdivision of this state or another state.
 8-8           SECTION 12.  Section 153.401, Finance Code, is amended by
 8-9     adding Subsection (c) to read as follows:
8-10           (c)  It is a defense to prosecution under this section if the
8-11     alleged violation was committed by a peace officer, as defined by
8-12     Article 2.12, Code of Criminal Procedure, or a person acting on
8-13     request of a peace officer with the intent to facilitate a
8-14     legitimate law enforcement investigation conducted under the laws
8-15     of this state.
8-16           SECTION 13.  Section 153.407, Finance Code, is amended to
8-17     read as follows:
8-18           Sec. 153.407.  CEASE AND DESIST ORDERS; SEIZURE ORDER.  (a)
8-19     The [At a meeting conducted under Section 153.204 or not later than
8-20     the 30th day after the date of the meeting, the] commissioner may
8-21     serve a written order on any person to cease and desist from a
8-22     violation or practice and require [requiring] any affirmative
8-23     action necessary to correct the conditions resulting from the
8-24     violation or practice if the commissioner determines that a cease
8-25     and desist order is necessary and in the public's best interest.
8-26     If the person is a license holder or a principal of a license
8-27     holder, the [The] commissioner shall serve the order on:
 9-1                 (1)  the license holder;
 9-2                 (2)  the board of directors of the license holder; and
 9-3                 (3)  any offending principal.
 9-4           (b)  A cease and desist order takes effect on issuance if the
 9-5     commissioner finds a threat of immediate and irreparable harm to
 9-6     the license holder or the public.  If the commissioner does not
 9-7     find a threat of immediate and irreparable harm, the order must
 9-8     state an effective date that is not before the 10th day after the
 9-9     date the order is received.
9-10           (c)  The order is final unless the license holder files a
9-11     notice of appeal with the commission not later than the 10th day
9-12     after the date the order is received.  The license holder shall
9-13     certify to the commissioner in writing that its directors and each
9-14     person named in the order have read and understood the order.
9-15           (d)  The commissioner may issue an order to seize the assets
9-16     and records that relate to a currency exchange, transmission, or
9-17     transportation business if the commissioner finds, by examination
9-18     or other credible evidence, that the currency exchange,
9-19     transmission, or transportation business has violated or refused to
9-20     comply with this chapter, a rule adopted under this chapter, or any
9-21     other law or regulation applicable to a currency exchange,
9-22     transportation, or transmission business.
9-23           (e)  The actions authorized by this section are in addition
9-24     to and not in lieu of other actions the commissioner considers
9-25     appropriate under applicable law, including action under Subchapter
9-26     C, Chapter 35.
9-27           SECTION 14.  Sections 153.003 and 153.108(c), Finance Code,
 10-1    are repealed.
 10-2          SECTION 15.  The importance of this legislation and the
 10-3    crowded condition of the calendars in both houses create an
 10-4    emergency and an imperative public necessity that the
 10-5    constitutional rule requiring bills to be read on three several
 10-6    days in each house be suspended, and this rule is hereby suspended,
 10-7    and that this Act take effect and be in force from and after its
 10-8    passage, and it is so enacted.