By Cuellar H.B. No. 2320
76R7915 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 exchange,
3-14 transmission or transportation transactions at multiple locations
3-15 in this state in accordance with Section 153.105, a minimum net
3-16 worth of $25,000 multiplied by the number of locations, computed
3-17 according to generally accepted accounting principles, except that
3-18 the applicant may not be required to maintain a net worth of more
3-19 than $1 million[, computed according to generally accepted
3-20 accounting principles]; and
3-21 (6) does not owe delinquent taxes, fines, or fees to
3-22 any local, state, or federal government or political subdivision of
3-23 the government.
3-24 SECTION 5. Section 153.105, Finance Code, is amended to read
3-25 as follows:
3-26 Sec. 153.105. OPERATING IN MORE THAN ONE LOCATION. A
3-27 license holder may conduct currency exchange, transmission, or
4-1 transportation business at multiple locations in this state if each
4-2 location, whether the location is owned and operated directly by
4-3 the license holder or by a principal appointed by the license
4-4 holder, is separately licensed pursuant to an application submitted
4-5 in accordance with this chapter [An applicant must submit a
4-6 separate application for each location at which the business is to
4-7 be operated].
4-8 SECTION 6. Section 153.109, Finance Code, is amended by
4-9 adding Subsection (f) to read as follows:
4-10 (f) On application, the commissioner may, on a case-by-case
4-11 basis in the exercise of discretion, reduce the amount of the bond
4-12 or letter of credit required by Subsection (c) if the commissioner
4-13 finds that the amount of the reduced bond or letter of credit is
4-14 sufficient to protect the public interest. In making a
4-15 determination under this subsection, the commissioner shall
4-16 consider:
4-17 (1) the nature and type of business the license holder
4-18 conducts;
4-19 (2) the nature and degree of liquidity in assets held
4-20 by the license holder in a corporate capacity;
4-21 (3) the competence, character, general fitness, and
4-22 experience of management;
4-23 (4) the extent and adequacy of internal controls
4-24 maintained by the license holder;
4-25 (5) the presence or absence of annual unqualified
4-26 audits by an independent certified public accountant; and
4-27 (6) the existence and adequacy of other insurance
5-1 obtained or held by the license holder to protect its customers.
5-2 SECTION 7. Sections 153.117(a) and (e), Finance Code, are
5-3 amended to read as follows:
5-4 (a) The following persons are not required to be licensed
5-5 under this chapter:
5-6 (1) a federally insured financial institution, as that
5-7 term is defined by state law governing bank holding companies and
5-8 interstate bank operations, that is [bank, foreign bank agency,
5-9 credit union, savings bank, or savings and loan association,
5-10 whether] organized under the laws of this state, another state, or
5-11 [of] the United States;
5-12 (2) a foreign bank branch or agency in the United
5-13 States established under the federal International Banking Act of
5-14 1978 (12 U.S.C. Section 3101 et seq.), as amended;
5-15 (3) a license holder under Chapter 152, except that
5-16 the license holder is required to comply with the other provisions
5-17 of this chapter to the extent [unless] the license holder engages
5-18 in currency exchange, transportation, or transmission transactions;
5-19 [or]
5-20 (4) [(3)] a person registered as a securities dealer
5-21 under The Securities Act (Article 581-1 et seq., Vernon's Texas
5-22 Civil Statutes);
5-23 (5) an attorney or title company that in connection
5-24 with a real property transaction receives and disburses only
5-25 domestic currency on behalf of a party to the transaction;
5-26 (6) a Federal Reserve bank;
5-27 (7) a clearinghouse exercising bank payment,
6-1 collection, and clearing functions; or
6-2 (8) another person that the commissioner may exempt by
6-3 rule if the commissioner finds that the licensing of the person is
6-4 not necessary or appropriate to achieve the objectives of this
6-5 chapter.
6-6 (e) A person engaged in the business of currency
6-7 transportation who is both a registered motor carrier under Chapter
6-8 643, Transportation Code [Article 6675c, Revised Statutes], and a
6-9 licensed armored car company or courier company under the Private
6-10 Investigators and Private Security Agencies Act (Article
6-11 4413(29bb), Vernon's Texas Civil Statutes), is not required to be
6-12 licensed under this chapter. This exemption [Registration under
6-13 Article 6675c] does not authorize the person to engage in the
6-14 business of currency exchange or transmission without a license
6-15 issued under this chapter.
6-16 SECTION 8. Section 153.204, Finance Code, is amended to read
6-17 as follows:
6-18 Sec. 153.204. PROHIBITED ACTIONS[; NOTICE AND MEETING].
6-19 [(a)] The commissioner may take an action authorized under Section
6-20 153.407 if the commissioner finds that a person [shall give written
6-21 notice to and call a meeting with a license holder and the
6-22 offending principal of the license holder if the commissioner finds
6-23 that the principal or the license holder acting through an
6-24 authorized person]:
6-25 (1) violated or refused to comply with this chapter, a
6-26 rule adopted under this chapter, or any other law or regulation
6-27 applicable to a currency exchange, transportation, or transmission
7-1 business;
7-2 (2) committed a fraudulent practice in conducting the
7-3 holder's business;
7-4 (3) refused to submit to an examination;
7-5 (4) conducted business in an unsafe or unauthorized
7-6 manner;
7-7 (5) violated a condition of the license; or
7-8 (6) violated a condition of an agreement with the
7-9 commissioner or the department.
7-10 [(b) The notice must include a statement of the alleged
7-11 misconduct of the license holder or principal.]
7-12 [(c) At the meeting, the commissioner shall state the
7-13 commissioner's findings and require the discontinuation of the
7-14 misconduct.]
7-15 SECTION 9. Section 153.205(b), Finance Code, is amended to
7-16 read as follows:
7-17 (b) The commissioner by rule may establish requirements
7-18 regarding content and [for] the size and type of lettering used in
7-19 an advertisement for prices or rates.
7-20 SECTION 10. Section 153.301(a), Finance Code, is amended to
7-21 read as follows:
7-22 (a) The commissioner periodically may examine the business
7-23 records of a license holder or any principal of the license holder
7-24 at the license holder's expense and may require a license holder
7-25 with multiple locations in this state licensed in accordance with
7-26 Section 153.105 to make business records for all licensed locations
7-27 available for examination at a specified licensed location.
8-1 SECTION 11. Section 153.305(c), Finance Code, is amended to
8-2 read as follows:
8-3 (c) Information may be released under Subsection (b)(2) only
8-4 to the parties to the hearing. Information may be released under
8-5 Subsection (b)(3) only to an agency, department, or instrumentality
8-6 of this state, [or] another state, [or] the United States, or a
8-7 foreign country or to a law enforcement agency of a municipality or
8-8 political subdivision of this state or another state.
8-9 SECTION 12. Section 153.401, Finance Code, is amended by
8-10 adding Subsection (c) to read as follows:
8-11 (c) It is a defense to prosecution under this section if the
8-12 alleged violation was committed by a peace officer, as defined by
8-13 Article 2.12, Code of Criminal Procedure, or a person acting on
8-14 request of a police officer with the intent to facilitate a
8-15 legitimate law enforcement investigation conducted under the laws
8-16 of this state.
8-17 SECTION 13. Section 153.407, Finance Code, is amended to
8-18 read as follows:
8-19 Sec. 153.407. CEASE AND DESIST ORDERS; SEIZURE ORDER. (a)
8-20 The [At a meeting conducted under Section 153.204 or not later than
8-21 the 30th day after the date of the meeting, the] commissioner may
8-22 serve a written order on any person to cease and desist from a
8-23 violation or practice and require [requiring] any affirmative
8-24 action necessary to correct the conditions resulting from the
8-25 violation or practice if the commissioner determines that a cease
8-26 and desist order is necessary and in the public's best interest.
8-27 If the person is a license holder or a principal of a license
9-1 holder, the [The] commissioner shall serve the order on:
9-2 (1) the license holder;
9-3 (2) the board of directors of the license holder; and
9-4 (3) any offending principal.
9-5 (b) A cease and desist order takes effect on issuance if the
9-6 commissioner finds a threat of immediate and irreparable harm to
9-7 the license holder or the public. If the commissioner does not
9-8 find a threat of immediate and irreparable harm, the order must
9-9 state an effective date that is not before the 10th day after the
9-10 date the order is received.
9-11 (c) The order is final unless the license holder files a
9-12 notice of appeal with the commission not later than the 10th day
9-13 after the date the order is received. The license holder shall
9-14 certify to the commissioner in writing that its directors and each
9-15 person named in the order have read and understood the order.
9-16 (d) The commissioner may issue an order to seize the assets
9-17 and records that relate to a currency exchange, transmission, or
9-18 transportation business if the commissioner finds, by examination
9-19 or other credible evidence, that the currency exchange,
9-20 transmission, or transportation business has violated or refused to
9-21 comply with this chapter, a rule adopted under this chapter, or any
9-22 other law or regulation applicable to a currency exchange,
9-23 transportation, or transmission business.
9-24 (e) The actions authorized by this section are in addition
9-25 to and not in lieu of other actions the commissioner considers
9-26 appropriate under applicable law, including action under Subchapter
9-27 C, Chapter 35.
10-1 SECTION 14. Sections 153.003 and 153.108(c), Finance Code,
10-2 are repealed.
10-3 SECTION 15. The importance of this legislation and the
10-4 crowded condition of the calendars in both houses create an
10-5 emergency and an imperative public necessity that the
10-6 constitutional rule requiring bills to be read on three several
10-7 days in each house be suspended, and this rule is hereby suspended,
10-8 and that this Act take effect and be in force from and after its
10-9 passage, and it is so enacted.