1-1 By: Cuellar (Senate Sponsor - Sibley) H.B. No. 2320
1-2 (In the Senate - Received from the House April 23, 1999;
1-3 April 26, 1999, read first time and referred to Committee on
1-4 Economic Development; May 6, 1999, reported favorably by the
1-5 following vote: Yeas 5, Nays 0; May 6, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the licensing and regulation of currency exchange,
1-9 transmission, and transportation businesses.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 59.201(a), Finance Code, is amended to
1-12 read as follows:
1-13 (a) Subject to Chapter 153, a [A] person may install,
1-14 maintain, and operate one or more electronic terminals at any
1-15 location in this state for the convenience of customers of
1-16 depository institutions.
1-17 SECTION 2. Section 153.001, Finance Code, is amended by
1-18 amending Subdivisions (5), (6), (7), and (10) and by adding
1-19 Subdivision (11) to read as follows:
1-20 (5) "Currency exchange, transportation, or
1-21 transmission business" means engaging in or offering currency
1-22 exchange, transportation, or transmission as a service or for
1-23 profit.
1-24 (6) "Currency transmission" means receiving currency
1-25 or an instrument payable in currency to transmit the currency or
1-26 its equivalent by wire, computer modem, facsimile, or other
1-27 electronic means or through the use of a financial institution, a
1-28 financial intermediary, the federal reserve system, or another
1-29 funds transfer network.
1-30 (7) "Currency transportation" means receiving currency
1-31 or an instrument payable in currency to physically transport the
1-32 [transporting] currency or its equivalent from one location to
1-33 another by motor vehicle or other means of transportation or
1-34 through the use of the mail or a shipping, courier, or other
1-35 delivery service.
1-36 (10) "Instrument" has the meaning assigned by Section
1-37 3.104, Business & Commerce Code.
1-38 (11) "Principal" means a person who participates in
1-39 the affairs of a license holder or exercises supervisory duties,
1-40 including an owner, officer, director, partner, trustee, or agent
1-41 of the license holder.
1-42 SECTION 3. Section 153.002, Finance Code, is amended to read
1-43 as follows:
1-44 Sec. 153.002. RULES. The commission shall adopt rules
1-45 necessary or desirable to implement this chapter, including rules
1-46 regarding requirements for or conditions applicable to:
1-47 (1) [requirements for the] issuance, renewal, denial,
1-48 suspension, and revocation of a license; [and]
1-49 (2) recordkeeping and reporting [requirements] of a
1-50 license holder; and
1-51 (3) exemption from the licensing requirements of this
1-52 chapter.
1-53 SECTION 4. Section 153.102(d), Finance Code, is amended to
1-54 read as follows:
1-55 (d) An applicant for a license must demonstrate that the
1-56 applicant:
1-57 (1) has not during the preceding three years
1-58 [recklessly] failed to file or evaded the obligation to file a
1-59 currency transaction report as required by 31 U.S.C. Section 5313;
1-60 (2) has not during the preceding three years
1-61 [recklessly] accepted currency for exchange, transportation, or
1-62 transmission in which a part of the currency was derived from an
1-63 illegal transaction or activity;
1-64 (3) will conduct the currency exchange,
2-1 transportation, or transmission business according to state and
2-2 federal law;
2-3 (4) warrants the trust of the community;
2-4 (5) has and will maintain [for each location at which
2-5 currency is accepted for transmission] a minimum net worth of
2-6 $25,000 or, if the applicant will engage in currency transmission
2-7 transactions at multiple locations in this state in accordance with
2-8 Section 153.105, a minimum net worth of $25,000 multiplied by the
2-9 number of locations, computed according to generally accepted
2-10 accounting principles, except that the applicant may not be
2-11 required to maintain a net worth of more than $1 million[, computed
2-12 according to generally accepted accounting principles]; and
2-13 (6) does not owe delinquent taxes, fines, or fees to
2-14 any local, state, or federal government or political subdivision of
2-15 the government.
2-16 SECTION 5. Section 153.105, Finance Code, is amended to read
2-17 as follows:
2-18 Sec. 153.105. OPERATING IN MORE THAN ONE LOCATION. A
2-19 license holder may conduct currency exchange, transmission, or
2-20 transportation business at multiple locations in this state if each
2-21 location, whether the location is owned and operated directly by
2-22 the license holder or by a principal appointed by the license
2-23 holder, is separately licensed pursuant to an application submitted
2-24 in accordance with this chapter [An applicant must submit a
2-25 separate application for each location at which the business is to
2-26 be operated].
2-27 SECTION 6. Section 153.109, Finance Code, is amended by
2-28 adding Subsection (f) to read as follows:
2-29 (f) On application, the commissioner may, on a case-by-case
2-30 basis in the exercise of discretion, reduce the amount of the bond
2-31 or letter of credit required by Subsection (c) if the commissioner
2-32 finds that the amount of the reduced bond or letter of credit is
2-33 sufficient to protect the public interest. In making a
2-34 determination under this subsection, the commissioner shall
2-35 consider:
2-36 (1) the nature and type of business the license holder
2-37 conducts;
2-38 (2) the nature and degree of liquidity in assets held
2-39 by the license holder in a corporate capacity;
2-40 (3) the competence, character, general fitness, and
2-41 experience of management;
2-42 (4) the extent and adequacy of internal controls
2-43 maintained by the license holder;
2-44 (5) the presence or absence of annual unqualified
2-45 audits by an independent certified public accountant; and
2-46 (6) the existence and adequacy of other insurance
2-47 obtained or held by the license holder to protect its customers.
2-48 SECTION 7. Sections 153.117(a) and (e), Finance Code, are
2-49 amended to read as follows:
2-50 (a) The following persons are not required to be licensed
2-51 under this chapter:
2-52 (1) a federally insured financial institution, as that
2-53 term is defined by state law governing bank holding companies and
2-54 interstate bank operations, that is [bank, foreign bank agency,
2-55 credit union, savings bank, or savings and loan association,
2-56 whether] organized under the laws of this state, another state, or
2-57 [of] the United States;
2-58 (2) a foreign bank branch or agency in the United
2-59 States established under the federal International Banking Act of
2-60 1978 (12 U.S.C. Section 3101 et seq.), as amended;
2-61 (3) a license holder under Chapter 152, except that
2-62 the license holder is required to comply with the other provisions
2-63 of this chapter to the extent [unless] the license holder engages
2-64 in currency exchange, transportation, or transmission transactions;
2-65 [or]
2-66 (4) [(3)] a person registered as a securities dealer
2-67 under The Securities Act (Article 581-1 et seq., Vernon's Texas
2-68 Civil Statutes);
2-69 (5) an attorney or title company that in connection
3-1 with a real property transaction receives and disburses only
3-2 domestic currency on behalf of a party to the transaction;
3-3 (6) a Federal Reserve bank;
3-4 (7) a clearinghouse exercising bank payment,
3-5 collection, and clearing functions; or
3-6 (8) another person that the commissioner may exempt by
3-7 rule if the commissioner finds that the licensing of the person is
3-8 not necessary or appropriate to achieve the objectives of this
3-9 chapter.
3-10 (e) A person engaged in the business of currency
3-11 transportation who is both a registered motor carrier under Chapter
3-12 643, Transportation Code [Article 6675c, Revised Statutes], and a
3-13 licensed armored car company or courier company under the Private
3-14 Investigators and Private Security Agencies Act (Article
3-15 4413(29bb), Vernon's Texas Civil Statutes), is not required to be
3-16 licensed under this chapter. This exemption [Registration under
3-17 Article 6675c] does not authorize the person to engage in the
3-18 business of currency exchange or transmission without a license
3-19 issued under this chapter.
3-20 SECTION 8. Section 153.204, Finance Code, is amended to read
3-21 as follows:
3-22 Sec. 153.204. PROHIBITED ACTIONS[; NOTICE AND MEETING].
3-23 [(a)] The commissioner may take an action authorized under Section
3-24 153.407 if the commissioner finds that a person [shall give written
3-25 notice to and call a meeting with a license holder and the
3-26 offending principal of the license holder if the commissioner finds
3-27 that the principal or the license holder acting through an
3-28 authorized person]:
3-29 (1) violated or refused to comply with this chapter, a
3-30 rule adopted under this chapter, or any other law or regulation
3-31 applicable to a currency exchange, transportation, or transmission
3-32 business;
3-33 (2) committed a fraudulent practice in conducting the
3-34 holder's business;
3-35 (3) refused to submit to an examination;
3-36 (4) conducted business in an unsafe or unauthorized
3-37 manner;
3-38 (5) violated a condition of the license; or
3-39 (6) violated a condition of an agreement with the
3-40 commissioner or the department.
3-41 [(b) The notice must include a statement of the alleged
3-42 misconduct of the license holder or principal.]
3-43 [(c) At the meeting, the commissioner shall state the
3-44 commissioner's findings and require the discontinuation of the
3-45 misconduct.]
3-46 SECTION 9. Section 153.205(b), Finance Code, is amended to
3-47 read as follows:
3-48 (b) The commissioner by rule may establish requirements
3-49 regarding content and [for] the size and type of lettering used in
3-50 an advertisement for prices or rates.
3-51 SECTION 10. Section 153.301(a), Finance Code, is amended to
3-52 read as follows:
3-53 (a) The commissioner periodically may examine the business
3-54 records of a license holder or any principal of the license holder
3-55 at the license holder's expense and may require a license holder
3-56 with multiple locations in this state licensed in accordance with
3-57 Section 153.105 to make business records for all licensed locations
3-58 available for examination at a specified licensed location.
3-59 SECTION 11. Section 153.305(c), Finance Code, is amended to
3-60 read as follows:
3-61 (c) Information may be released under Subsection (b)(2) only
3-62 to the parties to the hearing. Information may be released under
3-63 Subsection (b)(3) only to an agency, department, or instrumentality
3-64 of this state, [or] another state, [or] the United States, or a
3-65 foreign country or to a law enforcement agency of a municipality or
3-66 political subdivision of this state or another state.
3-67 SECTION 12. Section 153.401, Finance Code, is amended by
3-68 adding Subsection (c) to read as follows:
3-69 (c) It is a defense to prosecution under this section if the
4-1 alleged violation was committed by a peace officer, as defined by
4-2 Article 2.12, Code of Criminal Procedure, or a person acting on
4-3 request of a peace officer with the intent to facilitate a
4-4 legitimate law enforcement investigation conducted under the laws
4-5 of this state.
4-6 SECTION 13. Section 153.407, Finance Code, is amended to
4-7 read as follows:
4-8 Sec. 153.407. CEASE AND DESIST ORDERS; SEIZURE ORDER.
4-9 (a) The [At a meeting conducted under Section 153.204 or not later
4-10 than the 30th day after the date of the meeting, the] commissioner
4-11 may serve a written order on any person to cease and desist from a
4-12 violation or practice and require [requiring] any affirmative
4-13 action necessary to correct the conditions resulting from the
4-14 violation or practice if the commissioner determines that a cease
4-15 and desist order is necessary and in the public's best interest.
4-16 If the person is a license holder or a principal of a license
4-17 holder, the [The] commissioner shall serve the order on:
4-18 (1) the license holder;
4-19 (2) the board of directors of the license holder; and
4-20 (3) any offending principal.
4-21 (b) A cease and desist order takes effect on issuance if the
4-22 commissioner finds a threat of immediate and irreparable harm to
4-23 the license holder or the public. If the commissioner does not
4-24 find a threat of immediate and irreparable harm, the order must
4-25 state an effective date that is not before the 10th day after the
4-26 date the order is received.
4-27 (c) The order is final unless the license holder files a
4-28 notice of appeal with the commission not later than the 10th day
4-29 after the date the order is received. The license holder shall
4-30 certify to the commissioner in writing that its directors and each
4-31 person named in the order have read and understood the order.
4-32 (d) The commissioner may issue an order to seize the assets
4-33 and records that relate to a currency exchange, transmission, or
4-34 transportation business if the commissioner finds, by examination
4-35 or other credible evidence, that the currency exchange,
4-36 transmission, or transportation business has violated or refused to
4-37 comply with this chapter, a rule adopted under this chapter, or any
4-38 other law or regulation applicable to a currency exchange,
4-39 transportation, or transmission business.
4-40 (e) The actions authorized by this section are in addition
4-41 to and not in lieu of other actions the commissioner considers
4-42 appropriate under applicable law, including action under Subchapter
4-43 C, Chapter 35.
4-44 SECTION 14. Sections 153.003 and 153.108(c), Finance Code,
4-45 are repealed.
4-46 SECTION 15. The importance of this legislation and the
4-47 crowded condition of the calendars in both houses create an
4-48 emergency and an imperative public necessity that the
4-49 constitutional rule requiring bills to be read on three several
4-50 days in each house be suspended, and this rule is hereby suspended,
4-51 and that this Act take effect and be in force from and after its
4-52 passage, and it is so enacted.
4-53 * * * * *