S.B. 1583 78(R)    BILL ANALYSIS


S.B. 1583
By: Shapleigh
Border and International Affairs
Committee Report (Amended)



BACKGROUND AND PURPOSE 

Currently, companies and institutions that offer remittance services
assist Texas immigrants to send money to family and friends in their
countries of origin. However, the available services do not provide
adequate posting of all fees and costs. Without disclosure of various fees
and charges, it is difficult for a person to compare one service to
another. As proposed, S.B. 1583 would require a currency exchange service
to disclose to consumers the currency exchange rate and fees or
commissions connected to transactions and additionally requires a currency
exchange service to post currency exchange rates and fees at all locations
where service are offered, and in announcements, advertisements and
solicitations.  

RULEMAKING AUTHORITY

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

ANALYSIS

SECTION 1. S.B. 1583 amends the Finance Code to require a financial
currency transmission business (business) to provide a receipt to a
customer at the time of a currency transmission (transmission) to another
country, if it is other than in a telephonic transaction conducted on a
telephone that is not designated for use in currency transmission
transactions by a business. The bill provides that the receipt must
clearly state the amount of currency presented for transmission and any
fees charged by the business and must provide a toll-free telephone number
or a local number that a customer can access at no charge to receive
information about transmission.   

S.B. 1583 provides that, if the rate of exchange is fixed by the business
for a transaction at the time the transmission is initiated, the receipt
must also disclose the rate of exchange for that transaction, the amount
to be paid in foreign currency, and the period, if any, in which the
payment must be made in order to qualify for the fixed rate of exchange.
The bill provides that, if the rate of exchange is not fixed, the receipt
must also disclose that the rate of exchange for the transaction will be
set at the time the recipient of the transmission receives the funds in
the foreign country. The bill also provides that, if the customer
requests, the business must provide the required disclosures before
completing the transaction.  

S.B. 1583 authorizes the customer, on receiving the transaction receipt,
to cancel the transaction before leaving the premises of the business or
not later than 30 minutes after the time at which the transmission was
initiated.  The bill requires the business, if the customer cancels the
transaction, to immediately refund the customer fees paid and currency to
be transmitted. The bill prohibits a customer from cancelling a
transaction after the recipient of the transmission has received the
currency or its equivalent. 

S.B. 1583 requires the business to make the disclosures in English and, if
the currency transmission is to a country where Spanish is widely spoken,
in Spanish.   

S.B. 1583 provides that a person who knowingly violates this chapter is
liable to the state for a civil penalty in an amount not to exceed $1,000
for each violation.  The bill authorizes the attorney general or
prosecuting attorney to bring a suit to recover the civil penalty imposed
under this section; and an action in the name of the state to restrain or
enjoin a person from violating this subchapter.  The attorney general or
prosecuting attorney is entitled to recover reasonable expenses incurred
in obtaining injunctive relief, civil penalties, or both, including
reasonable attorney's fees, court costs, and investigatory costs.  

SECTION 2. Effective date. 


EFFECTIVE DATE

September 1, 2003. 


EXPLANATION OF AMENDMENTS

The amendment specifies that the term "currency transmission business"
does not include a federally insured financial institution, as defined by
Section 201.101, Finance Code, that is organized under the laws of this
state, another state, or the United States."