SRC-TAG C.S.S.B. 1583 78(R)    BILL ANALYSIS


Senate Research CenterC.S.S.B. 1583
78R10899 RCJ-DBy: Shapleigh
International Relations and Trade
4/3/2003
Committee Report (Substituted)

DIGEST 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.  C.S.S.B. 1583 adds Chapter 278 to Title 3Z of the Finance Code
to 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. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Title 3Z, Finance Code, by adding Chapter 278, as
follows: 

CHAPTER 278.  REGULATION OF CURRENCY EXCHANGE RATES
SUBCHAPTER A.  GENERAL PROVISIONS

Sec.  278.001.  DEFINITIONS.  Defines "currency," "currency exchange,"
"currency exchange service," "currency transmission," "financial
institution," "major destination," and "required disclosure." 

[Reserves Sections 278.002-278.050 for expansion.]

SUBCHAPTER B.  CURRENCY EXCHANGE DISCLOSURES

Sec.  278.051.  DISCLOSURE WITH TRANSACTION.  (a)  Requires a currency
exchange service, before completing a currency exchange transaction, to
disclose to the consumer each required disclosure relating to the foreign
country and the exact amount of foreign currency to be received by the
recipient in the foreign country. 
 
(b)  Requires a  currency exchange service to print the disclosure
information required by this section on each form or receipt used in a
currency transmission. 

Sec.  278.052.  POSTING OF DISCLOSURE.  Requires a  currency exchange
service to display prominently on the premises of each location where
currency exchange services are offered each required disclosure for each
major destination. 

Sec.  278.053.  DISCLOSURE IN ADVERTISEMENT.  (a)   Requires a currency
exchange service, where a transaction fee is advertised, to include the
corresponding exchange rate for a specified date for each major
destination that is specifically mentioned in an advertisement,
announcement, or solicitation to which this section applies. 

(b)  Provides that this section applies to an advertisement, announcement,
or  solicitation relating to currency transmission that is distributed by
mail or printed, broadcast, distributed by electronic media. or displayed
as part of an outdoor advertising display.  

Sec.  278.054.  LANGUAGE OF DISCLOSURE. Requires a currency exchange
service to make the disclosures required by this chapter in English,
Spanish, and in the same language as that principally used by a currency
exchange service, or any of its agents, to advertise, solicit, or
negotiate, whether orally or in writing, at a given location, if the
language is other than English or Spanish. 

[Reserves Sections 278.055-278.100 for expansion.]

SUBCHAPTER C. ENFORCEMENT

Sec.  278.101.  CIVIL PENALTY.  (a)  Provides that a person who violates
this chapter is liable to the state for a civil penalty in an amount not
to exceed $5,000 for each violation. Authorizes the attorney general or
the prosecuting attorney in the county in which the violation occurs to
take certain action. 

(b)  Provides that the attorney general or the prosecuting attorney in the
county in which the violation occurs, as appropriate, is entitled to
recover reasonable expenses incurred in obtaining injunctive relief, civil
penalties, or both, under this section, including reasonable attorney's
fees, court costs, and investigatory costs. 

SECTION 2.  Effective date: September 1, 2003.

SUMMARY OF COMMITTEE CHANGES

SECTION 1.  Differs from the original proposed bill by deleting the words
"financial institutions" throughout SECTION 1.  

Differs from the original bill in proposed Section 278.053 by  replacing
the phrase "each required disclosure" with "where a transaction fee is
advertised, a currency exchange service shall include the corresponding
exchange for specified date." 

Differs from original in proposed Section 278.053 by adding a new
Subsection (b).