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By: Shapleigh, Lucio S.B. No. 1583
A BILL TO BE ENTITLED
AN ACT
relating to required information disclosures and cancellation
procedures concerning international currency exchange
transactions; providing a civil penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle Z, Title 3, Finance Code, is amended by
adding Chapter 278 to read as follows:
CHAPTER 278. REGULATION OF CURRENCY TRANSMISSIONS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 278.001. DEFINITIONS. In this chapter:
(1) "Currency" has the meaning assigned by Section
153.001.
(2) "Currency transmission business" means engaging
in or offering currency transmission as a service or for profit.
(3) "Currency transmission" means receiving currency
or an instrument payable in currency in order to transmit the
currency or its equivalent by wire, computer modem, facsimile,
physical transport, or any other means or through the use of a
financial intermediary, the Federal Reserve System, or another
funds transfer network.
(4) "Fee" does not include revenue that a currency
transmission business generates in connection with a currency
transmission in the conversion of a currency of one government into
the currency of another government.
[Sections 278.002-278.050 reserved for expansion]
SUBCHAPTER B. CURRENCY TRANSMISSION DISCLOSURES
Sec. 278.051. DISCLOSURES WITH TRANSACTION. (a) Other
than in a telephonic transaction conducted on a telephone that is
not designated for use in currency transmission transactions by a
currency transmission business, at the time of a currency
transmission transaction to another country the currency
transmission business shall provide a receipt to the customer. The
receipt must:
(1) clearly state the amount of currency presented for
transmission and any fees charged by the currency transmission
business; and
(2) provide a toll-free telephone number or a local
number that a customer can access at no charge to receive
information about a currency transmission.
(b) If the rate of exchange for a currency transmission to
be paid in the currency of another country is fixed by the currency
transmission business for a transaction at the time the currency
transmission is initiated, the receipt must also disclose:
(1) the rate of exchange for that transaction;
(2) the amount to be paid in the foreign currency; and
(3) the period, if any, in which the payment must be
made in order to qualify for the fixed rate of exchange.
(c) If the rate of exchange for a currency transmission to
be paid in the currency of another country is not fixed at the time
the currency transmission is initiated, the receipt must also
disclose that the rate of exchange for the transaction will be set
at the time the recipient of the currency transmission receives the
funds in the foreign country.
(d) If the customer requests, the currency transmission
business must provide the required disclosures before completing
the transaction.
Sec. 278.052. CANCELLATION AND REFUND OF TRANSACTION. (a)
Except as provided by Subsection (c), on receiving the transaction
receipt required under Section 278.051, a customer may cancel the
currency transaction:
(1) before leaving the premises of the currency
transmission business; and
(2) not later than 30 minutes after the time at which
the currency transmission was initiated.
(b) If the customer cancels the transaction, the currency
transmission business shall immediately refund to the customer the
fees paid and currency to be transmitted.
(c) A customer may not cancel a transaction after the
recipient of the currency transmission has received the currency or
its equivalent.
Sec. 278.053. LANGUAGE OF DISCLOSURE. A currency
transmission business shall make the disclosures required by this
chapter in English and, if the currency transmission is to a country
where Spanish is widely spoken, in Spanish.
[Sections 278.054-278.100 reserved for expansion]
SUBCHAPTER C. ENFORCEMENT
Sec. 278.101. CIVIL PENALTY. (a) 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 attorney
general or the prosecuting attorney in the county in which the
violation occurs may bring:
(1) a suit to recover the civil penalty imposed under
this section; and
(2) an action in the name of the state to restrain or
enjoin a person from violating this chapter.
(b) 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. This Act takes effect September 1, 2003.
COMMITTEE AMENDMENT NO. 1
Amend S.B. 1583 on page 1, line 14, by inserting after the
period "The term does not include a federally insured financial
institution, as defined by Section 201.101, that is organized under
the laws of this state, another state, or the United States."
78R15259 RCJ-F Riddle