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78R6484 RCJ-D
By: Shapleigh S.B. No. 1583
A BILL TO BE ENTITLED
AN ACT
relating to information concerning currency exchange rates in
international transfers of money; 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 EXCHANGE RATES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 278.001. DEFINITIONS. In this chapter:
(1) "Currency" has the meaning assigned by Section
153.001.
(2) "Currency exchange" has the meaning assigned by
Section 153.001.
(3) "Currency exchange service" means engaging in or
offering currency exchange or transmission as a service or for
profit.
(4) "Currency transmission" means receiving currency
or an instrument payable in currency 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 institution, a
financial intermediary, the Federal Reserve System, or another
funds transfer network.
(5) "Financial institution" has the meaning assigned
by Section 201.101.
(6) "Major destination" means the United Mexican
States or any other country with which transactions comprise 10
percent or more of the currency transmission business generated by
a financial institution or currency exchange service in the
previous calendar year.
(7) "Required disclosure" means:
(A) all currency exchange services offered;
(B) the exchange rate used by the financial
institution or currency exchange service in connection with a
transaction;
(C) the exchange rate prevailing on the close of
business on the immediately preceding business day at a major
financial center or central bank of the foreign country;
(D) any commission or fees charged in connection
with a transaction; and
(E) a list of locations in the foreign country
where the recipient may collect the transfer, including a printed
sheet or brochure containing the list that the consumer may retain.
[Sections 278.002-278.050 reserved for expansion]
SUBCHAPTER B. CURRENCY EXCHANGE DISCLOSURES
Sec. 278.051. DISCLOSURE WITH TRANSACTION. (a) Before
completing a currency exchange transaction, the financial
institution or currency exchange service shall disclose to the
consumer:
(1) each required disclosure relating to the foreign
country; and
(2) the exact amount of foreign currency to be
received by the recipient in the foreign country.
(b) A financial institution or currency exchange service
shall print the disclosure information required by this section on
each form or receipt used in a currency transmission.
Sec. 278.052. POSTING OF DISCLOSURE. A financial
institution or currency exchange service shall prominently display
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 financial
institution or currency exchange service shall include each
required disclosure for each major destination in each
advertisement, announcement, or solicitation relating to currency
transmissions that is:
(1) distributed by mail; or
(2) printed, broadcast, distributed by electronic
media, or displayed as part of an outdoor advertising display.
Sec. 278.054. LANGUAGE OF DISCLOSURE. A financial
institution or currency exchange service shall make the disclosures
required by this chapter in English, Spanish, and in the same
language as that principally used by a financial institution or
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.
[Sections 278.055-278.100 reserved for expansion]
SUBCHAPTER C. ENFORCEMENT
Sec. 278.101. CIVIL PENALTY. (a) 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. The attorney general or
the prosecuting attorney in the county in which the violation
occurs may bring:
(1) 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.