By:  Shapleigh                                                    S.B. No. 1583
	(In the Senate - Filed March 14, 2003; March 20, 2003, read 
first time and referred to Committee on International Relations and 
Trade; April 8, 2003, reported adversely, with favorable Committee 
Substitute by the following vote:  Yeas 6, Nays 0; April 8, 2003, 
sent to printer.)


COMMITTEE SUBSTITUTE FOR S.B. No. 1583                                   By:  Shapleigh


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 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 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 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 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 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)  Where a 
transaction fee is advertised, a currency exchange service shall 
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)  This section applies to an 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 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 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.                           



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