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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