80R445 CLG-F

By: West, Royce S.B. No. 104

A BILL TO BE ENTITLED

AN ACT

relating to the imposition of a fee for money transmissions sent to a destination outside the United States and to the use of the revenue for indigent health care purposes.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle Z, Title 3, Finance Code, is amended by adding Chapter 279 to read as follows: CHAPTER 279. MONEY TRANSMISSION FEE SUBCHAPTER A. GENERAL PROVISIONS

Sec. 279.001. DEFINITIONS. In this chapter:

(1) "Money" or "monetary value" has the meaning assigned by Section 151.301.

(2) "Money transmission" means receiving money or monetary value to transmit the money or monetary value by wire, computer modem, facsimile, or other electronic means or through the use of a financial institution, a financial intermediary, the federal reserve system, or another funds transfer network.

(3) "Money transmission business" means a person engaging in money transmission as a service or for profit. [Sections 279.002-279.050 reserved for expansion] SUBCHAPTER B. FEE ON CERTAIN MONEY TRANSMISSIONS

Sec. 279.051. FEE ON TRANSMISSIONS TO DESTINATIONS OUTSIDE THE UNITED STATES. (a) A money transmission business shall charge a fee on a money transmission that originates in this state and is transmitted to a destination outside the United States. The amount of the fee is the greater of:

(1) 50 cents; or

(2) one-half of one percent of the lesser of:

(A) $1,000; or

(B) the total amount sent by money transmission to a destination outside the United States.

(b) This section does not apply to money transmission resulting from the use of an automatic teller machine card from a location outside the United States.

(c) A money transmission business shall remit the fee required by this section to the comptroller each quarter in the manner prescribed by the comptroller.

(d) The comptroller shall adopt any necessary rules for the administration, payment, collection, remittance, and enforcement of the fee required by this section.

Sec. 279.052. TRUST ACCOUNT. The comptroller shall deposit the fees collected by the comptroller under this subchapter in trust in the separate suspense account of the county from which the fees were collected.

Sec. 279.053. DISTRIBUTION OF TRUST FUNDS. At least twice during each state fiscal year and at other times as often as feasible, the comptroller shall send to the county treasurer payable to the county the county's share of the fees collected by the comptroller under this subchapter.

Sec. 279.054. AMOUNTS RETAINED IN TRUST ACCOUNT. (a) The comptroller may retain in the suspense account of a county a portion of the county's share of the fee collected for the county under this subchapter, not to exceed five percent of the amount remitted to the county. If the fee is abolished or the law imposing the fee is repealed, the amount that may be retained may not exceed five percent of the final remittance to the county at the time of the termination of the collection of the fee.

(b) From the amounts retained in a county's suspense account, the comptroller may make refunds for overpayments to the account and to redeem dishonored checks and drafts deposited to the credit of the account.

Sec. 279.055. INTEREST ON FEE REVENUE. Interest earned on all deposits made with the comptroller under this subchapter, including interest earned from the suspense accounts retained under Section 279.054, shall be sent at least twice during each state fiscal year, and at other times as often as feasible, to each county treasurer payable to the appropriate county in proportion to that county's share of the fees collected by the comptroller under this subchapter.

Sec. 279.056. USE OF FEE REVENUE FOR INDIGENT HEALTH CARE. (a) Except as provided by Subsection (b) or (c), money received by a county under this subchapter is for the use and benefit of the county. The county shall use the money only for indigent health care purposes.

(b) If the county has a countywide hospital district, the money received by the county under this subchapter is received only for the use and benefit of the hospital district.

(c) If territory within the county is included in the boundaries of one or more hospital districts that are not countywide, the money received by the county under this subchapter must be:

(1) used only for indigent health care purposes; and

(2) allocated between the county and a hospital district located in the county according to the number of indigent persons served during the preceding calendar year by the county or a hospital district located in the county.

(d) Money received under this subchapter may be used or pledged as security for bonds or other obligations issued:

(1) by or on behalf of a hospital district for authorized purposes; or

(2) by a county for indigent health care purposes.

SECTION 2. The fees required under Subchapter B, Chapter 279, Finance Code, as added by this Act, apply only to money transmissions that occur on or after October 1, 2007.

SECTION 3. Not later than October 1, 2007, the comptroller shall adopt rules as necessary to implement Chapter 279, Finance Code, as added by this Act.

SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2007.