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A BILL TO BE ENTITLED
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AN ACT
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relating to the fees charged by certain check-cashing businesses; |
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providing penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle E, Title 3, Finance Code, is amended by |
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adding Chapter 158 to read as follows: |
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CHAPTER 158. CHECK-CASHING BUSINESSES |
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Sec. 158.001. DEFINITIONS. In this chapter: |
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(1) "Check-cashing business" means a person in the |
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business of cashing checks for a fee, other than: |
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(A) a bank, savings and loan association, savings |
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bank, or credit union; |
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(B) a grocery or convenience store; or |
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(C) a person that cashes checks as an incident to |
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another business for a consideration of not more than 50 cents a |
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check. |
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(2) "Check-cashing service" means: |
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(A) the issuance, redemption, or cashing of a |
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two-party or multiparty check or similar negotiable instrument; or |
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(B) the sale, redemption, or cashing of a |
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travelers check, money order, or similar negotiable instrument by |
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an agent of the issuer of the instrument that is authorized to do |
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so. |
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(3) "Convenience store" means a retail establishment |
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that is primarily engaged in the retail sale of groceries and other |
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products and services, including: |
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(A) prepared foods; |
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(B) household items and toiletries; and |
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(C) gasoline and related automotive services. |
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(4) "Finance commission" means the Finance Commission |
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of Texas. |
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Sec. 158.002. MAXIMUM FEE. A check-cashing business may |
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charge a fee for providing a check-cashing service in an amount that |
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is not more than the greater of: |
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(1) $5 or two percent of the face value of the |
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instrument being cashed, if the instrument is issued by the federal |
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government, this state, or a municipality of this state; |
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(2) $5 or three percent of the face value of the |
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instrument being cashed, if the instrument is a payroll check or is |
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issued by a government not described by Subdivision (1); and |
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(3) $5 or 10 percent of the face value of the |
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instrument being cashed, if the instrument is a personal check or |
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for any other instrument. |
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Sec. 158.003. FINANCE COMMISSION RULES. The finance |
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commission may adopt rules necessary to implement this chapter. |
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Sec. 158.004. ADMINISTRATIVE PENALTY. (a) The finance |
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commission may impose an administrative penalty against a |
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check-cashing business that violates this chapter. |
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(b) The penalty for a violation may be in an amount not to |
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exceed $5,000. |
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(c) The amount of the penalty shall be based on: |
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(1) the seriousness of the violation, including the |
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nature, circumstances, extent, and gravity of any prohibited acts, |
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and the hazard or potential hazard created to the health, safety, or |
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welfare of the public; |
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(2) the history of any previous violations; |
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(3) the amount necessary to deter future violations; |
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(4) efforts to correct the violation; and |
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(5) any other matter that justice may require. |
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SECTION 2. This Act takes effect September 1, 2009. |