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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of money services businesses. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 151.002(b)(3), Finance Code, is amended |
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to read as follows: |
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(3) "Bank Secrecy Act" means the Bank Secrecy Act (31 |
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U.S.C. Section 5311 et seq.), and its implementing regulations [set
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forth at 31 C.F.R. Part 103]. |
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SECTION 2. Section 151.104(a), Finance Code, is amended to |
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read as follows: |
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(a) The commissioner may conduct investigations in or |
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outside this state and the United States as the commissioner |
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considers necessary or appropriate to administer and enforce this |
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chapter, including investigations to: |
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(1) determine whether to approve an application for |
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[or renewal of] a license or a request for approval or exemption |
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filed under this chapter or a rule adopted or order issued under |
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this chapter; |
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(2) determine whether a person has violated or is |
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likely to violate this chapter or a rule adopted or order issued |
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under this chapter; |
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(3) determine whether a license or authorized delegate |
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designation should be revoked or suspended; |
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(4) otherwise aid in the enforcement of this chapter |
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or a rule adopted or order issued under this chapter; and |
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(5) aid in the adoption of rules or issuance of orders |
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under this chapter. |
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SECTION 3. Section 151.105, Finance Code, is amended by |
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adding Subsection (b-1) to read as follows: |
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(b-1) To efficiently and effectively administer and enforce |
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this chapter and to minimize regulatory burden, the commissioner |
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may cooperate, coordinate, and share information with an |
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organization the membership of which is made up of state or federal |
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governmental agencies described by Subsection (a). The |
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commissioner may: |
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(1) enter into a written cooperation, coordination, or |
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information-sharing contract or agreement with the organization; |
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and |
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(2) share information, provided that the organization |
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agrees in writing to maintain the confidentiality and security of |
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the shared information. |
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SECTION 4. Subchapter C, Chapter 151, Finance Code, is |
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amended by adding Section 151.2031 to read as follows: |
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Sec. 151.2031. USE OF NATIONWIDE MORTGAGE LICENSING SYSTEM |
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AND REGISTRY. (a) In this section, "Nationwide Mortgage Licensing |
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System and Registry" or "nationwide registry" means a licensing |
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system developed and maintained by the Conference of State Bank |
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Supervisors or an affiliated organization to manage mortgage |
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licenses and other financial services licenses, or a successor |
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registry. |
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(b) The commissioner may require that a person submit |
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through the Nationwide Mortgage Licensing System and Registry in |
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the form and manner prescribed by the commissioner and acceptable |
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to the registry any information or document or payment of a fee |
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required to be submitted under this chapter or rules adopted under |
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this chapter. |
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(c) The commissioner may use the nationwide registry as a |
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channeling agent for obtaining information required for licensing |
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purposes under this chapter or rules adopted under this chapter, |
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including: |
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(1) criminal history record information from the |
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Federal Bureau of Investigation, the United States Department of |
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Justice, or any other agency or entity at the commissioner's |
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discretion; |
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(2) information related to any administrative, civil, |
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or criminal findings by a governmental jurisdiction; and |
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(3) information requested by the commissioner under |
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Section 151.203(a)(3). |
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SECTION 5. The heading to Section 151.207, Finance Code, is |
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amended to read as follows: |
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Sec. 151.207. CONTINUATION [RENEWAL] OF LICENSE; ANNUAL |
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REPORT AND FEE. |
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SECTION 6. Sections 151.207(a), (b), (c), (d), (e), and |
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(f), Finance Code, are amended to read as follows: |
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(a) If a [Regardless of the date on which a license under
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this chapter is issued, the license expires on August 15 of each
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year unless the license is renewed in accordance with this section
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or is previously surrendered by the license holder or suspended or
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revoked by the commissioner.
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[(b) As a condition of renewal, a] license holder does not |
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[must] continue to meet [possess] the qualifications or [and] |
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satisfy the requirements that apply to an applicant for a new money |
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transmission license or currency exchange license, as applicable, |
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the commissioner may suspend or revoke the license holder's |
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license. |
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(b) In addition to complying with Subsection (a) |
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[Additionally, not later than July 1 of each year], a license holder |
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must annually: |
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(1) pay a license [an annual renewal] fee in an amount |
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established by commission rule; and |
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(2) submit a [renewal] report that is under oath, is in |
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the form and medium required by the commissioner, and contains: |
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(A) if the license is a money transmission |
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license, an audited unconsolidated financial statement dated as of |
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the last day of the license holder's fiscal year that ended in the |
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immediately preceding calendar year; |
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(B) if the license is a currency exchange |
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license, a financial statement, audited or unaudited, dated as of |
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the last day of the license holder's fiscal year that ended in the |
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immediately preceding calendar year; and |
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(C) documentation and certification, or any |
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other information the commissioner reasonably requires to |
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determine the security, net worth, permissible investments, and |
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other requirements the license holder must satisfy and whether the |
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license holder continues to meet the qualifications and |
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requirements for licensure. |
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(c) If the department does not receive a license holder's |
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annual license [renewal] fee and complete annual [renewal] report |
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on or before the due date prescribed by the commissioner under this |
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section [July 1], the commissioner shall notify the license holder |
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in writing that: |
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(1) the license holder shall [has until August 15 to] |
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submit the [renewal] report and pay the license [renewal] fee not |
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later than the 45th day after the due date prescribed by the |
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commissioner; and |
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(2) the license holder must pay a late fee, in an |
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amount that is established by commission rule and not subject to |
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appeal, for each business day after the report due date specified by |
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the commissioner [July 1] that the commissioner does not receive |
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the completed [renewal] report and license [renewal] fee. |
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(d) If the license holder fails to submit the completed |
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annual [renewal] report and pay the annual license [renewal] fee |
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and any late fee due within the time prescribed by Subsection |
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(c)(1), the license expires [effective 5 p.m. central daylight time
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on August 15], and the license holder must cease and desist from |
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engaging in the business of money transmission or currency |
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exchange, as applicable, as of that date [time]. The expiration of a |
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license is not subject to appeal. |
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(e) On timely receipt of a license holder's complete annual |
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[renewal] report, annual license [renewal] fee, and any late fee |
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due, the department shall review the report and, if necessary, |
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investigate the business and records of the license holder. On |
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completion of the review and investigation, if any, the |
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commissioner may: |
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(1) [renew the license;
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[(2)] impose conditions on the [renewal of the] |
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license the commissioner considers [may consider] reasonably |
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necessary or appropriate; or |
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(2) [(3)] suspend or revoke the license on the basis |
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of a ground specified in Section 151.703. |
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(f) On written application and for good cause shown, the |
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commissioner may extend the due date [time] for filing the annual |
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license fee and annual report required under this section. |
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SECTION 7. Section 151.208(c), Finance Code, is amended to |
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read as follows: |
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(c) The surrender of a license does not reduce or eliminate |
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a license holder's civil or criminal liability arising from any |
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acts or omissions before the surrender of the license, including |
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any administrative action undertaken by the commissioner to [deny
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the renewal of a license, to] revoke or suspend a license, to assess |
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an administrative penalty, to order the payment of restitution, or |
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to exercise any other authority under this chapter. Further, the |
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surrender of a license does not release the security required of the |
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license holder under Section 151.308 or 151.506. |
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SECTION 8. Section 151.209, Finance Code, is amended to |
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read as follows: |
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Sec. 151.209. REFUNDS. A fee or cost paid under this |
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chapter [in connection with an application or renewal] is not |
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refundable. |
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SECTION 9. Section 151.301(b)(8), Finance Code, is amended |
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to read as follows: |
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(8) "Stored value" means monetary value evidenced by |
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an electronic record that is prefunded and for which value is |
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reduced on each use. The term includes prepaid access as defined by |
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31 C.F.R. Section 1010.100(ww). The term does not include an |
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electronic record that is: |
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(A) loaded with points, miles, or other |
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nonmonetary value; [or] |
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(B) not sold to the public but distributed as a |
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reward or charitable donation; or |
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(C) redeemable only for goods or services from a |
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specified merchant or set of affiliated merchants, such as: |
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(i) a specified retailer or retail chain; |
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(ii) a set of affiliated companies under |
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common ownership; |
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(iii) a college campus; or |
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(iv) a mass transportation system. |
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SECTION 10. Section 151.306(b), Finance Code, is amended to |
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read as follows: |
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(b) The effective period for a temporary license may not |
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exceed 90 days from the date the license is issued, provided that |
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the commissioner may extend the period for not more than an |
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additional 90 [30] days if necessary to complete the processing of a |
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timely filed application for which approval is likely. |
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SECTION 11. Section 151.308(c), Finance Code, is amended to |
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read as follows: |
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(c) The security must: |
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(1) be in a form satisfactory to the commissioner; |
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(2) be payable to any claimant or to the commissioner, |
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on behalf of a claimant or this state, for any liability arising out |
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of the license holder's money transmission business in this state, |
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incurred under, subject to, or by virtue of this chapter; and |
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(3) [be conditioned on the faithful compliance of the
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license holder or the principals, responsible individuals,
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employees and authorized delegates of the license holder with this
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chapter or any rule adopted or order issued under this chapter; and
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[(4)] if the security is a bond, be issued by a |
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qualified surety company authorized to engage in business in this |
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state and acceptable to the commissioner or, if the security is an |
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irrevocable letter of credit, be issued by a financial institution |
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acceptable to the commissioner. |
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SECTION 12. Section 151.401, Finance Code, is amended to |
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read as follows: |
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Sec. 151.401. LIABILITY OF LICENSE HOLDER. A money |
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transmission license holder is liable for the payment of all money |
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or monetary value received for transmission [either] directly or by |
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[through] an authorized delegate appointed in accordance with |
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Section 151.402. |
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SECTION 13. Sections 151.402(e) and (f), Finance Code, are |
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amended to read as follows: |
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(e) A license holder must notify the license holder's |
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authorized delegates and require the delegates to take any action |
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required by the commissioner if [the license holder]: |
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(1) the license holder's license expired or is |
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surrendered or revoked [fails to renew the license holder's
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license]; or |
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(2) the license holder is subject to an emergency or |
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final order that affects the conduct of the license holder's |
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business through an authorized delegate. |
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(f) A license holder must maintain a current list of |
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authorized delegates located in this state or doing business with |
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persons located in this state that includes the name and business |
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address of each delegate and must provide the list to the |
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commissioner on request. A license holder that engages in business |
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through 11 or more authorized delegates located in this state must |
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include on the license holder's website a list of the names and |
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addresses of the authorized delegates of the license holder located |
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in this state and the delegates' business addresses. The license |
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holder must update the list quarterly. |
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SECTION 14. Section 151.501(b), Finance Code, is amended by |
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amending Subdivision (2) and adding Subdivision (3) to read as |
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follows: |
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(2) "Currency exchange" means: |
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(A) receiving [exchanging] the currency of one |
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government and exchanging it for the currency of another |
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government; or |
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(B) receiving a negotiable instrument and |
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exchanging it for the currency of another government. |
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(3) "Negotiable instrument" has the meaning assigned |
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by Section 3.104, Business & Commerce Code. |
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SECTION 15. Sections 151.603(a), (b), and (c), Finance |
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Code, are amended to read as follows: |
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(a) An applicant or license holder shall file a written |
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report with the commissioner not later than the 15th day after the |
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date the applicant or license holder knows or has reason to know of |
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a material change in the information reported in an application or |
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annual [renewal] report required under Section 151.207(b)(2). The |
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report must describe the change and the anticipated impact of the |
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change on the activities of the applicant or license holder in this |
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state. |
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(b) A money transmission license holder shall prepare |
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written reports and statements as follows: |
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(1) the annual [renewal] report required by Section |
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151.207(b)(2), including an audited unconsolidated financial |
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statement that is dated as of the last day of the license holder's |
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fiscal year that ended in the immediately preceding calendar year; |
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(2) a quarterly interim financial statement and report |
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regarding the permissible investments required to be maintained |
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under Section 151.309 that reflect the license holder's financial |
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condition and permissible investments as of the last day of the |
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calendar quarter to which the statement and report relate and that |
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are prepared not later than the 45th day after the last day of the |
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calendar quarter; and |
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(3) any other report required by rule of the |
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commission or reasonably requested by the commissioner to determine |
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compliance with this chapter. |
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(c) A currency exchange license holder shall prepare a |
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written report or statement as follows: |
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(1) the annual [renewal] report required by Section |
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151.207(b)(2), including a financial statement that may be audited |
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or unaudited and that is dated as of the last day of the license |
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holder's fiscal year that ended in the immediately preceding |
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calendar year; |
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(2) a quarterly interim financial statement and |
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transaction report that reflects the license holder's financial |
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condition and currency exchange business as of the last day of the |
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calendar quarter to which the statement and report relate and that |
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are prepared not later than the 45th day after the last day of the |
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calendar quarter; and |
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(3) any other report required by rule of the |
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commission or reasonably requested by the commissioner to determine |
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compliance with this chapter. |
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SECTION 16. Section 151.604(a), Finance Code, is amended to |
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read as follows: |
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(a) A license holder shall file a written report with the |
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commissioner not later than the 15th day after the date the license |
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holder knows or has reason to know of a material change in the |
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information reported in an application or annual [renewal] report |
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required under Section 151.207(b)(2). The report must describe |
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the change and the anticipated impact of the change on the license |
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holder's activities in this state. |
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SECTION 17. Section 278.001(1), Finance Code, is amended to |
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read as follows: |
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(1) "Currency" has the meaning assigned by Section |
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151.501 [153.001]. |
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SECTION 18. Section 278.053, Finance Code, is repealed. |
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SECTION 19. As soon as practicable after the effective date |
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of this Act, the Finance Commission of Texas shall adopt rules |
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necessary to implement the changes in law made by this Act. |
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SECTION 20. Section 151.104(a), Finance Code, as amended by |
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this Act, applies only to an investigation commenced on or after the |
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effective date of this Act. An investigation commenced before the |
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effective date of this Act is governed by the law in effect on the |
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date the investigation was commenced, and the former law is |
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continued in effect for that purpose. |
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SECTION 21. This Act takes effect September 1, 2013. |