By: Capriglione, Parker H.B. No. 2458
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the operation and administration of the Texas Bullion
  Depository.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 151.002(a), Finance Code, is amended to
  read as follows:
         (a)  This section defines general terms that apply to an
  applicant for or holder of a money services license issued under
  this chapter, regardless of whether the license is a money
  transmission license or [,] a currency exchange license[, or a
  depository agent license]. Additional terms that apply
  specifically to money transmission are defined in Section
  151.301.  Additional terms that apply specifically to currency
  exchange are defined in Section 151.501. [Additional terms that
  apply specifically to depository agents are defined in Section
  151.851.]
         SECTION 2.  Sections 151.002(b)(11) and (14), Finance Code,
  are amended to read as follows:
               (11)  "License holder" means a person that holds a
  money transmission license or[,] a currency exchange license[, or a
  depository agent license].
               (14)  "Money services" means money transmission or[,]
  currency exchange[, or depository agent] services.
         SECTION 3.  Section 151.003, Finance Code, is amended to
  read as follows:
         Sec. 151.003.  EXCLUSIONS. The [Subject to Subchapter J,
  the] following persons are not required to be licensed under this
  chapter:
               (1)  the United States or an instrumentality of the
  United States, including the United States Post Office or a
  contractor acting on behalf of the United States Post Office;
               (2)  a state or an agency, political subdivision, or
  other instrumentality of a state;
               (3)  a federally insured financial institution, as that
  term is defined by Section 201.101, that is organized under the laws
  of this state, another state, or the United States;
               (4)  a foreign bank branch or agency in the United
  States established under the federal International Banking Act of
  1978 (12 U.S.C. Section 3101 et seq.);
               (5)  a person acting as an agent for an entity excluded
  under Subdivision (3) or (4), to the extent of the person's actions
  in that capacity, provided that:
                     (A)  the entity is liable for satisfying the money
  services obligation owed to the purchaser on the person's receipt
  of the purchaser's money; and
                     (B)  the entity and person enter into a written
  contract that appoints the person as the entity's agent and the
  person acts only within the scope of authority conferred by the
  contract;
               (6)  a person that, on behalf of the United States or a
  department, agency, or instrumentality of the United States, or a
  state or county, city, or any other governmental agency or
  political subdivision of a state, provides electronic funds
  transfer services of governmental benefits for a federal, state,
  county, or local governmental agency;
               (7)  a person that acts as an intermediary on behalf of
  and at the direction of a license holder in the process by which the
  license holder, after receiving money or monetary value from a
  purchaser, either directly or through an authorized delegate,
  transmits the money or monetary value to the purchaser's designated
  recipient, provided that the license holder is liable for
  satisfying the obligation owed to the purchaser;
               (8)  an attorney or title company that in connection
  with a real property transaction receives and disburses domestic
  currency or issues an escrow or trust fund check only on behalf of a
  party to the transaction;
               (9)  a person engaged in the business of currency
  transportation who is both a registered motor carrier under Chapter
  643, Transportation Code, and a licensed armored car company or
  courier company under Chapter 1702, Occupations Code, provided that
  the person:
                     (A)  only transports currency:
                           (i)  from a person to the same person at
  another location;
                           (ii)  from a person to a financial
  institution to be deposited in an account belonging to the same
  person; or
                           (iii)  to a person from a financial
  institution after being withdrawn from an account belonging to the
  same person; and
                     (B)  does not otherwise engage in the money
  transmission or currency exchange business [or depository agent
  services business] without a license issued under this chapter;
               (9-a)  a trust company, as defined by Section
  187.001(a), that is organized under the laws of this state; and
               (10)  any other person, transaction, or class of
  persons or transactions exempted by commission rule or any other
  person or transaction exempted by the commissioner's order on a
  finding that the licensing of the person is not necessary to achieve
  the purposes of this chapter.
         SECTION 4.  Section 151.201, Finance Code, is amended to
  read as follows:
         Sec. 151.201.  SCOPE. This subchapter sets out the general
  qualifications and provisions that apply to a money services
  license, regardless of whether the license is a money transmission
  license or [,] a currency exchange license[, or a depository agent
  license]. Subchapters D and E set forth the additional
  qualifications and provisions that apply specifically to a money
  transmission license. Subchapter F sets forth the additional
  qualifications and provisions that apply specifically to a currency
  exchange license. [Subchapter J sets forth the additional
  qualifications and provisions that apply specifically to a
  depository agent license.]
         SECTION 5.  Sections 151.207(a), (b), and (d), Finance Code,
  are amended to read as follows:
         (a)  If a license holder does not continue to meet the
  qualifications or satisfy the requirements that apply to an
  applicant for a new money transmission license or [,] currency
  exchange license, [or depository agent license,] as applicable, the
  commissioner may suspend or revoke the license holder's license.
         (b)  In addition to complying with Subsection (a), a license
  holder must annually:
               (1)  pay a license fee in an amount established by
  commission rule; and
               (2)  submit a report that is under oath, is in the form
  and medium required by the commissioner, and contains:
                     (A)  if the license is a money transmission
  license [or depository agent license], an audited unconsolidated
  financial statement dated as of the last day of the license holder's
  fiscal year that ended in the immediately preceding calendar year;
                     (B)  if the license is a currency exchange
  license, a financial statement, audited or unaudited, dated as of
  the last day of the license holder's fiscal year that ended in the
  immediately preceding calendar year; and
                     (C)  documentation and certification, or any
  other information the commissioner reasonably requires to
  determine the security, net worth, permissible investments, and
  other requirements the license holder must satisfy and whether the
  license holder continues to meet the qualifications and
  requirements for licensure.
         (d)  If the license holder fails to submit the completed
  annual report and pay the annual license fee and any late fee due
  within the time prescribed by Subsection (c)(1), the license
  expires, and the license holder must cease and desist from engaging
  in the business of money transmission or [,] currency exchange, [or
  depository agent services,] as applicable, as of that date. The
  expiration of a license is not subject to appeal.
         SECTION 6.  Section 151.302(a), Finance Code, as amended by
  Chapters 75 (S.B. 899) and 1000 (H.B. 483), Acts of the 84th
  Legislature, Regular Session, 2015, is reenacted to read as
  follows:
         (a)  A person may not engage in the business of money
  transmission in this state or advertise, solicit, or represent that
  the person engages in the business of money transmission in this
  state unless the person:
               (1)  is licensed under this subchapter;
               (2)  is an authorized delegate of a person licensed
  under this subchapter, appointed by the license holder in
  accordance with Section 151.402;
               (3)  is excluded from licensure under Section 151.003;
  or
               (4)  has been granted an exemption under Subsection
  (c).
         SECTION 7.  Section 151.502(a), Finance Code, is amended to
  read as follows:
         (a)  A person may not engage in the business of currency
  exchange or advertise, solicit, or hold itself out as providing
  currency exchange unless the person:
               (1)  is licensed under this subchapter;
               (2)  is licensed for money transmission under
  Subchapter D;
               (3)  is an authorized delegate of a person licensed for
  money transmission under Subchapter D;
               (4)  is excluded under Section 151.003; or
               (5)  [is licensed as a depository agent under
  Subchapter J and only engages in the business of currency exchange
  in connection with, and to the extent necessary for, the
  performance of depository agent activities; or
               [(6)]  has been granted an exemption under Subsection
  (d).
         SECTION 8.  Section 151.602(a), Finance Code, is amended to
  read as follows:
         (a)  A license holder must prepare, maintain, and preserve
  the following books, accounts, and other records for at least five
  years or another period as may be prescribed by rule of the
  commission:
               (1)  a record of each money transmission transaction or
  [,] currency exchange transaction, [or depository agent services
  transaction,] as applicable;
               (2)  a general ledger posted in accordance with
  generally accepted accounting principles containing all asset,
  liability, capital, income, and expense accounts, unless directed
  otherwise by the commissioner;
               (3)  bank statements and bank reconciliation records;
               (4)  all records and reports required by applicable
  state and federal law, including the reporting and recordkeeping
  requirements imposed by the Bank Secrecy Act, the USA PATRIOT ACT,
  and Chapter 271, and other federal and state laws pertaining to
  money laundering, drug trafficking, or terrorist funding; and
               (5)  any other records required by commission rule or
  reasonably requested by the commissioner to determine compliance
  with this chapter.
         SECTION 9.  Section 2116.001, Government Code, is amended by
  amending Subdivision (9) and adding Subdivision (9-a) to read as
  follows:
               (9)  "Depository agent" means a financial institution
  that has entered into an agreement with the depository to provide a
  retail location for the provision of depository services to the
  general public on behalf of [person licensed in accordance with
  this chapter to serve as an intermediary between] the depository
  [and a retail customer in making a transaction in precious metals
  bullion or specie].
               (9-a)  "Financial institution" has the meaning
  assigned by Section 201.101, Finance Code.
         SECTION 10.  Section 2116.002, Government Code, is amended
  by adding Subsection (c) to read as follows:
         (c)  The comptroller shall adopt rules necessary to carry out
  this chapter.
         SECTION 11.  Section 2116.003, Government Code, is amended
  by amending Subsection (c) and adding Subsection (d) to read as
  follows:
         (c)  The administrator may appoint or employ, subject to the
  approval of the comptroller, a deputy administrator or other
  subordinate officers or employees [officer] as necessary and
  appropriate to the efficient administration of the depository.
         (d)  The comptroller may employ security officers to provide
  needed security services for the depository and may commission the
  officers as peace officers.
         SECTION 12.  Sections 2116.005(c) and (d), Government Code,
  are amended to read as follows:
         (c)  The comptroller [by rule] shall adopt standards by which
  the quantities of precious metals deposited are credited to a
  depositor's depository account by reference to the particular form
  in which the metals were deposited, classified by mint,
  denomination, weight, assay mark, or other indicator, as
  applicable.  The standards must conform to applicable national and
  international standards of weights and measures.
         (d)  The comptroller [by rule] may, if the comptroller
  determines that to do so is in the public interest, restrict the
  forms in which deposits of precious metals may be made [to those
  forms that conveniently lend themselves to measurement and
  accounting in units of troy ounces and standardized fractions of
  troy ounces].
         SECTION 13.  Sections 2116.006(b) and (c), Government Code,
  are amended to read as follows:
         (b)  The depository shall make a delivery described by
  Subsection (a) on demand by the presentment of a written demand
  [suitable check, draft,] or digital electronic instruction to the
  depository or a depository agent.  The comptroller may prescribe
  [by rule shall adopt] the forms, standards, and processes through
  which an order for delivery on demand may be made, presented, and
  honored.
         (c)  The depository shall make a delivery at the depository's
  settlement facility designated by the comptroller, shipping to an
  address specified by the account holder or, at the depository's
  discretion, at a facility of a depository agent at which
  presentment is made, not later than 10 [five] business days after
  the date of presentment.
         SECTION 14.  Section 2116.007, Government Code, is amended
  to read as follows:
         Sec. 2116.007.  TRANSFER OF DEPOSITORY ACCOUNT BALANCE.  (a)  
  In accordance with rules adopted under this chapter, a depository
  account holder may transfer any portion of the balance of the
  holder's depository account by written demand [check, draft,] or
  digital electronic instruction to another person [depository
  account holder or to a person who at the time the transfer is
  initiated is not a depository account holder].
         (b)  The depository shall adjust the depository account
  balances of the depository accounts to reflect a transfer
  transaction between depository account holders on presentment of
  the written demand [check, draft,] or other instruction by reducing
  the payor's depository account balance and increasing the
  depository account balance of the payee accordingly.
         (c)  If a depository account holder transfers to a payee who
  is not a depository account holder any portion of the balance of the
  depository account holder's depository account, the depository
  shall, if the payee is otherwise eligible to open a depository
  account under applicable laws and depository policy, allow the
  payee to establish a depository account [by presentment of the
  payor's check, draft, or instruction to the depository or to a
  depository agent].  The depository shall credit a newly
  established account on behalf of the payee and shall debit the
  payor's account accordingly.
         SECTION 15.  Sections 2116.008(c) and (e), Government Code,
  are amended to read as follows:
         (c)  The depository [or a depository agent] shall hold the
  contract for a depository account in the records pertaining to the
  account.
         (e)  The depository and the depository account holder may
  amend a contract for a depository account by agreement, or the
  depository may amend the deposit contract by providing [mailing a]
  written notice of the amendment to the account holder, separately
  or as an enclosure with or part of the account holder's statement of
  account or passbook. In the case of amendment by notice from the
  depository, the notice must include the text and effective date of
  the amendment. The notice may be provided electronically. The
  effective date may not be earlier than the 30th day after the date
  the notice is mailed, unless otherwise provided by rules adopted
  under this chapter.
         SECTION 16.  Section 2116.010, Government Code, is amended
  to read as follows:
         Sec. 2116.010.  FEES; SERVICE CHARGES; PENALTIES. The
  comptroller [by rule] may establish fees, service charges, and
  penalties to be charged a depository account holder for a service or
  activity regarding a depository account, including a fee for an
  overdraft, an insufficient fund check or draft, or a stop payment
  order. The comptroller may waive any fees, service charges, or
  penalties established under this section.
         SECTION 17.  Section 2116.021, Government Code, is amended
  to read as follows:
         Sec. 2116.021.  TRANSACTIONS AND RELATIONSHIPS; MARKETING
  AND PUBLICITY. (a) The depository may [shall] enter into
  transactions and relationships with bullion banks, depositories,
  dealers, central banks, sovereign wealth funds, financial
  institutions, international nongovernmental organizations, and
  other persons, located inside or outside of this state or inside or
  outside of the United States, as the comptroller determines to be
  prudent and suitable to facilitate the operations of the depository
  and to further the purposes of this chapter.
         (b)  The depository may advertise and promote the depository
  in any available media.
         (c)  The depository may issue, sell, license for sale, or
  obtain a license to sell promotional items approved by the
  administrator to further the purposes of this chapter and to
  promote the depository. The depository may set commercially
  reasonable prices for items licensed or sold under this section.
         
         SECTION 18.  Section 2116.023, Government Code, is amended
  by adding Subsection (d) to read as follows:
         (d)  The depository shall refer any matter relating to an
  action described by Subsection (a) to the attorney general for
  resolution.
         SECTION 19.  Section 2116.024, Government Code, is amended
  to read as follows:
         Sec. 2116.024.  OFFICIAL EXCHANGE RATES. The comptroller
  [by rule] shall establish the references by which the official
  exchange rate for pricing precious metals transactions in terms of
  United States dollars or other currency must be established at the
  time of a depository transaction. The comptroller shall establish
  procedures and facilities through which the rates are made
  discoverable at all reasonable times by system participants, both
  on a real-time basis and retrospectively.
         SECTION 20.  Section 2116.025, Government Code, is amended
  to read as follows:
         Sec. 2116.025.  FACILITATION OF ACCOUNTING AND REPORTING OF
  TAXABLE GAINS. The comptroller [by rule] shall establish
  procedures and requirements for the depository and depository
  agents designed to minimize the burden to system participants of
  accounting for and reporting taxable gains and losses arising out
  of depository transactions as denominated in United States dollars
  or another currency.
         SECTION 21.  Subchapter A, Chapter 2116, Government Code, is
  amended by adding Section 2116.027 to read as follows:
         Sec. 2116.027.  CONFIDENTIALITY OF RECORDS; OTHER RECORDS
  EXEMPT FROM DISCLOSURE. (a) Records relating to individual
  depository accounts or depository account holders, including
  current, former, or prospective depository account holders, that
  are in the custody of the depository or a vendor performing services
  related to the depository are confidential and exempt from
  disclosure under Chapter 552.
         (b)  The following information of the depository is excepted
  from the requirements of Section 552.021:
               (1)  records and other information related to the
  security of the depository;
               (2)  records related to the method of setting the
  depository's fees, service charges, penalties, and other charges or
  payments; and
               (3)  commercial or financial information that would
  cause substantial competitive harm to the depository, including
  operational or other information that would give advantage to
  competitors or bidders.
         (c)  Notwithstanding Subsection (a), depository account
  information may be disclosed:
               (1)  to a depository account holder regarding the
  depository account holder's account;
               (2)  to a state or federal agency as required by
  applicable law;
               (3)  to a vendor providing services to the depository;
               (4)  in response to a subpoena issued under applicable
  law;
               (5)  if compiled as collective information that does
  not include any identifying information about a person; or
               (6)  as otherwise permitted by the depository account
  agreement applicable to a depository account holder's account.
         SECTION 22.  Section 2116.051, Government Code, is amended
  to read as follows:
         Sec. 2116.051.  USE OF DEPOSITORY AGENTS. The depository
  may [shall] use private, independently managed financial [firms
  and] institutions to provide retail locations for the provision of
  depository services to the public [licensed as depository agents as
  intermediaries to conduct retail transactions in bullion and
  specie] on behalf of the depository [with current and prospective
  depository account holders].
         SECTION 23.  The following laws are repealed:
               (1)  Sections 151.002(b)(9-a), (9-b), and (9-c),
  Finance Code;
               (2)  Section 151.603(c-1), Finance Code; and
               (3)  Subchapter J, Chapter 151, Finance Code.
         SECTION 24.  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, 2019.