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AN ACT
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relating to the operation and administration of the Texas Bullion |
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Depository. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 151.002(a), Finance Code, is amended to |
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read as follows: |
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(a) This section defines general terms that apply to an |
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applicant for or holder of a money services license issued under |
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this chapter, regardless of whether the license is a money |
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transmission license or [,] a currency exchange license[, or a
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depository agent license]. Additional terms that apply |
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specifically to money transmission are defined in Section |
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151.301. Additional terms that apply specifically to currency |
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exchange are defined in Section 151.501. [Additional terms that
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apply specifically to depository agents are defined in Section
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151.851.] |
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SECTION 2. Sections 151.002(b)(11) and (14), Finance Code, |
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are amended to read as follows: |
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(11) "License holder" means a person that holds a |
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money transmission license or[,] a currency exchange license[, or a
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depository agent license]. |
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(14) "Money services" means money transmission or[,] |
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currency exchange[, or depository agent] services. |
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SECTION 3. Section 151.003, Finance Code, is amended to |
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read as follows: |
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Sec. 151.003. EXCLUSIONS. The [Subject to Subchapter J,
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the] following persons are not required to be licensed under this |
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chapter: |
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(1) the United States or an instrumentality of the |
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United States, including the United States Post Office or a |
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contractor acting on behalf of the United States Post Office; |
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(2) a state or an agency, political subdivision, or |
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other instrumentality of a state; |
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(3) a federally insured financial institution, as that |
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term is defined by Section 201.101, that is organized under the laws |
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of this state, another state, or the United States; |
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(4) a foreign bank branch or agency in the United |
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States established under the federal International Banking Act of |
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1978 (12 U.S.C. Section 3101 et seq.); |
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(5) a person acting as an agent for an entity excluded |
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under Subdivision (3) or (4), to the extent of the person's actions |
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in that capacity, provided that: |
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(A) the entity is liable for satisfying the money |
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services obligation owed to the purchaser on the person's receipt |
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of the purchaser's money; and |
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(B) the entity and person enter into a written |
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contract that appoints the person as the entity's agent and the |
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person acts only within the scope of authority conferred by the |
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contract; |
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(6) a person that, on behalf of the United States or a |
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department, agency, or instrumentality of the United States, or a |
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state or county, city, or any other governmental agency or |
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political subdivision of a state, provides electronic funds |
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transfer services of governmental benefits for a federal, state, |
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county, or local governmental agency; |
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(7) a person that acts as an intermediary on behalf of |
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and at the direction of a license holder in the process by which the |
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license holder, after receiving money or monetary value from a |
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purchaser, either directly or through an authorized delegate, |
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transmits the money or monetary value to the purchaser's designated |
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recipient, provided that the license holder is liable for |
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satisfying the obligation owed to the purchaser; |
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(8) an attorney or title company that in connection |
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with a real property transaction receives and disburses domestic |
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currency or issues an escrow or trust fund check only on behalf of a |
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party to the transaction; |
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(9) a person engaged in the business of currency |
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transportation who is both a registered motor carrier under Chapter |
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643, Transportation Code, and a licensed armored car company or |
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courier company under Chapter 1702, Occupations Code, provided that |
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the person: |
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(A) only transports currency: |
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(i) from a person to the same person at |
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another location; |
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(ii) from a person to a financial |
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institution to be deposited in an account belonging to the same |
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person; or |
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(iii) to a person from a financial |
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institution after being withdrawn from an account belonging to the |
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same person; and |
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(B) does not otherwise engage in the money |
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transmission or currency exchange business [or depository agent
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services business] without a license issued under this chapter; |
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(9-a) a trust company, as defined by Section |
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187.001(a), that is organized under the laws of this state; and |
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(10) any other person, transaction, or class of |
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persons or transactions exempted by commission rule or any other |
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person or transaction exempted by the commissioner's order on a |
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finding that the licensing of the person is not necessary to achieve |
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the purposes of this chapter. |
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SECTION 4. Section 151.201, Finance Code, is amended to |
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read as follows: |
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Sec. 151.201. SCOPE. This subchapter sets out the general |
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qualifications and provisions that apply to a money services |
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license, regardless of whether the license is a money transmission |
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license or [,] a currency exchange license[, or a depository agent
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license]. Subchapters D and E set forth the additional |
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qualifications and provisions that apply specifically to a money |
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transmission license. Subchapter F sets forth the additional |
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qualifications and provisions that apply specifically to a currency |
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exchange license. [Subchapter J sets forth the additional
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qualifications and provisions that apply specifically to a
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depository agent license.] |
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SECTION 5. Sections 151.207(a), (b), and (d), Finance Code, |
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are amended to read as follows: |
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(a) If a license holder does not continue to meet the |
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qualifications or satisfy the requirements that apply to an |
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applicant for a new money transmission license or [,] currency |
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exchange license, [or depository agent license,] as applicable, the |
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commissioner may suspend or revoke the license holder's license. |
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(b) In addition to complying with Subsection (a), a license |
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holder must annually: |
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(1) pay a license fee in an amount established by |
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commission rule; and |
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(2) submit a report that is under oath, is in the form |
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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 [or depository agent license], an audited unconsolidated |
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financial statement 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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(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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(d) If the license holder fails to submit the completed |
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annual report and pay the annual license fee and any late fee due |
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within the time prescribed by Subsection (c)(1), the license |
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expires, and the license holder must cease and desist from engaging |
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in the business of money transmission or [,] currency exchange, [or
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depository agent services,] as applicable, as of that date. The |
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expiration of a license is not subject to appeal. |
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SECTION 6. Section 151.302(a), Finance Code, as amended by |
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Chapters 75 (S.B. 899) and 1000 (H.B. 483), Acts of the 84th |
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Legislature, Regular Session, 2015, is reenacted to read as |
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follows: |
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(a) A person may not engage in the business of money |
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transmission in this state or advertise, solicit, or represent that |
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the person engages in the business of money transmission in this |
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state unless the person: |
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(1) is licensed under this subchapter; |
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(2) is an authorized delegate of a person licensed |
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under this subchapter, appointed by the license holder in |
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accordance with Section 151.402; |
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(3) is excluded from licensure under Section 151.003; |
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or |
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(4) has been granted an exemption under Subsection |
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(c). |
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SECTION 7. Section 151.502(a), Finance Code, is amended to |
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read as follows: |
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(a) A person may not engage in the business of currency |
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exchange or advertise, solicit, or hold itself out as providing |
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currency exchange unless the person: |
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(1) is licensed under this subchapter; |
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(2) is licensed for money transmission under |
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Subchapter D; |
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(3) is an authorized delegate of a person licensed for |
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money transmission under Subchapter D; |
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(4) is excluded under Section 151.003; or |
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(5) [is licensed as a depository agent under
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Subchapter J and only engages in the business of currency exchange
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in connection with, and to the extent necessary for, the
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performance of depository agent activities; or
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[(6)] has been granted an exemption under Subsection |
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(d). |
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SECTION 8. Section 151.602(a), Finance Code, is amended to |
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read as follows: |
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(a) A license holder must prepare, maintain, and preserve |
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the following books, accounts, and other records for at least five |
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years or another period as may be prescribed by rule of the |
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commission: |
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(1) a record of each money transmission transaction or |
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[,] currency exchange transaction, [or depository agent services
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transaction,] as applicable; |
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(2) a general ledger posted in accordance with |
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generally accepted accounting principles containing all asset, |
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liability, capital, income, and expense accounts, unless directed |
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otherwise by the commissioner; |
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(3) bank statements and bank reconciliation records; |
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(4) all records and reports required by applicable |
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state and federal law, including the reporting and recordkeeping |
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requirements imposed by the Bank Secrecy Act, the USA PATRIOT ACT, |
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and Chapter 271, and other federal and state laws pertaining to |
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money laundering, drug trafficking, or terrorist funding; and |
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(5) any other records required by commission rule or |
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reasonably requested by the commissioner to determine compliance |
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with this chapter. |
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SECTION 9. Section 2116.001, Government Code, is amended by |
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amending Subdivision (9) and adding Subdivision (9-a) to read as |
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follows: |
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(9) "Depository agent" means a financial institution |
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that has entered into an agreement with the depository to provide a |
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retail location for the provision of depository services to the |
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general public on behalf of [person licensed in accordance with
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this chapter to serve as an intermediary between] the depository |
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[and a retail customer in making a transaction in precious metals
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bullion or specie]. |
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(9-a) "Financial institution" has the meaning |
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assigned by Section 201.101, Finance Code. |
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SECTION 10. Section 2116.002, Government Code, is amended |
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by adding Subsection (c) to read as follows: |
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(c) The comptroller shall adopt rules necessary to carry out |
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this chapter. |
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SECTION 11. Section 2116.003, Government Code, is amended |
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by amending Subsection (c) and adding Subsection (d) to read as |
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follows: |
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(c) The administrator may appoint or employ, subject to the |
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approval of the comptroller, a deputy administrator or other |
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subordinate officers or employees [officer] as necessary and |
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appropriate to the efficient administration of the depository. |
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(d) The comptroller may employ security officers to provide |
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needed security services for the depository and may commission the |
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officers as peace officers. |
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SECTION 12. Sections 2116.005(c) and (d), Government Code, |
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are amended to read as follows: |
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(c) The comptroller [by rule] shall adopt standards by which |
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the quantities of precious metals deposited are credited to a |
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depositor's depository account by reference to the particular form |
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in which the metals were deposited, classified by mint, |
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denomination, weight, assay mark, or other indicator, as |
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applicable. The standards must conform to applicable national and |
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international standards of weights and measures. |
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(d) The comptroller [by rule] may, if the comptroller |
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determines that to do so is in the public interest, restrict the |
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forms in which deposits of precious metals may be made [to those
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forms that conveniently lend themselves to measurement and
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accounting in units of troy ounces and standardized fractions of
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troy ounces]. |
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SECTION 13. Sections 2116.006(b) and (c), Government Code, |
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are amended to read as follows: |
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(b) The depository shall make a delivery described by |
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Subsection (a) on demand by the presentment of a written demand |
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[suitable check, draft,] or digital electronic instruction to the |
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depository or a depository agent. The comptroller may prescribe |
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[by rule shall adopt] the forms, standards, and processes through |
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which an order for delivery on demand may be made, presented, and |
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honored. |
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(c) The depository shall make a delivery at the depository's |
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settlement facility designated by the comptroller, shipping to an |
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address specified by the account holder or, at the depository's |
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discretion, at a facility of a depository agent at which |
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presentment is made, not later than 10 [five] business days after |
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the date of presentment. |
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SECTION 14. Section 2116.007, Government Code, is amended |
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to read as follows: |
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Sec. 2116.007. TRANSFER OF DEPOSITORY ACCOUNT BALANCE. (a) |
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In accordance with rules adopted under this chapter, a depository |
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account holder may transfer any portion of the balance of the |
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holder's depository account by written demand [check, draft,] or |
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digital electronic instruction to another person [depository
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account holder or to a person who at the time the transfer is
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initiated is not a depository account holder]. |
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(b) The depository shall adjust the depository account |
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balances of the depository accounts to reflect a transfer |
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transaction between depository account holders on presentment of |
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the written demand [check, draft,] or other instruction by reducing |
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the payor's depository account balance and increasing the |
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depository account balance of the payee accordingly. |
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(c) If a depository account holder transfers to a payee who |
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is not a depository account holder any portion of the balance of the |
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depository account holder's depository account, the depository |
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shall, if the payee is otherwise eligible to open a depository |
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account under applicable laws and depository policy, allow the |
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payee to establish a depository account [by presentment of the
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payor's check, draft, or instruction to the depository or to a
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depository agent]. The depository shall credit a newly |
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established account on behalf of the payee and shall debit the |
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payor's account accordingly. |
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SECTION 15. Sections 2116.008(c) and (e), Government Code, |
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are amended to read as follows: |
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(c) The depository [or a depository agent] shall hold the |
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contract for a depository account in the records pertaining to the |
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account. |
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(e) The depository and the depository account holder may |
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amend a contract for a depository account by agreement, or the |
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depository may amend the deposit contract by providing [mailing a] |
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written notice of the amendment to the account holder, separately |
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or as an enclosure with or part of the account holder's statement of |
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account or passbook. In the case of amendment by notice from the |
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depository, the notice must include the text and effective date of |
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the amendment. The notice may be provided electronically. The |
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effective date may not be earlier than the 30th day after the date |
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the notice is mailed, unless otherwise provided by rules adopted |
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under this chapter. |
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SECTION 16. Section 2116.010, Government Code, is amended |
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to read as follows: |
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Sec. 2116.010. FEES; SERVICE CHARGES; PENALTIES. The |
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comptroller [by rule] may establish fees, service charges, and |
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penalties to be charged a depository account holder for a service or |
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activity regarding a depository account, including a fee for an |
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overdraft, an insufficient fund check or draft, or a stop payment |
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order. The comptroller may waive any fees, service charges, or |
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penalties established under this section. |
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SECTION 17. Section 2116.021, Government Code, is amended |
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to read as follows: |
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Sec. 2116.021. TRANSACTIONS AND RELATIONSHIPS; MARKETING |
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AND PUBLICITY. (a) The depository may [shall] enter into |
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transactions and relationships with bullion banks, depositories, |
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dealers, central banks, sovereign wealth funds, financial |
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institutions, international nongovernmental organizations, and |
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other persons, located inside or outside of this state or inside or |
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outside of the United States, as the comptroller determines to be |
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prudent and suitable to facilitate the operations of the depository |
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and to further the purposes of this chapter. |
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(b) The depository may advertise and promote the depository |
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in any available media. |
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(c) The depository may issue, sell, license for sale, or |
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obtain a license to sell promotional items approved by the |
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administrator to further the purposes of this chapter and to |
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promote the depository. The depository may set commercially |
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reasonable prices for items licensed or sold under this section. |
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SECTION 18. Section 2116.023, Government Code, is amended |
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by adding Subsection (d) to read as follows: |
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(d) The depository shall refer any matter relating to an |
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action described by Subsection (a) to the attorney general for |
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resolution. |
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SECTION 19. Section 2116.024, Government Code, is amended |
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to read as follows: |
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Sec. 2116.024. OFFICIAL EXCHANGE RATES. The comptroller |
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[by rule] shall establish the references by which the official |
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exchange rate for pricing precious metals transactions in terms of |
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United States dollars or other currency must be established at the |
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time of a depository transaction. The comptroller shall establish |
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procedures and facilities through which the rates are made |
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discoverable at all reasonable times by system participants, both |
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on a real-time basis and retrospectively. |
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SECTION 20. Section 2116.025, Government Code, is amended |
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to read as follows: |
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Sec. 2116.025. FACILITATION OF ACCOUNTING AND REPORTING OF |
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TAXABLE GAINS. The comptroller [by rule] shall establish |
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procedures and requirements for the depository and depository |
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agents designed to minimize the burden to system participants of |
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accounting for and reporting taxable gains and losses arising out |
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of depository transactions as denominated in United States dollars |
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or another currency. |
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SECTION 21. Subchapter A, Chapter 2116, Government Code, is |
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amended by adding Section 2116.027 to read as follows: |
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Sec. 2116.027. CONFIDENTIALITY OF RECORDS; OTHER RECORDS |
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EXEMPT FROM DISCLOSURE. (a) Records relating to individual |
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depository accounts or depository account holders, including |
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current, former, or prospective depository account holders, that |
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are in the custody of the depository or a vendor performing services |
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related to the depository are confidential and exempt from |
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disclosure under Chapter 552. |
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(b) The following information of the depository is excepted |
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from the requirements of Section 552.021: |
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(1) records and other information related to the |
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security of the depository; |
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(2) records related to the method of setting the |
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depository's fees, service charges, penalties, and other charges or |
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payments; and |
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(3) commercial or financial information that would |
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cause substantial competitive harm to the depository, including |
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operational or other information that would give advantage to |
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competitors or bidders. |
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(c) Notwithstanding Subsection (a), depository account |
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information may be disclosed: |
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(1) to a depository account holder regarding the |
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depository account holder's account; |
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(2) to a state or federal agency as required by |
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applicable law; |
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(3) to a vendor providing services to the depository; |
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(4) in response to a subpoena issued under applicable |
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law; |
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(5) if compiled as collective information that does |
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not include any identifying information about a person; or |
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(6) as otherwise permitted by the depository account |
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agreement applicable to a depository account holder's account. |
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SECTION 22. Section 2116.051, Government Code, is amended |
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to read as follows: |
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Sec. 2116.051. USE OF DEPOSITORY AGENTS. The depository |
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may [shall] use private, independently managed financial [firms
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and] institutions to provide retail locations for the provision of |
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depository services to the public [licensed as depository agents as
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intermediaries to conduct retail transactions in bullion and
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specie] on behalf of the depository [with current and prospective
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depository account holders]. |
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SECTION 23. The following laws are repealed: |
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(1) Sections 151.002(b)(9-a), (9-b), and (9-c), |
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Finance Code; |
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(2) Section 151.603(c-1), Finance Code; and |
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(3) Subchapter J, Chapter 151, Finance Code. |
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SECTION 24. This Act takes effect immediately if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for immediate |
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effect, this Act takes effect September 1, 2019. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2458 was passed by the House on April |
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25, 2019, by the following vote: Yeas 133, Nays 2, 1 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2458 was passed by the Senate on May |
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10, 2019, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |