S.B. No. 895
 
 
 
 
AN ACT
  relating to the regulation of money services businesses; creating a
  criminal offense; creating administrative penalties; authorizing
  the imposition of a fee.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. MONEY SERVICES MODERNIZATION ACT
         SECTION 1.01.  Subtitle E, Title 3, Finance Code, is amended
  by adding Chapter 152 to read as follows:
  CHAPTER 152. REGULATION OF MONEY SERVICES BUSINESSES
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 152.001.  SHORT TITLE. This chapter may be cited as the
  Money Services Modernization Act.
         Sec. 152.002.  PURPOSE; CONSTRUCTION OF CHAPTER. (a) The
  purposes of this chapter are to:
               (1)  protect the interests of purchasers of money
  services and the public;
               (2)  preserve and protect the safety and soundness of
  money services businesses; and
               (3)  protect against drug trafficking, terrorist
  funding, money laundering, structuring, or related financial
  crimes.
         (b)  In applying and construing this chapter, consideration
  shall be given to the need to promote uniformity of the law with
  respect to its subject matter among states that enact laws
  substantially similar to this chapter.
         Sec. 152.003.  DEFINITIONS. In this chapter:
               (1)  "Acting in concert" means knowingly acting
  together with a common goal of jointly acquiring control of a money
  services licensee whether or not under an express agreement.
               (2)  "Authorized delegate" means a person designated by
  a money transmission licensee to engage in money transmission
  services on behalf of the licensee.
               (3)  "Average daily money transmission liability"
  means the amount of a money services licensee's outstanding money
  transmission obligations in this state at the end of each day in a
  given period of time, added together, and divided by the total
  number of days in the given period of time. For purposes of
  calculating average daily money transmission liability under this
  chapter as required by a money services licensee, the given period
  of time shall be:
                     (A)  the calendar quarters;
                     (B)  a period described by this chapter; or
                     (C)  any other period of time designated by the
  commissioner during an examination.
               (4)  "Bank Secrecy Act" means the Bank Secrecy Act (31
  U.S.C. Section 5311), and its implementing regulations.
               (5)  "Closed-loop stored value" means stored value that
  is redeemable by the issuer only for goods or services provided by
  the issuer, the issuer's affiliate, or a franchisee of the issuer or
  the issuer's affiliate, except to the extent required by applicable
  law to be redeemable in cash for its cash value.
               (6)  "Commission" means the Finance Commission of
  Texas.
               (7)  "Commissioner" means the banking commissioner of
  Texas or a person designated by the banking commissioner and acting
  under the banking commissioner's direction and authority.
               (8)  "Control" means the power to:
                     (A)  directly or indirectly vote at least 25
  percent or more of the outstanding voting shares or voting
  interests of a money services licensee or person in control of a
  money services licensee;
                     (B)  elect or appoint a majority of key
  individuals or executive officers, managers, directors, trustees,
  or other persons exercising managerial authority of a person in
  control of a money services licensee; or
                     (C)  directly or indirectly exercise a
  controlling influence over the management or policies of a money
  services licensee or person in control of a money services
  licensee.
               (9)  "Currency" means the coin and paper money issued
  by the United States or another country that is designated as legal
  tender, circulates, and is customarily used and accepted as a
  medium of exchange in the country of issuance.
               (10)  "Currency exchange" means receiving:
                     (A)  the currency of one government and exchanging
  it for the currency of another government; or
                     (B)  a negotiable instrument, as defined by
  Section 3.104, Business & Commerce Code, and exchanging it for the
  currency of another government.
               (11)  "Currency exchange licensee" means a holder of a
  currency exchange license under this chapter.
               (12)  "Department" means the Texas Department of
  Banking.
               (13)  "Eligible rating" means a sufficiently high
  credit rating given by an eligible rating service. If a security
  has differing credit ratings given by multiple eligible rating
  services, the highest rating shall apply when determining whether
  the security has an eligible rating. For purposes of this
  definition, a sufficiently high credit rating is a credit rating of
  any of the three highest rating categories provided by an eligible
  rating service, including:
                     (A)  a long-term credit rating of A- or higher by
  S&P Global;
                     (B)  a short-term credit rating of A-2, SP-2, or
  higher by S&P Global; or
                     (C)  the relative equivalent rating from an
  eligible rating service that does not have a rating described by
  Paragraphs (A) and (B).
               (14)  "Eligible rating service" means:
                     (A)  a Nationally Recognized Statistical Rating
  Organization as defined by the United States Securities and
  Exchange Commission; and
                     (B)  any other organization designated by the
  commissioner by rule or order.
               (15)  "Federally insured depository financial
  institution" means a bank, credit union, savings and loan
  association, trust company, savings association, savings bank,
  industrial bank, or industrial loan company organized under the
  laws of the United States or any state of the United States that has
  federally insured deposits.
               (16)  "In this state" means:
                     (A)  for a transaction requested in person, a
  physical location within this state; or
                     (B)  for a transaction requested electronically
  or by phone, a determination that the person requesting the
  transaction is in this state based on:
                           (i)  information provided by the person
  regarding:
                                 (a)  if the person is an individual,
  the location of the individual's residential address; or
                                 (b)  if the person is a business
  entity, the entity's principal place of business or other physical
  address location; and
                           (ii)  any records associated with the person
  that the provider of money transmission has that indicate the
  person's location, including an address associated with a person's
  account.
               (17)  "Key individual" means an individual who is
  ultimately responsible for establishing or directing policies and
  procedures of a money services licensee, including an executive
  officer, manager, director, or trustee.
               (18)  "Material litigation" means litigation that,
  according to United States generally accepted accounting
  principles, is significant to a person's financial health and would
  be required to be disclosed in the person's annual audited
  financial statements, report to shareholders, or similar records.
               (19)  "Money" or "monetary value" means currency or a
  claim that can be converted into currency through a financial
  institution, electronic payments network, or other formal or
  informal payment system. The term includes stablecoin that:
                     (A)  is pegged to a sovereign currency;
                     (B)  is fully backed by assets held in reserve;
  and
                     (C)  grants a holder of the stablecoin the right
  to redeem the stablecoin for sovereign currency from the issuer. 
               (20)  "Money services" means money transmission
  services or currency exchange services.
               (21)  "Money services licensee" means a holder of a
  money transmission license or currency exchange license under this
  chapter.
               (22)  "Money transmission":
                     (A)  means:
                           (i)  selling or issuing payment instruments
  to a person located in this state;
                           (ii)  selling or issuing stored value to a
  person located in this state; or
                           (iii)  receiving money for money
  transmission services from a person located in this state;
                     (B)  includes payroll processing services; and
                     (C)  does not include the provision solely of
  online or telecommunications services or network access.
               (23)  "Money transmission licensee" means a holder of a
  money transmission license under this chapter.
               (24)  "MSB-accredited state" means a state agency that
  is accredited by the Conference of State Bank Supervisors and Money
  Transmitter Regulators Association for money transmission
  licensing and supervision.
               (25)  "Multistate licensing process" means an
  agreement entered into by and among state regulators relating to
  coordinated processing of applications for money transmission
  licenses, applications for the acquisition of control of a money
  transmission licensee, control determinations, or notice and
  information requirements for a change of key individuals.
               (26)  "NMLS" means the Nationwide Multistate Licensing
  System and Registry developed by the Conference of State Bank
  Supervisors and the American Association of Residential Mortgage
  Regulators and owned and operated by the State Regulatory Registry,
  LLC, for the licensing and registration of persons in financial
  services industries, or a successor or affiliated entity.
               (27)  "Outstanding money transmission obligation," as
  established and extinguished in accordance with applicable state
  law, means:
                     (A)  a payment instrument or stored value:
                           (i)  that has been:
                                 (a)  issued or sold by a money
  transmission licensee to a person located in any state, territory,
  or possession of the United States, the District of Columbia, the
  Commonwealth of Puerto Rico, or a United States military
  installation that is located in a foreign country; or
                                 (b)  reported as sold by an authorized
  delegate to a person who is located in any state, territory, or
  possession of the United States, the District of Columbia, the
  Commonwealth of Puerto Rico, or a United States military
  installation that is located in a foreign country; and
                           (ii)  that has not been:
                                 (a)  paid or refunded by or for the
  licensee; or
                                 (b)  escheated in accordance with
  applicable abandoned property laws; or
                     (B)  money received for money transmission
  services by a money transmission licensee or an authorized delegate
  from a person located in any state, territory, or possession of the
  United States, the District of Columbia, the Commonwealth of Puerto
  Rico, or a United States military installation that is located in a
  foreign country that has not been:
                           (i)  received by the payee or refunded to the
  person; or
                           (ii)  escheated in accordance with
  applicable abandoned property laws.
               (28)  "Passive investor" means a person who:
                     (A)  does not have the power to elect a majority of
  key individuals or executive officers, managers, directors,
  trustees, or other persons exercising managerial authority of a
  person in control of a money services licensee;
                     (B)  is not employed by and does not have any
  managerial duties of a money services licensee or person in control
  of a money services licensee;
                     (C)  does not have the power to directly or
  indirectly exercise a controlling influence over the management or
  policies of a money services licensee or person in control of a
  money services licensee; and
                     (D)  either:
                           (i)  attests to Paragraphs (A), (B), and (C)
  in a form and medium prescribed by the commissioner; or
                           (ii)  commits to the passivity
  characteristics of Paragraphs (A), (B), and (C) in a written
  document.
               (29)  "Patriot Act" means the Uniting and Strengthening
  America by Providing Appropriate Tools Required to Intercept and
  Obstruct Terrorism (USA PATRIOT ACT) Act of 2001 (Pub. L.
  No. 107-56).
               (30)  "Payment instrument" means a written or
  electronic check, draft, money order, traveler's check, or other
  written or electronic instrument for the transmission or payment of
  money or monetary value, whether or not the instrument is
  negotiable. The term does not include stored value or an instrument
  that is:
                     (A)  redeemable by the issuer only for goods or
  services provided by the issuer, the issuer's affiliate, or a
  franchisee of the issuer or the issuer's affiliate, except to the
  extent required by applicable law to be redeemable in cash for its
  cash value; or
                     (B)  not sold to the public but issued and
  distributed as part of a loyalty, rewards, or promotional program.
               (31)  "Payroll processing services" means receiving
  money for money transmission services under a contract with a
  person to deliver wages or salaries, make payment of payroll taxes
  to state and federal agencies, make payments relating to an
  employee benefit plan, or make distributions of other authorized
  deductions from wages or salaries. The term does not include:
                     (A)  an employer performing payroll processing
  services on its own behalf or on behalf of its affiliate; or
                     (B)  a professional employer organization subject
  to regulation under other applicable state law.
               (32)  "Person" means an individual, general
  partnership, limited partnership, limited liability company,
  corporation, trust, association, joint stock corporation, or other
  corporate entity identified by the commissioner.
               (33)  "Receiving money for money transmission" means
  receiving money or monetary value in the United States for money
  transmission services by electronic or other means that occurs
  within or outside the United States.
               (34)  "Stored value" means monetary value representing
  a claim against the issuer evidenced by an electronic or digital
  record that is intended and accepted for use as a means of
  redemption for money or monetary value or payment for goods or
  services. The term includes prepaid access as defined by 31 C.F.R.
  Section 1010.100(ww). The term does not include a payment
  instrument, closed-loop stored value, or stored value not sold to
  the public but issued and distributed as part of a loyalty, rewards,
  or promotional program.
               (35)  "Tangible net worth" means the aggregate assets
  of a money services licensee excluding all intangible assets, less
  liabilities, as determined in accordance with United States
  generally accepted accounting principles.
               (36)  "Unsafe or unsound act or practice" means a
  practice of or conduct by a money services licensee or an authorized
  delegate that:
                     (A)  creates the likelihood of material loss,
  insolvency, or dissipation of the licensee's assets; or
                     (B)  otherwise materially prejudices the
  interests of the licensee or the licensee's customers.
         Sec. 152.004.  EXEMPTIONS. This chapter does not apply to:
               (1)  an operator of a payment system to the extent that
  the operator provides processing, clearing, or settlement
  services, between or among persons exempted by this section or
  money services licensees, in connection with wire transfers, credit
  card transactions, debit card transactions, stored-value
  transactions, automated clearing house transfers, or similar funds
  transfers;
               (2)  a person appointed as an agent of a payee to
  collect and process a payment from a payor to the payee for goods or
  services, other than money transmission services, provided to the
  payor by the payee, provided that:
                     (A)  there exists a written agreement between the
  payee and the agent directing the agent to collect and process
  payments from payors on the payee's behalf;
                     (B)  the payee holds the agent out to the public as
  accepting payments for goods or services on the payee's behalf; and
                     (C)  payment for the goods and services is treated
  as received by the payee on receipt by the agent, the payor's
  obligation is extinguished, and there is no risk of loss to the
  payor if the agent fails to remit the funds to the payee;
               (3)  a person who acts as an intermediary by processing
  payments between an entity that has directly incurred an
  outstanding money transmission obligation to a sender, and the
  sender's designated recipient, provided that the entity that has
  incurred the outstanding money transmission obligation:
                     (A)  is licensed or exempt from the licensing
  requirements of this chapter;
                     (B)  provides a receipt, electronic record, or
  other written confirmation to the sender identifying the entity as
  the provider of money transmission in the transaction; and
                     (C)  bears sole responsibility to satisfy the
  outstanding money transmission obligation to the sender, including
  the obligation to make the sender whole in connection with a failure
  to transmit the funds to the sender's designated recipient;
               (4)  the United States or a department, agency, or
  instrumentality of the United States, or an agent of a department,
  agency, or instrumentality of the United States;
               (5)  money transmission services by the United States
  Postal Service or by an agent of the United States Postal Service;
               (6)  a state, county, city, or any other governmental
  agency or governmental subdivision or instrumentality of a state,
  or its agent;
               (7)  a federally insured depository financial
  institution, bank holding company, office of an international
  banking corporation, foreign bank that establishes a federal branch
  under the International Banking Act of 1978 (12 U.S.C. Section
  3102), corporation organized under the Bank Service Company Act (12
  U.S.C. Sections 1861-1867), or corporation organized under the Edge
  Act (12 U.S.C. Sections 611-633);
               (8)  a trust company, as defined by Section 187.001,
  that is organized under the laws of this state;
               (9)  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;
               (10)  an electronic funds transfer of governmental
  benefits for a federal, state, county, or governmental agency by a
  contractor on behalf of the United States or a department, agency,
  or instrumentality of the United States, or on behalf of a state or
  governmental subdivision, agency, or instrumentality of a state;
               (11)  a board of trade designated as a contract market
  under the federal Commodity Exchange Act (7 U.S.C. Sections 1-25),
  or a person who, in the ordinary course of business, provides
  clearance and settlement services for a board of trade to the extent
  of its operation as or for a board of trade;
               (12)  a registered futures commission merchant under
  the federal commodities laws to the extent of its operation as such
  a merchant;
               (13)  a person registered as a securities broker-dealer
  under federal or state securities laws to the extent of the person's
  operation as a broker-dealer;
               (14)  an individual employed by a money services
  licensee, authorized delegate, or person exempted from the
  licensing requirements of this chapter when acting within the scope
  of employment and under the supervision of the licensee, authorized
  delegate, or exempted person as an employee and not as an
  independent contractor;
               (15)  a person expressly appointed as a third-party
  service provider to or agent of an entity exempt under Subdivision
  (7), solely to the extent that:
                     (A)  the service provider or agent engages in
  money transmission services on behalf of and under a written
  agreement with the exempt entity that provides the specific
  functions that the service provider or agent is to perform; and
                     (B)  the exempt entity assumes all risk of loss
  and all legal responsibility for satisfying the outstanding money
  transmission obligations owed to purchasers and holders of the
  outstanding money transmission obligations on receipt of the
  purchaser's or holder's money or monetary value by the service
  provider or agent; and
               (16)  a person exempt by a regulation or order of the
  commissioner finding that:
                     (A)  the exemption is in the public interest; and
                     (B)  the regulation of the person is not necessary
  for the purposes of this chapter.
         Sec. 152.005.  AUTHORITY TO REQUIRE DEMONSTRATION OF
  EXEMPTION. The commissioner may require a person claiming to be
  exempt from licensing under Section 152.004 to provide information
  and documentation to the commissioner demonstrating that the person
  qualifies for the exemption claimed.
         Sec. 152.006.  CENTRALIZED DIGITAL CURRENCY PROHIBITED.  
  This chapter does not authorize the creation of any centralized
  bank digital currency or any other action that prohibits or limits
  the use of paper currency.
  SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
         Sec. 152.051.  ADMINISTRATION. The department shall
  administer this chapter.
         Sec. 152.052.  RULES; FEES. (a) The commission may adopt
  rules to administer and enforce this chapter, including rules
  necessary or appropriate to implement and clarify this chapter.
         (b)  The commission may by rule impose and collect
  proportionate and equitable fees and costs for notices,
  applications, examinations, investigations, and other actions
  required to:
               (1)  recover the cost of:
                     (A)  maintaining and operating the department;
  and
                     (B)  administering and enforcing this chapter and
  other applicable law; and
               (2)  achieve the purposes of this chapter.
         (c)  The presence or absence of a specific reference in this
  chapter to a rule regarding a particular subject is not intended to
  and does not limit the general rulemaking authority granted to the
  commission by this section.
         Sec. 152.053.  IMPLEMENTATION. The commissioner may,
  subject to Sections 152.055(a) and (b):
               (1)  enter into agreements or relationships with other
  government officials or federal and state regulatory agencies and
  regulatory associations in order to improve efficiencies and reduce
  regulatory burden by standardizing methods or procedures and
  sharing resources, records, or related information obtained under
  this chapter;
               (2)  use, hire, contract for, or employ analytical
  systems, methods, or software to examine or investigate a person
  subject to this chapter;
               (3)  accept from other state or federal government
  agencies or officials licensing, examination, or investigation
  reports made by the other state or federal government agencies or
  officials; and
               (4)  accept audit reports made by an independent
  certified public accountant or other qualified third-party auditor
  for an applicant or money services licensee and incorporate the
  audit report in a report of examination or investigation.
         Sec. 152.054.  COMMISSIONER'S GENERAL AUTHORITY. (a) A
  power granted to the commissioner under this chapter is in addition
  to and does not limit another power granted under this chapter or
  other law. The commissioner's exercise of authority under another
  law does not preclude the commissioner from exercising a power
  under this chapter.
         (b)  The commissioner may impose on an authority, approval,
  exemption, license, or order issued or granted under this chapter
  any condition the commissioner considers reasonably necessary or
  appropriate to carry out and achieve the purposes of this chapter.
         Sec. 152.055.  CONFIDENTIALITY. (a) Except as provided by
  Subsection (b), the following are confidential and not subject to
  disclosure under Chapter 552, Government Code:
               (1)  all information or reports obtained by the
  commissioner from an applicant, money services licensee, or
  authorized delegate;
               (2)  all information contained in or related to an
  examination, investigation, operating report, or condition report
  prepared by, on behalf of, or for the use of the commissioner; and
               (3)  financial statements, balance sheets, or
  authorized delegate information.
         (b)  The commissioner may disclose information not otherwise
  subject to disclosure under Subsection (a):
               (1)  to representatives of state or federal agencies
  who affirm in a record that the representatives will maintain the
  confidentiality of the information; or
               (2)  when the commissioner finds that the disclosure is
  reasonably necessary for the protection and interest of the public
  in accordance with Chapter 552, Government Code.
         (c)  This section does not prohibit the commissioner from
  disclosing to the public a list of all money services licensees or
  the aggregated financial or transactional data concerning those
  licensees.
         (d)  The following information for each money services
  licensee contained in the records of the department is not
  confidential and may be made available to the public in its entirety
  on the department's Internet website or in the NMLS, or as
  responsive on receipt by the department of a written request:
               (1)  the name, business address, telephone number, and
  unique identifier of the licensee;
               (2)  the business address of the licensee's registered
  agent for service;
               (3)  the name, business address, and telephone number
  of each authorized delegate for the licensee, if applicable;
               (4)  the terms of or a copy of any bond filed by the
  licensee, provided that confidential information under Subsection
  (a), including prices and fees for the bond, is redacted;
               (5)  copies of any nonconfidential final orders of the
  department relating to a violation of this chapter or a regulation
  implementing this chapter; and
               (6)  notice of the imposition of an administrative fine
  or penalty under this chapter.
         Sec. 152.056.  INVESTIGATIONS. (a)  The commissioner may
  conduct investigations in or outside this state and the United
  States as the commissioner considers necessary or appropriate to
  administer and enforce this chapter.
         (b)  For purposes of an investigation, examination, or other
  proceeding under this chapter, the commissioner may:
               (1)  administer oaths or cause oaths to be
  administered;
               (2)  subpoena witnesses;
               (3)  compel the attendance of witnesses;
               (4)  take evidence; and
               (5)  require the production of any document that the
  commissioner determines to be relevant to the inquiry.
         (c)  If a person refuses to obey a subpoena, a district court
  of Travis County, on application by the commissioner, may issue an
  order requiring the person to appear before the commissioner and
  produce documents or give evidence regarding the matter under
  investigation.
         (d)  The commissioner may employ a person or request the
  attorney general, the Department of Public Safety, or any other
  state, federal, or local law enforcement agency to assist in
  enforcing this chapter.
         (e)  The commissioner may recover the reasonable costs
  incurred in connection with an investigation conducted under this
  chapter from the person that is the subject of the investigation.
         Sec. 152.057.  SUPERVISION. (a) The commissioner may
  conduct an examination or investigation of a money services
  licensee or authorized delegate or otherwise take independent
  action authorized by this chapter or by a rule adopted or order
  issued under this chapter as reasonably necessary or appropriate to
  administer and enforce this chapter, regulations implementing this
  chapter, and other applicable law, including the Bank Secrecy Act
  and the Patriot Act.
         (b)  The commissioner may:
               (1)  conduct an examination on-site or off-site as the
  commissioner may reasonably require;
               (2)  conduct an examination in conjunction with an
  examination conducted by representatives of other state agencies or
  agencies of another state or of the federal government;
               (3)  accept the examination report of another state
  agency or an agency of another state or of the federal government,
  or a report prepared by an independent accounting firm; and
               (4)  summon and examine under oath a key individual or
  employee of a money services licensee or authorized delegate and
  require the person to produce records regarding a matter related to
  the condition and business of the licensee or authorized delegate.
         (c)  If the commissioner accepts a report under Subsection
  (b)(3), the report is considered for all purposes an official
  report of the commissioner.
         (d)  A money services licensee or authorized delegate shall
  provide, and the commissioner shall have full and complete access
  to, all records the commissioner may reasonably require to conduct
  a complete examination. Records must be provided at the location
  and in the format specified by the commissioner, provided the
  commissioner may use multistate record production standards and
  examination procedures when those standards will reasonably
  achieve the requirements of this section.
         (e)  Unless otherwise directed by the commissioner, a money
  services licensee shall pay all costs reasonably incurred in
  connection with an examination of the licensee or an authorized
  delegate of the licensee.
         Sec. 152.058.  NETWORKED SUPERVISION. (a) To efficiently
  and effectively administer and enforce this chapter and to minimize
  regulatory burden, the commissioner may participate in multistate
  supervisory processes established between states and coordinated
  through the Conference of State Bank Supervisors, Money Transmitter
  Regulators Association, and affiliates and successors of those
  entities for all money services licensees that hold licenses in
  this state and other states.
         (b)  If the commissioner participates in multistate
  supervision, the commissioner shall:
               (1)  cooperate, coordinate, and share information with
  other state and federal regulators in accordance with Section
  152.055(b);
               (2)  enter into written cooperation, coordination, or
  information-sharing contracts or agreements with organizations
  made up of state or federal governmental agencies; and
               (3)  cooperate, coordinate, and share information with
  organizations made up of state or federal governmental agencies, if
  the organizations agree in writing to maintain the confidentiality
  and security of the shared information in accordance with Section
  152.055.
         (c)  The commissioner may not waive, and nothing in this
  section constitutes a waiver of, the commissioner's authority to
  conduct an examination or investigation or otherwise take
  independent action authorized by this chapter or a rule adopted or
  order issued under this chapter to enforce compliance with
  applicable state or federal law.
         (d)  A joint examination or investigation, or acceptance of
  an examination or investigation report, does not waive an
  examination assessment provided for in this chapter.
         Sec. 152.059.  RELATIONSHIP TO FEDERAL LAW. (a) If state
  money transmission jurisdiction is conditioned in federal law, any
  inconsistency between a provision of this chapter and the federal
  law governing money transmission shall be governed by the
  applicable federal law to the extent of the inconsistency.
         (b)  In the event of any inconsistency between this chapter
  and federal law that governs under Subsection (a), the commissioner
  may provide interpretive guidance that:
               (1)  identifies the inconsistency; and
               (2)  prescribes the appropriate means of compliance
  with federal law.
         Sec. 152.060.  CONSENT TO SERVICE OF PROCESS. A money
  services licensee, an authorized delegate, or a person who
  knowingly engages in activities that are regulated and require a
  license under this chapter, with or without filing an application
  for a license or holding a license under this chapter, is considered
  to have consented to the jurisdiction of the courts of this state
  for all actions arising under this chapter.
         Sec. 152.061.  PRESUMPTION OF CONTROL. (a) A person is
  presumed to exercise a controlling influence over a money services
  licensee if the person holds the power to directly or indirectly
  vote not less than 10 percent of the outstanding voting shares or
  voting interests of a money services licensee or person in control
  of a money services licensee.
         (b)  The presumption under Subsection (a) may be rebutted by
  evidence that the person who is presumed to exercise a controlling
  influence under Subsection (a) is a passive investor.
         (c)  For purposes of determining the percentage of a money
  services licensee controlled by a person, the person's interest
  shall be aggregated with the interest of any person:
               (1)  related within the second degree of consanguinity
  or affinity, other than a person's grandparent or grandchild; or
               (2)  who shares the person's home.
  SUBCHAPTER C. MONEY SERVICES LICENSES
         Sec. 152.101.  MONEY TRANSMISSION LICENSE REQUIRED. (a) A
  person may not engage in the business of money transmission or
  advertise, solicit, or hold itself out as engaging in the business
  of money transmission unless the person is licensed under this
  chapter.
         (b)  For the purposes of this chapter, a person engages in
  the business of money transmission if the person receives
  compensation or expects to receive compensation, directly or
  indirectly, for conducting money transmission.
         (c)  Subsection (a) does not apply to a person who:
               (1)  is an authorized delegate of a money transmission
  licensee acting within the scope of authority conferred by a
  written contract with the licensee;
               (2)  is exempt under Section 152.004 and does not
  engage in money transmission outside the scope of the applicable
  exemption; or
               (3)  has been granted an exemption under Subsection
  (e).
         (d)  A license issued under Section 152.106 is not
  transferable or assignable.
         (e)  On receiving an application and finding that the
  exemption is in the public interest, the commissioner may exempt a
  person who:
               (1)  incidentally engages in the business of money
  transmission only to the extent reasonable and necessary to
  accomplish a primary business objective unrelated to the business
  of money transmission;
               (2)  does not advertise or offer money transmission to
  the public except to the extent reasonable and necessary to fairly
  advertise or offer the person's primary business services; and
               (3)  transmits money without a fee as an inducement for
  customer participation in the person's primary business.
         (f)  In accordance with the investigation provisions of this
  chapter, the commissioner may examine a person to verify the
  person's exempt status under Subsection (e).
         Sec. 152.102.  CURRENCY EXCHANGE LICENSE REQUIRED. (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 is licensed under this chapter.
         (b)  For the purposes of this chapter, a person engages in
  the business of currency exchange services if the person receives
  compensation or expects to receive compensation, directly or
  indirectly, for conducting currency exchange services.
         (c)  Subsection (a) does not apply to a person who:
               (1)  is a money transmission licensee;
               (2)  is an authorized delegate of a money transmission
  licensee acting within the scope of authority conferred by a
  written contract with the licensee;
               (3)  is exempt under Section 152.004 and does not
  engage in currency exchange services outside the scope of the
  applicable exemption; or
               (4)  has been granted an exemption under Subsection
  (e).
         (d)  A license issued under Section 152.106 is not
  transferable or assignable.
         (e)  On receiving an application and finding that the
  exemption is in the public interest, the commissioner may exempt a
  retailer, wholesaler, or service provider that in the ordinary
  course of business accepts currency of a foreign country or
  government as payment for goods or services, unless:
               (1)  the value of the goods or services purchased in a
  single transaction with the retailer, wholesaler, or service
  provider exceeds $10,000;
               (2)  the change given or made as a result of the
  transaction with the retailer, wholesaler, or service provider
  exceeds $100;
               (3)  the person attempts to structure the transaction
  in a manner that evades the licensing requirements of this chapter
  or avoids using a money services licensee under this chapter;
               (4)  the person is engaged in the business of cashing
  checks, drafts, or other payment instruments for consideration and
  is not otherwise exempt from licensing under this chapter; or
               (5)  the person would not be eligible for a license
  under this chapter.
         (f)  In accordance with the investigation provisions of this
  chapter, the commissioner may examine a person to verify the
  person's exempt status under Subsection (e).
         (g)  A currency exchange licensee may engage in the business
  of currency exchange services at one or more locations in this state
  directly or indirectly owned by the licensee under a single
  license.
         Sec. 152.103.  CONSISTENT STATE LICENSING. (a) The
  commissioner may require that a person submit through the NMLS in
  the form and manner prescribed by the commissioner and acceptable
  to the registry any information or document or payment of a fee
  required to be submitted under this chapter or rules adopted under
  this chapter.
         (b)  The commissioner may use the NMLS as a channeling agent
  for obtaining information required for licensing purposes under
  this chapter or rules adopted under this chapter, including:
               (1)  criminal history record information from the
  Federal Bureau of Investigation, the United States Department of
  Justice, or any other agency or entity at the commissioner's
  discretion;
               (2)  information related to any administrative, civil,
  or criminal findings by a governmental jurisdiction; and
               (3)  information requested by the commissioner under
  Section 152.104(a)(10) or (c)(13).
         Sec. 152.104.  APPLICATION FOR MONEY SERVICES LICENSE. (a)
  An applicant for a money services license shall apply in a form and
  medium prescribed by the commissioner. The application must
  contain:
               (1)  the legal name and residential and business
  addresses of the applicant and any fictitious or trade name used by
  the applicant in conducting the applicant's business;
               (2)  a list of any criminal convictions of the
  applicant and any material litigation in which the applicant has
  been involved in the 10-year period preceding the submission of the
  application;
               (3)  a description of any money services previously
  provided by the applicant and the money services that the applicant
  seeks to provide in this state;
               (4)  a list of the applicant's proposed authorized
  delegates and the locations in this state where the applicant and
  the applicant's authorized delegates propose to engage in money
  transmission, if applicable;
               (5)  a list of other states in which the applicant is
  licensed to engage in money services, and any license revocations,
  suspensions, or other disciplinary action taken against the
  applicant in another state;
               (6)  information concerning any bankruptcy or
  receivership proceedings affecting the applicant or a person in
  control of the applicant;
               (7)  a sample form of contract for authorized
  delegates, if applicable;
               (8)  a sample form of payment instrument or stored
  value, if applicable;
               (9)  the name and address of any federally insured
  depository financial institution through which the applicant plans
  to conduct licensable activity; and
               (10)  any other information the commissioner
  reasonably requires with respect to the applicant.
         (b)  A form adopted by the commissioner under Subsection (a)
  must contain content as provided by commission rule or instruction
  or procedure of the commissioner and may be changed or updated by
  the commissioner in accordance with applicable law in order to
  carry out the purposes of this chapter and maintain consistency
  with NMLS licensing standards and practices.
         (c)  If an applicant is a corporation, limited liability
  company, partnership, or other legal entity, the applicant shall
  also provide:
               (1)  the date of the applicant's incorporation or
  formation and state or country of incorporation or formation;
               (2)  a certificate of good standing from the state or
  country in which the applicant is incorporated or formed, if
  applicable;
               (3)  a brief description of the structure or
  organization of the applicant, including any parent entity or
  subsidiary of the applicant, and whether any parent entity or
  subsidiary is publicly traded;
               (4)  the legal name, any fictitious or trade name, all
  business and residential addresses, and the employment, as
  applicable, of each key individual and person in control of the
  applicant in the 10-year period preceding the submission of the
  application;
               (5)  a list of any criminal convictions and material
  litigation in which a person in control of the applicant that is not
  an individual has been involved in the 10-year period preceding the
  submission of the application;
               (6)  if the application is for a money transmission
  license, a copy of audited financial statements of the applicant
  for the most recent fiscal year and for the two-year period
  preceding the submission of the application;
               (7)  if the application is for a currency exchange
  license, or if the application is for a money transmission license
  and the commissioner otherwise determines it to be acceptable,
  certified unaudited financial statements for the most recent fiscal
  year or other period acceptable to the commissioner;
               (8)  a certified copy of unaudited financial statements
  of the applicant for the most recent fiscal quarter;
               (9)  if the applicant is a publicly traded corporation,
  a copy of the most recent report filed with the United States
  Securities and Exchange Commission under Section 13, Securities
  Exchange Act of 1934 (15 U.S.C. Section 78m);
               (10)  if the applicant is a wholly owned subsidiary of a
  corporation publicly traded in the United States, a copy of audited
  financial statements for the parent corporation for the most recent
  fiscal year or a copy of the parent corporation's most recent report
  filed under Section 13, Securities Exchange Act of 1934 (15 U.S.C.
  Section 78m);
               (11)  if the applicant is a corporation publicly traded
  outside the United States, a copy of documentation similar to the
  documentation required under Subdivision (10) filed with the
  regulator of the parent corporation's domicile outside the United
  States;
               (12)  the name and address of the applicant's
  registered agent in this state; and
               (13)  any other information the commissioner
  reasonably requires with respect to the applicant.
         (d)  At the time an application for a license under this
  section is submitted, an applicant must file with the department a
  nonrefundable application fee in the amount established by
  commission rule.
         (e)  The commissioner may waive one or more requirements of
  Subsections (a) and (c) or permit an applicant to submit other
  information in lieu of the information required by this section.
         Sec. 152.105.  INFORMATION REQUIREMENTS FOR CERTAIN
  INDIVIDUALS. (a) In addition to the requirements of Section
  152.104, an applicant shall provide additional information to the
  commissioner if the applicant is an individual who:
               (1)  is in control of a money services licensee or
  applicant;
               (2)  seeks to acquire control of a money services
  licensee; or
               (3)  is a key individual.
         (b)  Additional information provided to the commissioner by
  an individual under this section must include the individual's:
               (1)  fingerprints for submission to the Federal Bureau
  of Investigation and the commissioner for purposes of a national
  criminal history background check unless the person currently
  resides outside of the United States and has resided outside of the
  United States for the 10-year period preceding the submission of
  the application; and
               (2)  personal history and experience, in a form and
  medium prescribed by the commissioner, that contains the following
  information:
                     (A)  if the individual has a social security
  number, an independent credit report for the individual from a
  consumer reporting agency;
                     (B)  information related to any criminal
  convictions or pending charges against the individual; and
                     (C)  information related to any regulatory or
  administrative action and any civil litigation against the
  individual involving claims of fraud, misrepresentation,
  conversion, mismanagement of funds, breach of fiduciary duty, or
  breach of contract.
         (c)  If an individual to whom this section applies has
  resided outside of the United States at any time in the preceding 10
  years, the individual shall also provide an investigative
  background report prepared by an independent search firm that at a
  minimum:
               (1)  demonstrates that the search firm:
                     (A)  has sufficient knowledge and resources and
  employs accepted and reasonable methodologies to conduct the
  research of the background report; and
                     (B)  is not affiliated with and does not have an
  interest with the individual being researched; and
               (2)  is written in the English language and contains
  the following information:
                     (A)  if available in the individual's current
  jurisdiction of residency, a comprehensive credit report, or any
  equivalent information obtained or generated by the independent
  search firm to accomplish a report, including a search of the court
  data in the countries, provinces, states, cities, towns, and
  contiguous areas where the individual resided and worked;
                     (B)  criminal records information for the past 10
  years, including felonies, misdemeanors, or similar convictions
  for violations of law in the countries, provinces, states, cities,
  towns, and contiguous areas where the individual resided and
  worked;
                     (C)  employment history;
                     (D)  media history, including an electronic
  search of national and local publications, wire services, and
  business applications; and
                     (E)  financial services-related regulatory
  history, including money transmission services, securities,
  banking, insurance, and mortgage-related industries.
         Sec. 152.106.  ISSUANCE OF LICENSE. (a) An application for
  a license under this chapter that appears to include all the items
  and address all of the matters that are required under Sections
  152.104 and 152.105 is considered complete and the commissioner
  shall promptly notify the applicant in writing of the date on which
  the application is determined to be complete.
         (b)  The commissioner shall approve or deny the application
  not later than the 120th day after the date the application is
  determined to be complete under Subsection (a). If the application
  is not approved or denied within 120 days after the completion date,
  the application is approved and the license takes effect on the
  first business day after expiration of the 120-day period. The
  commissioner may extend the application approval period for good
  cause.
         (c)  A determination by the commissioner under Subsection
  (a) that an application is complete and is accepted for processing
  is not an assessment of the substance of the application or of the
  sufficiency of the information provided, and means only that the
  application, on its face, appears to include all of the items,
  including the national criminal history background check response
  from the Federal Bureau of Investigation under Section 152.105(b),
  and address all of the matters that are required under Sections
  152.104 and 152.105.
         (d)  When an application is filed and considered complete
  under this section, the commissioner shall investigate the
  applicant's financial condition and responsibility, financial and
  business experience, character, and general fitness. The
  commissioner may conduct an on-site investigation of the applicant,
  the reasonable cost of which the applicant must pay.
         (e)  The commissioner shall issue a license to an applicant
  under this section if the commissioner finds that:
               (1)  the applicant has complied with Sections 152.104
  and 152.105; and
               (2)  it is in the interest of the public to permit the
  applicant to engage in money transmission services, currency
  exchange services, or both, considering:
                     (A)  the financial condition and responsibility,
  financial and business experience, competence, character, and
  general fitness of the applicant; and
                     (B)  the experience, competence, character, and
  general fitness of the key individuals and persons in control of the
  applicant.
         (f)  If an applicant participates in or is subject to a
  multistate licensing process:
               (1)  the commissioner may accept the investigation
  results of a lead investigative state for the purpose of Subsection
  (d) if the lead investigative state has sufficient staffing,
  expertise, and minimum standards; or
               (2)  if this state is a lead investigative state, the
  commissioner may investigate the applicant under Subsection (d) and
  the time frames established by agreement through the multistate
  licensing process, provided that the time frame complies with the
  period in Subsection (b).
         (g)  If the commissioner finds that the applicant fails to
  meet the qualifications or satisfy the requirements for the license
  for which application is made, the commissioner shall inform the
  applicant in writing that the application is denied and state the
  reasons for the denial. The applicant may appeal the denial by
  filing a written request for a hearing with the commissioner not
  later than the 30th day after the date the notice is mailed. A
  hearing on the denial must be held not later than the 45th day after
  the date the commissioner receives the written request unless the
  administrative law judge extends the period for good cause or the
  parties agree to a later hearing date. The hearing is considered a
  contested case hearing and is subject to Section 152.451.
         (h)  Except as provided by Subsection (b), the license takes
  effect on the day the application is approved.
         Sec. 152.107.  MAINTENANCE OF LICENSE. (a) If a money
  services licensee does not continue to meet the qualifications or
  satisfy the requirements that apply to an applicant for a money
  services license, the commissioner may suspend or revoke the
  licensee's license in accordance with the procedures established by
  this chapter or other applicable state law governing suspension or
  revocation.
         (b)  An applicant for a money transmission license must
  demonstrate that it meets or will meet the requirements in Sections
  152.351, 152.352, 152.354, and 152.355. A money transmission
  licensee must at all times continue to meet the requirements of
  those sections.
         (c)  An applicant for a currency exchange license must
  demonstrate that it meets or will meet the requirements in Sections
  152.353, 152.354, and 152.355. A currency exchange licensee must
  at all times continue to meet the requirements of those sections.
         (d)  In addition to complying with the requirements of
  Subsection (a) and, as applicable, Subsection (b) or (c), a money
  services licensee must annually:
               (1)  pay a license fee in an amount established by
  commission rule; and
               (2)  submit a report under oath in the form and medium
  prescribed by the commissioner that contains the following
  information:
                     (A)  if the licensee is a money transmission
  licensee, an audited, unconsolidated financial statement dated as
  of the last day of the money transmission licensee's fiscal year
  that ended in the immediately preceding calendar year;
                     (B)  if the licensee is a currency exchange
  licensee, a financial statement, audited or unaudited, dated as of
  the last day of the currency exchange licensee'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:
                           (i)  the security, net worth, permissible
  investments, and other requirements the money services licensee
  must satisfy; and
                           (ii)  whether the money services licensee
  continues to meet the qualifications and requirements for
  licensure.
         (e)  If the department does not receive a money services
  licensee's annual license fee and complete annual report under
  Subsection (d) on or before the due date prescribed by the
  commissioner under this section, the commissioner shall notify the
  money services licensee in writing that the money services licensee
  must:
               (1)  submit the report and pay the license fee not later
  than the 45th day after the due date prescribed by the commissioner;
  and
               (2)  pay a late fee, in an amount established by
  commission rule and not subject to appeal, for each business day
  after the due date specified by the commissioner that the
  commissioner does not receive the completed report and license fee.
         (f)  If the money services licensee fails to submit the
  completed annual report and pay the annual license fee and any late
  fee due within the time prescribed by Subsection (e), the license
  expires, and the money services licensee must cease and desist from
  engaging in the business of money services as of that date. The
  expiration of a license under this section is not subject to appeal.
         (g)  On timely receipt of a money services licensee's
  complete annual report, annual license fee, and any late fee due,
  the department shall review the report and, if necessary,
  investigate the business and records of the money services
  licensee. On completion of the review and investigation, if any,
  the commissioner may:
               (1)  impose conditions on the license the commissioner
  considers reasonably necessary or appropriate; or
               (2)  suspend or revoke the license on the basis of a
  ground specified in Section 152.403.
         (h)  On written application and for good cause shown, the
  commissioner may extend the due date for filing the annual license
  fee and annual report required under this section.
         (i)  The holder, principal, or person in control of the
  holder of a license issued under this chapter that has expired or
  that the holder has surrendered under Section 152.108 that wishes
  to conduct activities for which a license is required under this
  chapter must file a new license application under Section 152.104
  and satisfy all requirements for licensure that apply at the time
  the new application is filed.
         Sec. 152.108.  SURRENDER OF LICENSE. (a) A money services
  licensee may surrender the licensee's license by delivering the
  original license to the commissioner along with a written notice of
  surrender that includes the location at which the licensee's
  records will be stored and the name, address, telephone number, and
  other contact information for an individual who is authorized to
  provide access to the records.
         (b)  A money services licensee shall surrender the
  licensee's license under this section if the licensee becomes
  ineligible for a license issued under this chapter.
         (c)  The surrender of a license does not reduce or eliminate
  a money services licensee's civil or criminal liability arising
  from any acts or omissions before the surrender of the license,
  including any administrative action undertaken by the commissioner
  to revoke or suspend a license, assess an administrative penalty,
  order the payment of restitution, or exercise any other authority
  under this chapter. Further, the surrender of a license does not
  release the security required of a licensee under Section 152.352
  or 152.353.
         Sec. 152.109.  REFUND OF FEE OR COST PAID BY MONEY SERVICES
  LICENSEE. A fee or cost paid by a money services licensee under
  this chapter is not refundable.
  SUBCHAPTER D. ACQUISITION OF CONTROL AND CHANGE OF KEY INDIVIDUAL
         Sec. 152.151.  ACQUISITION OF CONTROL. (a) A person or
  group of persons acting in concert seeking to acquire control of a
  money services licensee must obtain written approval from the
  commissioner before acquiring control. An individual is not
  considered to acquire control of a money services licensee and is
  not subject to the acquisition of control provisions of this
  subchapter if that individual becomes a key individual in the
  ordinary course of business.
         (b)  A person or group of persons acting in concert seeking
  to acquire control of a money services licensee shall, in
  cooperation with the licensee, submit:
               (1)  an application in a form and medium prescribed by
  the commissioner; and
               (2)  a nonrefundable fee in the amount established by
  commission rule.
         (c)  On request, the commissioner may permit a money services
  licensee or the person or group of persons acting in concert to
  submit some or all information required by the commissioner under
  Subsection (b)(1) without using the NMLS.
         (d)  The application required by Subsection (b)(1) must
  include information required by Section 152.105 for any new key
  individual that has not previously completed the requirements of
  Section 152.105 for the money services licensee.
         (e)  When an application for acquisition of control under
  this section appears to include all the items and address all of the
  matters that are required, the application is considered complete
  and the commissioner shall promptly notify the applicant in writing
  of the date on which the application was determined to be complete.
         (f)  The commissioner shall approve or deny the application
  not later than the 60th day after the completion date. If the
  application is not approved or denied before the 61st day after the
  completion date, the application is approved and the person or
  group of persons acting in concert are not prohibited from
  acquiring control. The commissioner may extend the application
  period for good cause.
         (g)  A determination by the commissioner under Subsection
  (e) that an application is complete and is accepted for processing
  is not an assessment of the substance of the application or of the
  sufficiency of the information provided. That determination means
  only that the application, on its face, appears to include all of
  the items and address all of the matters that are required under
  Subsection (b).
         (h)  When an application is filed and considered complete
  under Subsection (e), the commissioner shall investigate the
  financial condition and responsibility, financial and business
  experience, character, and general fitness of the person or group
  of persons acting in concert seeking to acquire control.
         (i)  The commissioner shall approve an acquisition of
  control under this section if the commissioner finds that:
               (1)  the requirements of Subsections (b) and (d) have
  been met, as applicable; and
               (2)  it is in the interest of the public to permit the
  person or group of persons acting in concert to control the money
  services licensee, considering:
                     (A)  the financial condition and responsibility,
  financial and business experience, competence, character, and
  general fitness of the person or group of persons acting in concert
  seeking to acquire control; and
                     (B)  the experience, competence, character, and
  general fitness of the key individuals and persons that would be in
  control of the money services licensee after the acquisition of
  control.
         (j)  If an applicant participates in or is subject to a
  multistate licensing process:
               (1)  the commissioner may accept the investigation
  results of a lead investigative state for the purpose of Subsection
  (h) if the lead investigative state has sufficient staffing,
  expertise, and minimum standards; or
               (2)  if this state is a lead investigative state, the
  commissioner may investigate the applicant under Subsection (h) and
  the time frames established by agreement through the multistate
  licensing process, provided that the time frame complies with the
  period in Subsection (f).
         (k)  If the commissioner determines that a proposed person in
  control fails to meet the qualifications or satisfy the
  requirements of this chapter, the commissioner shall inform the
  money services licensee and the proposed person in control in
  writing that the application is denied and state the reasons for the
  denial. The money services licensee or the proposed person in
  control may appeal the denial by filing a written request for a
  hearing with the commissioner not later than the 30th day after the
  date the notice is mailed. A hearing on the denial must be held not
  later than the 45th day after the date the commissioner receives the
  written request unless the administrative law judge extends the
  period for good cause or the parties agree to a later hearing date.
  The hearing is considered a contested case hearing and is subject to
  Section 152.451.
         (l)  The requirements of Subsections (a) and (b) do not apply
  to:
               (1)  a person who acts as a proxy for the sole purpose
  of voting at a designated meeting of the shareholders or holders of
  voting shares or voting interests of a money services licensee or a
  person in control of a money services licensee;
               (2)  a person who acquires control of a money services
  licensee by devise or descent;
               (3)  a person who acquires control of a money services
  licensee as a personal representative, custodian, guardian,
  conservator, or trustee, or as an officer appointed by a court of
  competent jurisdiction or by operation of law;
               (4)  a person who is exempt under Section 152.004(7);
               (5)  a person who the commissioner determines is not
  subject to Subsection (a) based on the public interest;
               (6)  a public offering of securities of a money
  services licensee or a person in control of a money services
  licensee; or
               (7)  an internal reorganization of a person in control
  of the money services licensee resulting in the same person
  remaining in control of the licensee.
         (m)  A person to whom Subsections (a) and (b) do not apply
  under Subsection (l)(2), (3), (4), (6), or (7) shall, in
  cooperation with the money services licensee, notify the
  commissioner not later than the 15th day after the date of the
  acquisition of control of the person's grounds for not complying
  with Subsection (a) or (b).
         Sec. 152.152.  STREAMLINED ACQUISITION OF CONTROL. (a) The
  requirements of Section 152.151 do not apply to a person who has
  complied with and received approval to engage in money services
  under this chapter or was identified as a person in control in a
  previous application filed with and approved by the commissioner or
  by an MSB-accredited state under a multistate licensing process,
  provided that:
               (1)  the person has not:
                     (A)  had a money services license revoked or
  suspended; or
                     (B)  controlled a money services licensee that has
  had a money services license revoked or suspended while the person
  was in control of the licensee in the previous five years;
               (2)  if the person is a money services licensee, the
  person:
                     (A)  is well managed; and
                     (B)  if a rating for compliance has been given to
  the person by an MSB-accredited state, received a satisfactory
  rating in its most recent examination;
               (3)  in the case of a money transmission licensee, the
  person to be acquired and the person acquiring control are both
  money transmission licensees projected to meet the requirements of
  Sections 152.351, 152.352, 152.354, and 152.355 after the
  acquisition of control is completed;
               (4)  in the case of a currency exchange licensee, the
  person to be acquired and the person acquiring control are both
  currency exchange licensees projected to meet the requirements of
  Sections 152.353 and 152.354 after the acquisition of control is
  completed;
               (5)  the money services licensee to be acquired will
  not implement any material changes to the licensee's business plan
  as a result of the acquisition of control, and if the person
  acquiring control is a money services licensee, the acquiring
  licensee also will not implement any material changes to its
  business plan as a result of the acquisition of control; and
               (6)  the person provides notice of the acquisition in
  cooperation with the money services licensee and attests to
  Subdivisions (1) through (5), as applicable, in a form and medium
  prescribed by the commissioner.
         (b)  If the notice under Subsection (a)(6) is not disapproved
  before the 31st day after the date on which the notice was
  determined to be complete, the notice is considered approved.
         (c)  Before filing an application for approval to acquire
  control of a money services licensee, a person may request in
  writing a determination from the commissioner as to whether the
  person would be considered a person in control of a money services
  licensee on consummation of a proposed transaction. If the
  commissioner determines that the person would not be a person in
  control of a money services licensee, the proposed transaction is
  not subject to the requirements of Section 152.151.
         (d)  If a multistate licensing process includes a
  determination under Subsection (c) and an applicant participates in
  or is subject to the multistate licensing process:
               (1)  the commissioner may accept the control
  determination of a lead investigative state with sufficient
  staffing, expertise, and minimum standards for the purpose of
  Subsection (c); or
               (2)  if this state is a lead investigative state, the
  commissioner may investigate the applicant under Subsection (c) and
  the time frames established by agreement through the multistate
  licensing process.
         Sec. 152.153.  NOTICE AND INFORMATION REQUIREMENTS FOR
  CHANGE OF KEY INDIVIDUALS. (a) A money services licensee adding or
  replacing a key individual shall provide:
               (1)  notice in a manner prescribed by the commissioner
  not later than the 15th day after the effective date of the key
  individual's appointment; and
               (2)  information as required by Section 152.105 not
  later than the 45th day after that effective date.
         (b)  Not later than the 90th day after the date on which
  notice provided under Subsection (a) is determined to be complete,
  the commissioner may issue a notice of disapproval of a key
  individual if it would not be in the best interests of the public or
  the customers of the money services licensee to permit the
  individual to be a key individual of the licensee, considering the
  competence, experience, character, or integrity of the individual.
         (c)  A notice of disapproval shall be sent to the money
  services licensee and the disapproved individual and must contain a
  statement of the basis for disapproval. A money services licensee
  may appeal a notice of disapproval by filing a written request for a
  hearing with the commissioner not later than the 30th day after the
  date the notice is mailed. A hearing on the denial must be held not
  later than the 45th day after the date the commissioner receives the
  written request unless the administrative law judge extends the
  period for good cause or the parties agree to a later hearing date.
  The hearing is considered a contested case hearing and is subject to
  Section 152.451.
         (d)  If the notice provided under Subsection (a) is not
  disapproved before the 91st day after the date on which the notice
  is determined to be complete, the key individual is considered
  approved.
         (e)  If a multistate licensing process includes a key
  individual notice review and disapproval process under this section
  and the money services licensee participates in or is subject to the
  multistate licensing process:
               (1)  the commissioner may accept the determination of
  another state if the investigating state has sufficient staffing,
  expertise, and minimum standards for the purposes of this section;
  or
               (2)  if this state is a lead investigative state, the
  commissioner may investigate the applicant in the same manner as
  for a determination under Subsection (b) and in accordance with the
  time frames established by agreement through the multistate
  licensing process.
  SUBCHAPTER E. REPORTING AND RECORDS
         Sec. 152.201.  MONEY TRANSMISSION REPORT. (a) Each money
  transmission licensee shall submit a report of condition not later
  than the 45th day after the end of the calendar quarter, or within
  an extended time as the commissioner may prescribe.
         (b)  The report of condition must include:
               (1)  the licensee's financial information;
               (2)  nationwide and state-specific money transmission
  services transaction information in every jurisdiction in the
  United States where the licensee is licensed to engage in money
  transmission;
               (3)  a report on the licensee's permissible
  investments;
               (4)  transaction destination country reporting for
  money received for transmission, if applicable; and
               (5)  any other information the commissioner reasonably
  requires with respect to the licensee.
         (c)  The commissioner may:
               (1)  use the NMLS for the submission of the report
  required by this section; and
               (2)  change or update the requirements of this section
  as necessary to carry out the purposes of this chapter and maintain
  consistency with NMLS reporting.
         (d)  The information required by Subsection (b)(4) may only
  be included in a report of condition submitted not later than the
  45th day after the end of the fourth calendar quarter.
         Sec. 152.202.  CURRENCY EXCHANGE REPORT. (a) A currency
  exchange licensee shall submit:
               (1)  the annual report required by Section
  152.107(d)(2), including a financial statement that may be audited
  or unaudited and that is dated as of the last day of the currency
  exchange licensee's fiscal year that ended in the immediately
  preceding calendar year;
               (2)  a quarterly interim financial statement and
  transaction report that reflects the licensee's financial
  condition and currency exchange services business as of the last
  day of the calendar quarter to which the statement and report relate
  and that are prepared not later than the 45th day after the end of
  the calendar quarter; and
               (3)  any other report required by rule of the
  commission or reasonably requested by the commissioner to determine
  compliance with this chapter.
         (b)  A currency exchange licensee shall file the statements
  and reports required under this section with the commissioner as
  required by this chapter, by commission rule, or as requested by the
  commissioner.
         (c)  On written application and for good cause shown, the
  commissioner may extend the time for preparing or filing a
  statement or report required under this section.
         Sec. 152.203.  FINANCIAL STATEMENTS. (a) A money services
  licensee shall, not later than the 90th day after the end of each
  fiscal year, or within an extended time prescribed by the
  commissioner, file with the commissioner:
               (1)  for a money transmission licensee, an audited
  unconsolidated financial statement of the licensee for the fiscal
  year prepared in accordance with United States generally accepted
  accounting principles;
               (2)  for a currency exchange licensee, a financial
  statement, audited or unaudited, dated as of the last day of the
  licensee's fiscal year that ended in the immediately preceding
  calendar year; and
               (3)  any other information as the commissioner may
  reasonably require.
         (b)  A financial statement required by Subsection (a)(1)
  must be prepared by an independent certified public accountant or
  independent public accountant who is satisfactory to the
  commissioner.
         (c)  An audited financial statement required by Subsection
  (a) must include or be accompanied by a certificate of opinion of
  the independent certified public accountant or independent public
  accountant that is satisfactory in form and content to the
  commissioner. If the certificate of opinion is qualified, the
  commissioner may order the money services licensee to take any
  action the commissioner finds necessary to enable the independent
  certified public accountant or independent public accountant to
  remove the qualification.
         Sec. 152.204.  AUTHORIZED DELEGATE REPORTING. (a) A money
  transmission licensee shall submit a report of authorized delegates
  not later than the 45th day after the end of each calendar quarter.
  The commissioner may use the NMLS for the submission of the report
  required by this section if NMLS functionality is consistent with
  the requirements of this section.
         (b)  The authorized delegate report must include for each
  authorized delegate:
               (1)  the authorized delegate's legal name;
               (2)  the authorized delegate's taxpayer employer
  identification number;
               (3)  the authorized delegate's principal provider
  identifier;
               (4)  the authorized delegate's physical address;
               (5)  the authorized delegate's mailing address;
               (6)  any business the authorized delegate conducts in
  other states;
               (7)  any fictitious or trade name the authorized
  delegate uses;
               (8)  a contact person name, phone number, and e-mail;
               (9)  a start date as the money transmission licensee's
  authorized delegate;
               (10)  an end date as the money transmission licensee's
  authorized delegate, if applicable; and
               (11)  any other information the commissioner
  reasonably requires with respect to the authorized delegate.
         Sec. 152.205.  REPORTS OF CERTAIN EVENTS. (a) A money
  services licensee shall file a report with the commissioner not
  later than the first business day after the licensee has reason to
  know of:
               (1)  the filing of a petition by or against the licensee
  under the United States Bankruptcy Code (11 U.S.C. Sections
  101-1532) for bankruptcy or reorganization;
               (2)  the filing of a petition by or against the licensee
  for receivership, the commencement of any other judicial or
  administrative proceeding for the licensee's dissolution or
  reorganization, or the making of a general assignment for the
  benefit of the licensee's creditors; or
               (3)  the commencement of a proceeding to revoke or
  suspend the licensee's license in a state or country in which the
  licensee engages in or is licensed to engage in money services
  business.
         (b)  A money services licensee shall file a report with the
  commissioner not later than the third business day after the
  licensee has reason to know of the occurrence of a felony charge or
  conviction of:
               (1)  the licensee or a key individual;
               (2)  a person in control of the licensee; or
               (3)  an authorized delegate.
         Sec. 152.206.  BANK SECRECY ACT REPORTS. A money services
  licensee and an authorized delegate shall file all reports required
  by federal currency reporting, record keeping, and suspicious
  activity reporting requirements as provided by the Bank Secrecy Act
  and other federal and state laws relating to money laundering. The
  timely filing of a complete and accurate report required under this
  section with the appropriate federal agency is considered compliant
  with the requirements of this section.
         Sec. 152.207.  RECORDS. (a) A money services licensee shall
  maintain the following records for determining its compliance with
  this chapter for at least five years:
               (1)  a general ledger posted at least monthly
  containing all asset, liability, capital, income, and expense
  accounts;
               (2)  bank statements and bank reconciliation records;
               (3)  for a money transmission licensee:
                     (A)  records of outstanding money transmission
  obligations;
                     (B)  records of each outstanding money
  transmission obligation paid within the five-year period;
                     (C)  records of each outstanding money
  transmission obligation sold; and
                     (D)  a list of the last known names and addresses
  of all of the licensee's authorized delegates;
               (4)  for a currency exchange licensee, a record of each
  currency exchange transaction; and
               (5)  any other records the commissioner reasonably
  requires by rule.
         (b)  The records required to be maintained by Subsection
  (a)(3)(C) may be maintained in any form of record.
         (c)  Records required to be maintained by Subsection (a) may
  be maintained outside this state if they are made accessible to the
  commissioner not later than the seventh business day after the
  commissioner sends notice in writing.
         (d)  All records maintained by a money services licensee as
  required by this section are open to examination by the
  commissioner under Section 152.057(a).
  SUBCHAPTER F. AUTHORIZED DELEGATES
         Sec. 152.251.  LIABILITY OF MONEY TRANSMISSION LICENSEE. A
  money transmission licensee is liable for the payment of all money
  or monetary value received for transmission directly or by an
  authorized delegate appointed under this subchapter.
         Sec. 152.252.  RELATIONSHIP BETWEEN MONEY TRANSMISSION
  LICENSEE AND AUTHORIZED DELEGATE. (a) In this section, "remit"
  means to make a direct payment of money to a money transmission
  licensee or the licensee's representative authorized to receive
  money or to deposit money in a bank in an account specified by the
  licensee.
         (b)  Before a money transmission licensee may conduct
  business through an authorized delegate or may allow a person to act
  as the licensee's authorized delegate, the licensee must:
               (1)  adopt, and update as necessary, written policies
  and procedures reasonably designed to ensure that the licensee's
  authorized delegate complies with applicable state and federal law;
               (2)  enter into a written contract appointing an
  authorized delegate that complies with Subsection (d); and
               (3)  conduct a reasonable risk-based background
  investigation sufficient for the licensee to determine whether the
  authorized delegate has complied with and will likely comply with
  applicable state and federal law.
         (c)  An authorized delegate shall operate in full compliance
  with this chapter.
         (d)  The written contract required by Subsection (b)(2) must
  be signed by the money transmission licensee and the authorized
  delegate and must, at a minimum:
               (1)  appoint the person signing the contract as the
  licensee's authorized delegate with the authority to conduct money
  transmission services on behalf of the licensee;
               (2)  provide the nature and scope of the relationship
  between the licensee and the authorized delegate and the respective
  rights and responsibilities of the parties;
               (3)  require the authorized delegate to agree to fully
  comply with all applicable state and federal laws, rules, and
  regulations pertaining to money transmission services, including
  this chapter and regulations implementing this chapter, relevant
  provisions of the Bank Secrecy Act, and the Patriot Act;
               (4)  require the authorized delegate to remit and
  handle money and monetary value in accordance with the terms of the
  contract between the licensee and the authorized delegate;
               (5)  impose a trust on money and monetary value net of
  fees received for money transmission for the benefit of the
  licensee;
               (6)  require the authorized delegate to prepare and
  maintain records as required by this chapter or regulations
  implementing this chapter, or as reasonably requested by the
  commissioner;
               (7)  acknowledge that the authorized delegate consents
  to examination or investigation by the commissioner;
               (8)  state that the licensee is subject to regulation
  by the commissioner and that, as part of that regulation, the
  commissioner may suspend or revoke an authorized delegate
  designation or require the licensee to terminate an authorized
  delegate designation; and
               (9)  acknowledge receipt of the written policies and
  procedures required under Subsection (b)(1).
         (e)  If a money transmission licensee's license is
  suspended, revoked, surrendered, or expired, the licensee must, not
  later than the fifth business day after the date the licensee's
  license is suspended, revoked, surrendered, or expired, provide
  documentation to the commissioner that the licensee has notified
  all applicable authorized delegates of the licensee whose names are
  in a record filed with the commissioner of the suspension,
  revocation, surrender, or expiration of a license. On suspension,
  revocation, surrender, or expiration of a license, applicable
  authorized delegates shall immediately cease to provide money
  transmission services as an authorized delegate of the money
  transmission licensee.
         (f)  An authorized delegate of a money transmission licensee
  holds in trust for the benefit of the licensee all money net of fees
  received from money transmission. If an authorized delegate
  commingles any funds received from money transmission with any
  other funds or property owned or controlled by the authorized
  delegate, all commingled funds and other property shall be
  considered held in trust in favor of the money transmission
  licensee in an amount equal to the amount of money net of fees
  received from money transmission.
         (g)  An authorized delegate may not use a subdelegate to
  conduct money transmission on behalf of a money transmission
  licensee.
         Sec. 152.253.  DISCLOSURE REQUIREMENTS. (a) A money
  transmission licensee's name and mailing address or telephone
  number must be provided to the purchaser in connection with each
  money transmission transaction conducted by the licensee directly
  or through an authorized delegate.
         (b)  A money transmission licensee receiving currency or an
  instrument payable in currency for transmission shall comply with
  Chapter 278.
         Sec. 152.254.  UNAUTHORIZED ACTIVITIES. A person may not
  engage in the business of money transmission on behalf of a person
  not licensed under this chapter or not exempt under Section
  152.004. A person who engages in unauthorized activity provides
  money transmission to the same extent as if the person were a money
  transmission licensee, and shall be jointly and severally liable
  with the unlicensed or nonexempt person. Any business for which a
  license is required under this chapter that is conducted by an
  authorized delegate outside the scope of authority conferred in the
  contract between the authorized delegate and the licensee is
  unlicensed activity.
  SUBCHAPTER G. TIMELY TRANSMISSION, REFUNDS, AND DISCLOSURES BY
  MONEY TRANSMISSION LICENSEE
         Sec. 152.301.  TIMELY TRANSMISSION. (a) A money
  transmission licensee shall forward all money received for money
  transmission in accordance with the terms of the agreement between
  the licensee and the sender unless the licensee has a reasonable
  belief or a reasonable basis to believe that the sender may be a
  victim of fraud or that a crime or violation of law, rule, or
  regulation has occurred, is occurring, or may occur.
         (b)  If a money transmission licensee fails to forward money
  received for money transmission in accordance with this section,
  the licensee must respond to inquiries by the sender with the reason
  for the failure unless providing a response would violate a state or
  federal law, rule, or regulation.
         Sec. 152.302.  REFUNDS. (a) This section does not apply to
  money received for money transmission that is:
               (1)  subject to the federal requirements for remittance
  transfers under 12 C.F.R. Part 1005, Subpart B; or
               (2)  under a written agreement between a money
  transmission licensee and a payee to process payments for goods or
  services provided by the payee.
         (b)  A money transmission licensee shall refund any and all
  money received for money transmission services to the sender not
  later than the 10th day after the date of receipt of the sender's
  written request for a refund unless:
               (1)  the money has been forwarded not later than the
  10th day after the date on which the money was received for
  transmission;
               (2)  instructions have been given committing an
  equivalent amount of money to the person designated by the sender
  not later than the 10th day after the date on which the money was
  received for transmission;
               (3)  an agreement between the licensee and the sender
  instructs the licensee to forward the money at a time that is later
  than the 10th day after the date on which the money was received for
  transmission;
               (4)  the refund is requested for a transaction that the
  licensee has not completed based on a reasonable belief or a
  reasonable basis to believe that a crime or violation of law, rule,
  or regulation has occurred, is occurring, or may occur; or
               (5)  the refund request does not enable a money
  transmission licensee to identify:
                     (A)  the sender's name and address or telephone
  number; or
                     (B)  the particular transaction to be refunded in
  the event the sender has multiple transactions outstanding.
         (c)  If funds have not yet been forwarded in accordance with
  the terms of an agreement between a money transmission licensee and
  a sender under Subsection (b)(3), the licensee shall issue a refund
  in accordance with the other provisions of this section.
         Sec. 152.303.  RECEIPTS. (a) This section does not apply
  to:
               (1)  money received for money transmission subject to
  the federal requirements for remittance transfers under 12 C.F.R.
  Part 1005, Subpart B;
               (2)  money received for money transmission that is not
  primarily for personal, family, or household purposes;
               (3)  money received for money transmission under a
  written agreement between a money transmission licensee and a payee
  to process payments for goods or services provided by the payee; or
               (4)  payroll processing services.
         (b)  In this section, "receipt" means a paper receipt,
  electronic record, or other written confirmation.
         (c)  For a transaction conducted in person, a receipt may be
  provided electronically if the sender requests or agrees to receive
  an electronic receipt. For a transaction conducted electronically
  or by phone, a receipt may be provided electronically. All
  electronic receipts shall be provided in a retainable form.
         (d)  A money transmission licensee or the licensee's
  authorized delegate shall provide the sender a receipt for money
  received for money transmission services.
         (e)  A receipt must contain, as applicable:
               (1)  the name of the sender;
               (2)  the name of the designated recipient;
               (3)  the date of the transaction;
               (4)  the unique transaction or identification number;
               (5)  the name of the money transmission licensee, the
  licensee's NMLS Unique ID, the licensee's business address, and the
  licensee's customer service telephone number;
               (6)  the amount of the transaction in United States
  dollars;
               (7)  any fee charged by the money transmission licensee
  to the sender for the transaction; and
               (8)  any taxes collected by the money transmission
  licensee from the sender for the transaction.
         (f)  The receipt required by this section must be in English
  and in a language other than English if the money transmission
  licensee or authorized delegate principally uses that language to
  advertise, solicit, or negotiate, either orally or in writing, for
  a transaction conducted in person, electronically, or by phone.
         Sec. 152.304.  DISCLOSURES FOR PAYROLL PROCESSING SERVICES.
  (a) A money transmission licensee that provides payroll processing
  services shall:
               (1)  issue reports to clients detailing client payroll
  obligations in advance of the payroll funds being deducted from an
  account; and
               (2)  make available worker pay stubs or an equivalent
  statement to workers.
         (b)  Subsection (a) does not apply to a money transmission
  licensee providing payroll processing services where the
  licensee's client designates the intended recipients to the
  licensee and is responsible for providing the disclosures required
  by Subsection (a)(2).
  SUBCHAPTER H. PRUDENTIAL STANDARDS
         Sec. 152.351.  NET WORTH OF MONEY TRANSMISSION LICENSEE.
  (a) A money transmission licensee under this chapter shall
  maintain at all times a tangible net worth in an amount not less
  than:
               (1)  for a licensee with total assets in an amount not
  greater than $100 million, the greater of:
                     (A)  $100,000; or
                     (B)  3 percent of the value of the licensee's
  total assets;
               (2)  for a licensee with total assets in an amount
  greater than $100 million and not greater than $1 billion, the sum
  of $3 million and 2 percent of the additional assets in excess of
  $100 million; and
               (3)  for a licensee with total assets in an amount
  greater than $1 billion, the sum of $21 million and 0.5 percent of
  the additional assets in excess of $1 billion.
         (b)  Tangible net worth under this section must be
  demonstrated at the initial application by the applicant's most
  recent audited or unaudited financial statements under Section
  152.104(c)(6).
         (c)  Notwithstanding other provisions of this section, the
  commissioner may, for good cause shown, exempt a money transmission
  licensee wholly or partly from the requirements of this section.
         Sec. 152.352.  SECURITY FOR MONEY TRANSMISSION LICENSEE.
  (a) A money transmission licensee shall at all times maintain
  security consisting of a surety bond in a form satisfactory to the
  commissioner. With the commissioner's approval, a money
  transmission licensee may maintain a deposit in lieu of a bond under
  this section.
         (b)  The amount of the required security for a money
  transmission licensee under this section is:
               (1)  for a licensee with a tangible net worth in an
  amount not greater than 10 percent of the licensee's total assets,
  the greater of:
                     (A)  $100,000; or
                     (B)  100 percent of the licensee's average daily
  money transmission liability in this state for the most recently
  completed three-month period, up to a maximum amount of $500,000;
  or
               (2)  for a licensee with a tangible net worth in an
  amount greater than 10 percent of the licensee's total assets,
  $100,000.
         (c)  A money transmission licensee that maintains a bond in
  the maximum amount provided for under Subsection (b) may not be
  required to calculate the licensee's average daily money
  transmission liability in this state for purposes of this section.
         (d)  A money transmission licensee may exceed the maximum
  required bond amount under Section 152.356(a)(5).
         Sec. 152.353.  SECURITY FOR CURRENCY EXCHANGE LICENSEE. (a)
  A currency exchange licensee shall at all times maintain security
  in the amount applicable to the licensee under this section. The
  security must satisfy the requirements of and is subject to Section
  152.354.
         (b)  A currency exchange licensee shall maintain security in
  the amount of $2,500 if the licensee conducts business with persons
  located in this state exclusively at one or more physical locations
  through in-person, contemporaneous transactions.
         (c)  Except as provided by Subsection (e), if Subsection (b)
  does not apply to a currency exchange licensee, the licensee shall
  maintain security in an amount not less than the greater of:
               (1)  $2,500; or
               (2)  an amount equal to one percent of the licensee's
  total dollar volume of currency exchange business in this state for
  the preceding year.
         (d)  For purposes of demonstrating prospective compliance
  with this section under Section 152.107(c), an applicant for a
  currency exchange license may use the applicant's projected total
  dollar volume of currency exchange business in this state for the
  first year of licensure to determine the amount under Subsection
  (c)(2).
         (e)  The maximum amount of security that may be required
  under this section is $1 million.
         Sec. 152.354.  ADDITIONAL SECURITY REQUIREMENTS. (a) In
  addition to the requirements of Section 152.352 or 152.353, a
  security under this subchapter must:
               (1)  be in a form satisfactory to the commissioner;
               (2)  be payable to any claimant or to the commissioner,
  on behalf of a claimant or this state, for any liability arising out
  of a money transmission licensee's money transmission business in
  this state, incurred under, subject to, or by virtue of this
  chapter; and
               (3)  if the security is a bond, be issued by a qualified
  surety company authorized to engage in business in this state and
  acceptable to the commissioner or, if the security is an
  irrevocable letter of credit, be issued by a financial institution
  acceptable to the commissioner.
         (b)  A claimant may bring suit directly on the security, or
  the commissioner may bring suit on behalf of the claimant or the
  state, either in one action or in successive actions.
         (c)  The commissioner may collect from the security or
  proceeds of the security any delinquent fee, assessment, cost,
  penalty, or other amount imposed on and owed by a money services
  licensee. If the security is a surety bond, the commissioner shall
  give the surety reasonable prior notice of a hearing to impose an
  administrative penalty against the money services licensee,
  provided that a surety may not be considered an interested,
  aggrieved, or affected person for purposes of an administrative
  proceeding under Section 152.451 of this code or Chapter 2001,
  Government Code.
         (d)  A security remains in effect until canceled, which may
  occur only after providing 30 days' written notice to the
  commissioner. Cancellation does not affect any liability incurred
  or accrued during the period covered by the security.
         (e)  A security must cover claims for at least five years
  after the money services licensee surrenders the licensee's license
  or otherwise ceases to engage in activities for which a license is
  required under this subchapter. However, the commissioner may
  permit the amount of the security to be reduced or eliminated before
  that time to the extent that the amount of the money services
  licensee's obligations to the department and to purchasers in this
  state is reduced. The commissioner may permit a money services
  licensee to substitute another form of security when the licensee
  ceases to provide money transmission in this state.
         (f)  If the commissioner at any time reasonably determines
  that the required security is insecure, deficient in amount, or
  exhausted in whole or in part, the commissioner by written order
  shall require the money services licensee to file or make new or
  additional security to comply with this section.
         (g)  Instead of providing all or part of the amount of the
  security required by this section, an applicant for a money
  services license or a money services licensee may deposit, with a
  financial institution possessing trust powers that is authorized to
  conduct a trust business in this state and is acceptable to the
  commissioner, an aggregate amount of United States currency,
  certificates of deposit, or other cash equivalents that equals the
  total amount of the required security or the remaining part of the
  security.
         (h)  A deposit under Subsection (g):
               (1)  must be held in trust in the name of and be pledged
  to the commissioner;
               (2)  must secure the same obligations as the security;
  and
               (3)  is subject to other conditions and terms the
  commissioner may reasonably require.
         (i)  The security is considered by operation of law to be
  held in trust for the benefit of this state and any individual to
  whom an obligation arising under this chapter is owed, and may not
  be considered an asset or property of the money services licensee in
  the event of bankruptcy, receivership, or a claim against the
  licensee unrelated to the licensee's obligations under this
  chapter.
         Sec. 152.355.  MAINTENANCE OF PERMISSIBLE INVESTMENTS BY
  MONEY TRANSMISSION LICENSEE. (a) A money transmission licensee
  shall maintain at all times permissible investments that have a
  market value computed in accordance with United States generally
  accepted accounting principles of not less than the aggregate
  amount of all of its outstanding money transmission obligations.
         (b)  Except for permissible investments allowed under
  Section 152.356(a), the commissioner, with respect to a money
  transmission licensee, may limit the extent to which a specific
  investment maintained by a licensee within a class of permissible
  investments may be considered a permissible investment, if the
  specific investment represents undue risk to customers not
  reflected in the market value of investments.
         (c)  Permissible investments are held in trust for the
  benefit of the purchasers and holders of the money transmission
  licensee's outstanding money transmission obligations in the event
  of:
               (1)  insolvency;
               (2)  the filing of a petition by or against the licensee
  under the United States Bankruptcy Code (11 U.S.C. Sections
  101-1532) for bankruptcy or reorganization;
               (3)  the filing of a petition by or against the licensee
  for receivership;
               (4)  the commencement of any other judicial or
  administrative proceeding for the licensee's dissolution or
  reorganization; or
               (5)  an action by a creditor who is not a beneficiary of
  the trust under this section against the licensee.
         (d)  A permissible investment impressed with a trust under
  Subsection (c) is not subject to attachment, levy of execution, or
  sequestration by order of any court, except for a beneficiary of the
  trust.
         (e)  On the establishment of a trust under Subsection (c) or
  when any funds are drawn on a letter of credit under Section
  152.356(a)(4), the commissioner shall notify the applicable
  regulator of each state in which the money transmission licensee is
  licensed to engage in money transmission services of the
  establishment of the trust or the funds drawn on the letter of
  credit, as applicable.  Notice under this subsection is considered
  to be given if performed under a multistate agreement or through the
  NMLS.
         (f)  Funds drawn on a letter of credit, and any other
  permissible investments held in trust for the benefit of the
  purchasers and holders of the money transmission licensee's
  outstanding money transmission obligations, are considered held in
  trust for the benefit of those purchasers and holders on a pro rata
  and equitable basis in accordance with statutes under which
  permissible investments are required to be held in this state, and
  other states, as applicable.
         (g)  A trust established under Subsection (c) shall be
  terminated on extinguishment of all of the money transmission
  licensee's outstanding money transmission obligations.
         (h)  The commissioner may allow other types of investments
  that the commissioner determines are of sufficient liquidity and
  quality to be a permissible investment.  The commissioner may
  participate in efforts with other state regulators to determine
  that other types of investments are of sufficient liquidity and
  quality to be a permissible investment.
         Sec. 152.356.  TYPES OF PERMISSIBLE INVESTMENTS. (a)  The
  following investments are permissible under Section 152.355:
               (1)  cash, including:
                     (A)  demand deposits;
                     (B)  savings deposits;
                     (C)  funds in accounts under Paragraphs (A) and
  (B) held for the benefit of a money transmission licensee's
  customers in a federally insured depository financial institution;
                     (D)  cash equivalents, including automated
  clearing house items:
                           (i)  in transit to the money transmission
  licensee; and
                           (ii)  in transit to a payee;
                     (E)  international wires in transit to a payee;
                     (F)  cash in transit via armored car;
                     (G)  cash in smart safes;
                     (H)  cash in money transmission licensee-owned
  locations;
                     (I)  debit card or credit card-funded
  transmission receivables owed by a bank; or
                     (J)  money market mutual funds rated "AAA" by S&P
  Global or an equivalent rating from an eligible rating service;
               (2)  certificates of deposit or senior debt obligations
  of an insured depository institution, as defined by Section 3,
  Federal Deposit Insurance Act (12 U.S.C. Section 1813) or the
  Federal Credit Union Act (12 U.S.C. Section 1781);
               (3)  an obligation:
                     (A)  of the United States or a commission, agency,
  or instrumentality of the United States;
                     (B)  that is guaranteed fully as to principal and
  interest by the United States; or
                     (C)  of a state or a governmental subdivision,
  agency, or instrumentality of the United States;
               (4)  the full drawable amount of an irrevocable standby
  letter of credit for which the stated beneficiary is the
  commissioner that stipulates that the commissioner need only draw a
  sight draft under the letter of credit and present it to obtain
  funds up to the letter of credit amount on presentation of the items
  required by Subsection (f);
               (5)  100 percent of the surety bond or deposit provided
  for under Section 152.352 that exceeds the average daily money
  transmission liability in this state; or
               (6)  stablecoin, to the extent of outstanding
  transmission obligations received by the licensee in the same kind
  of stablecoin.
         (b)  Unless permitted by the commissioner to exceed the limit
  provided, the following investments are permissible under Section
  152.355 to the extent specified:
               (1)  receivables that are payable to a money
  transmission licensee from its authorized delegates in the ordinary
  course of business that are less than seven days old are permissible
  up to the amount of 50 percent of the aggregate value of the
  licensee's total permissible investments;
               (2)  receivables under Subdivision (1) that are payable
  to a money transmission licensee from a single authorized delegate
  in the ordinary course of business are permissible up to the amount
  of 10 percent of the aggregate value of the licensee's total
  permissible investments;
               (3)  the following investments are permissible up to
  the amount of 20 percent of the aggregate value of a money
  transmission licensee's total permissible investments for the
  amount under each paragraph and the amount of 50 percent of the
  aggregate value of the licensee's total permissible investments for
  the total amount under this subdivision:
                     (A)  a short-term investment of not more than six
  months bearing an eligible rating;
                     (B)  commercial paper bearing an eligible rating;
                     (C)  a bill, note, bond, or debenture bearing an
  eligible rating;
                     (D)  a United States tri-party repurchase
  agreement collateralized at 100 percent or more with United States
  or agency security, municipal bonds, or other security bearing an
  eligible rating;
                     (E)  a money market mutual fund rated less than
  "AAA" and not less than "A-" by S&P Global, or the equivalent from
  an eligible rating service; and
                     (F)  a mutual fund or other investment fund
  composed solely and exclusively of one or more permissible
  investments listed in Subsections (a)(1)-(3); and
               (4)  cash, including demand deposits, savings
  deposits, and funds in an account held for the benefit of a money
  transmission licensee's customers at a foreign depository
  institution is permissible up to the amount of 10 percent of the
  aggregate value of the licensee's total permissible investments if:
                     (A)  the licensee has received a satisfactory
  rating in its most recent examination; and
                     (B)  the foreign depository institution:
                           (i)  has an eligible rating;
                           (ii)  is registered under the Foreign
  Account Tax Compliance Act (Pub. L. No. 111-147);
                           (iii)  is not located in a country subject to
  sanctions from the Office of Foreign Assets Control; and
                           (iv)  is not located in a jurisdiction
  designated high-risk or uncooperative by the Financial Action Task
  Force.
         (c)  A letter of credit under Subsection (a)(4) must:
               (1)  be issued by:
                     (A)  a federally insured depository financial
  institution;
                     (B)  a foreign bank authorized under federal law
  to maintain a federal agency or federal branch office in a state or
  states; or
                     (C)  a foreign bank that is authorized under state
  law to maintain a branch in a state that:
                           (i)  bears an eligible rating or whose
  parent company bears an eligible rating;
                           (ii)  is regulated, supervised, and examined
  by United States federal or state authorities having regulatory
  authority over banks, credit unions, and trust companies; and
                           (iii)  is approved by the commissioner;
               (2)  be irrevocable and unconditional and indicate that
  it is not subject to any condition or qualifications outside of the
  letter of credit;
               (3)  not contain reference to any other agreement,
  document or entity, or otherwise provide for a security interest in
  the money transmission licensee;
               (4)  contain an issue date and expiration date; and
               (5)  expressly provide for automatic extension without
  a written amendment for an additional period of one year from a
  current or future expiration date, unless the issuer of the letter
  of credit notifies the commissioner in writing by certified or
  registered mail, courier mail, or other receipted means, not more
  than the 60th day before any expiration date, that the irrevocable
  letter of credit will not be extended.
         (d)  On receipt of a notice of expiration or non-extension of
  a letter of credit issued under Subsection (c)(5), the commissioner
  shall require a money transmission licensee to demonstrate to the
  satisfaction of the commissioner, not later than the 15th day
  before expiration, that the licensee maintains and will maintain
  permissible investments in accordance with Section 152.355 after
  the letter of credit expires.
         (e)  If the money transmission licensee is not able to
  satisfactorily demonstrate to the commissioner that the licensee
  will maintain permissible investments under Subsection (d), the
  commissioner may draw on the letter of credit in an amount up to the
  amount necessary to meet the licensee's requirements to maintain
  permissible investments in accordance with Section 152.355.  The
  commissioner shall offset the draw against the money transmission
  licensee's outstanding money transmission obligations.  The
  commissioner or the commissioner's designated agent shall hold
  drawn funds in trust to the extent authorized by law as agent for
  the benefit of the purchasers and holders of the money transmission
  licensee's outstanding money transmission obligations.
         (f)  A letter of credit under Subsection (a)(4) must provide
  that the issuer of the letter of credit will honor, at sight, a
  presentation made by the commissioner to the issuer on or before the
  expiration date of the letter of credit of:
               (1)  the original letter of credit, including any
  amendments; and
               (2)  a written statement from the commissioner stating
  that:
                     (A)  a petition has been filed by or against the
  money transmission licensee under the United States Bankruptcy Code
  (11 U.S.C. Sections 101-1532) for bankruptcy or reorganization;
                     (B)  a petition has been filed by or against the
  money transmission licensee for receivership, or the commencement
  of any other judicial or administrative proceeding for the
  licensee's dissolution or reorganization;
                     (C)  a money transmission licensee's assets have
  been seized by the commissioner under an emergency order issued in
  accordance with applicable law on the basis of an action,
  violation, or condition that has caused or is likely to cause the
  insolvency of the licensee; or
                     (D)  the commissioner has received notice of
  expiration or non-extension of a letter of credit under Subsection
  (c)(5), and the money transmission licensee failed to demonstrate
  to the satisfaction of the commissioner under Subsection (d) that
  the licensee will maintain permissible investments in accordance
  with Section 152.355 on the expiration or non-extension of the
  letter of credit.
         (g)  The commissioner may designate an agent to serve on the
  commissioner's behalf as beneficiary to a letter of credit if the
  agent and letter of credit meet requirements established by the
  commissioner.  The commissioner's agent may serve as agent for
  multiple licensing authorities for a single irrevocable letter of
  credit if the proceeds of the drawable amount for the purposes of
  Subsection (a)(4) are assigned to the commissioner.
         (h)  The commissioner may participate in multistate
  processes designed to facilitate the issuance and administration of
  letters of credit, including but not limited to services provided
  by the NMLS and State Regulatory Registry, LLC.
  SUBCHAPTER I.  ENFORCEMENT
         Sec. 152.401.  INJUNCTIVE RELIEF. (a)  If a person appears
  to have violated, or if reasonable cause exists to believe that a
  person is likely to violate, this chapter or a rule adopted under
  this chapter, the following persons may bring an action for
  injunctive relief to enjoin the violation or enforce compliance
  with the provision:
               (1)  the commissioner, through the attorney general;
               (2)  the attorney general;
               (3)  the district attorney of Travis County; or
               (4)  the prosecuting attorney of the county in which
  the violation is alleged to have occurred.
         (b)  In addition to the authority granted to the commissioner
  under Subsection (a), the commissioner, through the attorney
  general, may bring an action for injunctive relief if the
  commissioner has reason to believe that a person has violated or is
  likely to violate an order of the commissioner issued under this
  chapter.
         (c)  An action for injunctive relief brought by the
  commissioner, the attorney general, or the district attorney of
  Travis County under Subsection (a), or brought by the commissioner
  under Subsection (b), must be brought in a district court in Travis
  County.  An action brought by a prosecuting attorney under
  Subsection (a)(4) must be brought in a district court in the county
  in which all or part of the violation is alleged to have occurred.
         (d)  On a proper showing, the court may issue a restraining
  order, an order freezing assets, a preliminary or permanent
  injunction, or a writ of mandate, or may appoint a receiver for the
  defendant or the defendant's assets.
         (e)  A receiver appointed by the court under Subsection (d)
  may, with approval of the court, exercise all of the powers of the
  defendant's directors, officers, partners, trustees, or persons
  who exercise similar powers and perform similar duties.
         (f)  An action brought under this section may include a claim
  for ancillary relief, including a claim by the commissioner for
  costs or civil penalties authorized under this chapter, or for
  restitution or damages on behalf of the persons injured by the act
  constituting the subject matter of the action, and the court has
  jurisdiction to award that relief.
         Sec. 152.402.  CEASE AND DESIST ORDERS FOR UNLICENSED
  PERSONS. (a)  If the commissioner has reason to believe that an
  unlicensed person has engaged or is likely to engage in an activity
  for which a license is required under this chapter, the
  commissioner may order the person to cease and desist from the
  violation until the person is issued a license under this chapter.  
  The commissioner's order is subject to Section 152.409, unless the
  order is issued as an emergency order.  The commissioner may issue
  an emergency cease and desist order under Section 152.410 if the
  commissioner finds that the person's violation or likely violation
  threatens immediate and irreparable harm to the public.
         (b)  A cease and desist order under this section may require
  the unlicensed person to take affirmative action to correct any
  condition resulting from or contributing to the activity or
  violation, including the payment of restitution to each resident of
  this state damaged by the violation.
         Sec. 152.403.  SUSPENSION AND REVOCATION OF MONEY SERVICES
  LICENSE. (a)  The commissioner shall revoke a money services
  license if the commissioner finds that:
               (1)  the money services licensee does not provide the
  security required under this chapter; or
               (2)  for a money transmission licensee, the net worth
  of the licensee is less than the amount required under this chapter.
         (b)  The commissioner may suspend or revoke a money services
  license or order a money transmission licensee to revoke the
  designation of an authorized delegate if the commissioner has
  reason to believe that:
               (1)  the money services licensee has violated this
  chapter, a rule adopted or order issued under this chapter, a
  written agreement entered into with the department or commissioner,
  or any other state or federal law applicable to the licensee's money
  services business;
               (2)  the money services licensee has refused to permit
  or has not cooperated with an examination or investigation
  authorized by this chapter;
               (3)  the money services licensee has engaged in fraud,
  knowing misrepresentation, deceit, or gross negligence in
  connection with the operation of the licensee's money services
  business or any transaction subject to this chapter;
               (4)  an authorized delegate of the money transmission
  licensee has knowingly violated this chapter, a rule adopted or
  order issued under this chapter, or a state or federal
  anti-money-laundering or terrorist funding law, and the licensee
  knows or should have known of the violation and has failed to make a
  reasonable effort to prevent or correct the violation;
               (5)  the competence, experience, character, or general
  fitness of the money services licensee or the authorized delegate
  of a money transmission licensee, or a principal of, person in
  control of, or responsible person of a money services licensee or
  authorized delegate of a money transmission licensee, indicates
  that it is not in the public interest to permit the licensee or
  authorized delegate to provide money services;
               (6)  the money services licensee has engaged in an
  unsafe or unsound act or practice or has conducted business in an
  unsafe or unsound manner;
               (7)  the money services licensee has suspended payment
  of the licensee's obligations, made a general assignment for the
  benefit of the licensee's creditors, or admitted in writing the
  licensee's inability to pay debts of the licensee as they become
  due;
               (8)  the money transmission licensee has failed to
  terminate the authority of an authorized delegate after the
  commissioner has issued and served on the licensee a final order
  finding that the authorized delegate has violated this chapter;
               (9)  a fact or condition exists that, if it had been
  known at the time the money services licensee applied for the
  license, would have been grounds for denying the application;
               (10)  the money services licensee has engaged in false,
  misleading, or deceptive advertising;
               (11)  the money services licensee has failed to pay a
  judgment entered in favor of a claimant or creditor in an action
  arising out of the licensee's activities under this chapter not
  later than the 30th day after the date the judgment becomes final or
  not later than the 30th day after the date the stay of execution
  expires or is terminated, as applicable;
               (12)  the money services licensee has knowingly made a
  material misstatement or has suppressed or withheld material
  information on an application, request for approval, report, or
  other document required to be filed with the department under this
  chapter; or
               (13)  the money services licensee has committed a
  breach of trust or of a fiduciary duty.
         (c)  In determining whether a money services licensee has
  engaged in an unsafe or unsound act or practice or has conducted
  business in an unsafe or unsound manner, the commissioner may
  consider factors that include:
               (1)  the size and condition of the licensee's provision
  of money services;
               (2)  the magnitude of the loss or potential loss;
               (3)  the gravity of the violation of this chapter or
  rule adopted or order issued under this chapter;
               (4)  any action taken against the licensee by this
  state, another state, or the federal government; and
               (5)  the previous conduct of the licensee.
         (d)  The commissioner's order suspending or revoking a money
  services license or directing a money transmission licensee to
  revoke the designation of an authorized delegate is subject to
  Section 152.409, unless the order is issued as an emergency order.  
  The commissioner may issue an emergency order suspending a money
  services license or directing a money transmission licensee to
  revoke the designation of an authorized delegate in accordance with
  Section 152.410 if the commissioner finds that the factors
  identified in Section 152.410(b) exist.
         Sec. 152.404.  SUSPENSION AND REVOCATION OF AUTHORIZED
  DELEGATE DESIGNATION. (a)  The commissioner may suspend or revoke
  the designation of an authorized delegate by a money transmission
  licensee if the commissioner has reason to believe that:
               (1)  the authorized delegate has violated this chapter,
  a rule adopted or order issued under this chapter, a written
  agreement entered into with the commissioner or the department, or
  any other state or federal law applicable to a money transmission
  business;
               (2)  the authorized delegate has refused to permit or
  has not cooperated with an examination or investigation under this
  chapter;
               (3)  the authorized delegate has engaged in fraud,
  knowing misrepresentation, deceit, gross negligence, or an unfair
  or deceptive act or practice in connection with the operation of the
  delegate's business on behalf of the money transmission licensee or
  any transaction subject to this chapter;
               (4)  the competence, experience, character, or general
  fitness of the authorized delegate, or a principal of, person in
  control of, or responsible person of the authorized delegate,
  indicates that it is not in the public interest to permit the
  authorized delegate to provide money transmission;
               (5)  the authorized delegate has engaged in an unsafe
  or unsound act or practice or conducted business in an unsafe and
  unsound manner;
               (6)  the authorized delegate, or a principal or
  responsible person of the authorized delegate, is listed on the
  Specially Designated Nationals and Blocked Persons List prepared by
  the United States Department of the Treasury as a potential threat
  to commit terrorist acts or to fund terrorist acts; or
               (7)  the authorized delegate, or a principal or
  responsible person of the authorized delegate, has been convicted
  of a state or federal anti-money-laundering or terrorist funding
  law.
         (b)  In determining whether an authorized delegate has
  engaged in an unsafe or unsound act or practice or conducted
  business in an unsafe or unsound manner, the commissioner may
  consider factors that include:
               (1)  the size and condition of the authorized
  delegate's provision of money transmission;
               (2)  the magnitude of the loss or potential loss;
               (3)  the gravity of the violation of this chapter or
  rule adopted or order issued under this chapter;
               (4)  any action taken against the authorized delegate
  by this state, another state, or the federal government; and
               (5)  the previous conduct of the authorized delegate.
         (c)  The commissioner's order suspending or revoking the
  designation of an authorized delegate is subject to Section
  152.409, unless the order is issued as an emergency order.  The
  commissioner may issue an emergency order suspending the
  designation of an authorized delegate in accordance with Section
  152.410 if the commissioner finds that the factors identified in
  Section 152.410(b) exist.
         Sec. 152.405.  CEASE AND DESIST ORDERS FOR MONEY SERVICES
  LICENSEE OR AUTHORIZED DELEGATE. (a)  The commissioner may issue an
  order to cease and desist if the commissioner finds that:
               (1)  an action, violation, or condition listed in
  Section 152.403 or 152.404 exists with respect to a money services
  licensee or authorized delegate; and
               (2)  a cease and desist order is necessary to protect
  the interests of the money services licensee, the purchasers of the
  licensee's money services, or the public.
         (b)  A cease and desist order may require a money services
  licensee or authorized delegate to cease and desist from the action
  or violation or to take affirmative action to correct any condition
  resulting from or contributing to the action or violation, and the
  requirements of the order may apply to a principal or responsible
  person of the licensee or authorized delegate.
         (c)  The cease and desist order is subject to Section
  152.409, unless the order is issued as an emergency order.  The
  commissioner may issue an emergency cease and desist order in
  accordance with Section 152.410 if the commissioner finds that the
  factors identified in Section 152.410(b) exist.
         Sec. 152.406.  CONSENT ORDERS. (a)  The commissioner may
  enter into a consent order at any time with a person to resolve a
  matter arising under this chapter or a rule adopted or order issued
  under this chapter.
         (b)  A consent order must be signed by the person to whom the
  order is issued or by the person's authorized representative and
  must indicate agreement with the terms contained in the order.  
  However, a consent order may provide that the order does not
  constitute an admission by a person that the person has violated
  this chapter or a rule adopted or order issued under this chapter.
         (c)  A consent order is a final order and may not be appealed.
         Sec. 152.407.  ADMINISTRATIVE PENALTY. (a)  After notice
  and hearing, the commissioner may assess an administrative penalty
  against a person who:
               (1)  has violated this chapter or a rule adopted or
  order issued under this chapter and has failed to correct the
  violation not later than the 30th day after the date the department
  sends written notice of the violation to the person;
               (2)  if the person is a money services licensee, has
  engaged in conduct described by Section 152.403;
               (3)  has engaged in a pattern of violations; or
               (4)  has demonstrated wilful disregard for the
  requirements of this chapter, the rules adopted under this chapter,
  or an order issued under this chapter.
         (b)  A violation corrected after a person receives written
  notice from the department of the violation may be considered for
  purposes of determining whether a person has engaged in a pattern of
  violations under Subsection (a)(3) or demonstrated wilful
  disregard under Subsection (a)(4).
         (c)  The amount of the penalty may not exceed $5,000 for each
  violation or, in the case of a continuing violation, $5,000 for each
  day that the violation continues.  Each transaction in violation of
  this chapter and each day that a violation continues is a separate
  violation.
         (d)  In determining the amount of the penalty, the
  commissioner shall consider factors that include the seriousness of
  the violation, the person's compliance history, and the person's
  good faith in attempting to comply with this chapter, provided that
  if the person is found to have demonstrated wilful disregard under
  Subsection (a)(4), the trier of fact may recommend that the
  commissioner impose the maximum administrative penalty permitted
  under Subsection (c).
         (e)  A hearing to assess an administrative penalty is
  considered a contested case hearing and is subject to Section
  152.451.
         (f)  An order imposing an administrative penalty after
  notice and hearing becomes effective and is final for purposes of
  collection and appeal immediately on issuance.
         (g)  The commissioner may collect an administrative penalty
  assessed under this section:
               (1)  in the same manner that a money judgment is
  enforced in court; or
               (2)  if the penalty is imposed against a money services
  licensee or an authorized delegate, from the proceeds of the
  licensee's security in accordance with Section 152.354(c).
         Sec. 152.408.  CRIMINAL PENALTY. (a)  A person commits an
  offense if the person:
               (1)  intentionally makes a false statement,
  misrepresentation, or certification in a record or application
  filed with the department or required to be maintained under this
  chapter or a rule adopted or order issued under this chapter, or
  intentionally makes a false entry or omits a material entry in the
  record or application; or
               (2)  knowingly engages in an activity for which a money
  services license is required under this chapter without being
  licensed under this chapter.
         (b)  An offense under this section is a felony of the third
  degree.
         (c)  An offense under this section may be prosecuted in
  Travis County or in the county in which the offense is alleged to
  have been committed.
         (d)  Nothing in this section limits the power of the state to
  punish a person for an act that constitutes an offense under this or
  any other law.
         Sec. 152.409.  NOTICE, HEARING, AND OTHER PROCEDURES FOR
  NONEMERGENCY ORDERS.  (a)  This section applies to an order issued
  by the commissioner under this subchapter that is not an emergency
  order.
         (b)  An order to which this section applies becomes effective
  only after notice and an opportunity for hearing.  The order must:
               (1)  state the grounds on which the order is based;
               (2)  to the extent applicable, state the action or
  violation from which the person subject to the order must cease and
  desist or the affirmative action the person must take to correct a
  condition resulting from the violation or that is otherwise
  appropriate;
               (3)  be delivered by personal delivery or sent by
  certified mail, return receipt requested, to the person against
  whom the order is directed at the person's last known address;
               (4)  state the effective date of the order, which may
  not be before the 21st day after the date the order is delivered or
  mailed; and
               (5)  include a notice that a person may file a written
  request for a hearing on the order with the commissioner not later
  than the 20th day after the date the order is delivered or mailed.
         (c)  Unless the commissioner receives a written request for a
  hearing from the person against whom the order is directed not later
  than the 20th day after the date the order is delivered or mailed,
  the order takes effect as stated in the order and is final against
  and non-appealable by that person from that date.
         (d)  A hearing on the order must be held not later than the
  45th day after the date the commissioner receives the written
  request for the hearing unless the administrative law judge extends
  the period for good cause or the parties agree to a later hearing
  date.
         (e)  An order that has been affirmed or modified after a
  hearing becomes effective and is final for purposes of enforcement
  and appeal immediately on issuance.  The order may be appealed to
  the district court of Travis County as provided by Section
  152.451(b).
         Sec. 152.410.  REQUIREMENTS AND NOTICE AND HEARING
  PROCEDURES FOR EMERGENCY ORDERS. (a)  This section applies to an
  emergency order issued by the commissioner under this subchapter.
         (b)  The commissioner may issue an emergency order, without
  prior notice and an opportunity for hearing, if the commissioner
  finds that:
               (1)  the action, violation, or condition that is the
  basis for the order:
                     (A)  has caused or is likely to cause the
  insolvency of the money services licensee;
                     (B)  has caused or is likely to cause the
  substantial dissipation of the money services licensee's assets or
  earnings;
                     (C)  has seriously weakened or is likely to
  seriously weaken the condition of the money services licensee; or
                     (D)  has seriously prejudiced or is likely to
  seriously prejudice the interests of the money services licensee, a
  purchaser of the licensee's money services, or the public; and
               (2)  immediate action is necessary to protect the
  interests of the money services licensee, a purchaser of the
  licensee's money services, or the public.
         (c)  In connection with and as directed by an emergency
  order, the commissioner may seize the records and assets of a money
  services licensee or authorized delegate that relate to the
  licensee's money services business.
         (d)  An emergency order must:
               (1)  state the grounds on which the order is based;
               (2)  advise the person against whom the order is
  directed that the order takes effect immediately, and, to the
  extent applicable, require the person to immediately cease and
  desist from the conduct or violation that is the subject of the
  order or to take the affirmative action stated in the order as
  necessary to correct a condition resulting from the conduct or
  violation or as otherwise appropriate;
               (3)  be delivered by personal delivery or sent by
  certified mail, return receipt requested, to the person against
  whom the order is directed at the person's last known address; and
               (4)  include a notice that a person may request a
  hearing on the order by filing a written request for hearing with
  the commissioner not later than the 15th day after the date the
  order is delivered or mailed.
         (e)  An emergency order takes effect as soon as the person
  against whom the order is directed has actual or constructive
  knowledge of the issuance of the order.
         (f)  A money services licensee or authorized delegate
  against whom an emergency order is directed must submit a written
  certification to the commissioner, signed by the licensee or
  authorized delegate, and their principals and responsible
  individuals, as applicable, and each person named in the order,
  stating that each person has received a copy of and has read and
  understands the order.
         (g)  Unless the commissioner receives a written request for a
  hearing from a person against whom an emergency order is directed
  not later than the 15th day after the date the order is delivered or
  mailed, the order is final and non-appealable as to that person on
  the 16th day after the date the order is delivered or mailed.
         (h)  A request for a hearing does not stay an emergency
  order.
         (i)  A hearing on an emergency order takes precedence over
  any other matter pending before the commissioner, and must be held
  not later than the 10th day after the date the commissioner receives
  the written request for hearing unless the administrative law judge
  extends the period for good cause or the parties agree to a later
  hearing date.
         (j)  An emergency order that has been affirmed or modified
  after a hearing is final for purposes of enforcement and appeal.  
  The order may be appealed to the district court of Travis County as
  provided in Section 152.451(b).
  SUBCHAPTER J.  MISCELLANEOUS PROVISIONS
         Sec. 152.451.  ADMINISTRATIVE PROCEDURES. (a)  All
  administrative proceedings under this chapter must be conducted in
  accordance with Chapter 2001, Government Code, and Title 7, Chapter
  9, Texas Administrative Code.
         (b)  A person affected by a final order of the commissioner
  issued under this chapter after a hearing may appeal the order by
  filing a petition for judicial review in a district court of Travis
  County.  A petition for judicial review filed in the district court
  under this subsection does not stay or vacate the appealed order
  unless the court, after notice and hearing, specifically stays or
  vacates the order.
  ARTICLE 2.  CONFORMING AMENDMENTS
         SECTION 2.01.  Section 140A.104(e), Civil Practice and
  Remedies Code, is amended to read as follows:
         (e)  A bank or savings and loan association insured by the
  Federal Deposit Insurance Corporation, a credit union insured by
  the National Credit Union Administration, or the holder of a money
  transmission license as defined by Chapter 152 [151], Finance Code,
  may not be held liable in damages or for other relief under this
  chapter, unless the finder of fact finds by a preponderance of the
  evidence that the person or agent acquiring or maintaining an
  interest in or transporting, transacting, transferring, or
  receiving the funds on behalf of another did so knowing that the
  funds were the proceeds of an offense and that a director or high
  managerial agent performed, authorized, requested, commanded,
  participated in, ratified, or recklessly tolerated the unlawful
  conduct of the person or agent.
         SECTION 2.02.  Article 59.01(2), Code of Criminal Procedure,
  is amended to read as follows:
               (2)  "Contraband" means property of any nature,
  including real, personal, tangible, or intangible, that is:
                     (A)  used in the commission of:
                           (i)  any first or second degree felony under
  the Penal Code;
                           (ii)  any felony under Section 15.031(b),
  21.11, or 38.04 or Chapter 29, 30, 31, 32, 33, 33A, or 35, Penal
  Code;
                           (iii)  any felony under Chapter 43, Penal
  Code, except as provided by Paragraph (B);
                           (iv)  any felony under The Securities Act
  (Title 12, Government Code); or
                           (v)  any offense under Chapter 49, Penal
  Code, that is punishable as a felony of the third degree or state
  jail felony, if the defendant has been previously convicted three
  times of an offense under that chapter;
                     (B)  used or intended to be used in the commission
  of:
                           (i)  any felony under Chapter 481, Health
  and Safety Code (Texas Controlled Substances Act);
                           (ii)  any felony under Chapter 483, Health
  and Safety Code;
                           (iii)  a felony under Chapter 152 [151],
  Finance Code;
                           (iv)  any felony under Chapter 20A or 34,
  Penal Code;
                           (v)  a Class A misdemeanor under Subchapter
  B, Chapter 365, Health and Safety Code, if the defendant has been
  previously convicted twice of an offense under that subchapter;
                           (vi)  any felony under Chapter 32, Human
  Resources Code, or Chapter 31, 32, 35A, or 37, Penal Code, that
  involves a health care program, as defined by Section 35A.01, Penal
  Code;
                           (vii)  a Class B misdemeanor under Chapter
  522, Business & Commerce Code;
                           (viii)  a Class A misdemeanor under Section
  306.051, Business & Commerce Code;
                           (ix)  any offense under Section 42.10, Penal
  Code;
                           (x)  any offense under Section 46.06(a)(1)
  or 46.14, Penal Code;
                           (xi)  any offense under Chapter 71, Penal
  Code;
                           (xii)  any offense under Section 20.05,
  20.06, 20.07, 43.04, or 43.05, Penal Code;
                           (xiii)  an offense under Section 326.002,
  Business & Commerce Code; or
                           (xiv)  a Class A misdemeanor or any felony
  under Section 545.420, Transportation Code, other than a Class A
  misdemeanor that is classified as a Class A misdemeanor based
  solely on conduct constituting a violation of Subsection (e)(2)(B)
  of that section;
                     (C)  the proceeds gained from the commission of a
  felony listed in Paragraph (A) or (B) of this subdivision, a
  misdemeanor listed in Paragraph (B)(vii), (ix), (x), (xi), or (xii)
  of this subdivision, or a crime of violence;
                     (D)  acquired with proceeds gained from the
  commission of a felony listed in Paragraph (A) or (B) of this
  subdivision, a misdemeanor listed in Paragraph (B)(vii), (ix), (x),
  (xi), or (xii) of this subdivision, or a crime of violence;
                     (E)  used to facilitate or intended to be used to
  facilitate the commission of a felony under Section 15.031 or
  Chapter 43, Penal Code; or
                     (F)  used to facilitate or intended to be used to
  facilitate the commission of an offense under Section 20.05, 20.06,
  or 20.07 or Chapter 20A, Penal Code.
         SECTION 2.03.  Section 182.021, Finance Code, is amended to
  read as follows:
         Sec. 182.021.  ACTIVITIES NOT REQUIRING CHARTER. Subject to
  Subchapter C, Chapter 187, a company does not engage in the trust
  business in a manner requiring a state charter by:
               (1)  acting in a manner authorized by law and in the
  scope of authority as an agent of a trust institution;
               (2)  rendering a service customarily performed as an
  attorney in a manner approved and authorized by the Supreme Court of
  Texas or State Bar of Texas;
               (3)  acting as trustee under a deed of trust made only
  as security for the payment of money or for the performance of
  another act;
               (4)  conducting business as a trust institution if the
  exercise of fiduciary powers in this state by the trust institution
  is not otherwise prohibited by law;
               (5)  engaging in a business regulated by the Office of
  Consumer Credit Commissioner, except as limited by rules adopted by
  the finance commission;
               (6)  receiving and distributing rents and proceeds of
  sale as a licensed real estate broker on behalf of a principal in a
  manner authorized by the Texas Real Estate Commission;
               (7)  engaging in a securities transaction or providing
  an investment advisory service as a licensed and registered dealer,
  salesman, or advisor to the extent that the activity is regulated by
  the State Securities Board or the Securities and Exchange
  Commission;
               (8)  engaging in the sale and administration of an
  insurance product by an insurance company or agent authorized or
  licensed by the Texas Department of Insurance to the extent that the
  activity is regulated by the Texas Department of Insurance;
               (9)  engaging in the lawful sale of prepaid funeral
  benefits under a permit issued by the banking commissioner under
  Chapter 154;
               (10)  engaging in the lawful business of a perpetual
  care cemetery corporation under Chapter 712, Health and Safety
  Code;
               (11)  engaging as a principal in the money services
  business under a license issued by the banking commissioner under
  Chapter 152 [151];
               (12)  acting as trustee under a voting trust as
  provided by Section 6.251, Business Organizations Code;
               (13)  acting as trustee by a public, private, or
  independent institution of higher education or a university system,
  as defined by Section 61.003, Education Code, including an
  affiliated foundation or corporation of such an institution or
  system acting as trustee as provided by the Education Code;
               (14)  engaging in another activity expressly excluded
  from the application of this subtitle by rule of the finance
  commission;
               (15)  rendering services customarily performed by a
  certified accountant in a manner authorized by the Texas State
  Board of Public Accountancy;
               (16)  serving as trustee of a charitable trust as
  provided by Section 2.106, Business Organizations Code;
               (17)  performing escrow or settlement services if
  licensed or authorized under Title 11, Insurance Code;
               (18)  acting as a qualified intermediary in a tax
  deferred exchange under Section 1031, Internal Revenue Code of
  1986, and applicable regulations;
               (19)  providing permitted services at a trust
  representative office established in this state pursuant to
  Subchapter C, Chapter 187; or
               (20)  acting as a trustee or custodian approved by the
  Internal Revenue Service under 26 C.F.R. Section 1.408-2(e) of an
  individual retirement account described by Section 408(a),
  Internal Revenue Code of 1986.
         SECTION 2.04.  Section 278.001(1), Finance Code, is amended
  to read as follows:
               (1)  "Currency" has the meaning assigned by Section
  152.003 [151.501].
         SECTION 2.05.  Section 213.012(a), Labor Code, is amended to
  read as follows:
         (a)  In this section, "payment instrument" has the meaning
  assigned by Section 152.003 [151.301], Finance Code.
         SECTION 2.06.  Section 151.0035(b), Tax Code, is amended to
  read as follows:
         (b)  "Data processing service" does not include:
               (1)  the transcription of medical dictation by a
  medical transcriptionist;
               (2)  services exclusively to encrypt electronic
  payment information for acceptance onto a payment card network
  described by Subdivision (3)(E) to comply with standards set by the
  Payment Card Industry Security Standards Council; or
               (3)  settling of an electronic payment transaction by:
                     (A)  a downstream payment processor or point of
  sale payment processor that routes electronic payment information
  to an entity described by Paragraph (C) or (E);
                     (B)  a person who is engaged in the business of
  money transmission and required to obtain a license under Section
  152.101 [151.302(a)], Finance Code;
                     (C)  a federally insured financial institution,
  as defined by Section 201.101, Finance Code, that is organized
  under the laws of this state, another state, or the United States,
  or an affiliate of the institution;
                     (D)  a person who has entered into a sponsorship
  agreement with an entity described by Paragraph (C) for the purpose
  of settling that entity's electronic payment transactions through a
  payment card network; or
                     (E)  a payment card network that allows a person
  to accept a specific brand of debit or credit card by routing
  information and data to settle an electronic payment transaction.
  ARTICLE 3.  REPEALER
         SECTION 3.01.  Chapter 151, Finance Code, is repealed.
  ARTICLE 4.  TRANSITIONAL PROVISIONS
         SECTION 4.01.  (a) A license issued under Chapter 151,
  Finance Code, that is in effect on September 1, 2023, remains in
  force as a license under Chapter 152, Finance Code.  Not later than
  September 1, 2024, a licensee must satisfy the minimum requirements
  to maintain a license established by Chapter 152, Finance Code, as
  added by this Act.
         (b)  A contract between a licensee and an authorized delegate
  entered into or renewed on or after the effective date of this Act
  must satisfy the contract requirements established by Chapter 152,
  Finance Code, as added by this Act.
         (c)  The Finance Commission of Texas may adopt rules to
  further provide for the orderly transition to licensing and
  regulation under this Act.
  ARTICLE 5.  EFFECTIVE DATE
         SECTION 5.01.  This Act takes effect September 1, 2023.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 895 passed the Senate on
  March 30, 2023, by the following vote:  Yeas 30, Nays 1.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 895 passed the House on
  May 16, 2023, by the following vote:  Yeas 116, Nays 22,
  one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor