By: Kolkhorst S.B. No. 1607
 
  (Schofield)
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to prohibiting the imposition of a monetary fine or
  penalty for a violation of a money services business's terms of
  service agreement; providing a civil penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  (a)  This section takes effect only if the Act of
  the 88th Legislature, Regular Session, 2023, relating to the
  regulation of money services businesses, does not become law.
         (b)  Subchapter E, Chapter 151, Finance Code, is amended by
  adding Section 151.406 to read as follows:
         Sec. 151.406.  PROHIBITION ON IMPOSITION OF FINE OR PENALTY
  FOR TERMS OF SERVICE VIOLATION. (a)  A money transmission license
  holder may not include in the license holder's terms of service
  agreement a provision allowing or providing for a monetary fine or
  penalty for violating any provision of the terms of service
  agreement.
         (b)  This section may not be construed to prevent a money
  transmission license holder from closing a customer account as a
  result of a customer's violation of the license holder's terms of
  service agreement.
         (c)  In addition to any other relief provided for a violation
  of this chapter, a money transmission license holder that violates
  this section is liable to this state for a civil penalty in an
  amount equal to three times the amount of the fine or penalty
  imposed by the license holder.
         (d)  The attorney general may bring an action in the name of
  the state to recover the civil penalty under Subsection (c).  The
  attorney general may recover attorney's fees and costs incurred in
  bringing an action under Subsection (c).
         SECTION 2.  (a) This section takes effect only if the Act of
  the 88th Legislature, Regular Session, 2023, relating to the
  regulation of money services businesses, becomes law.
         (b)  Subchapter G, Chapter 152, Finance Code, is amended by
  adding Section 152.305 to read as follows:
         Sec. 152.305.  PROHIBITION ON IMPOSITION OF FINE OR PENALTY
  FOR TERMS OF SERVICE VIOLATION.  (a)  A money transmission
  licensee may not include in the licensee's terms of service
  agreement a provision allowing or providing for a monetary fine or
  penalty for violating any provision of the terms of service
  agreement.
         (b)  This section may not be construed to prevent a money
  transmission licensee from closing a customer account as a result
  of a customer's violation of the licensee's terms of service
  agreement.
         (c)  In addition to any other relief provided for a violation
  of this chapter, a money transmission licensee that violates this
  section is liable to this state for a civil penalty in an amount
  equal to three times the amount of the fine or penalty imposed by
  the licensee.
         (d)  The attorney general may bring an action in the name of
  the state to recover the civil penalty under Subsection (c).  The
  attorney general may recover attorney's fees and costs incurred in
  bringing an action under Subsection (c).
         SECTION 3.  This Act applies only to a terms of service
  agreement entered into after the effective date of this Act.  A
  terms of service agreement entered into before the effective date
  of this Act is governed by the law as it existed immediately before
  the effective date of this Act, and the former law is continued in
  effect for that purpose.
         SECTION 4.  This Act takes effect September 1, 2023.