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A BILL TO BE ENTITLED
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AN ACT
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relating to certain enforcement powers of the banking commissioner |
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regarding the regulation of money services businesses. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter I, Chapter 152, Finance Code, is |
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amended by adding Sections 152.411, 152.412, and 152.413 to read as |
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follows: |
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Sec. 152.411. REMOVAL OR PROHIBITION ORDER. (a) The |
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commissioner may remove or prohibit a current or former key |
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individual or employee of a money services licensee from office or |
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employment in, or prohibit a control person or other person from |
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further participation in the money services licensee or any other |
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entity chartered, registered, permitted, or licensed by the |
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commissioner if the commissioner determines from examination or |
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other credible evidence that: |
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(1) the person: |
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(A) intentionally committed or participated in |
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the commission of an act described by Section 152.408; |
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(B) engaged in conduct described by Section |
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152.403; |
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(C) violated a final cease and desist order |
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issued by a state or federal regulatory agency against the person or |
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an entity in which the person is or was a key individual, employee, |
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or control person; or |
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(D) made, or caused to be made, false entries in |
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the records of a money services licensee; |
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(2) because of this action by the person: |
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(A) the money services licensee has suffered or |
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will probably suffer financial loss or expense or other damage; |
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(B) the interests of the customers, creditors, or |
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shareholders of the money services licensee have been or could be |
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prejudiced; or |
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(C) the person has received financial gain or |
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other benefit by reason of the action, or likely would have if the |
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action had not been discovered; and |
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(3) the action: |
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(A) involves personal dishonesty on the part of |
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the person; or |
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(B) demonstrates wilful or continuing disregard |
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for the safety or soundness of the money services licensee. |
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(b) If the commissioner has grounds for action under |
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Subsection (a) and finds that a removal or prohibition order |
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appears to be necessary and in the best interest of the public, the |
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commissioner may serve a proposed removal or prohibition order on a |
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person alleged to have committed or participated in the action. |
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(c) The commissioner may make a removal or prohibition order |
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perpetual or effective for a specific period of time, may probate |
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the order, or may impose other conditions on the order. |
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(d) The order takes effect if the person against whom the |
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proposed order is directed does not request a hearing in writing |
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before the effective date. If the person does not request a hearing |
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before the effective date, the order is final and not appealable as |
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to that person. |
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Sec. 152.412. REMOVAL OR PROHIBITION ORDERS IN RESPONSE TO |
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CERTAIN CRIMINAL OFFENSES. (a) For purposes of this section, a |
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person is considered to have been finally convicted of an offense if |
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the person's case is not subject to further appellate review and: |
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(1) a sentence was imposed on the person; |
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(2) the person received probation or community |
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supervision, including deferred adjudication community |
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supervision; or |
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(3) the court deferred final disposition of the |
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person's case. |
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(b) The commissioner may remove or prohibit a current or |
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former key individual or employee of a money services licensee from |
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office or employment in, or prohibit a control person or other |
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person participating in the affairs of a money services licensee |
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from further participation in the affairs of a money services |
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licensee, or any other entity chartered, registered, permitted, or |
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licensed by the commissioner if the person has been finally |
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convicted of a felony offense involving: |
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(1) a business engaged in money services; |
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(2) dishonesty; or |
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(3) breach of trust. |
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(c) If the commissioner has grounds for action under |
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Subsection (b), the commissioner may serve a removal or prohibition |
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order, as appropriate, on the person who has been finally convicted |
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of a felony offense. The commissioner shall also serve a copy of |
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the order on any money services licensee that the person is |
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affiliated with at the time of service of the order. |
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(d) Notwithstanding Section 152.409, an order issued under |
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this section becomes effective immediately on service and continues |
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in effect unless the order is: |
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(1) stayed or terminated by the commissioner; |
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(2) set aside by the commissioner after a hearing; or |
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(3) stayed or vacated on appeal. |
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(e) Not later than the 30th day after the date an order is |
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served under this section, the person against whom the order is |
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issued may request in writing a hearing before the commissioner to |
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show that the person's continued service to a money services |
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licensee or participation in the affairs of a money services |
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licensee does not, or is unlikely to, threaten the interests of the |
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money services licensee, the money services licensee's customers, |
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or the public confidence in the money services licensee. |
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(f) Not later than the 30th day after the date the request |
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for a hearing is received under this section, the commissioner |
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shall hold the hearing, unless the party requesting the hearing |
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requests a later date. At the hearing, the party requesting the |
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hearing has the burden of proof. |
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(g) After the hearing, the commissioner may affirm, modify, |
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or set aside, in whole or in part, the order. An order affirming or |
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modifying the order is immediately final for purposes of |
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enforcement and appeal. The order may be appealed as provided by |
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Section 152.409. |
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Sec. 152.413. APPLICATION FOR RELEASE FROM FINAL REMOVAL OR |
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PROHIBITION ORDER. (a) After the expiration of 10 years from the |
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date of issuance, a person who is subject to a removal or |
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prohibition order issued under this subchapter, regardless of the |
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order's stated duration or date of issuance, may apply to the |
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commissioner to be released from the order. |
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(b) The application must be made under oath and in the form |
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required by the commissioner. The application must be accompanied |
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by any required fees. |
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(c) The commissioner, in the exercise of discretion, may |
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approve or deny an application filed under this section. |
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(d) The commissioner's decision under Subsection (c) is |
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final and not appealable. |
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SECTION 2. This Act takes effect September 1, 2025. |