| 1 | 1 | | 81R10041 KFF-D |
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| 2 | 2 | | By: Kent H.B. No. 3302 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the fees charged by certain check-cashing businesses; |
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| 8 | 8 | | providing penalties. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subtitle E, Title 3, Finance Code, is amended by |
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| 11 | 11 | | adding Chapter 158 to read as follows: |
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| 12 | 12 | | CHAPTER 158. CHECK-CASHING BUSINESSES |
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| 13 | 13 | | Sec. 158.001. DEFINITIONS. In this chapter: |
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| 14 | 14 | | (1) "Check-cashing business" means a person in the |
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| 15 | 15 | | business of cashing checks for a fee, other than: |
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| 16 | 16 | | (A) a bank, savings and loan association, savings |
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| 17 | 17 | | bank, or credit union; |
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| 18 | 18 | | (B) a grocery or convenience store; or |
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| 19 | 19 | | (C) a person that cashes checks as an incident to |
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| 20 | 20 | | another business for a consideration of not more than 50 cents a |
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| 21 | 21 | | check. |
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| 22 | 22 | | (2) "Check-cashing service" means: |
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| 23 | 23 | | (A) the issuance, redemption, or cashing of a |
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| 24 | 24 | | two-party or multiparty check or similar negotiable instrument; or |
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| 25 | 25 | | (B) the sale, redemption, or cashing of a |
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| 26 | 26 | | travelers check, money order, or similar negotiable instrument by |
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| 27 | 27 | | an agent of the issuer of the instrument that is authorized to do |
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| 28 | 28 | | so. |
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| 29 | 29 | | (3) "Convenience store" means a retail establishment |
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| 30 | 30 | | that is primarily engaged in the retail sale of groceries and other |
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| 31 | 31 | | products and services, including: |
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| 32 | 32 | | (A) prepared foods; |
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| 33 | 33 | | (B) household items and toiletries; and |
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| 34 | 34 | | (C) gasoline and related automotive services. |
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| 35 | 35 | | (4) "Finance commission" means the Finance Commission |
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| 36 | 36 | | of Texas. |
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| 37 | 37 | | Sec. 158.002. MAXIMUM FEE. A check-cashing business may |
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| 38 | 38 | | charge a fee for providing a check-cashing service in an amount that |
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| 39 | 39 | | is not more than the greater of: |
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| 40 | 40 | | (1) $5 or two percent of the face value of the |
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| 41 | 41 | | instrument being cashed, if the instrument is issued by the federal |
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| 42 | 42 | | government, this state, or a municipality of this state; |
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| 43 | 43 | | (2) $5 or three percent of the face value of the |
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| 44 | 44 | | instrument being cashed, if the instrument is a payroll check or is |
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| 45 | 45 | | issued by a government not described by Subdivision (1); and |
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| 46 | 46 | | (3) $5 or 10 percent of the face value of the |
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| 47 | 47 | | instrument being cashed, if the instrument is a personal check or |
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| 48 | 48 | | for any other instrument. |
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| 49 | 49 | | Sec. 158.003. FINANCE COMMISSION RULES. The finance |
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| 50 | 50 | | commission may adopt rules necessary to implement this chapter. |
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| 51 | 51 | | Sec. 158.004. ADMINISTRATIVE PENALTY. (a) The finance |
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| 52 | 52 | | commission may impose an administrative penalty against a |
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| 53 | 53 | | check-cashing business that violates this chapter. |
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| 54 | 54 | | (b) The penalty for a violation may be in an amount not to |
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| 55 | 55 | | exceed $5,000. |
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| 56 | 56 | | (c) The amount of the penalty shall be based on: |
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| 57 | 57 | | (1) the seriousness of the violation, including the |
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| 58 | 58 | | nature, circumstances, extent, and gravity of any prohibited acts, |
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| 59 | 59 | | and the hazard or potential hazard created to the health, safety, or |
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| 60 | 60 | | welfare of the public; |
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| 61 | 61 | | (2) the history of any previous violations; |
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| 62 | 62 | | (3) the amount necessary to deter future violations; |
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| 63 | 63 | | (4) efforts to correct the violation; and |
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| 64 | 64 | | (5) any other matter that justice may require. |
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| 65 | 65 | | SECTION 2. This Act takes effect September 1, 2009. |
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