81R10041 KFF-D
By: Kent H.B. No. 3302
A BILL TO BE ENTITLED
AN ACT
relating to the fees charged by certain check-cashing businesses;
providing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle E, Title 3, Finance Code, is amended by
adding Chapter 158 to read as follows:
CHAPTER 158. CHECK-CASHING BUSINESSES
Sec. 158.001. DEFINITIONS. In this chapter:
(1) "Check-cashing business" means a person in the
business of cashing checks for a fee, other than:
(A) a bank, savings and loan association, savings
bank, or credit union;
(B) a grocery or convenience store; or
(C) a person that cashes checks as an incident to
another business for a consideration of not more than 50 cents a
check.
(2) "Check-cashing service" means:
(A) the issuance, redemption, or cashing of a
two-party or multiparty check or similar negotiable instrument; or
(B) the sale, redemption, or cashing of a
travelers check, money order, or similar negotiable instrument by
an agent of the issuer of the instrument that is authorized to do
so.
(3) "Convenience store" means a retail establishment
that is primarily engaged in the retail sale of groceries and other
products and services, including:
(A) prepared foods;
(B) household items and toiletries; and
(C) gasoline and related automotive services.
(4) "Finance commission" means the Finance Commission
of Texas.
Sec. 158.002. MAXIMUM FEE. A check-cashing business may
charge a fee for providing a check-cashing service in an amount that
is not more than the greater of:
(1) $5 or two percent of the face value of the
instrument being cashed, if the instrument is issued by the federal
government, this state, or a municipality of this state;
(2) $5 or three percent of the face value of the
instrument being cashed, if the instrument is a payroll check or is
issued by a government not described by Subdivision (1); and
(3) $5 or 10 percent of the face value of the
instrument being cashed, if the instrument is a personal check or
for any other instrument.
Sec. 158.003. FINANCE COMMISSION RULES. The finance
commission may adopt rules necessary to implement this chapter.
Sec. 158.004. ADMINISTRATIVE PENALTY. (a) The finance
commission may impose an administrative penalty against a
check-cashing business that violates this chapter.
(b) The penalty for a violation may be in an amount not to
exceed $5,000.
(c) The amount of the penalty shall be based on:
(1) the seriousness of the violation, including the
nature, circumstances, extent, and gravity of any prohibited acts,
and the hazard or potential hazard created to the health, safety, or
welfare of the public;
(2) the history of any previous violations;
(3) the amount necessary to deter future violations;
(4) efforts to correct the violation; and
(5) any other matter that justice may require.
SECTION 2. This Act takes effect September 1, 2009.