Texas House Bill HB2134

Texas 2013 - 83rd Regular

Caption

Relating to the regulation of money services businesses.

Impact

The passage of HB 2134 will have significant implications for state laws governing financial transactions. It is expected to improve the oversight of money services businesses by implementing rigorous reporting standards, thereby enhancing consumer protection. Additionally, the bill standardizes the application process for financial service licenses, likely leading to a more efficient regulatory environment. This could encourage more businesses to operate within the state while ensuring they adhere to strict compliance standards.

Summary

House Bill 2134 aims to amend the Texas Finance Code to enhance the regulation of money services businesses, including those involved in money transmission and currency exchange. The bill streamlines the licensing process for these entities, establishing clear guidelines for compliance and reporting requirements. It grants the commissioner the authority to conduct investigations to ensure adherence to state regulations and introduces provisions for information-sharing among governmental agencies to facilitate more effective regulation.

Contention

While there is general support for the objectives outlined in HB 2134, concerns have been raised about the balance between regulatory oversight and the operational flexibility of money services businesses. Critics argue that the increased regulatory burden may hinder smaller businesses, making it difficult for them to sustain operations amid complex compliance requirements. Proponents argue that the increased regulations are necessary to prevent fraud and protect consumers in a rapidly evolving financial landscape.