Texas House Bill HB702

Texas 2013 - 83rd Regular

Caption

Relating to the applicability of state law governing funds transfers to certain remittance transfers.

Impact

If enacted, HB 702 would revise how remittance transfers are treated under state law, potentially enhancing consumer protections in Texas. It permits state regulations to take precedence in cases where the remittance transfer is not covered by the EFTA, thus introducing a framework for handling these transfers that is more consistent with state law. This could lead to better enforcement of consumer rights and ensure that individuals involved in remittance transactions are subject to Texas state financial regulations.

Summary

House Bill 702 seeks to clarify the applicability of Texas state law concerning funds transfers, particularly in relation to remittance transfers. The legislation amends Section 4A.108 of the Business & Commerce Code, delineating the relationship between state rules governing funds transfers and existing federal law under the Electronic Fund Transfer Act (EFTA). By explicitly stating that state law will apply to remittance transfers unless they are governed under the EFTA, the bill aims to streamline regulatory oversight for certain financial transactions involving remittances.

Contention

While the bill seeks to clarify the applicability of laws regarding funds transfers, it may encounter opposition from those wary of state overreach into areas typically managed at the federal level. Critics might argue that the bill creates confusion by intertwining state and federal regulations, which could complicate compliance for financial institutions handling these transfers. Additionally, stakeholders may express concerns about whether the state is adequately equipped to effectively oversee remittance transactions in a manner that aligns with federal practices.