TX
Texas Senate Bill SB1005

Texas 2013 - 83rd Regular

Texas Senate Bill SB1005 Compare Versions

The same version is selected twice. Please select two different versions to compare.
OldNewDifferences
11 By: Carona S.B. No. 1005
22 (In the Senate - Filed March 1, 2013; March 12, 2013, read
33 first time and referred to Committee on Business and Commerce;
44 March 20, 2013, reported favorably by the following vote: Yeas 9,
55 Nays 0; March 20, 2013, sent to printer.)
66
77
88 A BILL TO BE ENTITLED
99 AN ACT
1010 relating to the regulation of money services businesses.
1111 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1212 SECTION 1. Subdivision (3), Subsection (b), Section
1313 151.002, Finance Code, is amended to read as follows:
1414 (3) "Bank Secrecy Act" means the Bank Secrecy Act (31
1515 U.S.C. Section 5311 et seq.), and its implementing regulations [set
1616 forth at 31 C.F.R. Part 103].
1717 SECTION 2. Subsection (a), Section 151.104, Finance Code,
1818 is amended to read as follows:
1919 (a) The commissioner may conduct investigations in or
2020 outside this state and the United States as the commissioner
2121 considers necessary or appropriate to administer and enforce this
2222 chapter, including investigations to:
2323 (1) determine whether to approve an application for
2424 [or renewal of] a license or a request for approval or exemption
2525 filed under this chapter or a rule adopted or order issued under
2626 this chapter;
2727 (2) determine whether a person has violated or is
2828 likely to violate this chapter or a rule adopted or order issued
2929 under this chapter;
3030 (3) determine whether a license or authorized delegate
3131 designation should be revoked or suspended;
3232 (4) otherwise aid in the enforcement of this chapter
3333 or a rule adopted or order issued under this chapter; and
3434 (5) aid in the adoption of rules or issuance of orders
3535 under this chapter.
3636 SECTION 3. Section 151.105, Finance Code, is amended by
3737 adding Subsection (b-1) to read as follows:
3838 (b-1) To efficiently and effectively administer and enforce
3939 this chapter and to minimize regulatory burden, the commissioner
4040 may cooperate, coordinate, and share information with an
4141 organization the membership of which is made up of state or federal
4242 governmental agencies described by Subsection (a). The
4343 commissioner may:
4444 (1) enter into a written cooperation, coordination, or
4545 information-sharing contract or agreement with the organization;
4646 and
4747 (2) share information, provided that the organization
4848 agrees in writing to maintain the confidentiality and security of
4949 the shared information.
5050 SECTION 4. Subchapter C, Chapter 151, Finance Code, is
5151 amended by adding Section 151.2031 to read as follows:
5252 Sec. 151.2031. USE OF NATIONWIDE MORTGAGE LICENSING SYSTEM
5353 AND REGISTRY. (a) In this section, "Nationwide Mortgage Licensing
5454 System and Registry" or "nationwide registry" means a licensing
5555 system developed and maintained by the Conference of State Bank
5656 Supervisors or an affiliated organization to manage mortgage
5757 licenses and other financial services licenses, or a successor
5858 registry.
5959 (b) The commissioner may require that a person submit
6060 through the Nationwide Mortgage Licensing System and Registry in
6161 the form and manner prescribed by the commissioner and acceptable
6262 to the registry any information or document or payment of a fee
6363 required to be submitted under this chapter or rules adopted under
6464 this chapter.
6565 (c) The commissioner may use the nationwide registry as a
6666 channeling agent for obtaining information required for licensing
6767 purposes under this chapter or rules adopted under this chapter,
6868 including:
6969 (1) criminal history record information from the
7070 Federal Bureau of Investigation, the United States Department of
7171 Justice, or any other agency or entity at the commissioner's
7272 discretion;
7373 (2) information related to any administrative, civil,
7474 or criminal findings by a governmental jurisdiction; and
7575 (3) information requested by the commissioner under
7676 Section 151.203(a)(3).
7777 SECTION 5. The heading to Section 151.207, Finance Code, is
7878 amended to read as follows:
7979 Sec. 151.207. CONTINUATION [RENEWAL] OF LICENSE; ANNUAL
8080 REPORT AND FEE.
8181 SECTION 6. Subsections (a), (b), (c), (d), (e), and (f),
8282 Section 151.207, Finance Code, are amended to read as follows:
8383 (a) If a [Regardless of the date on which a license under
8484 this chapter is issued, the license expires on August 15 of each
8585 year unless the license is renewed in accordance with this section
8686 or is previously surrendered by the license holder or suspended or
8787 revoked by the commissioner.
8888 [(b) As a condition of renewal, a] license holder does not
8989 [must] continue to meet [possess] the qualifications or [and]
9090 satisfy the requirements that apply to an applicant for a new money
9191 transmission license or currency exchange license, as applicable,
9292 the commissioner may suspend or revoke the license holder's
9393 license.
9494 (b) In addition to complying with Subsection (a)
9595 [Additionally, not later than July 1 of each year], a license holder
9696 must annually:
9797 (1) pay a license [an annual renewal] fee in an amount
9898 established by commission rule; and
9999 (2) submit a [renewal] report that is under oath, is in
100100 the form and medium required by the commissioner, and contains:
101101 (A) if the license is a money transmission
102102 license, an audited unconsolidated financial statement dated as of
103103 the last day of the license holder's fiscal year that ended in the
104104 immediately preceding calendar year;
105105 (B) if the license is a currency exchange
106106 license, a financial statement, audited or unaudited, dated as of
107107 the last day of the license holder's fiscal year that ended in the
108108 immediately preceding calendar year; and
109109 (C) documentation and certification, or any
110110 other information the commissioner reasonably requires to
111111 determine the security, net worth, permissible investments, and
112112 other requirements the license holder must satisfy and whether the
113113 license holder continues to meet the qualifications and
114114 requirements for licensure.
115115 (c) If the department does not receive a license holder's
116116 annual license [renewal] fee and complete annual [renewal] report
117117 on or before the due date prescribed by the commissioner under this
118118 section [July 1], the commissioner shall notify the license holder
119119 in writing that:
120120 (1) the license holder shall [has until August 15 to]
121121 submit the [renewal] report and pay the license [renewal] fee not
122122 later than the 45th day after the due date prescribed by the
123123 commissioner; and
124124 (2) the license holder must pay a late fee, in an
125125 amount that is established by commission rule and not subject to
126126 appeal, for each business day after the report due date specified by
127127 the commissioner [July 1] that the commissioner does not receive
128128 the completed [renewal] report and license [renewal] fee.
129129 (d) If the license holder fails to submit the completed
130130 annual [renewal] report and pay the annual license [renewal] fee
131131 and any late fee due within the time prescribed by Subsection
132132 (c)(1), the license expires [effective 5 p.m. central daylight time
133133 on August 15], and the license holder must cease and desist from
134134 engaging in the business of money transmission or currency
135135 exchange, as applicable, as of that date [time]. The expiration of
136136 a license is not subject to appeal.
137137 (e) On timely receipt of a license holder's complete annual
138138 [renewal] report, annual license [renewal] fee, and any late fee
139139 due, the department shall review the report and, if necessary,
140140 investigate the business and records of the license holder. On
141141 completion of the review and investigation, if any, the
142142 commissioner may:
143143 (1) [renew the license;
144144 [(2)] impose conditions on the [renewal of the]
145145 license the commissioner considers [may consider] reasonably
146146 necessary or appropriate; or
147147 (2) [(3)] suspend or revoke the license on the basis
148148 of a ground specified in Section 151.703.
149149 (f) On written application and for good cause shown, the
150150 commissioner may extend the due date [time] for filing the annual
151151 license fee and annual report required under this section.
152152 SECTION 7. Subsection (c), Section 151.208, Finance Code,
153153 is amended to read as follows:
154154 (c) The surrender of a license does not reduce or eliminate
155155 a license holder's civil or criminal liability arising from any
156156 acts or omissions before the surrender of the license, including
157157 any administrative action undertaken by the commissioner to [deny
158158 the renewal of a license, to] revoke or suspend a license, to assess
159159 an administrative penalty, to order the payment of restitution, or
160160 to exercise any other authority under this chapter. Further, the
161161 surrender of a license does not release the security required of the
162162 license holder under Section 151.308 or 151.506.
163163 SECTION 8. Section 151.209, Finance Code, is amended to
164164 read as follows:
165165 Sec. 151.209. REFUNDS. A fee or cost paid under this
166166 chapter [in connection with an application or renewal] is not
167167 refundable.
168168 SECTION 9. Subdivision (8), Subsection (b), Section
169169 151.301, Finance Code, is amended to read as follows:
170170 (8) "Stored value" means monetary value evidenced by
171171 an electronic record that is prefunded and for which value is
172172 reduced on each use. The term includes prepaid access as defined by
173173 31 C.F.R. Section 1010.100(ww). The term does not include an
174174 electronic record that is:
175175 (A) loaded with points, miles, or other
176176 nonmonetary value; [or]
177177 (B) not sold to the public but distributed as a
178178 reward or charitable donation; or
179179 (C) redeemable only for goods or services from a
180180 specified merchant or set of affiliated merchants, such as:
181181 (i) a specified retailer or retail chain;
182182 (ii) a set of affiliated companies under
183183 common ownership;
184184 (iii) a college campus; or
185185 (iv) a mass transportation system.
186186 SECTION 10. Subsection (b), Section 151.306, Finance Code,
187187 is amended to read as follows:
188188 (b) The effective period for a temporary license may not
189189 exceed 90 days from the date the license is issued, provided that
190190 the commissioner may extend the period for not more than an
191191 additional 90 [30] days if necessary to complete the processing of a
192192 timely filed application for which approval is likely.
193193 SECTION 11. Subsection (c), Section 151.308, Finance Code,
194194 is amended to read as follows:
195195 (c) The security must:
196196 (1) be in a form satisfactory to the commissioner;
197197 (2) be payable to any claimant or to the commissioner,
198198 on behalf of a claimant or this state, for any liability arising out
199199 of the license holder's money transmission business in this state,
200200 incurred under, subject to, or by virtue of this chapter; and
201201 (3) [be conditioned on the faithful compliance of the
202202 license holder or the principals, responsible individuals,
203203 employees and authorized delegates of the license holder with this
204204 chapter or any rule adopted or order issued under this chapter; and
205205 [(4)] if the security is a bond, be issued by a
206206 qualified surety company authorized to engage in business in this
207207 state and acceptable to the commissioner or, if the security is an
208208 irrevocable letter of credit, be issued by a financial institution
209209 acceptable to the commissioner.
210210 SECTION 12. Section 151.401, Finance Code, is amended to
211211 read as follows:
212212 Sec. 151.401. LIABILITY OF LICENSE HOLDER. A money
213213 transmission license holder is liable for the payment of all money
214214 or monetary value received for transmission [either] directly or by
215215 [through] an authorized delegate appointed in accordance with
216216 Section 151.402.
217217 SECTION 13. Subsections (e) and (f), Section 151.402,
218218 Finance Code, are amended to read as follows:
219219 (e) A license holder must notify the license holder's
220220 authorized delegates and require the delegates to take any action
221221 required by the commissioner if [the license holder]:
222222 (1) the license holder's license expired or is
223223 surrendered or revoked [fails to renew the license holder's
224224 license]; or
225225 (2) the license holder is subject to an emergency or
226226 final order that affects the conduct of the license holder's
227227 business through an authorized delegate.
228228 (f) A license holder must maintain a current list of
229229 authorized delegates located in this state or doing business with
230230 persons located in this state that includes the name and business
231231 address of each delegate and must provide the list to the
232232 commissioner on request. A license holder that engages in business
233233 through 11 or more authorized delegates located in this state must
234234 include on the license holder's website a list of the names and
235235 addresses of the authorized delegates of the license holder located
236236 in this state and the delegates' business addresses. The license
237237 holder must update the list quarterly.
238238 SECTION 14. Subsection (b), Section 151.501, Finance Code,
239239 is amended by amending Subdivision (2) and adding Subdivision (3)
240240 to read as follows:
241241 (2) "Currency exchange" means:
242242 (A) receiving [exchanging] the currency of one
243243 government and exchanging it for the currency of another
244244 government; or
245245 (B) receiving a negotiable instrument and
246246 exchanging it for the currency of another government.
247247 (3) "Negotiable instrument" has the meaning assigned
248248 by Section 3.104, Business & Commerce Code.
249249 SECTION 15. Subsections (a), (b), and (c), Section 151.603,
250250 Finance Code, are amended to read as follows:
251251 (a) An applicant or license holder shall file a written
252252 report with the commissioner not later than the 15th day after the
253253 date the applicant or license holder knows or has reason to know of
254254 a material change in the information reported in an application or
255255 annual [renewal] report required under Section 151.207(b)(2). The
256256 report must describe the change and the anticipated impact of the
257257 change on the activities of the applicant or license holder in this
258258 state.
259259 (b) A money transmission license holder shall prepare
260260 written reports and statements as follows:
261261 (1) the annual [renewal] report required by Section
262262 151.207(b)(2), including an audited unconsolidated financial
263263 statement that is dated as of the last day of the license holder's
264264 fiscal year that ended in the immediately preceding calendar year;
265265 (2) a quarterly interim financial statement and report
266266 regarding the permissible investments required to be maintained
267267 under Section 151.309 that reflect the license holder's financial
268268 condition and permissible investments as of the last day of the
269269 calendar quarter to which the statement and report relate and that
270270 are prepared not later than the 45th day after the last day of the
271271 calendar quarter; and
272272 (3) any other report required by rule of the
273273 commission or reasonably requested by the commissioner to determine
274274 compliance with this chapter.
275275 (c) A currency exchange license holder shall prepare a
276276 written report or statement as follows:
277277 (1) the annual [renewal] report required by Section
278278 151.207(b)(2), including a financial statement that may be audited
279279 or unaudited and that is dated as of the last day of the license
280280 holder's fiscal year that ended in the immediately preceding
281281 calendar year;
282282 (2) a quarterly interim financial statement and
283283 transaction report that reflects the license holder's financial
284284 condition and currency exchange business as of the last day of the
285285 calendar quarter to which the statement and report relate and that
286286 are prepared not later than the 45th day after the last day of the
287287 calendar quarter; and
288288 (3) any other report required by rule of the
289289 commission or reasonably requested by the commissioner to determine
290290 compliance with this chapter.
291291 SECTION 16. Subsection (a), Section 151.604, Finance Code,
292292 is amended to read as follows:
293293 (a) A license holder shall file a written report with the
294294 commissioner not later than the 15th day after the date the license
295295 holder knows or has reason to know of a material change in the
296296 information reported in an application or annual [renewal] report
297297 required under Section 151.207(b)(2). The report must describe
298298 the change and the anticipated impact of the change on the license
299299 holder's activities in this state.
300300 SECTION 17. Subdivision (1), Section 278.001, Finance Code,
301301 is amended to read as follows:
302302 (1) "Currency" has the meaning assigned by Section
303303 151.501 [153.001].
304304 SECTION 18. Section 278.053, Finance Code, is repealed.
305305 SECTION 19. As soon as practicable after the effective date
306306 of this Act, the Finance Commission of Texas shall adopt rules
307307 necessary to implement the changes in law made by this Act.
308308 SECTION 20. Subsection (a), Section 151.104, Finance Code,
309309 as amended by this Act, applies only to an investigation commenced
310310 on or after the effective date of this Act. An investigation
311311 commenced before the effective date of this Act is governed by the
312312 law in effect on the date the investigation was commenced, and the
313313 former law is continued in effect for that purpose.
314314 SECTION 21. This Act takes effect September 1, 2013.
315315 * * * * *