Texas 2019 - 86th Regular

Texas House Bill HB2458 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 2458
	1	+	By: Capriglione, Parker (Senate Sponsor - Fallon) H.B. No. 2458
	2	+	(In the Senate - Received from the House April 26, 2019;
	3	+	April 29, 2019, read first time and referred to Committee on
	4	+	Finance; May 7, 2019, reported favorably by the following vote:
	5	+	Yeas 14, Nays 0; May 7, 2019, sent to printer.)
	6	+	Click here to see the committee vote
2	7
3	8
	9	+	A BILL TO BE ENTITLED
4	10		AN ACT
5	11		relating to the operation and administration of the Texas Bullion
6	12		Depository.
7	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	14		SECTION 1. Section 151.002(a), Finance Code, is amended to
9	15		read as follows:
10	16		(a) This section defines general terms that apply to an
11	17		applicant for or holder of a money services license issued under
12	18		this chapter, regardless of whether the license is a money
13	19		transmission license or [,] a currency exchange license[, or a
14	20		depository agent license]. Additional terms that apply
15	21		specifically to money transmission are defined in Section
16	22		151.301. Additional terms that apply specifically to currency
17	23		exchange are defined in Section 151.501. [Additional terms that
18	24		apply specifically to depository agents are defined in Section
19	25		151.851.]
20	26		SECTION 2. Sections 151.002(b)(11) and (14), Finance Code,
21	27		are amended to read as follows:
22	28		(11) "License holder" means a person that holds a
23	29		money transmission license or[,] a currency exchange license[, or a
24	30		depository agent license].
25	31		(14) "Money services" means money transmission or[,]
26	32		currency exchange[, or depository agent] services.
27	33		SECTION 3. Section 151.003, Finance Code, is amended to
28	34		read as follows:
29	35		Sec. 151.003. EXCLUSIONS. The [Subject to Subchapter J,
30	36		the] following persons are not required to be licensed under this
31	37		chapter:
32	38		(1) the United States or an instrumentality of the
33	39		United States, including the United States Post Office or a
34	40		contractor acting on behalf of the United States Post Office;
35	41		(2) a state or an agency, political subdivision, or
36	42		other instrumentality of a state;
37	43		(3) a federally insured financial institution, as that
38	44		term is defined by Section 201.101, that is organized under the laws
39	45		of this state, another state, or the United States;
40	46		(4) a foreign bank branch or agency in the United
41	47		States established under the federal International Banking Act of
42	48		1978 (12 U.S.C. Section 3101 et seq.);
43	49		(5) a person acting as an agent for an entity excluded
44	50		under Subdivision (3) or (4), to the extent of the person's actions
45	51		in that capacity, provided that:
46	52		(A) the entity is liable for satisfying the money
47	53		services obligation owed to the purchaser on the person's receipt
48	54		of the purchaser's money; and
49	55		(B) the entity and person enter into a written
50	56		contract that appoints the person as the entity's agent and the
51	57		person acts only within the scope of authority conferred by the
52	58		contract;
53	59		(6) a person that, on behalf of the United States or a
54	60		department, agency, or instrumentality of the United States, or a
55	61		state or county, city, or any other governmental agency or
56	62		political subdivision of a state, provides electronic funds
57	63		transfer services of governmental benefits for a federal, state,
58	64		county, or local governmental agency;
59	65		(7) a person that acts as an intermediary on behalf of
60	66		and at the direction of a license holder in the process by which the
61	67		license holder, after receiving money or monetary value from a
62	68		purchaser, either directly or through an authorized delegate,
63	69		transmits the money or monetary value to the purchaser's designated
64	70		recipient, provided that the license holder is liable for
65	71		satisfying the obligation owed to the purchaser;
66	72		(8) an attorney or title company that in connection
67	73		with a real property transaction receives and disburses domestic
68	74		currency or issues an escrow or trust fund check only on behalf of a
69	75		party to the transaction;
70	76		(9) a person engaged in the business of currency
71	77		transportation who is both a registered motor carrier under Chapter
72	78		643, Transportation Code, and a licensed armored car company or
73	79		courier company under Chapter 1702, Occupations Code, provided that
74	80		the person:
75	81		(A) only transports currency:
76	82		(i) from a person to the same person at
77	83		another location;
78	84		(ii) from a person to a financial
79	85		institution to be deposited in an account belonging to the same
80	86		person; or
81	87		(iii) to a person from a financial
82	88		institution after being withdrawn from an account belonging to the
83	89		same person; and
84	90		(B) does not otherwise engage in the money
85	91		transmission or currency exchange business [or depository agent
86	92		services business] without a license issued under this chapter;
87	93		(9-a) a trust company, as defined by Section
88	94		187.001(a), that is organized under the laws of this state; and
89	95		(10) any other person, transaction, or class of
90	96		persons or transactions exempted by commission rule or any other
91	97		person or transaction exempted by the commissioner's order on a
92	98		finding that the licensing of the person is not necessary to achieve
93	99		the purposes of this chapter.
94	100		SECTION 4. Section 151.201, Finance Code, is amended to
95	101		read as follows:
96	102		Sec. 151.201. SCOPE. This subchapter sets out the general
97	103		qualifications and provisions that apply to a money services
98	104		license, regardless of whether the license is a money transmission
99	105		license or [,] a currency exchange license[, or a depository agent
100	106		license]. Subchapters D and E set forth the additional
101	107		qualifications and provisions that apply specifically to a money
102	108		transmission license. Subchapter F sets forth the additional
103	109		qualifications and provisions that apply specifically to a currency
104	110		exchange license. [Subchapter J sets forth the additional
105	111		qualifications and provisions that apply specifically to a
106	112		depository agent license.]
107	113		SECTION 5. Sections 151.207(a), (b), and (d), Finance Code,
108	114		are amended to read as follows:
109	115		(a) If a license holder does not continue to meet the
110	116		qualifications or satisfy the requirements that apply to an
111	117		applicant for a new money transmission license or [,] currency
112	118		exchange license, [or depository agent license,] as applicable, the
113	119		commissioner may suspend or revoke the license holder's license.
114	120		(b) In addition to complying with Subsection (a), a license
115	121		holder must annually:
116	122		(1) pay a license fee in an amount established by
117	123		commission rule; and
118	124		(2) submit a report that is under oath, is in the form
119	125		and medium required by the commissioner, and contains:
120	126		(A) if the license is a money transmission
121	127		license [or depository agent license], an audited unconsolidated
122	128		financial statement dated as of the last day of the license holder's
123	129		fiscal year that ended in the immediately preceding calendar year;
124	130		(B) if the license is a currency exchange
125	131		license, a financial statement, audited or unaudited, dated as of
126	132		the last day of the license holder's fiscal year that ended in the
127	133		immediately preceding calendar year; and
128	134		(C) documentation and certification, or any
129	135		other information the commissioner reasonably requires to
130	136		determine the security, net worth, permissible investments, and
131	137		other requirements the license holder must satisfy and whether the
132	138		license holder continues to meet the qualifications and
133	139		requirements for licensure.
134	140		(d) If the license holder fails to submit the completed
135	141		annual report and pay the annual license fee and any late fee due
136	142		within the time prescribed by Subsection (c)(1), the license
137	143		expires, and the license holder must cease and desist from engaging
138	144		in the business of money transmission or [,] currency exchange, [or
139	145		depository agent services,] as applicable, as of that date. The
140	146		expiration of a license is not subject to appeal.
141	147		SECTION 6. Section 151.302(a), Finance Code, as amended by
142	148		Chapters 75 (S.B. 899) and 1000 (H.B. 483), Acts of the 84th
143	149		Legislature, Regular Session, 2015, is reenacted to read as
144	150		follows:
145	151		(a) A person may not engage in the business of money
146	152		transmission in this state or advertise, solicit, or represent that
147	153		the person engages in the business of money transmission in this
148	154		state unless the person:
149	155		(1) is licensed under this subchapter;
150	156		(2) is an authorized delegate of a person licensed
151	157		under this subchapter, appointed by the license holder in
152	158		accordance with Section 151.402;
153	159		(3) is excluded from licensure under Section 151.003;
154	160		or
155	161		(4) has been granted an exemption under Subsection
156	162		(c).
157	163		SECTION 7. Section 151.502(a), Finance Code, is amended to
158	164		read as follows:
159	165		(a) A person may not engage in the business of currency
160	166		exchange or advertise, solicit, or hold itself out as providing
161	167		currency exchange unless the person:
162	168		(1) is licensed under this subchapter;
163	169		(2) is licensed for money transmission under
164	170		Subchapter D;
165	171		(3) is an authorized delegate of a person licensed for
166	172		money transmission under Subchapter D;
167	173		(4) is excluded under Section 151.003; or
168	174		(5) [is licensed as a depository agent under
169	175		Subchapter J and only engages in the business of currency exchange
170	176		in connection with, and to the extent necessary for, the
171	177		performance of depository agent activities; or
172	178		[(6)] has been granted an exemption under Subsection
173	179		(d).
174	180		SECTION 8. Section 151.602(a), Finance Code, is amended to
175	181		read as follows:
176	182		(a) A license holder must prepare, maintain, and preserve
177	183		the following books, accounts, and other records for at least five
178	184		years or another period as may be prescribed by rule of the
179	185		commission:
180	186		(1) a record of each money transmission transaction or
181	187		[,] currency exchange transaction, [or depository agent services
182	188		transaction,] as applicable;
183	189		(2) a general ledger posted in accordance with
184	190		generally accepted accounting principles containing all asset,
185	191		liability, capital, income, and expense accounts, unless directed
186	192		otherwise by the commissioner;
187	193		(3) bank statements and bank reconciliation records;
188	194		(4) all records and reports required by applicable
189	195		state and federal law, including the reporting and recordkeeping
190	196		requirements imposed by the Bank Secrecy Act, the USA PATRIOT ACT,
191	197		and Chapter 271, and other federal and state laws pertaining to
192	198		money laundering, drug trafficking, or terrorist funding; and
193	199		(5) any other records required by commission rule or
194	200		reasonably requested by the commissioner to determine compliance
195	201		with this chapter.
196	202		SECTION 9. Section 2116.001, Government Code, is amended by
197	203		amending Subdivision (9) and adding Subdivision (9-a) to read as
198	204		follows:
199	205		(9) "Depository agent" means a financial institution
200	206		that has entered into an agreement with the depository to provide a
201	207		retail location for the provision of depository services to the
202	208		general public on behalf of [person licensed in accordance with
203	209		this chapter to serve as an intermediary between] the depository
204	210		[and a retail customer in making a transaction in precious metals
205	211		bullion or specie].
206	212		(9-a) "Financial institution" has the meaning
207	213		assigned by Section 201.101, Finance Code.
208	214		SECTION 10. Section 2116.002, Government Code, is amended
209	215		by adding Subsection (c) to read as follows:
210	216		(c) The comptroller shall adopt rules necessary to carry out
211	217		this chapter.
212	218		SECTION 11. Section 2116.003, Government Code, is amended
213	219		by amending Subsection (c) and adding Subsection (d) to read as
214	220		follows:
215	221		(c) The administrator may appoint or employ, subject to the
216	222		approval of the comptroller, a deputy administrator or other
217	223		subordinate officers or employees [officer] as necessary and
218	224		appropriate to the efficient administration of the depository.
219	225		(d) The comptroller may employ security officers to provide
220	226		needed security services for the depository and may commission the
221	227		officers as peace officers.
222	228		SECTION 12. Sections 2116.005(c) and (d), Government Code,
223	229		are amended to read as follows:
224	230		(c) The comptroller [by rule] shall adopt standards by which
225	231		the quantities of precious metals deposited are credited to a
226	232		depositor's depository account by reference to the particular form
227	233		in which the metals were deposited, classified by mint,
228	234		denomination, weight, assay mark, or other indicator, as
229	235		applicable. The standards must conform to applicable national and
230	236		international standards of weights and measures.
231	237		(d) The comptroller [by rule] may, if the comptroller
232	238		determines that to do so is in the public interest, restrict the
233	239		forms in which deposits of precious metals may be made [to those
234	240		forms that conveniently lend themselves to measurement and
235	241		accounting in units of troy ounces and standardized fractions of
236	242		troy ounces].
237	243		SECTION 13. Sections 2116.006(b) and (c), Government Code,
238	244		are amended to read as follows:
239	245		(b) The depository shall make a delivery described by
240	246		Subsection (a) on demand by the presentment of a written demand
241	247		[suitable check, draft,] or digital electronic instruction to the
242	248		depository or a depository agent. The comptroller may prescribe
243	249		[by rule shall adopt] the forms, standards, and processes through
244	250		which an order for delivery on demand may be made, presented, and
245	251		honored.
246	252		(c) The depository shall make a delivery at the depository's
247	253		settlement facility designated by the comptroller, shipping to an
248	254		address specified by the account holder or, at the depository's
249	255		discretion, at a facility of a depository agent at which
250	256		presentment is made, not later than 10 [five] business days after
251	257		the date of presentment.
252	258		SECTION 14. Section 2116.007, Government Code, is amended
253	259		to read as follows:
254	260		Sec. 2116.007. TRANSFER OF DEPOSITORY ACCOUNT BALANCE. (a)
255	261		In accordance with rules adopted under this chapter, a depository
256	262		account holder may transfer any portion of the balance of the
257	263		holder's depository account by written demand [check, draft,] or
258	264		digital electronic instruction to another person [depository
259	265		account holder or to a person who at the time the transfer is
260	266		initiated is not a depository account holder].
261	267		(b) The depository shall adjust the depository account
262	268		balances of the depository accounts to reflect a transfer
263	269		transaction between depository account holders on presentment of
264	270		the written demand [check, draft,] or other instruction by reducing
265	271		the payor's depository account balance and increasing the
266	272		depository account balance of the payee accordingly.
267	273		(c) If a depository account holder transfers to a payee who
268	274		is not a depository account holder any portion of the balance of the
269	275		depository account holder's depository account, the depository
270	276		shall, if the payee is otherwise eligible to open a depository
271	277		account under applicable laws and depository policy, allow the
272	278		payee to establish a depository account [by presentment of the
273	279		payor's check, draft, or instruction to the depository or to a
274	280		depository agent]. The depository shall credit a newly
275	281		established account on behalf of the payee and shall debit the
276	282		payor's account accordingly.
277	283		SECTION 15. Sections 2116.008(c) and (e), Government Code,
278	284		are amended to read as follows:
279	285		(c) The depository [or a depository agent] shall hold the
280	286		contract for a depository account in the records pertaining to the
281	287		account.
282	288		(e) The depository and the depository account holder may
283	289		amend a contract for a depository account by agreement, or the
284	290		depository may amend the deposit contract by providing [mailing a]
285	291		written notice of the amendment to the account holder, separately
286	292		or as an enclosure with or part of the account holder's statement of
287	293		account or passbook. In the case of amendment by notice from the
288	294		depository, the notice must include the text and effective date of
289	295		the amendment. The notice may be provided electronically. The
290	296		effective date may not be earlier than the 30th day after the date
291	297		the notice is mailed, unless otherwise provided by rules adopted
292	298		under this chapter.
293	299		SECTION 16. Section 2116.010, Government Code, is amended
294	300		to read as follows:
295	301		Sec. 2116.010. FEES; SERVICE CHARGES; PENALTIES. The
296	302		comptroller [by rule] may establish fees, service charges, and
297	303		penalties to be charged a depository account holder for a service or
298	304		activity regarding a depository account, including a fee for an
299	305		overdraft, an insufficient fund check or draft, or a stop payment
300	306		order. The comptroller may waive any fees, service charges, or
301	307		penalties established under this section.
302	308		SECTION 17. Section 2116.021, Government Code, is amended
303	309		to read as follows:
304	310		Sec. 2116.021. TRANSACTIONS AND RELATIONSHIPS; MARKETING
305	311		AND PUBLICITY. (a) The depository may [shall] enter into
306	312		transactions and relationships with bullion banks, depositories,
307	313		dealers, central banks, sovereign wealth funds, financial
308	314		institutions, international nongovernmental organizations, and
309	315		other persons, located inside or outside of this state or inside or
310	316		outside of the United States, as the comptroller determines to be
311	317		prudent and suitable to facilitate the operations of the depository
312	318		and to further the purposes of this chapter.
313	319		(b) The depository may advertise and promote the depository
314	320		in any available media.
315	321		(c) The depository may issue, sell, license for sale, or
316	322		obtain a license to sell promotional items approved by the
317	323		administrator to further the purposes of this chapter and to
318	324		promote the depository. The depository may set commercially
319	325		reasonable prices for items licensed or sold under this section.
320	326		SECTION 18. Section 2116.023, Government Code, is amended
321	327		by adding Subsection (d) to read as follows:
322	328		(d) The depository shall refer any matter relating to an
323	329		action described by Subsection (a) to the attorney general for
324	330		resolution.
325	331		SECTION 19. Section 2116.024, Government Code, is amended
326	332		to read as follows:
327	333		Sec. 2116.024. OFFICIAL EXCHANGE RATES. The comptroller
328	334		[by rule] shall establish the references by which the official
329	335		exchange rate for pricing precious metals transactions in terms of
330	336		United States dollars or other currency must be established at the
331	337		time of a depository transaction. The comptroller shall establish
332	338		procedures and facilities through which the rates are made
333	339		discoverable at all reasonable times by system participants, both
334	340		on a real-time basis and retrospectively.
335	341		SECTION 20. Section 2116.025, Government Code, is amended
336	342		to read as follows:
337	343		Sec. 2116.025. FACILITATION OF ACCOUNTING AND REPORTING OF
338	344		TAXABLE GAINS. The comptroller [by rule] shall establish
339	345		procedures and requirements for the depository and depository
340	346		agents designed to minimize the burden to system participants of
341	347		accounting for and reporting taxable gains and losses arising out
342	348		of depository transactions as denominated in United States dollars
343	349		or another currency.
344	350		SECTION 21. Subchapter A, Chapter 2116, Government Code, is
345	351		amended by adding Section 2116.027 to read as follows:
346	352		Sec. 2116.027. CONFIDENTIALITY OF RECORDS; OTHER RECORDS
347	353		EXEMPT FROM DISCLOSURE. (a) Records relating to individual
348	354		depository accounts or depository account holders, including
349	355		current, former, or prospective depository account holders, that
350	356		are in the custody of the depository or a vendor performing services
351	357		related to the depository are confidential and exempt from
352	358		disclosure under Chapter 552.
353	359		(b) The following information of the depository is excepted
354	360		from the requirements of Section 552.021:
355	361		(1) records and other information related to the
356	362		security of the depository;
357	363		(2) records related to the method of setting the
358	364		depository's fees, service charges, penalties, and other charges or
359	365		payments; and
360	366		(3) commercial or financial information that would
361	367		cause substantial competitive harm to the depository, including
362	368		operational or other information that would give advantage to
363	369		competitors or bidders.
364	370		(c) Notwithstanding Subsection (a), depository account
365	371		information may be disclosed:
366	372		(1) to a depository account holder regarding the
367	373		depository account holder's account;
368	374		(2) to a state or federal agency as required by
369	375		applicable law;
370	376		(3) to a vendor providing services to the depository;
371	377		(4) in response to a subpoena issued under applicable
372	378		law;
373	379		(5) if compiled as collective information that does
374	380		not include any identifying information about a person; or
375	381		(6) as otherwise permitted by the depository account
376	382		agreement applicable to a depository account holder's account.
377	383		SECTION 22. Section 2116.051, Government Code, is amended
378	384		to read as follows:
379	385		Sec. 2116.051. USE OF DEPOSITORY AGENTS. The depository
380	386		may [shall] use private, independently managed financial [firms
381	387		and] institutions to provide retail locations for the provision of
382	388		depository services to the public [licensed as depository agents as
383	389		intermediaries to conduct retail transactions in bullion and
384	390		specie] on behalf of the depository [with current and prospective
385	391		depository account holders].
386	392		SECTION 23. The following laws are repealed:
387	393		(1) Sections 151.002(b)(9-a), (9-b), and (9-c),
388	394		Finance Code;
389	395		(2) Section 151.603(c-1), Finance Code; and
390	396		(3) Subchapter J, Chapter 151, Finance Code.
391	397		SECTION 24. This Act takes effect immediately if it
392	398		receives a vote of two-thirds of all the members elected to each
393	399		house, as provided by Section 39, Article III, Texas Constitution.
394	400		If this Act does not receive the vote necessary for immediate
395	401		effect, this Act takes effect September 1, 2019.
396		-	______________________________ ______________________________
397		-	President of the Senate Speaker of the House
398		-	I certify that H.B. No. 2458 was passed by the House on April
399		-	25, 2019, by the following vote: Yeas 133, Nays 2, 1 present, not
400		-	voting.
401		-	______________________________
402		-	Chief Clerk of the House
403		-	I certify that H.B. No. 2458 was passed by the Senate on May
404		-	10, 2019, by the following vote: Yeas 31, Nays 0.
405		-	______________________________
406		-	Secretary of the Senate
407		-	APPROVED: _____________________
408		-	Date
409		-	_____________________
410		-	Governor
	402	+	* * * * *