Texas 2019 - 86th Regular

Texas Senate Bill SB1692 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R6274 SRA-F
2	2	By: Fallon S.B. No. 1692
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the operation and administration of the Texas Bullion
8	8	Depository.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 151.002(a), Finance Code, is amended to
11	11	read as follows:
12	12	(a) This section defines general terms that apply to an
13	13	applicant for or holder of a money services license issued under
14	14	this chapter, regardless of whether the license is a money
15	15	transmission license or [,] a currency exchange license[, or a
16	16	depository agent license]. Additional terms that apply
17	17	specifically to money transmission are defined in Section
18	18	151.301. Additional terms that apply specifically to currency
19	19	exchange are defined in Section 151.501. [Additional terms that
20	20	apply specifically to depository agents are defined in Section
21	21	151.851.]
22	22	SECTION 2. Section 151.002(b)(11), Finance Code, is amended
23	23	to read as follows:
24	24	(11) "License holder" means a person that holds a
25	25	money transmission license or[,] a currency exchange license[, or a
26	26	depository agent license].
27	27	SECTION 3. Section 151.003, Finance Code, is amended to
28	28	read as follows:
29	29	Sec. 151.003. EXCLUSIONS. The [Subject to Subchapter J,
30	30	the] following persons are not required to be licensed under this
31	31	chapter:
32	32	(1) the United States or an instrumentality of the
33	33	United States, including the United States Post Office or a
34	34	contractor acting on behalf of the United States Post Office;
35	35	(2) a state or an agency, political subdivision, or
36	36	other instrumentality of a state;
37	37	(3) a federally insured financial institution, as that
38	38	term is defined by Section 201.101, that is organized under the laws
39	39	of this state, another state, or the United States;
40	40	(4) a foreign bank branch or agency in the United
41	41	States established under the federal International Banking Act of
42	42	1978 (12 U.S.C. Section 3101 et seq.);
43	43	(5) a person acting as an agent for an entity excluded
44	44	under Subdivision (3) or (4), to the extent of the person's actions
45	45	in that capacity, provided that:
46	46	(A) the entity is liable for satisfying the money
47	47	services obligation owed to the purchaser on the person's receipt
48	48	of the purchaser's money; and
49	49	(B) the entity and person enter into a written
50	50	contract that appoints the person as the entity's agent and the
51	51	person acts only within the scope of authority conferred by the
52	52	contract;
53	53	(6) a person that, on behalf of the United States or a
54	54	department, agency, or instrumentality of the United States, or a
55	55	state or county, city, or any other governmental agency or
56	56	political subdivision of a state, provides electronic funds
57	57	transfer services of governmental benefits for a federal, state,
58	58	county, or local governmental agency;
59	59	(7) a person that acts as an intermediary on behalf of
60	60	and at the direction of a license holder in the process by which the
61	61	license holder, after receiving money or monetary value from a
62	62	purchaser, either directly or through an authorized delegate,
63	63	transmits the money or monetary value to the purchaser's designated
64	64	recipient, provided that the license holder is liable for
65	65	satisfying the obligation owed to the purchaser;
66	66	(8) an attorney or title company that in connection
67	67	with a real property transaction receives and disburses domestic
68	68	currency or issues an escrow or trust fund check only on behalf of a
69	69	party to the transaction;
70	70	(9) a person engaged in the business of currency
71	71	transportation who is both a registered motor carrier under Chapter
72	72	643, Transportation Code, and a licensed armored car company or
73	73	courier company under Chapter 1702, Occupations Code, provided that
74	74	the person:
75	75	(A) only transports currency:
76	76	(i) from a person to the same person at
77	77	another location;
78	78	(ii) from a person to a financial
79	79	institution to be deposited in an account belonging to the same
80	80	person; or
81	81	(iii) to a person from a financial
82	82	institution after being withdrawn from an account belonging to the
83	83	same person; and
84	84	(B) does not otherwise engage in the money
85	85	transmission or currency exchange business [or depository agent
86	86	services business] without a license issued under this chapter;
87	87	(9-a) a trust company, as defined by Section
88	88	187.001(a), that is organized under the laws of this state; and
89	89	(10) any other person, transaction, or class of
90	90	persons or transactions exempted by commission rule or any other
91	91	person or transaction exempted by the commissioner's order on a
92	92	finding that the licensing of the person is not necessary to achieve
93	93	the purposes of this chapter.
94	94	SECTION 4. Section 151.201, Finance Code, is amended to
95	95	read as follows:
96	96	Sec. 151.201. SCOPE. This subchapter sets out the general
97	97	qualifications and provisions that apply to a money services
98	98	license, regardless of whether the license is a money transmission
99	99	license or [,] a currency exchange license[, or a depository agent
100	100	license]. Subchapters D and E set forth the additional
101	101	qualifications and provisions that apply specifically to a money
102	102	transmission license. Subchapter F sets forth the additional
103	103	qualifications and provisions that apply specifically to a currency
104	104	exchange license. [Subchapter J sets forth the additional
105	105	qualifications and provisions that apply specifically to a
106	106	depository agent license.]
107	107	SECTION 5. Sections 151.207(a), (b), and (d), Finance Code,
108	108	are amended to read as follows:
109	109	(a) If a license holder does not continue to meet the
110	110	qualifications or satisfy the requirements that apply to an
111	111	applicant for a new money transmission license or [,] currency
112	112	exchange license, [or depository agent license,] as applicable, the
113	113	commissioner may suspend or revoke the license holder's license.
114	114	(b) In addition to complying with Subsection (a), a license
115	115	holder must annually:
116	116	(1) pay a license fee in an amount established by
117	117	commission rule; and
118	118	(2) submit a report that is under oath, is in the form
119	119	and medium required by the commissioner, and contains:
120	120	(A) if the license is a money transmission
121	121	license [or depository agent license], an audited unconsolidated
122	122	financial statement dated as of the last day of the license holder's
123	123	fiscal year that ended in the immediately preceding calendar year;
124	124	(B) if the license is a currency exchange
125	125	license, a financial statement, audited or unaudited, dated as of
126	126	the last day of the license holder's fiscal year that ended in the
127	127	immediately preceding calendar year; and
128	128	(C) documentation and certification, or any
129	129	other information the commissioner reasonably requires to
130	130	determine the security, net worth, permissible investments, and
131	131	other requirements the license holder must satisfy and whether the
132	132	license holder continues to meet the qualifications and
133	133	requirements for licensure.
134	134	(d) If the license holder fails to submit the completed
135	135	annual report and pay the annual license fee and any late fee due
136	136	within the time prescribed by Subsection (c)(1), the license
137	137	expires, and the license holder must cease and desist from engaging
138	138	in the business of money transmission or [,] currency exchange, [or
139	139	depository agent services,] as applicable, as of that date. The
140	140	expiration of a license is not subject to appeal.
141	141	SECTION 6. Section 151.302(a), Finance Code, as amended by
142	142	Chapters 75 (S.B. 899) and 1000 (H.B. 483), Acts of the 84th
143	143	Legislature, Regular Session, 2015, is reenacted to read as
144	144	follows:
145	145	(a) A person may not engage in the business of money
146	146	transmission in this state or advertise, solicit, or represent that
147	147	the person engages in the business of money transmission in this
148	148	state unless the person:
149	149	(1) is licensed under this subchapter;
150	150	(2) is an authorized delegate of a person licensed
151	151	under this subchapter, appointed by the license holder in
152	152	accordance with Section 151.402;
153	153	(3) is excluded from licensure under Section 151.003;
154	154	or
155	155	(4) has been granted an exemption under Subsection
156	156	(c).
157	157	SECTION 7. Section 151.502(a), Finance Code, is amended to
158	158	read as follows:
159	159	(a) A person may not engage in the business of currency
160	160	exchange or advertise, solicit, or hold itself out as providing
161	161	currency exchange unless the person:
162	162	(1) is licensed under this subchapter;
163	163	(2) is licensed for money transmission under
164	164	Subchapter D;
165	165	(3) is an authorized delegate of a person licensed for
166	166	money transmission under Subchapter D;
167	167	(4) is excluded under Section 151.003; or
168	168	(5) [is licensed as a depository agent under
169	169	Subchapter J and only engages in the business of currency exchange
170	170	in connection with, and to the extent necessary for, the
171	171	performance of depository agent activities; or
172	172	[(6)] has been granted an exemption under Subsection
173	173	(d).
174	174	SECTION 8. Section 151.602(a), Finance Code, is amended to
175	175	read as follows:
176	176	(a) A license holder must prepare, maintain, and preserve
177	177	the following books, accounts, and other records for at least five
178	178	years or another period as may be prescribed by rule of the
179	179	commission:
180	180	(1) a record of each money transmission transaction or
181	181	[,] currency exchange transaction, [or depository agent services
182	182	transaction,] as applicable;
183	183	(2) a general ledger posted in accordance with
184	184	generally accepted accounting principles containing all asset,
185	185	liability, capital, income, and expense accounts, unless directed
186	186	otherwise by the commissioner;
187	187	(3) bank statements and bank reconciliation records;
188	188	(4) all records and reports required by applicable
189	189	state and federal law, including the reporting and recordkeeping
190	190	requirements imposed by the Bank Secrecy Act, the USA PATRIOT ACT,
191	191	and Chapter 271, and other federal and state laws pertaining to
192	192	money laundering, drug trafficking, or terrorist funding; and
193	193	(5) any other records required by commission rule or
194	194	reasonably requested by the commissioner to determine compliance
195	195	with this chapter.
196	196	SECTION 9. Section 2116.001, Government Code, is amended by
197	197	amending Subdivision (9) and adding Subdivision (9-a) to read as
198	198	follows:
199	199	(9) "Depository agent" means a financial institution
200	200	that has entered into an agreement with the depository to provide a
201	201	retail location for the provision of depository services to the
202	202	general public on behalf of [person licensed in accordance with
203	203	this chapter to serve as an intermediary between] the depository
204	204	[and a retail customer in making a transaction in precious metals
205	205	bullion or specie].
206	206	(9-a) "Financial institution" has the meaning
207	207	assigned by Section 201.101, Finance Code.
208	208	SECTION 10. Section 2116.002, Government Code, is amended
209	209	by adding Subsection (c) to read as follows:
210	210	(c) The comptroller shall adopt rules necessary to carry out
211	211	this chapter.
212	212	SECTION 11. Section 2116.003, Government Code, is amended
213	213	by amending Subsections (a) and (c) and adding Subsection (d) to
214	214	read as follows:
215	215	(a) The depository is administered as a division of the
216	216	office of the comptroller and under the direction and supervision
217	217	of a bullion depository administrator appointed by the comptroller
218	218	[with the advice and consent of the governor, lieutenant governor,
219	219	and senate].
220	220	(c) The administrator may appoint or employ, subject to the
221	221	approval of the comptroller, a deputy administrator or other
222	222	subordinate officers or employees [officer] as necessary and
223	223	appropriate to the efficient administration of the depository.
224	224	(d) The comptroller may employ security officers to provide
225	225	needed security services for the depository and may commission the
226	226	officers as peace officers.
227	227	SECTION 12. Sections 2116.005(c) and (d), Government Code,
228	228	are amended to read as follows:
229	229	(c) The comptroller [by rule] shall adopt standards by which
230	230	the quantities of precious metals deposited are credited to a
231	231	depositor's depository account by reference to the particular form
232	232	in which the metals were deposited, classified by mint,
233	233	denomination, weight, assay mark, or other indicator, as
234	234	applicable. The standards must conform to applicable national and
235	235	international standards of weights and measures.
236	236	(d) The comptroller [by rule] may, if the comptroller
237	237	determines that to do so is in the public interest, restrict the
238	238	forms in which deposits of precious metals may be made [to those
239	239	forms that conveniently lend themselves to measurement and
240	240	accounting in units of troy ounces and standardized fractions of
241	241	troy ounces].
242	242	SECTION 13. Sections 2116.006(b) and (c), Government Code,
243	243	are amended to read as follows:
244	244	(b) The depository shall make a delivery described by
245	245	Subsection (a) on demand by the presentment of a written demand
246	246	[suitable check, draft,] or digital electronic instruction to the
247	247	depository or a depository agent. The comptroller may prescribe
248	248	[by rule shall adopt] the forms, standards, and processes through
249	249	which an order for delivery on demand may be made, presented, and
250	250	honored.
251	251	(c) The depository shall make a delivery at the depository's
252	252	settlement facility designated by the comptroller, shipping to an
253	253	address specified by the account holder or, at the depository's
254	254	discretion, at a facility of a depository agent at which
255	255	presentment is made, not later than 10 [five] business days after
256	256	the date of presentment.
257	257	SECTION 14. Section 2116.007, Government Code, is amended
258	258	to read as follows:
259	259	Sec. 2116.007. TRANSFER OF DEPOSITORY ACCOUNT BALANCE. (a)
260	260	In accordance with rules adopted under this chapter, a depository
261	261	account holder may transfer any portion of the balance of the
262	262	holder's depository account by written demand [check, draft,] or
263	263	digital electronic instruction to another person [depository
264	264	account holder or to a person who at the time the transfer is
265	265	initiated is not a depository account holder].
266	266	(b) The depository shall adjust the depository account
267	267	balances of the depository accounts to reflect a transfer
268	268	transaction between depository account holders on presentment of
269	269	the written demand [check, draft,] or other instruction by reducing
270	270	the payor's depository account balance and increasing the
271	271	depository account balance of the payee accordingly.
272	272	(c) If a depository account holder transfers to a payee who
273	273	is not a depository account holder any portion of the balance of the
274	274	depository account holder's depository account, the depository
275	275	shall, if the payee is otherwise eligible to open a depository
276	276	account under applicable laws and depository policy, allow the
277	277	payee to establish a depository account [by presentment of the
278	278	payor's check, draft, or instruction to the depository or to a
279	279	depository agent]. The depository shall credit a newly
280	280	established account on behalf of the payee and shall debit the
281	281	payor's account accordingly.
282	282	SECTION 15. Sections 2116.008(c) and (e), Government Code,
283	283	are amended to read as follows:
284	284	(c) The depository [or a depository agent] shall hold the
285	285	contract for a depository account in the records pertaining to the
286	286	account.
287	287	(e) The depository and the depository account holder may
288	288	amend a contract for a depository account by agreement, or the
289	289	depository may amend the deposit contract by providing [mailing a]
290	290	written notice of the amendment to the account holder, separately
291	291	or as an enclosure with or part of the account holder's statement of
292	292	account or passbook. In the case of amendment by notice from the
293	293	depository, the notice must include the text and effective date of
294	294	the amendment. The notice may be provided electronically. The
295	295	effective date may not be earlier than the 30th day after the date
296	296	the notice is mailed, unless otherwise provided by rules adopted
297	297	under this chapter.
298	298	SECTION 16. Section 2116.010, Government Code, is amended
299	299	to read as follows:
300	300	Sec. 2116.010. FEES; SERVICE CHARGES; PENALTIES. The
301	301	comptroller [by rule] may establish fees, service charges, and
302	302	penalties to be charged a depository account holder for a service or
303	303	activity regarding a depository account, including a fee for an
304	304	overdraft, an insufficient fund check or draft, or a stop payment
305	305	order. The comptroller may waive any fees, service charges, or
306	306	penalties established under this section.
307	307	SECTION 17. Section 2116.021, Government Code, is amended
308	308	to read as follows:
309	309	Sec. 2116.021. TRANSACTIONS AND RELATIONSHIPS; MARKETING
310	310	AND PUBLICITY. (a) The depository may [shall] enter into
311	311	transactions and relationships with bullion banks, depositories,
312	312	dealers, central banks, sovereign wealth funds, financial
313	313	institutions, international nongovernmental organizations, and
314	314	other persons, located inside or outside of this state or inside or
315	315	outside of the United States, as the comptroller determines to be
316	316	prudent and suitable to facilitate the operations of the depository
317	317	and to further the purposes of this chapter.
318	318	(b) The depository may advertise and promote the depository
319	319	in any available media.
320	320	(c) The depository may issue, sell, or license for sale
321	321	promotional items approved by the administrator to further the
322	322	purposes of this chapter and to promote the depository. The
323	323	depository may set commercially reasonable prices for items
324	324	licensed or sold under this section.
325	325	SECTION 18. Section 2116.023, Government Code, is amended
326	326	by adding Subsection (d) to read as follows:
327	327	(d) The depository shall refer any matter relating to an
328	328	action described by Subsection (a) to the attorney general for
329	329	resolution.
330	330	SECTION 19. Section 2116.024, Government Code, is amended
331	331	to read as follows:
332	332	Sec. 2116.024. OFFICIAL EXCHANGE RATES. The comptroller
333	333	[by rule] shall establish the references by which the official
334	334	exchange rate for pricing precious metals transactions in terms of
335	335	United States dollars or other currency must be established at the
336	336	time of a depository transaction. The comptroller shall establish
337	337	procedures and facilities through which the rates are made
338	338	discoverable at all reasonable times by system participants, both
339	339	on a real-time basis and retrospectively.
340	340	SECTION 20. Section 2116.025, Government Code, is amended
341	341	to read as follows:
342	342	Sec. 2116.025. FACILITATION OF ACCOUNTING AND REPORTING OF
343	343	TAXABLE GAINS. The comptroller [by rule] shall establish
344	344	procedures and requirements for the depository and depository
345	345	agents designed to minimize the burden to system participants of
346	346	accounting for and reporting taxable gains and losses arising out
347	347	of depository transactions as denominated in United States dollars
348	348	or another currency.
349	349	SECTION 21. Subchapter A, Chapter 2116, Government Code, is
350	350	amended by adding Sections 2116.027 and 2116.028 to read as
351	351	follows:
352	352	Sec. 2116.027. CONFIDENTIALITY OF RECORDS; OTHER RECORDS
353	353	EXEMPT FROM DISCLOSURE. (a) Records relating to individual
354	354	depository accounts or depository account holders, including
355	355	current, former, or prospective depository account holders, that
356	356	are in the custody of the depository or a vendor performing services
357	357	related to the depository are confidential and exempt from
358	358	disclosure under Chapter 552.
359	359	(b) The following information of the depository is excepted
360	360	from the requirements of Section 552.021:
361	361	(1) records and other information related to the
362	362	security of the depository;
363	363	(2) records related to the method of setting the
364	364	depository's fees, service charges, penalties, and other charges or
365	365	payments; and
366	366	(3) commercial or financial information that would
367	367	cause substantial competitive harm to the depository, including
368	368	operational or other information that would give advantage to
369	369	competitors or bidders.
370	370	(c) Notwithstanding Subsection (a), depository account
371	371	information may be disclosed:
372	372	(1) to a depository account holder regarding the
373	373	depository account holder's account;
374	374	(2) to a state or federal agency as required by
375	375	applicable law;
376	376	(3) to a vendor providing services to the depository;
377	377	(4) to a current or prospective depository account
378	378	holder;
379	379	(5) in response to a subpoena issued under applicable
380	380	law;
381	381	(6) if compiled as collective information that does
382	382	not include any identifying information about a person; or
383	383	(7) as otherwise permitted by the depository account
384	384	agreement applicable to a depository account holder's account.
385	385	Sec. 2116.028. EXEMPTION FROM CREDITORS' CLAIMS.
386	386	(a) Property held in the depository is exempt from garnishment,
387	387	attachment, execution, or other seizure by a creditor if the
388	388	property has an aggregate fair market value of not more than $1
389	389	million, exclusive of the amount of any liens, security interests,
390	390	or other charges encumbering the property.
391	391	(b) Subsection (a) does not apply to the claim of a creditor
392	392	for a debt, judgment, lien, or claim, including a tax delinquency,
393	393	that is asserted by or owed to:
394	394	(1) this state or a political subdivision of this
395	395	state;
396	396	(2) a person who has perfected a pledge made under this
397	397	chapter;
398	398	(3) a person who is owed restitution in a criminal
399	399	matter, as reflected in an order of a court; or
400	400	(4) a person who is owed child support arrearages by
401	401	the depository account holder, as reflected in a child support lien
402	402	notice that complies with the requirements of Section 157.313,
403	403	Family Code.
404	404	(c) Subsection (a) does not apply to a claim asserted by a
405	405	governmental entity other than this state if the claim is for a
406	406	debt, judgment, or lien for a tax delinquency.
407	407	(d) Nothing in this section may be construed to increase the
408	408	personal property exemptions available to a person in a bankruptcy
409	409	proceeding.
410	410	SECTION 22. Section 2116.051, Government Code, is amended
411	411	to read as follows:
412	412	Sec. 2116.051. USE OF DEPOSITORY AGENTS. The depository
413	413	may [shall] use private, independently managed financial [firms
414	414	and] institutions to provide retail locations for the provision of
415	415	depository services to the public [licensed as depository agents as
416	416	intermediaries to conduct retail transactions in bullion and
417	417	specie] on behalf of the depository [with current and prospective
418	418	depository account holders].
419	419	SECTION 23. The following laws are repealed:
420	420	(1) Sections 151.002(b)(9-a), (9-b), and (9-c),
421	421	Finance Code;
422	422	(2) Section 151.603(c-1), Finance Code; and
423	423	(3) Subchapter J, Chapter 151, Finance Code.
424	424	SECTION 24. This Act takes effect immediately if it
425	425	receives a vote of two-thirds of all the members elected to each
426	426	house, as provided by Section 39, Article III, Texas Constitution.
427	427	If this Act does not receive the vote necessary for immediate
428	428	effect, this Act takes effect September 1, 2019.