By: Kolkhorst S.B. No. 1607
(In the Senate - Filed March 6, 2023; March 16, 2023, read
first time and referred to Committee on Business & Commerce;
April 17, 2023, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 10, Nays 0; April 17, 2023,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 1607 By: Kolkhorst
A BILL TO BE ENTITLED
AN ACT
relating to prohibiting the imposition of a monetary fine or
penalty for a violation of a money services business's terms of
service agreement; providing a civil penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) This section takes effect only if the Act of
the 88th Legislature, Regular Session, 2023, relating to the
regulation of money services businesses, does not become law.
(b) Subchapter E, Chapter 151, Finance Code, is amended by
adding Section 151.406 to read as follows:
Sec. 151.406. PROHIBITION ON IMPOSITION OF FINE OR PENALTY
FOR TERMS OF SERVICE VIOLATION. (a) A money transmission license
holder may not include in the license holder's terms of service
agreement a provision allowing or providing for a monetary fine or
penalty for violating any provision of the terms of service
agreement.
(b) This section may not be construed to prevent a money
transmission license holder from closing a customer account as a
result of a customer's violation of the license holder's terms of
service agreement.
(c) In addition to any other relief provided for a violation
of this chapter, a money transmission license holder that violates
this section is liable to this state for a civil penalty in an
amount equal to three times the amount of the fine or penalty
imposed by the license holder.
(d) The attorney general may bring an action in the name of
the state to recover the civil penalty under Subsection (c). The
attorney general may recover attorney's fees and costs incurred in
bringing an action under Subsection (c).
SECTION 2. (a) This section takes effect only if the Act of
the 88th Legislature, Regular Session, 2023, relating to the
regulation of money services businesses, becomes law.
(b) Subchapter G, Chapter 152, Finance Code, is amended by
adding Section 152.305 to read as follows:
Sec. 152.305. PROHIBITION ON IMPOSITION OF FINE OR PENALTY
FOR TERMS OF SERVICE VIOLATION. (a) A money transmission
licensee may not include in the licensee's terms of service
agreement a provision allowing or providing for a monetary fine or
penalty for violating any provision of the terms of service
agreement.
(b) This section may not be construed to prevent a money
transmission licensee from closing a customer account as a result
of a customer's violation of the licensee's terms of service
agreement.
(c) In addition to any other relief provided for a violation
of this chapter, a money transmission licensee that violates this
section is liable to this state for a civil penalty in an amount
equal to three times the amount of the fine or penalty imposed by
the licensee.
(d) The attorney general may bring an action in the name of
the state to recover the civil penalty under Subsection (c). The
attorney general may recover attorney's fees and costs incurred in
bringing an action under Subsection (c).
SECTION 3. This Act applies only to a terms of service
agreement entered into after the effective date of this Act. A
terms of service agreement entered into before the effective date
of this Act is governed by the law as it existed immediately before
the effective date of this Act, and the former law is continued in
effect for that purpose.
SECTION 4. This Act takes effect September 1, 2023.
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