Texas 2023 - 88th Regular

Texas Senate Bill SB1607 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	By: Kolkhorst S.B. No. 1607
2	2	(Schofield)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to prohibiting the imposition of a monetary fine or
8	8	penalty for a violation of a money services business's terms of
9	9	service agreement; providing a civil penalty.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. (a) This section takes effect only if the Act of
12	12	the 88th Legislature, Regular Session, 2023, relating to the
13	13	regulation of money services businesses, does not become law.
14	14	(b) Subchapter E, Chapter 151, Finance Code, is amended by
15	15	adding Section 151.406 to read as follows:
16	16	Sec. 151.406. PROHIBITION ON IMPOSITION OF FINE OR PENALTY
17	17	FOR TERMS OF SERVICE VIOLATION. (a) A money transmission license
18	18	holder may not include in the license holder's terms of service
19	19	agreement a provision allowing or providing for a monetary fine or
20	20	penalty for violating any provision of the terms of service
21	21	agreement.
22	22	(b) This section may not be construed to prevent a money
23	23	transmission license holder from closing a customer account as a
24	24	result of a customer's violation of the license holder's terms of
25	25	service agreement.
26	26	(c) In addition to any other relief provided for a violation
27	27	of this chapter, a money transmission license holder that violates
28	28	this section is liable to this state for a civil penalty in an
29	29	amount equal to three times the amount of the fine or penalty
30	30	imposed by the license holder.
31	31	(d) The attorney general may bring an action in the name of
32	32	the state to recover the civil penalty under Subsection (c). The
33	33	attorney general may recover attorney's fees and costs incurred in
34	34	bringing an action under Subsection (c).
35	35	SECTION 2. (a) This section takes effect only if the Act of
36	36	the 88th Legislature, Regular Session, 2023, relating to the
37	37	regulation of money services businesses, becomes law.
38	38	(b) Subchapter G, Chapter 152, Finance Code, is amended by
39	39	adding Section 152.305 to read as follows:
40	40	Sec. 152.305. PROHIBITION ON IMPOSITION OF FINE OR PENALTY
41	41	FOR TERMS OF SERVICE VIOLATION. (a) A money transmission
42	42	licensee may not include in the licensee's terms of service
43	43	agreement a provision allowing or providing for a monetary fine or
44	44	penalty for violating any provision of the terms of service
45	45	agreement.
46	46	(b) This section may not be construed to prevent a money
47	47	transmission licensee from closing a customer account as a result
48	48	of a customer's violation of the licensee's terms of service
49	49	agreement.
50	50	(c) In addition to any other relief provided for a violation
51	51	of this chapter, a money transmission licensee that violates this
52	52	section is liable to this state for a civil penalty in an amount
53	53	equal to three times the amount of the fine or penalty imposed by
54	54	the licensee.
55	55	(d) The attorney general may bring an action in the name of
56	56	the state to recover the civil penalty under Subsection (c). The
57	57	attorney general may recover attorney's fees and costs incurred in
58	58	bringing an action under Subsection (c).
59	59	SECTION 3. This Act applies only to a terms of service
60	60	agreement entered into after the effective date of this Act. A
61	61	terms of service agreement entered into before the effective date
62	62	of this Act is governed by the law as it existed immediately before
63	63	the effective date of this Act, and the former law is continued in
64	64	effect for that purpose.
65	65	SECTION 4. This Act takes effect September 1, 2023.