Texas 2025 - 89th Regular

Texas House Bill HB3805 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		89R18476 PRL-D
2	2		By: Lambert H.B. No. 3805
	3	+	Substitute the following for H.B. No. 3805:
	4	+	By: Holt C.S.H.B. No. 3805
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7	9		A BILL TO BE ENTITLED
8	10		AN ACT
9	11		relating to certain enforcement powers of the banking commissioner
10	12		regarding the regulation of money services businesses.
11	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	14		SECTION 1. Subchapter I, Chapter 152, Finance Code, is
13	15		amended by adding Sections 152.411, 152.412, and 152.413 to read as
14	16		follows:
15	17		Sec. 152.411. REMOVAL OR PROHIBITION ORDER. (a) The
16	18		commissioner may remove or prohibit a current or former key
17	19		individual or employee of a money services licensee from office or
18	20		employment in, or prohibit a control person or other person
19	21		participating in the affairs of a money services licensee from
20	22		further participation in a money services licensee or any other
21	23		entity chartered, registered, permitted, or licensed by the
22	24		commissioner if the commissioner determines from examination or
23	25		other credible evidence that:
24	26		(1) the person:
25	27		(A) intentionally committed or participated in
26	28		the commission of an act described by Section 152.408;
27	29		(B) intentionally committed, participated in the
28	30		commission of, or caused a money services licensee to commit, an act
29	31		described by Section 152.403;
30	32		(C) violated a final cease and desist order
31	33		issued by a state or federal regulatory agency against the person or
32	34		an entity in which the person is or was a key individual, employee,
33	35		or control person; or
34	36		(D) made, or caused to be made, false entries in
35	37		the records of a money services licensee;
36	38		(2) because of this action by the person:
37	39		(A) the money services licensee has suffered or
38	40		will probably suffer financial loss or expense or other damage;
39	41		(B) the interests of the customers, creditors, or
40	42		shareholders of the money services licensee, including purchasers
41	43		and holders of a money transmission licensee's outstanding money
42	44		transmission obligations, have been or could be prejudiced; or
43	45		(C) the person has received financial gain or
44	46		other benefit by reason of the action, or likely would have if the
45	47		action had not been discovered; and
46	48		(3) the action:
47	49		(A) involves personal dishonesty on the part of
48	50		the person; or
49	51		(B) demonstrates wilful or continuing disregard
50	52		for the safety or soundness of the money services licensee.
51	53		(b) If the commissioner has grounds for action under
52	54		Subsection (a) and finds that a removal or prohibition order
53	55		appears to be necessary and in the best interest of the public, the
54	56		commissioner may serve a proposed removal or prohibition order on a
55	57		person alleged to have committed or participated in the action. An
56	58		order issued under this section is subject to Section 152.409.
57	59		(c) The commissioner may make a removal or prohibition order
58	60		perpetual or effective for a specific period of time, may probate
59	61		the order, or may impose other conditions on the order.
60	62		(d) The order takes effect if the person against whom the
61	63		proposed order is directed does not request a hearing in writing
62	64		before the effective date. If the person does not request a hearing
63	65		before the effective date, the order is final and not appealable as
64	66		to that person.
65	67		Sec. 152.412. REMOVAL OR PROHIBITION ORDERS IN RESPONSE TO
66	68		CERTAIN CRIMINAL OFFENSES. (a) For purposes of this section, a
67	69		person is considered to have been finally convicted of an offense if
68	70		the person's case is not subject to further appellate review and:
69	71		(1) a sentence was imposed on the person;
70	72		(2) the person received probation or community
71	73		supervision, including deferred adjudication community
72	74		supervision; or
73	75		(3) the court deferred final disposition of the
74	76		person's case.
75	77		(b) The commissioner may remove or prohibit a current or
76	78		former key individual or employee of a money services licensee from
77	79		office or employment in, or prohibit a control person or other
78	80		person participating in the affairs of a money services licensee
79	81		from further participation in the affairs of a money services
80	82		licensee, or any other entity chartered, registered, permitted, or
81	83		licensed by the commissioner if the person has been finally
82	84		convicted of a felony offense involving:
83	85		(1) a business engaged in money services;
84	86		(2) dishonesty; or
85	87		(3) breach of trust.
86	88		(c) If the commissioner has grounds for action under
87	89		Subsection (b), the commissioner may serve a removal or prohibition
88	90		order, as appropriate, on the person who has been finally convicted
89	91		of a felony offense. The commissioner shall also serve a copy of
90	92		the order on any money services licensee that the person is
91	93		affiliated with at the time of service of the order.
92	94		(d) Notwithstanding Section 152.409, an order issued under
93	95		this section becomes effective immediately on service and continues
94	96		in effect unless the order is:
95	97		(1) stayed or terminated by the commissioner;
96	98		(2) set aside by the commissioner after a hearing; or
97	99		(3) stayed or vacated on appeal.
98	100		(e) Not later than the 30th day after the date an order is
99	101		served under this section, the person against whom the order is
100	102		issued may request in writing a hearing before the commissioner to
101	103		show that the person's continued service to a money services
102	104		licensee or participation in the affairs of a money services
103	105		licensee does not, or is unlikely to, threaten the interests of the
104	106		money services licensee, the money services licensee's customers,
105	107		or the public confidence in the money services licensee.
106	108		(f) Not later than the 30th day after the date the request
107	109		for a hearing is received under this section, the commissioner
108	110		shall hold the hearing, unless the party requesting the hearing
109	111		requests a later date. At the hearing, the party requesting the
110	112		hearing has the burden of proof.
111	113		(g) After the hearing, the commissioner may affirm, modify,
112	114		or set aside, in whole or in part, the order. An order affirming or
113	115		modifying the order is immediately final for purposes of
114	116		enforcement and appeal. The order may be appealed as provided by
115	117		Section 152.409.
116	118		Sec. 152.413. APPLICATION FOR RELEASE FROM FINAL REMOVAL OR
117	119		PROHIBITION ORDER. (a) After the expiration of 10 years from the
118	120		date of issuance, a person who is subject to a removal or
119	121		prohibition order issued under this subchapter, regardless of the
120	122		order's stated duration or date of issuance, may apply to the
121	123		commissioner to be released from the order.
122	124		(b) The application must be made under oath and in the form
123	125		required by the commissioner. The application must be accompanied
124	126		by any required fees.
125	127		(c) The commissioner, in the exercise of discretion, may
126	128		approve or deny an application filed under this section.
127	129		(d) The commissioner's decision under Subsection (c) is
128	130		final and not appealable.
129	131		SECTION 2. This Act takes effect immediately if it receives
130	132		a vote of two-thirds of all the members elected to each house, as
131	133		provided by Section 39, Article III, Texas Constitution. If this
132	134		Act does not receive the vote necessary for immediate effect, this
133	135		Act takes effect September 1, 2025.