| 2 | + | (In the Senate - Filed November 25, 2024; February 3, 2025, |
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| 3 | + | read first time and referred to Committee on Business & Commerce; |
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| 4 | + | April 16, 2025, reported favorably by the following vote: Yeas 11, |
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| 5 | + | Nays 0; April 16, 2025, sent to printer.) |
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| 6 | + | Click here to see the committee vote |
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| 2 | 7 | | |
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| 3 | 8 | | |
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| 4 | 9 | | |
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| 5 | 10 | | |
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| 6 | 11 | | A BILL TO BE ENTITLED |
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| 7 | 12 | | AN ACT |
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| 8 | 13 | | relating to prohibiting the imposition of a monetary fine or |
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| 9 | 14 | | penalty for a violation of a money services business's terms of |
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| 10 | 15 | | service agreement; providing a civil penalty. |
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| 11 | 16 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 17 | | SECTION 1. The heading to Subchapter G, Chapter 152, |
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| 13 | 18 | | Finance Code, is amended to read as follows: |
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| 14 | 19 | | SUBCHAPTER G. GENERAL DUTIES AND RESTRICTIONS FOR [TIMELY |
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| 15 | 20 | | TRANSMISSION, REFUNDS, AND DISCLOSURES BY] MONEY TRANSMISSION |
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| 16 | 21 | | LICENSEE |
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| 17 | 22 | | SECTION 2. Subchapter G, Chapter 152, Finance Code, is |
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| 18 | 23 | | amended by adding Section 152.305 to read as follows: |
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| 19 | 24 | | Sec. 152.305. PROHIBITION ON IMPOSITION OF FINE OR PENALTY |
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| 20 | 25 | | FOR TERMS OF SERVICE VIOLATION. (a) A money transmission |
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| 21 | 26 | | licensee may not include in the licensee's terms of service |
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| 22 | 27 | | agreement a provision allowing or providing for a monetary fine or |
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| 23 | 28 | | penalty for violating any provision of the terms of service |
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| 24 | 29 | | agreement. |
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| 25 | 30 | | (b) This section may not be construed to prevent a money |
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| 26 | 31 | | transmission licensee from closing a customer account as a result |
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| 27 | 32 | | of a customer's violation of the licensee's terms of service |
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| 28 | 33 | | agreement. |
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| 29 | 34 | | (c) In addition to any other relief provided for a violation |
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| 30 | 35 | | of this chapter, a money transmission licensee that violates this |
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| 31 | 36 | | section is liable to this state for a civil penalty in an amount |
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| 32 | 37 | | equal to three times the amount of the fine or penalty imposed by |
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| 33 | 38 | | the licensee. |
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| 34 | 39 | | (d) The attorney general may bring an action in the name of |
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| 35 | 40 | | the state to recover the civil penalty under Subsection (c). The |
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| 36 | 41 | | attorney general may recover attorney's fees and costs incurred in |
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| 37 | 42 | | bringing an action under Subsection (c). |
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| 38 | 43 | | SECTION 3. This Act applies only to a terms of service |
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| 39 | 44 | | agreement entered into after the effective date of this Act. A |
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| 40 | 45 | | terms of service agreement entered into before the effective date |
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| 41 | 46 | | of this Act is governed by the law as it existed immediately before |
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| 42 | 47 | | the effective date of this Act, and the former law is continued in |
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| 43 | 48 | | effect for that purpose. |
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| 44 | 49 | | SECTION 4. This Act takes effect September 1, 2025. |
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