H.B. No. 2134
 
 
 
 
AN ACT
  relating to the regulation of money services businesses.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 151.002(b)(3), Finance Code, is amended
  to read as follows:
               (3)  "Bank Secrecy Act" means the Bank Secrecy Act (31
  U.S.C. Section 5311 et seq.), and its implementing regulations [set
  forth at 31 C.F.R. Part 103].
         SECTION 2.  Section 151.104(a), Finance Code, is amended to
  read as follows:
         (a)  The commissioner may conduct investigations in or
  outside this state and the United States as the commissioner
  considers necessary or appropriate to administer and enforce this
  chapter, including investigations to:
               (1)  determine whether to approve an application for
  [or renewal of] a license or a request for approval or exemption
  filed under this chapter or a rule adopted or order issued under
  this chapter;
               (2)  determine whether a person has violated or is
  likely to violate this chapter or a rule adopted or order issued
  under this chapter;
               (3)  determine whether a license or authorized delegate
  designation should be revoked or suspended;
               (4)  otherwise aid in the enforcement of this chapter
  or a rule adopted or order issued under this chapter; and
               (5)  aid in the adoption of rules or issuance of orders
  under this chapter.
         SECTION 3.  Section 151.105, Finance Code, is amended by
  adding Subsection (b-1) to read as follows:
         (b-1)  To efficiently and effectively administer and enforce
  this chapter and to minimize regulatory burden, the commissioner
  may cooperate, coordinate, and share information with an
  organization the membership of which is made up of state or federal
  governmental agencies described by Subsection (a).  The
  commissioner may:
               (1)  enter into a written cooperation, coordination, or
  information-sharing contract or agreement with the organization;
  and
               (2)  share information, provided that the organization
  agrees in writing to maintain the confidentiality and security of
  the shared information.
         SECTION 4.  Subchapter C, Chapter 151, Finance Code, is
  amended by adding Section 151.2031 to read as follows:
         Sec. 151.2031.  USE OF NATIONWIDE MORTGAGE LICENSING SYSTEM
  AND REGISTRY. (a)  In this section, "Nationwide Mortgage Licensing
  System and Registry" or "nationwide registry" means a licensing
  system developed and maintained by the Conference of State Bank
  Supervisors or an affiliated organization to manage mortgage
  licenses and other financial services licenses, or a successor
  registry.
         (b)  The commissioner may require that a person submit
  through the Nationwide Mortgage Licensing System and Registry in
  the form and manner prescribed by the commissioner and acceptable
  to the registry any information or document or payment of a fee
  required to be submitted under this chapter or rules adopted under
  this chapter.
         (c)  The commissioner may use the nationwide registry as a
  channeling agent for obtaining information required for licensing
  purposes under this chapter or rules adopted under this chapter,
  including:
               (1)  criminal history record information from the
  Federal Bureau of Investigation, the United States Department of
  Justice, or any other agency or entity at the commissioner's
  discretion;
               (2)  information related to any administrative, civil,
  or criminal findings by a governmental jurisdiction; and
               (3)  information requested by the commissioner under
  Section 151.203(a)(3).
         SECTION 5.  The heading to Section 151.207, Finance Code, is
  amended to read as follows:
         Sec. 151.207.  CONTINUATION [RENEWAL] OF LICENSE; ANNUAL
  REPORT AND FEE.
         SECTION 6.  Sections 151.207(a), (b), (c), (d), (e), and
  (f), Finance Code, are amended to read as follows:
         (a)  If a [Regardless of the date on which a license under
  this chapter is issued, the license expires on August 15 of each
  year unless the license is renewed in accordance with this section
  or is previously surrendered by the license holder or suspended or
  revoked by the commissioner.
         [(b)  As a condition of renewal, a] license holder does not 
  [must] continue to meet [possess] the qualifications or [and]
  satisfy the requirements that apply to an applicant for a new money
  transmission license or currency exchange license, as applicable,
  the commissioner may suspend or revoke the license holder's
  license.
         (b)  In addition to complying with Subsection (a)
  [Additionally, not later than July 1 of each year], a license holder
  must annually:
               (1)  pay a license [an annual renewal] fee in an amount
  established by commission rule; and
               (2)  submit a [renewal] report that is under oath, is in
  the form and medium required by the commissioner, and contains:
                     (A)  if the license is a money transmission
  license, an audited unconsolidated financial statement dated as of
  the last day of the license holder's fiscal year that ended in the
  immediately preceding calendar year;
                     (B)  if the license is a currency exchange
  license, a financial statement, audited or unaudited, dated as of
  the last day of the license holder's fiscal year that ended in the
  immediately preceding calendar year; and
                     (C)  documentation and certification, or any
  other information the commissioner reasonably requires to
  determine the security, net worth, permissible investments, and
  other requirements the license holder must satisfy and whether the
  license holder continues to meet the qualifications and
  requirements for licensure.
         (c)  If the department does not receive a license holder's
  annual license [renewal] fee and complete annual [renewal] report
  on or before the due date prescribed by the commissioner under this
  section [July 1], the commissioner shall notify the license holder
  in writing that:
               (1)  the license holder shall [has until August 15 to]
  submit the [renewal] report and pay the license [renewal] fee not
  later than the 45th day after the due date prescribed by the
  commissioner; and
               (2)  the license holder must pay a late fee, in an
  amount that is established by commission rule and not subject to
  appeal, for each business day after the report due date specified by
  the commissioner [July 1] that the commissioner does not receive
  the completed [renewal] report and license [renewal] fee.
         (d)  If the license holder fails to submit the completed
  annual [renewal] report and pay the annual license [renewal] fee
  and any late fee due within the time prescribed by Subsection
  (c)(1), the license expires [effective 5 p.m. central daylight time
  on August 15], and the license holder must cease and desist from
  engaging in the business of money transmission or currency
  exchange, as applicable, as of that date [time]. The expiration of a
  license is not subject to appeal.
         (e)  On timely receipt of a license holder's complete annual
  [renewal] report, annual license [renewal] fee, and any late fee
  due, the department shall review the report and, if necessary,
  investigate the business and records of the license holder. On
  completion of the review and investigation, if any, the
  commissioner may:
               (1)  [renew the license;
               [(2)]  impose conditions on the [renewal of the]
  license the commissioner considers [may consider] reasonably
  necessary or appropriate; or
               (2) [(3)]  suspend or revoke the license on the basis
  of a ground specified in Section 151.703.
         (f)  On written application and for good cause shown, the
  commissioner may extend the due date [time] for filing the annual
  license fee and annual report required under this section.
         SECTION 7.  Section 151.208(c), Finance Code, is amended to
  read as follows:
         (c)  The surrender of a license does not reduce or eliminate
  a license holder's civil or criminal liability arising from any
  acts or omissions before the surrender of the license, including
  any administrative action undertaken by the commissioner to [deny
  the renewal of a license, to] revoke or suspend a license, to assess
  an administrative penalty, to order the payment of restitution, or
  to exercise any other authority under this chapter.  Further, the
  surrender of a license does not release the security required of the
  license holder under Section 151.308 or 151.506.
         SECTION 8.  Section 151.209, Finance Code, is amended to
  read as follows:
         Sec. 151.209.  REFUNDS. A fee or cost paid under this
  chapter [in connection with an application or renewal] is not
  refundable.
         SECTION 9.  Section 151.301(b)(8), Finance Code, is amended
  to read as follows:
               (8)  "Stored value" means monetary value evidenced by
  an electronic record that is prefunded and for which value is
  reduced on each use. The term includes prepaid access as defined by
  31 C.F.R. Section 1010.100(ww). The term does not include an
  electronic record that is:
                     (A)  loaded with points, miles, or other
  nonmonetary value; [or]
                     (B)  not sold to the public but distributed as a
  reward or charitable donation; or
                     (C)  redeemable only for goods or services from a
  specified merchant or set of affiliated merchants, such as:
                           (i)  a specified retailer or retail chain;
                           (ii)  a set of affiliated companies under
  common ownership;
                           (iii)  a college campus; or
                           (iv)  a mass transportation system.
         SECTION 10.  Section 151.306(b), Finance Code, is amended to
  read as follows:
         (b)  The effective period for a temporary license may not
  exceed 90 days from the date the license is issued, provided that
  the commissioner may extend the period for not more than an
  additional 90 [30] days if necessary to complete the processing of a
  timely filed application for which approval is likely.
         SECTION 11.  Section 151.308(c), Finance Code, is amended to
  read as follows:
         (c)  The security must:
               (1)  be in a form satisfactory to the commissioner;
               (2)  be payable to any claimant or to the commissioner,
  on behalf of a claimant or this state, for any liability arising out
  of the license holder's money transmission business in this state,
  incurred under, subject to, or by virtue of this chapter; and
               (3)  [be conditioned on the faithful compliance of the
  license holder or the principals, responsible individuals,
  employees and authorized delegates of the license holder with this
  chapter or any rule adopted or order issued under this chapter; and
               [(4)]  if the security is a bond, be issued by a
  qualified surety company authorized to engage in business in this
  state and acceptable to the commissioner or, if the security is an
  irrevocable letter of credit, be issued by a financial institution
  acceptable to the commissioner.
         SECTION 12.  Section 151.401, Finance Code, is amended to
  read as follows:
         Sec. 151.401.  LIABILITY OF LICENSE HOLDER. A money
  transmission license holder is liable for the payment of all money
  or monetary value received for transmission [either] directly or by
  [through] an authorized delegate appointed in accordance with
  Section 151.402.
         SECTION 13.  Sections 151.402(e) and (f), Finance Code, are
  amended to read as follows:
         (e)  A license holder must notify the license holder's
  authorized delegates and require the delegates to take any action
  required by the commissioner if [the license holder]:
               (1)  the license holder's license expired or is
  surrendered or revoked [fails to renew the license holder's
  license]; or
               (2)  the license holder is subject to an emergency or
  final order that affects the conduct of the license holder's
  business through an authorized delegate.
         (f)  A license holder must maintain a current list of
  authorized delegates located in this state or doing business with
  persons located in this state that includes the name and business
  address of each delegate and must provide the list to the
  commissioner on request. A license holder that engages in business
  through 11 or more authorized delegates located in this state must
  include on the license holder's website a list of the names and
  addresses of the authorized delegates of the license holder located
  in this state and the delegates' business addresses. The license
  holder must update the list quarterly.
         SECTION 14.  Section 151.501(b), Finance Code, is amended by
  amending Subdivision (2) and adding Subdivision (3) to read as
  follows:
               (2)  "Currency exchange" means:
                     (A)  receiving [exchanging] the currency of one
  government and exchanging it for the currency of another
  government; or
                     (B)  receiving a negotiable instrument and
  exchanging it for the currency of another government.
               (3)  "Negotiable instrument" has the meaning assigned
  by Section 3.104, Business & Commerce Code.
         SECTION 15.  Sections 151.603(a), (b), and (c), Finance
  Code, are amended to read as follows:
         (a)  An applicant or license holder shall file a written
  report with the commissioner not later than the 15th day after the
  date the applicant or license holder knows or has reason to know of
  a material change in the information reported in an application or
  annual [renewal] report required under Section 151.207(b)(2).  The
  report must describe the change and the anticipated impact of the
  change on the activities of the applicant or license holder in this
  state.
         (b)  A money transmission license holder shall prepare
  written reports and statements as follows:
               (1)  the annual [renewal] report required by Section
  151.207(b)(2), including an audited unconsolidated financial
  statement that is dated as of the last day of the license holder's
  fiscal year that ended in the immediately preceding calendar year;
               (2)  a quarterly interim financial statement and report
  regarding the permissible investments required to be maintained
  under Section 151.309 that reflect the license holder's financial
  condition and permissible investments as of the last day of the
  calendar quarter to which the statement and report relate and that
  are prepared not later than the 45th day after the last day of the
  calendar quarter; and
               (3)  any other report required by rule of the
  commission or reasonably requested by the commissioner to determine
  compliance with this chapter.
         (c)  A currency exchange license holder shall prepare a
  written report or statement as follows:
               (1)  the annual [renewal] report required by Section
  151.207(b)(2), including a financial statement that may be audited
  or unaudited and that is dated as of the last day of the license
  holder's fiscal year that ended in the immediately preceding
  calendar year;
               (2)  a quarterly interim financial statement and
  transaction report that reflects the license holder's financial
  condition and currency exchange business as of the last day of the
  calendar quarter to which the statement and report relate and that
  are prepared not later than the 45th day after the last day of the
  calendar quarter; and
               (3)  any other report required by rule of the
  commission or reasonably requested by the commissioner to determine
  compliance with this chapter.
         SECTION 16.  Section 151.604(a), Finance Code, is amended to
  read as follows:
         (a)  A license holder shall file a written report with the
  commissioner not later than the 15th day after the date the license
  holder knows or has reason to know of a material change in the
  information reported in an application or annual [renewal] report
  required under Section 151.207(b)(2).  The report must describe
  the change and the anticipated impact of the change on the license
  holder's activities in this state.
         SECTION 17.  Section 278.001(1), Finance Code, is amended to
  read as follows:
               (1)  "Currency" has the meaning assigned by Section
  151.501 [153.001].
         SECTION 18.  Section 278.053, Finance Code, is repealed.
         SECTION 19.  As soon as practicable after the effective date
  of this Act, the Finance Commission of Texas shall adopt rules
  necessary to implement the changes in law made by this Act.
         SECTION 20.  Section 151.104(a), Finance Code, as amended by
  this Act, applies only to an investigation commenced on or after the
  effective date of this Act. An investigation commenced before the
  effective date of this Act is governed by the law in effect on the
  date the investigation was commenced, and the former law is
  continued in effect for that purpose.
         SECTION 21.  This Act takes effect September 1, 2013.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2134 was passed by the House on April
  18, 2013, by the following vote:  Yeas 140, Nays 3, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 2134 was passed by the Senate on May
  20, 2013, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor