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