H.B. No. 2458

	AN ACT
	relating to the operation and administration of the Texas Bullion
	Depository.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 151.002(a), Finance Code, is amended to
	read as follows:
	(a)  This section defines general terms that apply to an
	applicant for or holder of a money services license issued under
	this chapter, regardless of whether the license is a money
	transmission license or [,] a currency exchange license[, or a
	depository agent license]. Additional terms that apply
	specifically to money transmission are defined in Section
	151.301.  Additional terms that apply specifically to currency
	exchange are defined in Section 151.501. [Additional terms that
	apply specifically to depository agents are defined in Section
	151.851.]
	SECTION 2.  Sections 151.002(b)(11) and (14), Finance Code,
	are amended to read as follows:
	(11)  "License holder" means a person that holds a
	money transmission license or[,] a currency exchange license[, or a
	depository agent license].
	(14)  "Money services" means money transmission or[,]
	currency exchange[, or depository agent] services.
	SECTION 3.  Section 151.003, Finance Code, is amended to
	read as follows:
	Sec. 151.003.  EXCLUSIONS. The [Subject to Subchapter J,
	the] following persons are not required to be licensed under this
	chapter:
	(1)  the United States or an instrumentality of the
	United States, including the United States Post Office or a
	contractor acting on behalf of the United States Post Office;
	(2)  a state or an agency, political subdivision, or
	other instrumentality of a state;
	(3)  a federally insured financial institution, as that
	term is defined by Section 201.101, that is organized under the laws
	of this state, another state, or the United States;
	(4)  a foreign bank branch or agency in the United
	States established under the federal International Banking Act of
	1978 (12 U.S.C. Section 3101 et seq.);
	(5)  a person acting as an agent for an entity excluded
	under Subdivision (3) or (4), to the extent of the person's actions
	in that capacity, provided that:
	(A)  the entity is liable for satisfying the money
	services obligation owed to the purchaser on the person's receipt
	of the purchaser's money; and
	(B)  the entity and person enter into a written
	contract that appoints the person as the entity's agent and the
	person acts only within the scope of authority conferred by the
	contract;
	(6)  a person that, on behalf of the United States or a
	department, agency, or instrumentality of the United States, or a
	state or county, city, or any other governmental agency or
	political subdivision of a state, provides electronic funds
	transfer services of governmental benefits for a federal, state,
	county, or local governmental agency;
	(7)  a person that acts as an intermediary on behalf of
	and at the direction of a license holder in the process by which the
	license holder, after receiving money or monetary value from a
	purchaser, either directly or through an authorized delegate,
	transmits the money or monetary value to the purchaser's designated
	recipient, provided that the license holder is liable for
	satisfying the obligation owed to the purchaser;
	(8)  an attorney or title company that in connection
	with a real property transaction receives and disburses domestic
	currency or issues an escrow or trust fund check only on behalf of a
	party to the transaction;
	(9)  a person engaged in the business of currency
	transportation who is both a registered motor carrier under Chapter
	643, Transportation Code, and a licensed armored car company or
	courier company under Chapter 1702, Occupations Code, provided that
	the person:
	(A)  only transports currency:
	(i)  from a person to the same person at
	another location;
	(ii)  from a person to a financial
	institution to be deposited in an account belonging to the same
	person; or
	(iii)  to a person from a financial
	institution after being withdrawn from an account belonging to the
	same person; and
	(B)  does not otherwise engage in the money
	transmission or currency exchange business [or depository agent
	services business] without a license issued under this chapter;
	(9-a)  a trust company, as defined by Section
	187.001(a), that is organized under the laws of this state; and
	(10)  any other person, transaction, or class of
	persons or transactions exempted by commission rule or any other
	person or transaction exempted by the commissioner's order on a
	finding that the licensing of the person is not necessary to achieve
	the purposes of this chapter.
	SECTION 4.  Section 151.201, Finance Code, is amended to
	read as follows:
	Sec. 151.201.  SCOPE. This subchapter sets out the general
	qualifications and provisions that apply to a money services
	license, regardless of whether the license is a money transmission
	license or [,] a currency exchange license[, or a depository agent
	license]. Subchapters D and E set forth the additional
	qualifications and provisions that apply specifically to a money
	transmission license. Subchapter F sets forth the additional
	qualifications and provisions that apply specifically to a currency
	exchange license. [Subchapter J sets forth the additional
	qualifications and provisions that apply specifically to a
	depository agent license.]
	SECTION 5.  Sections 151.207(a), (b), and (d), Finance Code,
	are amended to read as follows:
	(a)  If a license holder does not continue to meet the
	qualifications or satisfy the requirements that apply to an
	applicant for a new money transmission license or [,] currency
	exchange license, [or depository agent license,] as applicable, the
	commissioner may suspend or revoke the license holder's license.
	(b)  In addition to complying with Subsection (a), a license
	holder must annually:
	(1)  pay a license fee in an amount established by
	commission rule; and
	(2)  submit a 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 [or depository agent 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.
	(d)  If the license holder fails to submit the completed
	annual report and pay the annual license fee and any late fee due
	within the time prescribed by Subsection (c)(1), the license
	expires, and the license holder must cease and desist from engaging
	in the business of money transmission or [,] currency exchange, [or
	depository agent services,] as applicable, as of that date. The
	expiration of a license is not subject to appeal.
	SECTION 6.  Section 151.302(a), Finance Code, as amended by
	Chapters 75 (S.B. 899) and 1000 (H.B. 483), Acts of the 84th
	Legislature, Regular Session, 2015, is reenacted to read as
	follows:
	(a)  A person may not engage in the business of money
	transmission in this state or advertise, solicit, or represent that
	the person engages in the business of money transmission in this
	state unless the person:
	(1)  is licensed under this subchapter;
	(2)  is an authorized delegate of a person licensed
	under this subchapter, appointed by the license holder in
	accordance with Section 151.402;
	(3)  is excluded from licensure under Section 151.003;
	or
	(4)  has been granted an exemption under Subsection
	(c).
	SECTION 7.  Section 151.502(a), Finance Code, is amended to
	read as follows:
	(a)  A person may not engage in the business of currency
	exchange or advertise, solicit, or hold itself out as providing
	currency exchange unless the person:
	(1)  is licensed under this subchapter;
	(2)  is licensed for money transmission under
	Subchapter D;
	(3)  is an authorized delegate of a person licensed for
	money transmission under Subchapter D;
	(4)  is excluded under Section 151.003; or
	(5)  [is licensed as a depository agent under
	Subchapter J and only engages in the business of currency exchange
	in connection with, and to the extent necessary for, the
	performance of depository agent activities; or
	[(6)]  has been granted an exemption under Subsection
	(d).
	SECTION 8.  Section 151.602(a), Finance Code, is amended to
	read as follows:
	(a)  A license holder must prepare, maintain, and preserve
	the following books, accounts, and other records for at least five
	years or another period as may be prescribed by rule of the
	commission:
	(1)  a record of each money transmission transaction or
	[,] currency exchange transaction, [or depository agent services
	transaction,] as applicable;
	(2)  a general ledger posted in accordance with
	generally accepted accounting principles containing all asset,
	liability, capital, income, and expense accounts, unless directed
	otherwise by the commissioner;
	(3)  bank statements and bank reconciliation records;
	(4)  all records and reports required by applicable
	state and federal law, including the reporting and recordkeeping
	requirements imposed by the Bank Secrecy Act, the USA PATRIOT ACT,
	and Chapter 271, and other federal and state laws pertaining to
	money laundering, drug trafficking, or terrorist funding; and
	(5)  any other records required by commission rule or
	reasonably requested by the commissioner to determine compliance
	with this chapter.
	SECTION 9.  Section 2116.001, Government Code, is amended by
	amending Subdivision (9) and adding Subdivision (9-a) to read as
	follows:
	(9)  "Depository agent" means a financial institution
	that has entered into an agreement with the depository to provide a
	retail location for the provision of depository services to the
	general public on behalf of [person licensed in accordance with
	this chapter to serve as an intermediary between] the depository
	[and a retail customer in making a transaction in precious metals
	bullion or specie].
	(9-a)  "Financial institution" has the meaning
	assigned by Section 201.101, Finance Code.
	SECTION 10.  Section 2116.002, Government Code, is amended
	by adding Subsection (c) to read as follows:
	(c)  The comptroller shall adopt rules necessary to carry out
	this chapter.
	SECTION 11.  Section 2116.003, Government Code, is amended
	by amending Subsection (c) and adding Subsection (d) to read as
	follows:
	(c)  The administrator may appoint or employ, subject to the
	approval of the comptroller, a deputy administrator or other
	subordinate officers or employees [officer] as necessary and
	appropriate to the efficient administration of the depository.
	(d)  The comptroller may employ security officers to provide
	needed security services for the depository and may commission the
	officers as peace officers.
	SECTION 12.  Sections 2116.005(c) and (d), Government Code,
	are amended to read as follows:
	(c)  The comptroller [by rule] shall adopt standards by which
	the quantities of precious metals deposited are credited to a
	depositor's depository account by reference to the particular form
	in which the metals were deposited, classified by mint,
	denomination, weight, assay mark, or other indicator, as
	applicable.  The standards must conform to applicable national and
	international standards of weights and measures.
	(d)  The comptroller [by rule] may, if the comptroller
	determines that to do so is in the public interest, restrict the
	forms in which deposits of precious metals may be made [to those
	forms that conveniently lend themselves to measurement and
	accounting in units of troy ounces and standardized fractions of
	troy ounces].
	SECTION 13.  Sections 2116.006(b) and (c), Government Code,
	are amended to read as follows:
	(b)  The depository shall make a delivery described by
	Subsection (a) on demand by the presentment of a written demand
	[suitable check, draft,] or digital electronic instruction to the
	depository or a depository agent.  The comptroller may prescribe
	[by rule shall adopt] the forms, standards, and processes through
	which an order for delivery on demand may be made, presented, and
	honored.
	(c)  The depository shall make a delivery at the depository's
	settlement facility designated by the comptroller, shipping to an
	address specified by the account holder or, at the depository's
	discretion, at a facility of a depository agent at which
	presentment is made, not later than 10 [five] business days after
	the date of presentment.
	SECTION 14.  Section 2116.007, Government Code, is amended
	to read as follows:
	Sec. 2116.007.  TRANSFER OF DEPOSITORY ACCOUNT BALANCE.  (a)
	In accordance with rules adopted under this chapter, a depository
	account holder may transfer any portion of the balance of the
	holder's depository account by written demand [check, draft,] or
	digital electronic instruction to another person [depository
	account holder or to a person who at the time the transfer is
	initiated is not a depository account holder].
	(b)  The depository shall adjust the depository account
	balances of the depository accounts to reflect a transfer
	transaction between depository account holders on presentment of
	the written demand [check, draft,] or other instruction by reducing
	the payor's depository account balance and increasing the
	depository account balance of the payee accordingly.
	(c)  If a depository account holder transfers to a payee who
	is not a depository account holder any portion of the balance of the
	depository account holder's depository account, the depository
	shall, if the payee is otherwise eligible to open a depository
	account under applicable laws and depository policy, allow the
	payee to establish a depository account [by presentment of the
	payor's check, draft, or instruction to the depository or to a
	depository agent].  The depository shall credit a newly
	established account on behalf of the payee and shall debit the
	payor's account accordingly.
	SECTION 15.  Sections 2116.008(c) and (e), Government Code,
	are amended to read as follows:
	(c)  The depository [or a depository agent] shall hold the
	contract for a depository account in the records pertaining to the
	account.
	(e)  The depository and the depository account holder may
	amend a contract for a depository account by agreement, or the
	depository may amend the deposit contract by providing [mailing a]
	written notice of the amendment to the account holder, separately
	or as an enclosure with or part of the account holder's statement of
	account or passbook. In the case of amendment by notice from the
	depository, the notice must include the text and effective date of
	the amendment. The notice may be provided electronically. The
	effective date may not be earlier than the 30th day after the date
	the notice is mailed, unless otherwise provided by rules adopted
	under this chapter.
	SECTION 16.  Section 2116.010, Government Code, is amended
	to read as follows:
	Sec. 2116.010.  FEES; SERVICE CHARGES; PENALTIES. The
	comptroller [by rule] may establish fees, service charges, and
	penalties to be charged a depository account holder for a service or
	activity regarding a depository account, including a fee for an
	overdraft, an insufficient fund check or draft, or a stop payment
	order. The comptroller may waive any fees, service charges, or
	penalties established under this section.
	SECTION 17.  Section 2116.021, Government Code, is amended
	to read as follows:
	Sec. 2116.021.  TRANSACTIONS AND RELATIONSHIPS; MARKETING
	AND PUBLICITY. (a) The depository may [shall] enter into
	transactions and relationships with bullion banks, depositories,
	dealers, central banks, sovereign wealth funds, financial
	institutions, international nongovernmental organizations, and
	other persons, located inside or outside of this state or inside or
	outside of the United States, as the comptroller determines to be
	prudent and suitable to facilitate the operations of the depository
	and to further the purposes of this chapter.
	(b)  The depository may advertise and promote the depository
	in any available media.
	(c)  The depository may issue, sell, license for sale, or
	obtain a license to sell promotional items approved by the
	administrator to further the purposes of this chapter and to
	promote the depository. The depository may set commercially
	reasonable prices for items licensed or sold under this section.
	SECTION 18.  Section 2116.023, Government Code, is amended
	by adding Subsection (d) to read as follows:
	(d)  The depository shall refer any matter relating to an
	action described by Subsection (a) to the attorney general for
	resolution.
	SECTION 19.  Section 2116.024, Government Code, is amended
	to read as follows:
	Sec. 2116.024.  OFFICIAL EXCHANGE RATES. The comptroller
	[by rule] shall establish the references by which the official
	exchange rate for pricing precious metals transactions in terms of
	United States dollars or other currency must be established at the
	time of a depository transaction. The comptroller shall establish
	procedures and facilities through which the rates are made
	discoverable at all reasonable times by system participants, both
	on a real-time basis and retrospectively.
	SECTION 20.  Section 2116.025, Government Code, is amended
	to read as follows:
	Sec. 2116.025.  FACILITATION OF ACCOUNTING AND REPORTING OF
	TAXABLE GAINS. The comptroller [by rule] shall establish
	procedures and requirements for the depository and depository
	agents designed to minimize the burden to system participants of
	accounting for and reporting taxable gains and losses arising out
	of depository transactions as denominated in United States dollars
	or another currency.
	SECTION 21.  Subchapter A, Chapter 2116, Government Code, is
	amended by adding Section 2116.027 to read as follows:
	Sec. 2116.027.  CONFIDENTIALITY OF RECORDS; OTHER RECORDS
	EXEMPT FROM DISCLOSURE. (a) Records relating to individual
	depository accounts or depository account holders, including
	current, former, or prospective depository account holders, that
	are in the custody of the depository or a vendor performing services
	related to the depository are confidential and exempt from
	disclosure under Chapter 552.
	(b)  The following information of the depository is excepted
	from the requirements of Section 552.021:
	(1)  records and other information related to the
	security of the depository;
	(2)  records related to the method of setting the
	depository's fees, service charges, penalties, and other charges or
	payments; and
	(3)  commercial or financial information that would
	cause substantial competitive harm to the depository, including
	operational or other information that would give advantage to
	competitors or bidders.
	(c)  Notwithstanding Subsection (a), depository account
	information may be disclosed:
	(1)  to a depository account holder regarding the
	depository account holder's account;
	(2)  to a state or federal agency as required by
	applicable law;
	(3)  to a vendor providing services to the depository;
	(4)  in response to a subpoena issued under applicable
	law;
	(5)  if compiled as collective information that does
	not include any identifying information about a person; or
	(6)  as otherwise permitted by the depository account
	agreement applicable to a depository account holder's account.
	SECTION 22.  Section 2116.051, Government Code, is amended
	to read as follows:
	Sec. 2116.051.  USE OF DEPOSITORY AGENTS. The depository
	may [shall] use private, independently managed financial [firms
	and] institutions to provide retail locations for the provision of
	depository services to the public [licensed as depository agents as
	intermediaries to conduct retail transactions in bullion and
	specie] on behalf of the depository [with current and prospective
	depository account holders].
	SECTION 23.  The following laws are repealed:
	(1)  Sections 151.002(b)(9-a), (9-b), and (9-c),
	Finance Code;
	(2)  Section 151.603(c-1), Finance Code; and
	(3)  Subchapter J, Chapter 151, Finance Code.
	SECTION 24.  This Act takes effect immediately if it
	receives a vote of two-thirds of all the members elected to each
	house, as provided by Section 39, Article III, Texas Constitution.
	If this Act does not receive the vote necessary for immediate
	effect, this Act takes effect September 1, 2019.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 2458 was passed by the House on April
	25, 2019, by the following vote:  Yeas 133, Nays 2, 1 present, not
	voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 2458 was passed by the Senate on May
	10, 2019, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	APPROVED:  _____________________
	Date
	_____________________
	Governor