INVESTIGATION AND ACTION ON APPLICATION. Reenacted and amended by Acts 2017, 85th Leg., R.S., Ch. Sec. Cancel « Prev. Next » (a) A money transmission license holder may conduct business regulated under this chapter through an authorized delegate appointed by the license holder in accordance with this section. (g) The holder or principal of or the person in control of the holder of an expired license, or the holder or principal of or person in control of the holder of a license surrendered under Section 151.208, that wishes to conduct activities for which a license is required under this chapter must file a new license application and satisfy all requirements for licensure that apply at the time the new application is filed. 151.505. (5) the previous conduct of the authorized delegate. Section 1010.100(ww). 10, eff. (b) A person may not directly or indirectly acquire control of a license holder or a person in control of a license holder without the prior written approval of the commissioner, except as provided by this section. A license holder, an authorized delegate, or a person who knowingly engages in activities that are regulated and require a license under this chapter, with or without filing an application for a license or holding a license under this chapter, is considered to have consented to the jurisdiction of the courts of this state for all actions arising under this chapter. The commissioner may: (1) conduct an on-site investigation of the applicant; (2) employ a screening service to assist with the investigation; (3) to the extent the commissioner considers reasonably necessary to evaluate the application and the applicant's qualifications, investigate the financial responsibility and condition, financial and business experience, character and general fitness of each principal of, person in control of, principal of a person in control of, or proposed responsible individual of the applicant or any other person that is or will be associated with the applicant's licensed activities in this state; or. (2) $500,000, if business is proposed to be or is conducted, directly or through an authorized delegate, at five or more locations or over the Internet. 11, eff. 1099 (H.B. SUBCHAPTER B. FINANCE CODE TITLE 3. 6, eff. 9, eff. 1403), Sec. 2458), Sec. There are two types of Money Services Business licenses and separate applications for each type. 2458), Sec. A money transmission license holder is liable for the payment of all money or monetary value received for transmission directly or by an authorized delegate appointed in accordance with Section 151.402. 988 (H.B. PROCESSING AND INVESTIGATION OF APPLICATION. Next » (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. 9, eff. (d) The commissioner, on a finding that the conviction does not reflect adversely on the present likelihood that the applicant will conduct business in compliance with this chapter, rules adopted under this chapter, and other applicable state and federal law, may waive a disqualification under Subsection (c) based on the conviction of a spouse or a corporate applicant or corporate person in control of an applicant. (3) any other report required by rule of the commission or reasonably requested by the commissioner to determine compliance with this chapter. (a) To efficiently and effectively administer and enforce this chapter and to minimize regulatory burden, the commissioner may cooperate, coordinate, and share information with another state, federal, or foreign governmental agency that: (1) regulates or supervises persons engaged in money services businesses or activities subject to this chapter; or. 12.101. 151.204. Section 3101 et seq. (c) A license holder or proposed person in control shall: (1) give the commissioner written notice of a proposed change of control at least 45 days before the date the proposed transaction is to be consummated; (2) request approval of the proposed change of control; and. Finance Code 5 Titles and 98 Chapters Home; Finance Code; Title 1. 151.304. Texas Finance Code Title 3, Chapter 151 - Regulation Of Money Services Businesses. NOTICE, HEARING, AND OTHER PROCEDURES FOR NONEMERGENCY ORDERS. SUBTITLE B. SHORT TITLE. 151.102. (a) An applicant for a currency exchange license must submit an application in accordance with Section 151.203. (8) "Currency exchange license" means a license issued under Subchapter F. (9) "Department" means the Texas Department of Banking. 1000 (H.B. 9, eff. GENERAL PROVISIONS § 151.001. Added by Acts 2005, 79th Leg., Ch. September 1, 2017. 899), Sec. §33.52. SHORT TITLE. Refreshed: 2021-03-02 FINANCE CODE. (3) "Bank Secrecy Act" means the Bank Secrecy Act (31 U.S.C. 1000 (H.B. General Provisions. Refreshed: 2021-03-03 (a) This section applies to a proposed change of control of a license holder that results in a person or group of persons acting in concert, a "proposed person in control," after consummation of the acquisition transaction, controlling the license holder or a person in control of a license holder. Search Texas Statutes. (c) If the department does not receive a license holder's annual license fee and complete annual report on or before the due date prescribed by the commissioner under this section, the commissioner shall notify the license holder in writing that: (1) the license holder shall submit the report and pay the license fee not later than the 45th day after the due date prescribed by the commissioner; and. Acts 2015, 84th Leg., R.S., Ch. 6, eff. (c) The amount of the penalty may not exceed $5,000 for each violation or, in the case of a continuing violation, $5,000 for each day that the violation continues. Sec. REFUNDS. 1403), Sec. 2458), Sec. Acts 2013, 83rd Leg., R.S., Ch. 2458), Sec. 1, eff. (7) Repealed by Acts 2015, 84th Leg., R.S., Ch. (B) does not include the provision solely of online or telecommunication services or connection services to the Internet. (6) "Payment instrument" means a written or electronic equivalent of a check, draft, money order, traveler's check, or other written or electronic instrument, service, or device for the transmission or payment of money or monetary value, sold or issued to one or more persons, regardless of whether negotiable. May 24, 2019. (4) require additional information and take other action the commissioner considers reasonably necessary. TRUST IMPOSED. September 1, 2017. Sec. 12.001. (c) The commissioner may not waive, and nothing in this section constitutes a waiver of, the commissioner's authority to conduct an examination or investigation or otherwise take independent action authorized by this chapter or a rule adopted or order issued under this chapter to enforce compliance with applicable state or federal law. Acts 2013, 83rd Leg., R.S., Ch. (3) that portion of a surety bond maintained for the benefit of the purchasers of the license holder's outstanding money transmission obligations in another state that is not in excess of the amount of the outstanding obligations in that state, provided: (A) the license holder maintains a surety bond or letter of credit or has on hand other permissible investments, or a combination of investments, in an amount sufficient to satisfy the requirements of Subsection (a) with respect to the outstanding money transmission obligations in this state; and. (c) The commissioner may impose on any authority, approval, exemption, license, or order issued or granted under this chapter any condition the commissioner considers reasonably necessary or appropriate to carry out and achieve the purposes of this chapter. (g) Unless the commissioner receives a written request for a hearing from a person against whom an emergency order is directed not later than the 15th day after the date the order is delivered or mailed, the order is final and nonappealable as to that person on the 16th day after the date the order is delivered or mailed. 899), Sec. SUBCHAPTER G. EXAMINATIONS, REPORTS, AND RECORDS. (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 days if necessary to complete the processing of a timely filed application for which approval is likely. September 1, 2017. Finance Code 5 Titles and 98 Chapters Home; Finance Code; Title 1. GENERAL PROVISIONS. If the security is a surety bond, the commissioner shall give the surety reasonable prior notice of a hearing to impose an administrative penalty against the license holder, provided that a surety may not be considered an interested, aggrieved, or affected person for purposes of an administrative proceeding under Section 151.801 or Chapter 2001, Government Code. REGULATION OF MONEY SERVICES BUSINESSES. (c) An authorized delegate must prepare, maintain, and preserve the records required by commission rule or reasonably requested by the commissioner. Search by Keyword or Citation; Search by Keyword or Citation . Department Of Savings And Mortgage Lending ... Chapter 151. In addition, Chapter 33 (formerly Chapters 4 and 29) of the Texas Administrative Code is also applicable to MSBs regulated by the Department. FINANCIAL INSTITUTIONS AND BUSINESSES, CHAPTER 151. Texas Finance Code (Code), Chapter 151 (Chapter 151), generally requires a person or business to have a license to engage in the money services business in Texas. 151.202. ADMINISTRATIVE PENALTY. EXAMINATIONS. (e) On timely receipt of a license holder's complete annual report, annual license fee, and any late fee due, the department shall review the report and, if necessary, investigate the business and records of the license holder. (8) "Stored value" means monetary value evidenced by an electronic record that is prefunded and for which value is reduced on each use. 23, eff. Information disclosed to the commissioner in connection with an examination is confidential under Section 151.606. 151.106. (b) For purposes of this chapter, a person engages in the business of money transmission if the person receives compensation or expects to receive compensation, directly or indirectly, for conducting money transmission. 151.307. 8, eff. For Texas consumers: Ria is licensed under Chapter 151 of the Texas Finance Code. Jan. 1, 1982. SUBCHAPTER A. 5, eff. PARTNERSHIPS CHAPTER 151. (a) A money transmission license holder must maintain at all times permissible investments that have an aggregate market value computed in accordance with generally accepted accounting principles in an amount not less than: (1) if the license holder has a net worth of less than $5 million, the aggregate face amount of the license holder's average outstanding money transmission obligations in the United States, computed in the manner prescribed by commission rule; or. 7, eff. Sec. 988 (H.B. 483), Sec. General Provisions. title 3. Sec. <>stream (e) Chapter 2254, Government Code, does not apply to a contract or agreement entered into under this section. 428 (S.B. (a) The commissioner must revoke a license if the commissioner finds that: (1) the net worth of the license holder is less than the amount required under this chapter; or. 2218), Sec. GENERAL PROVISIONS CHAPTER 1. BANKING COMMISSIONER. ADDITIONAL QUALIFICATIONS. June 19, 2015. FINANCE CODE. (5) any other records required by commission rule or reasonably requested by the commissioner to determine compliance with this chapter. The commissioner may issue an emergency cease and desist order in accordance with Section 151.710 if the commissioner finds that the factors identified in Section 151.710(b) exist. 1403), Sec. Acts 2019, 86th Leg., R.S., Ch. endobj (a) The commissioner may issue an order to cease and desist if the commissioner finds that: (1) an action, violation, or condition listed in Section 151.703 or 151.704 exists with respect to a license holder or authorized delegate; and. 2458), Sec. A hearing on the denial must be held not later than the 45th day after the date the commissioner receives the written request unless the administrative law judge extends the period for good cause or the parties agree to a later hearing date. SHORT TITLE. The application must contain: (1) the legal name and residential and business address of the applicant and each principal of the applicant; (2) the taxpayer identification number, social security number, driver's license number, or other identifying information the commissioner requires of the applicant and each principal of the applicant; and. CONDUCT OF BUSINESS THROUGH AUTHORIZED DELEGATE. 988 (H.B. A license holder is responsible for the acts of the … Department Of Savings And Mortgage Lending. CRIMINAL PENALTY. 6, eff. (b) A license holder shall surrender the license holder's license if the license holder becomes ineligible for a license under Section 151.202(c). (c) The commissioner may not issue a license to an applicant if the applicant or one of the following persons has been convicted within the preceding 10 years of a criminal offense specified in Subsection (e): (1) if the applicant is an individual, the spouse or proposed responsible individual or individuals of the applicant; (2) if the applicant is an entity that is wholly owned, directly or indirectly, by a single individual, the spouse of the individual; or. June 19, 2015. Sept. 1, 1997. 2218), Sec. 988 (H.B. 7, eff. title 1. general provisions chapter 1. general provisions. 428 (S.B. Sec. Read Texas laws in a format that is more accessible for screen readers. (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, a currency exchange license, or a depository agent license. (b) In determining whether an authorized delegate has engaged in an unsafe or unsound act or practice or conducted business in an unsafe or unsound manner, the commissioner may consider factors that include: (1) the size and condition of the authorized delegate's provision of money services; (4) any action taken against the authorized delegate by this state, another state, or the federal government; and. (a) A license holder may surrender the license holder's license by delivering the original license to the commissioner along with a written notice of surrender that includes the location at which the license holder's records will be stored and the name, address, telephone number, and other contact information for an individual who is authorized to provide access to the records. Chapter 11. 988 (H.B. (b) Except to the extent limited by Subsection (d), the following constitute a permissible investment for purposes of this section: (1) 40 percent of the receivables due a license holder from authorized delegates resulting from money transmission under this chapter that is not past due or doubtful of collection; (2) cash in demand or interest-bearing accounts with a federally insured depository institution, including certificates of deposit; (3) certificates of deposit or senior debt obligations of a domestic federally insured depository institution that are readily marketable and insured by an agency of the federal government; (4) investment grade bonds and other legally created general obligations of a state, an agency or political subdivision of a state, the United States, or an instrumentality of the United States; (5) obligations that a state, an agency or political subdivision of a state, the United States, or an instrumentality of the United States has unconditionally agreed to purchase, insure, or guarantee and that bear a rating of one of the three highest grades as defined by a nationally recognized organization that rates securities; (6) shares in a money market mutual fund if the mutual fund, under the terms of the mutual fund's governing documents, is authorized to invest only in securities of the type described by Subdivisions (4) and (5) or permitted by commission rule; and. 198 (H.B. Additional terms that apply specifically to money transmission are defined in Section 151.301. (d) A joint examination or investigation, or acceptance of an examination or investigation report, does not waive an examination assessment provided for in this chapter. In this chapter: (1) "Consolidated insurance program" means a program under which a principal provides general liability insurance … Search by Keyword or Citation; Search by Keyword or Citation. The rule changes are adopted under Texas Finance Code, §11.308 and §15.413, which authorize the commissions to issue interpretations of Texas Constitution, Article XVI, §50(a)(5) - (7), (e) - (p), (t), and (u), subject to Texas Government Code, Chapter 2001. RECORDS. (14) "Money services" means money transmission or currency exchange services. (7) the authorized delegate, or a principal or responsible person of the authorized delegate, has been convicted of a state or federal anti-money-laundering or terrorist funding law. 11, eff. 2 0 obj Search Texas Statutes. 1, eff. 151.001.AASHORT TITLE. (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. Acts 1997, 75th Leg., ch. (19) "Record" means information that is: (B) stored in an electronic or other medium and retrievable in perceivable form. CHAPTER 12. (2) knowingly engages in an activity for which a license is required under Subchapter D or F without being licensed under this chapter. September 1, 2005. (4) include a notice that a person may request a hearing on the order by filing a written request for hearing with the commissioner not later than the 15th day after the date the order is delivered or mailed. 483), Sec. 483), Sec. (b) If the commissioner finds that the applicant for any reason fails to possess the qualifications or satisfy the requirements for the license for which application is made, the commissioner shall inform the applicant in writing that the application is denied and state the reasons for the denial. Acts 2017, 85th Leg., R.S., Ch. 1403), Sec. (a) This section defines terms that apply specifically to an applicant for or holder of a currency exchange license issued under this subchapter. (3) security that meets the requirements of Section 151.308, and an undertaking or agreement that the applicant will increase or supplement the security to equal the aggregate security required by the commissioner under that section before the issuance of the license and the start of operations. (b) An offense under this section is a felony of the third degree. Acts 2019, 86th Leg., R.S., Ch. Sec. 899), Sec. (a) The commissioner may suspend or revoke the designation of an authorized delegate if the commissioner has reason to believe that: (1) the authorized delegate has violated this chapter, a rule adopted or order issued under this chapter, a written agreement entered into with the commissioner or the department, or any other state or federal law applicable to a money services business; (2) the authorized delegate has refused to permit or has not cooperated with an examination or investigation under this chapter; (3) the authorized delegate has engaged in fraud, knowing misrepresentation, deceit, gross negligence, or an unfair or deceptive act or practice in connection with the operation of the delegate's business on behalf of the license holder or any transaction subject to this chapter; (4) the competence, experience, character, or general fitness of the authorized delegate, or a principal of, person in control of, or responsible person of the authorized delegate, indicates that it is not in the public interest to permit the authorized delegate to provide money services; (5) the authorized delegate has engaged in an unsafe or unsound act or practice or conducted business in an unsafe and unsound manner; (6) the authorized delegate, or a principal or responsible person of the authorized delegate, is listed on the specifically designated nationals and blocked persons list prepared by the United States Department of the Treasury as a potential threat to commit terrorist acts or to fund terrorist acts; or. (d) The commissioner may suspend consideration of an application for a license if the applicant or a principal of, person in control of, or proposed responsible individual of the applicant is the subject of a pending state or federal criminal prosecution, state or federal government enforcement action, or state or federal asset forfeiture proceeding until the conclusion of the prosecution, action, or proceeding. This subtitle may be cited as the Texas Banking Act. (d) Unless otherwise directed by the commissioner, a license holder shall pay all costs reasonably incurred in connection with an examination of the license holder or the license holder's authorized delegate. 198 (H.B. Search by Keyword or Citation; Search by Keyword or Citation . Acts 2019, 86th Leg., R.S., Ch. 2134), Sec. Sec. The Texas Constitution is current through the amendments approved by voters in November 2019. A petition for judicial review filed in the district court under this subsection does not stay or vacate the appealed order unless the court, after notice and hearing, specifically stays or vacates the order. TEXAS DEPARTMENT OF BANKING. 151.208. (5) has been granted an exemption under Subsection (d). (5) summon and examine under oath a principal, responsible individual, or employee of a license holder or authorized delegate of a license holder and require the person to produce records regarding any matter related to the condition and business of the license holder or authorized delegate. September 1, 2013. FINANCE CODE. CONFIDENTIALITY. (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; (9) "Unsafe or unsound act or practice" means a practice of or conduct by a license holder or an authorized delegate of the license holder that creates the likelihood of material loss, insolvency, or dissipation of the license holder's assets, or that otherwise materially prejudices the interests of the license holder or the license holder's customers. CHAPTER 151. September 1, 2013. Financial Regulatory Agencies. (2) is authorized to investigate or prosecute violations of a state, federal, or foreign law related to persons engaged in money services businesses or activities subject to this chapter, including a state attorney general's office. (4) "Commission" means the Finance Commission of Texas. SUBTITLE C. PROGRAMS AFFECTING MULTIPLE LINES OF INSURANCE. Sec. (a) Subject to Subsections (b) and (c), to qualify for a license under this chapter, an applicant must demonstrate to the satisfaction of the commissioner that: (1) the financial responsibility and condition, financial and business experience, competence, character, and general fitness of the applicant justify the confidence of the public and warrant the belief that the applicant will conduct business in compliance with this chapter and the rules adopted under this chapter and other applicable state and federal law; (2) the issuance of the license is in the public interest; (3) the applicant, a principal of the applicant, or a person in control of the applicant does not owe the department a delinquent fee, assessment, administrative penalty, or other amount imposed under this chapter or a rule adopted or order issued under this chapter; (4) the applicant, if a partnership, and any partner that would generally be liable for the obligations of the partnership, does not owe a delinquent federal tax; (A) is in good standing and statutory compliance in the state or country of incorporation; (B) is authorized to engage in business in this state; and. There are two types of Money Services Business licenses and separate applications for each type. 151.002. 1000 (H.B. (2) advise the person against whom the order is directed that the order takes effect immediately, and, to the extent applicable, require the person to immediately cease and desist from the conduct or violation that is the subject of the order or to take the affirmative action stated in the order as necessary to correct a condition resulting from the conduct or violation or as otherwise appropriate; (3) be delivered by personal delivery or sent by certified mail, return receipt requested, to the person against whom the order is directed at the person's last known address; and. 2458), Sec. (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. 31.002. 988 (H.B. (c) A license holder's authorized delegate may not commingle the money received for transmission by or for the license holder with the authorized delegate's own money or other property, except to use in the ordinary course of the delegate's business for the purpose of making change, if the money is accounted for at the end of each business day. A person or business that engages in the money transmission business must have a money transmission license. (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 that the commissioner does not receive the completed report and license fee. RULES. CHAPTER 348. Search Texas Statutes. (b) The commissioner, with respect to an agency described by and for the purposes set forth in Subsection (a), may: (1) enter into a written cooperation, coordination, or information-sharing contract or agreement with the agency; (2) share information with the agency, subject to the confidentiality provisions of Section 151.606(b)(3); (3) conduct a joint or concurrent on-site examination or other investigation or enforcement action with the agency; (4) accept a report of examination or investigation by, or a report submitted to, the agency, in which event the accepted report is an official report of the commissioner for all purposes; (5) engage the services of the agency to assist the commissioner in performing or discharging a duty or responsibility imposed by this chapter or other law and pay a reasonable fee for the services; (6) share with the agency any supervisory or examination fees assessed against a license holder or authorized delegate under this chapter and receive a portion of supervisory or examination fees assessed by the agency against a license holder or authorized delegate; and. September 1, 2005. Chapter 12. 75 (S.B. (e) A hearing to assess an administrative penalty is considered a contested case hearing and is subject to Section 151.801. Sec. (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: (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. Acts 2013, 83rd Leg., R.S., Ch. 4. 1403), Sec. May 24, 2019. CONDUCT OF BUSINESS THROUGH AUTHORIZED DELEGATE. (a) This section defines terms that apply to an applicant for or holder of a money transmission license issued under this subchapter. Texas Finance Code § 151.002. 7, eff. SUBCHAPTER A. (12) "Location" means a place at which activity regulated by this chapter occurs. (21) "USA PATRIOT ACT" means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001 (Pub. Sec. (b) A money transmission license holder shall prepare written reports and statements as follows: (1) the annual 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. SECURITY. (3) conduct a reasonable risk-based background investigation sufficient for the license holder to determine whether the authorized delegate has complied with applicable state and federal law. Acts 2019, 86th Leg., R.S., Ch. … (a) The commission may adopt rules to administer and enforce this chapter, including rules necessary or appropriate to: (2) preserve and protect the safety and soundness of money services businesses; (3) protect the interests of purchasers of money services and the public; (4) protect against drug trafficking, terrorist funding, and money laundering, structuring, or a related financial crime; and. (c) On application and a finding that the exemption is in the public interest, the commissioner may exempt a person that: (1) incidentally engages in the money transmission business only to the extent reasonable and necessary to accomplish a primary business objective unrelated to the money transmission business; (2) does not advertise or offer money transmission services to the public except to the extent reasonable and necessary to fairly advertise or offer the person's primary business services; and. Cancel « Prev. An action brought by a prosecuting attorney under Subsection (a)(4) must be brought in a district court in the county in which all or part of the violation is alleged to have occurred.

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