By: Eltife	S.B. No. 899
	(Stephenson)

	A BILL TO BE ENTITLED
	AN ACT
	relating to the regulation of money services businesses; affecting
	the prosecution of a criminal offense.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 151.003, Finance Code, is amended to
	read as follows:
	Sec. 151.003.  EXCLUSIONS. 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 from a person to:
	(i)  the same person at another location; or
	(ii)  a financial institution to be
	deposited in an account belonging to the same person; and
	(B)  does not otherwise engage in the money
	transmission or currency exchange business without a license issued
	under this chapter; 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 2.  Sections 151.302(a) and (b), Finance Code, are
	amended to read as follows:
	(a)  A person may not engage in the business of money
	transmission in this state or advertise, solicit, or represent
	[hold itself out as a person] 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).
	(b)  For purposes of this chapter,[:
	[(1)]  a person engages in the business of money
	transmission if the person [conducts money transmission for persons
	located in this state and] receives compensation or expects to
	receive compensation, directly or indirectly, for conducting money
	transmission [the transmissions; and
	[(2)     a person solicits, advertises, or holds itself
	out as a person that engages in the business of money transmission
	if the person represents that the person will conduct money
	transmission for persons located in this state].
	SECTION 3.  Section 151.504(b), Finance Code, is amended to
	read as follows:
	(b)  At the time an application for a currency exchange
	license is submitted, an applicant must file with the department:
	(1)  an application fee in the amount established by
	commission rule; and
	(2)  security in the amount required under [of $2,500
	that meets the requirements of] Section 151.506.
	SECTION 4.  Section 151.506, Finance Code, is amended to
	read as follows:
	Sec. 151.506.  SECURITY.  (a) An applicant for a currency
	exchange license must provide and a currency exchange license
	holder must maintain at all times security in the amount applicable
	to the applicant or license holder under this section.  The security
	must satisfy [of $2,500 that satisfies] the requirements of and is
	subject to Sections 151.308(c)-(j).
	(b)  An applicant must provide and a license holder must
	maintain security in the amount of $2,500 if the applicant will
	conduct or the license holder conducts business with persons
	located in this state exclusively at one or more physical locations
	through in-person, contemporaneous transactions.
	(c)  Except as provided by Subsection (d), if Subsection (b)
	does not apply to:
	(1)  the applicant, the applicant must provide security
	in the amount that is the greater of:
	(A)  $2,500; or
	(B)  an amount equal to one percent of the
	applicant's projected total dollar volume of currency exchange
	business in this state for the first year of licensure; or
	(2)  the license holder, the license holder must
	maintain security in the amount that is the greater of:
	(A)  $2,500; or
	(B)  an amount equal to one percent of the license
	holder's total dollar volume of currency exchange business in this
	state for the preceding year.
	(d)  The maximum amount of security that may be required
	under Subsection (c) is $1 million.
	SECTION 5.  Section 151.605(g), Finance Code, is amended to
	read as follows:
	(g)  The following persons are exempt from the requirements
	of Subsection (a), but the license holder must notify the
	commissioner not later than the 15th day after the date the change
	of control becomes effective:
	(1)  a person that acts as proxy for the sole purpose of
	voting at a designated meeting of the security holders or holders of
	voting interests of a license holder or controlling person;
	(2)  a person that acquires control of a license holder
	by devise or descent;
	(3)  [a person that acquires control as a personal
	representative, custodian, guardian, conservator, or trustee, or
	as an officer appointed by a court or by operation of law;
	[(4)]  a person exempted in the public interest by rule
	of the commission or by order of the commissioner; and
	(4) [(5)]  a person that has previously complied with
	and received approval under this chapter or that was identified as a
	person in control in a prior application filed with and approved by
	the commissioner.
	SECTION 6.  Section 151.708(c), Finance Code, is amended to
	read as follows:
	(c)  An offense under this section may be prosecuted in [If
	the commissioner has reason to believe that a person has committed
	an offense under this section or any other state or federal law, the
	commissioner may file a criminal referral with the district
	attorney of] Travis County or in [an appropriate prosecuting
	attorney of] the county in which the offense is alleged to have been
	committed.
	SECTION 7.  Section 151.301(b)(7), Finance Code, is
	repealed.
	SECTION 8.  Section 151.605, Finance Code, as amended by
	this Act, applies only to a person that acquires control of a
	license holder under that section as a personal representative,
	custodian, guardian, conservator, or trustee or as an officer
	appointed by a court or by operation of law on or after the
	effective date of this Act.  A person that acquired control of a
	license holder as a personal representative, custodian, guardian,
	conservator, or trustee or as an officer appointed by a court or by
	operation of law before the effective date of this Act is governed
	by the law in effect on the date the person acquired control, and
	the former law is continued in effect for that purpose.
	SECTION 9.  Section 151.708(c), Finance Code, as amended by
	this Act, applies only to an offense committed on or after the
	effective date of this Act. An offense committed before the
	effective date of this Act is governed by the law in effect when the
	offense was committed, and the former law is continued in effect for
	that purpose.  For purposes of this section, an offense was
	committed before the effective date of this Act if any element of
	the offense occurred before that date.
	SECTION 10.  This Act takes effect September 1, 2015.