88R3365 JES-F By: Zaffirini S.B. No. 337 A BILL TO BE ENTITLED AN ACT relating to the establishment of a registry for and requiring the registration of certain unmanned teller machines; imposing a fee; providing a civil penalty. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle Z, Title 3, Finance Code, is amended by adding Chapter 282 to read as follows: CHAPTER 282. REGISTRATION OF UNMANNED TELLER MACHINES SUBCHAPTER A. GENERAL PROVISIONS Sec. 282.001. DEFINITIONS. In this chapter: (1) "Department" means the Texas Department of Banking. (2) "Finance commission" means the Finance Commission of Texas. (3) "Financial institution" has the meaning assigned by Section 201.101. (4) "Occupant," with respect to an unmanned teller machine, means a person that permits the public to access and use the machine on the premises of a business establishment or facility owned or operated by the person. (5) "Operator," with respect to an unmanned teller machine, means a person that owns, leases, operates, or maintains the machine for public use on the premises of a business establishment or facility owned or occupied by that person or another person. (6) "Registration sticker" means the sticker issued under Section 282.055(b) that is required to be placed on an unmanned teller machine as proof of the machine's registration under this chapter. (7) "Unmanned teller machine" has the meaning assigned by Section 59.301. Sec. 282.002. INAPPLICABILITY OF CHAPTER TO CERTAIN UNMANNED TELLER MACHINES. This chapter does not apply to an unmanned teller machine that is: (1) installed, maintained, owned, leased, or operated by, or at the direction of, a financial institution or an affiliate of a financial institution; (2) located or operated in another state; or (3) not available for public use. Sec. 282.003. RULES. The finance commission shall adopt rules necessary to administer, implement, and enforce this chapter. SUBCHAPTER B. REGISTRATION OF UNMANNED TELLER MACHINES; REGISTRY Sec. 282.051. UNMANNED TELLER MACHINE REGISTRY. (a) The department shall establish and maintain on the department's Internet website an online registry of unmanned teller machines required to be registered under this chapter. (b) The department shall update the registry at least quarterly. Sec. 282.052. REGISTRATION OF CERTAIN UNMANNED TELLER MACHINES REQUIRED. Before operating an unmanned teller machine in this state, the operator of the machine must: (1) register the machine; and (2) place a valid registration sticker on the machine. Sec. 282.053. APPLICATION FOR REGISTRATION. (a) To register an unmanned teller machine, the operator of the machine must file an application with the department in accordance with this chapter. (b) An operator may apply to register one or more unmanned teller machines in the same application. (c) The registration application must: (1) be in writing and notarized; (2) be completed by the operator of the machine; (3) include for each unmanned teller machine the operator is applying to register: (A) the name, address, and telephone number of the facility or place of business where the unmanned teller machine will be located; (B) the name, address, and telephone number of the occupant; (C) the name, address, and telephone number of the operator; (D) the unmanned teller machine equipment information, including the quantity, equipment make, equipment model, and machine identification or serial number; (E) a copy of each agreement used or intended to be used by the operator relating to the operation of the unmanned teller machine; and (F) any other relevant information that may be required by the department; and (4) except as provided by Subsection (d), be accompanied by the application fee under Section 282.054. (d) The department may not charge an application fee for the filing of a new application for an unmanned teller machine following a material change in the registration described by Section 282.058(a)(1)(B) or (C). Sec. 282.054. APPLICATION FEE. (a) The finance commission by rule shall impose a fee for filing a registration application under Section 282.053. (b) The application fee must be in an amount: (1) that is at least $5 but not more than $25 for each unmanned teller machine being registered; (2) not to exceed a total of $200, regardless of the number of unmanned teller machines being registered; and (3) sufficient to cover the costs of the department in carrying out the department's duties under this chapter. Sec. 282.055. APPROVAL OR DENIAL OF REGISTRATION; REGISTRATION STICKER. (a) Not later than the 90th day after the date an application for registration is filed under Section 282.053, the department shall make a determination regarding whether to approve or deny the application. The department shall approve the application if the application is accurate, complete, and complies with Section 282.053. (b) If the department approves the application, the department shall notify the applicant of the approval and issue the applicant a registration sticker for each unmanned teller machine the applicant is applying to register. If the department determines that the application is incomplete, inaccurate, or does not comply with Section 282.053, the department shall deny the application and notify the applicant of the reasons for denial. (c) An application for registration that is accurate, complete, and complies with Section 282.053 and has not been approved or denied before the 91st day after the date the department receives the application is considered approved for purposes of this chapter. An operator's proof of submission of an application described by this subsection satisfies the requirement of this chapter to display a registration sticker for each unmanned teller machine included in the application until the date on which the operator is issued a registration sticker for the machine. (d) An operator that has submitted an application considered approved under Subsection (c) because of the department's failure to approve or deny the application within the period prescribed by that subsection may install and operate each of the machines listed for registration until the date on which the department denies the application, if ever, or the operator fails to comply with the requirements of Section 282.058. (e) If an application for registration considered approved under Subsection (c) is denied at any time by the department, the operator must uninstall and cease the operation of each unmanned teller machine operating under that approval until the date an application for registration of the unmanned teller machine receives the department's approval, if ever. (f) The department has the sole discretion to determine whether a submitted application is accurate and complete for purposes of this section. Sec. 282.056. FORM AND CONTENTS OF REGISTRATION STICKER. (a) The finance commission by rule shall determine the size, design, display location, and technology used for a registration sticker. (b) The registration sticker, at a minimum, must include: (1) the unmanned teller machine's identification or serial number; (2) the name, address, and telephone number of the facility or place of business where the unmanned teller machine is located; (3) the name, address, and telephone number of the occupant; (4) the name, address, and telephone number of the operator; and (5) the date of issuance of the registration. (c) An operator shall display the registration sticker issued for each unmanned teller machine in the manner prescribed by finance commission rule. The rules of the finance commission must ensure that the registration sticker be displayed in a manner that is plainly visible and readable by the public. Sec. 282.057. REGISTRATION; VALIDITY. The registration of an unmanned teller machine remains valid unless a material change in the information disclosed in the registration of the machine as described by Section 282.058 occurs and the operator of the machine fails to comply with the requirements of that section. Sec. 282.058. RELOCATION OF REGISTERED MACHINE; CHANGE IN OPERATOR OR OCCUPANT. (a) Not later than the 30th day before the scheduled or effective date of the applicable change described by Subdivision (1), the operator of an unmanned teller machine registered under this chapter shall notify the department in writing of: (1) a material change in the information disclosed in the registration of the machine because of: (A) the relocation of the machine to another place of business or facility if a change of ownership has not occurred; (B) a new occupant or operator of the machine; or (C) a new lessee or lessor of the machine; and (2) the scheduled or effective date of the applicable change described by Subdivision (1). (b) Not later than the 60th day after the scheduled or effective date of a material change in the registration of an unmanned teller machine described by Subsection (a)(1), the operator of the machine must: (1) file a new application for registration of the machine under Section 282.053 if the change occurs because of Subsection (a)(1)(B) or (C); or (2) submit a request for written approval of the transfer of the registration under Section 282.059 if the change occurs because of Subsection (a)(1)(A). (c) If the operator required to file a new application or submit a request for transfer approval under Subsection (b) fails to do so within the time prescribed by that subsection, the operator must uninstall and cease operation of the machine, unless the department grants the operator an extension of time. Sec. 282.059. TRANSFER OF REGISTRATION. (a) An unmanned teller machine registration may be transferred following a relocation of the machine described by Section 282.058(a)(1)(A) only with the written approval of the department. (b) The finance commission by rule may prescribe registration transfer procedures and may prescribe forms to be used for issuance of new registration stickers. Sec. 282.060. OPERATION OF MACHINE WITHOUT REGISTRATION STICKER PROHIBITED. (a) Except as otherwise provided by this chapter, an operator of an unmanned teller machine subject to registration violates this chapter if the operator places the machine in operation without a valid registration sticker. (b) Except as otherwise provided by this chapter, an occupant violates this chapter if the occupant permits an unmanned teller machine subject to registration to be placed in the premises of a business establishment or facility owned or operated by the occupant without a valid registration sticker. SUBCHAPTER C. ENFORCEMENT Sec. 282.101. CIVIL PENALTY; INJUNCTIVE RELIEF. (a) A person that violates this chapter or a rule adopted under this chapter is liable to this state for a civil penalty in an amount of not less than $50 or more than $500 for each violation. Each day of a continuing violation is a separate violation. The amount of the civil penalty imposed under this subsection may not exceed $2,000 in the aggregate for the violation and all violations of a similar nature. (b) The attorney general may bring an action in the name of this state against a person that violates this chapter or a rule adopted under this chapter for: (1) injunctive relief; (2) recovery of a civil penalty imposed under this section; or (3) both injunctive relief and a civil penalty. (c) An action under this section may be brought in a district court in: (1) Travis County; or (2) a county in which any part of the violation or threatened violation occurs. SECTION 2. (a) Not later than January 1, 2024, the Finance Commission of Texas shall adopt rules to administer and implement Chapter 282, Finance Code, as added by this Act, including rules to establish the unmanned teller machine registry required by Section 282.051, Finance Code, as added by this Act. (b) Notwithstanding Chapter 282, Finance Code, as added by this Act, an operator of an unmanned teller machine that is subject to registration under that chapter and that was not in operation on or before the effective date of this Act is not required to file an application to register the unmanned teller machine until January 1, 2024. (c) Notwithstanding any other provision of this Act, the operator of an unmanned teller machine that was in operation before the effective date of this Act and is subject to the registration requirements of Chapter 282, Finance Code, as added by this Act, must file an application to register the machine in accordance with that chapter not later than January 1, 2025. SECTION 3. (a) Except as provided by Subsection (b) of this section, this Act takes effect September 1, 2023. (b) Section 282.101, Finance Code, as added by this Act, takes effect January 1, 2025.