By: Johnson S.B. No. 895     A BILL TO BE ENTITLED   AN ACT   relating to the regulation of money services businesses; creating a   criminal offense; creating administrative penalties; authorizing   the imposition of a fee.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:   ARTICLE 1. MONEY SERVICES MODERNIZATION ACT          SECTION 1.01.  Subtitle E, Title 3, Finance Code, is amended   by adding Chapter 152 to read as follows:   CHAPTER 152. REGULATION OF MONEY SERVICES BUSINESSES   SUBCHAPTER A. GENERAL PROVISIONS          Sec. 152.001.  SHORT TITLE. This chapter may be cited as the   Money Services Modernization Act.          Sec. 152.002.  PURPOSE; CONSTRUCTION OF CHAPTER. (a) The   purposes of this chapter are to:                (1)  protect the interests of purchasers of money   services and the public;                (2)  preserve and protect the safety and soundness of   money services businesses; and                (3)  protect against drug trafficking, terrorist   funding, money laundering, structuring, or related financial   crimes.          (b)  In applying and construing this chapter, consideration   shall be given to the need to promote uniformity of the law with   respect to its subject matter among states that enact laws   substantially similar to this chapter.          Sec. 152.003.  DEFINITIONS. In this chapter:                (1)  "Acting in concert" means knowingly acting   together with a common goal of jointly acquiring control of a money   services licensee whether or not under an express agreement.                (2)  "Authorized delegate" means a person designated by   a money transmission licensee to engage in money transmission   services on behalf of the licensee.                (3)  "Average daily money transmission liability"   means the amount of a money services licensee's outstanding money   transmission obligations in this state at the end of each day in a   given period of time, added together, and divided by the total   number of days in the given period of time. For purposes of   calculating average daily money transmission liability under this   chapter as required by a money services licensee, the given period   of time shall be:                      (A)  the calendar quarters;                      (B)  a period described by this chapter; or                      (C)  any other period of time designated by the   commissioner during an examination.                (4)  "Bank Secrecy Act" means the Bank Secrecy Act (31   U.S.C. Section 5311), and its implementing regulations.                (5)  "Closed-loop stored value" means stored value that   is redeemable by the issuer only for goods or services provided by   the issuer, the issuer's affiliate, or a franchisee of the issuer or   the issuer's affiliate, except to the extent required by applicable   law to be redeemable in cash for its cash value.                (6)  "Commission" means the Finance Commission of   Texas.                (7)  "Commissioner" means the banking commissioner of   Texas or a person designated by the banking commissioner and acting   under the banking commissioner's direction and authority.                (8)  "Control" means the power to:                      (A)  directly or indirectly vote at least 25   percent or more of the outstanding voting shares or voting   interests of a money services licensee or person in control of a   money services licensee;                      (B)  elect or appoint a majority of key   individuals or executive officers, managers, directors, trustees,   or other persons exercising managerial authority of a person in   control of a money services licensee; or                      (C)  directly or indirectly exercise a   controlling influence over the management or policies of a money   services licensee or person in control of a money services   licensee.                (9)  "Currency" means the coin and paper money issued   by the United States or another country that is designated as legal   tender, circulates, and is customarily used and accepted as a   medium of exchange in the country of issuance.                (10)  "Currency exchange" means receiving:                      (A)  the currency of one government and exchanging   it for the currency of another government; or                      (B)  a negotiable instrument, as defined by   Section 3.104, Business & Commerce Code, and exchanging it for the   currency of another government.                (11)  "Currency exchange licensee" means a holder of a   currency exchange license under this chapter.                (12)  "Department" means the Texas Department of   Banking.                (13)  "Eligible rating" means a sufficiently high   credit rating given by an eligible rating service. If a security   has differing credit ratings given by multiple eligible rating   services, the highest rating shall apply when determining whether   the security has an eligible rating. For purposes of this   definition, a sufficiently high credit rating is a credit rating of   any of the three highest rating categories provided by an eligible   rating service, including:                      (A)  a long-term credit rating of A- or higher by   S&P Global;                      (B)  a short-term credit rating of A-2, SP-2, or   higher by S&P Global; or                      (C)  the relative equivalent rating from an   eligible rating service that does not have a rating described by   Paragraphs (A) and (B).                (14)  "Eligible rating service" means:                      (A)  a Nationally Recognized Statistical Rating   Organization as defined by the United States Securities and   Exchange Commission; and                      (B)  any other organization designated by the   commissioner by rule or order.                (15)  "Federally insured depository financial   institution" means a bank, credit union, savings and loan   association, trust company, savings association, savings bank,   industrial bank, or industrial loan company organized under the   laws of the United States or any state of the United States that has   federally insured deposits.                (16)  "In this state" means:                      (A)  for a transaction requested in person, a   physical location within this state; or                      (B)  for a transaction requested electronically   or by phone, a determination that the person requesting the   transaction is in this state based on:                            (i)  information provided by the person   regarding:                                  (a)  if the person is an individual,   the location of the individual's residential address; or                                  (b)  if the person is a business   entity, the entity's principal place of business or other physical   address location; and                            (ii)  any records associated with the person   that the provider of money transmission has that indicate the   person's location, including an address associated with a person's   account.                (17)  "Key individual" means an individual who is   ultimately responsible for establishing or directing policies and   procedures of a money services licensee, including an executive   officer, manager, director, or trustee.                (18)  "Material litigation" means litigation that,   according to United States generally accepted accounting   principles, is significant to a person's financial health and would   be required to be disclosed in the person's annual audited   financial statements, report to shareholders, or similar records.                (19)  "Money" or "monetary value" means currency or a   claim that can be converted into currency through a financial   institution, electronic payments network, or other formal or   informal payment system. The term includes stablecoin that:                      (A)  is pegged to a sovereign currency;                      (B)  is fully backed by assets held in reserve;   and                      (C)  grants a holder of the stablecoin the right   to redeem the stablecoin for sovereign currency from the issuer.                 (20)  "Money services" means money transmission   services or currency exchange services.                (21)  "Money services licensee" means a holder of a   money transmission license or currency exchange license under this   chapter.                (22)  "Money transmission":                      (A)  means:                            (i)  selling or issuing payment instruments   to a person located in this state;                            (ii)  selling or issuing stored value to a   person located in this state; or                            (iii)  receiving money for money   transmission services from a person located in this state;                      (B)  includes payroll processing services; and                      (C)  does not include the provision solely of   online or telecommunications services or network access.                (23)  "Money transmission licensee" means a holder of a   money transmission license under this chapter.                (24)  "MSB-accredited state" means a state agency that   is accredited by the Conference of State Bank Supervisors and Money   Transmitter Regulators Association for money transmission   licensing and supervision.                (25)  "Multistate licensing process" means an   agreement entered into by and among state regulators relating to   coordinated processing of applications for money transmission   licenses, applications for the acquisition of control of a money   transmission licensee, control determinations, or notice and   information requirements for a change of key individuals.                (26)  "NMLS" means the Nationwide Multistate Licensing   System and Registry developed by the Conference of State Bank   Supervisors and the American Association of Residential Mortgage   Regulators and owned and operated by the State Regulatory Registry,   LLC, for the licensing and registration of persons in financial   services industries, or a successor or affiliated entity.                (27)  "Outstanding money transmission obligation," as   established and extinguished in accordance with applicable state   law, means:                      (A)  a payment instrument or stored value:                            (i)  that has been:                                  (a)  issued or sold by a money   transmission licensee to a person located in any state, territory,   or possession of the United States, the District of Columbia, the   Commonwealth of Puerto Rico, or a United States military   installation that is located in a foreign country; or                                  (b)  reported as sold by an authorized   delegate to a person who is located in any state, territory, or   possession of the United States, the District of Columbia, the   Commonwealth of Puerto Rico, or a United States military   installation that is located in a foreign country; and                            (ii)  that has not been:                                  (a)  paid or refunded by or for the   licensee; or                                  (b)  escheated in accordance with   applicable abandoned property laws; or                      (B)  money received for money transmission   services by a money transmission licensee or an authorized delegate   from a person located in any state, territory, or possession of the   United States, the District of Columbia, the Commonwealth of Puerto   Rico, or a United States military installation that is located in a   foreign country that has not been:                            (i)  received by the payee or refunded to the   person; or                            (ii)  escheated in accordance with   applicable abandoned property laws.                (28)  "Passive investor" means a person who:                      (A)  does not have the power to elect a majority of   key individuals or executive officers, managers, directors,   trustees, or other persons exercising managerial authority of a   person in control of a money services licensee;                      (B)  is not employed by and does not have any   managerial duties of a money services licensee or person in control   of a money services licensee;                      (C)  does not have the power to directly or   indirectly exercise a controlling influence over the management or   policies of a money services licensee or person in control of a   money services licensee; and                      (D)  either:                            (i)  attests to Paragraphs (A), (B), and (C)   in a form and medium prescribed by the commissioner; or                            (ii)  commits to the passivity   characteristics of Paragraphs (A), (B), and (C) in a written   document.                (29)  "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. L.   No. 107-56).                (30)  "Payment instrument" means a written or   electronic check, draft, money order, traveler's check, or other   written or electronic instrument for the transmission or payment of   money or monetary value, whether or not the instrument is   negotiable. The term does not include stored value or an instrument   that is:                      (A)  redeemable by the issuer only for goods or   services provided by the issuer, the issuer's affiliate, or a   franchisee of the issuer or the issuer's affiliate, except to the   extent required by applicable law to be redeemable in cash for its   cash value; or                      (B)  not sold to the public but issued and   distributed as part of a loyalty, rewards, or promotional program.                (31)  "Payroll processing services" means receiving   money for money transmission services under a contract with a   person to deliver wages or salaries, make payment of payroll taxes   to state and federal agencies, make payments relating to an   employee benefit plan, or make distributions of other authorized   deductions from wages or salaries. The term does not include:                      (A)  an employer performing payroll processing   services on its own behalf or on behalf of its affiliate; or                      (B)  a professional employer organization subject   to regulation under other applicable state law.                (32)  "Person" means an individual, general   partnership, limited partnership, limited liability company,   corporation, trust, association, joint stock corporation, or other   corporate entity identified by the commissioner.                (33)  "Receiving money for money transmission" means   receiving money or monetary value in the United States for money   transmission services by electronic or other means that occurs   within or outside the United States.                (34)  "Stored value" means monetary value representing   a claim against the issuer evidenced by an electronic or digital   record that is intended and accepted for use as a means of   redemption for money or monetary value or payment for goods or   services. The term includes prepaid access as defined by 31 C.F.R.   Section 1010.100(ww). The term does not include a payment   instrument, closed-loop stored value, or stored value not sold to   the public but issued and distributed as part of a loyalty, rewards,   or promotional program.                (35)  "Tangible net worth" means the aggregate assets   of a money services licensee excluding all intangible assets, less   liabilities, as determined in accordance with United States   generally accepted accounting principles.                (36)  "Unsafe or unsound act or practice" means a   practice of or conduct by a money services licensee or an authorized   delegate that:                      (A)  creates the likelihood of material loss,   insolvency, or dissipation of the licensee's assets; or                      (B)  otherwise materially prejudices the   interests of the licensee or the licensee's customers.          Sec. 152.004.  EXEMPTIONS. This chapter does not apply to:                (1)  an operator of a payment system to the extent that   the operator provides processing, clearing, or settlement   services, between or among persons exempted by this section or   money services licensees, in connection with wire transfers, credit   card transactions, debit card transactions, stored-value   transactions, automated clearing house transfers, or similar funds   transfers;                (2)  a person appointed as an agent of a payee to   collect and process a payment from a payor to the payee for goods or   services, other than money transmission services, provided to the   payor by the payee, provided that:                      (A)  there exists a written agreement between the   payee and the agent directing the agent to collect and process   payments from payors on the payee's behalf;                      (B)  the payee holds the agent out to the public as   accepting payments for goods or services on the payee's behalf; and                      (C)  payment for the goods and services is treated   as received by the payee on receipt by the agent, the payor's   obligation is extinguished, and there is no risk of loss to the   payor if the agent fails to remit the funds to the payee;                (3)  a person who acts as an intermediary by processing   payments between an entity that has directly incurred an   outstanding money transmission obligation to a sender, and the   sender's designated recipient, provided that the entity that has   incurred the outstanding money transmission obligation:                      (A)  is licensed or exempt from the licensing   requirements of this chapter;                      (B)  provides a receipt, electronic record, or   other written confirmation to the sender identifying the entity as   the provider of money transmission in the transaction; and                      (C)  bears sole responsibility to satisfy the   outstanding money transmission obligation to the sender, including   the obligation to make the sender whole in connection with a failure   to transmit the funds to the sender's designated recipient;                (4)  the United States or a department, agency, or   instrumentality of the United States, or an agent of a department,   agency, or instrumentality of the United States;                (5)  money transmission services by the United States   Postal Service or by an agent of the United States Postal Service;                (6)  a state, county, city, or any other governmental   agency or governmental subdivision or instrumentality of a state,   or its agent;                (7)  a federally insured depository financial   institution, bank holding company, office of an international   banking corporation, foreign bank that establishes a federal branch   under the International Banking Act of 1978 (12 U.S.C. Section   3102), corporation organized under the Bank Service Company Act (12   U.S.C. Sections 1861-1867), or corporation organized under the Edge   Act (12 U.S.C. Sections 611-633);                (8)  a trust company, as defined by Section 187.001,   that is organized under the laws of this state;                (9)  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;                (10)  an electronic funds transfer of governmental   benefits for a federal, state, county, or governmental agency by a   contractor on behalf of the United States or a department, agency,   or instrumentality of the United States, or on behalf of a state or   governmental subdivision, agency, or instrumentality of a state;                (11)  a board of trade designated as a contract market   under the federal Commodity Exchange Act (7 U.S.C. Sections 1-25),   or a person who, in the ordinary course of business, provides   clearance and settlement services for a board of trade to the extent   of its operation as or for a board of trade;                (12)  a registered futures commission merchant under   the federal commodities laws to the extent of its operation as such   a merchant;                (13)  a person registered as a securities broker-dealer   under federal or state securities laws to the extent of the person's   operation as a broker-dealer;                (14)  an individual employed by a money services   licensee, authorized delegate, or person exempted from the   licensing requirements of this chapter when acting within the scope   of employment and under the supervision of the licensee, authorized   delegate, or exempted person as an employee and not as an   independent contractor;                (15)  a person expressly appointed as a third-party   service provider to or agent of an entity exempt under Subdivision   (7), solely to the extent that:                      (A)  the service provider or agent engages in   money transmission services on behalf of and under a written   agreement with the exempt entity that provides the specific   functions that the service provider or agent is to perform; and                      (B)  the exempt entity assumes all risk of loss   and all legal responsibility for satisfying the outstanding money   transmission obligations owed to purchasers and holders of the   outstanding money transmission obligations on receipt of the   purchaser's or holder's money or monetary value by the service   provider or agent; and                (16)  a person exempt by a regulation or order of the   commissioner finding that:                      (A)  the exemption is in the public interest; and                      (B)  the regulation of the person is not necessary   for the purposes of this chapter.          Sec. 152.005.  AUTHORITY TO REQUIRE DEMONSTRATION OF   EXEMPTION. The commissioner may require a person claiming to be   exempt from licensing under Section 152.004 to provide information   and documentation to the commissioner demonstrating that the person   qualifies for the exemption claimed.          Sec. 152.006.  CENTRALIZED DIGITAL CURRENCY PROHIBITED.     This chapter does not authorize the creation of any centralized   bank digital currency or any other action that prohibits or limits   the use of paper currency.   SUBCHAPTER B. ADMINISTRATIVE PROVISIONS          Sec. 152.051.  ADMINISTRATION. The department shall   administer this chapter.          Sec. 152.052.  RULES; FEES. (a) The commission may adopt   rules to administer and enforce this chapter, including rules   necessary or appropriate to implement and clarify this chapter.          (b)  The commission may by rule impose and collect   proportionate and equitable fees and costs for notices,   applications, examinations, investigations, and other actions   required to:                (1)  recover the cost of:                      (A)  maintaining and operating the department;   and                      (B)  administering and enforcing this chapter and   other applicable law; and                (2)  achieve the purposes of this chapter.          (c)  The presence or absence of a specific reference in this   chapter to a rule regarding a particular subject is not intended to   and does not limit the general rulemaking authority granted to the   commission by this section.          Sec. 152.053.  IMPLEMENTATION. The commissioner may,   subject to Sections 152.055(a) and (b):                (1)  enter into agreements or relationships with other   government officials or federal and state regulatory agencies and   regulatory associations in order to improve efficiencies and reduce   regulatory burden by standardizing methods or procedures and   sharing resources, records, or related information obtained under   this chapter;                (2)  use, hire, contract for, or employ analytical   systems, methods, or software to examine or investigate a person   subject to this chapter;                (3)  accept from other state or federal government   agencies or officials licensing, examination, or investigation   reports made by the other state or federal government agencies or   officials; and                (4)  accept audit reports made by an independent   certified public accountant or other qualified third-party auditor   for an applicant or money services licensee and incorporate the   audit report in a report of examination or investigation.          Sec. 152.054.  COMMISSIONER'S GENERAL AUTHORITY. (a) A   power granted to the commissioner under this chapter is in addition   to and does not limit another power granted under this chapter or   other law. The commissioner's exercise of authority under another   law does not preclude the commissioner from exercising a power   under this chapter.          (b)  The commissioner may impose on an 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.          Sec. 152.055.  CONFIDENTIALITY. (a) Except as provided by   Subsection (b), the following are confidential and not subject to   disclosure under Chapter 552, Government Code:                (1)  all information or reports obtained by the   commissioner from an applicant, money services licensee, or   authorized delegate;                (2)  all information contained in or related to an   examination, investigation, operating report, or condition report   prepared by, on behalf of, or for the use of the commissioner; and                (3)  financial statements, balance sheets, or   authorized delegate information.          (b)  The commissioner may disclose information not otherwise   subject to disclosure under Subsection (a):                (1)  to representatives of state or federal agencies   who affirm in a record that the representatives will maintain the   confidentiality of the information; or                (2)  when the commissioner finds that the disclosure is   reasonably necessary for the protection and interest of the public   in accordance with Chapter 552, Government Code.          (c)  This section does not prohibit the commissioner from   disclosing to the public a list of all money services licensees or   the aggregated financial or transactional data concerning those   licensees.          (d)  The following information for each money services   licensee contained in the records of the department is not   confidential and may be made available to the public in its entirety   on the department's Internet website or in the NMLS, or as   responsive on receipt by the department of a written request:                (1)  the name, business address, telephone number, and   unique identifier of the licensee;                (2)  the business address of the licensee's registered   agent for service;                (3)  the name, business address, and telephone number   of each authorized delegate for the licensee, if applicable;                (4)  the terms of or a copy of any bond filed by the   licensee, provided that confidential information under Subsection   (a), including prices and fees for the bond, is redacted;                (5)  copies of any nonconfidential final orders of the   department relating to a violation of this chapter or a regulation   implementing this chapter; and                (6)  notice of the imposition of an administrative fine   or penalty under this chapter.          Sec. 152.056.  INVESTIGATIONS. (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.          (b)  For purposes of an investigation, examination, or other   proceeding under this chapter, the commissioner may:                (1)  administer oaths or cause oaths to be   administered;                (2)  subpoena witnesses;                (3)  compel the attendance of witnesses;                (4)  take evidence; and                (5)  require the production of any document that the   commissioner determines to be relevant to the inquiry.          (c)  If a person refuses to obey a subpoena, a district court   of Travis County, on application by the commissioner, may issue an   order requiring the person to appear before the commissioner and   produce documents or give evidence regarding the matter under   investigation.          (d)  The commissioner may employ a person or request the   attorney general, the Department of Public Safety, or any other   state, federal, or local law enforcement agency to assist in   enforcing this chapter.          (e)  The commissioner may recover the reasonable costs   incurred in connection with an investigation conducted under this   chapter from the person that is the subject of the investigation.          Sec. 152.057.  SUPERVISION. (a) The commissioner may   conduct an examination or investigation of a money services   licensee or authorized delegate or otherwise take independent   action authorized by this chapter or by a rule adopted or order   issued under this chapter as reasonably necessary or appropriate to   administer and enforce this chapter, regulations implementing this   chapter, and other applicable law, including the Bank Secrecy Act   and the Patriot Act.          (b)  The commissioner may:                (1)  conduct an examination on-site or off-site as the   commissioner may reasonably require;                (2)  conduct an examination in conjunction with an   examination conducted by representatives of other state agencies or   agencies of another state or of the federal government;                (3)  accept the examination report of another state   agency or an agency of another state or of the federal government,   or a report prepared by an independent accounting firm; and                (4)  summon and examine under oath a key individual or   employee of a money services licensee or authorized delegate and   require the person to produce records regarding a matter related to   the condition and business of the licensee or authorized delegate.          (c)  If the commissioner accepts a report under Subsection   (b)(3), the report is considered for all purposes an official   report of the commissioner.          (d)  A money services licensee or authorized delegate shall   provide, and the commissioner shall have full and complete access   to, all records the commissioner may reasonably require to conduct   a complete examination. Records must be provided at the location   and in the format specified by the commissioner, provided the   commissioner may use multistate record production standards and   examination procedures when those standards will reasonably   achieve the requirements of this section.          (e)  Unless otherwise directed by the commissioner, a money   services licensee shall pay all costs reasonably incurred in   connection with an examination of the licensee or an authorized   delegate of the licensee.          Sec. 152.058.  NETWORKED SUPERVISION. (a) To efficiently   and effectively administer and enforce this chapter and to minimize   regulatory burden, the commissioner may participate in multistate   supervisory processes established between states and coordinated   through the Conference of State Bank Supervisors, Money Transmitter   Regulators Association, and affiliates and successors of those   entities for all money services licensees that hold licenses in   this state and other states.          (b)  If the commissioner participates in multistate   supervision, the commissioner shall:                (1)  cooperate, coordinate, and share information with   other state and federal regulators in accordance with Section   152.055(b);                (2)  enter into written cooperation, coordination, or   information-sharing contracts or agreements with organizations   made up of state or federal governmental agencies; and                (3)  cooperate, coordinate, and share information with   organizations made up of state or federal governmental agencies, if   the organizations agree in writing to maintain the confidentiality   and security of the shared information in accordance with Section   152.055.          (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.          (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.          Sec. 152.059.  RELATIONSHIP TO FEDERAL LAW. (a) If state   money transmission jurisdiction is conditioned in federal law, any   inconsistency between a provision of this chapter and the federal   law governing money transmission shall be governed by the   applicable federal law to the extent of the inconsistency.          (b)  In the event of any inconsistency between this chapter   and federal law that governs under Subsection (a), the commissioner   may provide interpretive guidance that:                (1)  identifies the inconsistency; and                (2)  prescribes the appropriate means of compliance   with federal law.          Sec. 152.060.  CONSENT TO SERVICE OF PROCESS. A money   services licensee, 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.          Sec. 152.061.  PRESUMPTION OF CONTROL. (a) A person is   presumed to exercise a controlling influence over a money services   licensee if the person holds the power to directly or indirectly   vote not less than 10 percent of the outstanding voting shares or   voting interests of a money services licensee or person in control   of a money services licensee.          (b)  The presumption under Subsection (a) may be rebutted by   evidence that the person who is presumed to exercise a controlling   influence under Subsection (a) is a passive investor.          (c)  For purposes of determining the percentage of a money   services licensee controlled by a person, the person's interest   shall be aggregated with the interest of any person:                (1)  related within the second degree of consanguinity   or affinity, other than a person's grandparent or grandchild; or                (2)  who shares the person's home.   SUBCHAPTER C. MONEY SERVICES LICENSES          Sec. 152.101.  MONEY TRANSMISSION LICENSE REQUIRED. (a) A   person may not engage in the business of money transmission or   advertise, solicit, or hold itself out as engaging in the business   of money transmission unless the person is licensed under this   chapter.          (b)  For the 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.          (c)  Subsection (a) does not apply to a person who:                (1)  is an authorized delegate of a money transmission   licensee acting within the scope of authority conferred by a   written contract with the licensee;                (2)  is exempt under Section 152.004 and does not   engage in money transmission outside the scope of the applicable   exemption; or                (3)  has been granted an exemption under Subsection   (e).          (d)  A license issued under Section 152.106 is not   transferable or assignable.          (e)  On receiving an application and finding that the   exemption is in the public interest, the commissioner may exempt a   person who:                (1)  incidentally engages in the business of money   transmission only to the extent reasonable and necessary to   accomplish a primary business objective unrelated to the business   of money transmission;                (2)  does not advertise or offer money transmission to   the public except to the extent reasonable and necessary to fairly   advertise or offer the person's primary business services; and                (3)  transmits money without a fee as an inducement for   customer participation in the person's primary business.          (f)  In accordance with the investigation provisions of this   chapter, the commissioner may examine a person to verify the   person's exempt status under Subsection (e).          Sec. 152.102.  CURRENCY EXCHANGE LICENSE REQUIRED. (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 is licensed under this chapter.          (b)  For the purposes of this chapter, a person engages in   the business of currency exchange services if the person receives   compensation or expects to receive compensation, directly or   indirectly, for conducting currency exchange services.          (c)  Subsection (a) does not apply to a person who:                (1)  is a money transmission licensee;                (2)  is an authorized delegate of a money transmission   licensee acting within the scope of authority conferred by a   written contract with the licensee;                (3)  is exempt under Section 152.004 and does not   engage in currency exchange services outside the scope of the   applicable exemption; or                (4)  has been granted an exemption under Subsection   (e).          (d)  A license issued under Section 152.106 is not   transferable or assignable.          (e)  On receiving an application and finding that the   exemption is in the public interest, the commissioner may exempt a   retailer, wholesaler, or service provider that in the ordinary   course of business accepts currency of a foreign country or   government as payment for goods or services, unless:                (1)  the value of the goods or services purchased in a   single transaction with the retailer, wholesaler, or service   provider exceeds $10,000;                (2)  the change given or made as a result of the   transaction with the retailer, wholesaler, or service provider   exceeds $100;                (3)  the person attempts to structure the transaction   in a manner that evades the licensing requirements of this chapter   or avoids using a money services licensee under this chapter;                (4)  the person is engaged in the business of cashing   checks, drafts, or other payment instruments for consideration and   is not otherwise exempt from licensing under this chapter; or                (5)  the person would not be eligible for a license   under this chapter.          (f)  In accordance with the investigation provisions of this   chapter, the commissioner may examine a person to verify the   person's exempt status under Subsection (e).          (g)  A currency exchange licensee may engage in the business   of currency exchange services at one or more locations in this state   directly or indirectly owned by the licensee under a single   license.          Sec. 152.103.  CONSISTENT STATE LICENSING. (a) The   commissioner may require that a person submit through the NMLS 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.          (b)  The commissioner may use the NMLS 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 152.104(a)(10) or (c)(13).          Sec. 152.104.  APPLICATION FOR MONEY SERVICES LICENSE. (a)   An applicant for a money services license shall apply in a form and   medium prescribed by the commissioner. The application must   contain:                (1)  the legal name and residential and business   addresses of the applicant and any fictitious or trade name used by   the applicant in conducting the applicant's business;                (2)  a list of any criminal convictions of the   applicant and any material litigation in which the applicant has   been involved in the 10-year period preceding the submission of the   application;                (3)  a description of any money services previously   provided by the applicant and the money services that the applicant   seeks to provide in this state;                (4)  a list of the applicant's proposed authorized   delegates and the locations in this state where the applicant and   the applicant's authorized delegates propose to engage in money   transmission, if applicable;                (5)  a list of other states in which the applicant is   licensed to engage in money services, and any license revocations,   suspensions, or other disciplinary action taken against the   applicant in another state;                (6)  information concerning any bankruptcy or   receivership proceedings affecting the applicant or a person in   control of the applicant;                (7)  a sample form of contract for authorized   delegates, if applicable;                (8)  a sample form of payment instrument or stored   value, if applicable;                (9)  the name and address of any federally insured   depository financial institution through which the applicant plans   to conduct licensable activity; and                (10)  any other information the commissioner   reasonably requires with respect to the applicant.          (b)  A form adopted by the commissioner under Subsection (a)   must contain content as provided by commission rule or instruction   or procedure of the commissioner and may be changed or updated by   the commissioner in accordance with applicable law in order to   carry out the purposes of this chapter and maintain consistency   with NMLS licensing standards and practices.          (c)  If an applicant is a corporation, limited liability   company, partnership, or other legal entity, the applicant shall   also provide:                (1)  the date of the applicant's incorporation or   formation and state or country of incorporation or formation;                (2)  a certificate of good standing from the state or   country in which the applicant is incorporated or formed, if   applicable;                (3)  a brief description of the structure or   organization of the applicant, including any parent entity or   subsidiary of the applicant, and whether any parent entity or   subsidiary is publicly traded;                (4)  the legal name, any fictitious or trade name, all   business and residential addresses, and the employment, as   applicable, of each key individual and person in control of the   applicant in the 10-year period preceding the submission of the   application;                (5)  a list of any criminal convictions and material   litigation in which a person in control of the applicant that is not   an individual has been involved in the 10-year period preceding the   submission of the application;                (6)  if the application is for a money transmission   license, a copy of audited financial statements of the applicant   for the most recent fiscal year and for the two-year period   preceding the submission of the application;                (7)  if the application is for a currency exchange   license, or if the application is for a money transmission license   and the commissioner otherwise determines it to be acceptable,   certified unaudited financial statements for the most recent fiscal   year or other period acceptable to the commissioner;                (8)  a certified copy of unaudited financial statements   of the applicant for the most recent fiscal quarter;                (9)  if the applicant is a publicly traded corporation,   a copy of the most recent report filed with the United States   Securities and Exchange Commission under Section 13, Securities   Exchange Act of 1934 (15 U.S.C. Section 78m);                (10)  if the applicant is a wholly owned subsidiary of a   corporation publicly traded in the United States, a copy of audited   financial statements for the parent corporation for the most recent   fiscal year or a copy of the parent corporation's most recent report   filed under Section 13, Securities Exchange Act of 1934 (15 U.S.C.   Section 78m);                (11)  if the applicant is a corporation publicly traded   outside the United States, a copy of documentation similar to the   documentation required under Subdivision (10) filed with the   regulator of the parent corporation's domicile outside the United   States;                (12)  the name and address of the applicant's   registered agent in this state; and                (13)  any other information the commissioner   reasonably requires with respect to the applicant.          (d)  At the time an application for a license under this   section is submitted, an applicant must file with the department a   nonrefundable application fee in the amount established by   commission rule.          (e)  The commissioner may waive one or more requirements of   Subsections (a) and (c) or permit an applicant to submit other   information in lieu of the information required by this section.          Sec. 152.105.  INFORMATION REQUIREMENTS FOR CERTAIN   INDIVIDUALS. (a) In addition to the requirements of Section   152.104, an applicant shall provide additional information to the   commissioner if the applicant is an individual who:                (1)  is in control of a money services licensee or   applicant;                (2)  seeks to acquire control of a money services   licensee; or                (3)  is a key individual.          (b)  Additional information provided to the commissioner by   an individual under this section must include the individual's:                (1)  fingerprints for submission to the Federal Bureau   of Investigation and the commissioner for purposes of a national   criminal history background check unless the person currently   resides outside of the United States and has resided outside of the   United States for the 10-year period preceding the submission of   the application; and                (2)  personal history and experience, in a form and   medium prescribed by the commissioner, that contains the following   information:                      (A)  if the individual has a social security   number, an independent credit report for the individual from a   consumer reporting agency;                      (B)  information related to any criminal   convictions or pending charges against the individual; and                      (C)  information related to any regulatory or   administrative action and any civil litigation against the   individual involving claims of fraud, misrepresentation,   conversion, mismanagement of funds, breach of fiduciary duty, or   breach of contract.          (c)  If an individual to whom this section applies has   resided outside of the United States at any time in the preceding 10   years, the individual shall also provide an investigative   background report prepared by an independent search firm that at a   minimum:                (1)  demonstrates that the search firm:                      (A)  has sufficient knowledge and resources and   employs accepted and reasonable methodologies to conduct the   research of the background report; and                      (B)  is not affiliated with and does not have an   interest with the individual being researched; and                (2)  is written in the English language and contains   the following information:                      (A)  if available in the individual's current   jurisdiction of residency, a comprehensive credit report, or any   equivalent information obtained or generated by the independent   search firm to accomplish a report, including a search of the court   data in the countries, provinces, states, cities, towns, and   contiguous areas where the individual resided and worked;                      (B)  criminal records information for the past 10   years, including felonies, misdemeanors, or similar convictions   for violations of law in the countries, provinces, states, cities,   towns, and contiguous areas where the individual resided and   worked;                      (C)  employment history;                      (D)  media history, including an electronic   search of national and local publications, wire services, and   business applications; and                      (E)  financial services-related regulatory   history, including money transmission services, securities,   banking, insurance, and mortgage-related industries.          Sec. 152.106.  ISSUANCE OF LICENSE. (a) An application for   a license under this chapter that appears to include all the items   and address all of the matters that are required under Sections   152.104 and 152.105 is considered complete and the commissioner   shall promptly notify the applicant in writing of the date on which   the application is determined to be complete.          (b)  The commissioner shall approve or deny the application   not later than the 120th day after the date the application is   determined to be complete under Subsection (a). If the application   is not approved or denied within 120 days after the completion date,   the application is approved and the license takes effect on the   first business day after expiration of the 120-day period. The   commissioner may extend the application approval period for good   cause.          (c)  A determination by the commissioner under Subsection   (a) that an application is complete and is accepted for processing   is not an assessment of the substance of the application or of the   sufficiency of the information provided, and means only that the   application, on its face, appears to include all of the items,   including the national criminal history background check response   from the Federal Bureau of Investigation under Section 152.105(b),   and address all of the matters that are required under Sections   152.104 and 152.105.          (d)  When an application is filed and considered complete   under this section, the commissioner shall investigate the   applicant's financial condition and responsibility, financial and   business experience, character, and general fitness. The   commissioner may conduct an on-site investigation of the applicant,   the reasonable cost of which the applicant must pay.          (e)  The commissioner shall issue a license to an applicant   under this section if the commissioner finds that:                (1)  the applicant has complied with Sections 152.104   and 152.105; and                (2)  it is in the interest of the public to permit the   applicant to engage in money transmission services, currency   exchange services, or both, considering:                      (A)  the financial condition and responsibility,   financial and business experience, competence, character, and   general fitness of the applicant; and                      (B)  the experience, competence, character, and   general fitness of the key individuals and persons in control of the   applicant.          (f)  If an applicant participates in or is subject to a   multistate licensing process:                (1)  the commissioner may accept the investigation   results of a lead investigative state for the purpose of Subsection   (d) if the lead investigative state has sufficient staffing,   expertise, and minimum standards; or                (2)  if this state is a lead investigative state, the   commissioner may investigate the applicant under Subsection (d) and   the time frames established by agreement through the multistate   licensing process, provided that the time frame complies with the   period in Subsection (b).          (g)  If the commissioner finds that the applicant fails to   meet 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. The applicant may appeal the denial by   filing a written request for a hearing with the commissioner not   later than the 30th day after the date the notice is mailed. 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. The hearing is considered a   contested case hearing and is subject to Section 152.451.          (h)  Except as provided by Subsection (b), the license takes   effect on the day the application is approved.          Sec. 152.107.  MAINTENANCE OF LICENSE. (a) If a money   services licensee does not continue to meet the qualifications or   satisfy the requirements that apply to an applicant for a money   services license, the commissioner may suspend or revoke the   licensee's license in accordance with the procedures established by   this chapter or other applicable state law governing suspension or   revocation.          (b)  An applicant for a money transmission license must   demonstrate that it meets or will meet the requirements in Sections   152.351, 152.352, 152.354, and 152.355. A money transmission   licensee must at all times continue to meet the requirements of   those sections.          (c)  An applicant for a currency exchange license must   demonstrate that it meets or will meet the requirements in Sections   152.353, 152.354, and 152.355. A currency exchange licensee must   at all times continue to meet the requirements of those sections.          (d)  In addition to complying with the requirements of   Subsection (a) and, as applicable, Subsection (b) or (c), a money   services licensee must annually:                (1)  pay a license fee in an amount established by   commission rule; and                (2)  submit a report under oath in the form and medium   prescribed by the commissioner that contains the following   information:                      (A)  if the licensee is a money transmission   licensee, an audited, unconsolidated financial statement dated as   of the last day of the money transmission licensee's fiscal year   that ended in the immediately preceding calendar year;                      (B)  if the licensee is a currency exchange   licensee, a financial statement, audited or unaudited, dated as of   the last day of the currency exchange licensee'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:                            (i)  the security, net worth, permissible   investments, and other requirements the money services licensee   must satisfy; and                            (ii)  whether the money services licensee   continues to meet the qualifications and requirements for   licensure.          (e)  If the department does not receive a money services   licensee's annual license fee and complete annual report under   Subsection (d) on or before the due date prescribed by the   commissioner under this section, the commissioner shall notify the   money services licensee in writing that the money services licensee   must:                (1)  submit the report and pay the license fee not later   than the 45th day after the due date prescribed by the commissioner;   and                (2)  pay a late fee, in an amount established by   commission rule and not subject to appeal, for each business day   after the due date specified by the commissioner that the   commissioner does not receive the completed report and license fee.          (f)  If the money services licensee fails to submit the   completed annual report and pay the annual license fee and any late   fee due within the time prescribed by Subsection (e), the license   expires, and the money services licensee must cease and desist from   engaging in the business of money services as of that date. The   expiration of a license under this section is not subject to appeal.          (g)  On timely receipt of a money services licensee'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 money services   licensee. On completion of the review and investigation, if any,   the commissioner may:                (1)  impose conditions on the license the commissioner   considers reasonably necessary or appropriate; or                (2)  suspend or revoke the license on the basis of a   ground specified in Section 152.403.          (h)  On written application and for good cause shown, the   commissioner may extend the due date for filing the annual license   fee and annual report required under this section.          (i)  The holder, principal, or person in control of the   holder of a license issued under this chapter that has expired or   that the holder has surrendered under Section 152.108 that wishes   to conduct activities for which a license is required under this   chapter must file a new license application under Section 152.104   and satisfy all requirements for licensure that apply at the time   the new application is filed.          Sec. 152.108.  SURRENDER OF LICENSE. (a) A money services   licensee may surrender the licensee's license by delivering the   original license to the commissioner along with a written notice of   surrender that includes the location at which the licensee'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.          (b)  A money services licensee shall surrender the   licensee's license under this section if the licensee becomes   ineligible for a license issued under this chapter.          (c)  The surrender of a license does not reduce or eliminate   a money services licensee'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 revoke or suspend a license, assess an administrative penalty,   order the payment of restitution, or exercise any other authority   under this chapter. Further, the surrender of a license does not   release the security required of a licensee under Section 152.352   or 152.353.          Sec. 152.109.  REFUND OF FEE OR COST PAID BY MONEY SERVICES   LICENSEE. A fee or cost paid by a money services licensee under   this chapter is not refundable.   SUBCHAPTER D. ACQUISITION OF CONTROL AND CHANGE OF KEY INDIVIDUAL          Sec. 152.151.  ACQUISITION OF CONTROL. (a) A person or   group of persons acting in concert seeking to acquire control of a   money services licensee must obtain written approval from the   commissioner before acquiring control. An individual is not   considered to acquire control of a money services licensee and is   not subject to the acquisition of control provisions of this   subchapter if that individual becomes a key individual in the   ordinary course of business.          (b)  A person or group of persons acting in concert seeking   to acquire control of a money services licensee shall, in   cooperation with the licensee, submit:                (1)  an application in a form and medium prescribed by   the commissioner; and                (2)  a nonrefundable fee in the amount established by   commission rule.          (c)  On request, the commissioner may permit a money services   licensee or the person or group of persons acting in concert to   submit some or all information required by the commissioner under   Subsection (b)(1) without using the NMLS.          (d)  The application required by Subsection (b)(1) must   include information required by Section 152.105 for any new key   individual that has not previously completed the requirements of   Section 152.105 for the money services licensee.          (e)  When an application for acquisition of control under   this section appears to include all the items and address all of the   matters that are required, the application is considered complete   and the commissioner shall promptly notify the applicant in writing   of the date on which the application was determined to be complete.          (f)  The commissioner shall approve or deny the application   not later than the 60th day after the completion date. If the   application is not approved or denied before the 61st day after the   completion date, the application is approved and the person or   group of persons acting in concert are not prohibited from   acquiring control. The commissioner may extend the application   period for good cause.          (g)  A determination by the commissioner under Subsection   (e) that an application is complete and is accepted for processing   is not an assessment of the substance of the application or of the   sufficiency of the information provided. That determination means   only that the application, on its face, appears to include all of   the items and address all of the matters that are required under   Subsection (b).          (h)  When an application is filed and considered complete   under Subsection (e), the commissioner shall investigate the   financial condition and responsibility, financial and business   experience, character, and general fitness of the person or group   of persons acting in concert seeking to acquire control.          (i)  The commissioner shall approve an acquisition of   control under this section if the commissioner finds that:                (1)  the requirements of Subsections (b) and (d) have   been met, as applicable; and                (2)  it is in the interest of the public to permit the   person or group of persons acting in concert to control the money   services licensee, considering:                      (A)  the financial condition and responsibility,   financial and business experience, competence, character, and   general fitness of the person or group of persons acting in concert   seeking to acquire control; and                      (B)  the experience, competence, character, and   general fitness of the key individuals and persons that would be in   control of the money services licensee after the acquisition of   control.          (j)  If an applicant participates in or is subject to a   multistate licensing process:                (1)  the commissioner may accept the investigation   results of a lead investigative state for the purpose of Subsection   (h) if the lead investigative state has sufficient staffing,   expertise, and minimum standards; or                (2)  if this state is a lead investigative state, the   commissioner may investigate the applicant under Subsection (h) and   the time frames established by agreement through the multistate   licensing process, provided that the time frame complies with the   period in Subsection (f).          (k)  If the commissioner determines that a proposed person in   control fails to meet the qualifications or satisfy the   requirements of this chapter, the commissioner shall inform the   money services licensee and the proposed person in control in   writing that the application is denied and state the reasons for the   denial. The money services licensee or the proposed person in   control may appeal the denial by filing a written request for a   hearing with the commissioner not later than the 30th day after the   date the notice is mailed. 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.   The hearing is considered a contested case hearing and is subject to   Section 152.451.          (l)  The requirements of Subsections (a) and (b) do not apply   to:                (1)  a person who acts as a proxy for the sole purpose   of voting at a designated meeting of the shareholders or holders of   voting shares or voting interests of a money services licensee or a   person in control of a money services licensee;                (2)  a person who acquires control of a money services   licensee by devise or descent;                (3)  a person who acquires control of a money services   licensee as a personal representative, custodian, guardian,   conservator, or trustee, or as an officer appointed by a court of   competent jurisdiction or by operation of law;                (4)  a person who is exempt under Section 152.004(7);                (5)  a person who the commissioner determines is not   subject to Subsection (a) based on the public interest;                (6)  a public offering of securities of a money   services licensee or a person in control of a money services   licensee; or                (7)  an internal reorganization of a person in control   of the money services licensee resulting in the same person   remaining in control of the licensee.          (m)  A person to whom Subsections (a) and (b) do not apply   under Subsection (l)(2), (3), (4), (6), or (7) shall, in   cooperation with the money services licensee, notify the   commissioner not later than the 15th day after the date of the   acquisition of control of the person's grounds for not complying   with Subsection (a) or (b).          Sec. 152.152.  STREAMLINED ACQUISITION OF CONTROL. (a) The   requirements of Section 152.151 do not apply to a person who has   complied with and received approval to engage in money services   under this chapter or was identified as a person in control in a   previous application filed with and approved by the commissioner or   by an MSB-accredited state under a multistate licensing process,   provided that:                (1)  the person has not:                      (A)  had a money services license revoked or   suspended; or                      (B)  controlled a money services licensee that has   had a money services license revoked or suspended while the person   was in control of the licensee in the previous five years;                (2)  if the person is a money services licensee, the   person:                      (A)  is well managed; and                      (B)  if a rating for compliance has been given to   the person by an MSB-accredited state, received a satisfactory   rating in its most recent examination;                (3)  in the case of a money transmission licensee, the   person to be acquired and the person acquiring control are both   money transmission licensees projected to meet the requirements of   Sections 152.351, 152.352, 152.354, and 152.355 after the   acquisition of control is completed;                (4)  in the case of a currency exchange licensee, the   person to be acquired and the person acquiring control are both   currency exchange licensees projected to meet the requirements of   Sections 152.353 and 152.354 after the acquisition of control is   completed;                (5)  the money services licensee to be acquired will   not implement any material changes to the licensee's business plan   as a result of the acquisition of control, and if the person   acquiring control is a money services licensee, the acquiring   licensee also will not implement any material changes to its   business plan as a result of the acquisition of control; and                (6)  the person provides notice of the acquisition in   cooperation with the money services licensee and attests to   Subdivisions (1) through (5), as applicable, in a form and medium   prescribed by the commissioner.          (b)  If the notice under Subsection (a)(6) is not disapproved   before the 31st day after the date on which the notice was   determined to be complete, the notice is considered approved.          (c)  Before filing an application for approval to acquire   control of a money services licensee, a person may request in   writing a determination from the commissioner as to whether the   person would be considered a person in control of a money services   licensee on consummation of a proposed transaction. If the   commissioner determines that the person would not be a person in   control of a money services licensee, the proposed transaction is   not subject to the requirements of Section 152.151.          (d)  If a multistate licensing process includes a   determination under Subsection (c) and an applicant participates in   or is subject to the multistate licensing process:                (1)  the commissioner may accept the control   determination of a lead investigative state with sufficient   staffing, expertise, and minimum standards for the purpose of   Subsection (c); or                (2)  if this state is a lead investigative state, the   commissioner may investigate the applicant under Subsection (c) and   the time frames established by agreement through the multistate   licensing process.          Sec. 152.153.  NOTICE AND INFORMATION REQUIREMENTS FOR   CHANGE OF KEY INDIVIDUALS. (a) A money services licensee adding or   replacing a key individual shall provide:                (1)  notice in a manner prescribed by the commissioner   not later than the 15th day after the effective date of the key   individual's appointment; and                (2)  information as required by Section 152.105 not   later than the 45th day after that effective date.          (b)  Not later than the 90th day after the date on which   notice provided under Subsection (a) is determined to be complete,   the commissioner may issue a notice of disapproval of a key   individual if it would not be in the best interests of the public or   the customers of the money services licensee to permit the   individual to be a key individual of the licensee, considering the   competence, experience, character, or integrity of the individual.          (c)  A notice of disapproval shall be sent to the money   services licensee and the disapproved individual and must contain a   statement of the basis for disapproval. A money services licensee   may appeal a notice of disapproval by filing a written request for a   hearing with the commissioner not later than the 30th day after the   date the notice is mailed. 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.   The hearing is considered a contested case hearing and is subject to   Section 152.451.          (d)  If the notice provided under Subsection (a) is not   disapproved before the 91st day after the date on which the notice   is determined to be complete, the key individual is considered   approved.          (e)  If a multistate licensing process includes a key   individual notice review and disapproval process under this section   and the money services licensee participates in or is subject to the   multistate licensing process:                (1)  the commissioner may accept the determination of   another state if the investigating state has sufficient staffing,   expertise, and minimum standards for the purposes of this section;   or                (2)  if this state is a lead investigative state, the   commissioner may investigate the applicant in the same manner as   for a determination under Subsection (b) and in accordance with the   time frames established by agreement through the multistate   licensing process.   SUBCHAPTER E. REPORTING AND RECORDS          Sec. 152.201.  MONEY TRANSMISSION REPORT. (a) Each money   transmission licensee shall submit a report of condition not later   than the 45th day after the end of the calendar quarter, or within   an extended time as the commissioner may prescribe.          (b)  The report of condition must include:                (1)  the licensee's financial information;                (2)  nationwide and state-specific money transmission   services transaction information in every jurisdiction in the   United States where the licensee is licensed to engage in money   transmission;                (3)  a report on the licensee's permissible   investments;                (4)  transaction destination country reporting for   money received for transmission, if applicable; and                (5)  any other information the commissioner reasonably   requires with respect to the licensee.          (c)  The commissioner may:                (1)  use the NMLS for the submission of the report   required by this section; and                (2)  change or update the requirements of this section   as necessary to carry out the purposes of this chapter and maintain   consistency with NMLS reporting.          (d)  The information required by Subsection (b)(4) may only   be included in a report of condition submitted not later than the   45th day after the end of the fourth calendar quarter.          Sec. 152.202.  CURRENCY EXCHANGE REPORT. (a) A currency   exchange licensee shall submit:                (1)  the annual report required by Section   152.107(d)(2), including a financial statement that may be audited   or unaudited and that is dated as of the last day of the currency   exchange licensee's fiscal year that ended in the immediately   preceding calendar year;                (2)  a quarterly interim financial statement and   transaction report that reflects the licensee's financial   condition and currency exchange services 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 end 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.          (b)  A currency exchange licensee shall file the statements   and reports required under this section with the commissioner as   required by this chapter, by commission rule, or as requested by the   commissioner.          (c)  On written application and for good cause shown, the   commissioner may extend the time for preparing or filing a   statement or report required under this section.          Sec. 152.203.  FINANCIAL STATEMENTS. (a) A money services   licensee shall, not later than the 90th day after the end of each   fiscal year, or within an extended time prescribed by the   commissioner, file with the commissioner:                (1)  for a money transmission licensee, an audited   unconsolidated financial statement of the licensee for the fiscal   year prepared in accordance with United States generally accepted   accounting principles;                (2)  for a currency exchange licensee, a financial   statement, audited or unaudited, dated as of the last day of the   licensee's fiscal year that ended in the immediately preceding   calendar year; and                (3)  any other information as the commissioner may   reasonably require.          (b)  A financial statement required by Subsection (a)(1)   must be prepared by an independent certified public accountant or   independent public accountant who is satisfactory to the   commissioner.          (c)  An audited financial statement required by Subsection   (a) must include or be accompanied by a certificate of opinion of   the independent certified public accountant or independent public   accountant that is satisfactory in form and content to the   commissioner. If the certificate of opinion is qualified, the   commissioner may order the money services licensee to take any   action the commissioner finds necessary to enable the independent   certified public accountant or independent public accountant to   remove the qualification.          Sec. 152.204.  AUTHORIZED DELEGATE REPORTING. (a) A money   transmission licensee shall submit a report of authorized delegates   not later than the 45th day after the end of each calendar quarter.   The commissioner may use the NMLS for the submission of the report   required by this section if NMLS functionality is consistent with   the requirements of this section.          (b)  The authorized delegate report must include for each   authorized delegate:                (1)  the authorized delegate's legal name;                (2)  the authorized delegate's taxpayer employer   identification number;                (3)  the authorized delegate's principal provider   identifier;                (4)  the authorized delegate's physical address;                (5)  the authorized delegate's mailing address;                (6)  any business the authorized delegate conducts in   other states;                (7)  any fictitious or trade name the authorized   delegate uses;                (8)  a contact person name, phone number, and e-mail;                (9)  a start date as the money transmission licensee's   authorized delegate;                (10)  an end date as the money transmission licensee's   authorized delegate, if applicable; and                (11)  any other information the commissioner   reasonably requires with respect to the authorized delegate.          Sec. 152.205.  REPORTS OF CERTAIN EVENTS. (a) A money   services licensee shall file a report with the commissioner not   later than the first business day after the licensee has reason to   know of:                (1)  the filing of a petition by or against the licensee   under the United States Bankruptcy Code (11 U.S.C. Sections   101-1532) for bankruptcy or reorganization;                (2)  the filing of a petition by or against the licensee   for receivership, the commencement of any other judicial or   administrative proceeding for the licensee's dissolution or   reorganization, or the making of a general assignment for the   benefit of the licensee's creditors; or                (3)  the commencement of a proceeding to revoke or   suspend the licensee's license in a state or country in which the   licensee engages in or is licensed to engage in money services   business.          (b)  A money services licensee shall file a report with the   commissioner not later than the third business day after the   licensee has reason to know of the occurrence of a felony charge or   conviction of:                (1)  the licensee or a key individual;                (2)  a person in control of the licensee; or                (3)  an authorized delegate.          Sec. 152.206.  BANK SECRECY ACT REPORTS. A money services   licensee and an authorized delegate shall file all reports required   by federal currency reporting, record keeping, and suspicious   activity reporting requirements as provided by the Bank Secrecy Act   and other federal and state laws relating to money laundering. The   timely filing of a complete and accurate report required under this   section with the appropriate federal agency is considered compliant   with the requirements of this section.          Sec. 152.207.  RECORDS. (a) A money services licensee shall   maintain the following records for determining its compliance with   this chapter for at least five years:                (1)  a general ledger posted at least monthly   containing all asset, liability, capital, income, and expense   accounts;                (2)  bank statements and bank reconciliation records;                (3)  for a money transmission licensee:                      (A)  records of outstanding money transmission   obligations;                      (B)  records of each outstanding money   transmission obligation paid within the five-year period;                      (C)  records of each outstanding money   transmission obligation sold; and                      (D)  a list of the last known names and addresses   of all of the licensee's authorized delegates;                (4)  for a currency exchange licensee, a record of each   currency exchange transaction; and                (5)  any other records the commissioner reasonably   requires by rule.          (b)  The records required to be maintained by Subsection   (a)(3)(C) may be maintained in any form of record.          (c)  Records required to be maintained by Subsection (a) may   be maintained outside this state if they are made accessible to the   commissioner not later than the seventh business day after the   commissioner sends notice in writing.          (d)  All records maintained by a money services licensee as   required by this section are open to examination by the   commissioner under Section 152.057(a).   SUBCHAPTER F. AUTHORIZED DELEGATES          Sec. 152.251.  LIABILITY OF MONEY TRANSMISSION LICENSEE. A   money transmission licensee is liable for the payment of all money   or monetary value received for transmission directly or by an   authorized delegate appointed under this subchapter.          Sec. 152.252.  RELATIONSHIP BETWEEN MONEY TRANSMISSION   LICENSEE AND AUTHORIZED DELEGATE. (a) In this section, "remit"   means to make a direct payment of money to a money transmission   licensee or the licensee's representative authorized to receive   money or to deposit money in a bank in an account specified by the   licensee.          (b)  Before a money transmission licensee may conduct   business through an authorized delegate or may allow a person to act   as the licensee's authorized delegate, the licensee must:                (1)  adopt, and update as necessary, written policies   and procedures reasonably designed to ensure that the licensee's   authorized delegate complies with applicable state and federal law;                (2)  enter into a written contract appointing an   authorized delegate that complies with Subsection (d); and                (3)  conduct a reasonable risk-based background   investigation sufficient for the licensee to determine whether the   authorized delegate has complied with and will likely comply with   applicable state and federal law.          (c)  An authorized delegate shall operate in full compliance   with this chapter.          (d)  The written contract required by Subsection (b)(2) must   be signed by the money transmission licensee and the authorized   delegate and must, at a minimum:                (1)  appoint the person signing the contract as the   licensee's authorized delegate with the authority to conduct money   transmission services on behalf of the licensee;                (2)  provide the nature and scope of the relationship   between the licensee and the authorized delegate and the respective   rights and responsibilities of the parties;                (3)  require the authorized delegate to agree to fully   comply with all applicable state and federal laws, rules, and   regulations pertaining to money transmission services, including   this chapter and regulations implementing this chapter, relevant   provisions of the Bank Secrecy Act, and the Patriot Act;                (4)  require the authorized delegate to remit and   handle money and monetary value in accordance with the terms of the   contract between the licensee and the authorized delegate;                (5)  impose a trust on money and monetary value net of   fees received for money transmission for the benefit of the   licensee;                (6)  require the authorized delegate to prepare and   maintain records as required by this chapter or regulations   implementing this chapter, or as reasonably requested by the   commissioner;                (7)  acknowledge that the authorized delegate consents   to examination or investigation by the commissioner;                (8)  state that the licensee is subject to regulation   by the commissioner and that, as part of that regulation, the   commissioner may suspend or revoke an authorized delegate   designation or require the licensee to terminate an authorized   delegate designation; and                (9)  acknowledge receipt of the written policies and   procedures required under Subsection (b)(1).          (e)  If a money transmission licensee's license is   suspended, revoked, surrendered, or expired, the licensee must, not   later than the fifth business day after the date the licensee's   license is suspended, revoked, surrendered, or expired, provide   documentation to the commissioner that the licensee has notified   all applicable authorized delegates of the licensee whose names are   in a record filed with the commissioner of the suspension,   revocation, surrender, or expiration of a license. On suspension,   revocation, surrender, or expiration of a license, applicable   authorized delegates shall immediately cease to provide money   transmission services as an authorized delegate of the money   transmission licensee.          (f)  An authorized delegate of a money transmission licensee   holds in trust for the benefit of the licensee all money net of fees   received from money transmission. If an authorized delegate   commingles any funds received from money transmission with any   other funds or property owned or controlled by the authorized   delegate, all commingled funds and other property shall be   considered held in trust in favor of the money transmission   licensee in an amount equal to the amount of money net of fees   received from money transmission.          (g)  An authorized delegate may not use a subdelegate to   conduct money transmission on behalf of a money transmission   licensee.          Sec. 152.253.  DISCLOSURE REQUIREMENTS. (a) A money   transmission licensee's name and mailing address or telephone   number must be provided to the purchaser in connection with each   money transmission transaction conducted by the licensee directly   or through an authorized delegate.          (b)  A money transmission licensee receiving currency or an   instrument payable in currency for transmission shall comply with   Chapter 278.          Sec. 152.254.  UNAUTHORIZED ACTIVITIES. A person may not   engage in the business of money transmission on behalf of a person   not licensed under this chapter or not exempt under Section   152.004. A person who engages in unauthorized activity provides   money transmission to the same extent as if the person were a money   transmission licensee, and shall be jointly and severally liable   with the unlicensed or nonexempt person. Any business for which a   license is required under this chapter that is conducted by an   authorized delegate outside the scope of authority conferred in the   contract between the authorized delegate and the licensee is   unlicensed activity.   SUBCHAPTER G. TIMELY TRANSMISSION, REFUNDS, AND DISCLOSURES BY   MONEY TRANSMISSION LICENSEE          Sec. 152.301.  TIMELY TRANSMISSION. (a) A money   transmission licensee shall forward all money received for money   transmission in accordance with the terms of the agreement between   the licensee and the sender unless the licensee has a reasonable   belief or a reasonable basis to believe that the sender may be a   victim of fraud or that a crime or violation of law, rule, or   regulation has occurred, is occurring, or may occur.          (b)  If a money transmission licensee fails to forward money   received for money transmission in accordance with this section,   the licensee must respond to inquiries by the sender with the reason   for the failure unless providing a response would violate a state or   federal law, rule, or regulation.          Sec. 152.302.  REFUNDS. (a) This section does not apply to   money received for money transmission that is:                (1)  subject to the federal requirements for remittance   transfers under 12 C.F.R. Part 1005, Subpart B; or                (2)  under a written agreement between a money   transmission licensee and a payee to process payments for goods or   services provided by the payee.          (b)  A money transmission licensee shall refund any and all   money received for money transmission services to the sender not   later than the 10th day after the date of receipt of the sender's   written request for a refund unless:                (1)  the money has been forwarded not later than the   10th day after the date on which the money was received for   transmission;                (2)  instructions have been given committing an   equivalent amount of money to the person designated by the sender   not later than the 10th day after the date on which the money was   received for transmission;                (3)  an agreement between the licensee and the sender   instructs the licensee to forward the money at a time that is later   than the 10th day after the date on which the money was received for   transmission;                (4)  the refund is requested for a transaction that the   licensee has not completed based on a reasonable belief or a   reasonable basis to believe that a crime or violation of law, rule,   or regulation has occurred, is occurring, or may occur; or                (5)  the refund request does not enable a money   transmission licensee to identify:                      (A)  the sender's name and address or telephone   number; or                      (B)  the particular transaction to be refunded in   the event the sender has multiple transactions outstanding.          (c)  If funds have not yet been forwarded in accordance with   the terms of an agreement between a money transmission licensee and   a sender under Subsection (b)(3), the licensee shall issue a refund   in accordance with the other provisions of this section.          Sec. 152.303.  RECEIPTS. (a) This section does not apply   to:                (1)  money received for money transmission subject to   the federal requirements for remittance transfers under 12 C.F.R.   Part 1005, Subpart B;                (2)  money received for money transmission that is not   primarily for personal, family, or household purposes;                (3)  money received for money transmission under a   written agreement between a money transmission licensee and a payee   to process payments for goods or services provided by the payee; or                (4)  payroll processing services.          (b)  In this section, "receipt" means a paper receipt,   electronic record, or other written confirmation.          (c)  For a transaction conducted in person, a receipt may be   provided electronically if the sender requests or agrees to receive   an electronic receipt. For a transaction conducted electronically   or by phone, a receipt may be provided electronically. All   electronic receipts shall be provided in a retainable form.          (d)  A money transmission licensee or the licensee's   authorized delegate shall provide the sender a receipt for money   received for money transmission services.          (e)  A receipt must contain, as applicable:                (1)  the name of the sender;                (2)  the name of the designated recipient;                (3)  the date of the transaction;                (4)  the unique transaction or identification number;                (5)  the name of the money transmission licensee, the   licensee's NMLS Unique ID, the licensee's business address, and the   licensee's customer service telephone number;                (6)  the amount of the transaction in United States   dollars;                (7)  any fee charged by the money transmission licensee   to the sender for the transaction; and                (8)  any taxes collected by the money transmission   licensee from the sender for the transaction.          (f)  The receipt required by this section must be in English   and in a language other than English if the money transmission   licensee or authorized delegate principally uses that language to   advertise, solicit, or negotiate, either orally or in writing, for   a transaction conducted in person, electronically, or by phone.          Sec. 152.304.  DISCLOSURES FOR PAYROLL PROCESSING SERVICES.   (a) A money transmission licensee that provides payroll processing   services shall:                (1)  issue reports to clients detailing client payroll   obligations in advance of the payroll funds being deducted from an   account; and                (2)  make available worker pay stubs or an equivalent   statement to workers.          (b)  Subsection (a) does not apply to a money transmission   licensee providing payroll processing services where the   licensee's client designates the intended recipients to the   licensee and is responsible for providing the disclosures required   by Subsection (a)(2).   SUBCHAPTER H. PRUDENTIAL STANDARDS          Sec. 152.351.  NET WORTH OF MONEY TRANSMISSION LICENSEE.   (a) A money transmission licensee under this chapter shall   maintain at all times a tangible net worth in an amount not less   than:                (1)  for a licensee with total assets in an amount not   greater than $100 million, the greater of:                      (A)  $100,000; or                      (B)  3 percent of the value of the licensee's   total assets;                (2)  for a licensee with total assets in an amount   greater than $100 million and not greater than $1 billion, the sum   of $3 million and 2 percent of the additional assets in excess of   $100 million; and                (3)  for a licensee with total assets in an amount   greater than $1 billion, the sum of $21 million and 0.5 percent of   the additional assets in excess of $1 billion.          (b)  Tangible net worth under this section must be   demonstrated at the initial application by the applicant's most   recent audited or unaudited financial statements under Section   152.104(c)(6).          (c)  Notwithstanding other provisions of this section, the   commissioner may, for good cause shown, exempt a money transmission   licensee wholly or partly from the requirements of this section.          Sec. 152.352.  SECURITY FOR MONEY TRANSMISSION LICENSEE.   (a) A money transmission licensee shall at all times maintain   security consisting of a surety bond in a form satisfactory to the   commissioner. With the commissioner's approval, a money   transmission licensee may maintain a deposit in lieu of a bond under   this section.          (b)  The amount of the required security for a money   transmission licensee under this section is:                (1)  for a licensee with a tangible net worth in an   amount not greater than 10 percent of the licensee's total assets,   the greater of:                      (A)  $100,000; or                      (B)  100 percent of the licensee's average daily   money transmission liability in this state for the most recently   completed three-month period, up to a maximum amount of $500,000;   or                (2)  for a licensee with a tangible net worth in an   amount greater than 10 percent of the licensee's total assets,   $100,000.          (c)  A money transmission licensee that maintains a bond in   the maximum amount provided for under Subsection (b) may not be   required to calculate the licensee's average daily money   transmission liability in this state for purposes of this section.          (d)  A money transmission licensee may exceed the maximum   required bond amount under Section 152.356(a)(5).          Sec. 152.353.  SECURITY FOR CURRENCY EXCHANGE LICENSEE. (a)   A currency exchange licensee shall at all times maintain security   in the amount applicable to the licensee under this section. The   security must satisfy the requirements of and is subject to Section   152.354.          (b)  A currency exchange licensee shall maintain security in   the amount of $2,500 if the licensee 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 (e), if Subsection (b)   does not apply to a currency exchange licensee, the licensee shall   maintain security in an amount not less than the greater of:                (1)  $2,500; or                (2)  an amount equal to one percent of the licensee's   total dollar volume of currency exchange business in this state for   the preceding year.          (d)  For purposes of demonstrating prospective compliance   with this section under Section 152.107(c), an applicant for a   currency exchange license may use the applicant's projected total   dollar volume of currency exchange business in this state for the   first year of licensure to determine the amount under Subsection   (c)(2).          (e)  The maximum amount of security that may be required   under this section is $1 million.          Sec. 152.354.  ADDITIONAL SECURITY REQUIREMENTS. (a) In   addition to the requirements of Section 152.352 or 152.353, a   security under this subchapter 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 a money transmission licensee's money transmission business in   this state, incurred under, subject to, or by virtue of this   chapter; and                (3)  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.          (b)  A claimant may bring suit directly on the security, or   the commissioner may bring suit on behalf of the claimant or the   state, either in one action or in successive actions.          (c)  The commissioner may collect from the security or   proceeds of the security any delinquent fee, assessment, cost,   penalty, or other amount imposed on and owed by a money services   licensee. 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 money services licensee,   provided that a surety may not be considered an interested,   aggrieved, or affected person for purposes of an administrative   proceeding under Section 152.451 of this code or Chapter 2001,   Government Code.          (d)  A security remains in effect until canceled, which may   occur only after providing 30 days' written notice to the   commissioner. Cancellation does not affect any liability incurred   or accrued during the period covered by the security.          (e)  A security must cover claims for at least five years   after the money services licensee surrenders the licensee's license   or otherwise ceases to engage in activities for which a license is   required under this subchapter. However, the commissioner may   permit the amount of the security to be reduced or eliminated before   that time to the extent that the amount of the money services   licensee's obligations to the department and to purchasers in this   state is reduced. The commissioner may permit a money services   licensee to substitute another form of security when the licensee   ceases to provide money transmission in this state.          (f)  If the commissioner at any time reasonably determines   that the required security is insecure, deficient in amount, or   exhausted in whole or in part, the commissioner by written order   shall require the money services licensee to file or make new or   additional security to comply with this section.          (g)  Instead of providing all or part of the amount of the   security required by this section, an applicant for a money   services license or a money services licensee may deposit, with a   financial institution possessing trust powers that is authorized to   conduct a trust business in this state and is acceptable to the   commissioner, an aggregate amount of United States currency,   certificates of deposit, or other cash equivalents that equals the   total amount of the required security or the remaining part of the   security.          (h)  A deposit under Subsection (g):                (1)  must be held in trust in the name of and be pledged   to the commissioner;                (2)  must secure the same obligations as the security;   and                (3)  is subject to other conditions and terms the   commissioner may reasonably require.          (i)  The security is considered by operation of law to be   held in trust for the benefit of this state and any individual to   whom an obligation arising under this chapter is owed, and may not   be considered an asset or property of the money services licensee in   the event of bankruptcy, receivership, or a claim against the   licensee unrelated to the licensee's obligations under this   chapter.          Sec. 152.355.  MAINTENANCE OF PERMISSIBLE INVESTMENTS BY   MONEY TRANSMISSION LICENSEE. (a) A money transmission licensee   shall maintain at all times permissible investments that have a   market value computed in accordance with United States generally   accepted accounting principles of not less than the aggregate   amount of all of its outstanding money transmission obligations.          (b)  Except for permissible investments allowed under   Section 152.356(a), the commissioner, with respect to a money   transmission licensee, may limit the extent to which a specific   investment maintained by a licensee within a class of permissible   investments may be considered a permissible investment, if the   specific investment represents undue risk to customers not   reflected in the market value of investments.          (c)  Permissible investments are held in trust for the   benefit of the purchasers and holders of the money transmission   licensee's outstanding money transmission obligations in the event   of:                (1)  insolvency;                (2)  the filing of a petition by or against the licensee   under the United States Bankruptcy Code (11 U.S.C. Sections   101-1532) for bankruptcy or reorganization;                (3)  the filing of a petition by or against the licensee   for receivership;                (4)  the commencement of any other judicial or   administrative proceeding for the licensee's dissolution or   reorganization; or                (5)  an action by a creditor who is not a beneficiary of   the trust under this section against the licensee.          (d)  A permissible investment impressed with a trust under   Subsection (c) is not subject to attachment, levy of execution, or   sequestration by order of any court, except for a beneficiary of the   trust.          (e)  On the establishment of a trust under Subsection (c) or   when any funds are drawn on a letter of credit under Section   152.356(a)(4), the commissioner shall notify the applicable   regulator of each state in which the money transmission licensee is   licensed to engage in money transmission services of the   establishment of the trust or the funds drawn on the letter of   credit, as applicable.  Notice under this subsection is considered   to be given if performed under a multistate agreement or through the   NMLS.          (f)  Funds drawn on a letter of credit, and any other   permissible investments held in trust for the benefit of the   purchasers and holders of the money transmission licensee's   outstanding money transmission obligations, are considered held in   trust for the benefit of those purchasers and holders on a pro rata   and equitable basis in accordance with statutes under which   permissible investments are required to be held in this state, and   other states, as applicable.          (g)  A trust established under Subsection (c) shall be   terminated on extinguishment of all of the money transmission   licensee's outstanding money transmission obligations.          (h)  The commissioner may allow other types of investments   that the commissioner determines are of sufficient liquidity and   quality to be a permissible investment.  The commissioner may   participate in efforts with other state regulators to determine   that other types of investments are of sufficient liquidity and   quality to be a permissible investment.          Sec. 152.356.  TYPES OF PERMISSIBLE INVESTMENTS. (a)  The   following investments are permissible under Section 152.355:                (1)  cash, including:                      (A)  demand deposits;                      (B)  savings deposits;                      (C)  funds in accounts under Paragraphs (A) and   (B) held for the benefit of a money transmission licensee's   customers in a federally insured depository financial institution;                      (D)  cash equivalents, including automated   clearing house items:                            (i)  in transit to the money transmission   licensee; and                            (ii)  in transit to a payee;                      (E)  international wires in transit to a payee;                      (F)  cash in transit via armored car;                      (G)  cash in smart safes;                      (H)  cash in money transmission licensee-owned   locations;                      (I)  debit card or credit card-funded   transmission receivables owed by a bank; or                      (J)  money market mutual funds rated "AAA" by S&P   Global or an equivalent rating from an eligible rating service;                (2)  certificates of deposit or senior debt obligations   of an insured depository institution, as defined by Section 3,   Federal Deposit Insurance Act (12 U.S.C. Section 1813) or the   Federal Credit Union Act (12 U.S.C. Section 1781);                (3)  an obligation:                      (A)  of the United States or a commission, agency,   or instrumentality of the United States;                      (B)  that is guaranteed fully as to principal and   interest by the United States; or                      (C)  of a state or a governmental subdivision,   agency, or instrumentality of the United States;                (4)  the full drawable amount of an irrevocable standby   letter of credit for which the stated beneficiary is the   commissioner that stipulates that the commissioner need only draw a   sight draft under the letter of credit and present it to obtain   funds up to the letter of credit amount on presentation of the items   required by Subsection (f);                (5)  100 percent of the surety bond or deposit provided   for under Section 152.352 that exceeds the average daily money   transmission liability in this state; or                (6)  stablecoin, to the extent of outstanding   transmission obligations received by the licensee in the same kind   of stablecoin.          (b)  Unless permitted by the commissioner to exceed the limit   provided, the following investments are permissible under Section   152.355 to the extent specified:                (1)  receivables that are payable to a money   transmission licensee from its authorized delegates in the ordinary   course of business that are less than seven days old are permissible   up to the amount of 50 percent of the aggregate value of the   licensee's total permissible investments;                (2)  receivables under Subdivision (1) that are payable   to a money transmission licensee from a single authorized delegate   in the ordinary course of business are permissible up to the amount   of 10 percent of the aggregate value of the licensee's total   permissible investments;                (3)  the following investments are permissible up to   the amount of 20 percent of the aggregate value of a money   transmission licensee's total permissible investments for the   amount under each paragraph and the amount of 50 percent of the   aggregate value of the licensee's total permissible investments for   the total amount under this subdivision:                      (A)  a short-term investment of not more than six   months bearing an eligible rating;                      (B)  commercial paper bearing an eligible rating;                      (C)  a bill, note, bond, or debenture bearing an   eligible rating;                      (D)  a United States tri-party repurchase   agreement collateralized at 100 percent or more with United States   or agency security, municipal bonds, or other security bearing an   eligible rating;                      (E)  a money market mutual fund rated less than   "AAA" and not less than "A-" by S&P Global, or the equivalent from   an eligible rating service; and                      (F)  a mutual fund or other investment fund   composed solely and exclusively of one or more permissible   investments listed in Subsections (a)(1)-(3); and                (4)  cash, including demand deposits, savings   deposits, and funds in an account held for the benefit of a money   transmission licensee's customers at a foreign depository   institution is permissible up to the amount of 10 percent of the   aggregate value of the licensee's total permissible investments if:                      (A)  the licensee has received a satisfactory   rating in its most recent examination; and                      (B)  the foreign depository institution:                            (i)  has an eligible rating;                            (ii)  is registered under the Foreign   Account Tax Compliance Act (Pub. L. No. 111-147);                            (iii)  is not located in a country subject to   sanctions from the Office of Foreign Assets Control; and                            (iv)  is not located in a jurisdiction   designated high-risk or uncooperative by the Financial Action Task   Force.          (c)  A letter of credit under Subsection (a)(4) must:                (1)  be issued by:                      (A)  a federally insured depository financial   institution;                      (B)  a foreign bank authorized under federal law   to maintain a federal agency or federal branch office in a state or   states; or                      (C)  a foreign bank that is authorized under state   law to maintain a branch in a state that:                            (i)  bears an eligible rating or whose   parent company bears an eligible rating;                            (ii)  is regulated, supervised, and examined   by United States federal or state authorities having regulatory   authority over banks, credit unions, and trust companies; and                            (iii)  is approved by the commissioner;                (2)  be irrevocable and unconditional and indicate that   it is not subject to any condition or qualifications outside of the   letter of credit;                (3)  not contain reference to any other agreement,   document or entity, or otherwise provide for a security interest in   the money transmission licensee;                (4)  contain an issue date and expiration date; and                (5)  expressly provide for automatic extension without   a written amendment for an additional period of one year from a   current or future expiration date, unless the issuer of the letter   of credit notifies the commissioner in writing by certified or   registered mail, courier mail, or other receipted means, not more   than the 60th day before any expiration date, that the irrevocable   letter of credit will not be extended.          (d)  On receipt of a notice of expiration or non-extension of   a letter of credit issued under Subsection (c)(5), the commissioner   shall require a money transmission licensee to demonstrate to the   satisfaction of the commissioner, not later than the 15th day   before expiration, that the licensee maintains and will maintain   permissible investments in accordance with Section 152.355 after   the letter of credit expires.          (e)  If the money transmission licensee is not able to   satisfactorily demonstrate to the commissioner that the licensee   will maintain permissible investments under Subsection (d), the   commissioner may draw on the letter of credit in an amount up to the   amount necessary to meet the licensee's requirements to maintain   permissible investments in accordance with Section 152.355.  The   commissioner shall offset the draw against the money transmission   licensee's outstanding money transmission obligations.  The   commissioner or the commissioner's designated agent shall hold   drawn funds in trust to the extent authorized by law as agent for   the benefit of the purchasers and holders of the money transmission   licensee's outstanding money transmission obligations.          (f)  A letter of credit under Subsection (a)(4) must provide   that the issuer of the letter of credit will honor, at sight, a   presentation made by the commissioner to the issuer on or before the   expiration date of the letter of credit of:                (1)  the original letter of credit, including any   amendments; and                (2)  a written statement from the commissioner stating   that:                      (A)  a petition has been filed by or against the   money transmission licensee under the United States Bankruptcy Code   (11 U.S.C. Sections 101-1532) for bankruptcy or reorganization;                      (B)  a petition has been filed by or against the   money transmission licensee for receivership, or the commencement   of any other judicial or administrative proceeding for the   licensee's dissolution or reorganization;                      (C)  a money transmission licensee's assets have   been seized by the commissioner under an emergency order issued in   accordance with applicable law on the basis of an action,   violation, or condition that has caused or is likely to cause the   insolvency of the licensee; or                      (D)  the commissioner has received notice of   expiration or non-extension of a letter of credit under Subsection   (c)(5), and the money transmission licensee failed to demonstrate   to the satisfaction of the commissioner under Subsection (d) that   the licensee will maintain permissible investments in accordance   with Section 152.355 on the expiration or non-extension of the   letter of credit.          (g)  The commissioner may designate an agent to serve on the   commissioner's behalf as beneficiary to a letter of credit if the   agent and letter of credit meet requirements established by the   commissioner.  The commissioner's agent may serve as agent for   multiple licensing authorities for a single irrevocable letter of   credit if the proceeds of the drawable amount for the purposes of   Subsection (a)(4) are assigned to the commissioner.          (h)  The commissioner may participate in multistate   processes designed to facilitate the issuance and administration of   letters of credit, including but not limited to services provided   by the NMLS and State Regulatory Registry, LLC.   SUBCHAPTER I.  ENFORCEMENT          Sec. 152.401.  INJUNCTIVE RELIEF. (a)  If a person appears   to have violated, or if reasonable cause exists to believe that a   person is likely to violate, this chapter or a rule adopted under   this chapter, the following persons may bring an action for   injunctive relief to enjoin the violation or enforce compliance   with the provision:                (1)  the commissioner, through the attorney general;                (2)  the attorney general;                (3)  the district attorney of Travis County; or                (4)  the prosecuting attorney of the county in which   the violation is alleged to have occurred.          (b)  In addition to the authority granted to the commissioner   under Subsection (a), the commissioner, through the attorney   general, may bring an action for injunctive relief if the   commissioner has reason to believe that a person has violated or is   likely to violate an order of the commissioner issued under this   chapter.          (c)  An action for injunctive relief brought by the   commissioner, the attorney general, or the district attorney of   Travis County under Subsection (a), or brought by the commissioner   under Subsection (b), must be brought in a district court in Travis   County.  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.          (d)  On a proper showing, the court may issue a restraining   order, an order freezing assets, a preliminary or permanent   injunction, or a writ of mandate, or may appoint a receiver for the   defendant or the defendant's assets.          (e)  A receiver appointed by the court under Subsection (d)   may, with approval of the court, exercise all of the powers of the   defendant's directors, officers, partners, trustees, or persons   who exercise similar powers and perform similar duties.          (f)  An action brought under this section may include a claim   for ancillary relief, including a claim by the commissioner for   costs or civil penalties authorized under this chapter, or for   restitution or damages on behalf of the persons injured by the act   constituting the subject matter of the action, and the court has   jurisdiction to award that relief.          Sec. 152.402.  CEASE AND DESIST ORDERS FOR UNLICENSED   PERSONS. (a)  If the commissioner has reason to believe that an   unlicensed person has engaged or is likely to engage in an activity   for which a license is required under this chapter, the   commissioner may order the person to cease and desist from the   violation until the person is issued a license under this chapter.     The commissioner's order is subject to Section 152.409, unless the   order is issued as an emergency order.  The commissioner may issue   an emergency cease and desist order under Section 152.410 if the   commissioner finds that the person's violation or likely violation   threatens immediate and irreparable harm to the public.          (b)  A cease and desist order under this section may require   the unlicensed person to take affirmative action to correct any   condition resulting from or contributing to the activity or   violation, including the payment of restitution to each resident of   this state damaged by the violation.          Sec. 152.403.  SUSPENSION AND REVOCATION OF MONEY SERVICES   LICENSE. (a)  The commissioner shall revoke a money services   license if the commissioner finds that:                (1)  the money services licensee does not provide the   security required under this chapter; or                (2)  for a money transmission licensee, the net worth   of the licensee is less than the amount required under this chapter.          (b)  The commissioner may suspend or revoke a money services   license or order a money transmission licensee to revoke the   designation of an authorized delegate if the commissioner has   reason to believe that:                (1)  the money services licensee has violated this   chapter, a rule adopted or order issued under this chapter, a   written agreement entered into with the department or commissioner,   or any other state or federal law applicable to the licensee's money   services business;                (2)  the money services licensee has refused to permit   or has not cooperated with an examination or investigation   authorized by this chapter;                (3)  the money services licensee has engaged in fraud,   knowing misrepresentation, deceit, or gross negligence in   connection with the operation of the licensee's money services   business or any transaction subject to this chapter;                (4)  an authorized delegate of the money transmission   licensee has knowingly violated this chapter, a rule adopted or   order issued under this chapter, or a state or federal   anti-money-laundering or terrorist funding law, and the licensee   knows or should have known of the violation and has failed to make a   reasonable effort to prevent or correct the violation;                (5)  the competence, experience, character, or general   fitness of the money services licensee or the authorized delegate   of a money transmission licensee, or a principal of, person in   control of, or responsible person of a money services licensee or   authorized delegate of a money transmission licensee, indicates   that it is not in the public interest to permit the licensee or   authorized delegate to provide money services;                (6)  the money services licensee has engaged in an   unsafe or unsound act or practice or has conducted business in an   unsafe or unsound manner;                (7)  the money services licensee has suspended payment   of the licensee's obligations, made a general assignment for the   benefit of the licensee's creditors, or admitted in writing the   licensee's inability to pay debts of the licensee as they become   due;                (8)  the money transmission licensee has failed to   terminate the authority of an authorized delegate after the   commissioner has issued and served on the licensee a final order   finding that the authorized delegate has violated this chapter;                (9)  a fact or condition exists that, if it had been   known at the time the money services licensee applied for the   license, would have been grounds for denying the application;                (10)  the money services licensee has engaged in false,   misleading, or deceptive advertising;                (11)  the money services licensee has failed to pay a   judgment entered in favor of a claimant or creditor in an action   arising out of the licensee's activities under this chapter not   later than the 30th day after the date the judgment becomes final or   not later than the 30th day after the date the stay of execution   expires or is terminated, as applicable;                (12)  the money services licensee has knowingly made a   material misstatement or has suppressed or withheld material   information on an application, request for approval, report, or   other document required to be filed with the department under this   chapter; or                (13)  the money services licensee has committed a   breach of trust or of a fiduciary duty.          (c)  In determining whether a money services licensee has   engaged in an unsafe or unsound act or practice or has conducted   business in an unsafe or unsound manner, the commissioner may   consider factors that include:                (1)  the size and condition of the licensee's provision   of money services;                (2)  the magnitude of the loss or potential loss;                (3)  the gravity of the violation of this chapter or   rule adopted or order issued under this chapter;                (4)  any action taken against the licensee by this   state, another state, or the federal government; and                (5)  the previous conduct of the licensee.          (d)  The commissioner's order suspending or revoking a money   services license or directing a money transmission licensee to   revoke the designation of an authorized delegate is subject to   Section 152.409, unless the order is issued as an emergency order.     The commissioner may issue an emergency order suspending a money   services license or directing a money transmission licensee to   revoke the designation of an authorized delegate in accordance with   Section 152.410 if the commissioner finds that the factors   identified in Section 152.410(b) exist.          Sec. 152.404.  SUSPENSION AND REVOCATION OF AUTHORIZED   DELEGATE DESIGNATION. (a)  The commissioner may suspend or revoke   the designation of an authorized delegate by a money transmission   licensee 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 transmission   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 money transmission licensee 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 transmission;                (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   Specially 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                (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.          (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 transmission;                (2)  the magnitude of the loss or potential loss;                (3)  the gravity of the violation of this chapter or   rule adopted or order issued under this chapter;                (4)  any action taken against the authorized delegate   by this state, another state, or the federal government; and                (5)  the previous conduct of the authorized delegate.          (c)  The commissioner's order suspending or revoking the   designation of an authorized delegate is subject to Section   152.409, unless the order is issued as an emergency order.  The   commissioner may issue an emergency order suspending the   designation of an authorized delegate in accordance with Section   152.410 if the commissioner finds that the factors identified in   Section 152.410(b) exist.          Sec. 152.405.  CEASE AND DESIST ORDERS FOR MONEY SERVICES   LICENSEE OR AUTHORIZED DELEGATE. (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 152.403 or 152.404 exists with respect to a money services   licensee or authorized delegate; and                (2)  a cease and desist order is necessary to protect   the interests of the money services licensee, the purchasers of the   licensee's money services, or the public.          (b)  A cease and desist order may require a money services   licensee or authorized delegate to cease and desist from the action   or violation or to take affirmative action to correct any condition   resulting from or contributing to the action or violation, and the   requirements of the order may apply to a principal or responsible   person of the licensee or authorized delegate.          (c)  The cease and desist order is subject to Section   152.409, unless the order is issued as an emergency order.  The   commissioner may issue an emergency cease and desist order in   accordance with Section 152.410 if the commissioner finds that the   factors identified in Section 152.410(b) exist.          Sec. 152.406.  CONSENT ORDERS. (a)  The commissioner may   enter into a consent order at any time with a person to resolve a   matter arising under this chapter or a rule adopted or order issued   under this chapter.          (b)  A consent order must be signed by the person to whom the   order is issued or by the person's authorized representative and   must indicate agreement with the terms contained in the order.     However, a consent order may provide that the order does not   constitute an admission by a person that the person has violated   this chapter or a rule adopted or order issued under this chapter.          (c)  A consent order is a final order and may not be appealed.          Sec. 152.407.  ADMINISTRATIVE PENALTY. (a)  After notice   and hearing, the commissioner may assess an administrative penalty   against a person who:                (1)  has violated this chapter or a rule adopted or   order issued under this chapter and has failed to correct the   violation not later than the 30th day after the date the department   sends written notice of the violation to the person;                (2)  if the person is a money services licensee, has   engaged in conduct described by Section 152.403;                (3)  has engaged in a pattern of violations; or                (4)  has demonstrated wilful disregard for the   requirements of this chapter, the rules adopted under this chapter,   or an order issued under this chapter.          (b)  A violation corrected after a person receives written   notice from the department of the violation may be considered for   purposes of determining whether a person has engaged in a pattern of   violations under Subsection (a)(3) or demonstrated wilful   disregard under Subsection (a)(4).          (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.  Each transaction in violation of   this chapter and each day that a violation continues is a separate   violation.          (d)  In determining the amount of the penalty, the   commissioner shall consider factors that include the seriousness of   the violation, the person's compliance history, and the person's   good faith in attempting to comply with this chapter, provided that   if the person is found to have demonstrated wilful disregard under   Subsection (a)(4), the trier of fact may recommend that the   commissioner impose the maximum administrative penalty permitted   under Subsection (c).          (e)  A hearing to assess an administrative penalty is   considered a contested case hearing and is subject to Section   152.451.          (f)  An order imposing an administrative penalty after   notice and hearing becomes effective and is final for purposes of   collection and appeal immediately on issuance.          (g)  The commissioner may collect an administrative penalty   assessed under this section:                (1)  in the same manner that a money judgment is   enforced in court; or                (2)  if the penalty is imposed against a money services   licensee or an authorized delegate, from the proceeds of the   licensee's security in accordance with Section 152.354(c).          Sec. 152.408.  CRIMINAL PENALTY. (a)  A person commits an   offense if the person:                (1)  intentionally makes a false statement,   misrepresentation, or certification in a record or application   filed with the department or required to be maintained under this   chapter or a rule adopted or order issued under this chapter, or   intentionally makes a false entry or omits a material entry in the   record or application; or                (2)  knowingly engages in an activity for which a money   services license is required under this chapter without being   licensed under this chapter.          (b)  An offense under this section is a felony of the third   degree.          (c)  An offense under this section may be prosecuted in   Travis County or in the county in which the offense is alleged to   have been committed.          (d)  Nothing in this section limits the power of the state to   punish a person for an act that constitutes an offense under this or   any other law.          Sec. 152.409.  NOTICE, HEARING, AND OTHER PROCEDURES FOR   NONEMERGENCY ORDERS.  (a)  This section applies to an order issued   by the commissioner under this subchapter that is not an emergency   order.          (b)  An order to which this section applies becomes effective   only after notice and an opportunity for hearing.  The order must:                (1)  state the grounds on which the order is based;                (2)  to the extent applicable, state the action or   violation from which the person subject to the order must cease and   desist or the affirmative action the person must take to correct a   condition resulting from the violation or that is 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;                (4)  state the effective date of the order, which may   not be before the 21st day after the date the order is delivered or   mailed; and                (5)  include a notice that a person may file a written   request for a hearing on the order with the commissioner not later   than the 20th day after the date the order is delivered or mailed.          (c)  Unless the commissioner receives a written request for a   hearing from the person against whom the order is directed not later   than the 20th day after the date the order is delivered or mailed,   the order takes effect as stated in the order and is final against   and non-appealable by that person from that date.          (d)  A hearing on the order must be held not later than the   45th day after the date the commissioner receives the written   request for the hearing unless the administrative law judge extends   the period for good cause or the parties agree to a later hearing   date.          (e)  An order that has been affirmed or modified after a   hearing becomes effective and is final for purposes of enforcement   and appeal immediately on issuance.  The order may be appealed to   the district court of Travis County as provided by Section   152.451(b).          Sec. 152.410.  REQUIREMENTS AND NOTICE AND HEARING   PROCEDURES FOR EMERGENCY ORDERS. (a)  This section applies to an   emergency order issued by the commissioner under this subchapter.          (b)  The commissioner may issue an emergency order, without   prior notice and an opportunity for hearing, if the commissioner   finds that:                (1)  the action, violation, or condition that is the   basis for the order:                      (A)  has caused or is likely to cause the   insolvency of the money services licensee;                      (B)  has caused or is likely to cause the   substantial dissipation of the money services licensee's assets or   earnings;                      (C)  has seriously weakened or is likely to   seriously weaken the condition of the money services licensee; or                      (D)  has seriously prejudiced or is likely to   seriously prejudice the interests of the money services licensee, a   purchaser of the licensee's money services, or the public; and                (2)  immediate action is necessary to protect the   interests of the money services licensee, a purchaser of the   licensee's money services, or the public.          (c)  In connection with and as directed by an emergency   order, the commissioner may seize the records and assets of a money   services licensee or authorized delegate that relate to the   licensee's money services business.          (d)  An emergency order must:                (1)  state the grounds on which the order is based;                (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                (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.          (e)  An emergency order takes effect as soon as the person   against whom the order is directed has actual or constructive   knowledge of the issuance of the order.          (f)  A money services licensee or authorized delegate   against whom an emergency order is directed must submit a written   certification to the commissioner, signed by the licensee or   authorized delegate, and their principals and responsible   individuals, as applicable, and each person named in the order,   stating that each person has received a copy of and has read and   understands the order.          (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 non-appealable as to that person on   the 16th day after the date the order is delivered or mailed.          (h)  A request for a hearing does not stay an emergency   order.          (i)  A hearing on an emergency order takes precedence over   any other matter pending before the commissioner, and must be held   not later than the 10th day after the date the commissioner receives   the written request for hearing unless the administrative law judge   extends the period for good cause or the parties agree to a later   hearing date.          (j)  An emergency order that has been affirmed or modified   after a hearing is final for purposes of enforcement and appeal.     The order may be appealed to the district court of Travis County as   provided in Section 152.451(b).   SUBCHAPTER J.  MISCELLANEOUS PROVISIONS          Sec. 152.451.  ADMINISTRATIVE PROCEDURES. (a)  All   administrative proceedings under this chapter must be conducted in   accordance with Chapter 2001, Government Code, and Title 7, Chapter   9, Texas Administrative Code.          (b)  A person affected by a final order of the commissioner   issued under this chapter after a hearing may appeal the order by   filing a petition for judicial review in a district court of Travis   County.  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.   ARTICLE 2.  CONFORMING AMENDMENTS          SECTION 2.01.  Section 140A.104(e), Civil Practice and   Remedies Code, is amended to read as follows:          (e)  A bank or savings and loan association insured by the   Federal Deposit Insurance Corporation, a credit union insured by   the National Credit Union Administration, or the holder of a money   transmission license as defined by Chapter 152 [151], Finance Code,   may not be held liable in damages or for other relief under this   chapter, unless the finder of fact finds by a preponderance of the   evidence that the person or agent acquiring or maintaining an   interest in or transporting, transacting, transferring, or   receiving the funds on behalf of another did so knowing that the   funds were the proceeds of an offense and that a director or high   managerial agent performed, authorized, requested, commanded,   participated in, ratified, or recklessly tolerated the unlawful   conduct of the person or agent.          SECTION 2.02.  Article 59.01(2), Code of Criminal Procedure,   is amended to read as follows:                (2)  "Contraband" means property of any nature,   including real, personal, tangible, or intangible, that is:                      (A)  used in the commission of:                            (i)  any first or second degree felony under   the Penal Code;                            (ii)  any felony under Section 15.031(b),   21.11, or 38.04 or Chapter 29, 30, 31, 32, 33, 33A, or 35, Penal   Code;                            (iii)  any felony under Chapter 43, Penal   Code, except as provided by Paragraph (B);                            (iv)  any felony under The Securities Act   (Title 12, Government Code); or                            (v)  any offense under Chapter 49, Penal   Code, that is punishable as a felony of the third degree or state   jail felony, if the defendant has been previously convicted three   times of an offense under that chapter;                      (B)  used or intended to be used in the commission   of:                            (i)  any felony under Chapter 481, Health   and Safety Code (Texas Controlled Substances Act);                            (ii)  any felony under Chapter 483, Health   and Safety Code;                            (iii)  a felony under Chapter 152 [151],   Finance Code;                            (iv)  any felony under Chapter 20A or 34,   Penal Code;                            (v)  a Class A misdemeanor under Subchapter   B, Chapter 365, Health and Safety Code, if the defendant has been   previously convicted twice of an offense under that subchapter;                            (vi)  any felony under Chapter 32, Human   Resources Code, or Chapter 31, 32, 35A, or 37, Penal Code, that   involves a health care program, as defined by Section 35A.01, Penal   Code;                            (vii)  a Class B misdemeanor under Chapter   522, Business & Commerce Code;                            (viii)  a Class A misdemeanor under Section   306.051, Business & Commerce Code;                            (ix)  any offense under Section 42.10, Penal   Code;                            (x)  any offense under Section 46.06(a)(1)   or 46.14, Penal Code;                            (xi)  any offense under Chapter 71, Penal   Code;                            (xii)  any offense under Section 20.05,   20.06, 20.07, 43.04, or 43.05, Penal Code;                            (xiii)  an offense under Section 326.002,   Business & Commerce Code; or                            (xiv)  a Class A misdemeanor or any felony   under Section 545.420, Transportation Code, other than a Class A   misdemeanor that is classified as a Class A misdemeanor based   solely on conduct constituting a violation of Subsection (e)(2)(B)   of that section;                      (C)  the proceeds gained from the commission of a   felony listed in Paragraph (A) or (B) of this subdivision, a   misdemeanor listed in Paragraph (B)(vii), (ix), (x), (xi), or (xii)   of this subdivision, or a crime of violence;                      (D)  acquired with proceeds gained from the   commission of a felony listed in Paragraph (A) or (B) of this   subdivision, a misdemeanor listed in Paragraph (B)(vii), (ix), (x),   (xi), or (xii) of this subdivision, or a crime of violence;                      (E)  used to facilitate or intended to be used to   facilitate the commission of a felony under Section 15.031 or   Chapter 43, Penal Code; or                      (F)  used to facilitate or intended to be used to   facilitate the commission of an offense under Section 20.05, 20.06,   or 20.07 or Chapter 20A, Penal Code.          SECTION 2.03.  Section 182.021, Finance Code, is amended to   read as follows:          Sec. 182.021.  ACTIVITIES NOT REQUIRING CHARTER. Subject to   Subchapter C, Chapter 187, a company does not engage in the trust   business in a manner requiring a state charter by:                (1)  acting in a manner authorized by law and in the   scope of authority as an agent of a trust institution;                (2)  rendering a service customarily performed as an   attorney in a manner approved and authorized by the Supreme Court of   Texas or State Bar of Texas;                (3)  acting as trustee under a deed of trust made only   as security for the payment of money or for the performance of   another act;                (4)  conducting business as a trust institution if the   exercise of fiduciary powers in this state by the trust institution   is not otherwise prohibited by law;                (5)  engaging in a business regulated by the Office of   Consumer Credit Commissioner, except as limited by rules adopted by   the finance commission;                (6)  receiving and distributing rents and proceeds of   sale as a licensed real estate broker on behalf of a principal in a   manner authorized by the Texas Real Estate Commission;                (7)  engaging in a securities transaction or providing   an investment advisory service as a licensed and registered dealer,   salesman, or advisor to the extent that the activity is regulated by   the State Securities Board or the Securities and Exchange   Commission;                (8)  engaging in the sale and administration of an   insurance product by an insurance company or agent authorized or   licensed by the Texas Department of Insurance to the extent that the   activity is regulated by the Texas Department of Insurance;                (9)  engaging in the lawful sale of prepaid funeral   benefits under a permit issued by the banking commissioner under   Chapter 154;                (10)  engaging in the lawful business of a perpetual   care cemetery corporation under Chapter 712, Health and Safety   Code;                (11)  engaging as a principal in the money services   business under a license issued by the banking commissioner under   Chapter 152 [151];                (12)  acting as trustee under a voting trust as   provided by Section 6.251, Business Organizations Code;                (13)  acting as trustee by a public, private, or   independent institution of higher education or a university system,   as defined by Section 61.003, Education Code, including an   affiliated foundation or corporation of such an institution or   system acting as trustee as provided by the Education Code;                (14)  engaging in another activity expressly excluded   from the application of this subtitle by rule of the finance   commission;                (15)  rendering services customarily performed by a   certified accountant in a manner authorized by the Texas State   Board of Public Accountancy;                (16)  serving as trustee of a charitable trust as   provided by Section 2.106, Business Organizations Code;                (17)  performing escrow or settlement services if   licensed or authorized under Title 11, Insurance Code;                (18)  acting as a qualified intermediary in a tax   deferred exchange under Section 1031, Internal Revenue Code of   1986, and applicable regulations;                (19)  providing permitted services at a trust   representative office established in this state pursuant to   Subchapter C, Chapter 187; or                (20)  acting as a trustee or custodian approved by the   Internal Revenue Service under 26 C.F.R. Section 1.408-2(e) of an   individual retirement account described by Section 408(a),   Internal Revenue Code of 1986.          SECTION 2.04.  Section 278.001(1), Finance Code, is amended   to read as follows:                (1)  "Currency" has the meaning assigned by Section   152.003 [151.501].          SECTION 2.05.  Section 213.012(a), Labor Code, is amended to   read as follows:          (a)  In this section, "payment instrument" has the meaning   assigned by Section 152.003 [151.301], Finance Code.          SECTION 2.06.  Section 151.0035(b), Tax Code, is amended to   read as follows:          (b)  "Data processing service" does not include:                (1)  the transcription of medical dictation by a   medical transcriptionist;                (2)  services exclusively to encrypt electronic   payment information for acceptance onto a payment card network   described by Subdivision (3)(E) to comply with standards set by the   Payment Card Industry Security Standards Council; or                (3)  settling of an electronic payment transaction by:                      (A)  a downstream payment processor or point of   sale payment processor that routes electronic payment information   to an entity described by Paragraph (C) or (E);                      (B)  a person who is engaged in the business of   money transmission and required to obtain a license under Section   152.101 [151.302(a)], Finance Code;                      (C)  a federally insured financial institution,   as defined by Section 201.101, Finance Code, that is organized   under the laws of this state, another state, or the United States,   or an affiliate of the institution;                      (D)  a person who has entered into a sponsorship   agreement with an entity described by Paragraph (C) for the purpose   of settling that entity's electronic payment transactions through a   payment card network; or                      (E)  a payment card network that allows a person   to accept a specific brand of debit or credit card by routing   information and data to settle an electronic payment transaction.   ARTICLE 3.  REPEALER          SECTION 3.01.  Chapter 151, Finance Code, is repealed.   ARTICLE 4.  TRANSITIONAL PROVISIONS          SECTION 4.01.  (a) A license issued under Chapter 151,   Finance Code, that is in effect on September 1, 2023, remains in   force as a license under Chapter 152, Finance Code.  Not later than   September 1, 2024, a licensee must satisfy the minimum requirements   to maintain a license established by Chapter 152, Finance Code, as   added by this Act.          (b)  A contract between a licensee and an authorized delegate   entered into or renewed on or after the effective date of this Act   must satisfy the contract requirements established by Chapter 152,   Finance Code, as added by this Act.          (c)  The Finance Commission of Texas may adopt rules to   further provide for the orderly transition to licensing and   regulation under this Act.   ARTICLE 5.  EFFECTIVE DATE          SECTION 5.01.  This Act takes effect September 1, 2023.