Part 1.
FINANCE COMMISSION OF TEXAS
Chapter 4.
CURRENCY EXCHANGE
7 TAC §§4.7, 4.9, 4.12, 4.21
The Finance Commission of Texas (commission), on behalf of
the Texas Department of Banking (department), adopts the repeal of §4.7,
concerning bond requirements and deposits in lieu of bond, §4.9, concerning
misrepresentation of correction and enforcement actions for continuing and
repeat violations, §4.12, concerning currency exchange license applications,
notices to applicants, application processing times, abandoned filings, and
appeals, and §4.21, concerning information to consumers on how to file
a complaint. The repeal is adopted without changes to the proposal as published
in the March 10, 2006, issue of the
Texas Register
(31 TexReg 1544).
Prior to September 1, 2005, Texas law regulated money services businesses
under Finance Code, Chapter 152 (Sale of Checks Act) and Finance Code, Chapter
153 (Currency Exchange Act). During the 79th Regular Session, the Texas Legislature
enacted the Money Services Act (Act of May 26, 2005, 79th Leg., R.S., H.B.
2218, §1), effective September 1, 2005. The Money Services Act (MSA),
codified as Finance Code, Title 3, Subtitle E, Chapter 151, consolidates the
regulation of persons engaged in the money transmission and currency exchange
business in Texas into one statute and repeals the Sale of Checks and Currency
Exchange Acts.
Chapter 4 consists of the administrative rules the commission previously
adopted to implement the repealed Currency Exchange Act. The commission is
adopting new regulations under the MSA which are located in Texas Administrative
Code, Title 7, Chapter 33 (Money Services Businesses). As the commission adopts
new Chapter 33 sections, the commission is repealing existing sections of
Chapter 4. Ultimately, all Chapter 4 sections will be repealed.
The commission is repealing §§4.7, 4.9, 4.12, and 4.21 because
these sections are unnecessary or obsolete. As explained in this preamble,
the substance of these sections is incorporated into or rendered unnecessary
by the MSA, or is included in new sections of Chapter 33 that the commission
is simultaneously adopting in this issue of the
Texas Register
.
The substance of §4.12, which pertains generally to new license applications,
is included in adopted new §33.13 and §33.15, and the substance
of §4.21, relating to consumer complaints, is included in adopted new §33.51.
Section 4.7, which establishes the bond or other security requirements applicable
to a license holder under the Currency Exchange Act, is unnecessary because
the security requirements for money transmitters and currency exchangers are
set out in the MSA. Section 4.9, concerning the correction of violations and
administrative penalties for continuing and repeat violations, is unnecessary
because Finance Code, §151.707, authorizes the banking commissioner to
impose administrative penalties upon a person that fails to timely correct
violations, engages in a pattern of violations, or wilfully disregards the
requirements of the law.
The commission received no comments regarding the proposal.
The repeal is adopted under Finance Code, §151.102, which
authorizes the commission to adopt rules to administer and enforce Finance
Code, Chapter 151.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on April 28, 2006.
TRD-200602375
Everette D. Jobe
Certifying Official
Finance Commission of Texas
Effective date: May 18, 2006
Proposal publication date: March 10, 2006
For further information, please call: (512) 475-1300
Chapter 29.
SALE OF CHECKS ACT
7 TAC §§29.3, 29.4, 29.6 - 29.10, 29.12
The Finance Commission of Texas (commission), on behalf of
the Texas Department of Banking (department), adopts the repeal of §29.3,
concerning application for new sale of checks license, §29.4, concerning
violation of application processing times, §29.6, concerning net worth
and bonding requirements for a license holder that conducts currency exchange,
transportation or transmission transactions, §29.7, concerning exemption
from licensing, §29.8, concerning license renewal, §29.9, concerning
extension of time to file annual financial statement, §29.10, concerning
correction of violations and imposition of administrative remedy, and §29.12,
concerning notice to customers regarding complaints. The repeal is adopted
without changes to the text as published in the March 10, 2006, issue of the
Prior to September 1, 2005, Texas law regulated money services businesses
under Finance Code, Chapter 152 (Sale of Checks Act) and Finance Code, Chapter
153 (Currency Transmission Act). During the 79th Regular Session, the Texas
Legislature enacted the Money Services Act (Act of May 26, 2005, 79th Leg.,
R.S., H.B. 2218, §1), effective September 1, 2005. The Money Services
Act (MSA), codified as Finance Code, Title 3, Subtitle E, Chapter 151, consolidates
the regulation of persons engaged in the money transmission and currency exchange
businesses in Texas into one statute and repeals the Sale of Checks and Currency
Exchange Acts.
Chapter 29 consists of the administrative rules the commission previously
adopted to implement the repealed Sale of Checks Act. The commission is adopting
new regulations under the MSA which are located in Texas Administrative Code,
Title 7, Chapter 33 (Money Services Businesses). As the commission adopts
new Chapter 33 sections, the commission is repealing existing sections of
Chapter 29. Ultimately, all Chapter 29 sections will be repealed.
The commission is repealing §§29.3, 29.4, 29.6 - 29.10, and 29.12
because these sections are unnecessary or obsolete. As explained in this preamble,
the substance of these sections is incorporated into or rendered unnecessary
by the MSA, or is included in the new sections of Chapter 33 that the commission
is simultaneously adopting in this issue of the
Texas Register
.
The substance of §§29.3, 29.4, 29.8, 29.9, and 29.12 is included
in new Chapter 33 sections. The requirements of §29.3 and §29.4,
which pertain generally to new license applications, are included in adopted
new §33.13 and §33.15. The substance of §29.8 and §29.9,
which concern license renewals and extensions of time for filing annual statements,
is included in new §33.21 (and is also addressed in Finance Code, 151.207).
The substance of §29.12, which specifies how license holders must tell
their customers how to file complaints, is included in adopted new §33.51.
The substance of §§29.6, 29.7, and 29.10 is incorporated into
or rendered unnecessary by the MSA. Section 29.6, which establishes the net
worth and bond requirements for a license holder under the Sale of Checks
Act that conducts currency-based transactions generally regulated under the
Currency Exchange Act, is unnecessary. All money transmission is now regulated
under the MSA, and the security requirements for both money transmitters and
currency exchangers are set out in Finance Code, §151.308 and §151.506,
respectively. The exemptions from licensing recognized in §29.7 are now
set out in Finance Code, §151.103, and §33.3, which establishes
an exclusion for agents of certain financial institutions. Finally, §29.10,
concerning the correction of violations and administrative penalties, is rendered
unnecessary by Finance Code, §151.707. Section 151.707 authorizes the
banking commissioner to impose administrative penalties upon a person who
fails to timely correct violations, engages in a pattern of violations, or
willfully disregards the requirements of the law.
The commission received no comments regarding the proposal.
The repeal is adopted under Finance Code, §151.102, which
authorizes the commission to adopt rules to administer and enforce Finance
Code, Chapter 151.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on April 28, 2006.
TRD-200602376
Everette D. Jobe
Certifying Official
Texas Department of Banking
Effective date: May 18, 2006
Proposal publication date: March 10, 2006
For further information, please call: (512) 475-1300
7 TAC §§33.13, 33.15, 33.21, 33.51
The Finance Commission of Texas (commission), on behalf of
the Texas Department of Banking (department), adopts new §33.13, concerning
new license applications, §33.15, concerning violation of new license
application processing times, §33.21, concerning license renewals, and §33.51,
concerning providing information to customers about how to file a complaint.
The new sections are adopted without changes to the text as published in the
March 10, 2006, issue of the
Texas Register
(31
TexReg 1547).
The new sections are adopted under the recently enacted Money Services
Act (Act of May 26, 2005, 79th Leg., R.S., H.B. 2218, §1) (MSA), which
took effect September 1, 2005, and is codified as Finance Code, Title 3, Subtitle
E, Chapter 151. The MSA regulates persons that engage in money services businesses
in Texas, specifically the money transmission and the currency exchange businesses.
Prior to the enactment of the MSA, Texas law regulated money services businesses
under Finance Code, Chapter 152 (Sale of Checks Act), and Chapter 153 (Currency
Exchange Act). The MSA consolidates the regulation of these businesses into
one statute and repeals the Sale of Checks and Currency Exchange Acts.
The commission is in the process of adopting new regulations to implement
the MSA. As the commission adopts new Chapter 33 sections, the commission
is repealing existing sections of Texas Administrative Code, Title 7, Chapter
29 (Sale of Checks Act) and Chapter 4 (Currency Exchange), which sections
were previously adopted under the repealed Sale of Checks and Currency Exchange
Acts. Ultimately, all sections of Chapter 29 and Chapter 4 will be repealed.
As explained in this preamble, the adopted new sections replace Chapter
29 and Chapter 4 sections that the commission is repealing in this issue of
the
Texas Register
. Adopted new §§33.13,
33.15 and 33.51 are substantively similar to the repealed sections but conform
to the provisions of the MSA. Adopted new §33.21 reflects and clarifies
the requirements of the MSA with respect to license renewals.
Adopted new §33.13 sets out the requirements an applicant for a new
license under the MSA must satisfy and procedures for accepting, evaluating,
and granting or denying an application. Adopted new §33.15 establishes
the process by which a new license applicant may complain to the banking commissioner
if the department fails to comply with the application processing times specified
in adopted new §33.13(e) or (h). These new sections replace repealed §29.3, §29.4
and §4.12.
Adopted new §33.21, which addresses license renewals, replaces repealed §29.8
and §29.9, both of which are rendered obsolete by the MSA. The adopted
new section expands upon and reflects the requirements of Finance Code, §151.207,
regarding the renewal of money transmission and currency exchange licenses.
Valid licenses currently held under the MSA, either new licenses issued under
the Act or licenses continued under the Act's transition provisions, expire
on August 15, 2006, and must be renewed in accordance with the MSA. The adopted
new section specifies what a license holder must file to renew its license
and applicable statutory deadlines. The new section also establishes the procedure
by which a license holder may request an extension of time to file its renewal
report or pay its renewal fee and explains what is required to demonstrate
the "good cause" required to justify the extension.
Adopted new §33.51 specifies the manner in which a license holder
must provide information to its customers about how to file a complaint with
the department. The adopted new section is substantively similar to the repealed
sections it replaces, §29.12 and §4.21. However, the notice language
in the adopted new section differs slightly from the language in repealed §29.12
and §4.21. The new notice provides that a customer with a complaint about
a license holder's money transmission or currency exchange activity should
contact the department if the complaint remains unresolved after the customer
has complained to the license holder. The new language is intended to benefit
license holders and customers by encouraging direct communication between
the two and reduce unnecessary calls to the department.
Adopted new §33.51 has an effective date of July 1, 2006, the date
by which the MSA requires license holders to file their renewal reports. However, §33.51
permits a license holder to use the notice set out in the section or a substantially
conforming notice. The department will consider notices license holders currently
use under repealed §29.12 and §4.21 to be substantially conforming
for purposes of compliance with the adopted section. However, the department
encourages and expects license holders to transition to the new notice language
within a reasonable period of time.
The commission received no comments regarding the proposal.
The new sections are adopted under Finance Code, §151.101,
which authorizes the commission to adopt rules to administer and enforce Finance
Code, Chapter 151. The new sections are also adopted under Finance Code, §151.101,
which authorizes the commission to prescribe time periods for the processing
of new license applications, and Finance Code, §11.307, which directs
the commission to adopt rules regarding consumer complaint notices.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on April 28, 2006.
TRD-200602378
Everette D. Jobe
Certifying Official
Texas Department of Banking
Effective date: May 18, 2006
Proposal publication date: March 10, 2006
For further information, please call: (512) 475-1300
Chapter 77.
LOANS, INVESTMENTS, SAVINGS, AND DEPOSITS
Subchapter B. SAVINGS AND DEPOSITS
Part 2.
TEXAS DEPARTMENT OF BANKING
Chapter 33.
MONEY SERVICES BUSINESSES
Part 4.
TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING