88R11286 TYPED     By: Lambert H.B. No. 3573       A BILL TO BE ENTITLED   AN ACT   relating to modernizing the regulation of money services   businesses.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle E, Title 3, Finance Code, is amended by   adding Chapter 151 to read as follows:   CHAPTER 151. REGULATION OF MONEY SERVICES BUSINESSES   SUBCHAPTER A. GENERAL PROVISIONS          Section 151.2000 Short Title. This Act may be cited as the   Texas Money Services Modernization Act.          Section 151.002 Definitions. For purposes of this Act, the   following definitions shall apply:          (a)  "Acting in concert" means persons knowingly acting   together with a common goal of jointly acquiring control of a   licensee whether or not pursuant to an express agreement.          (b)  "Authorized delegate" means a person a licensee   designates to engage in money transmission on behalf of the   licensee.          (c)  "Average daily money transmission liability" means the   amount of the 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 Act for any licensee   required to do so, the given period of time shall be the quarters   ending March 31, June 30, September 30, and December 31 and at any   other date that may be requested during an examination.          (d)  "Bank Secrecy Act" means the Bank Secrecy Act, 31 U.S.C.   Section 5311, et seq. and its implementing regulations, as amended   and recodified from time to time.          (e)  "Closed loop stored value" means stored value that is   redeemable by the issuer only for goods or services provided by the   issuer or its affiliate or franchisees of the issuer or its   affiliate, except to the extent required by applicable law to be   redeemable in cash for its cash value;          (f)  "Commission" means the Finance Commission of Texas.          (g)  "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.          (h)  "Control" means          (1) (A)  the power to vote, directly or indirectly, at least   25 percent of the outstanding voting shares or voting interests of a   licensee or person in control of a licensee;                      (B)  the power to 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 licensee; or                      (C)  the power to exercise, directly or   indirectly, a controlling influence over the management or policies   of a licensee or person in control of a licensee.                (2)  Rebuttable Presumption of Control.                      (A)  A person is presumed to exercise a   controlling influence when the person holds the power to vote,   directly or indirectly, at least 10 percent of the outstanding   voting shares or voting interests of a licensee or person in control   of a licensee.                      (B)  A person presumed to exercise a controlling   influence as defined by this section can rebut the presumption of   control if the person is a passive investor.                (3)  For purposes of determining the percentage of a   person controlled by any other person, the person's interest shall   be aggregated with the interest of any other immediate family   member, including the person's spouse, parents, children,   siblings, mothers- and fathers-in law, sons- and daughters-in-law,   brothers- and sisters-in-law, and any other person who shares such   person's home.          (i)  "Currency" means the coin and paper money issued by the   United States or another country that is designated as legal tender   and circulates and is customarily used and accepted as a medium of   exchange in the country of issuance.          (j)  "Currency exchange" means:                (1)  receiving the currency of one government and   exchanging it for the currency of another government; or                (2)  receiving a negotiable instrument and exchanging   it for the currency of another government.          (k)  "Department" means the Texas Department of Banking.          (l)  "Eligible rating" shall mean a credit rating of any of   the three highest rating categories provided by an eligible rating   service, whereby each category may include rating category   modifiers such as "plus" or "minus" for S&P, or the equivalent for   any other eligible rating service. Long-term credit ratings are   deemed eligible if the rating is equal to A- or higher by S&P, or the   equivalent from any other eligible rating service. Short-term   credit ratings are deemed eligible if the rating is equal to or   higher than A-2 or SP-2 by S&P, or the equivalent from any other   eligible rating service. In the event that ratings differ among   eligible rating services, the highest rating shall apply when   determining whether a security bears an eligible rating.          (m)  "Eligible rating service" shall mean any Nationally   Recognized Statistical Rating Organization (NRSRO) as defined by   the U.S. Securities and Exchange Commission, and any other   organization designated by the Commissioner by rule or order.          (n)  "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, when such bank, credit   union, savings and loan association, trust company, savings   association, savings bank, industrial bank, or industrial loan   company has federally insured deposits.          (o)  "In this state" means at a physical location within this   state for a transaction requested in person. For a transaction   requested electronically or by phone, the provider of money   transmission may determine if the person requesting the transaction   is "in this state" by relying on other information provided by the   person regarding the location of the individual's residential   address or a business entity's principal place of business or other   physical address location, and any records associated with the   person that the provider of money transmission may have that   indicate such location, including but not limited to an address   associated with an account.          (p)  "Individual" means a natural person.          (q)  "Key individual" means any individual ultimately   responsible for establishing or directing policies and procedures   of the licensee, such as an executive officer, manager, director,   or trustee.          (r)  "Licensee" means a person licensed under this Act.          (s)  "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.          (t)  "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 "monetary value" includes:                (1)  Stablecoin that is fully backed by sovereign   currency and grants the holder the right to redeem the coin for   sovereign currency from the issuer.          (u)  "Money transmission" means any of the following:                (1)  Selling or issuing payment instruments to a person   located in this state.                (2)  Selling or issuing stored value to a person   located in this state.                (3)  Receiving money for transmission from a person   located in this state.   The term includes payroll processing services. The term does not   include the provision solely of online or telecommunications   services or network access.          (v)  "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.          (w)  "Multistate licensing process" means any 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 licensee, control   determinations, or notice and information requirements for a change   of key individuals.          (x)  "Negotiable instrument" has the meaning assigned by   Section 3.104, Business & Commerce Code.          (y)  "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, or any   successor or affiliated entity, for the licensing and registration   of persons in financial services industries.          (z)  "Outstanding money transmission obligations" shall be   established and extinguished in accordance with applicable state   law and shall mean:                (1)  Any payment instrument or stored value issued or   sold by the licensee to a person located in the United States or   reported as sold by an authorized delegate of the licensee to a   person that is located in the United States that has not yet been   paid or refunded by or for the licensee, or escheated in accordance   with applicable abandoned property laws; or                (2)  Any money received for transmission by the   licensee or an authorized delegate in the United States from a   person located in the United States that has not been received by   the payee or refunded to the sender, or escheated in accordance with   applicable abandoned property laws.                (3)  For purposes of this section, "in the United   States" shall include, to the extent applicable, a person in any   state, territory, or possession of the United States; the District   of Columbia; the Commonwealth of Puerto Rico; or a U.S. military   installation that is located in a foreign country.          (aa)  "Passive investor" means a person that:                (1)  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 licensee;                (2)  Is not employed by and does not have any managerial   duties of the licensee or person in control of a licensee;                (3)  Does not have the power to exercise, directly or   indirectly, a controlling influence over the management or policies   of a licensee or person in control of a licensee; and                (4)  Either:                      (A)  Attests to (1), (2), and (3), in a form and in   a medium prescribed by the Commissioner; or                      (B)  Commits to the passivity characteristics of   (1), (2), and (3), in a written document.          (bb)  "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 negotiable. The term does not   include stored value or any instrument that (1) is redeemable by the   issuer only for goods or services provided by the issuer or its   affiliate or franchisees of the issuer or its affiliate, except to   the extent required by applicable law to be redeemable in cash for   its cash value; or (2) not sold to the public but issued and   distributed as part of a loyalty, rewards, or promotional program.          (cc)  "Payroll processing services" means receiving money   for transmission pursuant to a contract with a person to deliver   wages or salaries, make payment of payroll taxes to state and   federal agencies, make payments relating to employee benefit plan],   or make distributions of other authorized deductions from wages or   salaries. The term payroll processing services does not include an   employer performing payroll processing services on its own behalf   or on behalf of its affiliate, or a professional employment   organization subject to regulation under other applicable state   law.          (dd)  "Person" means any individual, general partnership,   limited partnership, limited liability company, corporation,   trust, association, joint stock corporation, or other corporate   entity identified by the Commissioner.          (ee)  "Receiving money for transmission" or "money received   for transmission" means receiving money or monetary value in the   United States for transmission within or outside the United States   by electronic or other means.          (ff)  "Stored value" means monetary value representing a   claim against the issuer evidenced by an electronic or digital   record, and 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, but is not limited to, "prepaid   access" as defined by 31 C.F.R. Section 1010.100, as amended or   recodified from time to time. Notwithstanding the foregoing, the   term "stored value" does not include a payment instrument or 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.          (gg)  "Tangible net worth" shall mean the aggregate assets of   a licensee excluding all intangible assets, less liabilities, as   determined in accordance with United States generally accepted   accounting principles.          (hh)  "Unsafe or unsound act or practice" means a practice of   or conduct by a licensee or an authorized delegate of the licensee   that creates the likelihood of material loss, insolvency, or   dissipation of the licensee's assets, or that otherwise materially   prejudices the interests of the licensee or the licensee's   customers.          Section 151.003 Exemptions. This Act does not apply to:          (a)  An operator of a payment system to the extent that it   provides processing, clearing, or settlement services, between or   among persons exempted by this section or licensees, in connection   with wire transfers, credit card transactions, debit card   transactions, stored-value transactions, automated clearing house   transfers, or similar funds transfers.          (b)  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 itself, provided to the payor by the   payee, provided that:                (1)  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;                (2)  the payee holds the agent out to the public as   accepting payments for goods or services on the payee's behalf; and                (3)  payment for the goods and services is treated as   received by the payee upon receipt by the agent so that 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.          (c)  A person that 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:                (1)  is properly licensed or exempt from licensing   requirements under this Act;                (2)  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                (3)  bears sole responsibility to satisfy the   outstanding money transmission obligation to the sender, including   the obligation to make the sender whole in connection with any   failure to transmit the funds to the sender's designated recipient.          (d)  The United States or a department, agency, or   instrumentality thereof, or its agent.          (e)  Money transmission by the United States Postal Service   or by an agent of the United States Postal Service.          (f)  A state, county, city, or any other governmental agency   or governmental subdivision or instrumentality of a state, or its   agent.          (g)  A federally insured depository financial institution,   bank holding company, office of an international banking   corporation, foreign bank that establishes a federal branch   pursuant to the International Bank Act, 12 U.S.C. Section 3102, as   amended or recodified from time to time, corporation organized   pursuant to the Bank Service Corporation Act, 12 U.S.C. Sections   1861-1867, as amended or recodified from time to time, or   corporation organized under the Edge Act, 12 U.S.C. Sections   611-633, as amended or recodified from time to time, under the laws   of a state or the United States.          (h)  A trust company, as defined by Section 187.001(a), that   is organized under the laws of this state.          (i)  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 thereof, or on behalf of a state or governmental   subdivision, agency, or instrumentality thereof.          (j)  A board of trade designated as a contract market under   the federal Commodity Exchange Act, 7 U.S.C. Sections 1-25, as   amended or recodified from time to time, or a person that, 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 such a board.          (k)  A registered futures commission merchant under the   federal commodities laws to the extent of its operation as such a   merchant.          (l)  A person registered as a securities broker-dealer under   federal or state securities laws to the extent of its operation as   such a broker-dealer.          (m)  An individual employed by a licensee, authorized   delegate, or any person exempted from the licensing requirements of   the Act 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.          (n)  A person expressly appointed as a third party service   provider to or agent of an entity exempt under Section 151.003(g),   solely to the extent that:                (1)  such service provider or agent is engaging in   money transmission on behalf of and pursuant to a written agreement   with the exempt entity that sets forth the specific functions that   the service provider or agent is to perform; and                (2)  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 upon receipt of the   purchaser's or holder's money or monetary value by the service   provider or agent.          (o)  A person exempt by regulation or order if the   Commissioner finds such exemption to be in the public interest and   that the regulation of such person is not necessary for the purposes   of this Act.          Section 151.004 Authority to Require Demonstration of   Exemption. The Commissioner may require that any person claiming to   be exempt from licensing pursuant to Section 151.003 provide   information and documentation to the Commissioner demonstrating   that it qualifies for any claimed exemption.   SUBCHAPTER B. ADMINISTRATIVE PROVISIONS          Section 151.101 Administration.          (a)  The department shall administer this chapter. The   commission may adopt rules to administer and enforce this chapter,   including rules necessary or appropriate to:                (1)  implement and clarify this chapter; and                (2)  recover the cost of maintaining and operating the   department and the cost of administering and enforcing this chapter   and other applicable law by imposing and collecting proportionate   and equitable fees and costs for notices, applications,   examinations, investigations, and other actions required to   achieve the purposes of this chap          (b)  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.          Section 151.102 Purpose. The purpose of this Act is to   protect the interests of purchasers of money services and the   public, preserve and protect the safety and soundness of money   services businesses, and protect against drug trafficking,   terrorist funding, and money laundering, structuring, or related   financial crime.          Section 151.103 Implementation.          (a)  In order to carry out the purposes of this Act, the   Commissioner may, subject to the provisions of Section 151.105(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 Act;                (2)  Use, hire, contract, or employ analytical systems,   methods, or software to examine or investigate any person subject   to this Act.                (3)  Accept, from other state or federal government   agencies or officials, licensing, examination, or investigation   reports made by such 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 licensee and incorporate the audit report in any   report of examination or investigation.          Section 151.104 Commissioner's General Authority.          (a)  Each power granted to the commissioner under this   chapter is in addition to, and not in limitation of, each other   power granted under this chapter. The fact that the commissioner   possesses, or has exercised, a power under a provision of this   chapter does not preclude the commissioner from exercising a power   under any other provision of this chapter.          (b)  Each power granted to the commissioner under this   chapter is in addition to, and not in limitation of, powers granted   to the commissioner under other law. The fact that the commissioner   possesses, or has exercised, a power under any other provision of   law does not preclude the commissioner from exercising any power   under this chapter. The fact that the commissioner possesses, or   has exercised, a power under a provision of this chapter does not   preclude the commissioner from exercising a power under any other   law.          (c)  The commissioner may impose on any authority, approval,   exemption, license, or order issued or granted under this chapter   any condition the commissioner considers reasonably necessary or   appropriate to carry out and achieve the purposes of this chapter.          Section 151.105 Confidentiality.          (a)  Except as otherwise provided in Subsection (b), all   information or reports obtained by the Commissioner from an   applicant, licensee, or authorized delegate, and 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, or financial statements, balance sheets,   or authorized delegate information, are confidential and are not   subject to disclosure under the Public Information Act.          (b)  The Commissioner may disclose information not otherwise   subject to disclosure under Subsection (a) to representatives of   state or federal agencies who promise in a record that they will   maintain the confidentiality of the information or where the   Commissioner finds that the release is reasonably necessary for the   protection and interest of the public in accordance with the Public   Information Act.          (c)  This Section 151.105 does not prohibit the Commissioner   from disclosing to the public a list of all licensees or the   aggregated financial or transactional data concerning those   licensees.          (d)  Information contained in the records of the Department   that is not confidential and may be made available to the public   either on the Department's website, upon receipt by the Department   of a written request, or in NMLS shall include:                (1)  The name, business address, telephone number, and   unique identifier of a licensee;                (2)  The business address of a licensee's registered   agent for service;                (3)  The name, business address, and telephone number   of all authorized delegates;                (4)  The terms of or a copy of any bond filed by a   licensee, provided that confidential information, including, but   not limited to, prices and fees for such bond is redacted;                (5)  Copies of any non-confidential final orders of the   Department relating to any violation of this Act or regulations   implementing this Act; and                (6)  Imposition of an administrative fine or penalty   under this Act.          Section 151.106 Supervision.          (a)  The Commissioner may conduct an examination or   investigation of a licensee or authorized delegate or otherwise   take independent action authorized by this Act or by a rule adopted   or order issued under this Act as reasonably necessary or   appropriate to administer and enforce this Act, regulations   implementing this Act, and other applicable law, including the Bank   Secrecy Act and the USA PATRIOT ACT. The Commissioner may:                (1)  conduct an examination either 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, which on   being accepted is considered for all purposes as an official report   of the Commissioner; and                (4)  summon and examine under oath a key individual or   employee of a licensee or authorized delegate and require the   person to produce records regarding any matter related to the   condition and business of the licensee or authorized delegate.          (b)  A 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. The records must be provided at the location and in the   format specified by the Commissioner, provided, the Commissioner   may utilize multistate record production standards and examination   procedures when such standards will reasonably achieve the   requirements of this section.          (c)  Unless otherwise directed by the Commissioner, a   licensee shall pay all costs reasonably incurred in connection with   an examination of the licensee or the licensee's authorized   delegates.          Section 151.107 Networked Supervision.          (a)  To efficiently and effectively administer and enforce   this Act 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 thereof for all licensees that hold   licenses in this state and other states. As a participant in   multistate supervision, the Commissioner will:                (1)  cooperate, coordinate, and share information with   other state and federal regulators in accordance with Section   151.105 of this Act;                (2)  enter into written cooperation, coordination, or   information-sharing contracts or agreements with organizations the   membership of which is made up of state or federal governmental   agencies; and                (3)  cooperate, coordinate, and share information with   organizations the membership of which is made up of state or federal   governmental agencies, provided that the organizations agree in   writing to maintain the confidentiality and security of the shared   information in accordance with Section 151.105 of this Act.          (b)  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 Act or a rule adopted or order   issued under this Act to enforce compliance with applicable state   or federal law.          (c)  A joint examination or investigation, or acceptance of   an examination or investigation report, does not waive an   examination assessment provided for in this Act.          Section 151.108 Relationship to Federal Law.          (a)  In the event state money transmission jurisdiction is   conditioned on a federal law, any inconsistencies between a   provision of this Act 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 inconsistencies between this Act and   a federal law that governs pursuant to Subsection (a), the   Commissioner may provide interpretive guidance that:                (1)  identifies the inconsistency; and                (2)  identifies the appropriate means of compliance   with federal law.          Section 151.109 Consent To Service Of Process. A 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.   SUBCHAPTER C. MONEY SERVICES LICENSES          Section 151.201 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 Act.          (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:                (1)  A person that is an authorized delegate of a person   licensed under this Act acting within the scope of authority   conferred by a written contract with the licensee; or                (2)  A person that is exempt pursuant to Section   151.003 and does not engage in money transmission outside the scope   of such exemption.                (3)  A person that has been granted an exemption under   Subsection (e).          (d)  A license issued under Section 151.206 is not   transferable or assignable.          (e)  On application and a finding that the exemption is in   the public interest, the commissioner may exempt a person that:                (1)  incidentally engages in the money transmission   business only to the extent reasonable and necessary to accomplish   a primary business objective unrelated to the money transmission   business;                (2)  does not advertise or offer money transmission   services to the public except to the extent reasonable and   necessary to fairly advertise or offer the person's primary   business services; and                (3)  transmits money without a fee as an inducement for   customer participation in the person's primary business.          Section 151.202  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:                (1)  is licensed under this subchapter;                (2)  is an authorized delegate of a person licensed for   money transmission under this subchapter;                (3)  is excluded under Section 151.003; or                 (4)  has been granted an exemption under Subsection   (e).          (b)  For purposes of this chapter, a person engages in the   business of currency exchange if the person exchanges currency and   receives compensation or expects to receive compensation, directly   or indirectly, for the currency exchange.          (c)  A licensee may engage in the currency exchange business   at one or more locations in this state owned, directly or indirectly   by the licensee, under a single license.          (d)  A license issued under Section 151.206 is not   transferable or assignable.          (e)  On application and a 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, provided that a person is not   eligible for the exemption if:                (1)  the value of the goods or services purchased in a   single transaction exceeds $10,000;                (2)  the change given or made as a result of the   transaction exceeds $100;                (3)  an attempt is made to structure a transaction in a   manner that evades the licensing requirements of this subchapter or   avoids using a business licensed 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).          Section 151.203  Consistent State Licensing.          (a)  The commissioner may require that a person submit   through 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 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 151.204(a)(10) or Section 151.204(b)(11).          Section 151.204  Application for a Money Services License.          (a)  Applicants for a license shall apply in a form and in a   medium as prescribed by the Commissioner. Each such form shall   contain content as set forth by rule, regulation, 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 Act and maintain consistency with NMLS   licensing standards and practices. The application must state or   contain, as applicable:                (1)  the legal name and residential and business   addresses of the applicant and any fictitious or trade name used by   the applicant in conducting its 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 next preceding the submission   of the application;                (3)  a description of any money transmission or   currency exchange previously provided by the applicant and the   money transmission or currency exchange that the applicant seeks to   provide in this state;                (4)  if applicable, a list of the applicant's proposed   authorized delegates and the locations in this state where the   applicant and its authorized delegates propose to engage in money   transmission;                (5)  a list of other states in which the applicant is   licensed to engage in money transmission, currency exchange, or   both 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 licensee or a person in   control of a licensee;                (7)  a sample form of contract for authorized   delegates, if applicable;                (8)  a sample form of payment instrument or stored   value, as 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)  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)  if applicable, a certificate of good standing from   the state or country in which the applicant is incorporated or   formed;                (3)  a brief description of the structure or   organization of the applicant, including any parents or   subsidiaries of the applicant, and whether any parents or   subsidiaries are publicly traded;                (4)  the legal name, any fictitious or trade name, all   business and residential addresses, and the employment, as   applicable, in the 10-year period next preceding the submission of   the application of each key individual and person in control of the   applicant;                (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 applying 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 next preceding the   submission of the application or, if applying for a currency   exchange license or if otherwise determined to be acceptable to the   Commissioner, certified unaudited financial statements for the   most recent fiscal year or other period acceptable to the   Commissioner;                (7)  a certified copy of unaudited financial statements   of the applicant for the most recent fiscal quarter;                (8)  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 of the federal   Securities Exchange Act of 1934, 15 U.S.C. Section 78m, as amended   or recodified from time to time;                (9)  if the applicant is a wholly owned subsidiary of:                      (A)  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 of the U.S.   Securities Exchange Act of 1934, 15 U.S.C. Section 78m, as amended   or recodified from time to time; or                      (B)  a corporation publicly traded outside the   United States, a copy of similar documentation filed with the   regulator of the parent corporation's domicile outside the United   States;                (10)  the name and address of the applicant's   registered agent in this state; and                (11)  any other information the Commissioner   reasonably requires with respect to the applicant.          (c)  A nonrefundable application fee in the amount   established by commission rule.          (d)  The Commissioner may waive one or more requirements of   Sections 151.204(a) and (b) or permit an applicant to submit other   information in lieu of the required information.          Section 151.205  Information Requirements for Certain   Individuals.          (a)  Any individual in control of a licensee or applicant,   any individual that seeks to acquire control of a licensee, and each   key individual shall furnish to the Commissioner the following   items:                (1)  The individual's 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 last ten years.                (2)  Personal history and experience in a form and in a   medium prescribed by the Commissioner, to obtain the following:                      (A)  An independent credit report from a consumer   reporting agency unless the individual does not have a Social   Security number, in which case, this requirement shall be waived;                      (B)  Information related to any criminal   convictions or pending charges; and                      (C)  Information related to any regulatory or   administrative action and any civil litigation involving claims of   fraud, misrepresentation, conversion, mismanagement of funds,   breach of fiduciary duty, or breach of contract.          (b)  If the individual has resided outside of the United   States at any time in the last ten years, the individual shall also   provide an investigative background report prepared by an   independent search firm that meets the following requirements:                (1)  At a minimum, the search firm shall:                      (A)  Demonstrate that it has sufficient   knowledge, resources, and employs accepted and reasonable   methodologies to conduct the research of the background report; and                      (B)  Not be affiliated with or have an interest   with the individual it is researching.                (2)  At a minimum, the investigative background report   shall be written in the English language and shall contain the   following:                      (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 such 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 ten   years, including, but not limited to, 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 but not limited to, money transmission,   securities, banking, insurance, and mortgage-related industries.          Section 151.206  Issuance of License.          (a)  When an application for an original license under this   Act appears to include all the items and addresses all of the   matters that are required, the application is complete and the   Commissioner shall promptly notify the applicant in a record of the   date on which the application is determined to be complete, and:                (1)  The Commissioner shall approve or deny the   application within 120 days after the completion date; or                (2)  if the application is not approved or denied   within 120 days after the completion date:                      (A)  the application is approved; and                      (B)  the license takes effect as of the first   business day after expiration of the 120-day period.                      (C)  The Commissioner may for good cause extend   the application period.          (b)  A determination by the Commissioner that an application   is complete and is accepted for processing means only that the   application, on its face, appears to include all of the items,   including the Criminal Background Check response from the FBI, and   address all of the matters that are required, and is not an   assessment of the substance of the application or of the   sufficiency of the information provided.          (c)  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. The   Commissioner shall issue a license to an applicant under this   section if the Commissioner finds that all of the following   conditions have been fulfilled:                (1)  The applicant has complied with Sections 151.204   and 151.205; and                (2)  the financial condition and responsibility,   financial and business experience, competence, character, and   general fitness of the applicant; and the competence, experience,   character, and general fitness of the key individuals and persons   in control of the applicant indicate that it is in the interest of   the public to permit the applicant to engage in money transmission,   currency exchange, or both.          (d)  If an applicant avails itself or is otherwise subject to   a multistate licensing process:                (1)  the Commissioner may accept the investigation   results of a lead investigative state for the purpose of Section   151.206(c) if the lead investigative state has sufficient staffing,   expertise, and minimum standards; or                (2)  if Texas is a lead investigative state, the   Commissioner may investigate the applicant pursuant to Section   151.206(c) and the timeframes established by agreement through the   multistate licensing process, provided however, that in no case   shall such timeframe be noncompliant with the application period in   Section 151.206(a)(1).          (e)  If the commissioner finds that the applicant for any   reason fails to possess the qualifications or satisfy the   requirements for the license for which application is made, the   commissioner shall inform the applicant in writing that the   application is denied and state the reasons for the denial. 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 151.801.          (f)  The initial license term shall begin on the day the   application is approved.          Section 151.207  Maintenance of License.          (a)  If a licensee does not continue to meet the   qualifications or satisfy the requirements that apply to an   applicant for a new money transmission license, the Commissioner   may suspend or revoke the licensee's license in accordance with the   procedures established by this Act or other applicable state law   for such suspension or revocation.          (b)  An applicant for a money transmission license must   demonstrate that it meets or will meet, and a money transmission   licensee must at all times meet, the requirements in Sections   151.701, 151.702, 151.704, and 151.705 of this Act.          (c)  In addition to complying with Subsection (a), a license   holder must annually:                (1)  pay a license fee in an amount established by   commission rule; and                (2)  submit a report that is under oath, is in the form   and medium required by the commissioner, and contains:                      (A)  if the license is a money transmission   license, an audited unconsolidated financial statement dated as of   the last day of the license holder's fiscal year that ended in the   immediately preceding calendar year;                      (B)  if the license is a currency exchange   license, a financial statement, audited or unaudited, dated as of   the last day of the license holder'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 the security, net worth, permissible investments, and   other requirements the license holder must satisfy and whether the   license holder continues to meet the qualifications and   requirements for licensure.          (d)  If the department does not receive a license holder's   annual license fee and complete annual report on or before the due   date prescribed by the commissioner under this section, the   commissioner shall notify the license holder in writing that:                (1)  the license holder shall submit the report and pay   the license fee not later than the 45th day after the due date   prescribed by the commissioner; and                (2)  the license holder must pay a late fee, in an   amount that is established by commission rule and not subject to   appeal, for each business day after the report due date specified by   the commissioner that the commissioner does not receive the   completed report and license fee.          (e)  If the license holder fails to submit the completed   annual report and pay the annual license fee and any late fee due   within the time prescribed by Subsection (d)(1), the license   expires, and the license holder must cease and desist from engaging   in the business of money transmission or currency exchange, as   applicable, as of that date. The expiration of a license is not   subject to appeal.          (f)  On timely receipt of a license holder's complete annual   report, annual license fee, and any late fee due, the department   shall review the report and, if necessary, investigate the   business and records of the license holder. 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 151.803.          (g)  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.          (h)  The holder or principal of or the person in control of   the holder of an expired license, or the holder or principal of or   person in control of the holder of a license surrendered under   Section 151.208, that wishes to conduct activities for which a   license is required under this chapter must file a new license   application and satisfy all requirements for licensure that apply   at the time the new application is filed.          Section 151.208  Surrender of License.          (a)  A 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 licensee shall surrender the licensee's license if the   licensee becomes ineligible for a license issued under this   chapter.          (c)  The surrender of a license does not reduce or eliminate   a 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, to assess an administrative penalty, to order   the payment of restitution, or to exercise any other authority   under this chapter. Further, the surrender of a license does not   release the security required of the licensee under Section 151.702   or 151.703.          Section 151.209  Refunds.          (a)  A fee or cost paid under this chapter is not refundable.   SUBCHAPTER E. ACQUISITION OF CONTROL AND CHANGE OF KEY INDIVIDUAL          Section 151.301  Acquisition of Control.          (a)  Any person, or group of persons acting in concert,   seeking to acquire control of a licensee shall obtain the written   approval of the Commissioner prior to acquiring control. An   individual is not deemed to acquire control of a licensee and is not   subject to these acquisition of control provisions when 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 licensee shall, in cooperation with the   licensee:                (1)  Submit an application in a form and in a medium   prescribed by the Commissioner; and                (2)  Submit a nonrefundable fee in the amount   established by commission rule.          (c)  Upon request, the Commissioner may permit a licensee or   the person, or group of persons acting in concert, to submit some or   all information required by the Commissioner pursuant to Subsection   (b)(1) without using NMLS.          (d)  The application required by Subsection (b)(1) shall   include information required by Section 151.205 for any new key   individuals that have not previously completed the requirements of   Section 151.205 for a 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 shall be considered   complete and the Commissioner shall promptly notify the applicant   in a record of the date on which the application was determined to   be complete and:                (1)  The Commissioner shall approve or deny the   application within 60 days after the completion date; or                (2)  if the application is not approved or denied   within 60 days after the completion date:                      (A)  the application is approved; and                      (B)  the person, or group of persons acting in   concert, are not prohibited from acquiring control.                (3)  The Commissioner may for good cause extend the   application period.          (f)  A determination by the Commissioner that an application   is complete and is accepted for processing means only that the   application, on its face, appears to include all of the items and   address all of the matters that are required, and is not an   assessment of the substance of the application or of the   sufficiency of the information provided.          (g)  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. The   Commissioner shall approve an acquisition of control pursuant to   this section if the Commissioner finds that all of the following   conditions have been fulfilled:                (1)  The requirements of Subsections (b) and (d) have   been met, as applicable; and                (2)  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 the competence,   experience, character, and general fitness of the key individuals   and persons that would be in control of the licensee after the   acquisition of control indicate that it is in the interest of the   public to permit the person, or group of persons acting in concert,   to control the licensee.          (h)  If an applicant avails itself or is otherwise subject to   a multistate licensing process:                (1)  the Commissioner may accept the investigation   results of a lead investigative state for the purpose of Subsection   (g) if the lead investigative state has sufficient staffing,   expertise, and minimum standards; or                (2)  if Texas is a lead investigative state, the   Commissioner may investigate the applicant pursuant to Subsection   (g) and the timeframes established by agreement through the   multistate licensing process.          (i)  If the commissioner determines that the proposed person   in control fails to meet the qualifications, standards, and   requirements of this chapter, the commissioner shall inform the   license holder and the proposed person in control in writing that   the application is denied and state the reasons for the denial. The   license holder 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 151.801.          (j)  The requirements of Subsections (a) and (b) do not apply   to any of the following:                (1)  A person that 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 licensee or a person in   control of a licensee;                (2)  A person that acquires control of a licensee by   devise or descent;                (3)  A person that acquires control of a 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 that is exempt under Section 151.003(g);                (5)  A person that the Commissioner determines is not   subject to Subsection (a) based on the public interest;                (6)  A public offering of securities of a licensee or a   person in control of a licensee; or                (7)  An internal reorganization of a person in control   of the licensee where the ultimate person in control of the licensee   remains the same.          (k)  Persons in Subsections (j)(2), (3), (4), (6), (7) in   cooperation with the licensee shall notify the Commissioner within   15 days after the acquisition of control.          (l)  Streamlined Acquisition of Control                (1)  The requirements of Subsections (a) and (b) do not   apply to a person that has complied with and received approval to   engage in money transmission under this Act or was identified as a   person in control in a prior application filed with and approved by   the Commissioner or by an MSB accredited state pursuant to a   multistate licensing process, provided that:                      (A)  the person has not had a license revoked or   suspended or controlled a licensee that has had a license revoked or   suspended while the person was in control of the licensee in the   previous 5-years;                      (B)  if the person is a licensee, the person is   well managed and has received at least a satisfactory rating for   compliance at its most recent examination by an MSB accredited   state if such rating was given;                      (C)  the licensee to be acquired is projected to   meet the requirements of Sections 151.701, 151.702, and 151.705 of   this Act after the acquisition of control is completed, and if the   person acquiring control is a licensee, that licensee is also   projected to meet the requirements of Sections 151.701, 151.702,   and 151.705 of this Act after the acquisition of control is   completed;                      (D)  the licensee to be acquired will not   implement any material changes to its business plan as a result of   the acquisition of control, and if the person acquiring control is a   licensee, that licensee also will not implement any material   changes to its business plan as a result of the acquisition of   control; and                      (E)  the person provides notice of the acquisition   in cooperation with the licensee and attests to Subsections   (k)(1)(A), (B), (C), and (D) in a form and in a medium prescribed by   the Commissioner.                (2)  If the notice is not disapproved within 30 days   after the date on which the notice was determined to be complete,   the notice is deemed approved.          (m)  Before filing an application for approval to acquire   control of a 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 licensee upon consummation of   a proposed transaction. If the Commissioner determines that the   person would not be a person in control of a licensee, the proposed   Person and transaction is not subject to the requirements of   Subsections (a) and (b).          (n)  If a multistate licensing process includes a   determination pursuant to Subsection (m) and an applicant avails   itself or is otherwise 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 (m); or                (2)  If state is a lead investigative state, the   Commissioner may investigate the applicant pursuant to Subsection   (m) and the timeframes established by agreement through the   multistate licensing process,          Section 151.302  Notice and Information Requirements for a   Change of Key Individuals.          (a)  A licensee adding or replacing any key individual shall:                (1)  Provide notice in a manner prescribed by the   Commissioner within 15 days after the effective date of the key   individual's appointment; and                (2)  Provide information as required by Section 151.205   within 45 days of the effective date.          (b)  Within 90 days of the date on which the notice provided   pursuant to Subsection (a) was determined to be complete, the   Commissioner may issue a notice of disapproval of a key individual   if the competence, experience, character, or integrity of the   individual would not be in the best interests of the public or the   customers of the licensee to permit the individual to be a key   individual of such licensee.          (c)  A notice of disapproval shall contain a statement of the   basis for disapproval and shall be sent to the licensee and the   disapproved individual. A 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 151.901.          (d)  If the notice provided pursuant to Subsection (a) is not   disapproved within 90 days after the date on which the notice was   determined to be complete, the key individual is deemed approved.          (e)  If a multistate licensing process includes a key   individual notice review and disapproval process pursuant to this   section and the licensee avails itself or is otherwise 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 purpose of this section;   or                (2)  if Texas is a lead investigative state, the   Commissioner may investigate the applicant pursuant to Subsection   (b) and the timeframes established by agreement through the   multistate licensing process.   SUBCHAPTER F. REPORTING AND RECORDS          Section 151.401  Report of Condition.          (a)  Each money transmission licensee shall submit a report   of condition within 45 days of the end of the calendar quarter, or   within any extended time as the Commissioner may prescribe.          (b)  The report of condition shall include:                (1)  Financial information at the licensee level;                (2)  Nationwide and state-specific money transmission   transaction information in every jurisdiction in the United States   where the licensee is licensed to engage in money transmission;                (3)  Permissible investments report;                (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. The Commissioner may utilize   NMLS for the submission of the report required by this section and   is authorized to change or update as necessary the requirements of   this section to carry out the purposes of this Act and maintain   consistency with NMLS reporting.          (c)  The information required by Subsection (b)(4) shall   only be included in a report of condition submitted within 45 days   of the end of the fourth calendar quarter.          Section 151.402  Currency Exchange Report                (a)  Each currency exchange licensee shall submit a   quarterly interim financial statement and transaction report that   reflects the licensee's financial condition and currency exchange   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 last day of the calendar quarter; and                (b)  any other report required by rule of the   commission or reasonably requested by the commissioner to determine   compliance with this chapter.                (c)  A 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.                (d)  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.          Section 151.403  Financial Statements.                (a)  Each licensee shall, within 90 days after the end   of each fiscal year, or within any extended time as the Commissioner   may prescribe, file with the Commissioner:                      (1)  If the licensee holds a money transmission   license, an audited unconsolidated financial statement of the   licensee for the fiscal year prepared in accordance with United   States generally accepted accounting principles;                      (2)  If the licensee holds a currency exchange   license, 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)  The audited unconsolidated financial statements   shall be prepared by an independent certified public accountant or   independent public accountant who is satisfactory to the   Commissioner;                (c)  The audited financial statements shall 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 or opinion is qualified, the Commissioner may order the   licensee to take any action as the Commissioner may find necessary   to enable the independent or certified public accountant or   independent public accountant to remove the qualification.          Section 151.404 Authorized Delegate Reporting.                (a)  Each licensee shall submit a report of authorized   delegates within 45 days of the end of the calendar quarter. The   Commissioner may utilize NMLS for the submission of the report   required by this section provided that such functionality is   consistent with the requirements of this section.                (b)  The authorized delegate report shall include, at a   minimum, each authorized delegate's:                      (1)  Company legal name;                      (2)  Taxpayer employer identification number;                      (3)  Principal provider identifier;                      (4)  Physical address;                      (5)  Mailing address;                      (6)  Any business conducted in other states;                      (7)  Any fictitious or trade name;                      (8)  Contact person name, phone number, and email                      (9)  Start date as licensee's authorized   delegate;                      (10)  End date acting as licensee's authorized   delegate, if applicable; and                      (11)  Any other information the Commissioner   reasonably requires with respect to the authorized delegate.          Section 151.405  Reports of Certain Events.                (a)  A licensee shall file a report with the   Commissioner within one business day after the licensee has reason   to know of the occurrence of any of the following events:                      (1)  the filing of a petition by or against the   licensee under the United States Bankruptcy Code, 11 U.S.C. Section   101-110, as amended or recodified from time to time, 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 its dissolution or   reorganization, or the making of a general assignment for the   benefit of its creditors; or                      (3)  the commencement of a proceeding to revoke or   suspend its license in a state or country in which the licensee   engages in business or is licensed.                (b)  A licensee shall file a report with the   Commissioner within three business day after the licensee has   reason to know of the occurrence of any of the following events:                      (1)  a charge or conviction of the licensee or of a   key individual or person in control of the licensee for a felony; or                      (2)  a charge or conviction of an authorized   delegate for a felony.          Section 151.406  Bank Secrecy Act Reports.          A licensee and an authorized delegate shall file all reports   required by federal currency reporting, record keeping, and   suspicious activity reporting requirements as set forth in the Bank   Secrecy Act and other federal and state laws pertaining to money   laundering. The timely filing of a complete and accurate report   required under this section with the appropriate federal agency is   deemed compliant with the requirements of this section.          Section 151.407  Records.                (a)  Licensee shall maintain the following records, for   determining its compliance with this Act for at least five years:                      (1)  a record of each outstanding money   transmission obligation sold;                      (2)  a record of each currency exchange   transaction;                      (3)  a general ledger posted at least monthly   containing all asset, liability, capital, income, and expense   accounts;                      (4)  bank statements and bank reconciliation   records;                      (5)  records of outstanding money services   obligations;                      (6)  records of each outstanding money services   obligation paid within the five-year period;                      (7)  a list of the last known names and addresses   of all of the licensee's authorized delegates; and                      (8)  any other records the Commissioner   reasonably requires by rule.                (b)  The items specified in Subsection (a)(1) may be   maintained in any form of record.                (c)  Records specified in Subsection (a) may be   maintained outside this state if they are made accessible to the   Commissioner on seven business-days' notice that is sent in a   record.                (d)  All records maintained by the licensee as required   in Subsections (a)-(c) are open to inspection by the Commissioner   pursuant to Section 151.106(a).   SUBCHAPTER G. AUTHORIZED DELEGATES          Section 151.501  Liability of 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 in accordance with   Section 151.502.          Section 151.502  Relationship Between Licensee and   Authorized Delegate.                (a)  In this section, "remit" means to make direct   payments of money to a licensee or its representative authorized to   receive money or to deposit money in a bank in an account specified   by the licensee.                (b)  Before a licensee is authorized to conduct   business through an authorized delegate or allows 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 delegates comply with applicable state and   federal law;                      (2)  enter into a written contract 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 and will likely comply with   applicable state and federal law.                (c)  An authorized delegate must operate in full   compliance with this Act.                (d)  The written contract required by Subsection (b)   must be signed by the licensee and the authorized delegate and, at a   minimum, must:                      (1)  appoint the person signing the contract as   the licensee's authorized delegate with the authority to conduct   money transmission on behalf of the licensee;                      (2)  set forth 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, including this Act   and regulations implementing this Act, relevant provisions of the   Bank Secrecy Act and the USA 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 Act or regulations   implementing this Act, 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 the licensee's license is suspended, revoked,   surrendered, or expired, the licensee must, within five (5)   business days, 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.   Upon suspension, revocation, surrender, or expiration of a license,   applicable authorized delegates shall immediately cease to provide   money transmission as an authorized delegate of the licensee.                (f)  An authorized delegate of a licensee holds in   trust for the benefit of the licensee all money net of fees received   from money transmission. If any 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 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 licensee.          Section 151.503  Disclosure Requirements                (a)  A 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 licensee receiving currency or an instrument   payable in currency for transmission must comply with Chapter 278.          Section 151.504  Unauthorized Activities          A person shall not engage in the business of money   transmission on behalf of a person not licensed under this Act or   not exempt pursuant to Section 151.003 of this Act. A person that   engages in such activity provides money transmission to the same   extent as if the person were a 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 H. TIMELY TRANSMISSION, REFUNDS, AND DISCLOSURES          Section 151.601  Timely Transmission.                (a)  Every licensee shall forward all money received   for 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 licensee fails to forward money received for   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.          Section 151.602  Refunds.                (a)  This section does not apply to:                      (1)  money received for transmission subject to   the federal Remittance Rule (12 C.F.R. Part 1005, Subpart B), as   amended or recodified from time to time; or                      (2)  money received for transmission pursuant to a   written agreement between the licensee and payee to process   payments for goods or services provided by the payee.                (b)  Every licensee shall refund to the sender within   10 days of receipt of the sender's written request for a refund of   any and all money received for transmission unless any of the   following occurs:                      (1)  The money has been forwarded within 10 days   of 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   within 10 days of the date on which the money was received for   transmission;                      (3)  The agreement between the licensee and the   sender instructs the licensee to forward the money at a time that is   beyond 10 days of the date on which the money was received for   transmission. If funds have not yet been forwarded in accordance   with the terms of the agreement between the licensee and the sender,   the licensee shall issue a refund in accordance with the other   provisions of this section; or                      (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.                      (5)  The refund request does not enable the   licensee to:                            (A)  Identify the sender's name and address   or telephone number; or,                            (B)  Identify the particular transaction to   be refunded in the event the sender has multiple transactions   outstanding.          Section 151.603  Receipts.                (a)  This section does not apply to:                      (1)  Money received for transmission subject to   the federal Remittance Rule (12 C.F.R. Part 1005, Subpart B), as   amended or recodified from time to time;                      (2)  money received for transmission that is not   primarily for personal, family or household purposes;                      (3)  money received for transmission pursuant to a   written agreement between the licensee and payee to process   payments for goods or services provided by the payee; or                      (4)  payroll processing services.                (b)  For purposes of this section "receipt" means a   paper receipt, electronic record or other written confirmation. For   a transaction conducted in person, the 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.                (c)  Every licensee or its authorized delegate shall   provide the sender a receipt for money received for transmission.                      (1)  The receipt shall contain the following   information, as applicable:                            (A)  The name of the sender;                            (B)  The name of the designated recipient;                            (C)  The date of the transaction;                            (D)  The unique transaction or   identification number;                            (E)  The name of the licensee, NMLS Unique   ID, the licensee's business address, and the licensee's customer   service telephone number;                            (F)  The amount of the transaction in United   States dollars;                            (G)  Any fee charged by the licensee to the   sender for the transaction; and                            (H)  Any taxes collected by the licensee   from the sender for the transaction.                      (2)  The receipt required by this section shall be   in English and in the language principally used by the licensee or   authorized delegate to advertise, solicit, or negotiate, either   orally or in writing, for a transaction conducted in person,   electronically or by phone, if other than English.          Section 151.604  Disclosures for Payroll Processing   Services.                (a)  A 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 paystubs or an   equivalent statement to workers.                (b)  Subsection (a) does not apply to a 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 I. PRUDENTIAL STANDARDS.          Section 151.701  Net Worth.                (a)  A money transmission licensee under this Act shall   maintain at all times a tangible net worth of the greater of   $100,000 or 3 percent of total assets for the first $100 million, 2   percent of additional assets for $100 million to $1 billion, and 0.5   percent of additional assets for over $1 billion.                (b)  Tangible net worth must be demonstrated at initial   application by the applicant's most recent audited or unaudited   financial statements pursuant to Section 151.204(b)(6).                (c)  Notwithstanding the foregoing provisions of this   section, the Commissioner shall have the authority, for good cause   shown, to exempt, in-part or in whole, from the requirements of this   section any applicant or licensee.          Section 151.702  Security for Money Transmission.                (a)  An applicant for a money transmission license must   provide, and a licensee at all times must maintain, security   consisting of a surety bond in a form satisfactory to the   Commissioner or, with the Commissioner's approval, a deposit   instead of a bond in accordance with this section.                (b)  The amount of the required security shall be:                      (1)  the greater of $100,000 or an amount equal to   one hundred percent of the licensee's average daily money   transmission liability in this state calculated for the most   recently completed three-month period, up to a maximum of $500,000;   or                      (2)  in the event that the licensee's tangible net   worth exceeds 10% of total assets, the licensee shall maintain a   surety bond of $100,000.                (c)  A licensee that maintains a bond in the maximum   amount provided for in Subsections (b)(1) or (2), as applicable   shall not be required to calculate its average daily money   transmission liability in this state for purposes of this section.                (d)  A licensee may exceed the maximum required bond   amount pursuant to Section 151.705(a)(5).          Section 151.703  Security for Currency Exchange.                (a)  An applicant for a currency exchange license must   provide and a currency exchange licensee must maintain at all times   security in the amount applicable to the applicant or licensee   under this section.                (b)  An applicant must provide and a licensee must   maintain security in the amount of $2,500 if the applicant will   conduct or 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 (d), if   Subsection (b) does not apply to:                      (1)  the applicant, the applicant must provide   security in the amount that is the greater of:                            (A)  $2,500; or                            (B)  an amount equal to one percent of the   applicant's projected total dollar volume of currency exchange   business in this state for the first year of licensure; or                      (2)  the licensee, the licensee must maintain   security in the amount that is the greater of:                            (A)  $2,500; or                            (B)  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)  The maximum amount of security that may be   required under Subsection (c) is $1 million.          Section 151.704  Additional Requirements for Security.                (a)  Subsections (b)-(i) of this section define   additional requirements applicable to the security provided   pursuant to Sections 151.702 and 151.703.                (b)  The security 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 the license holder'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.                (c)  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.                (d)  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 license holder.   If the security is a surety bond, the commissioner shall give the   surety reasonable prior notice of a hearing to impose an   administrative penalty against the license holder, provided that a   surety may not be considered an interested, aggrieved, or affected   person for purposes of an administrative proceeding under Section   151.901 or Chapter 2001, Government Code.                (e)  The 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.                (f)  The security shall cover claims for at least five   years after the license holder surrenders its 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 license holder's obligations to the   department and to purchasers in this state is reduced. The   commissioner may permit a license holder to substitute another form   of security when the license holder ceases to provide money   transmission in this state.                (g)  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 license holder to file or make new   or additional security to comply with this section.                (h)  Instead of providing all or part of the amount of   the security required by this section, an applicant or license   holder 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. The deposit:                      (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 license holder in the   event of bankruptcy, receivership, or a claim against the license   holder unrelated to the license holder's obligations under this   chapter.          Section 151.705  Maintenance of Permissible Investments.                (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 enumerated in   Section 151.706(a), the Commissioner, with respect to any 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 licensee's outstanding   money transmission obligations in the event of insolvency, the   filing of a petition by or against the licensee under the United   States Bankruptcy Code, 11 U.S.C. Section 101-110, as amended or   recodified from time to time, for bankruptcy or reorganization, the   filing of a petition by or against the licensee for receivership,   the commencement of any other judicial or administrative proceeding   for its dissolution or reorganization, or in the event of an action   by a creditor against the licensee who is not a beneficiary of this   statutory trust. No permissible investments impressed with a trust   pursuant to this section shall be subject to attachment, levy of   execution, or sequestration by order of any court, except for a   beneficiary of this statutory trust.                (d)  Upon the establishment of a statutory trust in   accordance with Subsection (c) or when any funds are drawn on a   letter of credit pursuant to Section 151.705(a)(4), the   Commissioner shall notify the applicable regulator of each state in   which the licensee is licensed to engage in money transmission, if   any, of the establishment of the trust or the funds drawn on the   letter of credit, as applicable. Notice shall be deemed satisfied   if performed pursuant to a multistate agreement or through NMLS.   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 licensee's outstanding money transmission   obligations, are deemed held in trust for the benefit of such   purchasers and holders on a pro rata and equitable basis in   accordance with statutes pursuant to which permissible investments   are required to be held in this state, and other states, as   applicable. Any statutory trust established hereunder shall be   terminated upon extinguishment of all of the licensee's outstanding   money transmission obligations.                (e)  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 is authorized to 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.          Section 151.706  Types of Permissible Investments.          (a)  The following investments are permissible under Section   151.705:                (1)  cash (including demand deposits, savings   deposits, and funds in such accounts held for the benefit of the   licensee's customers in a federally insured depository financial   institution) and cash equivalents including ACH items in transit to   the licensee and ACH items or international wires in transit to a   payee, cash in transit via armored car, cash in smart safes, cash in   licensee-owned locations, debit card or credit card-funded   transmission receivables owed by any bank, or money market mutual   funds rated "AAA" by S&P, or the equivalent from any eligible rating   service;                (2)  certificates of deposit or senior debt obligations   of an insured depository institution, as defined in Section 3 of the   Federal Deposit Insurance Act, 12 U.S.C. Section 1813, as amended   or recodified from time to time, or as defined under the federal   Credit Union Act, 12 U.S.C. Section 1781, as amended or recodified   from time to time;                (3)  an obligation of the United States or a   commission, agency, or instrumentality thereof; an obligation that   is guaranteed fully as to principal and interest by the United   States; or an obligation of a state or a governmental subdivision,   agency, or instrumentality thereof;                (4)  the full drawable amount of an irrevocable standby   letter of credit for which the stated beneficiary is the   Commissioner that stipulates that the beneficiary need only draw a   sight draft under the letter of credit and present it to obtain   funds up to the letter of credit amount upon presentation of the   items required by Subsection (a)(4)(C).                      (A)  The letter of credit must:                            (i)  Be issued by a federally insured   depository financial institution, a foreign bank that is authorized   under federal law to maintain a federal agency or federal branch   office in a state or states, or a foreign bank that is authorized   under state law to maintain a branch in a state that (1) bears an   eligible rating or whose parent company bears an eligible rating;   (2) is regulated, supervised, and examined by United States federal   or state authorities having regulatory authority over banks, credit   unions, and trust companies; and (3) is approved by the   Commissioner.                            (ii)  Be irrevocable, unconditional and   indicate that it is not subject to any condition or qualifications   outside of the letter of credit;                            (iii)  Not contain reference to any other   agreements, documents or entities, or otherwise provide for any   security interest in the licensee; and                            (iv)  Contain an issue date and expiration   date, and expressly provide for automatic extension, without a   written amendment, for an additional period of one year from the   present or each future expiration date, unless the issuer of the   letter of credit notifies the Commissioner in writing by certified   or registered mail or courier mail or other receipted means, at   least sixty (60) days prior to any expiration date, that the   irrevocable letter of credit will not be extended.                      (B)  In the event of any notice of expiration or   non-extension of a letter of credit issued under Subsection   (a)(4)(A)(iv), the licensee shall be required to demonstrate to the   satisfaction of the Commissioner, 15 days prior to expiration, that   the licensee maintains and will maintain permissible investments in   accordance with Section 151.705(a) upon the expiration of the   letter of credit. If the licensee is not able to do so, 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 151.705(a). Any   such draw shall be offset against the licensee's outstanding money   transmission obligations. The drawn funds shall be held in trust by   the Commissioner or the Commissioner's designated agent, to the   extent authorized by law, as agent for the benefit of the purchasers   and holders of the licensee's outstanding money transmission   obligations.                      (C)  The letter of credit shall provide that the   issuer of the letter of credit will honor, at sight, a presentation   made by the beneficiary to the issuer of the following documents on   or prior to the expiration date of the letter of credit:                            (i)  The original letter of credit   (including any amendments); and                            (ii)  A written statement from the   beneficiary stating that any of the following events have occurred:                                  1.  the filing of a petition by or   against the licensee under the United States Bankruptcy Code, 11   U.S.C. Section 101-110, as amended or recodified from time to time,   for bankruptcy or reorganization;                                  2.  the filing of a petition by or   against the licensee for receivership, or the commencement of any   other judicial or administrative proceeding for its dissolution or   reorganization;                                  3.  the seizure of assets of a licensee   by a Commissioner pursuant to 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                                  4.  The beneficiary has received   notice of expiration or non-extension of a letter of credit and the   licensee failed to demonstrate to the satisfaction of the   beneficiary that the licensee will maintain permissible   investments in accordance with Section 151.705(a) upon the   expiration or non-extension of the letter of credit.                      (D)  The Commissioner may designate an agent to   serve on the Commissioner's behalf as beneficiary to a letter of   credit so long as 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.                      (E)  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.                (5)  One hundred percent of the surety bond or deposit   provided for under Section 151.702 that exceeds the average daily   money transmission liability in this state.                (6)  Stablecoin but only to the extent of outstanding   transmission obligations received by the licensee in like kind   stablecoin.          (b)  Unless permitted by the Commissioner to exceed the limit   as set forth herein, the following investments are permissible   under Section 151.705 to the extent specified:                (1)  receivables that are payable to a licensee from   its authorized delegates in the ordinary course of business that   are less than seven days old, up to 50% of the aggregate value of the   licensee's total permissible investments;                (2)  of the receivables permissible under Subsection   (b)(1), receivables that are payable to a licensee from a single   authorized delegate in the ordinary course of business may not   exceed 10% of the aggregate value of the licensee's total   permissible investments.                (3)  the following investments are permissible up to   20% per category and combined up to 50% of the aggregate value of   the licensee's total permissible investments:                      (A)  A short-term (up to six months) investment   bearing an eligible rating;                      (B)  Commercial paper bearing an eligible rating;                      (C)  A bill, note, bond, or debenture bearing an   eligible rating;                      (D)  U.S. tri-party repurchase agreements   collateralized at 100% or more with U.S. government or agency   securities, municipal bonds, or other securities bearing an   eligible rating;                      (E)  Money market mutual funds rated less than   "AAA" and equal to or higher than "A-" by S&P, or the equivalent   from any other 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).                (4)  cash (including demand deposits, savings   deposits, and funds in such accounts held for the benefit of the   licensee's customers) at foreign depository institutions are   permissible up to 10% of the aggregate value of the licensee's total   permissible investments if the licensee has received a satisfactory   rating in its most recent examination and the foreign depository   institution:                      (A)  has an eligible rating;                      (B)  is registered under the Foreign Account Tax   Compliance Act;                      (C)  is not located in any country subject to   sanctions from the Office of Foreign Asset Control; and                      (D)  is not located in a high-risk or   non-cooperative jurisdiction as designated by the Financial Action   Task Force.   SUBCHAPTER J. Enforcement          Section 151.801  Injunctive Relief.          (a)  Whenever it appears that a person has violated, or that   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.          Section 151.802  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 151.709, unless the   order is issued as an emergency order. The commissioner may issue   an emergency cease and desist order in accordance with Section   151.710 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.          Section 151.803  Suspension and Revocation of License.          (a)  The commissioner must revoke a license if the   commissioner finds that:                (1)  the net worth of the licensee is less than the   amount required under this chapter; or                (2)  the licensee does not provide the security   required under this chapter.          (b)  The commissioner may suspend or revoke a license or   order a licensee to revoke the designation of an authorized   delegate if the commissioner has reason to believe that:                (1)  the 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 licensee has refused to permit or has not   cooperated with an examination or investigation authorized by this   chapter;                (3)  the 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 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 licensee or an authorized delegate of the licensee,   or a principal of, person in control of, or responsible person of a   licensee or authorized delegate, indicates that it is not in the   public interest to permit the licensee or authorized delegate to   provide money services;                (6)  the licensee has engaged in an unsafe or unsound   act or practice or has conducted business in an unsafe or unsound   manner;                (7)  the 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 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 licensee applied for the license, would have   been grounds for denying the application;                (10)  the licensee has engaged in false, misleading, or   deceptive advertising;                (11)  the 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 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 licensee has committed a breach of trust or of   a fiduciary duty.          (c)  In determining whether a 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   license or directing a licensee to revoke the designation of an   authorized delegate is subject to Section 151.709, unless the order   is issued as an emergency order. The commissioner may issue an   emergency order suspending a license or directing a licensee to   revoke the designation of an authorized delegate in accordance with   Section 151.810 if the commissioner finds that the factors   identified in Section 151.810(b) exist.          Section 151.804  Suspension and Revocation of Authorized   Delegate Designation.          (a)  The commissioner may suspend or revoke the designation   of an authorized delegate if the commissioner has reason to believe   that:                (1)  the authorized delegate has violated this chapter,   a rule adopted or order issued under this chapter, a written   agreement entered into with the commissioner or the department, or   any other state or federal law applicable to a money services   business;                (2)  the authorized delegate has refused to permit or   has not cooperated with an examination or investigation under this   chapter;                (3)  the authorized delegate has engaged in fraud,   knowing misrepresentation, deceit, gross negligence, or an unfair   or deceptive act or practice in connection with the operation of the   delegate's business on behalf of the 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 services;                (5)  the authorized delegate has engaged in an unsafe   or unsound act or practice or conducted business in an unsafe and   unsound manner;                (6)  the authorized delegate, or a principal or   responsible person of the authorized delegate, is listed on the   specifically designated nationals and blocked persons list   prepared by the United States Department of the Treasury as a   potential threat to commit terrorist acts or to fund terrorist   acts; or                (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 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 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   151.709, 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   151.710 if the commissioner finds that the factors identified in   Section 151.710(b) exist.          Section 151.805  Cease and Desist Orders for Licensees or   Authorized Delegates.          (a)  The commissioner may issue an order to cease and desist   if the commissioner finds that:                (1)  an action, violation, or condition listed in   Section 151.803 or 151.804 exists with respect to a licensee or   authorized delegate; and                (2)  a cease and desist order is necessary to protect   the interests of the licensee, the purchasers of the licensee's   money services, or the public.          (b)  A cease and desist order may require a 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   151.809, unless the order is issued as an emergency order. The   commissioner may issue an emergency cease and desist order in   accordance with Section 151.810 if the commissioner finds that the   factors identified in Section 151.810(b) exist.          Section 151.806  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 this chapter or a rule   adopted or order issued under this chapter has been violated.          (c)  A consent order is a final order and may not be appealed.          Section 151.807  Administrative Penalty.          (a)  After notice and hearing, the commissioner may assess an   administrative penalty against a person that:                (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 licensee, has engaged in conduct   specified in Section 151.803;                (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   151.801.          (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 licensee or a   licensee's authorized delegate, from the proceeds of the licensee's   security in accordance with Section 151.308(e).          Section 151.808  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   license is required under Subchapter D or F 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.          Section 151.809  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   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 nonappealable 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   151.901(b).          Section 151.810  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 licensee;                      (B)  has caused or is likely to cause the   substantial dissipation of the licensee's assets or earnings;                      (C)  has seriously weakened or is likely to   seriously weaken the condition of the licensee; or                      (D)  has seriously prejudiced or is likely to   seriously prejudice the interests of the licensee, a purchaser of   the licensee's money services, or the public; and                (2)  immediate action is necessary to protect the   interests of the 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   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 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 nonappealable 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 151.901(b).   SUBCHAPTER K. MISCELLANEOUS PROVISIONS          Section 151.901  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.          Section 151.902  Uniformity of Application and   Construction.          In applying and construing this Act, consideration must be   given to the need to promote uniformity of the law with respect to   its subject matter among states that enact it.          Section 151.903  Severability Clause.          If any provision of this Act or its application to any person   or circumstance is held invalid, the invalidity does not affect   other provisions or applications of this Act which can be given   effect without the invalid provision or application, and to this   end the provisions of this Act are severable.          SECTION 2.  (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 151, Finance Code. By September 1, 2024, a   licensee must satisfy the minimum requirements to maintain a   license established in Chapter 151, Finance Code, as added by this   Act.          (b)  A contract between a licensee and an authorized delegate   that is in effect on September 1, 2023, remains in effect until the   earlier of the date the contract is renewed or December 31, 2024. A   new or renewal contract entered into between a licensee and an   authorized delegate after the effective date of this Act must   satisfy the contract requirements established in Chapter 151,   Finance Code, as added by this Act.          (e)  The Finance Commission of Texas may adopt rules to   further provide for the orderly transition to licensing and   regulation under this Act.          SECTION 3.  Chapter 151, Finance Code, is repealed.          SECTION 4.  Section 278.001(1), Finance Code, is amended to   read as follows:                (1)  "Currency" means the coin and paper money issued   by the United States or another country that is designated as legal   tender and circulates and is customarily used and accepted as a   medium of exchange in the country of issuance.          SECTION 5.  This Act takes effect September 1, 2023