HB1516 - Relating to prohibiting the imposition of a monetary fine or penalty for a violation of a money services business's terms of service agreement; providing a civil penalty.

  89R2996 MLH-F     By: Schofield H.B. No. 1516       A BILL TO BE ENTITLED   AN ACT   relating to prohibiting the imposition of a monetary fine or   penalty for a violation of a money services business's terms of   service agreement; providing a civil penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  The heading to Subchapter G, Chapter 152,   Finance Code, is amended to read as follows:   SUBCHAPTER G.   GENERAL DUTIES AND RESTRICTIONS FOR  [ TIMELY   TRANSMISSION, REFUNDS, AND DISCLOSURES BY ] MONEY TRANSMISSION   LICENSEE          SECTION 2.  Subchapter G, Chapter 152, Finance Code, is   amended by adding Section 152.305 to read as follows:           Sec.   152.305.     PROHIBITION ON IMPOSITION OF FINE OR PENALTY   FOR TERMS OF SERVICE VIOLATION.     (a)     A money transmission   licensee may not include in the licensee's terms of service   agreement a provision allowing or providing for a monetary fine or   penalty for violating any provision of the terms of service   agreement.           (b)     This section may not be construed to prevent a money   transmission licensee from closing a customer account as a result   of a customer's violation of the licensee's terms of service   agreement.           (c)     In addition to any other relief provided for a violation   of this chapter, a money transmission licensee that violates this   section is liable to this state for a civil penalty in an amount   equal to three times the amount of the fine or penalty imposed by   the licensee.           (d)     The attorney general may bring an action in the name of   the state to recover the civil penalty under Subsection (c).     The   attorney general may recover attorney's fees and costs incurred in   bringing an action under Subsection (c).          SECTION 3.  This Act applies only to a terms of service   agreement entered into after the effective date of this Act.  A   terms of service agreement entered into before the effective date   of this Act is governed by the law as it existed immediately before   the effective date of this Act, and the former law is continued in   effect for that purpose.          SECTION 4.  This Act takes effect September 1, 2025.