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TX HB1516
Bill
Status
12/4/2024
Primary Sponsor
Mike Schofield
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AI Summary
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Prohibits money transmission licensees from including provisions in their terms of service agreements that impose monetary fines or penalties on customers for violating the agreement
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Preserves the right of money transmission licensees to close customer accounts for terms of service violations, despite the prohibition on monetary penalties
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Establishes a civil penalty equal to three times the amount of any fine or penalty imposed by a licensee in violation of the prohibition
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Authorizes the Texas Attorney General to bring legal action to recover civil penalties, plus attorney's fees and costs
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Applies only to terms of service agreements entered into on or after September 1, 2025; existing agreements remain governed by prior law
Legislative Description
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.
Business & Commerce
Last Action
Referred to Pensions, Investments & Financial Services
3/12/2025