Adopted Amendments to 7 TAC §33.13

Title 7. Banking and Securities
Part 2. Texas Department of Banking
Chapter 33. Money Services Businesses
7 TAC §33.13

The Finance Commission of Texas (the commission), on behalf of the Texas Department of Banking (the department), adopts amendments to §33.13, concerning the process for obtaining a money services business license, with changes to the proposed text as published in the July 4, 2014, issue of the Texas Register (39 TexReg 5015), which will be republished.

Changes in the proposed text are found in 7 TAC §33.13(f)(2), and modify the basis for granting a request for extension of time to complete an application from the commissioner’s sole discretion to a finding of good and sufficient cause.

The amended rule is adopted to allow the Texas Banking Commissioner (commissioner), upon a finding of good and sufficient cause, to grant an applicant additional time to complete a filing and to remove the more formal procedures for obtaining an extension that are currently in the rule. This provides an opportunity for applicants to continue to provide information needed by the department to make a meaningful evaluation and determination in processing the application.

The department adopted a non-substantive amendment to §33.13(d)(2), which clarifies a reference to §33.13(d)(1) by adding the words “of this subsection.”

The department deleted the  current language in §33.13(f)(2) and all of current §33.13(f)(3), which contained deadlines for an applicant to request more time to submit information in conjunction with an application and for the commissioner to act on such requests. The department amended §33.13(f)(2) to state simply that the commissioner may grant an applicant additional time and that the commissioner will communicate his or her decision to the applicant before the expiration of the filing period. The following paragraph is renumbered accordingly.

The Department received no comments regarding the proposed amendments.

The amendment is adopted pursuant to Finance Code, §151.102, which authorizes the Finance Commission to adopt rules to implement Finance Code, Chapter 151 regarding money service businesses.

§33.13. How Do I Obtain a New License?

      (a)  Does this section apply to me? This section applies if you seek a new money transmission or currency exchange license under Finance Code, Chapter 151.

      (b)  What must I do to apply for a license? To apply for a new money transmission or currency exchange license, you must:

            (1)  submit an application on the form prescribed by the department; and

            (2)  fully complete the application form and provide the information and documentation as specified in the application and the department’s instructions.

      (c)  What does the application process generally involve? The banking commissioner will review your application and, as authorized by Finance Code, Chapter 151, investigate you, your principals including officers, directors and shareholders of a publically traded parent if the principal has 25% or more ownership of the applicant, and all related facts to determine if you possess the qualifications and satisfy the requirements for the license for which you apply. At any time during the review and investigation process, the commissioner may require such information as the commissioner considers necessary to evaluate your application, including an opinion of counsel or an opinion, review or compilation prepared by a certified public accountant. It is your responsibility to provide or cause to be provided all the information the commissioner requires.

      (d) What is required for the department to begin processing my application?

            (1)  Your application must provide and be accompanied by the following at the time you submit the application to the department:

                  (A) your signature or the signature of your duly authorized officer, as applicable, sworn to before a notary, affirming that the information in the application and accompanying documentation is true;

                  (B) an application fee, in the amount established by commission rule, in the form of a check payable to the Texas Department of Banking;

                  (C) all required search firm reports; and

                  (D) if you are applying for a money transmission license:

                        (i)   security in the amount of at least $300,000 that complies with Finance Code, §151.308, and an undertaking to increase the amount of the security if additional security is required under that section; and

                        (ii)  an audited financial statement demonstrating that you satisfy the minimum net worth requirement established by Finance Code, §151.307(a), and that, if the license is issued, you are likely to maintain the required minimum; or

                  (E) if you are applying for a currency exchange license:

                        (i)   security in the amount of $2,500 that complies with Finance Code, §151.308; and

                        (ii)  a financial statement demonstrating your solvency.

            (2)  The department may refuse to process and may return to you an application submitted without all the items identified in paragraph (1) of this subsection. If you submit your application fee, but fail to include one or more of the other items identified in paragraph (1) of this subsection, the department will return or refund the fee or, if you promptly submit an application that includes the missing items, apply the fee to your subsequent application.

      (e)  When will the department tell me if my application is complete and accepted for filing? On or before the 15th day after the date the department receives your application, and if the application is not returned as provided for in subsection (d)(2) of this section, the department will notify you in writing that:

            (1)  your application is incomplete and the additional information specified in the notice is required before the department will accept your application for filing; or

            (2)  your application is complete and accepted for filing.

      (f)  When must I provide the additional information the department requires to consider my application complete and to accept it for filing?

            (1)  Subject to paragraph (2) of this subsection, the department must receive all information required to consider your application complete and to accept it for filing on or before the 61st day after the date the department receives your initial application.

            (2)  Upon a finding of good and sufficient cause, the banking commissioner shall grant an applicant additional time to complete the application. Extensions will be communicated to the applicant before the expiration of the filing period.

            (3)  After reviewing the information you provide in response to the department’s initial request for additional information, the department may determine that still more information is required to consider your application complete and to accept it for filing. The department will notify you in writing if further information is required and specify the date by which the department must receive the information.

      (g)  What happens if I do not provide the required information?

            (1)  The banking commissioner may determine that your application is abandoned, without prejudice to your right to file a new application, if the department does not receive the information required in the application and department’s instructions or the additional information required by the department within the time specified in subsection (f) of this section or as otherwise requested by the commissioner in writing to you.

            (2)  The banking commissioner will notify you in writing if your application is considered abandoned. The commissioner’s determination is effective the date the department mails you the notice and may not be appealed. The department will not refund the fee you paid in connection with the abandoned application.

      (h)  After the department accepts my application for filing, when will I know if the application is approved? On or before the 45th day after the date the department accepts your application for filing, the banking commissioner will approve or deny your application and advise you in writing of the decision.

      (i)   May I appeal the denial of my application? Yes. If the banking commissioner denies your application, you may appeal the denial in accordance with Finance Code, §151.205(b).

      (j)   What if the department does not comply with the application processing times? If the department fails to comply with the application processing times specified in subsections (e) or (h) of this section, you may file a complaint under §33.15 of this title (relating to Failure to Comply with Application Processing Times).

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 15, 2014.

Effective Date: September 4, 2014