Adopted New 7 TAC §33.52

Title 7. Banking and Securities
Part 2. Texas Department of Banking
Chapter 33. Money Services Businesses
7 TAC §33.52

The Finance Commission of Texas (the commission), on behalf of the Texas Department of Banking (the department), adopts new §33.52, concerning how to provide information to customers about authorized delegates, without changes to the proposed text as published in the March 6, 2015, issue of the Texas Register (40 TexReg 1005) and will not be republished.

The new rule is adopted to implement Texas Finance Code §151.403(a)(6), which requires the authorized delegate of a money transmission license holder to display a notice indicating that the person is an authorized delegate.

Texas Finance Code §151.403 circumscribes the conduct to which an authorized delegate of a money transmission license holder must conform. Under §151.403(a)(6), an authorized delegate "must prominently display on the form prescribed by the commissioner a notice that indicates that the person is an authorized delegate of the license holder." The department has generally allowed authorized delegates to include this notice as part of the consumer complaint notice required by 7 TAC §33.51, without mandating a specific form. This approach has proved successful. In order to satisfy the requirement of Finance Code §151.403(a)(6) that the commissioner prescribe a form for this notice, and to clarify for regulated entities that the delegate notice may be provided with the complaint notice, new §33.52 is adopted.

The Department received no comments regarding the proposed amendments.

The new rule is adopted pursuant to Finance Code, §151.102, which authorizes the commission to adopt rules to administer and enforce Chapter 151, and under Finance Code §151.403(a)(6) which requires the commissioner to specify the form of the required notice.

§33.52. Authorized Delegate Notice.

(a)  In addition to the complaint notice required by §33.51(f) of this title, an authorized delegate of a money transmission license holder appointed in accordance with Texas Finance Code §151.402 must provide each of its Texas customers with notice that:

(1)  is written in the language in which the transaction is conducted;

(2)  states the name of the license holder; and

(3)  indicates that the person is an authorized delegate conducting money transmission on behalf of the license holder.

(b)  The notice must be provided by one or more of the methods described in §33.51(e)(3) of this title. If the authorized delegate maintains a website that advertises the money transmission services it provides on behalf of the license holder, the notice must also be prominently displayed on this website.

(c)  The authorized delegate notice may be provided on a single form with the complaint notice required under §33.51 of this title.

Effective Date: May 7, 2015 (40 TexReg 2410)