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Texas Legislature· SB 512Effective on 9/1/25

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, the official text

Shown verbatim: the complete text as captured from the official page posted by the Texas Legislature, fetched 2026-08-29. Where this bill amends existing law, language marked for deletion in the official page appears here in brackets. This is the enrolled version. The official bill page.
S.B. No. 512

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, provided that the money transmission licensee refunds

the balance of the account to the customer in a manner that makes

the funds readily available to the customer.

(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.

______________________________
______________________________

President of the Senate
Speaker of the House

I hereby certify that S.B. No. 512 passed the Senate on

April 28, 2025, by the following vote: Yeas 30, Nays 0, one

present not voting; and that the Senate concurred in House

amendment on May 30, 2025, by the following vote: Yeas 30, Nays 0,

one present not voting.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 512 passed the House, with

amendment, on May 27, 2025, by the following vote: Yeas 140,

Nays 0, two present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor
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