Texas House bill by Rep. Lambert expands banking commissioner enforcement powers

Passed bill authored by State Rep. Stan Lambert seeks to expand the enforcement powers of the banking commissioner regarding money services businesses, aiming to strengthen regulatory oversight and accountability, according to the Texas Legislature website.

In the House, 57 Democrats and 78 Republicans voted in favor of the bill, with no opposition.

Meanwhile, in the Senate, 11 Democrats and 20 Republicans voted in favor, also with no opposing votes.

Stan Lambert introduced the bill in the Texas House on Wednesday, March 5, during the 89th regular legislative session.

Lambert graduated from Abilene Christian University in 1975 with a BS.

Lambert, a Republican, was elected to the Texas State House in 2017 to represent the state’s 71st House district, replacing previous state representative Susan King.

According to the Texas Legislature, the bill’s official text was summarized as follows: ‘Relating to certain enforcement powers of the banking commissioner regarding the regulation of money services businesses’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill expands enforcement powers of the banking commissioner concerning money services businesses. It introduces Sections 152.411, 152.412, and 152.413 to the Finance Code, enabling the commissioner to issue removal or prohibition orders against key individuals or employees of money services licensees under certain conditions, such as committing prohibited acts, engaging in misconduct, or violating regulatory orders. These orders can be issued based on credible evidence or finalized criminal convictions related to money services. The bill sets procedures for hearings and appeals, specifying that orders can be immediate and potentially permanent, although a party may apply for release from such orders after 10 years. This act is effective Sept. 1, 2025.

The bill received its final legislative approval on Monday, May 19, and was signed into law by Gov. Greg Abbott on Friday, June 20.

Bills in Texas go through a multi-step legislative process, including committee review, debates, and votes in both chambers before reaching a final decision. Each session, there are typically thousands of bills introduced, but only a portion successfully navigate the process to become law.

You can read more about the bills and other measures here.