Texas House bill by Rep. Lambert regulates money services businesses under finance code amendments

Passed bill authored by State Rep. Stan Lambert seeks to regulate money services businesses by updating licensing conditions, financial reporting, and enforcement protocols to enhance oversight under the Texas Finance Code, according to the Texas Legislature website.

In the House, 50 Democrats and 80 Republicans voted in favor of the bill, while one Democrat and one Republican opposed it.

Meanwhile, in the Senate, 11 Democrats and 20 Republicans voted in favor, 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 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 amends several sections of the Texas Finance Code to regulate money services businesses (MSBs). It outlines requirements for individuals in control of MSBs to provide additional information to the commissioner and specifies conditions for currency exchange and money transmission licenses. The bill mandates that licensees maintain certain financial securities and submit annual financial statements to the commissioner. It also details permissible investments for MSBs and empowers the commissioner to suspend or revoke licenses or delegate designations if violations occur. Furthermore, it addresses the need for MSBs to follow specific protocols when faced with cease and desist or emergency orders. The bill is set to take effect Sept. 1, 2025.

The bill was co-authored by Rep. Suleman Lalani (Democrat – District 76).

The bill received its final legislative approval on Sunday, May 25, 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.