Texas HB1516 prohibits money transmission licensees from imposing fines or penalties for violating terms of service agreements.

Texas HB1516 amends the Finance Code to prohibit money transmission licensees from including provisions in their terms of service agreements that allow for monetary fines or penalties for violations. The bill also establishes a civil penalty for licensees who violate this prohibition, equal to three times the amount of any fine or penalty imposed. The attorney general can bring an action to recover the civil penalty and associated attorney's fees and costs. The changes apply only to terms of service agreements entered into after the bill's effective date of September 1, 2025.

Texas HB1516 prohibits money transmission licensees from imposing fines or penalties for violating terms of service agreements.

Texas HB1516 amends the Finance Code to prohibit money transmission licensees from including provisions in their terms of service agreements that allow for monetary fines or penalties for violations. The bill also establishes a civil penalty for licensees who violate this prohibition, equal to three times the amount of any fine or penalty imposed. The attorney general can bring an action to recover the civil penalty and associated attorney's fees and costs. The changes apply only to terms of service agreements entered into after the bill's effective date of September 1, 2025.