Monitoring the SessionHB 1516
Died in committee
Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade
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.
Caption from analyzed text · version I.
No clause letting them fine customers for breaking their terms.
The bill bars licensed money transmission businesses from putting any clause in their terms of service that lets them charge customers a monetary fine or penalty for breaking those terms. Companies can still close a customer's account for a terms violation, but a company that imposes a banned fine owes the state a civil penalty of three times that fine, and the attorney general can sue to collect it along with fees and costs. The rule covers terms of service agreements entered into on or after September 1, 2025; older agreements stay under the old law.
Labels: DO-OVER. Reworked text of a bill filed before that died: 88R SB 1607 by Sen. Kolkhorst (Did not pass). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.
89R-HB1516 · 2024-12-04
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.
No clause letting them fine customers for breaking their terms.
The bill bars licensed money transmission businesses from putting any clause in their terms of service that lets them charge customers a monetary fine or penalty for breaking those terms. Companies can still close a customer's account for a terms violation, but a company that imposes a banned fine owes the state a civil penalty of three times that fine, and the attorney general can sue to collect it along with fees and costs. The rule covers terms of service agreements entered into on or after September 1, 2025; older agreements stay under the old law.
[ ] NONE FOUND
No fiscal note in the loaded record.
No verified beat found.
THANK YOU FOR CHECKING THE RECEIPT
CAMPAIGN PAID FOR BY
Not tied to this bill.
The author's campaign account only. Own money and internal transfers are separate on the member page.
Derived itemized flow · Oct 28, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.
Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.
$432,937.00
Also funds 124 other sitting lawmakers.
Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.
TEC account match.
TeamDerived itemized flow · Jun 23, 2025 to Oct 23, 2026. State data as of Nov 4, 2026.
Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.
Report IDs: 101006866, 101027356, 101057804, 101070463, 101071373.
$331,750.00
Also funds 42 other sitting lawmakers.
Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.
TEC account match.
TeamDerived itemized flow · Jul 24, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.
Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.
Report IDs: 101070463, 101071373.
$254,625.06
Also funds 12 other sitting lawmakers.
Derived recipient stock · Oct 31, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.
TEC account match.
TeamDerived itemized flow · Sep 23, 2026 to Oct 19, 2026. State data as of Nov 4, 2026.
Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.
Report IDs: 101070463, 101071373.
Missing data does not establish zero giving. Display amounts are rounded.
$432,937.00
Also funds 124 other sitting lawmakers.
Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.
TEC account match.
TeamDerived itemized flow · Jun 23, 2025 to Oct 23, 2026. State data as of Nov 4, 2026.
Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.
Report IDs: 101006866, 101027356, 101057804, 101070463, 101071373.
$331,750.00
Also funds 42 other sitting lawmakers.
Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.
TEC account match.
TeamDerived itemized flow · Jul 24, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.
Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.
Report IDs: 101070463, 101071373.
$254,625.06
Also funds 12 other sitting lawmakers.
Derived recipient stock · Oct 31, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.
TEC account match.
TeamDerived itemized flow · Sep 23, 2026 to Oct 19, 2026. State data as of Nov 4, 2026.
Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.
Report IDs: 101070463, 101071373.
No floor vote loaded for this bill.
No fiscal note in the loaded record.
Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.
Filed 2 times: 88R and 89R. Checked against 88R only.
by Sen. Kolkhorst, different lead author · Did not pass · reworked
Introduced textLast action, May 23, 2023: Placed on General State Calendar
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.
Caption, 88R bill history
Texas House · Filed Dec 4, 2024
03/12/2025 H Referred to Pensions, Investments & Financial Services: Mar 12 2025 11:15AM
Texas Legislature Online · Introduced
Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.
House committee · Pensions, Investments & Financial Services · Final status: Died in committee
SB 512 by Kolkhorst (identical)
Business & Commerce--General
Civil Remedies & Liabilities
Financial--General
The text as introduced · 346 words
89R2996 MLH-F By: Schofield H.B. No. 1516 A BILL TO BE ENTITLED 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. (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.