SB 512: money transmitters can’t fine customers for terms violations

Caption

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.

Summary

They can still close the account.

The bill bars licensed money transmission companies in Texas from putting clauses in their terms of service that let them charge customers a money fine or penalty for breaking those terms. It touches money transmission licensees and their customers, and it still lets a company close a customer's account for a terms violation. A company that breaks the rule owes the state a civil penalty equal to three times the fine it charged, and the attorney general can sue to collect it, for agreements made after September 1, 2025.

Labels

Labels: BUZZER BEATER. Final vote May 30, 2025: the Senate concurred in the House amendments. 3 days before the session ended Jun 2, 2025.DO-OVER. Reworked text of a bill filed before that died: 88R SB 1607 (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.

Receipt

The receipt

89R-SB512 · 2024-11-25

SOLD BY

Sen. Lois KolkhorstRSenate 18

ITEM

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.

WHAT IT DOES

They can still close the account.

The bill bars licensed money transmission companies in Texas from putting clauses in their terms of service that let them charge customers a money fine or penalty for breaking those terms. It touches money transmission licensees and their customers, and it still lets a company close a customer's account for a terms violation. A company that breaks the rule owes the state a civil penalty equal to three times the fine it charged, and the attorney general can sue to collect it, for agreements made after September 1, 2025.

CHARGES

[ ] NONE FOUND

TOTAL

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version F · source

Sources

Fiscal note · version F · May 27, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

Nov 25, 2024Received by the Secretary of the Senate
Nov 25, 2024Filed
Feb 3, 2025Read first time
Feb 3, 2025Referred to Business & Commerce
Apr 10, 2025Scheduled for public hearing on . . .
Apr 10, 2025Considered in public hearing
Apr 10, 2025Testimony taken in committee
Apr 10, 2025Left pending in committee
Apr 15, 2025Considered in public hearing
Apr 15, 2025Vote taken in committee
Apr 16, 2025Reported favorably w/o amendments
Apr 16, 2025Recommended for local & uncontested calendar
Apr 16, 2025Committee report printed and distributed
Apr 24, 2025Placed on intent calendar
Apr 28, 2025Rules suspended-Regular order of business
Apr 28, 2025Vote recorded in Journal
Apr 28, 2025Read 2nd time & passed to engrossment
Apr 28, 2025Vote recorded in Journal
Apr 28, 2025Three day rule suspended
Apr 28, 2025Record vote
Apr 28, 2025Read 3rd time
Apr 28, 2025Passed
Apr 28, 2025Record vote
Apr 28, 2025Reported engrossed
Apr 29, 2025Received from the Senate
Apr 30, 2025Read first time
Apr 30, 2025Referred to Pensions, Investments & Financial Services
May 12, 2025Scheduled for public hearing on . . .
May 12, 2025Considered in public hearing
May 12, 2025Testimony taken/registration(s) recorded in committee
May 12, 2025Left pending in committee
May 19, 2025Considered in public hearing
May 19, 2025Reported favorably w/o amendment(s)
May 21, 2025Comte report filed with Committee Coordinator
May 21, 2025Committee report distributed
May 21, 2025Committee report sent to Calendars
May 22, 2025Considered in Calendars
May 24, 2025Placed on General State Calendar
May 26, 2025Read 2nd time
May 26, 2025Amended 1-Schofield
May 26, 2025Record vote RV#3593
May 26, 2025Statement(s) of vote recorded in Journal
May 26, 2025Passed to 3rd reading as amended
May 26, 2025Record vote RV#3594
May 26, 2025Statement(s) of vote recorded in Journal
May 27, 2025Read 3rd time
May 27, 2025Passed
May 27, 2025Record vote RV#3650
May 27, 2025Statement(s) of vote recorded in Journal
May 27, 2025House passage as amended reported
May 30, 2025House amendment(s) laid before the Senate
May 30, 2025Read
May 30, 2025Senate concurs in House amendment(s)
May 30, 2025Record vote
May 30, 2025Reported enrolled
May 31, 2025Senate concurs in House amendment(s)-reported
May 31, 2025Signed in the Senate
Jun 1, 2025Signed in the House
Jun 1, 2025Sent to the Governor
Jun 20, 2025Signed by the Governor
Jun 20, 2025Effective on 9/1/25

FILED UNDER

No verified beat found.

SIGNED FOR BY

House · 140 yea · 0 nay

Senate · 30 yea · 0 nay

Sources

House: Final passage · May 27, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

Senate: Final passage · Apr 28, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

Lois Kolkhorst

Donors

Texans for Lawsuit Reform PAC$60K Border Health PAC$35K SRR Ranches, LLC$30K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Jul 11, 2024 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.

Texans for Lawsuit Reform PAC$60,000.00

Texans for Lawsuit Reform PAC

$60,000.00

Cash: $60,000.00
Paid by others: $0.00
Total: $60,000.00

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.

Team

Sources

Derived itemized flow · Nov 19, 2024 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: 101007416, 101012417, 101070754.

Border Health PAC$35,000.00

Border Health PAC

$35,000.00

Cash: $35,000.00
Paid by others: $0.00
Total: $35,000.00

Also funds 17 other sitting lawmakers.

Derived recipient stock · Oct 28, 2024 to Aug 26, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · on Dec 6, 2024. 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: 101012417.

SRR Ranches, LLC$30,000.00

SRR Ranches, LLC

$30,000.00

Cash: $30,000.00
Paid by others: $0.00
Total: $30,000.00

Also funds 3 other sitting lawmakers.

Derived recipient stock · Oct 23, 2024 to Oct 8, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · Oct 23, 2024 to Oct 1, 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: 101012417, 101070754.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texans for Lawsuit Reform PAC

$60,000.00

Cash: $60,000.00
Paid by others: $0.00
Total: $60,000.00

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.

Team

Sources

Derived itemized flow · Nov 19, 2024 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: 101007416, 101012417, 101070754.

×

Border Health PAC

$35,000.00

Cash: $35,000.00
Paid by others: $0.00
Total: $35,000.00

Also funds 17 other sitting lawmakers.

Derived recipient stock · Oct 28, 2024 to Aug 26, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · on Dec 6, 2024. 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: 101012417.

×

SRR Ranches, LLC

$30,000.00

Cash: $30,000.00
Paid by others: $0.00
Total: $30,000.00

Also funds 3 other sitting lawmakers.

Derived recipient stock · Oct 23, 2024 to Oct 8, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · Oct 23, 2024 to Oct 1, 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: 101012417, 101070754.

Votes7

Senate May 30, 2025

Yea: 30
Nay: 0
Present, not voting: 1
Absent: Not printed
Excused: Not printed

Names

GutierrezPresent, not voting

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

Sources

Senator Kolkhorst moved to concur in the House amendment to SB 512. The motion prevailed by the following vote: Yeas 30, Nays 0, Present-not voting 1.

Published stock of positions for this vote, except where marked derived.

Yea: 30 (published)
Nay: 0 (published)
Present, not voting: 1 (published)
Absent: Not printed
Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

House May 27, 2025

Yea: 140
Nay: 0
Present, not voting: 2
Absent: 5
Excused: 3

Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 3650

SB 512 was passed by (Record 3650): 140 Yeas, 0 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

Yea: 140 (published)
Nay: 0 (published)
Present, not voting: 2 (published)
Absent: 5 (derived from named list)
Excused: 3 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 26, 2025

Yea: 146
Nay: 0
Present, not voting: 2
Absent: 1
Excused: 1

Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 3594

SB 512, as amended, was passed to third reading by (Record 3594): 146 Yeas, 0 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

Yea: 146 (published)
Nay: 0 (published)
Present, not voting: 2 (published)
Absent: 1 (derived from named list)
Excused: 1 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 26, 2025

Yea: 137
Nay: 0
Present, not voting: 2
Absent: 10
Excused: 1

Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 3593

Amendment No. 1 was adopted by (Record 3593): 137 Yeas, 0 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

Yea: 137 (published)
Nay: 0 (published)
Present, not voting: 2 (published)
Absent: 10 (derived from named list)
Excused: 1 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Senate Apr 28, 2025

Yea: 30
Nay: 0
Present, not voting: 1
Absent: Not printed
Excused: Not printed

Names

GutierrezPresent, not voting

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

Sources

The bill was read third time and was passed by the following vote: Yeas 30, Nays 0, Present-not voting 1. (Same as previous roll call)

Published stock of positions for this vote, except where marked derived.

Yea: 30 (published)
Nay: 0 (published)
Present, not voting: 1 (published)
Absent: Not printed
Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate Apr 28, 2025

Yea: 30
Nay: 0
Present, not voting: 1
Absent: Not printed
Excused: Not printed

Names

GutierrezPresent, not voting

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

Sources

Senator Kolkhorst moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that SB 512 be placed on its third reading and final passage. The motion prevailed by the following vote: Yeas 30, Nays 0, Present-not voting 1.

Published stock of positions for this vote, except where marked derived.

Yea: 30 (published)
Nay: 0 (published)
Present, not voting: 1 (published)
Absent: Not printed
Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate Apr 28, 2025

Yea: Not printed
Nay: Not printed
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Names

GutierrezPresent, not voting

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

Voice vote. No numeric tally or individual yeas are inferred.

Sources

Senator Kolkhorst moved to suspend the regular order of business to take up for consideration SB 512 at this time on its second reading: SB 512, 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 motion prevailed. Senator Gutierrez asked to be recorded as "Present-not voting" on suspension of the regular order of business. The bill was read second time and was passed to engrossment by a viva voce vote.

Published stock of positions for this vote, except where marked derived.

Yea: Not printed
Nay: Not printed
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Witnesses2

For: 2
Against: 0
On: 0

Names

For

Baptist General Convention of Texas Christian Life Commission1 registration
Self; Texas Constitutional Enforcement1 registration

Sources

2 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Senate witness list. Source snapshot 2026-10-20, Central time.

Fiscal

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version F · source

Sources

Fiscal note · version F · May 27, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

FILED BEFORE

Filed 2 times: 88R and 89R. Checked against 88R only.

88R SB 1607

by Sen. Kolkhorst, same lead author · Did not pass · reworked

Introduced text

Last 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

Sources

Texas Senate · Filed Nov 25, 2024

06/20/2025 E Effective on 9/1/25

Texas Legislature Online · Introduced · Senate Committee Report · Engrossed · House Committee Report · Enrolled

Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.

Companion

HB 1516 by Schofield (identical)

Subjects

Business & Commerce--General

Civil Remedies & Liabilities

Financial--General

Text

The text as introduced · 346 words

89R2996 MLH-F

By: Kolkhorst
S.B. No. 512

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.

Verdict: No flags

The receipt

SOLD BY

ITEM

WHAT IT DOES

CHARGES

TOTAL

HISTORY

SIGNED FOR BY

Donors

Texans for Lawsuit Reform PAC

Border Health PAC

SRR Ranches, LLC

Texans for Lawsuit Reform PAC

Border Health PAC

SRR Ranches, LLC

Senate May 30, 2025

House May 27, 2025

House May 26, 2025

House May 26, 2025

Senate Apr 28, 2025

Senate Apr 28, 2025

Senate Apr 28, 2025

For

88R SB 1607

Companion