| 1 | 1 | | 23 LC 50 0477 |
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| 2 | 2 | | S. B. 126 |
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| 3 | 3 | | - 1 - |
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| 4 | 4 | | Senate Bill 126 |
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| 5 | 5 | | By: Senators Hickman of the 4th, Gooch of the 51st, Goodman of the 8th, Halpern of the |
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| 6 | 6 | | 39th, Albers of the 56th and others |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | To amend Chapter 1 of Title 10 of the Official Code of Georgia Annotated, relating to selling |
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| 10 | 10 | | 1 |
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| 11 | 11 | | and other trade practices, so as to provide for a limitation on interchange fees charged by2 |
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| 12 | 12 | | payment card networks for credit or debit card transactions at retailers; to provide3 |
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| 13 | 13 | | requirements for payment card networks in relation to such interchange fees; to provide for4 |
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| 14 | 14 | | a civil penalty; to provide for definitions; to provide for a short title; to provide for an5 |
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| 15 | 15 | | effective date; to provide for related matters; to repeal conflicting laws; and for other6 |
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| 16 | 16 | | purposes.7 |
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| 17 | 17 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8 |
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| 18 | 18 | | SECTION 1.9 |
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| 19 | 19 | | This Act shall be known and may be cited as the "Consumer Inflation Reduction and Tax10 |
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| 20 | 20 | | Fairness Act."11 |
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| 21 | 21 | | SECTION 2.12 |
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| 22 | 22 | | Chapter 1 of Title 10 of the Official Code of Georgia Annotated, relating to selling and other13 |
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| 23 | 23 | | trade practices, is amended by adding a new Code section to read as follows:14 23 LC 50 0477 |
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| 24 | 24 | | S. B. 126 |
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| 25 | 25 | | - 2 - |
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| 26 | 26 | | "10-1-393.18.15 |
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| 27 | 27 | | (a) As used in this Code section, the term:16 |
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| 28 | 28 | | (1) 'Goods and services consumer purchase price' means the retail price paid by a17 |
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| 29 | 29 | | consumer for the actual goods or services provided by a retailer, excluding the taxes.18 |
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| 30 | 30 | | (2) 'Interchange fee' means a fee established, charged, or received by a payment card19 |
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| 31 | 31 | | network for the purpose of compensating the payment card issuer or payment card20 |
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| 32 | 32 | | network for its involvement in a credit or debit card transaction.21 |
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| 33 | 33 | | (3) 'Payment card issuer' means a person or entity that issues a credit or debit card or22 |
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| 34 | 34 | | such issuer's agent.23 |
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| 35 | 35 | | (4) 'Payment card network' means an entity that directly, or through licensed members,24 |
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| 36 | 36 | | third party processors, or agents, provides the proprietary services, infrastructure, and25 |
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| 37 | 37 | | software to conduct credit or debit card transaction authorization, clearance, or26 |
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| 38 | 38 | | settlement.27 |
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| 39 | 39 | | (5) 'Retailer' means any person, business, or entity that sells, supplies, or offers goods or28 |
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| 40 | 40 | | services for sale directly to consumers and accepts a credit or debit card for payment in29 |
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| 41 | 41 | | this state.30 |
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| 42 | 42 | | (6) 'Taxes' means the amount of any state and local sales and use and excise taxes31 |
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| 43 | 43 | | applicable to a sale of goods or services provided by a retailer in this state.32 |
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| 44 | 44 | | (b) No payment card network shall apply an interchange fee to a retailer based on an33 |
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| 45 | 45 | | amount greater than the goods and services consumer purchase price.34 |
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| 46 | 46 | | (c) A payment card network shall either exclude the amount of any taxes from the35 |
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| 47 | 47 | | calculation of interchange fees specific to each payment card transaction or refund an36 |
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| 48 | 48 | | amount of interchange fee proportionate to the amount attributable to the taxes at the time37 |
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| 49 | 49 | | of settlement with the retailer.38 |
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| 50 | 50 | | (d) If a retailer is unable to capture and transmit the applicable taxes at the time of sale, the39 |
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| 51 | 51 | | payment card network shall accept proof of taxes collected on sales subject to an40 23 LC 50 0477 |
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| 52 | 52 | | S. B. 126 |
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| 53 | 53 | | - 3 - |
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| 54 | 54 | | interchange fee upon the submission of sales data by the retailer and promptly credit the41 |
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| 55 | 55 | | retailer's settlement account.42 |
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| 56 | 56 | | (e) A payment card network that violates this Code section shall be subject to a civil43 |
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| 57 | 57 | | penalty of a minimum of $1,000.00 per violation, payable to the retailer, and shall also44 |
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| 58 | 58 | | refund any interchange fees paid by the retailer on the taxes for the goods or services45 |
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| 59 | 59 | | provided by such retailer.46 |
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| 60 | 60 | | (f) It shall be unlawful to alter or manipulate the computation and imposition of47 |
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| 61 | 61 | | interchange fees by increasing the rate or amount of the fees applicable to or imposed upon48 |
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| 62 | 62 | | the portion of a credit or debit card transaction not attributable to taxes or other fees49 |
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| 63 | 63 | | charged to the retailer to circumvent the effect of this Code section."50 |
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| 64 | 64 | | SECTION 3.51 |
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| 65 | 65 | | This Act shall become effective on January 1, 2024.52 |
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| 66 | 66 | | SECTION 4.53 |
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| 67 | 67 | | All laws and parts of laws in conflict with this Act are repealed.54 |
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