Relating to the expiration of a stored value card.
Impact
The impact of HB1007 would significantly benefit consumers by ensuring that funds loaded onto such cards do not expire, thus enhancing consumer confidence in using stored value cards. In conjunction with this prohibition, the bill retains provisions that allow issuers to charge reasonable fees pertaining to card handling or operations as long as these fees are disclosed at the point of sale. This aspect is crucial; while it promotes consumer rights, it also maintains a balance for businesses who need to manage their operational costs associated with card distribution and management.
Summary
House Bill 1007 seeks to amend the Business and Commerce Code concerning stored value cards by prohibiting their expiration. Under the proposed legislation, no person may issue or sell a stored value card that has an expiration date; any condition stipulating that the card will expire is deemed void. This change aims to provide greater consumer protection by ensuring that individuals do not lose their money due to card expiration. The bill promotes the concept that stored value cards should retain their value for the cardholder without arbitrary time limits.
Contention
Notable points of contention surrounding the bill may arise from financial institutions and businesses that issue these cards, especially those that currently impose expiration dates as part of their business model. Some stakeholders might argue that the removal of expiration dates could lead to potential revenue losses or may complicate the management of unclaimed funds. Therefore, debates in the legislative context may focus on the financial implications for issuers versus the protective benefits for consumers. Stakeholders will likely engage in discussions about how best to strike a fair balance between ensuring consumer rights and protecting business interests.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.
Relating to the authorization, licensing, and regulation of casino gaming and sports wagering in this state, to the creation, powers, and duties of the Texas Gaming Commission, to the support of the horse racing industry and reform of horse racing and greyhound racing, and to other provisions related to gambling; imposing and authorizing administrative and civil penalties; imposing taxes; imposing and authorizing fees; requiring occupational licenses; creating criminal offenses.
Relating to agreements authorizing a limitation on taxable value of certain property to provide for the creation of jobs and the generation of state and local tax revenue; authorizing fees; authorizing penalties.