81R12901 JE-D
By: Allen, Davis of Dallas H.B. No. 1007
Substitute the following for H.B. No. 1007:
By: Turner of Harris C.S.H.B. No. 1007
A BILL TO BE ENTITLED
AN ACT
relating to the expiration and abandonment of a stored value card.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 604, Business & Commerce Code, is
amended by adding Subchapter D to read as follows:
SUBCHAPTER D. PROHIBITED RESTRICTIONS
Sec. 604.151. EXPIRATION OF STORED VALUE CARD PROHIBITED.
A person may not issue or sell a stored value card that provides
that the card expires after a certain date. A condition providing
for the expiration of a stored value card is void.
SECTION 2. Sections 604.002, 604.051, 604.101, 604.102, and
604.103, Business & Commerce Code, are amended to read as follows:
Sec. 604.002. INAPPLICABILITY OF CHAPTER. This chapter
does not apply to a stored value card that:
(1) is issued by:
(A) a financial institution acting as a financial
agent of the United States or this state;
(B) a federally insured financial institution,
as defined by Section 201.101, Finance Code, if the financial
institution is primarily liable for the card as the issuing
principal; or
(C) an air carrier holding a certificate of
public convenience and necessity under Title 49, United States
Code;
(2) is issued as a prepaid calling card by a prepaid
calling card company regulated under Section 55.253, Utilities
Code;
(3) is distributed by the issuer to a person under an
awards, rewards, loyalty, incentive, rebate, or promotional
program and is not issued or reloaded in exchange for money tendered
by the cardholder; or
(4) is sold below face value or donated to:
(A) an employee of the seller or issuer;
(B) a nonprofit or charitable organization; or
(C) an educational institution for fund-raising
purposes[; or
[(5) does not expire and for which the seller does not
charge a fee other than a fee described in Section 604.051].
Sec. 604.051. FEES AND CHARGES RELATED TO ISSUANCE AND
HANDLING OF CARD. If disclosed as required by Subchapter C, the
issuer of a stored value card may impose and collect a reasonable:
(1) handling fee in connection with the issuance of or
adding of value to the card;
(2) access fee for a card transaction conducted at an
unmanned teller machine, as defined by Section 59.301, Finance
Code; and
(3) reissue or replacement charge if a [an expired or]
lost card is reissued or replaced.
Sec. 604.101. REQUIRED DISCLOSURE OF CERTAIN MATTERS
APPLICABLE TO CARD. A [An expiration date or] policy, fee, or other
material restriction or contract term applicable to a stored value
card must be clearly and conspicuously disclosed at the time the
card is sold or issued to a person to enable the person to make an
informed decision before purchasing the card.
Sec. 604.102. REQUIRED PRINTING OF CERTAIN DISCLOSURES. In
addition to the disclosure required under Section 604.101, a
disclosure regarding [the expiration of a stored value card or] a
periodic fee that reduces the unredeemed value of a stored value
card must be legibly printed on the card.
Sec. 604.103. VALIDITY OF CARD SOLD WITHOUT REQUIRED
DISCLOSURES. A stored value card sold without the disclosure
required by this subchapter of a [an expiration date or] policy,
fee, or other material restriction or contract term applicable to
the card is valid until redeemed or replaced.
SECTION 3. Section 72.1016, Property Code, is amended by
amending Subsections (a) and (b) and adding Subsection (g) to read
as follows:
(a) This section applies to a stored value card, as defined
by Section 604.001, Business & Commerce Code, other than a card:
(1) to which Chapter 604, Business & Commerce Code,
does not apply by operation of Sections 604.002(1)(A) and (C) and
604.002(2)-(4) [604.002(2)-(5)] of that code; or
(2) that is linked to and draws its value solely from a
deposit account subject to Chapter 73.
(b) If the existence and location of the owner of a stored
value card is unknown to the holder of the property, the stored
value card is presumed abandoned to the extent of its unredeemed and
uncharged value on the earlier of:
(1) [the card's expiration date;
[(2)] the third anniversary of the date the card was
issued, if the card is not used after it is issued, or the date the
card was last used or value was last added to the card; or
(2) [(3)] the first anniversary of the date the card
was issued, if the card is not used after it is issued, or the date
the card was last used or value was last added to the card, if the
card's value represents wages, as defined by Section 61.001, Labor
Code.
(g) A holder of unclaimed value on a stored value card
delivered to the comptroller under Chapter 74 shall honor the
unclaimed value of the card and may request, in a form prescribed by
the comptroller, reimbursement from the comptroller for an amount
equal to the value honored by the holder. The comptroller shall
provide reimbursement to the holder in an amount equal to the value
of a stored value card that is delivered and subsequently honored by
the holder. The comptroller shall adopt rules to administer this
subsection.
SECTION 4. The changes in law made by this Act apply only to
the issuance or sale of a stored value card on or after the
effective date of this Act. The issuance or sale of a stored value
card before the effective date of this Act is governed by the law in
effect when the card was issued or sold, and the former law is
continued in effect for that purpose.
SECTION 5. This Act takes effect September 1, 2009.