Texas 2009 - 81st Regular

Texas House Bill HB1007 Compare Versions

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1	1	81R4515 JE-D
2	2	By: Allen H.B. No. 1007
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the expiration of a stored value card.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Chapter 604, Business & Commerce Code, is
10	10	amended by adding Subchapter D to read as follows:
11	11	SUBCHAPTER D. PROHIBITED RESTRICTIONS
12	12	Sec. 604.151. EXPIRATION OF STORED VALUE CARD PROHIBITED.
13	13	A person may not issue or sell a stored value card that provides
14	14	that the card expires after a certain date. A condition providing
15	15	for the expiration of a stored value card is void.
16	16	SECTION 2. Sections 604.002, 604.051, 604.101, 604.102, and
17	17	604.103, Business & Commerce Code, are amended to read as follows:
18	18	Sec. 604.002. INAPPLICABILITY OF CHAPTER. This chapter
19	19	does not apply to a stored value card [that]:
20	20	(1) that is issued by:
21	21	(A) a financial institution acting as a financial
22	22	agent of the United States or this state;
23	23	(B) a federally insured financial institution,
24	24	as defined by Section 201.101, Finance Code, if the financial
25	25	institution is primarily liable for the card as the issuing
26	26	principal; or
27	27	(C) an air carrier holding a certificate of
28	28	public convenience and necessity under Title 49, United States
29	29	Code;
30	30	(2) that is issued as a prepaid calling card by a
31	31	prepaid calling card company regulated under Section 55.253,
32	32	Utilities Code;
33	33	(3) that is distributed by the issuer to a person under
34	34	an awards, rewards, loyalty, incentive, rebate, or promotional
35	35	program and is not issued or reloaded in exchange for money tendered
36	36	by the cardholder;
37	37	(4) that is sold below face value or donated to:
38	38	(A) an employee of the seller or issuer;
39	39	(B) a nonprofit or charitable organization; or
40	40	(C) an educational institution for fund-raising
41	41	purposes; or
42	42	(5) [does not expire and] for which the seller does not
43	43	charge a fee other than a fee described in Section 604.051.
44	44	Sec. 604.051. FEES AND CHARGES RELATED TO ISSUANCE AND
45	45	HANDLING OF CARD. If disclosed as required by Subchapter C, the
46	46	issuer of a stored value card may impose and collect a reasonable:
47	47	(1) handling fee in connection with the issuance of or
48	48	adding of value to the card;
49	49	(2) access fee for a card transaction conducted at an
50	50	unmanned teller machine, as defined by Section 59.301, Finance
51	51	Code; and
52	52	(3) reissue or replacement charge if a [an expired or]
53	53	lost card is reissued or replaced.
54	54	Sec. 604.101. REQUIRED DISCLOSURE OF CERTAIN MATTERS
55	55	APPLICABLE TO CARD. A [An expiration date or] policy, fee, or other
56	56	material restriction or contract term applicable to a stored value
57	57	card must be clearly and conspicuously disclosed at the time the
58	58	card is sold or issued to a person to enable the person to make an
59	59	informed decision before purchasing the card.
60	60	Sec. 604.102. REQUIRED PRINTING OF CERTAIN DISCLOSURES. In
61	61	addition to the disclosure required under Section 604.101, a
62	62	disclosure regarding [the expiration of a stored value card or] a
63	63	periodic fee that reduces the unredeemed value of a stored value
64	64	card must be legibly printed on the card.
65	65	Sec. 604.103. VALIDITY OF CARD SOLD WITHOUT REQUIRED
66	66	DISCLOSURES. A stored value card sold without the disclosure
67	67	required by this subchapter of a [an expiration date or] policy,
68	68	fee, or other material restriction or contract term applicable to
69	69	the card is valid until redeemed or replaced.
70	70	SECTION 3. Section 72.1016(b), Property Code, is amended to
71	71	read as follows:
72	72	(b) If the existence and location of the owner of a stored
73	73	value card is unknown to the holder of the property, the stored
74	74	value card is presumed abandoned to the extent of its unredeemed and
75	75	uncharged value on the earlier of:
76	76	(1) [the card's expiration date;
77	77	[(2)] the third anniversary of the date the card was
78	78	issued, if the card is not used after it is issued, or the date the
79	79	card was last used or value was last added to the card; or
80	80	(2) [(3)] the first anniversary of the date the card
81	81	was issued, if the card is not used after it is issued, or the date
82	82	the card was last used or value was last added to the card, if the
83	83	card's value represents wages, as defined by Section 61.001, Labor
84	84	Code.
85	85	SECTION 4. The changes in law made by this Act apply only to
86	86	the issuance or sale of a stored value card on or after the
87	87	effective date of this Act. The issuance or sale of a stored value
88	88	card before the effective date of this Act is governed by the law in
89	89	effect when the card was issued or sold, and the former law is
90	90	continued in effect for that purpose.
91	91	SECTION 5. This Act takes effect September 1, 2009.