Texas 2009 - 81st Regular

Texas House Bill HB3155 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R5721 JE-D
2	2	By: Leibowitz H.B. No. 3155
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the expiration and abandonment of stored value cards.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 604.002, Business & Commerce Code, as
10	10	effective April 1, 2009, is amended to read as follows:
11	11	Sec. 604.002. INAPPLICABILITY OF CHAPTER. This chapter
12	12	does not apply to a stored value card [that]:
13	13	(1) that is issued by:
14	14	(A) a financial institution acting as a financial
15	15	agent of the United States or this state;
16	16	(B) a federally insured financial institution,
17	17	as defined by Section 201.101, Finance Code, if the financial
18	18	institution is primarily liable for the card as the issuing
19	19	principal; or
20	20	(C) an air carrier holding a certificate of
21	21	public convenience and necessity under Title 49, United States
22	22	Code;
23	23	(2) that is issued as a prepaid calling card by a
24	24	prepaid calling card company regulated under Section 55.253,
25	25	Utilities Code;
26	26	(3) that is distributed by the issuer to a person under
27	27	an awards, rewards, loyalty, incentive, rebate, or promotional
28	28	program and is not issued or reloaded in exchange for money tendered
29	29	by the cardholder;
30	30	(4) that is sold below face value or donated to:
31	31	(A) an employee of the seller or issuer;
32	32	(B) a nonprofit or charitable organization; or
33	33	(C) an educational institution for fund-raising
34	34	purposes; or
35	35	(5) [does not expire and] for which the seller does not
36	36	charge a fee [other than a fee] described in Section 604.051.
37	37	SECTION 2. The heading to Subchapter B, Chapter 604,
38	38	Business & Commerce Code, as effective April 1, 2009, is amended to
39	39	read as follows:
40	40	SUBCHAPTER B. [PERMISSIBLE] FEES PROHIBITED
41	41	SECTION 3. Section 604.051, Business & Commerce Code, as
42	42	effective April 1, 2009, is amended to read as follows:
43	43	Sec. 604.051. FEES AND CHARGES ASSOCIATED WITH [RELATED TO
44	44	ISSUANCE AND HANDLING OF] CARD PROHIBITED. The [If disclosed as
45	45	required by Subchapter C, the] issuer of a stored value card may not
46	46	impose or [and] collect a fee associated with a stored value card,
47	47	including [reasonable]:
48	48	(1) a handling fee in connection with the issuance of
49	49	or adding of value to the card;
50	50	(2) an access fee for a card transaction conducted at
51	51	an unmanned teller machine, as defined by Section 59.301, Finance
52	52	Code; [and]
53	53	(3) a reissue or replacement charge if an expired or
54	54	lost card is reissued or replaced; or
55	55	(4) a periodic fee or other charge that causes the
56	56	unredeemed balance of the card to decrease over time.
57	57	SECTION 4. Section 604.101, Business & Commerce Code, as
58	58	effective April 1, 2009, is amended to read as follows:
59	59	Sec. 604.101. REQUIRED DISCLOSURE OF CERTAIN MATTERS
60	60	APPLICABLE TO CARD. An expiration date, [or] policy, [fee,] or
61	61	other material restriction or contract term applicable to a stored
62	62	value card must be clearly and conspicuously disclosed at the time
63	63	the card is sold or issued to a person to enable the person to make
64	64	an informed decision before purchasing the card.
65	65	SECTION 5. Section 604.102, Business & Commerce Code, as
66	66	effective April 1, 2009, is amended to read as follows:
67	67	Sec. 604.102. REQUIRED PRINTING OF CERTAIN DISCLOSURES. In
68	68	addition to the disclosure required under Section 604.101, a
69	69	disclosure regarding the expiration of a stored value card [or a
70	70	periodic fee that reduces the unredeemed value of a stored value
71	71	card] must be legibly printed on the card.
72	72	SECTION 6. Section 604.103, Business & Commerce Code, as
73	73	effective April 1, 2009, is amended to read as follows:
74	74	Sec. 604.103. VALIDITY OF CARD SOLD WITHOUT REQUIRED
75	75	DISCLOSURES. A stored value card sold without the disclosure
76	76	required by this subchapter of an expiration date, [or] policy,
77	77	[fee,] or other material restriction or contract term applicable to
78	78	the card is valid until the earlier of the date the card:
79	79	(1) expires as provided by Section 604.104; or
80	80	(2) is redeemed or replaced.
81	81	SECTION 7. The heading to Subchapter C, Chapter 604,
82	82	Business & Commerce Code, as effective April 1, 2009, is amended to
83	83	read as follows:
84	84	SUBCHAPTER C. STORED VALUE CARD REQUIREMENTS [REQUIRED
85	85	DISCLOSURES]
86	86	SECTION 8. Subchapter C, Chapter 604, Business & Commerce
87	87	Code, as effective April 1, 2009, is amended by adding Section
88	88	604.104 to read as follows:
89	89	Sec. 604.104. EXPIRATION OF STORED VALUE CARD. A stored
90	90	value card expires on the earlier of:
91	91	(1) the third anniversary of the date the card was
92	92	issued or sold; or
93	93	(2) the card's expiration date.
94	94	SECTION 9. Sections 72.1016(a) and (b), Property Code, are
95	95	amended to read as follows:
96	96	(a) This section applies to a stored value card, as defined
97	97	by Section 604.001, Business & Commerce Code, other than a card:
98	98	(1) to which Chapter 604, Business & Commerce Code,
99	99	does not apply by operation of Sections 604.002(1)(A) and (C) and
100	100	604.002(2)-(4) [604.002(2)-(5)] of that code; or
101	101	(2) that is linked to and draws its value solely from a
102	102	deposit account subject to Chapter 73.
103	103	(b) The [If the existence and location of the owner of a
104	104	stored value card is unknown to the holder of the property, the]
105	105	stored value card is presumed abandoned to the extent of its
106	106	unredeemed and uncharged value on the earlier of:
107	107	(1) the card's expiration date;
108	108	(2) the third anniversary of the date the card was
109	109	issued [, if the card is not used after it is issued, or the date the
110	110	card was last used or value was last added to the card]; or
111	111	(3) the first anniversary of the date the card was
112	112	issued, [if the card is not used after it is issued, or the date the
113	113	card was last used or value was last added to the card,] if the
114	114	card's value represents wages, as defined by Section 61.001, Labor
115	115	Code.
116	116	SECTION 10. The following provisions are repealed:
117	117	(1) Section 604.052, Business & Commerce Code; and
118	118	(2) Section 72.1016(d), Property Code.
119	119	SECTION 11. The changes in law made by this Act apply only
120	120	to a stored value card issued or activated on or after the effective
121	121	date of this Act. A stored value card issued or activated before
122	122	the effective date of this Act is governed by the law in effect when
123	123	the card was issued or activated, and the former law is continued in
124	124	effect for that purpose.
125	125	SECTION 12. This Act takes effect September 1, 2009.