81R5721 JE-D
By: Leibowitz H.B. No. 3155
A BILL TO BE ENTITLED
AN ACT
relating to the expiration and abandonment of stored value cards.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 604.002, Business & Commerce Code, as
effective April 1, 2009, is amended to read as follows:
Sec. 604.002. INAPPLICABILITY OF CHAPTER. This chapter
does not apply to a stored value card [that]:
(1) that 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) that is issued as a prepaid calling card by a
prepaid calling card company regulated under Section 55.253,
Utilities Code;
(3) that 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;
(4) that 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.
SECTION 2. The heading to Subchapter B, Chapter 604,
Business & Commerce Code, as effective April 1, 2009, is amended to
read as follows:
SUBCHAPTER B. [PERMISSIBLE] FEES PROHIBITED
SECTION 3. Section 604.051, Business & Commerce Code, as
effective April 1, 2009, is amended to read as follows:
Sec. 604.051. FEES AND CHARGES ASSOCIATED WITH [RELATED TO
ISSUANCE AND HANDLING OF] CARD PROHIBITED. The [If disclosed as
required by Subchapter C, the] issuer of a stored value card may not
impose or [and] collect a fee associated with a stored value card,
including [reasonable]:
(1) a handling fee in connection with the issuance of
or adding of value to the card;
(2) an access fee for a card transaction conducted at
an unmanned teller machine, as defined by Section 59.301, Finance
Code; [and]
(3) a reissue or replacement charge if an expired or
lost card is reissued or replaced; or
(4) a periodic fee or other charge that causes the
unredeemed balance of the card to decrease over time.
SECTION 4. Section 604.101, Business & Commerce Code, as
effective April 1, 2009, is amended to read as follows:
Sec. 604.101. REQUIRED DISCLOSURE OF CERTAIN MATTERS
APPLICABLE TO CARD. 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.
SECTION 5. Section 604.102, Business & Commerce Code, as
effective April 1, 2009, is amended to read as follows:
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.
SECTION 6. Section 604.103, Business & Commerce Code, as
effective April 1, 2009, is amended to read as follows:
Sec. 604.103. VALIDITY OF CARD SOLD WITHOUT REQUIRED
DISCLOSURES. A stored value card sold without the disclosure
required by this subchapter of an expiration date, [or] policy,
[fee,] or other material restriction or contract term applicable to
the card is valid until the earlier of the date the card:
(1) expires as provided by Section 604.104; or
(2) is redeemed or replaced.
SECTION 7. The heading to Subchapter C, Chapter 604,
Business & Commerce Code, as effective April 1, 2009, is amended to
read as follows:
SUBCHAPTER C. STORED VALUE CARD REQUIREMENTS [REQUIRED
DISCLOSURES]
SECTION 8. Subchapter C, Chapter 604, Business & Commerce
Code, as effective April 1, 2009, is amended by adding Section
604.104 to read as follows:
Sec. 604.104. EXPIRATION OF STORED VALUE CARD. A stored
value card expires on the earlier of:
(1) the third anniversary of the date the card was
issued or sold; or
(2) the card's expiration date.
SECTION 9. Sections 72.1016(a) and (b), Property Code, are
amended 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) The [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
(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.
SECTION 10. The following provisions are repealed:
(1) Section 604.052, Business & Commerce Code; and
(2) Section 72.1016(d), Property Code.
SECTION 11. The changes in law made by this Act apply only
to a stored value card issued or activated on or after the effective
date of this Act. A stored value card issued or activated before
the effective date of this Act is governed by the law in effect when
the card was issued or activated, and the former law is continued in
effect for that purpose.
SECTION 12. This Act takes effect September 1, 2009.