11 | 4 | | AN ACT |
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12 | 5 | | relating to authorizing certain private schools to charge fees for |
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13 | 6 | | processing or handling certain payments or payment transactions. |
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14 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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15 | 8 | | SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is |
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16 | 9 | | amended by adding Chapter 111 to read as follows: |
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17 | 10 | | CHAPTER 111. PRIVATE SCHOOLS |
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18 | 11 | | Sec. 111.001. DEFINITIONS. In this chapter: |
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19 | 12 | | (1) "Cardholder" means the person named on the face of |
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20 | 13 | | a credit or debit card to whom or for whose benefit the card is |
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21 | 14 | | issued. |
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22 | 15 | | (2) "Credit card" means a card or device issued under |
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23 | 16 | | an agreement by which the issuer gives to a cardholder the right to |
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24 | 17 | | obtain credit from the issuer or another person. |
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25 | 18 | | (3) "Debit card" has the meaning assigned by Section |
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26 | 19 | | 502.001. |
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27 | 20 | | (4) "Private school" means a school that: |
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28 | 21 | | (A) offers a course of instruction for students |
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29 | 22 | | in one or more grades from prekindergarten through grade 12; |
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30 | 23 | | (B) is not operated by a governmental entity; and |
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31 | 24 | | (C) is accredited by an accrediting agency that |
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32 | 25 | | is a member of the Texas Private School Accreditation Commission. |
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33 | 26 | | Sec. 111.002. CHARGES AND FEES FOR CERTAIN PAYMENTS AT |
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34 | 27 | | PRIVATE SCHOOLS. (a) This section applies to a payment of tuition, |
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35 | 28 | | a fee, or another charge to a private school that is made or |
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36 | 29 | | authorized in person, by mail, by telephone call, or through the |
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37 | 30 | | Internet by means of: |
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38 | 31 | | (1) a credit card; |
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39 | 32 | | (2) a debit card; or |
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40 | 33 | | (3) an electronic funds transfer. |
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41 | 34 | | (b) A private school may charge a fee or other amount in |
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42 | 35 | | connection with a payment to which this section applies, in |
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43 | 36 | | addition to the amount of the tuition, fee, or other charge being |
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44 | 37 | | paid, including: |
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45 | 38 | | (1) a discount, convenience, or service charge for the |
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46 | 39 | | transaction; or |
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47 | 40 | | (2) a service charge in connection with a payment |
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48 | 41 | | transaction that is dishonored or refused for lack of funds or |
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49 | 42 | | insufficient funds. |
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50 | 43 | | (c) A fee or other charge under this section must be in an |
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51 | 44 | | amount reasonable and necessary to reimburse the school for the |
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52 | 45 | | expense incurred by the school in processing and handling the |
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53 | 46 | | payment or payment transaction. |
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54 | 47 | | (d) Before accepting a payment by credit card, debit card, |
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55 | 48 | | or electronic funds transfer, the school shall notify the |
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56 | 49 | | cardholder or other person making the payment of any fee to be |
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57 | 50 | | charged under this section. |
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58 | 51 | | SECTION 2. Section 59.402(b), Finance Code, is amended to |
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59 | 52 | | read as follows: |
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60 | 53 | | (b) This section does not apply to: |
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61 | 54 | | (1) a state agency, county, local governmental entity, |
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62 | 55 | | or other governmental entity that accepts a debit or stored value |
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63 | 56 | | card for the payment of fees, taxes, or other charges; or |
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64 | 57 | | (2) a private school that accepts a debit card for the |
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65 | 58 | | payment of fees or other charges, as provided by Section 111.002, |
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66 | 59 | | Business & Commerce Code. |
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67 | 60 | | SECTION 3. Section 339.001(b), Finance Code, is amended to |
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68 | 61 | | read as follows: |
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69 | 62 | | (b) This section does not apply to: |
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70 | 63 | | (1) a state agency, county, local governmental entity, |
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71 | 64 | | or other governmental entity that accepts a credit card for the |
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72 | 65 | | payment of fees, taxes, or other charges; or |
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73 | 66 | | (2) a private school that accepts a credit card for the |
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74 | 67 | | payment of fees or other charges, as provided by Section 111.002, |
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75 | 68 | | Business & Commerce Code. |
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76 | 69 | | SECTION 4. This Act takes effect immediately if it receives |
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77 | 70 | | a vote of two-thirds of all the members elected to each house, as |
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78 | 71 | | provided by Section 39, Article III, Texas Constitution. If this |
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79 | 72 | | Act does not receive the vote necessary for immediate effect, this |
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80 | 73 | | Act takes effect September 1, 2015. |
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