By: Longoria H.B. No. 3522
A BILL TO BE ENTITLED
AN ACT
relating to photo identification requirements for certain stored
value card purchases.
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. REQUIRING VERIFICATION OF IDENTITY FOR CARD
PURCHASES
Sec. 604.151. DEFINITIONS. In this subchapter:
(1) "Cardholder" means the person named on the face of
a card to whom or for whose benefit the card is issued.
(2) "Card" means a credit card or debit card.
(3) "Credit card" means a card or device issued under
an agreement by which the issuer gives to a cardholder the right to
obtain credit from the issuer or another person.
(4) "Debit card" means a card or device or other means
of access to an individual's account that may be used by the
individual to initiate electronic fund transfers.
(5) "Merchant" means a person in the business of
selling or leasing goods or services.
(6) "Photo identification" means a card or other
document that:
(A) is issued by a governmental entity to
identify an individual; and
(B) displays a photograph of the individual
identified on the card or other document.
Sec. 604.152. APPLICABILITY TO POINT OF SALE TRANSACTIONS.
Notwithstanding Section 604.002, this subchapter applies to any
point of sale transaction in which an individual seeks to pay a
merchant for the purchase of or adding value to any stored value
card.
Sec. 604.153. REQUIRING PHOTO IDENTIFICATION FOR CARD
TRANSACTION. (a) A merchant may not accept a card for payment in a
point of sale transaction for the purchase of or adding value to a
stored value card unless the merchant requires the individual who
uses the card to provide photo identification verifying the
individual's identity as the cardholder.
(b) Subsection (a) does not apply if the merchant requires
the individual presenting the credit card for payment to provide
the individual's zip code to verify the individual's identity as
authorized by Section 505.002 or as to any card transaction,
electronically enter the personal identification number (PIN)
associated with the card.
Sec. 604.154. LIABILITY FOR FAILURE TO OBTAIN
IDENTIFICATION. In the event the merchant fails to obtain photo
identification or a PIN for a card transaction or the individual's
zip code for a credit card transaction and the stored value
transaction was not authorized by the cardholder, then the merchant
shall be liable to the cardholder or the card issuing financial
institution for all losses that may be attributed to such failure.
SECTION 2. This Act takes effect September 1, 2015.