| 1 | 1 | | By: Longoria H.B. No. 3526 |
|---|
| 2 | 2 | | |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | A BILL TO BE ENTITLED |
|---|
| 5 | 5 | | AN ACT |
|---|
| 6 | 6 | | relating to requiring photo identification for certain card |
|---|
| 7 | 7 | | purchases. |
|---|
| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 9 | 9 | | SECTION 1. Subtitle A, Title 11, Business & Commerce Code, |
|---|
| 10 | 10 | | is amended by adding Chapter 506 to read as follows: |
|---|
| 11 | 11 | | CHAPTER 506. REQUIRING VERIFICATION OF IDENTITY FOR CERTAIN CARD |
|---|
| 12 | 12 | | PURCHASES |
|---|
| 13 | 13 | | Sec. 506.001. DEFINITIONS. In this chapter: |
|---|
| 14 | 14 | | (1) "Cardholder" means the person named on the face of |
|---|
| 15 | 15 | | a credit card to whom or for whose benefit the card is issued. |
|---|
| 16 | 16 | | (2) "Card" means a credit card or debit card. |
|---|
| 17 | 17 | | (3) "Credit card" means a card or device issued under |
|---|
| 18 | 18 | | an agreement by which the issuer gives to a cardholder the right to |
|---|
| 19 | 19 | | obtain credit from the issuer or another person. |
|---|
| 20 | 20 | | (4) "Debit card" means a card or device or other means |
|---|
| 21 | 21 | | of access to an individual's account that may be used by the |
|---|
| 22 | 22 | | individual to initiate electronic fund transfers. |
|---|
| 23 | 23 | | (5) "Merchant" means a person in the business of |
|---|
| 24 | 24 | | selling goods or services. |
|---|
| 25 | 25 | | (6) "Photo identification" means a card or other |
|---|
| 26 | 26 | | document that: |
|---|
| 27 | 27 | | (A) is issued by a governmental entity to |
|---|
| 28 | 28 | | identify an individual; and |
|---|
| 29 | 29 | | (B) displays a photograph of the individual |
|---|
| 30 | 30 | | identified on the card or other document. |
|---|
| 31 | 31 | | Sec. 506.002. REQUIRING PHOTO IDENTIFICATION FOR CERTAIN |
|---|
| 32 | 32 | | CARD TRANSACTIONS. (a) A merchant may not accept a card for payment |
|---|
| 33 | 33 | | in a face-to-face transaction unless the merchant requires the |
|---|
| 34 | 34 | | individual presenting the card to provide photo identification |
|---|
| 35 | 35 | | verifying the individual's identity as the cardholder if the |
|---|
| 36 | 36 | | transaction is for: |
|---|
| 37 | 37 | | (1) the purchase of goods or services in an amount of |
|---|
| 38 | 38 | | more than $200; or |
|---|
| 39 | 39 | | (2) the purchase of a stored value card as defined by |
|---|
| 40 | 40 | | Section 604.001. |
|---|
| 41 | 41 | | (b) Subsection (a) does not apply if the merchant requires |
|---|
| 42 | 42 | | the individual presenting the card for payment to: |
|---|
| 43 | 43 | | (1) electronically enter the individual's zip code to |
|---|
| 44 | 44 | | verify the individual's identity as authorized by Section 505.002; |
|---|
| 45 | 45 | | or |
|---|
| 46 | 46 | | (2) electronically enter the personal identification |
|---|
| 47 | 47 | | number (PIN) associated with the card. |
|---|
| 48 | 48 | | Sec. 506.003 LIABILITY FOR FAILURE TO OBTAIN |
|---|
| 49 | 49 | | IDENTIFICATION. In the event the merchant fails to obtain photo |
|---|
| 50 | 50 | | identification for a card transaction or the individual's zip code |
|---|
| 51 | 51 | | for a credit card transaction and the stored value transaction was |
|---|
| 52 | 52 | | not authorized by the cardholder, then the merchant shall be liable |
|---|
| 53 | 53 | | to the cardholder or the card issuing financial institution for all |
|---|
| 54 | 54 | | losses that may be attributed to such failure. |
|---|
| 55 | 55 | | SECTION 2. This Act takes effect January 1, 2016. |
|---|