By: Longoria H.B. No. 3526
A BILL TO BE ENTITLED
AN ACT
relating to requiring photo identification for certain card
purchases.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle A, Title 11, Business & Commerce Code,
is amended by adding Chapter 506 to read as follows:
CHAPTER 506. REQUIRING VERIFICATION OF IDENTITY FOR CERTAIN CARD
PURCHASES
Sec. 506.001. DEFINITIONS. In this chapter:
(1) "Cardholder" means the person named on the face of
a credit 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 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. 506.002. REQUIRING PHOTO IDENTIFICATION FOR CERTAIN
CARD TRANSACTIONS. (a) A merchant may not accept a card for payment
in a face-to-face transaction unless the merchant requires the
individual presenting the card to provide photo identification
verifying the individual's identity as the cardholder if the
transaction is for:
(1) the purchase of goods or services in an amount of
more than $200; or
(2) the purchase of a stored value card as defined by
Section 604.001.
(b) Subsection (a) does not apply if the merchant requires
the individual presenting the card for payment to:
(1) electronically enter the individual's zip code to
verify the individual's identity as authorized by Section 505.002;
or
(2) electronically enter the personal identification
number (PIN) associated with the card.
Sec. 506.003 LIABILITY FOR FAILURE TO OBTAIN
IDENTIFICATION. In the event the merchant fails to obtain photo
identification 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 January 1, 2016.