| 1 | 1 | | By: Creighton S.B. No. 1596 |
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| 2 | 2 | | (In the Senate - Filed March 12, 2015; March 23, 2015, read |
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| 3 | 3 | | first time and referred to Committee on Business and Commerce; |
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| 4 | 4 | | April 15, 2015, reported favorably by the following vote: Yeas 9, |
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| 5 | 5 | | Nays 0; April 15, 2015, sent to printer.) |
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| 6 | 6 | | Click here to see the committee vote |
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| 7 | 7 | | |
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| 8 | 8 | | |
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| 9 | 9 | | A BILL TO BE ENTITLED |
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| 10 | 10 | | AN ACT |
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| 11 | 11 | | relating to authorizing certain private schools to charge fees for |
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| 12 | 12 | | processing or handling certain payments or payment transactions. |
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| 13 | 13 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 14 | 14 | | SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is |
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| 15 | 15 | | amended by adding Chapter 111 to read as follows: |
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| 16 | 16 | | CHAPTER 111. PRIVATE SCHOOLS |
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| 17 | 17 | | Sec. 111.001. DEFINITIONS. In this chapter: |
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| 18 | 18 | | (1) "Cardholder" means the person named on the face of |
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| 19 | 19 | | a credit or debit card to whom or for whose benefit the card is |
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| 20 | 20 | | issued. |
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| 21 | 21 | | (2) "Credit card" means a card or device issued under |
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| 22 | 22 | | an agreement by which the issuer gives to a cardholder the right to |
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| 23 | 23 | | obtain credit from the issuer or another person. |
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| 24 | 24 | | (3) "Debit card" has the meaning assigned by Section |
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| 25 | 25 | | 502.001. |
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| 26 | 26 | | (4) "Private school" means a school that: |
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| 27 | 27 | | (A) offers a course of instruction for students |
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| 28 | 28 | | in one or more grades from prekindergarten through grade 12; |
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| 29 | 29 | | (B) is not operated by a governmental entity; and |
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| 30 | 30 | | (C) is accredited by an accrediting agency that |
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| 31 | 31 | | is a member of the Texas Private School Accreditation Commission. |
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| 32 | 32 | | Sec. 111.002. CHARGES AND FEES FOR CERTAIN PAYMENTS AT |
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| 33 | 33 | | PRIVATE SCHOOLS. (a) This section applies to a payment of |
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| 34 | 34 | | tuition, a fee, or another charge to a private school that is made |
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| 35 | 35 | | or authorized in person, by mail, by telephone call, or through the |
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| 36 | 36 | | Internet by means of: |
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| 37 | 37 | | (1) a credit card; |
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| 38 | 38 | | (2) a debit card; or |
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| 39 | 39 | | (3) an electronic funds transfer. |
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| 40 | 40 | | (b) A private school may charge a fee or other amount in |
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| 41 | 41 | | connection with a payment to which this section applies, in |
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| 42 | 42 | | addition to the amount of the tuition, fee, or other charge being |
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| 43 | 43 | | paid, including: |
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| 44 | 44 | | (1) a discount, convenience, or service charge for the |
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| 45 | 45 | | transaction; or |
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| 46 | 46 | | (2) a service charge in connection with a payment |
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| 47 | 47 | | transaction that is dishonored or refused for lack of funds or |
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| 48 | 48 | | insufficient funds. |
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| 49 | 49 | | (c) A fee or other charge under this section must be in an |
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| 50 | 50 | | amount reasonable and necessary to reimburse the school for the |
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| 51 | 51 | | expense incurred by the school in processing and handling the |
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| 52 | 52 | | payment or payment transaction. |
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| 53 | 53 | | (d) Before accepting a payment by credit card, debit card, |
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| 54 | 54 | | or electronic funds transfer, the school shall notify the |
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| 55 | 55 | | cardholder or other person making the payment of any fee to be |
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| 56 | 56 | | charged under this section. |
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| 57 | 57 | | SECTION 2. Section 59.402(b), Finance Code, is amended to |
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| 58 | 58 | | read as follows: |
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| 59 | 59 | | (b) This section does not apply to: |
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| 60 | 60 | | (1) a state agency, county, local governmental entity, |
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| 61 | 61 | | or other governmental entity that accepts a debit or stored value |
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| 62 | 62 | | card for the payment of fees, taxes, or other charges; or |
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| 63 | 63 | | (2) a private school that accepts a debit card for the |
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| 64 | 64 | | payment of fees or other charges, as provided by Section 111.002, |
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| 65 | 65 | | Business & Commerce Code. |
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| 66 | 66 | | SECTION 3. Section 339.001(b), Finance Code, is amended to |
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| 67 | 67 | | read as follows: |
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| 68 | 68 | | (b) This section does not apply to: |
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| 69 | 69 | | (1) a state agency, county, local governmental entity, |
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| 70 | 70 | | or other governmental entity that accepts a credit card for the |
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| 71 | 71 | | payment of fees, taxes, or other charges; or |
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| 72 | 72 | | (2) a private school that accepts a credit card for the |
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| 73 | 73 | | payment of fees or other charges, as provided by Section 111.002, |
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| 74 | 74 | | Business & Commerce Code. |
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| 75 | 75 | | SECTION 4. This Act takes effect immediately if it receives |
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| 76 | 76 | | a vote of two-thirds of all the members elected to each house, as |
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| 77 | 77 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 78 | 78 | | Act does not receive the vote necessary for immediate effect, this |
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| 79 | 79 | | Act takes effect September 1, 2015. |
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| 80 | 80 | | * * * * * |
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