S.B. No. 641
AN ACT
relating to debit card or stored value card surcharges; providing a
civil penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter E, Chapter 59, Finance Code, is
transferred to Title 12, Business & Commerce Code, redesignated as
Chapter 604A, Business & Commerce Code, and amended to read as
follows:
CHAPTER 604A [SUBCHAPTER E]. PROHIBITION OF CERTAIN SURCHARGES
[SURCHARGE]
Sec. 604A.001 [59.401]. DEFINITIONS. In this chapter
[subchapter]:
(1) "Cardholder" means the person named on the face of
a debit or stored value card to whom or for whose benefit the card is
issued.
(2) "Debit card" has the meaning assigned by [in]
Section 502.001[, Business & Commerce Code].
(3) "Merchant" means a person in the business of
selling or leasing goods or services.
(4) "Stored value card" has the meaning assigned by
[as defined in] Section 604.001(1), [Business & Commerce Code,] but
does not include the meaning assigned by [as defined in] Section
604.001(2)[, Business & Commerce Code].
(5) "Surcharge" means an increase in the price charged
for goods or services imposed on a buyer who pays with a debit or
stored value card that is not imposed on a buyer who pays by other
means. The term does not include a discounted price charged for
goods or services to a buyer who pays with cash.
Sec. 604A.002 [59.402]. IMPOSITION OF SURCHARGE FOR USE OF
DEBIT OR STORED VALUE CARD. (a) In a sale of goods or services, a
merchant may not impose a surcharge on a buyer who uses a debit or
stored value card instead of cash, a check, credit card, or a
similar means of payment.
(b) This section does not apply to a state agency, county,
local governmental entity, or other governmental entity that
accepts a debit or stored value card for the payment of fees, taxes,
or other charges.
Sec. 604A.003. CIVIL PENALTY. (a) A person who knowingly
violates Section 604A.002 is liable to the state for a civil penalty
in an amount not to exceed $500 for each violation. The attorney
general or the prosecuting attorney in the county in which the
violation occurs may bring:
(1) a suit to recover the civil penalty imposed under
this section; and
(2) an action in the name of the state to restrain or
enjoin a person from violating this chapter.
(b) Before bringing the action, the attorney general or
prosecuting attorney shall give the person notice of the person's
noncompliance and liability for a civil penalty. The notice must:
(1) contain guidance to assist the person in complying
with this chapter;
(2) advise the person of the prohibition under Section
604A.002; and
(3) state that the person may be liable for a civil
penalty for a subsequent violation of Section 604A.002.
(b-1) If the person complies with Section 604A.002 not later
than the 30th day after the date of the notice under Subsection (b),
the violation is cured and the person is not liable for the civil
penalty. A person who has previously received notice of
noncompliance under Subsection (b) is not entitled to notice of or
the opportunity to cure a subsequent violation of Section 604A.002.
(c) The attorney general or the prosecuting attorney, as
appropriate, is entitled to recover reasonable expenses incurred in
obtaining injunctive relief, civil penalties, or both, under this
section, including reasonable attorney's fees, court costs, and
investigatory costs.
SECTION 2. The changes in law made by this Act apply only to
a sale of goods or services occurring on or after the effective date
of this Act. A sale of goods or services occurring before the
effective date of this Act is governed by the law in effect on the
date the sale occurred, and the former law is continued in effect
for that purpose.
SECTION 3. This Act takes effect September 1, 2015.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 641 passed the Senate on
April 15, 2015, by the following vote: Yeas 29, Nays 2; and that
the Senate concurred in House amendment on May 13, 2015, by the
following vote: Yeas 29, Nays 2.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 641 passed the House, with
amendment, on May 1, 2015, by the following vote: Yeas 113,
Nays 22, two present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor