| 1 | 1 | | 85R4162 CLG-F |
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| 2 | 2 | | By: Longoria H.B. No. 411 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to requiring photo identification for certain purchases |
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| 8 | 8 | | paid with a credit card or debit card. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subtitle A, Title 11, Business & Commerce Code, |
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| 11 | 11 | | is amended by adding Chapter 508 to read as follows: |
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| 12 | 12 | | CHAPTER 508. REQUIRING VERIFICATION OF IDENTITY FOR CERTAIN |
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| 13 | 13 | | PURCHASES PAID WITH CREDIT CARD OR DEBIT CARD |
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| 14 | 14 | | Sec. 508.001. DEFINITIONS. In this chapter: |
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| 15 | 15 | | (1) "Cardholder" means the person named on the face of |
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| 16 | 16 | | a credit card or debit card to whom or for whose benefit the credit |
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| 17 | 17 | | card or debit card is issued. |
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| 18 | 18 | | (2) "Credit card" means a card or device issued under |
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| 19 | 19 | | an agreement by which the issuer gives to a cardholder the right to |
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| 20 | 20 | | obtain credit from the issuer or another person. |
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| 21 | 21 | | (3) "Debit card" means a card, device, or other means |
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| 22 | 22 | | of access to an individual's account at a financial institution |
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| 23 | 23 | | that the individual may use to initiate electronic fund transfers. |
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| 24 | 24 | | (4) "Merchant" means a person in the business of |
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| 25 | 25 | | selling goods or services. |
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| 26 | 26 | | (5) "Photo identification" means a card or other |
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| 27 | 27 | | document that: |
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| 28 | 28 | | (A) is issued by a governmental entity to |
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| 29 | 29 | | identify an individual; and |
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| 30 | 30 | | (B) displays a photograph of the individual |
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| 31 | 31 | | identified on the card or other document. |
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| 32 | 32 | | Sec. 508.002. REQUIRING PHOTO IDENTIFICATION FOR CERTAIN |
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| 33 | 33 | | CREDIT OR DEBIT CARD TRANSACTIONS. (a) A merchant may not accept a |
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| 34 | 34 | | credit card or debit card for payment in a face-to-face transaction |
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| 35 | 35 | | unless the merchant requires the individual presenting the credit |
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| 36 | 36 | | card or debit card to provide photo identification verifying the |
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| 37 | 37 | | individual's identity as the cardholder if the transaction is for: |
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| 38 | 38 | | (1) the purchase of goods or services in an amount of |
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| 39 | 39 | | more than $200; or |
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| 40 | 40 | | (2) the purchase of a stored value card as defined by |
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| 41 | 41 | | Section 604.001. |
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| 42 | 42 | | (b) Subsection (a) does not apply if the merchant requires: |
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| 43 | 43 | | (1) the individual presenting the credit card for |
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| 44 | 44 | | payment to electronically enter the individual's zip code to verify |
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| 45 | 45 | | the individual's identity as authorized by Section 505.002; or |
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| 46 | 46 | | (2) the individual presenting the credit card or debit |
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| 47 | 47 | | card for payment to electronically enter the personal |
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| 48 | 48 | | identification number (PIN) associated with the card. |
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| 49 | 49 | | Sec. 508.003. LIABILITY FOR FAILURE TO OBTAIN |
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| 50 | 50 | | IDENTIFICATION. A merchant who violates Section 508.002 in |
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| 51 | 51 | | connection with a transaction described by that section that is not |
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| 52 | 52 | | authorized by the cardholder is liable to the cardholder or the |
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| 53 | 53 | | financial institution that issued the credit card or debit card for |
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| 54 | 54 | | all losses attributable to the violation. |
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| 55 | 55 | | SECTION 2. This Act takes effect January 1, 2018. |
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