85R4162 CLG-F
By: Longoria H.B. No. 411
A BILL TO BE ENTITLED
AN ACT
relating to requiring photo identification for certain purchases
paid with a credit card or debit card.
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 508 to read as follows:
CHAPTER 508. REQUIRING VERIFICATION OF IDENTITY FOR CERTAIN
PURCHASES PAID WITH CREDIT CARD OR DEBIT CARD
Sec. 508.001. DEFINITIONS. In this chapter:
(1) "Cardholder" means the person named on the face of
a credit card or debit card to whom or for whose benefit the credit
card or debit card is issued.
(2) "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.
(3) "Debit card" means a card, device, or other means
of access to an individual's account at a financial institution
that the individual may use to initiate electronic fund transfers.
(4) "Merchant" means a person in the business of
selling goods or services.
(5) "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. 508.002. REQUIRING PHOTO IDENTIFICATION FOR CERTAIN
CREDIT OR DEBIT CARD TRANSACTIONS. (a) A merchant may not accept a
credit card or debit card for payment in a face-to-face transaction
unless the merchant requires the individual presenting the credit
card or debit 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:
(1) the individual presenting the credit card for
payment to electronically enter the individual's zip code to verify
the individual's identity as authorized by Section 505.002; or
(2) the individual presenting the credit card or debit
card for payment to electronically enter the personal
identification number (PIN) associated with the card.
Sec. 508.003. LIABILITY FOR FAILURE TO OBTAIN
IDENTIFICATION. A merchant who violates Section 508.002 in
connection with a transaction described by that section that is not
authorized by the cardholder is liable to the cardholder or the
financial institution that issued the credit card or debit card for
all losses attributable to the violation.
SECTION 2. This Act takes effect January 1, 2018.