| 1 | 1 | | 85R4164 CLG-F |
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| 2 | 2 | | By: Longoria H.B. No. 721 |
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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 photo identification requirements for certain stored |
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| 8 | 8 | | value card transactions. |
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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. Chapter 604, Business & Commerce Code, is |
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| 11 | 11 | | amended by adding Subchapter E to read as follows: |
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| 12 | 12 | | SUBCHAPTER E. REQUIRING VERIFICATION OF IDENTITY FOR CERTAIN |
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| 13 | 13 | | STORED VALUE CARD TRANSACTIONS |
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| 14 | 14 | | Sec. 604.201. DEFINITIONS. In this subchapter: |
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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 or leasing 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. 604.202. APPLICABILITY OF SUBCHAPTER. (a) This |
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| 33 | 33 | | subchapter does not apply to a merchant who sells or leases goods or |
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| 34 | 34 | | services at not more than 50 retail locations in this state. |
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| 35 | 35 | | (b) Notwithstanding Section 604.002, this subchapter |
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| 36 | 36 | | applies to any point of sale transaction in which an individual |
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| 37 | 37 | | seeks to pay a merchant for the purchase of or to add value to any |
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| 38 | 38 | | stored value card. |
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| 39 | 39 | | Sec. 604.203. REQUIRING PHOTO IDENTIFICATION FOR CREDIT OR |
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| 40 | 40 | | DEBIT CARD TRANSACTION. (a) A merchant may not accept a credit card |
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| 41 | 41 | | or debit card for payment in a point of sale transaction for the |
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| 42 | 42 | | purchase of or to add value to a stored value card unless the |
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| 43 | 43 | | merchant requires the individual using the credit card or debit |
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| 44 | 44 | | card to provide photo identification verifying the individual's |
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| 45 | 45 | | identity as the cardholder. |
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| 46 | 46 | | (b) Subsection (a) does not apply if the merchant requires: |
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| 47 | 47 | | (1) the individual presenting the credit card for |
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| 48 | 48 | | payment to provide the individual's zip code to verify the |
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| 49 | 49 | | individual's identity as authorized by Section 505.002; or |
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| 50 | 50 | | (2) the individual using the credit card or debit card |
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| 51 | 51 | | to electronically enter the personal identification number (PIN) or |
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| 52 | 52 | | other unique identifier serving as an electronic password |
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| 53 | 53 | | associated with the card. |
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| 54 | 54 | | Sec. 604.204. LIABILITY FOR FAILURE TO OBTAIN |
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| 55 | 55 | | IDENTIFICATION. A merchant who violates Section 604.203 in |
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| 56 | 56 | | connection with a transaction described by that section that is not |
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| 57 | 57 | | authorized by the cardholder is liable to the cardholder or the |
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| 58 | 58 | | financial institution or other issuer that issued the credit card |
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| 59 | 59 | | or debit card for all losses attributable to the violation. |
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| 60 | 60 | | SECTION 2. This Act takes effect September 1, 2018. |
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