85R4164 CLG-F
By: Longoria H.B. No. 721
A BILL TO BE ENTITLED
AN ACT
relating to photo identification requirements for certain stored
value card transactions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 604, Business & Commerce Code, is
amended by adding Subchapter E to read as follows:
SUBCHAPTER E. REQUIRING VERIFICATION OF IDENTITY FOR CERTAIN
STORED VALUE CARD TRANSACTIONS
Sec. 604.201. DEFINITIONS. In this subchapter:
(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 or leasing 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. 604.202. APPLICABILITY OF SUBCHAPTER. (a) This
subchapter does not apply to a merchant who sells or leases goods or
services at not more than 50 retail locations in this state.
(b) Notwithstanding Section 604.002, this subchapter
applies to any point of sale transaction in which an individual
seeks to pay a merchant for the purchase of or to add value to any
stored value card.
Sec. 604.203. REQUIRING PHOTO IDENTIFICATION FOR CREDIT OR
DEBIT CARD TRANSACTION. (a) A merchant may not accept a credit card
or debit card for payment in a point of sale transaction for the
purchase of or to add value to a stored value card unless the
merchant requires the individual using the credit card or debit
card to provide photo identification verifying the individual's
identity as the cardholder.
(b) Subsection (a) does not apply if the merchant requires:
(1) the individual presenting the credit card for
payment to provide the individual's zip code to verify the
individual's identity as authorized by Section 505.002; or
(2) the individual using the credit card or debit card
to electronically enter the personal identification number (PIN) or
other unique identifier serving as an electronic password
associated with the card.
Sec. 604.204. LIABILITY FOR FAILURE TO OBTAIN
IDENTIFICATION. A merchant who violates Section 604.203 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 or other issuer that issued the credit card
or debit card for all losses attributable to the violation.
SECTION 2. This Act takes effect September 1, 2018.