| 8 | 4 | | AN ACT |
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| 9 | 5 | | relating to photo identification for certain debit or credit card |
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| 10 | 6 | | transactions. |
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| 11 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 8 | | SECTION 1. Subtitle A, Title 11, Business & Commerce Code, |
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| 13 | 9 | | is amended by adding Chapter 508 to read as follows: |
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| 14 | 10 | | CHAPTER 508. REQUIRING VERIFICATION OF IDENTITY FOR CERTAIN CARD |
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| 15 | 11 | | TRANSACTIONS |
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| 16 | 12 | | Sec. 508.001. DEFINITIONS. In this chapter: |
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| 17 | 13 | | (1) "Cardholder" means the person named on the face of |
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| 18 | 14 | | a credit card or debit card to whom or for whose benefit the credit |
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| 19 | 15 | | card or debit card is issued. |
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| 20 | 16 | | (2) "Credit card" means a card or device issued under |
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| 21 | 17 | | an agreement by which the issuer gives to a cardholder the right to |
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| 22 | 18 | | obtain credit from the issuer or another person. |
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| 23 | 19 | | (3) "Debit card" means a card, device, or other means |
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| 24 | 20 | | of access to an individual's account at a financial institution |
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| 25 | 21 | | that the individual may use to initiate electronic fund transfers. |
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| 26 | 22 | | (4) "Merchant" means a person in the business of |
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| 27 | 23 | | selling goods or services. |
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| 28 | 24 | | (5) "Mobile wallet" means a device that uses an |
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| 29 | 25 | | encrypted digital token to authenticate a cardholder's identity and |
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| 30 | 26 | | account information. |
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| 31 | 27 | | (6) "Photo identification" means a card or other |
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| 32 | 28 | | document that: |
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| 33 | 29 | | (A) is issued by a governmental entity to |
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| 34 | 30 | | identify an individual; and |
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| 35 | 31 | | (B) displays a photograph of the individual |
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| 36 | 32 | | identified on the card or other document. |
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| 37 | 33 | | Sec. 508.002. REQUIRING PHOTO IDENTIFICATION FOR CREDIT OR |
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| 38 | 34 | | DEBIT CARD TRANSACTION. (a) A merchant, in a point of sale |
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| 39 | 35 | | transaction, may require the individual using the credit card or |
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| 40 | 36 | | debit card to provide photo identification verifying the |
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| 41 | 37 | | individual's identity as the cardholder. |
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| 42 | 38 | | (b) A merchant may choose to not accept the card for payment |
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| 43 | 39 | | if the individual fails to provide photo identification verifying |
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| 44 | 40 | | the individual's identity as the cardholder. |
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| 45 | 41 | | (c) This section does not apply to transactions conducted |
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| 46 | 42 | | with a mobile wallet. |
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| 47 | 43 | | Sec. 508.003. EXPIRATION. This chapter expires September |
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| 48 | 44 | | 1, 2023. |
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| 49 | 45 | | SECTION 2. This Act takes effect January 1, 2018. |
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| 46 | + | ______________________________ ______________________________ |
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| 47 | + | President of the Senate Speaker of the House |
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| 48 | + | I hereby certify that S.B. No. 1381 passed the Senate on |
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| 49 | + | April 19, 2017, by the following vote: Yeas 30, Nays 1; and that |
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| 50 | + | the Senate concurred in House amendment on May 26, 2017, by the |
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| 51 | + | following vote: Yeas 30, Nays 1. |
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| 52 | + | ______________________________ |
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| 53 | + | Secretary of the Senate |
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| 54 | + | I hereby certify that S.B. No. 1381 passed the House, with |
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| 55 | + | amendment, on May 19, 2017, by the following vote: Yeas 144, |
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| 56 | + | Nays 0, two present not voting. |
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| 57 | + | ______________________________ |
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| 58 | + | Chief Clerk of the House |
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| 59 | + | Approved: |
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| 60 | + | ______________________________ |
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| 61 | + | Date |
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| 62 | + | ______________________________ |
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| 63 | + | Governor |
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