85R23688 GRM-D
By: Hughes, et al. S.B. No. 1381
(Longoria)
Substitute the following for S.B. No. 1381: No.
A BILL TO BE ENTITLED
AN ACT
relating to photo identification for certain debit or credit card
transactions.
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 CARD
TRANSACTIONS
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) "Mobile wallet" means a device that uses an
encrypted digital token to authenticate a cardholder's identity and
account information.
(6) "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 CREDIT OR
DEBIT CARD TRANSACTION. (a) A merchant, in a point of sale
transaction, may require the individual using the credit card or
debit card to provide photo identification verifying the
individual's identity as the cardholder.
(b) A merchant may choose to not accept the card for payment
if the individual fails to provide photo identification verifying
the individual's identity as the cardholder.
(c) This section does not apply to transactions conducted
with a mobile wallet.
Sec. 508.003. EXPIRATION. This chapter expires September
1, 2023.
SECTION 2. This Act takes effect January 1, 2018.