Texas 2017 - 85th Regular

Texas Senate Bill SB560 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Hancock S.B. No. 560
2		-	(Parker)
	1	+	S.B. No. 560
3	2
4	3
5		-	A BILL TO BE ENTITLED
6	4		AN ACT
7	5		relating to surcharges imposed for the use of a credit card;
8	6		providing a civil penalty.
9	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	8		SECTION 1. Section 604A.001, Business & Commerce Code, is
11	9		amended by adding Subdivision (1-a) and amending Subdivision (5) to
12	10		read as follows:
13	11		(1-a) "Credit card" has the meaning assigned by
14	12		Section 502.001.
15	13		(5) "Surcharge" means an increase in the price charged
16	14		for goods or services imposed on a buyer who pays with a credit,
17	15		debit, or stored value card that is not imposed on a buyer who pays
18	16		by other means. The term does not include a discounted price
19	17		charged for goods or services to a buyer who pays with cash.
20	18		SECTION 2. Sections 604A.003(a), (b), and (b-1), Business &
21	19		Commerce Code, are amended to read as follows:
22	20		(a) A person who knowingly violates Section 604A.002 or
23	21		604A.0021 is liable to the state for a civil penalty in an amount
24	22		not to exceed $500 for each violation. The attorney general or the
25	23		prosecuting attorney in the county in which the violation occurs
26	24		may bring:
27	25		(1) a suit to recover the civil penalty imposed under
28	26		this section; and
29	27		(2) an action in the name of the state to restrain or
30	28		enjoin a person from violating this chapter.
31	29		(b) Before bringing the action, the attorney general or
32	30		prosecuting attorney shall give the person notice of the person's
33	31		noncompliance and liability for a civil penalty. The notice must:
34	32		(1) contain guidance to assist the person in complying
35	33		with this chapter;
36	34		(2) advise the person of the prohibitions
37	35		[prohibition] under Sections [Section] 604A.002 and 604A.0021; and
38	36		(3) state that the person may be liable for a civil
39	37		penalty for a subsequent violation of Section 604A.002 or
40	38		604A.0021.
41	39		(b-1) If the person complies with Sections [Section]
42	40		604A.002 and 604A.0021 not later than the 30th day after the date of
43	41		the notice under Subsection (b), the violation is cured and the
44	42		person is not liable for the civil penalty. A person who has
45	43		previously received notice of noncompliance under Subsection (b) is
46	44		not entitled to notice of or the opportunity to cure a subsequent
47	45		violation of Section 604A.002 or 604A.0021.
48	46		SECTION 3. Section 14.101, Finance Code, is amended to read
49	47		as follows:
50	48		Sec. 14.101. GENERAL DUTIES OF COMMISSIONER. The
51	49		commissioner shall enforce [Section 339.001,] this chapter,
52	50		Subtitles B and C of Title 4, Chapter 393 with respect to a credit
53	51		access business, and Chapter 394 in person or through an assistant
54	52		commissioner, examiner, or other employee of the office.
55	53		SECTION 4. Section 14.201, Finance Code, is amended to read
56	54		as follows:
57	55		Sec. 14.201. INVESTIGATION AND ENFORCEMENT AUTHORITY.
58	56		Investigative and enforcement authority under this subchapter
59	57		applies only to [Section 339.001,] this chapter, Subtitles B and C
60	58		of Title 4, Chapter 393 with respect to a credit access business,
61	59		and Chapter 394.
62	60		SECTION 5. Section 14.2015(a), Finance Code, is amended to
63	61		read as follows:
64	62		(a) Except as provided by Subsection (b), information or
65	63		material obtained or compiled by the commissioner in relation to an
66	64		examination or investigation by the commissioner or the
67	65		commissioner's representative of a license holder, registrant,
68	66		applicant, or other person under [Section 339.001,] Subtitle B or
69	67		C, Title 4, Subchapter G of Chapter 393, or Chapter 394 is
70	68		confidential and may not be disclosed by the commissioner or an
71	69		officer or employee of the Office of Consumer Credit Commissioner,
72	70		including:
73	71		(1) information obtained from a license holder,
74	72		registrant, applicant, or other person examined or investigated
75	73		under [Section 339.001,] Subtitle B or C, Title 4, Subchapter G of
76	74		Chapter 393, or Chapter 394;
77	75		(2) work performed by the commissioner or the
78	76		commissioner's representative on information obtained from a
79	77		license holder, registrant, applicant, or other person for the
80	78		purposes of an examination or investigation conducted under
81	79		[Section 339.001,] Subtitle B or C, Title 4, Chapter 393 with
82	80		respect to a credit access business, or Chapter 394;
83	81		(3) a report on an examination or investigation of a
84	82		license holder, registrant, applicant, or other person conducted
85	83		under [Section 339.001,] Subtitle B or C, Title 4, Chapter 393 with
86	84		respect to a credit access business, or Chapter 394; and
87	85		(4) any written communications between the license
88	86		holder, registrant, applicant, or other person, as applicable, and
89	87		the commissioner or the commissioner's representative relating to
90	88		or referencing an examination or investigation conducted under
91	89		[Section 339.001,] Subtitle B or C, Title 4, Chapter 393 with
92	90		respect to a credit access business, or Chapter 394.
93	91		SECTION 6. Section 14.251(b), Finance Code, is amended to
94	92		read as follows:
95	93		(b) The commissioner may order a person who violates or
96	94		causes a violation of [Section 339.001,] this chapter, Chapter 394,
97	95		or Subtitle B, Title 4, or a rule adopted under [Section 339.001,]
98	96		this chapter, Chapter 394, or Subtitle B, Title 4, or a credit
99	97		access business who violates or causes a violation of Chapter 393 or
100	98		a rule adopted under Chapter 393, to make restitution to an
101	99		identifiable person injured by the violation.
102	100		SECTION 7. Section 14.261(a), Finance Code, is amended to
103	101		read as follows:
104	102		(a) In administering this chapter, the commissioner may
105	103		accept assurance of voluntary compliance from a person who is
106	104		engaging in or has engaged in an act or practice in violation of:
107	105		(1) [Section 339.001;
108	106		[(2)] this chapter or a rule adopted under this
109	107		chapter;
110	108		(2) [(3)] Chapter 393, if the person is a credit
111	109		access business, or Chapter 394; or
112	110		(3) [(4)] Subtitle B, Title 4, or a rule adopted under
113	111		Subtitle B, Title 4.
114	112		SECTION 8. Section 14.262, Finance Code, is amended to read
115	113		as follows:
116	114		Sec. 14.262. EFFECT OF ASSURANCE. (a) An assurance of
117	115		voluntary compliance is not an admission of a violation of:
118	116		(1) [Section 339.001;
119	117		[(2)] this chapter or a rule adopted under this
120	118		chapter;
121	119		(2) [(3)] Chapter 393 with respect to a credit access
122	120		business or Chapter 394; or
123	121		(3) [(4)] Subtitle B, Title 4, or a rule adopted under
124	122		Subtitle B, Title 4.
125	123		(b) Unless an assurance of voluntary compliance is
126	124		rescinded by agreement or voided by a court for good cause, a
127	125		subsequent failure to comply with the assurance is prima facie
128	126		evidence of a violation of:
129	127		(1) [Section 339.001;
130	128		[(2)] this chapter or a rule adopted under this
131	129		chapter;
132	130		(2) [(3)] Chapter 393 with respect to a credit access
133	131		business or Chapter 394; or
134	132		(3) [(4)] Subtitle B, Title 4, or a rule adopted under
135	133		Subtitle B, Title 4.
136	134		SECTION 9. Section 339.001, Finance Code, is transferred to
137	135		Chapter 604A, Business & Commerce Code, redesignated as Section
138	136		604A.0021, Business & Commerce Code, and amended to read as
139	137		follows:
140	138		Sec. 604A.0021 [339.001]. IMPOSITION OF SURCHARGE FOR USE
141	139		OF CREDIT CARD. (a) In a sale of goods or services, a seller may
142	140		not impose a surcharge on a buyer who uses a credit card for an
143	141		extension of credit instead of cash, a check, or a similar means of
144	142		payment.
145	143		(b) This section does not apply to:
146	144		(1) a state agency, county, local governmental entity,
147	145		or other governmental entity that accepts a credit card for the
148	146		payment of fees, taxes, or other charges; or
149	147		(2) a private school that accepts a credit card for the
150	148		payment of fees or other charges, as provided by Section 111.002[,
151	149		Business & Commerce Code].
152	150		(c) [The consumer credit commissioner has exclusive
153	151		jurisdiction to enforce this section.
154	152		[(d) The Finance Commission of Texas may adopt rules
155	153		relating to this section. Rules adopted pursuant to this section
156	154		shall be consistent with federal laws and regulations governing
157	155		credit card transactions described by this section.
158	156		[(e)] This section does not create a cause of action against
159	157		an individual for violation of this section.
160	158		SECTION 10. This Act takes effect September 1, 2017.
	159	+	______________________________ ______________________________
	160	+	President of the Senate Speaker of the House
	161	+	I hereby certify that S.B. No. 560 passed the Senate on
	162	+	April 19, 2017, by the following vote: Yeas 31, Nays 0.
	163	+	______________________________
	164	+	Secretary of the Senate
	165	+	I hereby certify that S.B. No. 560 passed the House on
	166	+	May 19, 2017, by the following vote: Yeas 144, Nays 0, two
	167	+	present not voting.
	168	+	______________________________
	169	+	Chief Clerk of the House
	170	+	Approved:
	171	+	______________________________
	172	+	Date
	173	+	______________________________
	174	+	Governor