87R1796 JES-D
By: Craddick H.B. No. 876
A BILL TO BE ENTITLED
AN ACT
relating to fees charged by certain persons for the method used for
payments made under an agreement.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is
amended by adding Chapter 116 to read as follows:
CHAPTER 116. FEES FOR CERTAIN PAYMENT METHODS
Sec. 116.0001. DEFINITIONS. In this chapter:
(1) "Payee" means an individual who resides in this
state or a corporation, trust, partnership, association, or other
private legal entity authorized to do business in this state that
receives money as payment under an agreement.
(2) "Person" means an individual, corporation, trust,
partnership, association, or other private legal entity.
Sec. 116.0002. FEE FOR CERTAIN PAYMENTS BY PAPER CHECK
PROHIBITED. (a) A person that makes a payment to a payee may not
charge an additional fee to the payee because the payee elects to
receive the payment by paper check instead of by an automated
clearinghouse transaction or other electronic funds transfer.
(b) A provision in a contract permitting a person to charge
or collect a fee from a payee in violation of Subsection (a) is void
and unenforceable.
SECTION 2. To the extent of a conflict between Section
116.0002(a), Business & Commerce Code, as added by this Act, and a
provision of a contract entered into before the effective date of
this Act, the provision of the contract prevails.
SECTION 3. This Act takes effect September 1, 2021.