| 1 | 1 | | By: Lambert (Senate Sponsor - Schwertner) H.B. No. 3615 |
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| 2 | 2 | | (In the Senate - Received from the House May 4, 2023; |
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| 3 | 3 | | May 10, 2023, read first time and referred to Committee on Business & |
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| 4 | 4 | | Commerce; May 21, 2023, reported adversely, with favorable |
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| 5 | 5 | | Committee Substitute by the following vote: Yeas 7, Nays 4; |
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| 6 | 6 | | May 21, 2023, sent to printer.) |
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| 7 | 7 | | Click here to see the committee vote |
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| 8 | 8 | | COMMITTEE SUBSTITUTE FOR H.B. No. 3615 By: Schwertner |
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| 9 | 9 | | |
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| 10 | 10 | | |
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| 11 | 11 | | A BILL TO BE ENTITLED |
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| 12 | 12 | | AN ACT |
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| 13 | 13 | | relating to surcharges imposed for the use of a credit card. |
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| 14 | 14 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 15 | 15 | | SECTION 1. Section 604A.0021, Business & Commerce Code, is |
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| 16 | 16 | | repealed. |
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| 17 | 17 | | SECTION 2. The heading to Chapter 604A, Business & Commerce |
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| 18 | 18 | | Code, is amended to read as follows: |
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| 19 | 19 | | CHAPTER 604A. PROHIBITION OR REGULATION OF CERTAIN SURCHARGES |
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| 20 | 20 | | SECTION 3. Section 604A.003, Business & Commerce Code, is |
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| 21 | 21 | | amended to read as follows: |
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| 22 | 22 | | Sec. 604A.003. CIVIL PENALTY. (a) A person who knowingly |
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| 23 | 23 | | violates Section 604A.002 [or 604A.0021] is liable to the state for |
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| 24 | 24 | | a civil penalty in an amount not to exceed $500 for each violation. |
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| 25 | 25 | | The attorney general or the prosecuting attorney in the county in |
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| 26 | 26 | | which the violation occurs may bring: |
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| 27 | 27 | | (1) a suit to recover the civil penalty imposed under |
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| 28 | 28 | | this section; and |
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| 29 | 29 | | (2) an action in the name of the state to restrain or |
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| 30 | 30 | | enjoin a person from violating this chapter. |
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| 31 | 31 | | (b) Before bringing the action, the attorney general or |
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| 32 | 32 | | prosecuting attorney shall give the person notice of the person's |
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| 33 | 33 | | noncompliance and liability for a civil penalty. The notice must: |
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| 34 | 34 | | (1) contain guidance to assist the person in complying |
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| 35 | 35 | | with this chapter; |
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| 36 | 36 | | (2) advise the person of the prohibitions under |
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| 37 | 37 | | Section [Sections] 604A.002 [and 604A.0021]; and |
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| 38 | 38 | | (3) state that the person may be liable for a civil |
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| 39 | 39 | | penalty for a subsequent violation of Section 604A.002 [or |
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| 40 | 40 | | 604A.0021]. |
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| 41 | 41 | | (b-1) If the person complies with Section [Sections] |
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| 42 | 42 | | 604A.002 [and 604A.0021] not later than the 30th day after the date |
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| 43 | 43 | | of the notice under Subsection (b), the violation is cured and the |
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| 44 | 44 | | person is not liable for the civil penalty. A person who has |
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| 45 | 45 | | previously received notice of noncompliance under Subsection (b) is |
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| 46 | 46 | | not entitled to notice of or the opportunity to cure a subsequent |
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| 47 | 47 | | violation of Section 604A.002 [or 604A.0021]. |
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| 48 | 48 | | (c) The attorney general or the prosecuting attorney, as |
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| 49 | 49 | | appropriate, is entitled to recover reasonable expenses incurred in |
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| 50 | 50 | | obtaining injunctive relief, civil penalties, or both, under this |
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| 51 | 51 | | section, including reasonable attorney's fees, court costs, and |
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| 52 | 52 | | investigatory costs. |
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| 53 | 53 | | SECTION 4. Chapter 604A, Business & Commerce Code, is |
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| 54 | 54 | | amended by adding Section 604A.004 to read as follows: |
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| 55 | 55 | | Sec. 604A.004. IMPOSITION OF SURCHARGE FOR USE OF CREDIT |
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| 56 | 56 | | CARD. (a) A merchant may impose a surcharge on a buyer who uses a |
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| 57 | 57 | | credit card for an extension of credit instead of cash, a check, or |
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| 58 | 58 | | a similar means of payment to pay for the purchase of goods or |
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| 59 | 59 | | services. The buyer is obligated to pay any surcharge imposed on |
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| 60 | 60 | | the credit extension transaction under this section. |
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| 61 | 61 | | (b) A surcharge imposed under this section may not exceed |
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| 62 | 62 | | the amount necessary to offset the cost to the merchant of accepting |
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| 63 | 63 | | credit cards. |
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| 64 | 64 | | (c) Before a merchant may impose a surcharge under this |
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| 65 | 65 | | section, the merchant must provide to a buyer who uses a credit card |
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| 66 | 66 | | for an extension of credit a disclosure stating: "Customers who pay |
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| 67 | 67 | | with a credit card are responsible for the payment of a surcharge |
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| 68 | 68 | | that won't exceed what's necessary to cover our costs for accepting |
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| 69 | 69 | | credit cards.". |
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| 70 | 70 | | (d) A merchant who imposes a surcharge under this section |
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| 71 | 71 | | must disclose the surcharge on the receipt or other statement of |
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| 72 | 72 | | purchase given to the buyer. |
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| 73 | 73 | | SECTION 5. This Act takes effect September 1, 2023. |
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| 74 | 74 | | * * * * * |
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