Texas 2023 - 88th Regular

Texas Senate Bill SB1541 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1	88R7089 SRA-F
2	2	By: Parker S.B. No. 1541
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the charging of swipe fees on certain electronic
8	8	payment transactions; authorizing a civil penalty.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Title 12, Business & Commerce Code, is amended by
11	11	adding Chapter 610 to read as follows:
12	12	CHAPTER 610. CHARGING OF SWIPE FEES
13	13	Sec. 610.001. DEFINITIONS. In this chapter:
14	14	(1) "Assessment fee" means a fee, usually based on the
15	15	total amount of monthly sales, paid directly to the payment card
16	16	network for allowing a merchant to use a payment card or other
17	17	payment code or device in an electronic payment transaction.
18	18	(2) "Electronic payment transaction" means a
19	19	transaction in which a person uses a payment card or other payment
20	20	code or device issued or approved through a payment card network to
21	21	debit a deposit account or use a line of credit, whether
22	22	authorization is based on a signature, personal identification
23	23	number, or other means.
24	24	(3) "Interchange fee" means a fee charged to a
25	25	merchant for the purpose of compensating the payment card issuer
26	26	for the issuer's involvement in an electronic payment transaction.
27	27	(4) "Payment card" means a credit card, debit card,
28	28	check card, or other card that is issued to an authorized user to
29	29	purchase or obtain goods, services, money, or any other thing of
30	30	value.
31	31	(5) "Payment card issuer" means a lender, including a
32	32	financial institution, or a merchant that receives applications and
33	33	issues payment cards to individuals.
34	34	(6) "Payment card network" means an entity that
35	35	directly, or through a licensed member, processor, or agent,
36	36	provides the proprietary services, infrastructure, and software
37	37	that route information and data to conduct debit card or credit card
38	38	transaction authorization, clearance, and settlement, and that an
39	39	entity uses in order to accept as a form of payment a brand of debit
40	40	card, credit card, or other device that may be used to carry out
41	41	debit or credit transactions.
42	42	(7) "State or local tax" includes a tax imposed by this
43	43	state or a unit of local government of this state, including the
44	44	sales, excise, and use tax, motor fuels tax, hotel occupancy tax,
45	45	and the tax imposed on the rental of a motor vehicle, other than a
46	46	tax returned to a taxpayer in the form of a deduction or discount
47	47	under Section 151.423 or 151.424, Tax Code.
48	48	(8) "Swipe fee" means the interchange fee and, if
49	49	applicable, the assessment fee.
50	50	Sec. 610.002. EXCLUSION OF STATE OR LOCAL TAXES FROM SWIPE
51	51	FEES; MERCHANT DEDUCTION OR REBATE. (a) The amount of state or
52	52	local tax that is calculated as a percentage of the amount of an
53	53	electronic payment transaction made in this state and listed
54	54	separately on a payment invoice or other demand for payment must be
55	55	excluded from the total amount on which a swipe fee is charged for
56	56	that transaction.
57	57	(b) A payment card network shall with respect to each form
58	58	or type of electronic payment transaction:
59	59	(1) deduct the amount of state or local tax imposed
60	60	from the calculation of swipe fees attributable to the transaction
61	61	at the time of settlement; or
62	62	(2) rebate the merchant an amount equal to the amount
63	63	of swipe fees attributable to the state or local tax imposed on the
64	64	transaction.
65	65	(c) A deduction or rebate under this section must occur at
66	66	the time of settlement when the merchant is able to capture and
67	67	transmit state or local tax or fee amounts relevant to the sale at
68	68	the time of sale as part of the transaction finalization. If a
69	69	merchant is unable to capture and transmit tax or fee amounts
70	70	relevant to the sale at the time of sale, then the payment card
71	71	network must accept proof of tax or fee amounts collected on sales
72	72	subject to a swipe fee on the submission of sales data by the
73	73	merchant.
74	74	Sec. 610.003. CIVIL PENALTY; RESTITUTION. (a) A person who
75	75	violates this chapter is liable to this state for a civil penalty in
76	76	an amount not to exceed $1,000 for each violation.
77	77	(b) The attorney general may bring an action to:
78	78	(1) recover the civil penalty imposed under this
79	79	section; or
80	80	(2) obtain a temporary or permanent injunction to
81	81	restrain the violation.
82	82	(c) An action under this section may be brought in a
83	83	district court in:
84	84	(1) Travis County; or
85	85	(2) a county in which any part of the violation occurs.
86	86	(d) The attorney general shall deposit a civil penalty
87	87	collected under this section in the state treasury to the credit of
88	88	the general revenue fund.
89	89	(e) A person who violates this chapter shall refund a
90	90	merchant any swipe fees charged in violation of this chapter.
91	91	SECTION 2. This Act takes effect September 1, 2023.