Texas 2025 - 89th Regular

Texas Senate Bill SB2056 Compare Versions

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	1	+	89R5341 SRA-D
1	2		By: Hancock S.B. No. 2056
2		-	(In the Senate - Filed March 7, 2025; March 17, 2025, read
3		-	first time and referred to Committee on Business & Commerce;
4		-	April 14, 2025, reported adversely, with favorable Committee
5		-	Substitute by the following vote: Yeas 10, Nays 0; April 14, 2025,
6		-	sent to printer.)
7		-	Click here to see the committee vote
8		-	COMMITTEE SUBSTITUTE FOR S.B. No. 2056 By: Nichols
9	3
10	4
11	5
12	6
13	7		A BILL TO BE ENTITLED
14	8		AN ACT
15		-	relating to anticompetitive and other unlawful practices and to
16		-	certain required disclosures relating to credit card transactions;
17		-	providing a civil penalty.
	9	+	relating to unlawful practices relating to credit card
	10	+	transactions; providing a civil penalty.
18	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
19	12		SECTION 1. Title 12, Business & Commerce Code, is amended by
20	13		adding Chapter 604B to read as follows:
21		-	CHAPTER 604B. ~~CERTAIN PROHIBITIONS AND REQUIREMENTS~~ RELATING TO
22		-	~~CREDIT CARD~~ TRANSACTIONS
	14	+	CHAPTER 604B. UNLAWFUL PRACTICES RELATING TO CREDIT CARD
	15	+	TRANSACTIONS
23	16		SUBCHAPTER A. GENERAL PROVISIONS
24	17		Sec. 604B.001. DEFINITIONS. In this chapter:
25	18		(1) "Assessment fee" means a fee paid to the payment
26	19		card network for allowing a merchant to use a payment card or other
27	20		payment code or device in a credit card transaction.
28		-	(2) "Cardholder" means the person to whom or for whose
29		-	benefit a credit card is issued.
	21	+	(2) "Cardholder" means the person named on the face of
	22	+	a credit card to whom or for whose benefit the credit card is
	23	+	issued.
30	24		(3) "Credit card" means a card or device issued under
31	25		an agreement by which the credit card issuer gives to a cardholder
32	26		the right to obtain credit from the issuer or another person.
33	27		(4) "Credit card issuer" means a lender, including a
34		-	financial institution, that issues credit cards to cardholders.
	28	+	financial institution, or a merchant that receives applications and
	29	+	issues credit cards to individuals.
35	30		(5) "Credit card transaction" means a transaction in
36	31		which a person uses a credit card or other payment code or device
37	32		issued or approved through a payment card network to use a line of
38	33		credit, whether authorization is based on a signature, personal
39	34		identification number, or other means.
40	35		(6) "Fee schedule" means any schedule, list, table,
41	36		chart, or similar document or agreement, whether or not publicly
42	37		disclosed, that sets forth or fixes the amount, or the formula for
43	38		determining the amount, of one or more fee rates.
44	39		(7) "Interchange fee" means a fee charged to a
45	40		merchant for the purpose of compensating the credit card issuer for
46	41		the issuer's involvement in a credit card transaction.
47	42		(8) "Merchant" means a person who accepts payment for
48	43		goods or services through a credit card transaction.
49	44		(9) "Payment card network" means an entity that
50	45		directly, or through a licensed member, processor, or agent,
51	46		provides the proprietary services, infrastructure, and software
52	47		that:
53	48		(A) route information and data to conduct a
54	49		credit card transaction authorization, clearance, and settlement;
55	50		and
56		-	(B) ~~a merchant~~ uses to accept as a form of payment
	51	+	(B) the entity uses to accept as a form of payment
57	52		a brand of credit card or other device that may be used to carry out
58	53		credit card transactions.
59	54		(10) "Swipe fee" means the interchange fee and, if
60	55		applicable, the assessment fee.
61		-	Sec. 604B.002. APPLICABILITY. This chapter applies only to
62		-	a credit card issuer that, together with any affiliates, had
	56	+	SUBCHAPTER B. CREDIT CARD ISSUERS
	57	+	Sec. 604B.051. APPLICABILITY. This subchapter applies only
	58	+	to a credit card issuer that, together with any affiliates, had
63	59		consolidated worldwide banking and nonbanking assets, including
64	60		affiliate assets, other than trust assets under management, of more
65	61		than $85 billion at any point during the previous calendar year.
66		-	SUBCHAPTER B. CREDIT CARD ISSUERS
67		-	Sec. 604B.051. PROHIBITED PRACTICES BY CREDIT CARD ISSUER.
68		-	A credit card issuer may not directly or indirectly through an
69		-	agent, processor, contract, requirement, condition, penalty,
70		-	inducement, technological specification, or otherwise:
	62	+	Sec. 604B.052. PROHIBITED PRACTICES BY CREDIT CARD ISSUER.
	63	+	A credit card issuer may not:
71	64		(1) fix or conspire to fix a swipe fee with, or on
72		-	behalf of, another credit card issuer or ~~any~~ payment card network;
	65	+	behalf of, another credit card issuer or payment card network;
73	66		(2) receive or charge an interchange fee with respect
74	67		to a credit card transaction in an amount that is included on or
75	68		determined by a fee schedule that:
76	69		(A) has been fixed, established, or recommended
77	70		by a payment card network; or
78	71		(B) the credit card issuer knows, or reasonably
79		-	should know, is being used in the same calendar year or has been
80		-	used in the previous calendar year by another credit card issuer
81		-	subject to this chapter to determine the amount of an interchange
82		-	fee with respect to a credit card transaction that the other credit
83		-	card issuer receives or charges;
	72	+	should know, is being used in the same calendar year by another
	73	+	credit card issuer subject to this subchapter to determine the
	74	+	amount of an interchange fee with respect to a credit card
	75	+	transaction that issuer receives or charges;
84	76		(3) charge a cardholder or a merchant a fee due to a
85	77		disputed credit card transaction unless:
86	78		(A) a finding of fact concludes that the
87	79		cardholder or merchant is responsible for the disputed transaction;
88	80		and
89	81		(B) the cardholder or merchant is provided
90	82		written notification of the finding of fact; or
91	83		(4) prohibit or penalize a merchant that offers a
92	84		cardholder a discount for using cash, a debit card, or a gift card
93	85		instead of a credit card for payment.
94		-	Sec. 604B.~~052~~. REQUIRED DISCLOSURE OF SWIPE FEES TO
	86	+	Sec. 604B.053. REQUIRED DISCLOSURE OF SWIPE FEES TO
95	87		CARDHOLDERS. A credit card issuer shall disclose in a clear and
96	88		conspicuous manner on a monthly statement sent to a cardholder that
97	89		has been issued a credit card by the credit card issuer:
98		-	(1) whether one or more swipe fees have been charged or
99		-	assessed on a credit card transaction listed on the statement;
100		-	(2) the amount of each swipe fee charged or assessed on
101		-	each credit card transaction listed on the statement; and
102		-	(3) the total of all fees described by Subdivision (2)
103		-	for the period covered by the applicable monthly billing cycle.
	90	+	(1) if one or more swipe fees have been charged to the
	91	+	cardholder on a credit card transaction; and
	92	+	(2) the amount of the swipe fee charged to the
	93	+	cardholder on a credit card transaction.
104	94		SUBCHAPTER C. PAYMENT CARD NETWORKS
105	95		Sec. 604B.101. PROHIBITED PRACTICES BY PAYMENT CARD
106		-	NETWORK. A payment card network may not directly or indirectly
107		-	through an agent, processor, contract, requirement, condition,
108		-	penalty, inducement, technological specification, or otherwise:
	96	+	NETWORK. A payment card network may not:
109	97		(1) fix or conspire to fix a swipe fee with, or on
110		-	behalf of, another payment card network or a credit card issuer;
111		-	(2) fix, establish, or recommend a fee schedule that
112		-	the payment card network knows, or reasonably should know, has been
113		-	used by one or more credit card issuers, other than the payment card
114		-	network if the network is also a credit card issuer, to determine
115		-	the amount of any interchange fee that the other credit card issuer
116		-	or issuers, as applicable, received or charged in the current or
117		-	previous calendar year;
118		-	(3) charge a cardholder or a merchant a fee for a
	98	+	behalf of, another credit card issuer or payment card network;
	99	+	(2) require a merchant to accept as payment any credit
	100	+	card issued by the credit card issuer;
	101	+	(3) charge a cardholder or a merchant a fee due to a
119	102		disputed credit card transaction unless:
120	103		(A) a finding of fact concludes that the
121	104		cardholder or merchant is responsible for the disputed credit card
122	105		transaction; and
123	106		(B) the cardholder or merchant is provided
124		-	written notification of the finding of fact;
	107	+	written notification of the finding of fact; or
125	108		(4) prohibit or penalize a merchant that offers a
126	109		cardholder a discount for using cash, a debit card, or a gift card
127		-	instead of a credit card for payment;
128		-	(5) require a merchant to accept as payment any credit
129		-	card issued by a credit card issuer, including requiring a merchant
130		-	to accept one credit card as a condition for accepting as payment
131		-	other credit cards that are enabled for processing over the payment
132		-	card network; or
133		-	(6) charge a merchant a swipe fee or other fee on a
134		-	credit card transaction without disclosing, in a clear and
135		-	conspicuous manner not later than the 45th day after the date of the
136		-	credit card transaction, to the merchant or another person who
137		-	assists the merchant in processing credit card transactions and who
138		-	has been designated by the merchant to receive the disclosure, the
139		-	rate and total amount of each swipe fee or other fee charged on each
140		-	credit card transaction.
	110	+	instead of a credit card for payment.
	111	+	Sec. 604B.102. DISCLOSURE BY PAYMENT CARD NETWORKS OF FEES
	112	+	CHARGED TO MERCHANTS. A payment card network shall, not later than
	113	+	the 45th day after the date of the credit card transaction, disclose
	114	+	in a clear and conspicuous manner to the merchant or another person
	115	+	who assists the merchant in processing credit card transactions and
	116	+	who has been designated by the merchant to receive the disclosures,
	117	+	the rate and total amount of each swipe fee or other fee charged on
	118	+	each credit card transaction.
141	119		SUBCHAPTER D. ENFORCEMENT
142	120		Sec. 604B.151. INVESTIGATION BY ATTORNEY GENERAL. If the
143	121		attorney general is made aware or independently learns of a
144	122		violation of this chapter, the attorney general may investigate the
145	123		alleged violation to the same extent and in the same manner as an
146	124		alleged antitrust violation under Chapter 15.
147		-	Sec. 604B.152. CIVIL SUITS FOR VIOLATIONS. The attorney
148		-	general may file suit in district court in Travis County or in any
149		-	county in the State of Texas in which any of the named defendants
150		-	resides, does business, or maintains its principal office on behalf
151		-	of the State of Texas to collect a civil fine from any person who the
152		-	attorney general believes has violated this chapter. An individual
153		-	or other person adjudged to have violated this chapter shall pay a
154		-	fine to the state in an amount not to exceed:
	125	+	Sec. 604B.152. CIVIL SUITS FOR ANTICOMPETITIVE VIOLATIONS.
	126	+	The attorney general may file suit in district court in Travis
	127	+	County or in any county in the State of Texas in which any of the
	128	+	named defendants resides, does business, or maintains its principal
	129	+	office on behalf of the State of Texas to collect a civil fine from
	130	+	any person whom the attorney general believes has violated any of
	131	+	the prohibitions in Section 604B.052(1) or (2) or Section
	132	+	604B.101(1) or (2). An individual or other person adjudged to have
	133	+	violated any of these prohibitions shall pay a fine to the state in
	134	+	an amount not to exceed:
155	135		(1) if an individual, $300,000; or
156	136		(2) if any other person:
157	137		(A) $3 million, if the lesser of the person's
158	138		assets or market capitalization is less than $100 million;
159	139		(B) $20 million, if the lesser of the person's
160	140		assets or market capitalization is at least $100 million but less
161	141		than $500 million; or
162	142		(C) $30 million, if the lesser of the person's
163	143		assets or market capitalization is $500 million or more.
164	144		Sec. 604B.153. INJUNCTIVE RELIEF. The attorney general may
165	145		file suit against any person in district court in Travis County or
166	146		in any county in the State of Texas in which any of the named
167	147		defendants resides, does business, or maintains its principal
168	148		office on behalf of the State of Texas to enjoin temporarily or
169	149		permanently any activity or contemplated activity that violates or
170	150		threatens to violate any of the prohibitions in this chapter. In
171	151		any such suit, the court shall apply the same principles as those
172	152		generally applied by courts of equity in suits for injunctive
173	153		relief against threatened conduct that would cause injury to
174	154		business or property. In any such suit in which the state
175	155		substantially prevails on the merits, the state shall be entitled
176	156		to recover the cost of suit.
177	157		Sec. 604B.154. TRANSFER OF SUIT. No suit filed under this
178	158		subchapter may be transferred to another county except on order of
179	159		the court.
180	160		Sec. 604B.155. AUTHORITY OF ATTORNEY GENERAL NOT LIMITED.
181	161		Nothing in this subchapter shall be construed to limit the
182	162		constitutional or common law authority of the attorney general to
183	163		bring actions under state and federal law.
184	164		Sec. 604B.156. MUTUALLY EXCLUSIVE REMEDIES. Remedies
185		-	available under Sections 604B.152 and 15.20(a) ~~for a violation~~
186		-	~~arising out of the same conduct are mutually~~ exclusive.
	165	+	available under Sections 604B.152 and 15.20(a) are mutually
	166	+	exclusive.
187	167		Sec. 604B.157. NO PRIVATE CAUSE OF ACTION. This chapter
188	168		does not create a private cause of action.
189		-	SECTION 2. If any provision of this Act or its application
190		-	to any person or circumstance is held invalid, the invalidity does
191		-	not affect other provisions or applications of this Act that can be
192		-	given effect without the invalid provision or application, and the
193		-	invalidity applies only to that person or circumstance. To this end
194		-	the provisions of this Act are declared severable.
195		-	SECTION 3. Notwithstanding Section 604B.052, Business &
	169	+	SECTION 2. To the extent of a conflict between Section
	170	+	604B.052(3) or (4) or Section 604B.101(3) or (4), Business &
	171	+	Commerce Code, as added by this Act, and a provision of a contract
	172	+	entered into before the effective date of this Act, the contract
	173	+	provision prevails.
	174	+	SECTION 3. Notwithstanding Section 604B.053, Business &
196	175		Commerce Code, as added by this Act, a credit card issuer is not
197	176		required to comply with that section until March 1, 2026.
198	177		SECTION 4. This Act takes effect September 1, 2025.
199		-	* * * * *