Bill Text: TX HB3392 | 2011-2012 | 82nd Legislature | Introduced

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Bill Title: Relating to disclosures and termination fees by certain businesses providing credit card processing services.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2011-03-18 - Referred to Pensions, Investments & Financial Services [HB3392 Detail]

Download: Texas-2011-HB3392-Introduced.html

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82R11783 DAK-F
By: Miller of Comal H.B. No. 3392

A BILL TO BE ENTITLED
AN ACT
relating to disclosures and termination fees by certain businesses
providing credit card processing services.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 17, Business & Commerce Code, is amended
by adding Subchapter L to read as follows:
SUBCHAPTER L. DISCLOSURES AND TERMINATION FEES BY BUSINESSES
PROVIDING CREDIT CARD PROCESSING SERVICES
Sec. 17.931. REQUIRED DISCLOSURE. (a) Except as provided
by Subsection (c), a person that offers a credit card processing
service in this state shall disclose on any contract to provide the
service:
(1) the effective date of the contract;
(2) the term of the contract;
(3) the amount of any monthly minimum fee or charge for
the service; and
(4) the amount of any fee for terminating the
contract.
(b) The disclosures required by Subsection (a) and any other
terms and conditions relating to the use of the credit card
processing service must be printed in a font size that is at least
eight-point.
(c) This section does not apply to a bank, savings bank,
savings and loan association, or credit union organized under the
laws of this state or the United States that offers a credit card
processing service.
Sec. 17.932. TERMINATION CHARGES. (a) A person that offers
a credit card processing service in this state may not charge:
(1) a fee of $50 or more for terminating a contract for
the service; or
(2) a monthly minimum fee for more than one month after
the date that the service contract is terminated.
(b) For purposes of Subsection (a), an equipment rental or
lease purchase payment is not a fee.
Sec. 17.933. DECEPTIVE TRADE PRACTICE. (a) A person who
violates this subchapter commits a deceptive trade practice under
Subchapter E subject to the remedies provided under that
subchapter.
(b) This section does not limit any right or remedy that may
be available under any other law to a person who has entered into a
contract with a person providing credit card processing services.
SECTION 2. Subchapter L, Chapter 17, Business & Commerce
Code, as added by this Act, applies only to a contract entered into
on or after the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2011.