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A BILL TO BE ENTITLED
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AN ACT
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relating to a limitation on certain fees a credit card issuer may |
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charge a merchant for processing a credit card sale; authorizing a |
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civil penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 12, Business & Commerce Code, is amended by |
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adding Chapter 604B to read as follows: |
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CHAPTER 604B. LIMITATION ON CERTAIN FEES |
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Sec. 604B.001. DEFINITIONS. In this chapter: |
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(1) "Credit card" has the meaning assigned by Section |
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502.001. |
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(2) "Merchant" has the meaning assigned by Section |
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604A.001. |
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Sec. 604B.002. LIMITATION ON CERTAIN FEES BY CREDIT CARD |
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ISSUER. A person who issues a credit card may not impose a fee on a |
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merchant for the amount of a credit card sale derived from a tax |
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imposed under Chapter 151, Tax Code, in excess of 1.75 percent of |
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that amount. |
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Sec. 604B.003. CIVIL PENALTY. (a) A person who violates |
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this chapter is liable to the state for a civil penalty in an amount |
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equal to five percent of the portion of each violative credit card |
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sale derived from a tax imposed under Chapter 151, Tax Code. The |
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attorney general or the prosecuting attorney in the county in which |
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the violation occurs may bring: |
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(1) a suit to recover the civil penalty imposed under |
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this section; and |
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(2) an action in the name of the state to restrain or |
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enjoin a person from violating this chapter. |
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(b) Before bringing the action, the attorney general or |
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prosecuting attorney shall give the person notice of the person's |
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noncompliance and liability for a civil penalty. The notice must: |
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(1) contain guidance to assist the person in complying |
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with this chapter; |
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(2) advise the person of the limitation under this |
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chapter; and |
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(3) state that the person may be liable for a civil |
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penalty for a subsequent violation of this chapter. |
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(c) The attorney general or the prosecuting attorney, as |
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appropriate, is entitled to recover reasonable expenses incurred in |
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obtaining injunctive relief, civil penalties, or both, under this |
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section, including reasonable attorney's fees, court costs, and |
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investigatory costs. |
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SECTION 2. Chapter 604B, Business & Commerce Code, as added |
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by this Act, applies only to a sale that is covered by an agreement |
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between a person who issues a credit card and a merchant entered |
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into, amended, or renewed on or after the effective date of this |
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Act. |
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SECTION 3. This Act takes effect September 1, 2023. |