Bill Text: TX HB721 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to photo identification requirements for certain stored value card transactions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-02-20 - Referred to Investments & Financial Services [HB721 Detail]
Download: Texas-2017-HB721-Introduced.html
| 85R4164 CLG-F | ||
| By: Longoria | H.B. No. 721 | |
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| relating to photo identification requirements for certain stored | ||
| value card transactions. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 604, Business & Commerce Code, is | ||
| amended by adding Subchapter E to read as follows: | ||
| SUBCHAPTER E. REQUIRING VERIFICATION OF IDENTITY FOR CERTAIN | ||
| STORED VALUE CARD TRANSACTIONS | ||
| Sec. 604.201. DEFINITIONS. In this subchapter: | ||
| (1) "Cardholder" means the person named on the face of | ||
| a credit card or debit card to whom or for whose benefit the credit | ||
| card or debit card is issued. | ||
| (2) "Credit card" means a card or device issued under | ||
| an agreement by which the issuer gives to a cardholder the right to | ||
| obtain credit from the issuer or another person. | ||
| (3) "Debit card" means a card, device, or other means | ||
| of access to an individual's account at a financial institution | ||
| that the individual may use to initiate electronic fund transfers. | ||
| (4) "Merchant" means a person in the business of | ||
| selling or leasing goods or services. | ||
| (5) "Photo identification" means a card or other | ||
| document that: | ||
| (A) is issued by a governmental entity to | ||
| identify an individual; and | ||
| (B) displays a photograph of the individual | ||
| identified on the card or other document. | ||
| Sec. 604.202. APPLICABILITY OF SUBCHAPTER. (a) This | ||
| subchapter does not apply to a merchant who sells or leases goods or | ||
| services at not more than 50 retail locations in this state. | ||
| (b) Notwithstanding Section 604.002, this subchapter | ||
| applies to any point of sale transaction in which an individual | ||
| seeks to pay a merchant for the purchase of or to add value to any | ||
| stored value card. | ||
| Sec. 604.203. REQUIRING PHOTO IDENTIFICATION FOR CREDIT OR | ||
| DEBIT CARD TRANSACTION. (a) A merchant may not accept a credit card | ||
| or debit card for payment in a point of sale transaction for the | ||
| purchase of or to add value to a stored value card unless the | ||
| merchant requires the individual using the credit card or debit | ||
| card to provide photo identification verifying the individual's | ||
| identity as the cardholder. | ||
| (b) Subsection (a) does not apply if the merchant requires: | ||
| (1) the individual presenting the credit card for | ||
| payment to provide the individual's zip code to verify the | ||
| individual's identity as authorized by Section 505.002; or | ||
| (2) the individual using the credit card or debit card | ||
| to electronically enter the personal identification number (PIN) or | ||
| other unique identifier serving as an electronic password | ||
| associated with the card. | ||
| Sec. 604.204. LIABILITY FOR FAILURE TO OBTAIN | ||
| IDENTIFICATION. A merchant who violates Section 604.203 in | ||
| connection with a transaction described by that section that is not | ||
| authorized by the cardholder is liable to the cardholder or the | ||
| financial institution or other issuer that issued the credit card | ||
| or debit card for all losses attributable to the violation. | ||
| SECTION 2. This Act takes effect September 1, 2018. | ||
