Bill Text: TX HB876 | 2021-2022 | 87th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to fees charged by certain persons for the method used for payments made under an agreement.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2021-06-04 - Effective on 9/1/21 [HB876 Detail]
Download: Texas-2021-HB876-Comm_Sub.html
Bill Title: Relating to fees charged by certain persons for the method used for payments made under an agreement.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2021-06-04 - Effective on 9/1/21 [HB876 Detail]
Download: Texas-2021-HB876-Comm_Sub.html
By: Craddick (Senate Sponsor - Perry) | H.B. No. 876 | |
(In the Senate - Received from the House April 12, 2021; | ||
April 13, 2021, read first time and referred to Committee on | ||
Business & Commerce; May 10, 2021, reported favorably by the | ||
following vote: Yeas 7, Nays 0; May 10, 2021, sent to printer.) | ||
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relating to fees charged by certain persons for the method used for | ||
payments made under an agreement. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is | ||
amended by adding Chapter 116 to read as follows: | ||
CHAPTER 116. FEES FOR CERTAIN PAYMENT METHODS | ||
Sec. 116.0001. DEFINITIONS. In this chapter: | ||
(1) "Payee" means an individual who resides in this | ||
state or a corporation, trust, partnership, association, or other | ||
private legal entity authorized to do business in this state that | ||
receives money as payment under an agreement. | ||
(2) "Person" means an individual, corporation, trust, | ||
partnership, association, or other private legal entity. | ||
Sec. 116.0002. FEE FOR CERTAIN PAYMENTS BY PAPER CHECK | ||
PROHIBITED. (a) A person that makes a payment to a payee may not | ||
charge an additional fee to the payee because the payee elects to | ||
receive the payment by paper check instead of by an automated | ||
clearinghouse transaction or other electronic funds transfer. | ||
(b) A provision in a contract permitting a person to charge | ||
or collect a fee from a payee in violation of Subsection (a) is void | ||
and unenforceable. | ||
SECTION 2. To the extent of a conflict between Section | ||
116.0002(a), Business & Commerce Code, as added by this Act, and a | ||
provision of a contract entered into before the effective date of | ||
this Act, the provision of the contract prevails. | ||
SECTION 3. This Act takes effect September 1, 2021. | ||
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