Bill Text: TX SB560 | 2017-2018 | 85th Legislature | Enrolled
Bill Title: Relating to surcharges imposed for the use of a credit card; providing a civil penalty.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2017-05-27 - Effective on 9/1/17 [SB560 Detail]
Download: Texas-2017-SB560-Enrolled.html
S.B. No. 560 |
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relating to surcharges imposed for the use of a credit card; | ||
providing a civil penalty. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 604A.001, Business & Commerce Code, is | ||
amended by adding Subdivision (1-a) and amending Subdivision (5) to | ||
read as follows: | ||
(1-a) "Credit card" has the meaning assigned by | ||
Section 502.001. | ||
(5) "Surcharge" means an increase in the price charged | ||
for goods or services imposed on a buyer who pays with a credit, | ||
debit, or stored value card that is not imposed on a buyer who pays | ||
by other means. The term does not include a discounted price | ||
charged for goods or services to a buyer who pays with cash. | ||
SECTION 2. Sections 604A.003(a), (b), and (b-1), Business & | ||
Commerce Code, are amended to read as follows: | ||
(a) A person who knowingly violates Section 604A.002 or | ||
604A.0021 is liable to the state for a civil penalty in an amount | ||
not to exceed $500 for each violation. The attorney general or the | ||
prosecuting attorney in the county in which the violation occurs | ||
may bring: | ||
(1) a suit to recover the civil penalty imposed under | ||
this section; and | ||
(2) an action in the name of the state to restrain or | ||
enjoin a person from violating this chapter. | ||
(b) Before bringing the action, the attorney general or | ||
prosecuting attorney shall give the person notice of the person's | ||
noncompliance and liability for a civil penalty. The notice must: | ||
(1) contain guidance to assist the person in complying | ||
with this chapter; | ||
(2) advise the person of the prohibitions | ||
[ |
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(3) state that the person may be liable for a civil | ||
penalty for a subsequent violation of Section 604A.002 or | ||
604A.0021. | ||
(b-1) If the person complies with Sections [ |
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604A.002 and 604A.0021 not later than the 30th day after the date of | ||
the notice under Subsection (b), the violation is cured and the | ||
person is not liable for the civil penalty. A person who has | ||
previously received notice of noncompliance under Subsection (b) is | ||
not entitled to notice of or the opportunity to cure a subsequent | ||
violation of Section 604A.002 or 604A.0021. | ||
SECTION 3. Section 14.101, Finance Code, is amended to read | ||
as follows: | ||
Sec. 14.101. GENERAL DUTIES OF COMMISSIONER. The | ||
commissioner shall enforce [ |
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Subtitles B and C of Title 4, Chapter 393 with respect to a credit | ||
access business, and Chapter 394 in person or through an assistant | ||
commissioner, examiner, or other employee of the office. | ||
SECTION 4. Section 14.201, Finance Code, is amended to read | ||
as follows: | ||
Sec. 14.201. INVESTIGATION AND ENFORCEMENT AUTHORITY. | ||
Investigative and enforcement authority under this subchapter | ||
applies only to [ |
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of Title 4, Chapter 393 with respect to a credit access business, | ||
and Chapter 394. | ||
SECTION 5. Section 14.2015(a), Finance Code, is amended to | ||
read as follows: | ||
(a) Except as provided by Subsection (b), information or | ||
material obtained or compiled by the commissioner in relation to an | ||
examination or investigation by the commissioner or the | ||
commissioner's representative of a license holder, registrant, | ||
applicant, or other person under [ |
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C, Title 4, Subchapter G of Chapter 393, or Chapter 394 is | ||
confidential and may not be disclosed by the commissioner or an | ||
officer or employee of the Office of Consumer Credit Commissioner, | ||
including: | ||
(1) information obtained from a license holder, | ||
registrant, applicant, or other person examined or investigated | ||
under [ |
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Chapter 393, or Chapter 394; | ||
(2) work performed by the commissioner or the | ||
commissioner's representative on information obtained from a | ||
license holder, registrant, applicant, or other person for the | ||
purposes of an examination or investigation conducted under | ||
[ |
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respect to a credit access business, or Chapter 394; | ||
(3) a report on an examination or investigation of a | ||
license holder, registrant, applicant, or other person conducted | ||
under [ |
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respect to a credit access business, or Chapter 394; and | ||
(4) any written communications between the license | ||
holder, registrant, applicant, or other person, as applicable, and | ||
the commissioner or the commissioner's representative relating to | ||
or referencing an examination or investigation conducted under | ||
[ |
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respect to a credit access business, or Chapter 394. | ||
SECTION 6. Section 14.251(b), Finance Code, is amended to | ||
read as follows: | ||
(b) The commissioner may order a person who violates or | ||
causes a violation of [ |
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or Subtitle B, Title 4, or a rule adopted under [ |
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this chapter, Chapter 394, or Subtitle B, Title 4, or a credit | ||
access business who violates or causes a violation of Chapter 393 or | ||
a rule adopted under Chapter 393, to make restitution to an | ||
identifiable person injured by the violation. | ||
SECTION 7. Section 14.261(a), Finance Code, is amended to | ||
read as follows: | ||
(a) In administering this chapter, the commissioner may | ||
accept assurance of voluntary compliance from a person who is | ||
engaging in or has engaged in an act or practice in violation of: | ||
(1) [ |
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[ |
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chapter; | ||
(2) [ |
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access business, or Chapter 394; or | ||
(3) [ |
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Subtitle B, Title 4. | ||
SECTION 8. Section 14.262, Finance Code, is amended to read | ||
as follows: | ||
Sec. 14.262. EFFECT OF ASSURANCE. (a) An assurance of | ||
voluntary compliance is not an admission of a violation of: | ||
(1) [ |
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[ |
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chapter; | ||
(2) [ |
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business or Chapter 394; or | ||
(3) [ |
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Subtitle B, Title 4. | ||
(b) Unless an assurance of voluntary compliance is | ||
rescinded by agreement or voided by a court for good cause, a | ||
subsequent failure to comply with the assurance is prima facie | ||
evidence of a violation of: | ||
(1) [ |
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[ |
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chapter; | ||
(2) [ |
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business or Chapter 394; or | ||
(3) [ |
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Subtitle B, Title 4. | ||
SECTION 9. Section 339.001, Finance Code, is transferred to | ||
Chapter 604A, Business & Commerce Code, redesignated as Section | ||
604A.0021, Business & Commerce Code, and amended to read as | ||
follows: | ||
Sec. 604A.0021 [ |
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OF CREDIT CARD. (a) In a sale of goods or services, a seller may | ||
not impose a surcharge on a buyer who uses a credit card for an | ||
extension of credit instead of cash, a check, or a similar means of | ||
payment. | ||
(b) This section does not apply to: | ||
(1) a state agency, county, local governmental entity, | ||
or other governmental entity that accepts a credit card for the | ||
payment of fees, taxes, or other charges; or | ||
(2) a private school that accepts a credit card for the | ||
payment of fees or other charges, as provided by Section 111.002[ |
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(c) [ |
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[ |
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[ |
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an individual for violation of this section. | ||
SECTION 10. This Act takes effect September 1, 2017. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 560 passed the Senate on | ||
April 19, 2017, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 560 passed the House on | ||
May 19, 2017, by the following vote: Yeas 144, Nays 0, two | ||
present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |