By Carona H.B. No. 1299 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to transaction fees for shared electronic terminals. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Title 16, Chapter IX, The Texas Banking Code 1-5 (Article 342-101, et seq.. Vernon's Texas Civil Statutes) is 1-6 amended by adding Article 342-903d to read as follows: 1-7 Art. 342-903d. Transaction Fees for Shared Electronic 1-8 Terminals 1-9 Sec. 1. In this article: 1-10 (a) "Electronic terminal" means an electronic device, 1-11 other than a telephone, through which a consumer may initiate an 1-12 electronic fund transfer. Such term includes, but is not limited 1-13 to, point-of-sale terminals, unmanned teller machines, and cash 1-14 dispensing machines. 1-15 (b) "Electronic fund transfer" means any transfer of 1-16 funds, other than a transaction originated by check, draft, or 1-17 similar paper instrument, which is initiated through an electronic 1-18 terminal in order to order, instruct, or authorize a financial 1-19 institution to debit or credit an account. Such term includes, but 1-20 is not limited to, point-of-sale transfers, unmanned teller machine 1-21 transactions, and cash dispensing machine transactions. 1-22 (c) "Financial institution" means any state, national, 1-23 or private bank, savings bank, savings and loan association, thrift 2-1 company, or credit union. 2-2 (d) "Owner of an electronic terminal" means any 2-3 corporation, financial institution, or other business that owns an 2-4 electronic terminal located in this State. 2-5 (e) "Shared network or system" means an electronic 2-6 information communication and processing facility used by two or 2-7 more different owners of electronic terminals to receive, transmit, 2-8 or retransmit electronic impulses or other electronic indicia of 2-9 transactions, originating at electronic terminals, to financial 2-10 institutions or to other transmission facilities for purposes of: 2-11 (1) the withdrawal by a customer of money 2-12 directly from the customer's account or from the customer's account 2-13 pursuant to a line of credit previously authorized by the financial 2-14 institution for the customer; 2-15 (2) the deposit of funds by a customer in the 2-16 customer's account with the financial institution; 2-17 (3) the transfer of funds by a customer between 2-18 one or more accounts maintained by the customer with the financial 2-19 institution, including the application of funds against an 2-20 indebtedness of the customer to the financial institution; and 2-21 (4) the request for information by a customer 2-22 concerning the balance of the account of the customer with the 2-23 financial institution. 2-24 Sec. 2. The owner of an electronic terminal may impose a fee 2-25 for the use of any such terminal located in this State which is 3-1 connected to shared networks or systems if imposition of the fee is 3-2 disclosed at a time and in a manner that allows a user to terminate 3-3 or cancel the transaction without incurring the transaction fee. 3-4 An agreement to share electronic terminals shall not prohibit, 3-5 limit, or restrict the right of the owner of an electronic terminal 3-6 to charge such fee for the use of its electronic terminal as 3-7 allowed by the laws of this State or of the United States, require 3-8 such owner to limit or waive its rights or obligations under this 3-9 article, or otherwise discriminate in any manner against such owner 3-10 as a result of such owner's charging of fees authorized under this 3-11 article. 3-12 SECTION 2. This act takes effect September 1, 1995. 3-13 SECTION 3. The importance of this legislation and the 3-14 crowded condition of the calendars in both houses create an 3-15 emergency and an imperative public necessity that the 3-16 constitutional rule requiring bills to be read on three several 3-17 days in each house be suspended, and this rule is hereby suspended.