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.