By Cain                                                S.B. No. 661
       74R5644 LJR-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to transaction fees for the use of an electronic terminal
    1-3  connected to a shared electronic network.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Chapter IX, The Texas Banking Code (Article
    1-6  342-901 et seq., Vernon's Texas Civil Statutes), is amended by
    1-7  adding Article 3d to read as follows:
    1-8        Art. 3d.  TRANSACTION FEES FOR SHARED ELECTRONIC TERMINALS
    1-9        Sec. 1.  In this article:
   1-10              (1)  "Electronic terminal" means an electronic device,
   1-11  other than a telephone, through which a consumer may initiate an
   1-12  electronic fund transfer.  The term includes a point-of-sale
   1-13  terminal, an unmanned teller machine, and a cash dispensing
   1-14  machine.
   1-15              (2)  "Electronic fund transfer" means any transfer of
   1-16  funds, other than a transaction originated by check, draft, or
   1-17  similar paper instrument, that is initiated through an electronic
   1-18  terminal and orders, instructs, or authorizes a financial
   1-19  institution to debit or credit an account.  The term includes a
   1-20  point-of-sale transfer, unmanned teller machine transaction, and
   1-21  cash dispensing machine transaction.
   1-22              (3)  "Financial institution" means a state, national,
   1-23  or private bank, savings bank, state or federal savings and loan
   1-24  association, thrift company, or credit union.
    2-1              (4)  "Shared network" means an electronic information
    2-2  communication and processing facility used by two or more different
    2-3  owners of electronic terminals to receive, transmit, or retransmit
    2-4  electronic impulses or other electronic indicia of transactions,
    2-5  originating at electronic terminals, to financial institutions or
    2-6  to other transmission facilities for the purpose of:
    2-7                    (A)  the withdrawal by a customer of money from
    2-8  the customer's account, including a withdrawal pursuant to a line
    2-9  of credit previously authorized by a financial institution for the
   2-10  customer;
   2-11                    (B)  the deposit of funds by a customer in the
   2-12  customer's account with a financial institution;
   2-13                    (C)  the transfer of funds by a customer between
   2-14  one or more accounts maintained by the customer with a financial
   2-15  institution, including the application of funds against an
   2-16  indebtedness of the customer to the financial institution; or
   2-17                    (D)  a request for information by a customer
   2-18  concerning the balance of the account of the customer with a
   2-19  financial institution.
   2-20        Sec. 2.  (a)  The owner of an electronic terminal that is
   2-21  located in this state and that is connected to a shared network may
   2-22  impose a fee for the use of that terminal if imposition of the fee
   2-23  is disclosed at a time and in a manner that allows a user to
   2-24  terminate or cancel the transaction without incurring the
   2-25  transaction fee.
   2-26        (b)  An agreement to share electronic terminals may not:
   2-27              (1)  prohibit, limit, or restrict the right of the
    3-1  owner of an electronic terminal to charge a fee described by
    3-2  Subsection (a) for the use of its electronic terminal as allowed by
    3-3  the laws of this state or of the United States;
    3-4              (2)  require the owner to limit or waive its rights or
    3-5  obligations under this article; or
    3-6              (3)  otherwise discriminate in any manner against the
    3-7  owner as a result of the owner's charging of a fee authorized under
    3-8  this article.
    3-9        SECTION 2.  This Act takes effect September 1, 1995.
   3-10        SECTION 3.  The importance of this legislation and the
   3-11  crowded condition of the calendars in both houses create an
   3-12  emergency and an imperative public necessity that the
   3-13  constitutional rule requiring bills to be read on three several
   3-14  days in each house be suspended, and this rule is hereby suspended.