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.