By Sibley                                              S.B. No. 991
         77R2548 CLG-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the imposition of a user fee for a shared electronic
 1-3     terminal.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 59.202, Finance Code, is amended to read
 1-6     as follows:
 1-7           Sec. 59.202.  USER FEE FOR SHARED ELECTRONIC TERMINAL. (a)
 1-8     Subject to Subsection (b), the [The] owner of an electronic
 1-9     terminal that is located in this state and that is connected to a
1-10     shared network may impose a fee for the use of that terminal if
1-11     imposition of the fee is disclosed at a time and in a manner that
1-12     allows a user to avoid the transaction without incurring the
1-13     transaction fee.
1-14           (b)  An automatic teller machine operator who is required to
1-15     provide notice under the Electronic Fund Transfer Act (15 U.S.C.
1-16     Section 1693 et seq.), as amended, for providing services in
1-17     connection with an electronic fund transfer initiated by a certain
1-18     user at the machine may not impose a fee for the use of that
1-19     machine unless the operator complies with the disclosure and other
1-20     requirements of that Act and regulations adopted under that Act.
1-21           (c)  An agreement to share an electronic terminal may not:
1-22                 (1)  limit the right of the owner of an electronic
1-23     terminal to charge a fee described by Subsection (a) as allowed by
1-24     the law of this state or the United States;
 2-1                 (2)  require the owner to limit or waive its rights or
 2-2     obligations under this section; or
 2-3                 (3)  otherwise discriminate in any manner against the
 2-4     owner as a result of the owner's charging of a fee authorized under
 2-5     this section.
 2-6           (d) [(c)]  In this section:
 2-7                 (1)  "Automated teller machine operator" and
 2-8     "electronic fund transfer" have the meanings assigned by 15 U.S.C.
 2-9     Section 1693b(d)(3).
2-10                 (2)  "Electronic [fund] transfer of money" means any
2-11     transfer of money, other than a transaction originated by check,
2-12     draft, or similar paper instrument, that is initiated through an
2-13     electronic terminal and orders, instructs, or authorizes a
2-14     financial institution to debit or credit an account.  The term
2-15     includes a point-of-sale transfer, an unmanned teller machine
2-16     transaction, and a cash dispensing machine transaction.
2-17                 (3) [(2)]  "Electronic terminal" means an electronic
2-18     device, other than a telephone, through which a consumer may
2-19     initiate an electronic [fund] transfer of money.  The term includes
2-20     a point-of-sale terminal, an unmanned teller machine, and a cash
2-21     dispensing machine.
2-22                 (4) [(3)]  "Financial institution" has the meaning
2-23     assigned by Section 201.101.
2-24                 (5) [(4)]  "Shared network" means an electronic
2-25     information communication and processing facility used by two or
2-26     more owners of electronic terminals to receive, transmit, or
2-27     retransmit electronic impulses or other electronic indicia of
 3-1     transactions, originating at electronic terminals, to financial
 3-2     institutions or to other transmission facilities for the purpose
 3-3     of:
 3-4                       (A)  the withdrawal by a customer of money from
 3-5     the customer's account, including a withdrawal under a line of
 3-6     credit previously authorized by a financial institution for the
 3-7     customer;
 3-8                       (B)  the deposit of money by a customer in the
 3-9     customer's account with a financial institution;
3-10                       (C)  the transfer of money by a customer between
3-11     one or more accounts maintained by the customer with a financial
3-12     institution, including the application of money against an
3-13     indebtedness of the customer to the financial institution; or
3-14                       (D)  a request for information by a customer
3-15     concerning the balance of the customer's account with a financial
3-16     institution.
3-17           SECTION 2.  This Act takes effect September 1, 2001, and
3-18     applies only to a transaction that is initiated on or after that
3-19     date.