1-1     By:  Sibley                                            S.B. No. 991
 1-2           (In the Senate - Filed February 28, 2001; March 1, 2001, read
 1-3     first time and referred to Committee on Business and Commerce;
 1-4     March 8, 2001, reported favorably by the following vote:  Yeas 6,
 1-5     Nays 0; March 8, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the imposition of a user fee for a shared electronic
 1-9     terminal.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Section 59.202, Finance Code, is amended to read
1-12     as follows:
1-13           Sec. 59.202.  USER FEE FOR SHARED ELECTRONIC TERMINAL.
1-14     (a)  Subject to Subsection (b), the [The] owner of an electronic
1-15     terminal that is located in this state and that is connected to a
1-16     shared network may impose a fee for the use of that terminal if
1-17     imposition of the fee is disclosed at a time and in a manner that
1-18     allows a user to avoid the transaction without incurring the
1-19     transaction fee.
1-20           (b)  An automated teller machine operator who is required to
1-21     provide notice under the Electronic Fund Transfer Act (15 U.S.C.
1-22     Section 1693 et seq.), as amended, for providing services in
1-23     connection with an electronic fund transfer initiated by a certain
1-24     user at the machine may not impose a fee for the use of that
1-25     machine unless the operator complies with the disclosure and other
1-26     requirements of that Act and regulations adopted under that Act.
1-27           (c)  An agreement to share an electronic terminal may not:
1-28                 (1)  limit the right of the owner of an electronic
1-29     terminal to charge a fee described by Subsection (a) as allowed by
1-30     the law of this state or the United States;
1-31                 (2)  require the owner to limit or waive its rights or
1-32     obligations under this section; or
1-33                 (3)  otherwise discriminate in any manner against the
1-34     owner as a result of the owner's charging of a fee authorized under
1-35     this section.
1-36           (d) [(c)]  In this section:
1-37                 (1)  "Automated teller machine operator" and
1-38     "electronic fund transfer" have the meanings assigned by 15 U.S.C.
1-39     Section 1693b(d)(3).
1-40                 (2)  "Electronic [fund] transfer of money" means any
1-41     transfer of money, other than a transaction originated by check,
1-42     draft, or similar paper instrument, that is initiated through an
1-43     electronic terminal and orders, instructs, or authorizes a
1-44     financial institution to debit or credit an account.  The term
1-45     includes a point-of-sale transfer, an unmanned teller machine
1-46     transaction, and a cash dispensing machine transaction.
1-47                 (3) [(2)]  "Electronic terminal" means an electronic
1-48     device, other than a telephone, through which a consumer may
1-49     initiate an electronic [fund] transfer of money.  The term includes
1-50     a point-of-sale terminal, an unmanned teller machine, and a cash
1-51     dispensing machine.
1-52                 (4) [(3)]  "Financial institution" has the meaning
1-53     assigned by Section 201.101.
1-54                 (5) [(4)]  "Shared network" means an electronic
1-55     information communication and processing facility used by two or
1-56     more owners of electronic terminals to receive, transmit, or
1-57     retransmit electronic impulses or other electronic indicia of
1-58     transactions, originating at electronic terminals, to financial
1-59     institutions or to other transmission facilities for the purpose
1-60     of:
1-61                       (A)  the withdrawal by a customer of money from
1-62     the customer's account, including a withdrawal under a line of
1-63     credit previously authorized by a financial institution for the
1-64     customer;
 2-1                       (B)  the deposit of money by a customer in the
 2-2     customer's account with a financial institution;
 2-3                       (C)  the transfer of money by a customer between
 2-4     one or more accounts maintained by the customer with a financial
 2-5     institution, including the application of money against an
 2-6     indebtedness of the customer to the financial institution; or
 2-7                       (D)  a request for information by a customer
 2-8     concerning the balance of the customer's account with a financial
 2-9     institution.
2-10           SECTION 2.  This Act takes effect September 1, 2001, and
2-11     applies only to a transaction that is initiated on or after that
2-12     date.
2-13                                  * * * * *