By: Keffer of Eastland (Senate Sponsor - Averitt) H.B. No. 1935
(In the Senate - Received from the House April 25, 2005;
April 26, 2005, read first time and referred to Committee on
Natural Resources; May 4, 2005, reported favorably by the
following vote: Yeas 9, Nays 0; May 4, 2005, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the acceptance of credit cards by a water district for
the payment of fees and charges imposed by the district.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter H, Chapter 49, Water Code, is amended
by adding Section 49.2121 to read as follows:
Sec. 49.2121. ACCEPTANCE OF CREDIT CARDS. (a) In this
section, "credit card" means a card, plate, or similar device
authorizing a designated person or bearer to obtain goods,
services, money, or any other thing of value on credit.
(b) A district may:
(1) accept a credit card for the payment of any fees
and charges imposed by the district;
(2) collect a fee, not to exceed five percent of the
amount of the fee or charge being paid, that is reasonably related
to the expense incurred by the district in processing the payment by
credit card; and
(3) collect a service charge for the expense incurred
by the district in collecting the original fee or charge if the
payment by credit card is not honored by the credit card company on
which the funds are drawn.
(c) The service charge under Subsection (b)(3) may not
exceed the amount charged for the collection of a check drawn on an
account with insufficient funds.
(d) The district may not collect the service charge under
Subsection (b)(3) if:
(1) the district is notified at the time of payment
that the payment is not honored; and
(2) the customer immediately submits to the district
an alternative form of payment.
SECTION 2. This Act takes effect September 1, 2005.
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