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A BILL TO BE ENTITLED
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AN ACT
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relating to the expiration of a stored value card. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 604, Business & Commerce Code, is |
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amended by adding Subchapter D to read as follows: |
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SUBCHAPTER D. PROHIBITED RESTRICTIONS |
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Sec. 604.151. EXPIRATION OF STORED VALUE CARD PROHIBITED. |
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A person may not issue or sell a stored value card that provides |
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that the card expires after a certain date. A condition providing |
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for the expiration of a stored value card is void. |
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SECTION 2. Sections 604.002, 604.051, 604.101, 604.102, and |
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604.103, Business & Commerce Code, are amended to read as follows: |
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Sec. 604.002. INAPPLICABILITY OF CHAPTER. This chapter |
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does not apply to a stored value card [that]: |
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(1) that is issued by: |
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(A) a financial institution acting as a financial |
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agent of the United States or this state; |
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(B) a federally insured financial institution, |
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as defined by Section 201.101, Finance Code, if the financial |
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institution is primarily liable for the card as the issuing |
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principal; or |
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(C) an air carrier holding a certificate of |
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public convenience and necessity under Title 49, United States |
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Code; |
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(2) that is issued as a prepaid calling card by a |
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prepaid calling card company regulated under Section 55.253, |
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Utilities Code; |
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(3) that is distributed by the issuer to a person under |
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an awards, rewards, loyalty, incentive, rebate, or promotional |
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program and is not issued or reloaded in exchange for money tendered |
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by the cardholder; |
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(4) that is sold below face value or donated to: |
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(A) an employee of the seller or issuer; |
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(B) a nonprofit or charitable organization; or |
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(C) an educational institution for fund-raising |
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purposes; or |
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(5) [does not expire and] for which the seller does not |
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charge a fee other than a fee described in Section 604.051. |
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Sec. 604.051. FEES AND CHARGES RELATED TO ISSUANCE AND |
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HANDLING OF CARD. If disclosed as required by Subchapter C, the |
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issuer of a stored value card may impose and collect a reasonable: |
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(1) handling fee in connection with the issuance of or |
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adding of value to the card; |
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(2) access fee for a card transaction conducted at an |
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unmanned teller machine, as defined by Section 59.301, Finance |
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Code; and |
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(3) reissue or replacement charge if a [an expired or] |
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lost card is reissued or replaced. |
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Sec. 604.101. REQUIRED DISCLOSURE OF CERTAIN MATTERS |
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APPLICABLE TO CARD. A [An expiration date or] policy, fee, or other |
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material restriction or contract term applicable to a stored value |
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card must be clearly and conspicuously disclosed at the time the |
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card is sold or issued to a person to enable the person to make an |
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informed decision before purchasing the card. |
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Sec. 604.102. REQUIRED PRINTING OF CERTAIN DISCLOSURES. In |
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addition to the disclosure required under Section 604.101, a |
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disclosure regarding [the expiration of a stored value card or] a |
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periodic fee that reduces the unredeemed value of a stored value |
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card must be legibly printed on the card. |
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Sec. 604.103. VALIDITY OF CARD SOLD WITHOUT REQUIRED |
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DISCLOSURES. A stored value card sold without the disclosure |
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required by this subchapter of a [an expiration date or] policy, |
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fee, or other material restriction or contract term applicable to |
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the card is valid until redeemed or replaced. |
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SECTION 3. Section 72.1016(b), Property Code, is amended to |
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read as follows: |
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(b) If the existence and location of the owner of a stored |
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value card is unknown to the holder of the property, the stored |
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value card is presumed abandoned to the extent of its unredeemed and |
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uncharged value on the earlier of: |
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(1) [the card's expiration date;
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[(2)] the third anniversary of the date the card was |
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issued, if the card is not used after it is issued, or the date the |
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card was last used or value was last added to the card; or |
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(2) [(3)] the first anniversary of the date the card |
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was issued, if the card is not used after it is issued, or the date |
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the card was last used or value was last added to the card, if the |
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card's value represents wages, as defined by Section 61.001, Labor |
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Code. |
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SECTION 4. The changes in law made by this Act apply only to |
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the issuance or sale of a stored value card on or after the |
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effective date of this Act. The issuance or sale of a stored value |
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card before the effective date of this Act is governed by the law in |
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effect when the card was issued or sold, and the former law is |
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continued in effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2009. |