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A BILL TO BE ENTITLED
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AN ACT
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relating to the reduction in value or abandonment of stored value |
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cards. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 604.002, Business & Commerce Code, is |
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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) 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) is issued as a prepaid calling card by a prepaid |
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calling card company regulated under Section 55.253, Utilities |
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Code; |
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(3) is distributed by the issuer to a person under an |
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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) 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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SECTION 2. The heading to Subchapter B, Chapter 604, |
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Business & Commerce Code, is amended to read as follows: |
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SUBCHAPTER B. [PERMISSIBLE] FEES PROHIBITED |
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SECTION 3. Section 604.051, Business & Commerce Code, is |
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amended to read as follows: |
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Sec. 604.051. FEES AND CHARGES ASSOCIATED WITH [RELATED TO
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ISSUANCE AND HANDLING OF] CARD PROHIBITED. The [If disclosed as
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required by Subchapter C, the] issuer of a stored value card may not |
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impose or [and] collect a fee associated with a stored value card, |
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including [reasonable]: |
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(1) a handling fee in connection with the issuance of |
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or adding of value to the card; |
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(2) an access fee for a card transaction conducted at |
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an unmanned teller machine, as defined by Section 59.301, Finance |
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Code; [and] |
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(3) a reissue or replacement charge if an expired or |
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lost card is reissued or replaced; or |
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(4) a periodic fee or other charge that causes the |
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unredeemed balance of the card to decrease over time. |
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SECTION 4. Section 604.101, Business & Commerce Code, is |
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amended to read as follows: |
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Sec. 604.101. REQUIRED DISCLOSURE OF CERTAIN MATTERS |
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APPLICABLE TO CARD. An expiration date, [or] policy, [fee,] or |
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other material restriction or contract term applicable to a stored |
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value card must be clearly and conspicuously disclosed at the time |
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the card is sold or issued to a person to enable the person to make |
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an informed decision before purchasing the card. |
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SECTION 5. Section 604.102, Business & Commerce Code, is |
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amended to read as follows: |
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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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SECTION 6. Section 604.103, Business & Commerce Code, is |
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amended to read as follows: |
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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 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 7. Section 72.1016(a), Property Code, is amended to |
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read as follows: |
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(a) This section applies to a stored value card, as defined |
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by Section 604.001, Business & Commerce Code, other than a card: |
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(1) to which Chapter 604, Business & Commerce Code, |
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does not apply by operation of Sections 604.002(1)(A) and (C) and |
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604.002(2)-(4) [604.002(2)-(5)] of that code; or |
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(2) that is linked to and draws its value solely from a |
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deposit account subject to Chapter 73. |
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SECTION 8. The following provisions are repealed: |
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(1) Section 604.052, Business & Commerce Code; and |
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(2) Section 72.1016(d), Property Code. |
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SECTION 9. The changes in law made by this Act apply only to |
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a stored value card issued or activated on or after the effective |
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date of this Act. A stored value card issued or activated before |
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the effective date of this Act is governed by the law in effect when |
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the card was issued or activated, and the former law is continued in |
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effect for that purpose. |
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SECTION 10. This Act takes effect September 1, 2009. |