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A BILL TO BE ENTITLED
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AN ACT
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relating to disclosures and termination fees by certain businesses |
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providing credit card processing services. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 17, Business & Commerce Code, is amended |
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by adding Subchapter L to read as follows: |
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SUBCHAPTER L. DISCLOSURES AND TERMINATION FEES BY BUSINESSES |
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PROVIDING CREDIT CARD PROCESSING SERVICES |
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Sec. 17.931. REQUIRED DISCLOSURE. (a) Except as provided |
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by Subsection (c), a person that offers a credit card processing |
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service in this state shall disclose on any contract to provide the |
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service: |
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(1) the effective date of the contract; |
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(2) the term of the contract; |
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(3) the amount of any monthly minimum fee or charge for |
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the service; and |
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(4) the amount of any fee for terminating the |
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contract. |
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(b) The disclosures required by Subsection (a) and any other |
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terms and conditions relating to the use of the credit card |
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processing service must be printed in a font size that is at least |
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eight-point. |
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(c) This section does not apply to a bank, savings bank, |
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savings and loan association, or credit union organized under the |
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laws of this state or the United States that offers a credit card |
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processing service. |
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Sec. 17.932. TERMINATION CHARGES. (a) A person that offers |
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a credit card processing service in this state may not charge: |
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(1) a fee of $50 or more for terminating a contract for |
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the service; or |
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(2) a monthly minimum fee for more than one month after |
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the date that the service contract is terminated. |
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(b) For purposes of Subsection (a), an equipment rental or |
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lease purchase payment is not a fee. |
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Sec. 17.933. DECEPTIVE TRADE PRACTICE. (a) A person who |
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violates this subchapter commits a deceptive trade practice under |
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Subchapter E subject to the remedies provided under that |
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subchapter. |
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(b) This section does not limit any right or remedy that may |
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be available under any other law to a person who has entered into a |
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contract with a person providing credit card processing services. |
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SECTION 2. Subchapter L, Chapter 17, Business & Commerce |
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Code, as added by this Act, applies only to a contract entered into |
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on or after the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2011. |