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AN ACT
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relating to authorizing certain private schools to charge fees for |
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processing or handling certain payments or payment transactions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is |
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amended by adding Chapter 111 to read as follows: |
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CHAPTER 111. PRIVATE SCHOOLS |
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Sec. 111.001. DEFINITIONS. In this chapter: |
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(1) "Cardholder" means the person named on the face of |
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a credit or debit card to whom or for whose benefit the card is |
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issued. |
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(2) "Credit card" means a card or device issued under |
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an agreement by which the issuer gives to a cardholder the right to |
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obtain credit from the issuer or another person. |
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(3) "Debit card" has the meaning assigned by Section |
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502.001. |
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(4) "Private school" means a school that: |
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(A) offers a course of instruction for students |
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in one or more grades from prekindergarten through grade 12; |
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(B) is not operated by a governmental entity; and |
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(C) is accredited by an accrediting agency that |
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is a member of the Texas Private School Accreditation Commission. |
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Sec. 111.002. CHARGES AND FEES FOR CERTAIN PAYMENTS AT |
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PRIVATE SCHOOLS. (a) This section applies to a payment of tuition, |
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a fee, or another charge to a private school that is made or |
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authorized in person, by mail, by telephone call, or through the |
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Internet by means of: |
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(1) a credit card; |
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(2) a debit card; or |
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(3) an electronic funds transfer. |
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(b) A private school may charge a fee or other amount in |
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connection with a payment to which this section applies, in |
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addition to the amount of the tuition, fee, or other charge being |
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paid, including: |
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(1) a discount, convenience, or service charge for the |
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transaction; or |
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(2) a service charge in connection with a payment |
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transaction that is dishonored or refused for lack of funds or |
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insufficient funds. |
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(c) A fee or other charge under this section must be in an |
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amount reasonable and necessary to reimburse the school for the |
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expense incurred by the school in processing and handling the |
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payment or payment transaction. |
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(d) Before accepting a payment by credit card, debit card, |
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or electronic funds transfer, the school shall notify the |
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cardholder or other person making the payment of any fee to be |
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charged under this section. |
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SECTION 2. Section 59.402(b), Finance Code, is amended to |
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read as follows: |
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(b) This section does not apply to: |
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(1) a state agency, county, local governmental entity, |
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or other governmental entity that accepts a debit or stored value |
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card for the payment of fees, taxes, or other charges; or |
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(2) a private school that accepts a debit card for the |
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payment of fees or other charges, as provided by Section 111.002, |
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Business & Commerce Code. |
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SECTION 3. Section 339.001(b), Finance Code, is amended to |
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read as follows: |
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(b) This section does not apply to: |
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(1) a state agency, county, local governmental entity, |
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or other governmental entity that accepts a credit card for the |
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payment of fees, taxes, or other charges; or |
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(2) a private school that accepts a credit card for the |
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payment of fees or other charges, as provided by Section 111.002, |
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Business & Commerce Code. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2015. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 1881 was passed by the House on April |
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27, 2015, by the following vote: Yeas 143, Nays 0, 1 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 1881 was passed by the Senate on May |
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23, 2015, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |