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A BILL TO BE ENTITLED
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AN ACT
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relating to photo identification requirements for certain stored |
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value card purchases. |
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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. REQUIRING VERIFICATION OF IDENTITY FOR CARD |
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PURCHASES |
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Sec. 604.151. DEFINITIONS. In this subchapter: |
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(1) "Cardholder" means the person named on the face of |
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a card to whom or for whose benefit the card is issued. |
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(2) "Card" means a credit card or debit card. |
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(3) "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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(4) "Debit card" means a card or device or other means |
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of access to an individual's account that may be used by the |
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individual to initiate electronic fund transfers. |
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(5) "Merchant" means a person in the business of |
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selling or leasing goods or services. |
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(6) "Photo identification" means a card or other |
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document that: |
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(A) is issued by a governmental entity to |
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identify an individual; and |
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(B) displays a photograph of the individual |
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identified on the card or other document. |
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Sec. 604.152. APPLICABILITY OF SUBCHAPTER. (a) This |
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subchapter does not apply to a merchant who sells or leases goods or |
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services at 50 or fewer retail locations in this state. |
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(b) Notwithstanding Section 604.002, this subchapter |
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applies to any point of sale transaction in which an individual |
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seeks to pay a merchant for the purchase of or adding value to any |
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stored value card. |
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Sec. 604.153. REQUIRING PHOTO IDENTIFICATION FOR CARD |
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TRANSACTION. (a) A merchant may not accept a card for payment in a |
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point of sale transaction for the purchase of or adding value to a |
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stored value card unless the merchant requires the individual who |
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uses the card to provide photo identification verifying the |
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individual's identity as the cardholder. |
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(b) Subsection (a) does not apply if the merchant requires |
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the individual presenting the credit card for payment to provide |
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the individual's zip code to verify the individual's identity as |
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authorized by Section 505.002 or as to any card transaction, |
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electronically enter the personal identification number (PIN) |
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associated with the card or unique identifier serving as an |
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electronic password associated with the card. |
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Sec. 604.154. LIABILITY FOR FAILURE TO OBTAIN |
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IDENTIFICATION. In the event the merchant fails to obtain photo |
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identification or a PIN for a card transaction or the individual's |
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zip code for a credit card transaction and the stored value |
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transaction was not authorized by the cardholder, then the merchant |
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shall be liable to the cardholder or the card issuing financial |
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institution for all losses that may be attributed to such failure. |
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SECTION 2. This Act takes effect September 1, 2016. |