By: Longoria, Laubenberg, Flynn H.B. No. 3522
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to photo identification requirements for certain stored
  value card purchases.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 604, Business & Commerce Code, is
  amended by adding Subchapter D to read as follows:
  SUBCHAPTER D.  REQUIRING VERIFICATION OF IDENTITY FOR CARD
  PURCHASES
         Sec. 604.151.  DEFINITIONS. In this subchapter:
               (1)  "Cardholder" means the person named on the face of
  a card to whom or for whose benefit the card is issued.
               (2)  "Card" means a credit card or debit card.
               (3)  "Credit card" means a card or device issued under
  an agreement by which the issuer gives to a cardholder the right to
  obtain credit from the issuer or another person.
               (4)  "Debit card" means a card or device or other means
  of access to an individual's account that may be used by the
  individual to initiate electronic fund transfers.
               (5)  "Merchant" means a person in the business of
  selling or leasing goods or services.
               (6)  "Photo identification" means a card or other
  document that:
                     (A)  is issued by a governmental entity to
  identify an individual; and
                     (B)  displays a photograph of the individual
  identified on the card or other document.
         Sec. 604.152.  APPLICABILITY OF SUBCHAPTER. (a) This
  subchapter does not apply to a merchant who sells or leases goods or
  services at 50 or fewer retail locations in this state.
         (b)  Notwithstanding Section 604.002, this subchapter
  applies to any point of sale transaction in which an individual
  seeks to pay a merchant for the purchase of or adding value to any
  stored value card.
         Sec. 604.153.  REQUIRING PHOTO IDENTIFICATION FOR CARD
  TRANSACTION. (a)  A merchant may not accept a card for payment in a
  point of sale transaction for the purchase of or adding value to a
  stored value card unless the merchant requires the individual who
  uses the card to provide photo identification verifying the
  individual's identity as the cardholder.
         (b)  Subsection (a) does not apply if the merchant requires
  the individual presenting the credit card for payment to provide
  the individual's zip code to verify the individual's identity as
  authorized by Section 505.002 or as to any card transaction,
  electronically enter the personal identification number (PIN)
  associated with the card or unique identifier serving as an
  electronic password associated with the card.
         Sec. 604.154.  LIABILITY FOR FAILURE TO OBTAIN
  IDENTIFICATION.  In the event the merchant fails to obtain photo
  identification or a PIN for a card transaction or the individual's
  zip code for a credit card transaction and the stored value
  transaction was not authorized by the cardholder, then the merchant
  shall be liable to the cardholder or the card issuing financial
  institution for all losses that may be attributed to such failure.
         SECTION 2.  This Act takes effect September 1, 2016.