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A BILL TO BE ENTITLED
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AN ACT
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relating to requiring photo identification for certain card |
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purchases. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle A, Title 11, Business & Commerce Code, |
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is amended by adding Chapter 506 to read as follows: |
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CHAPTER 506. REQUIRING VERIFICATION OF IDENTITY FOR CERTAIN CARD |
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PURCHASES |
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Sec. 506.001. DEFINITIONS. In this chapter: |
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(1) "Cardholder" means the person named on the face of |
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a credit 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 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. 506.002. REQUIRING PHOTO IDENTIFICATION FOR CERTAIN |
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CARD TRANSACTIONS. (a) A merchant may not accept a card for payment |
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in a face-to-face transaction unless the merchant requires the |
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individual presenting the card to provide photo identification |
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verifying the individual's identity as the cardholder if the |
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transaction is for: |
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(1) the purchase of goods or services in an amount of |
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more than $200; or |
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(2) the purchase of a stored value card as defined by |
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Section 604.001. |
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(b) Subsection (a) does not apply if the merchant requires |
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the individual presenting the card for payment to: |
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(1) electronically enter the individual's zip code to |
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verify the individual's identity as authorized by Section 505.002; |
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or |
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(2) electronically enter the personal identification |
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number (PIN) associated with the card. |
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Sec. 506.003 LIABILITY FOR FAILURE TO OBTAIN |
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IDENTIFICATION. In the event the merchant fails to obtain photo |
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identification for a card transaction or the individual's zip code |
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for a credit card transaction and the stored value transaction was |
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not authorized by the cardholder, then the merchant shall be liable |
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to the cardholder or the card issuing financial institution for all |
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losses that may be attributed to such failure. |
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SECTION 2. This Act takes effect January 1, 2016. |