BILL ANALYSIS |
C.S.S.B. 1381 |
By: Hughes |
Investments & Financial Services |
Committee Report (Substituted) |
BACKGROUND AND PURPOSE
Interested parties contend that merchants and banks would be better able to minimize fraudulent transactions and losses if merchants were authorized to require an individual using a credit or debit card to provide photo identification to verify the individual's identity as the cardholder. C.S.S.B. 1381 seeks to reduce credit and debit card fraud by providing for a merchant's authority to implement such an identification requirement.
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CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
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RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
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ANALYSIS
C.S.S.B. 1381 amends the Business & Commerce Code to authorize a merchant to require an individual using a credit card or debit card in a point of sale transaction to provide government‑issued photo identification verifying the individual's identity as the cardholder. The bill authorizes the merchant to choose to not accept the card for payment if the individual fails to provide such photo identification. The bill expressly does not apply to transactions conducted with a device that uses an encrypted digital token to authenticate a cardholder's identity and account information. The bill expires September 1, 2023.
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EFFECTIVE DATE
January 1, 2018.
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COMPARISON OF SENATE ENGROSSED AND SUBSTITUTE
While C.S.S.B. 1381 may differ from the engrossed in minor or nonsubstantive ways, the following comparison is organized and formatted in a manner that indicates the substantial differences between the engrossed and committee substitute versions of the bill.
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