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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 purchases |
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paid with a credit card or debit card. |
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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 508 to read as follows: |
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CHAPTER 508. REQUIRING VERIFICATION OF IDENTITY FOR CERTAIN |
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PURCHASES PAID WITH CREDIT CARD OR DEBIT CARD |
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Sec. 508.001. 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 or debit card to whom or for whose benefit the credit |
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card or debit card is 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" means a card, device, or other means |
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of access to an individual's account at a financial institution |
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that the individual may use to initiate electronic fund transfers. |
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(4) "Merchant" means a person in the business of |
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selling goods or services. |
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(5) "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. 508.002. REQUIRING PHOTO IDENTIFICATION FOR CERTAIN |
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CREDIT OR DEBIT CARD TRANSACTIONS. (a) A merchant may not accept a |
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credit card or debit card for payment in a face-to-face transaction |
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unless the merchant requires the individual presenting the credit |
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card or debit card to provide photo identification verifying the |
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individual's identity as the cardholder if the 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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(1) the individual presenting the credit card for |
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payment to electronically enter the individual's zip code to verify |
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the individual's identity as authorized by Section 505.002; or |
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(2) the individual presenting the credit card or debit |
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card for payment to electronically enter the personal |
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identification number (PIN) associated with the card. |
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Sec. 508.003. LIABILITY FOR FAILURE TO OBTAIN |
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IDENTIFICATION. A merchant who violates Section 508.002 in |
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connection with a transaction described by that section that is not |
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authorized by the cardholder is liable to the cardholder or the |
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financial institution that issued the credit card or debit card for |
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all losses attributable to the violation. |
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SECTION 2. This Act takes effect January 1, 2018. |