| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to photo identification requirements for certain stored |
|
|
value card transactions. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Chapter 604, Business & Commerce Code, is |
|
|
amended by adding Subchapter E to read as follows: |
|
|
SUBCHAPTER E. REQUIRING VERIFICATION OF IDENTITY FOR CERTAIN |
|
|
STORED VALUE CARD TRANSACTIONS |
|
|
Sec. 604.201. DEFINITIONS. In this subchapter: |
|
|
(1) "Cardholder" means the person named on the face of |
|
|
a credit card or debit card to whom or for whose benefit the credit |
|
|
card or debit card is issued. |
|
|
(2) "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. |
|
|
(3) "Debit card" means a card, device, or other means |
|
|
of access to an individual's account at a financial institution |
|
|
that the individual may use to initiate electronic fund transfers. |
|
|
(4) "Merchant" means a person in the business of |
|
|
selling or leasing goods or services. |
|
|
(5) "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. 604.202. APPLICABILITY OF SUBCHAPTER. (a) This |
|
|
subchapter does not apply to a merchant who sells or leases goods or |
|
|
services at not more than 50 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 to add value to any |
|
|
stored value card. |
|
|
Sec. 604.203. REQUIRING PHOTO IDENTIFICATION FOR CREDIT OR |
|
|
DEBIT CARD TRANSACTION. (a) A merchant may not accept a credit card |
|
|
or debit card for payment in a point of sale transaction for the |
|
|
purchase of or to add value to a stored value card unless the |
|
|
merchant requires the individual using the credit card or debit |
|
|
card to provide photo identification verifying the individual's |
|
|
identity as the cardholder. |
|
|
(b) Subsection (a) does not apply if the merchant requires: |
|
|
(1) 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 |
|
|
(2) the individual using the credit card or debit card |
|
|
to electronically enter the personal identification number (PIN) or |
|
|
other unique identifier serving as an electronic password |
|
|
associated with the card. |
|
|
Sec. 604.204. LIABILITY FOR FAILURE TO OBTAIN |
|
|
IDENTIFICATION. A merchant who violates Section 604.203 in |
|
|
connection with a transaction described by that section that is not |
|
|
authorized by the cardholder is liable to the cardholder or the |
|
|
financial institution or other issuer that issued the credit card |
|
|
or debit card for all losses attributable to the violation. |
|
|
SECTION 2. This Act takes effect September 1, 2018. |