BILL ANALYSIS

Senate Research Center	C.S.H.B. 3615
	By: Lambert (Schwertner)
	Business & Commerce
	5/19/2023
	Committee Report (Substituted)

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

H.B. 3615 codifies current caselaw by  repealing Texas' unconstitutional statute prohibiting credit card surcharges and providing transparency for consumers.

Currently, Section 604A.0021 of the Business and Commerce Code prohibits sellers of goods and services from imposing a credit card surcharge.  In 2018, a federal judge issued an injunction barring the State of Texas from enforcing Section 604A.0021, citing the U.S. Supreme Court's 2017 holding in Expressions Hair Design v. Schneiderman, which found such bans on credit card surcharges to violate the First Amendment.

H.B. 3615 repeals Section 604A.0021, Business and Commerce Code, and requires merchants to provide consumer disclosure to a buyer who uses a credit card before a surcharge is imposed. 

(Original Author's/Sponsor's Statement of Intent)

C.S.H.B. 3615 amends current law relating to surcharges imposed for the use of a credit card.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Repealer: Section 604A.0021 (Imposition of Surcharge for Use of Credit Card), Business and Commerce Code.

SECTION 2. Amends the heading to Chapter 604A, Business and Commerce Code, to read as follows:

CHAPTER 604A. PROHIBITION OR REGULATION OF CERTAIN SURCHARGES

SECTION 3. Amends Section 604A.003, Business and Commerce Code, as follows:

Sec. 604A.003. CIVIL PENALTY. (a) Provides that a person who knowingly violates Section 604A.002 (Imposition of Surcharge For Use of Debit or Stored Value Card), rather than Section 604A.002 or Section 604A.0021, is liable for the state for a civil penalty in an amount not to exceed $500 for each violation. Makes conforming changes.

(b-1) Makes conforming changes to this subsection.

(c) Makes no change to this subsection.

SECTION 4. Amends Chapter 604A, Business and Commerce Code, by adding Section 604A.004, as follows:

Sec. 604A.004. IMPOSITION OF SURCHARGE FOR USE OF CREDIT CARD. (a) Authorizes a merchant to impose a surcharge on a buyer who uses a credit card for an extension of credit instead of cash, a check, or a similar means of payment to pay for the purchase of goods or services. Provides that the buyer is obligated to pay any surcharge imposed on the credit extension transaction under this section.

(b) Prohibits a surcharge imposed under this section from exceeding the amount necessary to offset the cost to the merchant of accepting credit cards.

(c) Requires a merchant, before a merchant is authorized to impose a surcharge under this section, to provide to a buyer who uses a credit card for an extension of credit a disclosure stating: "Customers who pay with a credit card are responsible for the payment of a surcharge that won't exceed what's necessary to cover our costs for accepting credit cards.".

(d) Requires a merchant who imposes a surcharge under this section to disclose the surcharge on the receipt or other statement of purchase given to the buyer.

SECTION 5. Effective date: September 1, 2023.