88R14152 RDS-F
 
  By: Guillen H.B. No. 4626
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a limitation on certain fees a credit card issuer may
  charge a merchant for processing a credit card sale; authorizing a
  civil penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Title 12, Business & Commerce Code, is amended by
  adding Chapter 604B to read as follows:
  CHAPTER 604B. LIMITATION ON CERTAIN FEES
         Sec. 604B.001.  DEFINITIONS. In this chapter:
               (1)  "Credit card" has the meaning assigned by Section
  502.001.
               (2)  "Merchant" has the meaning assigned by Section
  604A.001.
         Sec. 604B.002.  LIMITATION ON CERTAIN FEES BY CREDIT CARD
  ISSUER. A person who issues a credit card may not impose a fee on a
  merchant for the amount of a credit card sale derived from a tax
  imposed under Chapter 151, Tax Code, in excess of 1.75 percent of
  that amount. 
         Sec. 604B.003.  CIVIL PENALTY. (a)  A person who violates
  this chapter is liable to the state for a civil penalty in an amount
  equal to five percent of the portion of each violative credit card
  sale derived from a tax imposed under Chapter 151, Tax Code.  The
  attorney general or the prosecuting attorney in the county in which
  the violation occurs may bring:
               (1)  a suit to recover the civil penalty imposed under
  this section; and
               (2)  an action in the name of the state to restrain or
  enjoin a person from violating this chapter. 
         (b)  Before bringing the action, the attorney general or
  prosecuting attorney shall give the person notice of the person's
  noncompliance and liability for a civil penalty.  The notice must:
               (1)  contain guidance to assist the person in complying
  with this chapter;
               (2)  advise the person of the limitation under this
  chapter; and 
               (3)  state that the person may be liable for a civil
  penalty for a subsequent violation of this chapter. 
         (c)  The attorney general or the prosecuting attorney, as
  appropriate, is entitled to recover reasonable expenses incurred in
  obtaining injunctive relief, civil penalties, or both, under this
  section, including reasonable attorney's fees, court costs, and
  investigatory costs. 
         SECTION 2.  Chapter 604B, Business & Commerce Code, as added
  by this Act, applies only to a sale that is covered by an agreement
  between a person who issues a credit card and a merchant entered
  into, amended, or renewed on or after the effective date of this
  Act.
         SECTION 3.  This Act takes effect September 1, 2023.