Bill Text: TX HB4626 | 2023-2024 | 88th Legislature | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2023-03-22 - Referred to Pensions, Investments & Financial Services [HB4626 Detail]

Download: Texas-2023-HB4626-Introduced.html

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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.