Bill Text: TX SB641 | 2015-2016 | 84th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to debit card or stored value card surcharges; providing a civil penalty.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2015-05-23 - Effective on 9/1/15 [SB641 Detail]

Download: Texas-2015-SB641-Comm_Sub.html

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By: Schwertner S.B. No. 641
(In the Senate - Filed February 19, 2015; February 24, 2015,
read first time and referred to Committee on Business and Commerce;
March 23, 2015, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 9, Nays 0; March 23, 2015,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 641 By: Schwertner

A BILL TO BE ENTITLED
AN ACT
relating to debit card or stored value card surcharges; providing a
civil penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 59.401, Finance Code, is amended by
adding Subdivision (5) to read as follows:
(5) "Surcharge" means any increase in the price
charged for goods or services imposed on a customer who pays with a
debit or stored value card that is not imposed on a customer who
pays by other means.
SECTION 2. Subchapter E, Chapter 59, Finance Code, is
amended by adding Section 59.403 to read as follows:
Sec. 59.403. CIVIL PENALTY. (a) A person who knowingly
violates Section 59.402 is liable to the state for a civil penalty
in an amount not to exceed $1,000 for each violation. 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. If the person
complies with Section 59.402 not later than the 30th day after the
date of the notice, the violation is cured and the person is not
liable for the civil penalty.
(c) The attorney general or 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 3. The changes in law made by this Act apply only to
a sale of goods or services occurring on or after the effective date
of this Act. A sale of goods or services occurring before the
effective date of this Act is governed by the law in effect on the
date the sale occurred, and the former law is continued in effect
for that purpose.
SECTION 4. This Act takes effect September 1, 2015.
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