By: Hancock  S.B. No. 560          (In the Senate - Filed January 20, 2017; February 8, 2017,   read first time and referred to Committee on Business & Commerce;   April 10, 2017, reported favorably by the following vote:  Yeas 9,   Nays 0; April 10, 2017, sent to printer.)Click here to see the committee vote     A BILL TO BE ENTITLED   AN ACT     relating to surcharges imposed for the use of a credit card;   providing a civil penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 604A.001, Business & Commerce Code, is   amended by adding Subdivision (1-a) and amending Subdivision (5) to   read as follows:                (1-a)  "Credit card" has the meaning assigned by   Section 502.001.                (5)  "Surcharge" means an increase in the price charged   for goods or services imposed on a buyer who pays with a credit,    debit, or stored value card that is not imposed on a buyer who pays   by other means.  The term does not include a discounted price   charged for goods or services to a buyer who pays with cash.          SECTION 2.  Sections 604A.003(a), (b), and (b-1), Business &   Commerce Code, are amended to read as follows:          (a)  A person who knowingly violates Section 604A.002 or   604A.0021 is liable to the state for a civil penalty in an amount   not to exceed $500 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.  The notice must:                (1)  contain guidance to assist the person in complying   with this chapter;                (2)  advise the person of the prohibitions    [prohibition] under Sections [Section] 604A.002 and 604A.0021; and                (3)  state that the person may be liable for a civil   penalty for a subsequent violation of Section 604A.002 or   604A.0021.          (b-1)  If the person complies with Sections [Section]   604A.002 and 604A.0021 not later than the 30th day after the date of   the notice under Subsection (b), the violation is cured and the   person is not liable for the civil penalty.  A person who has   previously received notice of noncompliance under Subsection (b) is   not entitled to notice of or the opportunity to cure a subsequent   violation of Section 604A.002 or 604A.0021.          SECTION 3.  Section 14.101, Finance Code, is amended to read   as follows:          Sec. 14.101.  GENERAL DUTIES OF COMMISSIONER.  The   commissioner shall enforce [Section 339.001,] this chapter,   Subtitles B and C of Title 4, Chapter 393 with respect to a credit   access business, and Chapter 394 in person or through an assistant   commissioner, examiner, or other employee of the office.          SECTION 4.  Section 14.201, Finance Code, is amended to read   as follows:          Sec. 14.201.  INVESTIGATION AND ENFORCEMENT AUTHORITY.     Investigative and enforcement authority under this subchapter   applies only to [Section 339.001,] this chapter, Subtitles B and C   of Title 4, Chapter 393 with respect to a credit access business,   and Chapter 394.          SECTION 5.  Section 14.2015(a), Finance Code, is amended to   read as follows:          (a)  Except as provided by Subsection (b), information or   material obtained or compiled by the commissioner in relation to an   examination or investigation by the commissioner or the   commissioner's representative of a license holder, registrant,   applicant, or other person under [Section 339.001,] Subtitle B or   C, Title 4, Subchapter G of Chapter 393, or Chapter 394 is   confidential and may not be disclosed by the commissioner or an   officer or employee of the Office of Consumer Credit Commissioner,   including:                (1)  information obtained from a license holder,   registrant, applicant, or other person examined or investigated   under [Section 339.001,] Subtitle B or C, Title 4, Subchapter G of   Chapter 393, or Chapter 394;                (2)  work performed by the commissioner or the   commissioner's representative on information obtained from a   license holder, registrant, applicant, or other person for the   purposes of an examination or investigation conducted under   [Section 339.001,] Subtitle B or C, Title 4, Chapter 393 with   respect to a credit access business, or Chapter 394;                (3)  a report on an examination or investigation of a   license holder, registrant, applicant, or other person conducted   under [Section 339.001,] Subtitle B or C, Title 4, Chapter 393 with   respect to a credit access business, or Chapter 394; and                (4)  any written communications between the license   holder, registrant, applicant, or other person, as applicable, and   the commissioner or the commissioner's representative relating to   or referencing an examination or investigation conducted under   [Section 339.001,] Subtitle B or C, Title 4, Chapter 393 with   respect to a credit access business, or Chapter 394.          SECTION 6.  Section 14.251(b), Finance Code, is amended to   read as follows:          (b)  The commissioner may order a person who violates or   causes a violation of [Section 339.001,] this chapter, Chapter 394,   or Subtitle B, Title 4, or a rule adopted under [Section 339.001,]   this chapter, Chapter 394, or Subtitle B, Title 4, or a credit   access business who violates or causes a violation of Chapter 393 or   a rule adopted under Chapter 393, to make restitution to an   identifiable person injured by the violation.          SECTION 7.  Section 14.261(a), Finance Code, is amended to   read as follows:          (a)  In administering this chapter, the commissioner may   accept assurance of voluntary compliance from a person who is   engaging in or has engaged in an act or practice in violation of:                (1)  [Section 339.001;                [(2)]  this chapter or a rule adopted under this   chapter;                (2) [(3)]  Chapter 393, if the person is a credit   access business, or Chapter 394; or                (3) [(4)]  Subtitle B, Title 4, or a rule adopted under   Subtitle B, Title 4.          SECTION 8.  Section 14.262, Finance Code, is amended to read   as follows:          Sec. 14.262.  EFFECT OF ASSURANCE. (a)  An assurance of   voluntary compliance is not an admission of a violation of:                (1)  [Section 339.001;                [(2)]  this chapter or a rule adopted under this   chapter;                (2) [(3)]  Chapter 393 with respect to a credit access   business or Chapter 394; or                (3) [(4)]  Subtitle B, Title 4, or a rule adopted under   Subtitle B, Title 4.          (b)  Unless an assurance of voluntary compliance is   rescinded by agreement or voided by a court for good cause, a   subsequent failure to comply with the assurance is prima facie   evidence of a violation of:                (1)  [Section 339.001;                [(2)]  this chapter or a rule adopted under this   chapter;                (2) [(3)]  Chapter 393 with respect to a credit access   business or Chapter 394; or                (3) [(4)]  Subtitle B, Title 4, or a rule adopted under   Subtitle B, Title 4.          SECTION 9.  Section 339.001, Finance Code, is transferred to   Chapter 604A, Business & Commerce Code, redesignated as Section   604A.0021, Business & Commerce Code, and amended to read as   follows:          Sec. 604A.0021 [339.001].  IMPOSITION OF SURCHARGE FOR USE   OF CREDIT CARD.  (a)  In a sale of goods or services, a seller may   not 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.          (b)  This section does not apply to:                (1)  a state agency, county, local governmental entity,   or other governmental entity that accepts a credit card for the   payment of fees, taxes, or other charges; or                (2)  a private school that accepts a credit card for the   payment of fees or other charges, as provided by Section 111.002[,   Business & Commerce Code].          (c)  [The consumer credit commissioner has exclusive   jurisdiction to enforce this section.          [(d)     The Finance Commission of Texas may adopt rules   relating to this section.   Rules adopted pursuant to this section   shall be consistent with federal laws and regulations governing   credit card transactions described by this section.          [(e)]  This section does not create a cause of action against   an individual for violation of this section.          SECTION 10.  This Act takes effect September 1, 2017.     * * * * *