H.B. No. 1881
 
 
 
 
AN ACT
  relating to authorizing certain private schools to charge fees for
  processing or handling certain payments or payment transactions.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle C, Title 5, Business & Commerce Code, is
  amended by adding Chapter 111 to read as follows:
  CHAPTER 111. PRIVATE SCHOOLS
         Sec. 111.001.  DEFINITIONS. In this chapter:
               (1)  "Cardholder" means the person named on the face of
  a credit or debit card to whom or for whose benefit the card is
  issued.
               (2)  "Credit card" means a card or device issued under
  an agreement by which the issuer gives to a cardholder the right to
  obtain credit from the issuer or another person.
               (3)  "Debit card" has the meaning assigned by Section
  502.001.
               (4)  "Private school" means a school that:
                     (A)  offers a course of instruction for students
  in one or more grades from prekindergarten through grade 12;
                     (B)  is not operated by a governmental entity; and
                     (C)  is accredited by an accrediting agency that
  is a member of the Texas Private School Accreditation Commission.
         Sec. 111.002.  CHARGES AND FEES FOR CERTAIN PAYMENTS AT
  PRIVATE SCHOOLS. (a) This section applies to a payment of tuition,
  a fee, or another charge to a private school that is made or
  authorized in person, by mail, by telephone call, or through the
  Internet by means of:
               (1)  a credit card;
               (2)  a debit card; or
               (3)  an electronic funds transfer.
         (b)  A private school may charge a fee or other amount in
  connection with a payment to which this section applies, in
  addition to the amount of the tuition, fee, or other charge being
  paid, including:
               (1)  a discount, convenience, or service charge for the
  transaction; or
               (2)  a service charge in connection with a payment
  transaction that is dishonored or refused for lack of funds or
  insufficient funds.
         (c)  A fee or other charge under this section must be in an
  amount reasonable and necessary to reimburse the school for the
  expense incurred by the school in processing and handling the
  payment or payment transaction.
         (d)  Before accepting a payment by credit card, debit card,
  or electronic funds transfer, the school shall notify the
  cardholder or other person making the payment of any fee to be
  charged under this section.
         SECTION 2.  Section 59.402(b), Finance Code, is amended to
  read as follows:
         (b)  This section does not apply to:
               (1)  a state agency, county, local governmental entity,
  or other governmental entity that accepts a debit or stored value
  card for the payment of fees, taxes, or other charges; or
               (2)  a private school that accepts a debit card for the
  payment of fees or other charges, as provided by Section 111.002,
  Business & Commerce Code.
         SECTION 3.  Section 339.001(b), Finance Code, is amended to
  read as follows:
         (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.
         SECTION 4.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2015.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1881 was passed by the House on April
  27, 2015, by the following vote:  Yeas 143, Nays 0, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1881 was passed by the Senate on May
  23, 2015, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor