85R23688 GRM-D
 
  By: Hughes, et al. S.B. No. 1381
 
  (Longoria)
 
  Substitute the following for S.B. No. 1381:  No.
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to photo identification for certain debit or credit card
  transactions.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle A, Title 11, Business & Commerce Code,
  is amended by adding Chapter 508 to read as follows:
  CHAPTER 508. REQUIRING VERIFICATION OF IDENTITY FOR CERTAIN CARD
  TRANSACTIONS
         Sec. 508.001.  DEFINITIONS. In this chapter:
               (1)  "Cardholder" means the person named on the face of
  a credit card or debit card to whom or for whose benefit the credit
  card or debit 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" means a card, device, or other means
  of access to an individual's account at a financial institution
  that the individual may use to initiate electronic fund transfers.
               (4)  "Merchant" means a person in the business of
  selling goods or services.
               (5)  "Mobile wallet" means a device that uses an
  encrypted digital token to authenticate a cardholder's identity and
  account information.
               (6)  "Photo identification" means a card or other
  document that:
                     (A)  is issued by a governmental entity to
  identify an individual; and
                     (B)  displays a photograph of the individual
  identified on the card or other document.
         Sec. 508.002.  REQUIRING PHOTO IDENTIFICATION FOR CREDIT OR
  DEBIT CARD TRANSACTION. (a) A merchant, in a point of sale
  transaction, may require the individual using the credit card or
  debit card to provide photo identification verifying the
  individual's identity as the cardholder.
         (b)  A merchant may choose to not accept the card for payment
  if the individual fails to provide photo identification verifying
  the individual's identity as the cardholder.
         (c)  This section does not apply to transactions conducted
  with a mobile wallet.
         Sec. 508.003.  EXPIRATION.  This chapter expires September
  1, 2023.
         SECTION 2.  This Act takes effect January 1, 2018.