88R7089 SRA-F
	By: Parker	S.B. No. 1541

	A BILL TO BE ENTITLED
	AN ACT
	relating to the charging of swipe fees on certain electronic
	payment transactions; 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 610 to read as follows:
	CHAPTER 610. CHARGING OF SWIPE FEES
	Sec. 610.001.  DEFINITIONS. In this chapter:
	(1)  "Assessment fee" means a fee, usually based on the
	total amount of monthly sales, paid directly to the payment card
	network for allowing a merchant to use a payment card or other
	payment code or device in an electronic payment transaction.
	(2)  "Electronic payment transaction" means a
	transaction in which a person uses a payment card or other payment
	code or device issued or approved through a payment card network to
	debit a deposit account or use a line of credit, whether
	authorization is based on a signature, personal identification
	number, or other means.
	(3)  "Interchange fee" means a fee charged to a
	merchant for the purpose of compensating the payment card issuer
	for the issuer's involvement in an electronic payment transaction.
	(4)  "Payment card" means a credit card, debit card,
	check card, or other card that is issued to an authorized user to
	purchase or obtain goods, services, money, or any other thing of
	value.
	(5)  "Payment card issuer" means a lender, including a
	financial institution, or a merchant that receives applications and
	issues payment cards to individuals.
	(6)  "Payment card network" means an entity that
	directly, or through a licensed member, processor, or agent,
	provides the proprietary services, infrastructure, and software
	that route information and data to conduct debit card or credit card
	transaction authorization, clearance, and settlement, and that an
	entity uses in order to accept as a form of payment a brand of debit
	card, credit card, or other device that may be used to carry out
	debit or credit transactions.
	(7)  "State or local tax" includes a tax imposed by this
	state or a unit of local government of this state, including the
	sales, excise, and use tax, motor fuels tax, hotel occupancy tax,
	and the tax imposed on the rental of a motor vehicle, other than a
	tax returned to a taxpayer in the form of a deduction or discount
	under Section 151.423 or 151.424, Tax Code.
	(8)  "Swipe fee" means the interchange fee and, if
	applicable, the assessment fee.
	Sec. 610.002.  EXCLUSION OF STATE OR LOCAL TAXES FROM SWIPE
	FEES; MERCHANT DEDUCTION OR REBATE.  (a)  The amount of state or
	local tax that is calculated as a percentage of the amount of an
	electronic payment transaction made in this state and listed
	separately on a payment invoice or other demand for payment must be
	excluded from the total amount on which a swipe fee is charged for
	that transaction.
	(b)  A payment card network shall with respect to each form
	or type of electronic payment transaction:
	(1)  deduct the amount of state or local tax imposed
	from the calculation of swipe fees attributable to the transaction
	at the time of settlement; or
	(2)  rebate the merchant an amount equal to the amount
	of swipe fees attributable to the state or local tax imposed on the
	transaction.
	(c)  A deduction or rebate under this section must occur at
	the time of settlement when the merchant is able to capture and
	transmit state or local tax or fee amounts relevant to the sale at
	the time of sale as part of the transaction finalization.  If a
	merchant is unable to capture and transmit tax or fee amounts
	relevant to the sale at the time of sale, then the payment card
	network must accept proof of tax or fee amounts collected on sales
	subject to a swipe fee on the submission of sales data by the
	merchant.
	Sec. 610.003.  CIVIL PENALTY; RESTITUTION.  (a)  A person who
	violates this chapter is liable to this state for a civil penalty in
	an amount not to exceed $1,000 for each violation.
	(b)  The attorney general may bring an action to:
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