SB 1381

85(R) - 2017
Senate Business & Commerce
Senate Business & Commerce
Business, Industry, & Commerce

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral


Bryan Hughes

Bill Caption

Relating to photo identification for certain debit or credit card transactions.

Fiscal Notes

From the Legislative Budget Board: no fiscal implication to the state is anticipated.

Bill Analysis

SB 1381 would amend the Business & Commerce Code to allow a merchant in a transaction to require the customer using a credit or debit card to provide photo identification and refuse payment if the customer fails to provide identification verifying the individual’s identity as the cardholder.

Vote Recommendation Notes

Because this bill is establishing a permissive means by which merchants can verify or deny transactions, we believe it has no substantive impact on our principles.

It is worth noting that some credit card processing companies allow merchant's to ask a customer for proof of identification but do not allow the merchant to refuse the sale in the event the customer is unable or refuses to produce identification. To the extent that this legislation would give legal authority for a merchant to turn down a sale on account of a customer not producing identification, this could result in the impairment of a contract between the merchant and the credit card issuer. That would be an issue for the courts to decide.

Again, we note that this is permissive and contains no penalties so on the whole it appears to still leave most of the power with the merchant and card institutions therefore are neutral.

Organizations Supporting

Independent Bankers Association of Texas

Organizations Opposed

JP Morgan Chase
Texas Food & Fuel Association
Texas Retailers Association