BILL NUMBER: SB 933	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Oropeza

                        FEBRUARY 2, 2010

   An act to add Section 1748.33 to the Civil Code, relating to debit
cards.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 933, as introduced, Oropeza. Debit cards: service fees.
   Existing law prohibits a retailer from imposing a surcharge on a
credit card holder who elects to use a credit card instead of paying
by cash, check or similar means, as provided. Existing law also
provides that any retailer who imposes a surcharge and who fails to
pay that amount to the cardholder within 30 days of written demand is
liable for 3 times the amount at which actual damages are assessed.
The cardholder is entitled to recover reasonable attorney's fees and
costs incurred in the action. Existing law exempts from these
provisions charges for payment made to an electrical, gas, or water
corporation. Existing law also regulates the use of debit cards.
   This bill would make these provisions applicable to a retailer in
any sales, service, or lease transaction with a consumer who elects
to use a debit card instead of paying by cash, check, or similar
means.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1748.33 is added to the Civil Code, to read:
   1748.33.  (a) No retailer in any sales, service, or lease
transaction with a consumer may impose a surcharge on a cardholder
who elects to use a debit card in lieu of payment by cash, check, or
similar means. A retailer may, however, offer discounts for the
purpose of inducing payment by cash, check, or other means not
involving the use of a debit card, provided that the discount is
offered to all prospective buyers.
   (b) Any retailer who willfully violates this section by imposing a
surcharge on a cardholder who elects to use a debit card and who
fails to pay that amount to the cardholder within 30 days of a
written demand by the cardholder to the retailer by certified mail,
shall be liable to the cardholder for three times the amount at which
actual damages are assessed. The cardholder shall also be entitled
to recover reasonable attorney's fees and costs incurred in the
action.
   A cause of action under this section may be brought in small
claims court, if it does not exceed the jurisdiction of that court,
or in any other appropriate court.
   (c) A consumer shall not be deemed to have elected to use a debit
card in lieu of another means of payment for purposes of this section
in a transaction with a retailer if only debit cards are accepted by
that retailer in payment for an order made by a consumer over a
telephone, and only cash is accepted at a public store or other
facility of the same retailer.
   (d) Charges for third-party debit card guarantee services, when
added to the price charged by the retailer if cash were to be paid,
shall be deemed surcharges for purposes of this section even if they
are payable directly to the third party or are charged separately.
   (e) It is the intent of the Legislature to promote the effective
operation of the free market and protect consumers from deceptive
price increases for goods and services by prohibiting debit card
surcharges and encouraging the availability of discounts by those
retailers who wish to offer a lower price for goods and services
purchased by some form of payment other than debit card.
   (f) This section does not apply to charges for payment by credit
card or debit card that are made by an electrical, gas, or water
corporation and approved by the Public Utilities Commission pursuant
to Section 755 of the Public Utilities Code.