BILL NUMBER: SB 1334	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Blakeslee

                        FEBRUARY 24, 2012

   An act to amend Section 1748.1 of the Civil Code, relating to
credit cards.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1334, as introduced, Blakeslee. Credit cards.
   The Song-Beverly Credit Card Act of 1971 generally regulates
credit card transactions. That law prohibits a retailer in any sales,
service, or lease transaction with a consumer imposing a surcharge
on a cardholder who elects to use a credit card in lieu of payment by
cash, check, or similar means. Existing law further provides that
any retailer who willfully violates this prohibition by imposing a
surcharge on a cardholder who elects to use a credit 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 3 times the amount at which
actual damages are assessed.
   This bill would make a technical, nonsubstantive change to these
provisions.
   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 1748.1 of the Civil Code is amended to read:
   1748.1.  (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 credit 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 credit card, provided that the discount is
offered to all prospective buyers.
   (b)  Any   Every    retailer
who willfully violates this section by imposing a surcharge on a
cardholder who elects to use a credit 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 credit
card in lieu of another means of payment for purposes of this
section in a transaction with a retailer if only credit 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 credit 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 credit 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 credit 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.