Legislative Session: 80(R)


House Bill 2002

House Author:  Giddings et al.

Effective:  9-1-07

Senate Sponsor:  Fraser

            House Bill 2002 amends the Business & Commerce Code to require the Finance Commission of Texas to adopt rules for the registration of check verification entities and the establishment of an electronic notification system for notification of such entities by financial institutions.  The bill requires a financial institution, upon notification by a customer who is a victim of identify theft, requests that an account be closed, and presents certain documentation relating to the offense, including written authorization for the submission of information to the electronic notification system, to submit that information to the electronic notification system within two business days of receiving the documentation.  The information must include the customer's identifying information, the account number of any account that has been compromised, the financial institution routing number, and the number on any check that has been lost, stolen, or compromised.  The bill requires a check verification entity to maintain reasonable procedures to prevent the acceptance or approval of a check from an account that has been identified in a notification received through the electronic notification system or a customer.