BILL ANALYSIS

Civil Practices Committee

By: Pitts
02-20-95
4-20-95

BACKGROUND

Technology has surpassed statutes in dealing with the handling of
banking instruments.  

PURPOSE

To allow digitized copies of checks to be admissible as evidence in
judicial or administrative proceedings.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends, Subchapter D, Chapter 35, Business and Commerce
Code, as follows:

     Sect. 35.48(a)(1) adds (H) "digitized optical image" to the
list of items of what constitutes business records. Renumbers
subparagraph where appropriate.

     Sect. 35.48(a)(2) adds (E) "digitized optical image" to the
list of items of reproduced items that may serve as a counterpart
of an original business record. Renumbers subparagraph where
appropriate.

SECTION 2. Emergency Clause - Effective Immediately.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute deletes proposed Sect. 35.49, Business and Commerce
Code, from the original. This would delete any reference of using
electronically digitized copies as evidence in a judicial or
administrative proceeding.

The substitute adds the term "digitized optical image" to the list
of business records that serve as a reproduced counterpart of an
original business record.

SUMMARY OF COMMITTEE ACTION

H.B. 995 was considered in public hearing on February 22, 1995. The
following individuals testified in support of H.B. 995: Gregg A.
Bennett, representing State Bank and Trust Company; Karen Neeley,
representing the Independent Bankers Association of Texas; Marvin
E. Singleton, III, representing himself. No one testified in
opposition to or neutrally on the bill. The bill was left pending.
On March 1, 1995, the chair named the following subcommittee
members: Representatives Will Hartnett (Chair), Paul Hilbert and
Zeb Zbranek. The subcommittee considered a complete substitute for
the bill. The substitute was adopted without objection. The bill
was reported favorably as substituted, to the full committee by a
record vote of two ayes, one nay, zero pnv, zero absent. After
being recalled from subcommittee, the bill was considered by the
committee in a public hearing on April 12, 1995. The committee
considered a complete substitute for the bill. The substitute was
adopted without objection. The bill was reported favorably as
substituted with the recommendation that it do pass and be printed,
by a record vote of six ayes, zero nays, zero pnvs with three
absents.