By McCall H.B. No. 54 74R58(1) DWS A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to sale by a merchant of information about a customer. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subchapter D, Chapter 35, Business & Commerce 1-5 Code, is amended by adding Section 35.43 to read as follows: 1-6 Sec. 35.43. MERCHANT SALE OF CUSTOMER INFORMATION. (a) In 1-7 this section: 1-8 (1) "Customer information" means information about a 1-9 customer that a merchant obtains in connection with a sale or lease 1-10 of goods or services at the merchant's location. 1-11 (2) "Merchant" means a person in the business of 1-12 selling or leasing goods or services from a fixed location. 1-13 (b) Except as provided by Subsection (d), a merchant may not 1-14 sell: 1-15 (1) a customer's driver's license number; 1-16 (2) customer information obtained solely from the 1-17 customer's payment by personal check or credit card; 1-18 (3) customer information that the customer requests 1-19 that the merchant not sell; or 1-20 (4) any other customer information, unless notice is 1-21 given as provided by Subsection (c). 1-22 (c) A merchant may sell customer information, except 1-23 customer information described by Subsections (b)(1)-(3), if the 1-24 customer that the information concerns has been given prior notice 2-1 of the sale. A merchant may give notice by any reasonable method, 2-2 including conspicuous posting at the merchant's location of a sign 2-3 containing the notice. 2-4 (d) This section does not apply to: 2-5 (1) customer information obtained for the purpose of 2-6 extending credit; 2-7 (2) customer information obtained from a governmental 2-8 body, as defined by Section 552.003, Government Code; 2-9 (3) a sale of information concerning a check or credit 2-10 card transaction if the sale of the information is incidental to 2-11 the sale or other disposition of accounts receivable; or 2-12 (4) a sale of customer information to the purchaser of 2-13 the merchant's business or a retail outlet of the merchant's 2-14 business. 2-15 (e) A merchant who violates this section is liable to the 2-16 customer that the information concerns for damages of $100, court 2-17 costs, and reasonable attorney's fees. An action under this 2-18 section may be brought only in a county in which the merchant's 2-19 location from which the customer information was obtained is 2-20 located. 2-21 SECTION 2. This Act takes effect September 1, 1995. 2-22 SECTION 3. The importance of this legislation and the 2-23 crowded condition of the calendars in both houses create an 2-24 emergency and an imperative public necessity that the 2-25 constitutional rule requiring bills to be read on three several 2-26 days in each house be suspended, and this rule is hereby suspended.