By Driver H.B. No. 3168 75R6824 CLG-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to requiring a financial institution to maintain certain 1-3 information from a business account holder. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Title 16, Revised Statutes, is amended by adding 1-6 Article 353 to read as follows: 1-7 Art. 353. BUSINESS CHECKING ACCOUNTS 1-8 Sec. 1. DEFINITIONS. In this article: 1-9 (1) "Business" means a legal entity, including a 1-10 corporation, partnership, or sole proprietorship, that is formed 1-11 for the purpose of making a profit. 1-12 (2) "Business checking account" means an account at a 1-13 financial institution from which withdrawals may be made by a 1-14 business by check or draft. The term includes a money market 1-15 account, a negotiable order of withdrawal account, or other account 1-16 at a financial institution in which the account holder has check 1-17 writing privileges. 1-18 (3) "Financial institution" means a state or national 1-19 bank, state or federal savings and loan association, state or 1-20 federal savings bank, or state or federal credit union doing 1-21 business in this state. 1-22 Sec. 2. ACCOUNT INFORMATION REQUIRED. (a) A financial 1-23 institution shall require, as a condition of opening or maintaining 1-24 a business checking account, that the applicant or account holder 2-1 provide: 2-2 (1) if the business is a sole proprietorship: 2-3 (A) the name of the business owner; 2-4 (B) the address of the business; 2-5 (C) the home address of the business owner; and 2-6 (D) the driver's license number of the business 2-7 owner or the personal identification card number issued to the 2-8 business owner by the Department of Public Safety; or 2-9 (2) if the business is a corporation or other legal 2-10 entity, a copy of the business's articles of incorporation or a 2-11 comparable document or an assumed name certificate. 2-12 (b) The financial institution shall annually update the 2-13 information the institution is required to obtain under Subsection 2-14 (a) of this section. 2-15 Sec. 3. DISCLOSURE OF INFORMATION. A financial institution 2-16 shall provide the information described by Section 2 of this 2-17 article on request to a person to whom the financial institution 2-18 has returned a dishonored check or draft that was issued to the 2-19 person by a business that maintains a business checking account 2-20 with the financial institution. 2-21 SECTION 2. This Act takes effect September 1, 1997, and 2-22 applies to a business checking account held by a financial 2-23 institution on or after that date, regardless of the date on which 2-24 the account was opened. 2-25 SECTION 3. The importance of this legislation and the 2-26 crowded condition of the calendars in both houses create an 2-27 emergency and an imperative public necessity that the 3-1 constitutional rule requiring bills to be read on three several 3-2 days in each house be suspended, and this rule is hereby suspended.