HBA-DMD, BTC H.B. 25 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 25
By: Goolsby
Civil Practices
4/26/1999
Committee Report (Amended)



BACKGROUND AND PURPOSE

H.B. 25 addresses Identification Fraud, which occurs when someone illegally
gains enough knowledge about one's person (name, address, social security
number, employer, credit accounts, etc.) to enable a perpetrator to assume
that person's identity, leading to unknown credit accounts, purchases on
existing credit accounts, false insurance claims, and bogus driver's
licenses, etc. Frequently, affected consumers are unaware of the activity
until a lender begins to question the charges, debt collectors begin to
call, or an insurance or criminal investigation ensues.  Identification
Fraud is costly to the affected consumers, government tax agencies, and to
businesses and taxpayers.  

H.B. 25 creates an offense which is a Class A misdemeanor for persons who
use the identifying information of another person with intent to obtain a
benefit fraudulently, or to assist others in obtaining identifying
information to use fraudulently.  H.B. 25 would also allow affected persons
to file suit to recover damages resulting from the fraud.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter D, Chapter 32, Penal Code, by adding Section
32.51, as follows: 

Sec. 32.51. FRAUDULENT USE OF IDENTIFYING INFORMATION.  Specifies that
"identifying information" includes a person's name, address, date of birth,
social security number, and credit card account number. Provides that a
person commits a Class A misdemeanor offense if the person fraudulently
uses identifying information of another person with the intent to acquire a
benefit, or knowingly obtains identifying information to assist a third
person in committing the same offense.  

SECTION 2. Amends Title 6, Civil Practice and Remedies Code, by adding
Chapter 145, as follows: 

CHAPTER 145. CIVIL ACTION FOR FRAUDULENT USE OF 
IDENTIFYING INFORMATION

Sec.145.001. CAUSE OF ACTION.  Authorizes a person who suffers a personal
injury or property damage to bring a cause of action for damages resulting
from conduct described in Sec. 32.51. 

Sec. 145.002. DAMAGES.  Authorizes a person establishing a cause of action
under this chapter to be entitled to actual and exemplary damages and to
reasonable attorney's fees and court costs. 

SECTION 3.  Makes application of this Act prospective.

SECTION 4.  Effective date:  September 1, 1999.

 SECTION 5.  Emergency clause.

EXPLANATION OF AMENDMENTS

Amendment #1

Adds Subsection (d) to proposed Section 32.51, Penal Code, in SECTION 1, to
authorize an actor to be prosecuted under this section or the other law, if
conduct that constitutes an offense under this section also constitutes an
offense under any other law.