HBA-ATS, NLM H.B. 2800 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2800 By: Driver Financial Institutions 6/16/1999 Enrolled BACKGROUND AND PURPOSE The holder of a dishonored check written on a business checking account may be unable to locate the person who wrote the check if the name of the business owner is not on the check, the address on the check is not a physical address, or the business owner or business has moved from the address listed on the check. Prior to the 76th Legislature, it was unclear whether the financial institution that returned the check had an obligation to provide to the holder of the dishonored check any of this information in its possession. H.B. 2800 requires a financial institution to maintain certain information on all business checking accounts, including the name, home address, and driver's license number of the business owner and the address of the business, if the business is a sole proprietorship. If requested in writing, the financial institution is prohibited from unreasonably withholding this information from a person to whom it returned a dishonored check written by a business that maintains a business checking account with that institution. 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 Subtitle Z, Title 3, Finance Code, by adding Chapter 277, as follows: CHAPTER 277. BUSINESS CHECKING ACCOUNTS Sec. 277.001. DEFINITIONS. Defines "business," "business checking account," and "financial institution." Sec. 277.002. ACCOUNT INFORMATION REQUIRED. (a) Requires a financial institution to require, as a condition of opening or maintaining a business checking account, that the applicant or account holder provide: _if the business is a sole proprietorship, the name of the business owner, the physical address of the business, the home address of the business owner, and the driver's license number or the personal identification card number of the business owner by the Department of Public Safety; or _if the business is a corporation or other legal entity, a copy of the business's certificate of incorporation or a comparable document and an assumed name certificate, if any. (b) Requires the financial institution to request that the account holder inform the institution at least annually of any changes in the information the institution is required to obtain under this section. Sec. 277.003. DISCLOSURE OF INFORMATION. Prohibits a financial institution from unreasonably withholding the information described by Section 277.002 in response to a written request for certain information. Authorizes a financial institution that assesses a reasonable research fee in the regular course of business to assess the fee on a person who requests information under this section. Provides that a financial institution is not liable to an account holder or other person for the disclosure of information under this section. SECTION 2. Effective date: September 1, 1999. Makes application of this Act prospective. SECTION 3. Emergency clause.