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. Subtitle Z, Title 3, Finance Code, is amended by 1-6 adding Chapter 277 to read as follows: 1-7 CHAPTER 277. BUSINESS CHECKING ACCOUNTS 1-8 Sec. 277.001. DEFINITIONS. In this chapter: 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. 277.002. ACCOUNT INFORMATION REQUIRED. (a) A 1-23 financial institution shall require, as a condition of opening or 1-24 maintaining a business checking account, that the applicant or 2-1 account holder provide: 2-2 (1) if the business is a sole proprietorship: 2-3 (A) the name of the business owner; 2-4 (B) the physical 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 certificate of incorporation or a 2-11 comparable document and an assumed name certificate, if any. 2-12 (b) The financial institution shall request that the account 2-13 holder inform the institution at least annually of any changes in 2-14 the information the institution is required to obtain under 2-15 Subsection (a). 2-16 Sec. 277.003. DISCLOSURE OF INFORMATION. (a) A financial 2-17 institution may not unreasonably withhold the information described 2-18 by Section 277.002 in response to a written request for the 2-19 information that: 2-20 (1) is made by a person to whom the financial 2-21 institution has returned a dishonored check or draft that was 2-22 issued to the person by a business that maintains a business 2-23 checking account; and 2-24 (2) includes a photocopy of the dishonored check or 2-25 draft. 2-26 (b) A financial institution that assesses a reasonable 2-27 research fee in the regular course of business may assess the fee 3-1 on a person who requests information under this section. 3-2 (c) A financial institution is not liable to an account 3-3 holder or other person for the disclosure of information under this 3-4 section. 3-5 SECTION 2. This Act takes effect September 1, 1999, and 3-6 applies to a business checking account held by a financial 3-7 institution on or after that date, regardless of the date on which 3-8 the account was opened. 3-9 SECTION 3. The importance of this legislation and the 3-10 crowded condition of the calendars in both houses create an 3-11 emergency and an imperative public necessity that the 3-12 constitutional rule requiring bills to be read on three several 3-13 days in each house be suspended, and this rule is hereby suspended. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 2800 was passed by the House on April 30, 1999, by a non-record vote. _______________________________ Chief Clerk of the House I certify that H.B. No. 2800 was passed by the Senate on May 26, 1999, by the following vote: Yeas 30, Nays 0. _______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor