By Hupp                                                H.B. No. 241
         77R279 CLG-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a request for disclosure of an individual's social
 1-3     security number made by a business; providing a civil penalty.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Chapter 35, Business & Commerce Code, is amended
 1-6     by adding Subchapter J to read as follows:
 1-7             SUBCHAPTER J.  DISCLOSURE OF SOCIAL SECURITY NUMBER
 1-8           Sec. 35.151.  DEMAND PROHIBITED. A business may not refuse to
 1-9     provide a good or service to an individual or deny or refuse to
1-10     exercise a right or privilege of an individual solely because the
1-11     individual refuses to furnish a social security number that is not
1-12     required to be furnished by law or court order.
1-13           Sec. 35.152.  NOTICE ON REQUEST. A business that requests a
1-14     social security number from an individual shall notify the
1-15     individual:
1-16                 (1)  whether furnishing the social security number is
1-17     voluntary or mandatory under law, and if mandatory, the business
1-18     shall provide to the individual the citation to the law; and
1-19                 (2)  of the purpose for which the social security
1-20     number is to be used.
1-21           Sec. 35.153.  CIVIL PENALTY; INJUNCTION. (a)  A business that
1-22     violates Section 35.151 is subject to a civil penalty in an amount
1-23     not to exceed $1,000 for each violation.
1-24           (b)  A business that violates Section 35.152 is subject to a
 2-1     civil penalty in an amount not to exceed $500 for the first
 2-2     violation or $1,000 for a second or subsequent violation.
 2-3           (c)  The attorney general may institute and conduct a suit in
 2-4     the name of the state to recover the civil penalty, for injunctive
 2-5     relief, or both.
 2-6           Sec. 35.154.  PRIVATE CAUSE OF ACTION. (a)  An individual
 2-7     injured by a violation or threatened violation of this subchapter
 2-8     may bring an action to enjoin the violation or threatened
 2-9     violation, to recover damages arising from the violation, or both. 
2-10           (b)  A plaintiff prevailing in the action is entitled to
2-11     recover the greater of the plaintiff's actual damages or $50 for
2-12     each violation.
2-13           (c)  If the court determines the violation results from
2-14     wilful or knowing conduct, the court may award the individual
2-15     punitive damages in an amount not to exceed $1,000 for each
2-16     violation.
2-17           (d)  The court may award reasonable attorney's fees to a
2-18     prevailing plaintiff in the action.
2-19           Sec. 35.155.  NO LIABILITY IF VIOLATION RESULTS FROM BONA
2-20     FIDE ERROR. A person is not liable under this subchapter if the
2-21     person shows by a preponderance of evidence that the violation
2-22     resulted from a bona fide error notwithstanding the maintenance of
2-23     procedures reasonably adopted to avoid such a violation.
2-24           SECTION 2. This Act takes effect September 1, 2001.