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.