SRC-AMY H.B. 2409 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 2409
By: Solomons (Brimer)
Business & Commerce
5/20/2003
Engrossed


DIGEST AND PURPOSE 

A growing number of merchants in Texas utilize the services of check
guarantee or check verification services (check verifiers) to handle
transactions involving checks.  No federal or state law expressly permits
consumers to verify the accuracy of information or to correct inaccurate
information about them that check verifiers use to decide whether to
accept or deny consumers' checks.  H.B. 2409 provides a means for
consumers to obtain and correct information about them held by check
verifiers. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 20.06, Business & Commerce Code, by adding
Subsection (h) to provide that this section applies to a business offering
check verification or check guarantee services in this state. 

SECTION 2.  Amends Chapter 20, Business & Commerce Code, by adding Section
20.11, as follows: 

Sec. 20.11.  CHECK VERIFICATION AND CHECK GUARANTEE SERVICES; DISCLOSURES
TO CONSUMERS.  (a)  Defines "check verifier." 

(b)  Requires a check verifier, on request and proper identification
provided by a consumer, to disclose to the consumer in writing all
information pertaining to the consumer in the check verifier's files at
the time of the request. 

(c)  Prohibits a check verifier from charging a consumer for disclosing
the information required under Subsection (b) if the check verifier has
rejected a check from the consumer in the 30 days prior to the consumer's
request for information.  Authorizes a check verifier otherwise to impose
a reasonable charge on a consumer for the disclosure of information
pertaining to the consumer in an amount not to exceed $8. 

SECTION 3.  Effective date:  September 1, 2003.