SRC-AMY S.B. 235 78(R)    BILL ANALYSIS


Senate Research CenterS.B. 235
By: Fraser
Business & Commerce
6/4/2003
Enrolled
DIGEST AND PURPOSE      

Currently, there is no Texas law that addresses protection of credit card
numbers through the regulation of credit card receipts. Stealing a credit
or debit card number is the easiest way to commit identity fraud, an issue
that affects more than 600,000 people annually and accounted for 42
percent of all Federal Trade Commission consumer fraud complaints in 2001.
S.B. 235 requires that a receipt or other document issued from a credit or
debit card transaction include not more than the last four digits of the
account number.  S.B. 235 also prohibits expiration dates from being
printed on a receipt or other document issued from a credit card  or debit
card transaction and provides for a civil penalty not to exceed $500 a
month for violating these requirements. S.B. 235 requires a purveyor of
cash registers and other similar machines to notify its customers about
the above-mentioned requirements. These restrictions are aimed at
thwarting identity theft. 

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 Subchapter D, Chapter 35, Business & Commerce Code, by
adding Section 35.58, as follows: 

Sec.  35.58.  BUSINESS RECEIPT CONTAINING CREDIT CARD OR DEBIT CARD
INFORMATION.  (a)  Provides that this section does not apply to a
transaction where the sole means of recording a credit or debit card
account number on a receipt or document evidencing the transaction is by
handwriting or by an imprint or copy of the credit or debit card. 

(b)  Prohibits a  person accepting a credit or debit card for the
transaction of business from printing more than the last four digits of
the credit or debit account number or the month and year of the card's
expiration date on any document that evidences the transaction and that is
provided to a cardholder. 

(c) Requires a person who provides, leases, or sells cash registers, or
other machines used to print receipts or other documents that evidence
credit or debit card transactions, to provide a notice of the requirements
of this section to the customer. 

(d) Prohibits a court from certifying an action brought under this section
as a class action. 

(e) Provides that a violation of Subsection (b) carries a liability for a
state civil penalty not to exceed $500 for each calendar month during
which the violation occurs.  Prohibits  the penalty from being imposed for
more than one violation in a month.  Authorizes the attorney general or
prosecuting attorney in the county in which the violation occurs to bring
suit to recover the civil penalty. 

(f) Authorizes the attorney general to bring an action in the name of the
state to restrain or enjoin a person from violating Subsection (b) 
 
SECTION 2.  (a)  Effective date:  September 1, 2003.

(b)  Provides that the application of this Act to any cash register or
machine placed in operation after August 31, 2003, will apply only to
receipts or documents printed after August 31, 2004. 

 (c)  Provides that with respect to a cash register or machine placed in
operation before  
September 1, 2003, this Act applies only to receipts or documents printed
after December 31, 2005.