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


Senate Research Center   S.B. 235
78R701 CLG-DBy: Fraser
Business & Commerce
2/26/2003
As Filed


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
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.  As
proposed, S.B. 235 requires that a receipt or other document issued from a
credit card transaction include not more than the last five digits of the
credit card account number.  S.B. 235 also prohibits expiration dates from
being printed on a receipt or other document issued from a credit card
transaction. 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 Chapter 35D, Business & Commerce Code, by adding
Section 35.57, as follows: 

 Sec.  35.57.  BUSINESS RECEIPT CONTAINING CREDIT CARD INFORMATION.  
(a)  Provides that this section does not apply to a transaction where the
sole means of recording a credit card account number on a receipt or
document evidencing the transaction is by handwriting or by an imprint or
copy of the credit card. 

(b)  Prohibits a  person accepting a credit card for the transaction of
business from printing more than the last five digits of the credit
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. 

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, 2007.