SRC-AMY S.B. 611 78(R)    BILL ANALYSIS


Senate Research CenterS.B. 611
By: Nelson
Business & Commerce
7/14/2003
Enrolled

DIGEST AND PURPOSE 

According to the Justice Department, as many as 700,000 people a year may
be victims of identity theft, and Federal Trade Commission data indicates
nearly 86,000 individuals filed identity theft complaints in 2001.
Meridian Research projects that identity theft will cost the financial
institution sector $8 billion by 2006.  Social security numbers are
vulnerable pieces of information used in identity theft.  S.B. 611
prohibits the display of an individual's social security number on any
device required to access products or services and provides a civil
penalty for a violation.  This bill exempts the collection, use, or
release of a social security number for internal verifications or as
required by law.  S.B. 611 also sets forth the procedure for applying for
an extension for coming into compliance with this Act. 

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 and Commerce Code,
by adding Section 35.58, as follows: 

Sec. 35.58.  CONFIDENTIALITY OF SOCIAL SECURITY NUMBER.  (a) Prohibits a
person from printing an individual's social security number on any device
required to access a product or service provided by that person unless the
individual requests such printing in writing.  Prohibits a person from
requiring such a request as a condition for receipt of or access to a
product or service provided by the person. 

(b) Provides that a violation of this section carries a civil penalty not
to exceed $500 for each violation.  Authorizes the attorney general, or
the prosecuting attorney in the county in which the violation takes place,
to recover the penalty, or restrain or enjoin a person from violating this
section, by legal means. 

(c) Exempts from this section the collection, use, or release of a social
security number required by state or federal law or for internal
verification of administrative purposes. 

SECTION 2.(a)  Effective date: March 1, 2005.

(b) Makes application of this Act prospective to March 1, 2005.

(c) Authorizes a person described in Section 149.001(b)(1), Finance Code,
to request a hearing before the credit union commissioner (commissioner)
for additional time to comply with this Act.  Requires the commissioner,
if making a determination that the person has made a good faith attempt
but is unable to comply with the provisions in this Act by March 1, 2005,
to issue an order for the person to take the required actions to come into
compliance with this Act within a time frame of up to one year.  Provides
that any person not provided additional time to comply will be subject to
all provisions of this Act as of the effective date. Provides that any
hearing conducted and all related materials are deemed  confidential.
Requires any hearing request to be made not less than 60 days prior to
March 1, 2005.