S.B. 611 78(R)    BILL ANALYSIS


S.B. 611
By: Nelson
Business & Industry
Committee Report (Amended)



BACKGROUND 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.  As proposed,
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. 


RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

SECTION 1.  Amends Chapter 35D, 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 has requested in writing such printing. 

(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.

EFFECTIVE DATE

March 1, 2005.

EXPLANATION OF AMENDMENTS

Creates a new (c) in Section  2 that allows a person described in Section
149.001(b)(1) of the Finance Code to request a hearing before the Credit
Union Commissioner for additional time to comply with this section.