H.B. No. 2409




AN ACT

relating to the disclosure of certain information held by a 
business offering check verification or check guarantee services.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 20.06, Business & Commerce Code, is 
amended by adding Subsection (h) to read as follows:
	(h)  This section applies to a business offering check 
verification or check guarantee services in this state.
	SECTION 2.  Chapter 20, Business & Commerce Code, is amended 
by adding Section 20.11 to read as follows:
	Sec. 20.11.  CHECK VERIFICATION AND CHECK GUARANTEE 
SERVICES; DISCLOSURES TO CONSUMERS.  (a)  In this section, "check 
verifier" means any business offering check verification or check 
guarantee services in this state.
	(b)  On request and proper identification provided by a 
consumer, a check verifier shall disclose to the consumer in 
writing all information pertaining to the consumer in the check 
verifier's files at the time of the request, including:
		(1)  the criteria used by the check verifier to reject a 
check from the consumer;
		(2)  a set of instructions describing how information 
is presented on the check verifier's written disclosure of the 
consumer file; and
		(3)  a toll-free number at which personnel are 
available to consumers during normal business hours for use in 
resolving a dispute if the consumer submits a written dispute to the 
check verifier.
	(c)  A check verifier may not charge 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.  A check verifier 
may otherwise 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.  This Act takes effect September 1, 2003.                           




______________________________              ______________________________
 
   President of the Senate                               Speaker of the House      

	I certify that H.B. No. 2409 was passed by the House on April 
25, 2003, by a non-record vote.

                                                  ______________________________
                                                     Chief Clerk of the House   

	I certify that H.B. No. 2409 was passed by the Senate on May 
28, 2003, by the following vote:  Yeas 31, Nays 0.

                                                  ______________________________
                                                     Secretary of the Senate    



APPROVED:  _____________________                                            
 
                   Date                                                      




 
          _____________________                                          
 
                 Governor