78R7444 RCJ-D

By:  Carona                                                       S.B. No. 1133



A BILL TO BE ENTITLED

AN ACT

relating to automatic withdrawals by electronic funds transfer from 
a person's account with a financial institution; providing a 
criminal penalty.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter D, Chapter 35, Business & Commerce 
Code, is amended by adding Section 35.58 to read as follows:
	Sec. 35.58.  (a)  In this section, "financial institution" 
means a state or national bank, state or federal savings and loan 
association, state or federal savings bank, or state or federal 
credit union doing business in this state.
	(b)  A third party who is providing goods or services to a 
consumer and is authorized by the consumer to make automatic 
withdrawals by electronic funds transfer from the consumer's 
account with a financial institution commits an offense if the 
third party receives written notification from the consumer 
revoking the authorization and the third party continues to make 
automatic withdrawals from the account.
	(c)  An offense under this section is a Class B misdemeanor.            
	SECTION 2.  This Act takes effect September 1, 2003.