79R8361 ATP-F
By: Giddings, Gonzalez Toureilles H.B. No. 607
Substitute the following for H.B. No. 607:
By: Bailey C.S.H.B. No. 607
A BILL TO BE ENTITLED
AN ACT
relating to the delivery of blank check forms; providing a civil
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 35.395 to read as follows:
Sec. 35.395. DELIVERY OF CHECK FORM. (a) In this section:
(1) "Addressee" means a person to whom a check form is
sent.
(2) "Check form" means a device for the transmission
or payment of money that:
(A) is not a negotiable instrument under Section
3.104;
(B) if completed would be a check as that term is
described by Section 3.104; and
(C) is printed with information relating to the
financial institution on which the completed check may be drawn.
(3) "Courier" means a business, other than the United
States Postal Service, that delivers parcels for a fee.
(b) If an addressee selects a courier for delivery of a
check form, the signature of the addressee or the addressee's
representative must be obtained on delivery, unless the addressee
specifically notifies the person who prints the check form, or the
person's agent, that the signature of the addressee or the
addressee's representative is not required for delivery. The
notification may be made in writing on the check form order, by
electronic selection if the check forms are ordered using the
Internet, by electronic mail to an address provided to the
addressee by the person who prints the check form or the person's
agent, by recorded oral notice, or by another method reasonably
calculated to effectively communicate the addressee's intent.
(c) A person who prints a check form shall notify the
courier of the check form if the signature of the addressee or the
addressee's representative is required for delivery under
Subsection (b).
(d) A person who violates Subsection (b) or (c) is subject
to a civil penalty of $1,000 for each violation.
(e) A courier who is notified under Subsection (c) that a
signature is required for delivery may not deliver the check form
before obtaining the signature of the addressee or a representative
of the addressee. A courier who violates this subsection is subject
to a civil penalty of $1,000 for each violation.
(f) The attorney general may bring suit to recover a civil
penalty imposed under this section. The attorney general may
recover reasonable expenses incurred in obtaining a civil penalty
under this subsection, including court costs, reasonable
attorney's fees, investigative costs, witness fees, and deposition
expenses.
SECTION 2. This Act takes effect January 1, 2006.