79R3179 ATP-D

By:  Giddings                                                     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.
	(b)  A person who prints a check form and sends the form to an 
addressee must send the check form:
		(1)  using the United States Postal Service; or                        
		(2)  in a manner that requires the signature of the 
addressee or the addressee's representative on delivery, unless the 
addressee specifically requests that the signature of the addressee 
or the addressee's representative not be required for delivery.
	(c)  A person who prints a check form shall notify the 
deliverer of the check form if the signature of the addressee or the 
addressee's representative is required for delivery under 
Subsection (b).
	(d)  An addressee may require a person who prints a check 
form to send a check form by certified mail if the person sends the 
check form using the United States Postal Service.  The person may 
charge the addressee for the cost of sending the check form by 
certified mail.
	(e)  A person who violates Subsection (b) or (c) or an 
addressee's requirement under Subsection (d) is subject to a civil 
penalty of $1,000 for each violation.
	(f)  A deliverer of a check form 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 deliverer of a 
check form who violates this subsection is subject to a civil 
penalty of $1,000 for each violation.
	(g)  The attorney general may bring suit to recover a civil 
penalty imposed under this section.
	SECTION 2.  This Act takes effect September 1, 2005.