By:  Giddings, Gonzalez Toureilles                                H.B. No. 607
 
    (Senate Sponsor - Ellis)                                                 
	(In the Senate - Received from the House April 14, 2005; 
April 18, 2005, read first time and referred to Committee on 
Business and Commerce; May 21, 2005, reported adversely, with 
favorable Committee Substitute by the following vote:  Yeas 6, 
Nays 0; May 21, 2005, sent to printer.)


COMMITTEE SUBSTITUTE FOR H.B. No. 607                                    By:  Lucio


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 any entity that delivers parcels for 
a fee.       
		(4)"Check form Provider" means a business that provides 
check forms to a customer for a personal or business account.
	(b)  When an addressee requests of a check form provider, 
courier delivery of a check form with signature required, and such 
service is available in the delivery area of the addressee, the 
entity making the arrangement for courier delivery pursuant to the 
request of the addressee must provide the addressee with the option 
to require that a signature of the addressee, or the representative 
of the addressee, be obtained on delivery. The option to require 
such a signature may be provided on a printed check form order form, 
on an electronic check form order form where a check form orders are 
offered on the Internet, to an electronic mail address established 
for such purpose by the entity making the offer, or by another 
method reasonably calculated to effectively communicate the 
addressee's intent.
	(c)  An entity making the arrangement for the courier 
delivery of a check form to an addressee pursuant to the provisions 
of Subsection (b) shall  notify the courier of the check form that 
the signature of the addressee is required for delivery under 
Subsection (b).
	(d)  If the addressee suffers a pecuniary loss through the 
use of check forms stolen at the time of delivery to the addressee, 
a civil penalty of up to a maximum amount of $1,000 per delivery may 
be levied upon-
		(1)  An entity that violates subsection (b) or (c), or                 
		(2)  A courier who is properly notified under 
Subsection (c) that a signature is required for delivery, and 
delivers the check form without obtaining a signature of the 
addressee or a representative of the addressee.
	(e)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 June 1, 2006.                          



* * * * *