H.B. No. 853




AN ACT

relating to the return of merchandise; 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 35.581 to read as follows:
	Sec. 35.581.  (a)  A merchant or a third party under contract 
with a merchant who requires a consumer returning an item of 
merchandise to provide the consumer's driver's license or social 
security number may use the number or numbers provided by the 
consumer solely for identification purposes if the consumer does 
not have a valid receipt for the item being returned and is seeking 
a cash, credit, or store credit refund.
	(b)  A merchant or third party under contract with a merchant 
may not disclose a consumer's driver's license or social security 
number to any other merchant or third party not involved in the 
initial transaction.
	(c)  A merchant or third party under contract with a merchant 
may only use a consumer's driver's license or social security number 
to monitor, investigate, or prosecute fraudulent return of 
merchandise.
	(d)  A merchant or third party under contract with a merchant 
shall destroy or arrange for the destruction of records containing 
the consumer's driver's license or social security number at the 
expiration of six months from the date of the last transaction.
	(e)  A person who violates this section is liable to the 
state for a civil penalty in an amount not to exceed $500 for each 
violation.  The attorney general or the prosecuting attorney in the 
county in which the violation occurs may bring suit to recover the 
civil penalty imposed under this section.
	(f)  The attorney general may bring an action in the name of 
the state to restrain or enjoin a person from violating this 
section.
	SECTION 2.  Section 35.581, Business & Commerce Code, as 
added by this Act, applies only to an item of merchandise that is 
returned on or after the effective date of this Act.
	SECTION 3.  This Act takes effect September 1, 2005.                           




______________________________              ______________________________
 
   President of the Senate                               Speaker of the House      

	I certify that H.B. No. 853 was passed by the House on April 
29, 2005, by a non-record vote; and that the House concurred in 
Senate amendments to H.B. No. 853 on May 27, 2005, by a non-record 
vote.

                                                  ______________________________
                                                     Chief Clerk of the House   

	
I certify that H.B. No. 853 was passed by the Senate, with 
amendments, on May 25, 2005, by the following vote:  Yeas 31, Nays 
0.

                                                  ______________________________
                                                      Secretary of the Senate   



APPROVED: __________________                                                
 
                Date                                                         




 
         __________________                                              
 
              Governor