79R8044 HLT-D


By:  Giddings                                                     H.B. No. 1855



A BILL TO BE ENTITLED

AN ACT

relating to the deletion of certain electronic records concerning a 
customer who issues a check; 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 35.62 to read as follows:
	Sec. 35.62.  DELETION OF CERTAIN ELECTRONIC RECORDS 
CONCERNING A CUSTOMER WHO ISSUES A CHECK.  (a)  This section applies 
only to a business that accepts checks from customers in the 
ordinary course of business.
	(b)  A business shall delete any electronic record 
indicating that a customer has issued a dishonored check or any 
other information on which the business bases a refusal to accept a 
check from a customer not later than the 30th day after the date:
		(1)  the customer and the business agree that the 
information contained in the electronic record is incorrect; or
		(2)  the customer presents to the business:                            
			(A)  a report filed by the customer with a law 
enforcement agency stating that the dishonored check was 
unauthorized; and
			(B)  a written notice from the customer that the 
dishonored check was unauthorized.
	(c)  A business that violates Subsection (b) is liable to the 
state for a civil penalty of up to $1,000.  The attorney general may 
sue to collect the penalty.
	(d)  The attorney general may recover reasonable expenses 
incurred in obtaining a civil penalty under Subsection (c), 
including court costs, reasonable attorney's fees, investigative 
costs, witness fees, and deposition expenses.
	(e)  In this section, "law enforcement agency" has the 
meaning assigned by Article 59.01, Code of Criminal Procedure.
	SECTION 2.  This Act takes effect September 1, 2005.                           


COMMITTEE AMENDMENT NO. 1
	Amend House Bill No. 1855 as follows:                                          
	On Page 2, between Lines 7 and 8, insert a new subsection (f) 
to read as follows:
	"(f)  This section does not apply to a financial institution 
as defined by 31 U.S.C. Section 5312(a)(2), as amended."

                                                                        Elkins