By:  Giddings (Senate Sponsor - Ellis)                            H.B. No. 1855
	(In the Senate - Received from the House April 22, 2005; 
April 25, 2005, read first time and referred to Committee on 
Business and Commerce; May 18, 2005, reported favorably by the 
following vote:  Yeas 6, Nays 0; May 18, 2005, sent to printer.)


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 except for the checking account number or bank 
routing transit number 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.
	(f)  This section does not apply to a financial institution 
as defined by 31 U.S.C. Section 5312(a)(2), as amended.
	SECTION 2.  This Act takes effect September 1, 2005.                           



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