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.
* * * * *