By:  Giddings, Bohac (Senate Sponsor - Ellis)                     H.B. No. 2223
	(In the Senate - Received from the House May 2, 2005; 
May 3, 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 making of a notation on and the processing of a 
forged check by a financial institution.
	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 35.591 to read as follows:
	Sec. 35.591.  NOTATION OF FORGED CHECK.  (a)  In this 
section, "victim of identify theft" means a person who has filed 
with an appropriate law enforcement agency a criminal complaint 
alleging commission of an offense under Section 32.51, Penal Code.
	(b)  If a victim of identity theft closes an account at a 
financial institution as a result of the identity theft, notifies 
the financial institution that the identity theft is the reason for 
closing the account, provides the financial institution with a copy 
of the criminal complaint described by Subsection (a), and requests 
that the financial institution return checks with the notation 
"forgery," the financial institution shall process as forgeries the 
checks received after the customer takes those actions, in 
accordance with the financial institution's customary procedures.
	(c)  A victim of identity theft who requests that a financial 
institution return checks with the notation "forgery" as provided 
by Subsection (b):
		(1)  may not assert that the financial institution is 
liable under Section 4.402 for wrongfully dishonoring a check 
returned after the victim makes the request; and
		(2)  shall hold the financial institution harmless for 
acting in accordance with the victim's request.
	SECTION 2.  This Act takes effect September 1, 2005.                           



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