79R926 ATP-D

By:  Shapleigh                                                    S.B. No. 71 



A BILL TO BE ENTITLED

AN ACT

relating to the prohibition of certain disclosures of a consumer's 
financial information.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subtitle Z, Title 3, Finance Code, is amended by 
adding Chapter 279 to read as follows:
	CHAPTER 279.  DISCLOSURE OF CONSUMER'S FINANCIAL INFORMATION
	Sec. 279.001.  DEFINITIONS.  In this chapter:                           
		(1)  "Affiliate of a financial institution" means a 
person who controls, is controlled by, or is under common control 
with the financial institution.  In this subdivision, "control" 
means the possession, directly or indirectly, of the power to 
direct or cause the direction of the management and policies of a 
person, whether through the ownership of voting securities, by 
contract, or otherwise.
		(2)  "Consumer" means an individual resident of this 
state, or the legal representative of an individual resident of 
this state, who obtains a financial product or service for 
personal, family, or household purposes.
		(3)  "Financial information" means information, other 
than information that a financial institution has a reasonable 
basis to believe is lawfully made available to the general public, 
obtained by a financial institution in connection with providing a 
financial product or service to a consumer, including:
			(A)  information provided on an application for a 
loan, credit card, or other financial product or service;
			(B)  account balance information;                                     
			(C)  payment or overdraft history;                                    
			(D)  credit or debit purchase information;                            
			(E)  information that indicates whether an 
individual is or has been a consumer of a financial institution;
			(F)  information obtained  in connection with 
collecting on or servicing a loan; or
			(G)  information from a consumer report.                              
		(4)  "Financial institution" has the meaning assigned 
by Section 201.101.
	Sec. 279.002.  DISCLOSURE OF FINANCIAL INFORMATION FOR 
MARKETING PURPOSES PROHIBITED.  A financial institution may not 
disclose a consumer's financial information to another person, 
other than an affiliate of the financial institution, for marketing 
purposes.
	Sec. 279.003.  LIABILITY.  A person is liable to a consumer 
for an intentional violation of this chapter in an amount equal to 
the greater of:
		(1)  $1,000; or                                                        
		(2)  actual damages caused by the disclosure of the 
financial information.
	SECTION 2.  This Act takes effect September 1, 2005.