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A BILL TO BE ENTITLED
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AN ACT
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relating to the disclosure of the reason for rejecting a check at |
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the time of rejection. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 35, Business & Commerce |
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Code, is amended by adding Section 35.596 to read as follows: |
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Sec. 35.596. DISCLOSURE OF REASON FOR REJECTION BY CHECK |
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VERIFIER. (a) In this section, "check verifier" has the meaning |
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assigned by Section 20.021(a). |
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(b) At the same time that a check verifier discloses that |
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the verifier has rejected a check, the check verifier shall |
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disclose the specific reason for rejecting the check and provide a |
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clear explanation of that reason. |
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(c) A business that uses a check verifier to verify or |
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guarantee checks accepted by the business for payment shall: |
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(1) disclose to the person whose check has been |
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rejected the reason and the explanation for the rejection given by |
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the verifier, at the same time as the business notifies the person |
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that the person's check has been rejected; and |
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(2) post, on each register at which the public may make |
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a purchase from or payment to the business, a list of reasons the |
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check verifier used by the business may reject a check. |
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(d) A person whose check is rejected based on a negligent |
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act by a check verifier or business may sue the check verifier or |
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business, as applicable, for the actual damages sustained as a |
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result of the rejection of the check. |
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SECTION 2. This Act takes effect September 1, 2007. |