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A BILL TO BE ENTITLED
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AN ACT
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relating to prohibiting the use or retention of zip codes obtained |
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by businesses in verifying the identity of customers; providing a |
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civil penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 505.003, Business & Commerce Code, is |
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amended to read as follows: |
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Sec. 505.003. RETENTION OR USE OF ZIP CODE AFTER |
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TRANSACTION COMPLETED PROHIBITED; CIVIL PENALTY. (a) A business |
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that obtains a customer's zip code under Section 505.002 may not, |
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after the purchase of the good or service has been completed: |
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(1) retain the zip code in any form; or |
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(2) use or cause the zip code to be used for any |
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purpose, without regard to whether the zip code is linked or not |
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linked to the identity of the customer [after the purchase of the
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good or service has been completed]. |
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(b) A business that violates this section is liable for a |
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civil penalty in an amount of not less than $500 or more than $1,000 |
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for each act of violation. |
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(c) The attorney general or a county or district attorney |
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may bring an action in the name of the state to recover a civil |
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penalty under this section. |
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SECTION 2. Section 505.003, Business & Commerce Code, as |
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amended by this Act, applies only to a zip code obtained by a |
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business on or after the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2011. |