Bill expanding definition of identity theft sent to Texas governor

Texas HB 2697 by Rep. Morgan Meyer (R-Dallas) and Sen. Judith Zaffirini (D-Laredo), which passed the House 138–1 in April, passed the Senate 31–0, and was sent to Gov. Greg Abbott on May 15.

The bill expands the definition of identity theft to include effective consent. The identity theft statutes would then apply to coerced debt, which results from financial fraud in a domestic situation. The legal definition of "effective consent" is consent by a person legally authorized to act for the owner, but only if it is not induced by force, threat, or fraud.

The Business and Commerce Code sec. 502.001 requires a restaurant or bar owner to prominently display a sign stating that it is a state-jail felony to obtain, possess, transfer, or use a customer's debit or credit card number without the customer's consent. These signs would have to be modified to include “effective consent.” The change could make prosecution of debit or credit card fraud more difficult due to the vague definition of "effective consent."

Contact Jeff Huffman, Texas Credit Union Association, at 469-385-6488 or jhuffman@txcua.coop for more information.