BILL NUMBER: SB 550	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Speier

                        FEBRUARY 18, 2005

   An act to add Section 760 to the Financial Code, relating to
banks.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 550, as introduced, Speier.   Bank account numbers.
   Existing law provides for the regulation of banks by the
Department of Financial Institutions.
   This bill would require a bank to maintain certain procedures if
the bank issues customer account numbers that were previously held by
other customers.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 760 is added to the  Financial Code , to read:

   760.  Banks issuing customer account numbers that were previously
held by other customers shall maintain the following procedures:(a)
In the case of a check that is drawing on a recycled account number,
a bank shall, with a reasonable degree of certainty, match at least
three categories of identifying information within the file
maintained by the bank on the customer with the information provided
on the check. The categories of identifying information may include,
but are not limited to, first and last name, month and date of birth,
driver's license number, place of employment, current residence
address, previous residence address, or social security number.
   (b) At the time an account is opened using a number previously
held by a different customer, a bank shall provide the customer with
a clear and conspicuous written notification of that fact. In the
case of an existing account that is using an account number that was
previously held by a different customer, a bank shall, by January 1,
2007, provide customers with a separate clear and conspicuous written
notification of that fact.