By Hupp                                                H.B. No. 307
         77R307 JD-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to disclosure of personal information from motor vehicle
 1-3     records.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 730.007(a), Transportation Code, is
 1-6     amended to read as follows:
 1-7           (a)  Personal information obtained by an agency in connection
 1-8     with a motor vehicle record may be disclosed to any requestor by an
 1-9     agency if the requestor:
1-10                 (1)  provides the requestor's name and address and any
1-11     proof of that information required by the agency; and
1-12                 (2)  represents that the use of the personal
1-13     information will be strictly limited to:
1-14                       (A)  use by:
1-15                             (i)  a government agency, including any
1-16     court or law enforcement agency, in carrying out its functions; or
1-17                             (ii)  a private person or entity acting on
1-18     behalf of a government agency in carrying out the functions of the
1-19     agency;
1-20                       (B)  use in connection with a matter of:
1-21                             (i)  motor vehicle or motor vehicle
1-22     operator safety;
1-23                             (ii)  motor vehicle theft;
1-24                             (iii)  motor vehicle product alterations,
 2-1     recalls, or advisories;
 2-2                             (iv)  performance monitoring of motor
 2-3     vehicles, motor vehicle parts, or motor vehicle dealers;
 2-4                             (v)  motor vehicle market research
 2-5     activities, including survey research; or
 2-6                             (vi)  removal of nonowner records from the
 2-7     original owner records of motor vehicle manufacturers;
 2-8                       (C)  use in the normal course of business by a
 2-9     legitimate business or an agent, employee, or contractor of the
2-10     business, but only:
2-11                             (i)  to verify the accuracy of personal
2-12     information submitted by the individual to the business or an
2-13     agent, employee, or contractor of the business; and
2-14                             (ii)  if the information as submitted is
2-15     not correct or is no longer correct, to obtain the correct
2-16     information, for the sole purpose of preventing fraud by, pursuing
2-17     a legal remedy against, or recovering on a debt or security
2-18     interest against the individual;
2-19                       (D)  use in conjunction with a civil, criminal,
2-20     administrative, or arbitral proceeding in any court or government
2-21     agency or before any self-regulatory body, including service of
2-22     process, investigation in anticipation of litigation, execution or
2-23     enforcement of a judgment or order, or under an order of any court;
2-24                       (E)  use in research or in producing statistical
2-25     reports, but only if the personal information is not published,
2-26     redisclosed, or used to contact any individual;
2-27                       (F)  use by an insurer or insurance support
 3-1     organization, or by a self-insured entity, or an agent, employee,
 3-2     or contractor of the entity, in connection with claims
 3-3     investigation activities, antifraud activities, rating, or
 3-4     underwriting;
 3-5                       (G)  use in providing notice to an owner of a
 3-6     towed or impounded vehicle;
 3-7                       (H)  use by a licensed private investigator
 3-8     agency or licensed security service for a purpose permitted under
 3-9     this section;
3-10                       (I)  use by an employer or an agent or insurer of
3-11     the employer to obtain or verify information relating to a holder
3-12     of a commercial driver's license that is required under 49 U.S.C.
3-13     Chapter 313;
3-14                       (J)  use in connection with the operation of a
3-15     private toll transportation facility;
3-16                       (K)  use for bulk distribution for surveys,
3-17     marketing, or solicitations, but only if the person who is the
3-18     subject of the record provides, in a manner prescribed by the
3-19     agency, written consent to the disclosure [the agency has
3-20     implemented procedures to ensure that]:
3-21                             [(i)  persons are provided an opportunity,
3-22     in a clear and conspicuous manner, to opt out and prohibit those
3-23     uses; and]
3-24                             [(ii)  the information will be used,
3-25     rented, or sold solely for bulk distribution for surveys,
3-26     marketing, or solicitations, and that surveys, marketing, or
3-27     solicitations will not be directed at any individual who has timely
 4-1     requested that the material not be directed at that individual];
 4-2     and
 4-3                       (L)  use for any other purpose specifically
 4-4     authorized by law that relates to the operation of a motor vehicle
 4-5     or to public safety.
 4-6           SECTION 2. Section 730.008(a), Transportation Code, is
 4-7     amended to read as follows:
 4-8           (a)  Personal information obtained by an agency in connection
 4-9     with a motor vehicle record that is contained in an individual
4-10     record may be disclosed to a requestor without regard to intended
4-11     use only if the agency [Department of Public Safety] has obtained
4-12     from the person who is the subject of the record written consent to
4-13     the disclosure, in a manner prescribed by the agency[:]
4-14                 [(1)  provided, in a clear and conspicuous manner on
4-15     forms for issuance or renewal of an operator's or driver's license,
4-16     registration, title, or identification document, notice that
4-17     personal information collected by the Department of Public Safety
4-18     may be disclosed to any person making a request for an individual
4-19     record; and]
4-20                 [(2)  provided in a clear and conspicuous manner on
4-21     that form an opportunity for each person who is the subject of the
4-22     record to prohibit that disclosure].
4-23           SECTION 3. Section 730.009, Transportation Code, is amended
4-24     to read as follows:
4-25           Sec. 730.009.  CONSENT TO [REQUESTS TO PROHIBIT] DISCLOSURE.
4-26     Each agency shall distinguish between the consent of [a request by]
4-27     a person under Section 730.008 to [prohibit] disclosure of personal
 5-1     information in the person's individual record and the consent of a
 5-2     person [a request] under Section 730.007(a)(2)(K) [by a person] to
 5-3     [prohibit] disclosure of that information.
 5-4           SECTION 4. This Act takes effect September 1, 2001.