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78R9928 JSA-D


By:  Hupp, Rodriguez, Dukes, Miller, Naishtat,                    H.B. No. 1026
 
    et al.                                                                   


A BILL TO BE ENTITLED

AN ACT

relating to regulating the use of social security numbers by 
institutions of higher education.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter Z, Chapter 51, Education Code, is 
amended by adding Section 51.981 to read as follows:
	Sec. 51.981.  USE OF STUDENT'S SOCIAL SECURITY NUMBER.  (a)  
In this section:
		(1)  "Institution of higher education" means:                          
			(A)  an institution of higher education as defined 
by Section 61.003; or
			(B)  a private or independent institution of 
higher education as defined by Section 61.003.
		(2)  "Coordinating board" means the Texas Higher 
Education Coordinating Board.
	(b)  An institution of higher education may not:                        
		(1)  use a student's social security number, or another 
number that includes consecutively four or more consecutive digits 
of a student's social security number, as the student's primary 
student identification number;
		(2)  print or include in electronic or coded form a 
student's social security number on a student's identification 
card, library card, or other card or document required for a student 
to use or access services, information, or facilities;
		(3)  require a student, former student, or applicant 
for admission to the institution to use or transmit the 
individual's social security number over the telephone or Internet 
to obtain information or access services, unless the connection is 
secure or the number is encrypted in a manner approved by rule of 
the coordinating board;
		(4)  post or display a student or former student's 
social security number, with or without the individual's name, in 
any place or manner accessible to the public or to students or 
personnel of the institution generally; or
		(5)  include the social security number of a student, 
former student, or applicant for admission to the institution in 
any information that is mailed to the student, former student, or 
applicant.
	(c)  This section does not prohibit an institution of higher 
education from:
		(1)  requiring a student or applicant for admission to 
the institution to disclose the individual's social security number 
to the institution in person or in an application;
		(2)  maintaining a confidential record of a student's 
social security number if the institution:
			(A)  holds the social security number in a secure 
storage facility or location; and
			(B)  provides for limited access to the facility 
or location by approved personnel only;
		(3)  using social security numbers to comply with state 
or federal law; or
		(4)  disclosing a student's social security number with 
the student's express consent to enable the student to participate 
in a program or activity conducted by another person who requires 
disclosure of the student's social security number.
	(d)  The coordinating board may adopt rules for the 
administration of this section.  The coordinating board by rule may 
permit institutions of higher education to use a student's social 
security number in a manner otherwise prohibited by this section 
that the coordinating board determines is necessary to enable an 
institution to carry out its mission or programs effectively.  In a 
rule adopted under this subsection, the coordinating board shall 
attempt to minimize the risk of disclosure of a student's social 
security number to unauthorized persons.
	(e)  An institution of higher education must be in compliance 
with this section and any rules of the coordinating board adopted 
under this section not later than September 1, 2007.
	(f)  If an institution of higher education is not in 
compliance with this section and the rules of the coordinating 
board as required by Subsection (e) in an academic year:
		(1)  the institution is ineligible to receive 
additional TEXAS grant funding through reallocation for that year; 
and
		(2)  the amount of TEXAS grant funds allocated to the 
institution for the following academic year is one-half of the 
amount for which the institution would otherwise be eligible.
	(g)  If the coordinating board determines that an 
institution of higher education is not in compliance with this 
section and the rules of the coordinating board as required by 
Subsection (e) in an academic year, the coordinating board shall 
notify the president of the institution in writing of that 
determination and of the sanctions to be imposed under Subsection 
(f).  Not later than the 30th day after the date the notice is 
delivered, the president of the institution in the manner stated in 
the notice may request a hearing before the commissioner of higher 
education to show cause why the sanctions should not be imposed.  
The determination of the commissioner after the hearing is final 
and may not be appealed.
	SECTION 2.  This Act takes effect September 1, 2003.