By: McCall H.B. No. 698
A BILL TO BE ENTITLED
AN ACT
relating to the disposal of certain business records that contain
personal identifying information; providing a civil penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 35.48, Business &
Commerce Code, is amended to read as follows:
Sec. 35.48. RETENTION AND DISPOSAL OF BUSINESS RECORDS.
SECTION 2. Section 35.48(a), Business & Commerce Code, is
amended by adding Subdivisions (1-a) and (3) to read as follows:
(1-a) "Personal identifying information" means an
individual's first name or initial and last name in combination
with any one or more of the following items:
(A) date of birth;
(B) social security number or other
government-issued identification number;
(C) mother's maiden name;
(D) unique biometric data, including the
individual's fingerprint, voice print, and retina or iris image;
(E) unique electronic identification number,
address, or routing code;
(F) telecommunication access device, including
debit and credit card information; or
(G) financial institution account number or any
other financial information.
(3) "Telecommunication access device" has the meaning
assigned by Section 32.51, Penal Code.
SECTION 3. Section 35.48, Business & Commerce Code, is
amended by adding Subsections (d)-(h) to read as follows:
(d) When a business disposes of a business record that
contains personal identifying information of a customer of the
business, the business shall modify, by shredding, erasing, or
other means, the personal identifying information to make it
unreadable or undecipherable.
(e) A business that does not dispose of a business record of
a customer in the manner required by Subsection (d) is liable for a
civil penalty of up to $500 for each record. The attorney general
may bring an action against the business to:
(1) recover the civil penalty;
(2) obtain any other remedy, including injunctive
relief; and
(3) recover costs and reasonable attorney's fees
incurred in bringing the action.
(f) A business that modifies a record as required by
Subsection (d) in good faith is not liable for a civil penalty under
Subsection (e) if the record is reconstructed, in whole or in part,
through extraordinary means.
(g) Subsection (d) does not require a business to modify a
record if:
(1) the business is required to retain the record
under other law; or
(2) the record is historically significant and:
(A) there is no potential for identify theft or
fraud while the record is in the custody of the business; or
(B) the record is transferred to a professionally
managed historical repository.
(h) Subsection (d) does not apply to:
(1) a financial institution as defined by 15 U.S.C.
Section 6809; or
(2) a covered entity as defined by Section 601.001 or
602.001, Insurance Code.
SECTION 4. This Act applies to the disposal of business
records without regard to whether the records were created before,
on, or after the effective date of this Act.
SECTION 5. This Act takes effect September 1, 2005.