79R10789 HLT-D


By:  McCall                                                       H.B. No. 698

Substitute the following for H.B. No. 698:                                    

By:  Vo                                                       C.S.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;
			(G)  financial institution account number or any 
other financial information; or
			(H)  telephone number.                                                
		(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)-(g) 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 $1,000 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.
	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.