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A BILL TO BE ENTITLED
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AN ACT
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relating to civil liability for the breach of security of certain |
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computerized data containing sensitive personal information. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 48, Business & Commerce |
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Code, as added by Chapter 294, Acts of the 79th Legislature, Regular |
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Session, 2005, is amended by adding Section 48.204 to read as |
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follows: |
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Sec. 48.204. STRICT LIABILITY FOLLOWING BREACH OF SECURITY |
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OF CERTAIN COMPUTERIZED DATA. (a) In this section, "breach of |
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system security" has the meaning assigned by Section 48.103, |
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including the exception provided by Section 48.103(a) for the good |
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faith acquisition of sensitive personal information by an employee |
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or agent of the person maintaining the information. |
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(b) A public or private entity that maintains computerized |
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data that includes sensitive personal information is, following any |
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breach of system security of that data, strictly liable to each |
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individual whose sensitive personal information was acquired by an |
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unauthorized person. |
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(c) The amount of liability to each individual described by |
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Subsection (b) is: |
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(1) the amount of actual damages sustained by the |
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individual as a result of the breach of system security; |
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(2) statutory damages in the amount of $1,000; and |
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(3) an amount necessary to cover the costs charged by a |
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consumer reporting agency, as that term is defined by Section |
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20.01, for monitoring the individual's consumer credit information |
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for the two-year period following the date of the breach of system |
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security. |
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(d) An individual described by Subsection (b) is also |
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entitled to recover any court costs and reasonable attorney's fees |
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incurred in seeking damages and other amounts the individual may be |
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entitled to recover for a claim under this section. |
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(e) Sovereign immunity to suit is waived and abolished to |
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the extent of liability created by this section. |
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(f) An individual having a claim under this section may sue |
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a governmental unit, as that term is defined by Section 101.001, |
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Civil Practice and Remedies Code, for damages and other amounts the |
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individual may be entitled to recover under this section. |
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SECTION 2. This Act takes effect September 1, 2007. |