By: Seliger  S.B. No. 876
         (In the Senate - Filed February 26, 2007; March 7, 2007,
  read first time and referred to Committee on Transportation and
  Homeland Security; April 20, 2007, reported adversely, with
  favorable Committee Substitute by the following vote:  Yeas 9,
  Nays 0; April 20, 2007, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 876 By:  Carona
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to authorizing the Department of Public Safety of the
  State of Texas to establish a driver record monitoring pilot
  program and enter into contracts for the periodic reporting of
  certain information in the department's driver's license files;
  providing penalties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter C, Chapter 521, Transportation Code,
  is amended by adding Section 521.060 to read as follows:
         Sec. 521.060.  DRIVER RECORD MONITORING PILOT PROGRAM.  
  (a)  The department by rule may establish a driver record
  monitoring pilot program.  The term of the pilot program may not
  exceed one year.
         (b)  Under the pilot program, the department may enter into a
  contract with a person to provide driver record monitoring
  services, as described by Subsection (c), and certain information
  from the department's driver's license records to the person, if the
  person:
               (1)  is an employer, an insurer, an insurance support
  organization, an employer support organization, or an entity that
  self-insures its motor vehicles; and
               (2)  is eligible to receive the information under
  Chapter 730.
         (c)  A contract entered into by the department must require:
               (1)  the department, during the term of the contract,
  to:
                     (A)  monitor the driver record of each holder of a
  driver's license issued by the department that is requested by the
  person with whom the department has contracted;
                     (B)  identify any change in the status of a
  driver's license or any conviction for a traffic offense reported
  to the department during the monitoring period; and
                     (C)  periodically, as specified in the contract,
  provide reports of those individuals identified as having a change
  in status or convictions to the person with whom the department has
  contracted; and
               (2)  the person with whom the department has
  contracted:
                     (A)  to purchase under Section 521.046 a copy of
  the driver record of each individual identified in a report
  provided under Subdivision (1)(C);
                     (B)  to warrant that:
                           (i)  the person will not directly or
  indirectly disclose information received from the department under
  the contract to a third party without the express written consent of
  the department, except as required by law or legal process; and
                           (ii)  if a disclosure is required by law or
  legal process, the person will immediately notify the department so
  that the department may seek to oppose, limit, or restrict the
  required disclosure; and
                     (C)  if the person is an insurance support
  organization, to warrant that the person will not seek to obtain
  information about a holder of a driver's license under the contract
  unless the license holder is insured by a client of the
  organization, and that the person will provide the department with
  the name of each client to whom the insurance support organization
  provides information received from the department under the
  contract.
         (d)  The attorney general may file a suit against a person
  with whom the department has contracted under this section for:
               (1)  injunctive relief to prevent or restrain the
  person from violating a term of the contract or from directly or
  indirectly disclosing information received from the department
  under the contract in a manner that violates the terms of the
  contract; or
               (2)  a civil penalty in an amount not to exceed $2,000
  for each disclosure in violation of those terms.
         (e)  If the attorney general brings an action against a
  person under Subsection (d) and an injunction is granted against
  the person or the person is found liable for a civil penalty, the
  attorney general may recover reasonable expenses, court costs,
  investigative costs, and attorney's fees.  Each day a violation
  continues or occurs is a separate violation for purposes of
  imposing a penalty under Subsection (d).
         (f)  A violation of the terms of a contract entered into with
  the department by the person with whom the department has
  contracted is a false, misleading, or deceptive act or practice
  under Subchapter E, Chapter 17, Business & Commerce Code.
         (g)  A civil action brought under this section shall be filed
  in a district court:
               (1)  in Travis County; or
               (2)  in any county in which the violation occurred.
         (h)  A person with whom the department has contracted under
  this section commits an offense if the person directly or
  indirectly discloses information received from the department
  under the contract in a manner that violates the terms of the
  contract.  An offense under this subsection is a Class B
  misdemeanor.  If conduct constituting an offense under this
  subsection also constitutes an offense under another law, the actor
  may be prosecuted under this section, the other law, or both.
         (i)  The department shall impose a fee on each person with
  whom the department contracts under this section for the services
  provided by the department under the contract.  The fee must be
  reasonable and be not less than the amount necessary to allow the
  department to recover all reasonable costs to the department
  associated with entering into the contract and providing services
  to the person under the contract, including direct, indirect, and
  administrative costs and costs related to the development and
  deployment of the pilot program.
         (j)  The department may establish a reasonable deadline by
  which a person must apply to enter into a contract with the
  department under this section and may not enter into a contract with
  a person who fails to apply before that deadline.
         (k)  To the fullest extent practicable, the services of the
  department under a contract entered into under this section shall
  be provided by, through, or in conjunction with the interactive
  system established under Section 521.055.
         (l)  At the conclusion of the term of the pilot program, and
  on the recommendation of the department, the commission may
  authorize the department to implement the pilot program as a
  permanent program.
         (m)  Before the department recommends the pilot program be
  implemented as a permanent program, the department shall submit to
  the lieutenant governor, the speaker of the house of
  representatives, and each member of the legislature a report that
  contains an analysis of the scope, effectiveness, and cost benefits
  of the pilot program.  The report must include:
               (1)  a list of each insurance support organization with
  whom the department has contracted under this section; and
               (2)  a list of each client to whom the insurance support
  organization has provided information received from the department
  under this section.
         SECTION 2.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2007.
 
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