Amend CSHB 2730 (house committee report) by adding the 
following appropriately numbered article to the bill and 
renumbering subsequent articles of the bill accordingly:

ARTICLE ____. ALTERNATIVE METHODS OF OBTAINING CRIMINAL HISTORY 
INFORMATION AND REGISTRATION OF PRIVATE VENDORS TO OBTAIN CRIMINAL 
HISTORY INFORMATION
	SECTION ____.01.  Subchapter F, Chapter 411, Government 
Code, is amended by adding Section 411.0852 to read as follows:
	Sec. 411.0852.  PRIVATE VENDORS PROVIDING CRIMINAL HISTORY 
RECORD INFORMATION; REGISTRATION OF VENDORS.  (a)  In this section:
		(1)  "Commission" means the Texas Commission of 
Licensing and Regulation.
		(2)  "Department" means the Texas Department of 
Licensing and Regulation.
	(b)  An entity authorized or required under the laws of this 
state to obtain criminal history record information, including 
national criminal history record information, regarding a person 
may elect, as an alternative, to contract with a private vendor 
registered under this section to obtain both the criminal history 
record information and identity verification through 
electronic-based data records.
	(c)  The commission by rule shall develop criteria for a 
vendor to register with the state to provide criminal history 
record information and perform identity verification.  In 
developing the criteria, the commission shall consult with law 
enforcement officials and industry experts to ascertain the latest 
trends in and technologies available for conducting criminal 
background checks and identity verification. The commission may 
annually update the criteria based on the latest trends and the 
latest technologies available in conducting criminal background 
checks.
	(d)  A private vendor may not provide criminal history record 
information or perform identity verification for any entity 
authorized or required under the laws of this state to obtain the 
information or verification unless the vendor is registered in 
accordance with this section and rules adopted under this section.  
A vendor must submit to the department on the form prescribed by the 
department an application requesting registration to provide 
criminal history record information and perform identity 
verification for entities required or authorized to obtain criminal 
history record information. The department shall approve or deny 
the application not later than the 30th day after the date the 
department receives the application.
	(e)  The department may charge an application fee in an 
amount sufficient to cover the costs to administer this section to 
vendors who apply for registration under this section.
	(f)  A vendor registered by the department to perform 
electronic criminal background checks and identity verification 
may annually renew the registration by submitting to the department 
a renewal application on the form prescribed by the department.
	(g)  The vendor shall report the results of a criminal 
background check and identity verification to the contracting 
entity by e-mail.  The vendor's report must be viewable to the 
contracting entity through a secure Internet website.
	(h)  A private vendor is liable to this state for a civil 
penalty of not more than $1,000 for each violation if the vendor 
violates this section or a rule adopted under this section.
	(i)  The amount of the penalty assessed under Subsection (h) 
shall be based on:
		(1)  the seriousness of the violation;                                 
		(2)  the history of previous violations;                               
		(3)  the amount necessary to deter a future violation; 
and           
		(4)  any other matter that justice may require.                        
	(j)  The attorney general may sue to collect a civil penalty 
under this section.  In the suit the attorney general may recover, 
on behalf of the state, the reasonable expenses incurred in 
obtaining the penalty, including investigation and court costs, 
reasonable attorney's fees, witness fees, and other expenses.
	SECTION ____.02.  Not later than December 1, 2009, the Texas 
Commission of Licensing and Regulation shall develop criteria for 
registering a vendor to perform criminal background checks and 
identity verification under Section 411.0852, Government Code, as 
added by this article.