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A BILL TO BE ENTITLED
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AN ACT
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relating to a breach of computer security involving sensitive |
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personal information maintained by a state agency or local |
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government. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle B, Title 10, Government Code, is |
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amended by adding Chapter 2061 to read as follows: |
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CHAPTER 2061. SECURITY BREACH NOTIFICATION BY STATE AGENCY OR LOCAL |
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GOVERNMENT |
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Sec. 2061.001. DEFINITIONS. (a) In this chapter: |
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(1) "Breach of system security" means unauthorized |
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acquisition of computerized data that compromises the security or |
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confidentiality of sensitive personal information maintained by a |
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state agency or local government. Good faith acquisition of |
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sensitive personal information by an employee, contractor, or agent |
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of the state agency or local government for the purposes of the |
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state agency or local government is not a breach of system security |
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unless the employee, contractor, or agent uses or discloses the |
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sensitive personal information in an unauthorized manner. |
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(2) "Local government" has the meaning assigned by |
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Section 2054.003. |
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(3) "Sensitive personal information" means, subject |
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to Subsection (b), an individual's first name or first initial and |
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last name in combination with one or more of the following items, if |
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the name and the items are not encrypted or the name and the items |
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are encrypted and the person accessing the information has access |
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to the key required to decrypt the information: |
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(A) social security number; |
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(B) driver's license number or government-issued |
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identification number; or |
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(C) account number or credit or debit card number |
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in combination with any required security code, access code, or |
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password that would permit access to an individual's financial |
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account. |
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(4) "State agency" has the meaning assigned by Section |
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2054.003. |
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(b) For purposes of this chapter, "sensitive personal |
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information" does not include publicly available information that |
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is lawfully made available to the public by the federal government |
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or a state or local government. |
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Sec. 2061.002. NOTIFICATION REQUIRED FOLLOWING BREACH OF |
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SYSTEM SECURITY. (a) A state agency or local government that owns or |
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licenses computerized data that includes sensitive personal |
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information shall disclose any breach of system security, after |
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discovering or receiving notification of the breach, to any |
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individual whose sensitive personal information was, or is |
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reasonably believed to have been, acquired as a result of the breach |
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by an unauthorized person who commits, or who the state agency or |
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local government reasonably believes has committed or will commit, |
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identity theft or other fraud against any individual. The |
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disclosure shall be made as quickly as possible, except as provided |
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by Subsection (c) or as necessary to determine the scope of the |
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breach and reasonably restore the integrity of the data system. |
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(b) A state agency or local government that maintains |
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computerized data that includes sensitive personal information not |
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owned or licensed by the state agency or local government shall |
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notify the owner of the information of any breach of system security |
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as soon as practicable after discovering the breach. |
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(c) A state agency or local government may delay providing |
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notice as required by Subsection (a) or (b) at the request of a law |
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enforcement agency that determines that the notification will |
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impede a civil or criminal investigation or jeopardize homeland |
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security. The notification shall be made without unreasonable delay |
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after the law enforcement agency determines that notification will |
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not compromise the investigation or jeopardize homeland security. |
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(d) A state agency or local government may give notice as |
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required by Subsection (a) or (b) by providing: |
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(1) written notice sent by mail; |
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(2) telephone notice; |
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(3) electronic notice, if the notice is provided in |
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accordance with 15 U.S.C. Section 7001; or |
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(4) notice as provided by Subsection (e). |
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(e) If the state agency or local government required to give |
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notice under Subsection (a) or (b) demonstrates that the cost of |
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providing notice would exceed $50,000, the number of affected |
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persons exceeds 100,000, or the state agency or local government |
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does not have sufficient contact information, the notice may be |
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given by: |
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(1) electronic mail, if the state agency or local |
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government has electronic mail addresses for the affected persons; |
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(2) conspicuous posting of the notice on the Internet |
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website of the state agency or local government; or |
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(3) notice published in or broadcast on major national |
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media. |
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(f) Notwithstanding any other provision of this chapter, a |
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state agency or local government is not required to comply with this |
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chapter if the state agency or local government complies with the |
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notification requirements under Chapter 521, Business & Commerce |
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Code, or a federal or state law that has notice requirements at |
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least as stringent as the requirements under this chapter. |
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SECTION 2. The changes in law made by this Act apply only to |
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a breach of system security that occurs on or after the effective |
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date of this Act. A breach of system security that occurs before the |
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effective date of this Act is governed by the law in effect on the |
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date the breach occurred, and the former law is continued in effect |
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for that purpose. |
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SECTION 3. This Act takes effect September 1, 2009. |