81R4365 EAH-F
 
  By: Ellis S.B. No. 1884
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a breach of computer security involving sensitive
  personal information maintained by a state agency or local
  government.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle B, Title 10, Government Code, is
  amended by adding Chapter 2061 to read as follows:
  CHAPTER 2061. SECURITY BREACH NOTIFICATION BY STATE AGENCY OR LOCAL
  GOVERNMENT
         Sec. 2061.001.  DEFINITIONS. (a) In this chapter:
               (1)  "Breach of system security" means unauthorized
  acquisition of computerized data that compromises the security or
  confidentiality of sensitive personal information maintained by a
  state agency or local government. Good faith acquisition of
  sensitive personal information by an employee, contractor, or agent
  of the state agency or local government for the purposes of the
  state agency or local government is not a breach of system security
  unless the employee, contractor, or agent uses or discloses the
  sensitive personal information in an unauthorized manner.
               (2)  "Local government" has the meaning assigned by
  Section 2054.003.
               (3)  "Sensitive personal information" means, subject
  to Subsection (b), an individual's first name or first initial and
  last name in combination with one or more of the following items, if
  the name and the items are not encrypted or the name and the items
  are encrypted and the person accessing the information has access
  to the key required to decrypt the information:
                     (A)  social security number;
                     (B)  driver's license number or government-issued
  identification number; or
                     (C)  account number or credit or debit card number
  in combination with any required security code, access code, or
  password that would permit access to an individual's financial
  account.
               (4)  "State agency" has the meaning assigned by Section
  2054.003.
         (b)  For purposes of this chapter, "sensitive personal
  information" does not include publicly available information that
  is lawfully made available to the public by the federal government
  or a state or local government.
         Sec. 2061.002.  NOTIFICATION REQUIRED FOLLOWING BREACH OF
  SYSTEM SECURITY. (a) A state agency or local government that owns or
  licenses computerized data that includes sensitive personal
  information shall disclose any breach of system security, after
  discovering or receiving notification of the breach, to any
  individual whose sensitive personal information was, or is
  reasonably believed to have been, acquired as a result of the breach
  by an unauthorized person who commits, or who the state agency or
  local government reasonably believes has committed or will commit,
  identity theft or other fraud against any individual. The
  disclosure shall be made as quickly as possible, except as provided
  by Subsection (c) or as necessary to determine the scope of the
  breach and reasonably restore the integrity of the data system.
         (b)  A state agency or local government that maintains
  computerized data that includes sensitive personal information not
  owned or licensed by the state agency or local government shall
  notify the owner of the information of any breach of system security
  as soon as practicable after discovering the breach.
         (c)  A state agency or local government may delay providing
  notice as required by Subsection (a) or (b) at the request of a law
  enforcement agency that determines that the notification will
  impede a civil or criminal investigation or jeopardize homeland
  security. The notification shall be made without unreasonable delay
  after the law enforcement agency determines that notification will
  not compromise the investigation or jeopardize homeland security.
         (d)  A state agency or local government may give notice as
  required by Subsection (a) or (b) by providing:
               (1)  written notice sent by mail;
               (2)  telephone notice;
               (3)  electronic notice, if the notice is provided in
  accordance with 15 U.S.C. Section 7001; or
               (4)  notice as provided by Subsection (e).
         (e)  If the state agency or local government required to give
  notice under Subsection (a) or (b) demonstrates that the cost of
  providing notice would exceed $50,000, the number of affected
  persons exceeds 100,000, or the state agency or local government
  does not have sufficient contact information, the notice may be
  given by:
               (1)  electronic mail, if the state agency or local
  government has electronic mail addresses for the affected persons;
               (2)  conspicuous posting of the notice on the Internet
  website of the state agency or local government; or
               (3)  notice published in or broadcast on major national
  media.
         (f)  Notwithstanding any other provision of this chapter, a
  state agency or local government is not required to comply with this
  chapter if the state agency or local government complies with the
  notification requirements under Chapter 521, Business & Commerce
  Code, or a federal or state law that has notice requirements at
  least as stringent as the requirements under this chapter.
         SECTION 2.  The changes in law made by this Act apply only to
  a breach of system security that occurs on or after the effective
  date of this Act. A breach of system security that occurs before the
  effective date of this Act is governed by the law in effect on the
  date the breach occurred, and the former law is continued in effect
  for that purpose.
         SECTION 3.  This Act takes effect September 1, 2009.