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A BILL TO BE ENTITLED
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AN ACT
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relating to criminal history record information obtained or |
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disseminated by a private entity; providing a civil penalty; |
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authorizing fees. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 411.0851, Government Code, is amended by |
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amending Subsection (b) and adding Subsection (b-1) to read as |
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follows: |
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(b) Unless the entity is regulated by the federal Fair |
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Credit Reporting Act (15 U.S.C. Section 1681 et seq.) or the |
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Gramm-Leach-Bliley Act (15 U.S.C. Sections 6801 to 6809), a private |
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entity described by Subsection (a) that purchases or otherwise |
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obtains criminal history record information from the department or |
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from another governmental agency or entity in this state: |
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(1) may disseminate that information only if, within |
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the 60-day [90-day] period preceding the date of dissemination, the |
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entity: |
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(A) originally obtains that information; or |
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(B) receives that information as updated record |
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information to its database; and |
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(2) shall on a quarterly basis notify the department |
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of the name and contact information of each similar entity to which |
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[if] the entity sold [sells] any compilation of the information in |
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the previous quarter [to another similar entity]. |
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(b-1) Unless the entity is regulated by the federal Fair |
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Credit Reporting Act (15 U.S.C. Section 1681 et seq.) or the |
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Gramm-Leach-Bliley Act (15 U.S.C. Sections 6801 to 6809), a private |
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entity described by Subsection (a) that purchases or otherwise |
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obtains criminal history record information from a similar entity |
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or other private entity: |
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(1) may disseminate that information only if the |
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private entity verifies that the information was originally |
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obtained or updated by the department or other governmental agency |
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or entity within the 60-day period preceding the date of |
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dissemination; and |
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(2) shall on a quarterly basis notify the department |
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of the name and contact information of each similar entity or other |
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private entity to which the entity sold any compilation of the |
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information in the previous quarter. |
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SECTION 2. Subchapter F, Chapter 411, Government Code, is |
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amended by adding Sections 411.0852, 411.0853, 411.0854, and |
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411.0855 to read as follows: |
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Sec. 411.0852. ACCESS TO CRIMINAL HISTORY RECORD |
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INFORMATION MAINTAINED BY PRIVATE ENTITY; DISPUTES OF ACCURACY. |
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(a) On written request by a person who is the subject of criminal |
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history record information maintained by a private entity that |
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compiles and disseminates for compensation criminal history record |
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information, the entity shall provide to the person a copy of all |
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records maintained by the entity not later than the 30th business |
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day after the receipt of the request. |
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(b) A person is entitled to receive one copy of the person's |
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criminal history record information pursuant to a request under |
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Subsection (a) at no charge to the person each calendar year. An |
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entity described by Subsection (a) may charge a reasonable fee for |
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subsequent copies requested by the person within a calendar year. |
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(c) If a person disputes the accuracy of any portion of the |
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person's criminal history record information maintained by the |
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private entity described by Subsection (a), the person may submit a |
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written request to the entity for verification. On receipt of a |
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written request under this subsection, the entity shall promptly |
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initiate an investigation into the accuracy of the disputed |
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information. Not later than the 30th day after the date the written |
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request is received, the entity shall complete the investigation, |
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notify the person who is the subject of the disputed information of |
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the outcome of the investigation, and correct the information as |
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applicable. |
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(d) A private entity that fails to comply with this section |
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is liable for any damages that are sustained as a result of the |
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violation by the person who is the subject of that information. A |
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person who prevails in an action brought under this section is also |
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entitled to recover court costs and reasonable attorney's fees. |
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Sec. 411.0853. PUBLIC DISCLOSURES BY PRIVATE ENTITIES; |
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CIVIL PENALTY. (a) Each private entity that compiles and |
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disseminates for compensation criminal history record information |
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to customers shall, not later than the 30th day after the date the |
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entity begins doing business in this state, disclose the entity's |
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name and contact information to the department in the form and |
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manner prescribed by the department. |
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(b) The department shall publish the disclosures required |
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under this section on the department's Internet website. |
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(c) The department may adopt rules to implement this |
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section. |
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(d) An entity that fails to comply with Subsection (a) is |
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liable to the state for a civil penalty of $500 for each violation. |
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Each day the violation continues constitutes a separate violation |
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for purposes of this subsection. |
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(e) At the request of the department, the attorney general |
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shall bring an action to recover the civil penalty authorized by |
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Subsection (d). The attorney general and the department may |
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recover reasonable expenses incurred in obtaining the civil |
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penalty, including court costs, reasonable attorney's fees, |
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investigation costs, witness fees, and deposition expenses. |
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(f) A civil penalty collected under Subsection (d) shall be |
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deposited in the state treasury to the credit of the department for |
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the administration of this chapter. |
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Sec. 411.0854. DISCLOSURES BY PRIVATE ENTITIES TO |
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PURCHASERS OR OTHER RECIPIENTS. A private entity that compiles and |
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disseminates for compensation criminal history record information |
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to customers shall disclose to each purchaser or recipient at the |
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time the information is provided: |
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(1) each source from which the entity compiled the |
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information; and |
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(2) the date on which the information was last updated |
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or verified. |
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Sec. 411.0855. DUTIES OF PURCHASER OR RECIPIENT OF CRIMINAL |
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HISTORY RECORD INFORMATION USED FOR BACKGROUND CHECKS. A person |
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who purchases, accesses, or otherwise receives criminal history |
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record information and uses the information for purposes of |
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employment, licensing, housing, or other related background checks |
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of an individual shall disclose to the individual who is the subject |
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of the information the name and contact information of the entity |
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from which the person received the information. |
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SECTION 3. Chapter 20, Business & Commerce Code, is amended |
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by adding Section 20.022 to read as follows: |
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Sec. 20.022. FURNISHING OF CONSUMER REPORT FOR EMPLOYMENT |
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OR HOUSING PURPOSES; EXCEPTION FOR NATIONAL SECURITY |
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INVESTIGATION. (a) This section does not apply to the furnishing |
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of a consumer report to an agency or department of the federal |
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government that seeks to obtain and use the report for employment |
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purposes and whose agency or department head makes a written |
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finding as prescribed by 15 U.S.C. Section 1681b(b)(4)(A). |
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(b) A consumer reporting agency that compiles and reports |
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information related to a consumer's criminal history for purposes |
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of furnishing a consumer report for employment or housing purposes |
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shall implement and maintain strict procedures designed to ensure |
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that the criminal history record information reported is complete |
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and up-to-date. For purposes of this subsection, criminal history |
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record information contained in a consumer report is considered: |
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(1) complete if the information reflects the notations |
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of arrest and the filing and disposition of any criminal charges, if |
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applicable; and |
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(2) up-to-date if information related to an arrest, |
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indictment, or conviction of a crime reflects the most recent |
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public record status of the information at the time the consumer |
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report is furnished. |
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SECTION 4. (a) Section 411.0851, Government Code, as |
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amended by this Act, applies only to information disseminated on or |
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after the effective date of this Act. Information disseminated |
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before the effective date of this Act is governed by the law in |
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effect on the date the information was disseminated, and the former |
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law is continued in effect for that purpose. |
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(b) The Department of Public Safety shall adopt rules to |
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implement Section 411.0853, Government Code, as added by this Act, |
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not later than January 1, 2014. |
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(c) An entity subject to Section 411.0853, Government Code, |
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as added by this Act, is not required to submit the initial |
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disclosures required under that section before February 1, 2014. |
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(d) Section 411.0854, Government Code, as added by this Act, |
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applies only to criminal history record information provided to a |
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purchaser or recipient on or after the effective date of this Act. |
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Criminal history record information provided to a purchaser or |
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recipient before the effective date of this Act is governed by the |
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law in effect on the date the information was provided, and the |
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former law is continued in effect for that purpose. |
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(e) Section 411.0855, Government Code, as added by this Act, |
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applies only to criminal history record information accessed, |
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purchased, received, or otherwise used on or after the effective |
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date of this Act. Criminal history record information accessed, |
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purchased, received, or otherwise used before the effective date of |
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this Act is governed by the law in effect on the date the |
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information was accessed, purchased, received, or otherwise used, |
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and the former law is continued in effect for that purpose. |
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SECTION 5. Not later than October 1, 2013, a private entity |
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that compiles and disseminates for compensation criminal history |
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record information shall: |
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(1) submit the initial quarterly notification under |
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Section 411.0851, Government Code, as amended by this Act; and |
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(2) file the information required by Section 411.0853, |
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Government Code, as added by this Act. |
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SECTION 6. This Act takes effect September 1, 2013. |