By: West  S.B. No. 1185
         (In the Senate - Filed March 1, 2017; March 9, 2017, read
  first time and referred to Committee on Criminal Justice;
  May 3, 2017, reported favorably by the following vote:  Yeas 7,
  Nays 0; May 3, 2017, sent to printer.)
Click here to see the committee vote
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to criminal history record information obtained or
  disseminated by certain private entities; providing a civil
  penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 411.0851, Government Code, is amended by
  amending Subsections (a) and (b) and adding Subsections (a-1) and
  (d) to read as follows:
         (a)  This section applies only to a  [A] private entity that:
               (1)  compiles and disseminates for compensation
  criminal history record information of individuals; and
               (2)  provides the information described by Subdivision
  (1) to a customer on request without verifying the information
  after receipt of the request.
         (a-1)  A private entity described by Subsection (a) shall
  destroy and may not disseminate any information in the possession
  of the entity with respect to which the entity has received a
  certified or noncertified copy of the order showing or notice from
  the department that:
               (1)  an order of expunction has been issued under
  Article 55.02, Code of Criminal Procedure; or
               (2)  an order of nondisclosure of criminal history
  record information has been issued under Subchapter E-1.
         (b)  Except as otherwise provided by federal law [Unless the
  entity is regulated by the federal Fair Credit Reporting Act (15
  U.S.C. Section 1681 et seq.) or the Gramm-Leach-Bliley Act (15
  U.S.C. Sections 6801 to 6809)], a private entity described by
  Subsection (a) that purchases or otherwise obtains criminal history
  record information that originates from the department, a custodian
  of court records, or [from] another governmental agency or entity
  in this state:
               (1)  may disseminate that information:
                     (A)  [only] if, within the 60-day [90-day] period
  preceding the date of dissemination, the entity verifies[:
                     [(A) originally obtains] that the information was
  obtained from or verified by the department, a custodian of court
  records, or another governmental agency or entity in this state
  within that same 60-day period; or
                     (B)  with a notice [receives] that the information
  was received from the governmental source more than 60 days before
  the date it is being provided and may not reflect the current state
  of the criminal history record information and should be verified
  before taking any action based on the information, to:
                           (i)  a law enforcement agency; or
                           (ii)  an investigations agency licensed
  under Chapter 1702, Occupations Code, or similar statute of another
  state or a consumer reporting agency for a purpose regulated under
  the federal Fair Credit Reporting Act (15 U.S.C. Section 1681 et
  seq.), if the recipient of the information has certified in writing
  that the information will be used exclusively for the purpose of
  generating investigative leads and will not be shared with any
  other party unless verified as accurate and up to date under Section
  20.071, Business & Commerce Code [as updated record information to
  its database]; and
               (2)  shall on a quarterly basis notify the department
  of the name and contact information of each similar entity to which
  [if] the entity sold [sells] any compilation of the information in
  the previous quarter [to another similar entity].
         (d)  Information reported to the department under Subsection
  (b)(2) is not subject to Chapter 552.
         SECTION 2.  Subchapter F, Chapter 411, Government Code, is
  amended by adding Sections 411.0852, 411.0853, 411.0854, and
  411.0855 to read as follows:
         Sec. 411.0852.  ACCESS TO CRIMINAL HISTORY RECORD
  INFORMATION MAINTAINED BY PRIVATE ENTITY; DISPUTES OF ACCURACY.
  (a)  On written request by a person who is the subject of criminal
  history record information maintained by a private entity described
  by Section 411.0851(a), the entity shall provide to the person a
  copy of all records regarding that person maintained by the entity
  not later than the 30th business day after the receipt of the
  request.
         (b)  A person is entitled to receive one copy of the person's
  criminal history record information pursuant to a request under
  Subsection (a) at no charge to the person each calendar year. An
  entity described by Section 411.0851(a) may charge a reasonable fee
  for subsequent copies requested by the person within a calendar
  year.
         (c)  If a person disputes the accuracy of any portion of the
  person's criminal history record information maintained by a
  private entity described by Section 411.0851(a), the person may
  submit a written request to the entity for verification along with
  any supporting documentation, including a copy of a court order, if
  applicable. On receipt of a written request under this subsection,
  the entity shall promptly initiate an investigation into the
  accuracy of the disputed information. Not later than the 30th day
  after the date the written request is received, the entity shall
  complete the investigation, notify the person who is the subject of
  the disputed information of the outcome of the investigation, and
  correct the information as applicable.
         (d)  If a person disputes the criminal history record
  information maintained by a private entity described by Section
  411.0851(a) on the basis of an order of nondisclosure of criminal
  history record information or an order of expunction, the person
  may submit a written request to the entity for removal of the
  person's information. Not later than the 15th day after receipt of
  the request accompanied by a certified or uncertified copy of the
  court order, the entity shall remove the information that is the
  subject of the court order.
         (e)  A private entity described by Section 411.0851(a) that
  fails to comply with Subsection (c) or (d) is liable for any damages
  that are sustained as a result of the violation by the person who is
  the subject of that information.  A person who prevails in an action
  brought under this subsection is also entitled to recover court
  costs and reasonable attorney's fees.
         Sec. 411.0853.  PUBLIC DISCLOSURES BY PRIVATE ENTITIES;
  CIVIL PENALTY. (a)  Each private entity described by Section
  411.0851(a) shall, not later than the 30th day after the date the
  entity begins doing business in this state, disclose the entity's
  name and contact information to the department in the form and
  manner prescribed by the department.
         (b)  Disclosures required under this section are subject to
  Chapter 552.  The department shall publish the disclosures required
  under this section on the department's Internet website.
         (c)  The department shall adopt rules to implement this
  section.
         (d)  An entity that fails to comply with Subsection (a) is
  liable to the state for a civil penalty of $500 for each violation.
  Each day the violation continues constitutes a separate violation
  for purposes of this subsection.
         (e)  At the request of the department, the attorney general
  may bring an action to recover the civil penalty authorized by
  Subsection (d).  The attorney general and the department may
  recover reasonable expenses incurred in obtaining the civil
  penalty, including court costs, reasonable attorney's fees,
  investigation costs, witness fees, and deposition expenses.
         (f)  A civil penalty collected under Subsection (d) shall be
  deposited in the state treasury to the credit of the department for
  the administration of this chapter.
         Sec. 411.0854.  DISCLOSURES BY PRIVATE ENTITIES TO
  PURCHASERS OR OTHER RECIPIENTS. A private entity described by
  Section 411.0851(a) shall disclose to each purchaser or recipient
  of criminal history record information at the time the information
  is provided:
               (1)  the name of the governmental entity from which the
  information originated; and
               (2)  the date on which the information was last
  received from or updated by the governmental entity.
         Sec. 411.0855.  DUTIES OF PURCHASER OR RECIPIENT OF CRIMINAL
  HISTORY RECORD INFORMATION USED FOR EMPLOYMENT, LICENSING, OR
  HOUSING.  (a)  In this section, "adverse decision" means a decision
  to disqualify an individual or otherwise negatively affect the
  eligibility of an individual for employment, licensing, or housing.
         (b)  A person who purchases, accesses, or otherwise receives
  criminal history record information and uses the information as the
  basis for an adverse decision regarding the individual who is the
  subject of the information shall disclose to that individual the
  name and contact information of the entity from which the person
  received the information.
         SECTION 3.  Subchapter C, Chapter 20, Business & Commerce
  Code, is amended by adding Section 20.071 to read as follows:
         Sec. 20.071.  FURNISHING OF CONSUMER REPORT FOR EMPLOYMENT
  OR HOUSING PURPOSES; EXCEPTION FOR NATIONAL SECURITY
  INVESTIGATION. (a)  This section does not apply to the furnishing
  of a consumer report to an agency or department of the federal
  government that seeks to obtain and use the report for employment
  purposes and whose agency or department head makes a written
  finding as prescribed by 15 U.S.C. Section 1681b(b)(4)(A).
         (b)  A consumer reporting agency that compiles and reports
  information related to a consumer's criminal history for purposes
  of furnishing a consumer report for employment or housing purposes
  shall implement and maintain strict procedures designed to ensure
  that the criminal history record information reported is complete
  and up to date. For purposes of this subsection, criminal history
  record information contained in a consumer report is considered:
               (1)  complete if the information reflects:
                     (A)  the offense alleged;
                     (B)  the jurisdiction in which the criminal
  history record information originated;
                     (C)  the date of the arrest or filing of criminal
  charges;
                     (D)  the current status of any criminal case
  proceeding, if charges have been filed; and
                     (E)  the disposition of the case and the date of
  that disposition, if applicable; and
               (2)  up to date if the information related to an arrest,
  filing of criminal charges, or conviction or other disposition of
  the case reflects the most recent public record status of the
  information described by Subdivision (1) at the time the consumer
  report is requested.
         SECTION 4.  (a)  Section 411.0851, Government Code, as
  amended by this Act, applies only to information disseminated on or
  after the effective date of this Act. Information disseminated
  before the effective date of this Act is governed by the law in
  effect on the date the information was disseminated, and the former
  law is continued in effect for that purpose.
         (b)  Not later than October 1, 2017, a private entity that
  compiles and disseminates for compensation criminal history record
  information shall submit the initial quarterly notification under
  Section 411.0851, Government Code, as amended by this Act.
         (c)  The Department of Public Safety shall adopt rules to
  implement Section 411.0853, Government Code, as added by this Act,
  not later than January 1, 2018.
         (d)  An entity subject to Section 411.0853, Government Code,
  as added by this Act, is not required to submit the initial
  disclosures required under that section before February 1, 2018.
         (e)  Section 411.0854, Government Code, as added by this Act,
  applies only to criminal history record information provided to a
  purchaser or recipient on or after the effective date of this Act.
  Criminal history record information provided to a purchaser or
  recipient before the effective date of this Act is governed by the
  law in effect on the date the information was provided, and the
  former law is continued in effect for that purpose.
         (f)  Section 411.0855, Government Code, as added by this Act,
  applies only to criminal history record information purchased,
  accessed, received, or otherwise used on or after the effective
  date of this Act. Criminal history record information purchased,
  accessed, received, or otherwise used before the effective date of
  this Act is governed by the law in effect on the date the
  information was purchased, accessed, received, or otherwise used,
  and the former law is continued in effect for that purpose.
         SECTION 5.  This Act takes effect September 1, 2017.
 
  * * * * *