Texas Senate Bill SB1911

Texas 2009 - 81st Regular

Caption

Relating to protection of individual identifying information and consumer credit information from unauthorized use or disclosure.

Impact

The proposed changes in SB1911 will have significant implications for state laws surrounding consumer protection and privacy. By imposing stricter guidelines for businesses regarding the handling of sensitive personal information, the legislation aims to mitigate the risks associated with data breaches and unauthorized use of personal data. Additionally, the introduction of a private right of action allows individuals to seek damages if their rights are violated, thereby enhancing consumer recourse in instances of data mishandling.

Summary

Senate Bill 1911 aims to enhance the protection of individual identifying information and consumer credit information against unauthorized use or disclosure. The bill introduces several amendments to the Business & Commerce Code, particularly addressing the procedures for implementing security freezes on consumer files. Specifically, it mandates that a consumer reporting agency must place a security freeze on a consumer's file within five business days upon receiving a written request, thus providing consumers with more immediate agency over their credit information during potential identity theft incidents.

Contention

During discussions surrounding SB1911, there were notable points of contention primarily regarding accountability for businesses in terms of nonmanagerial employee actions. While the bill proposes that damages assessed against a business for employee violations may not be trebled unless there is demonstrated negligence in training or supervision, critics argued that this could potentially underscore businesses’ responsibility to protect consumer information adequately. Proponents, however, believe this measure balances protecting consumers with not overly penalizing businesses for unforeseen employee actions.