81R20450 EAH-F By: McCall H.B. No. 2004 Substitute the following for H.B. No. 2004: By: Gallego C.S.H.B. No. 2004 A BILL TO BE ENTITLED AN ACT relating to a breach of computer security involving sensitive personal information. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 521.002(a)(2), Business & Commerce Code, as effective April 1, 2009, is amended to read as follows: (2) "Sensitive personal information" means, subject to Subsection (b): (A) [,] an individual's first name or first initial and last name in combination with any one or more of the following items, if the name and the items are not encrypted: (i) [(A)] social security number; (ii) [(B)] driver's license number or government-issued identification number; or (iii) [(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; or (B) information that identifies an individual and relates to: (i) the physical or mental health or condition of the individual; (ii) the provision of health care to the individual; or (iii) payment for the provision of health care to the individual. SECTION 2. Section 521.053(a), Business & Commerce Code, as effective April 1, 2009, is amended to read as follows: (a) In this section, "breach of system security" means unauthorized acquisition of computerized data that compromises the security, confidentiality, or integrity of sensitive personal information maintained by a person, including data that is encrypted if the person accessing the data has the key required to decrypt the data. Good faith acquisition of sensitive personal information by an employee or agent of the person for the purposes of the person is not a breach of system security unless the person uses or discloses the sensitive personal information in an unauthorized manner. SECTION 3. Subchapter F, Chapter 2054, Government Code, is amended by adding Section 2054.1125 to read as follows: Sec. 2054.1125. SECURITY BREACH NOTIFICATION BY STATE AGENCY. (a) In this section: (1) "Breach of system security" has the meaning assigned by Section 521.053, Business & Commerce Code. (2) "Sensitive personal information" has the meaning assigned by Section 521.002, Business & Commerce Code. (b) A state agency that owns, licenses, or maintains computerized data that includes sensitive personal information shall comply, in the event of a breach of system security, with the notification requirements of Section 521.053, Business & Commerce Code, to the same extent as a person who conducts business in this state. SECTION 4. Chapter 205, Local Government Code, is amended by adding Section 205.010 to read as follows: Sec. 205.010. SECURITY BREACH NOTIFICATION BY LOCAL GOVERNMENT. (a) In this section: (1) "Breach of system security" has the meaning assigned by Section 521.053, Business & Commerce Code. (2) "Sensitive personal information" has the meaning assigned by Section 521.002, Business & Commerce Code. (b) A local government that owns, licenses, or maintains computerized data that includes sensitive personal information shall comply, in the event of a breach of system security, with the notification requirements of Section 521.053, Business & Commerce Code, to the same extent as a person who conducts business in this state. SECTION 5. 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 6. This Act takes effect September 1, 2009.