| 1 | 1 | | By: Dunnam H.B. No. 3513 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the duty to protect and safeguard sensitive personal |
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| 7 | 7 | | information. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 521.052, Business and Commerce Code, as |
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| 10 | 10 | | added by Chapter 885 (H.B. 2278), Acts of the 80th Legislature, |
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| 11 | 11 | | Regular Session, 2007, is amended to read as follows |
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| 12 | 12 | | Sec. 521.052. BUSINESS DUTY TO PROTECT SENSITIVE PERSONAL |
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| 13 | 13 | | INFORMATION. (a) A business shall implement and maintain |
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| 14 | 14 | | reasonable procedures, including taking any appropriate corrective |
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| 15 | 15 | | action, to protect from unlawful use or disclosure any sensitive |
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| 16 | 16 | | personal information collected or maintained by the business in the |
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| 17 | 17 | | regular course of business. |
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| 18 | 18 | | (b) A business shall destroy or arrange for the destruction |
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| 19 | 19 | | of customer records containing sensitive personal information |
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| 20 | 20 | | within the business's custody or control that are not to be retained |
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| 21 | 21 | | by the business by: |
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| 22 | 22 | | (1) shredding; |
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| 23 | 23 | | (2) erasing; or |
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| 24 | 24 | | (3) otherwise modifying the sensitive personal |
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| 25 | 25 | | information in the records to make the information unreadable or |
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| 26 | 26 | | indecipherable through any means. |
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| 27 | 27 | | (c) This section does not apply to a financial institution |
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| 28 | 28 | | as defined by 15 U.S.C. Section 6809. |
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| 29 | 29 | | (d) As used in this section, "business" includes a nonprofit |
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| 30 | 30 | | athletic or sports association. |
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| 31 | 31 | | SECTION 2. This Act takes effect immediately if it receives |
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| 32 | 32 | | a vote of two-thirds of all the members elected to each house, as |
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| 33 | 33 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 34 | 34 | | Act does not receive the vote necessary for immediate effect, this |
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| 35 | 35 | | Act takes effect September 1, 2009. |
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