H.B. No. 346
AN ACT
relating to the accessing and use of electronically readable
personal identification information obtained from driver's
licenses or personal identification certificates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 521.126, Transportation Code, is amended
by amending Subsections (b) and (e) and adding Subsections (e-1)
and (l) to read as follows:
(b) Except as provided by Subsections (d), (e), (e-1), (g),
(i), and (j), and Section 501.101, Business & Commerce Code, a
person commits an offense if the person:
(1) accesses or uses electronically readable
information derived from a driver's license, commercial driver's
license, or personal identification certificate; or
(2) compiles or maintains a database of electronically
readable information derived from driver's licenses, commercial
driver's licenses, or personal identification certificates.
(e) The prohibition provided by Subsection (b)(1) does not
apply to a financial institution or a business that:
(1) accesses or uses electronically readable
information [if the information is accessed and used only] for
purposes of identification verification of an individual or check
verification at the point of sale for a purchase of a good or
service by check; or
(2) accesses or uses as electronically readable
information a driver's license number or a name printed on a
driver's license as part of a transaction initiated by the license
or certificate holder to provide information encrypted in a manner:
(A) consistent with PCI DSS Standard 3.4 to a
check services company or fraud prevention services company
governed by the Fair Credit Reporting Act (15 U.S.C. Section 1681 et
seq.) for the purpose of effecting, administering, or enforcing the
transaction; and
(B) that does not involve the sale, transfer, or
other dissemination of a name or driver's license number to a third
party for any purpose, including any marketing, advertising, or
promotional activities.
(e-1) The prohibition provided by Subsection (b) does not
apply to:
(1) a check services company or a fraud prevention
services company governed by the Fair Credit Reporting Act (15
U.S.C. Section 1681 et seq.) that, for the purpose of preventing
fraud when effecting, administering, or enforcing the transaction:
(A) accesses or uses as electronically readable
information a driver's license number or a name printed on a
driver's license; or
(B) compiles or maintains a database of
electronically readable driver's license numbers or names printed
on driver's licenses and periodically removes the numbers or names
from the database that are at least four years old; or
(2) [. The prohibition provided by Subsection (b)(2)
does not apply to] a financial institution that compiles or
maintains a database of electronically readable information, if
each license or certificate holder whose information is included in
the compilation or database consents to the inclusion of the
person's information in the compilation or database[. Consent
under this subsection must be] on a separate document, signed by the
license or certificate holder, that explains in at least 14-point
bold type the information that will be included in the compilation
or database.
(l) For the purposes of this section [subsection],
"financial institution" has the meaning assigned by 31 U.S.C.
Section 5312(a)(2)[, as amended].
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2013.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 346 was passed by the House on April
30, 2013, by the following vote: Yeas 141, Nays 2, 1 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 346 on May 23, 2013, by the following vote: Yeas 143, Nays 3, 2
present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 346 was passed by the Senate, with
amendments, on May 21, 2013, by the following vote: Yeas 24, Nays
7.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor