83R6397 JSC/CLG-F
By: West S.B. No. 990
A BILL TO BE ENTITLED
AN ACT
relating to criminal history record information obtained or
disseminated by a private entity; providing a civil penalty;
authorizing fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 411.0851, Government Code, is amended by
amending Subsection (b) and adding Subsection (b-1) to read as
follows:
(b) 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 from the department or
from another governmental agency or entity in this state:
(1) may disseminate that information only if, within
the 60-day [90-day] period preceding the date of dissemination, the
entity:
(A) originally obtains that information; or
(B) receives that information 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].
(b-1) 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 from a similar entity
or other private entity:
(1) may disseminate that information only if the
private entity verifies that the information was originally
obtained or updated by the department or other governmental agency
or entity within the 60-day period preceding the date of
dissemination; and
(2) shall on a quarterly basis notify the department
of the name and contact information of each similar entity or other
private entity to which the entity sold any compilation of the
information in the previous quarter.
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 that
compiles and disseminates for compensation criminal history record
information, the entity shall provide to the person a copy of all
records 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 Subsection (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 the
private entity described by Subsection (a), the person may submit a
written request to the entity for verification. 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) A private entity that fails to comply with this section
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 section 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 that compiles and
disseminates for compensation criminal history record information
to customers 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) The department shall publish the disclosures required
under this section on the department's Internet website.
(c) The department may 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
shall 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 that compiles and
disseminates for compensation criminal history record information
to customers shall disclose to each purchaser or recipient at the
time the information is provided:
(1) each source from which the entity compiled the
information; and
(2) the date on which the information was last updated
or verified.
Sec. 411.0855. DUTIES OF PURCHASER OR RECIPIENT OF CRIMINAL
HISTORY RECORD INFORMATION USED FOR BACKGROUND CHECKS. A person
who purchases, accesses, or otherwise receives criminal history
record information and uses the information for purposes of
employment, licensing, housing, or other related background checks
of an individual shall disclose to the individual who is the subject
of the information the name and contact information of the entity
from which the person received the information.
SECTION 3. Chapter 20, Business & Commerce Code, is amended
by adding Section 20.022 to read as follows:
Sec. 20.022. 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 the notations
of arrest and the filing and disposition of any criminal charges, if
applicable; and
(2) up-to-date if information related to an arrest,
indictment, or conviction of a crime reflects the most recent
public record status of the information at the time the consumer
report is furnished.
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) 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, 2014.
(c) 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, 2014.
(d) 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.
(e) Section 411.0855, Government Code, as added by this Act,
applies only to criminal history record information accessed,
purchased, received, or otherwise used on or after the effective
date of this Act. Criminal history record information accessed,
purchased, received, or otherwise used before the effective date of
this Act is governed by the law in effect on the date the
information was accessed, purchased, received, or otherwise used,
and the former law is continued in effect for that purpose.
SECTION 5. Not later than October 1, 2013, a private entity
that compiles and disseminates for compensation criminal history
record information shall:
(1) submit the initial quarterly notification under
Section 411.0851, Government Code, as amended by this Act; and
(2) file the information required by Section 411.0853,
Government Code, as added by this Act.
SECTION 6. This Act takes effect September 1, 2013.