Texas 2013 - 83rd Regular

Texas Senate Bill SB990 Compare Versions

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1	1	83R28754 JSC-F
2	2	By: West S.B. No. 990
3	3	(Turner of Harris)
4	4	Substitute the following for S.B. No. 990: No.
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to criminal history record information obtained or
10	10	disseminated by certain private entities; providing a civil
11	11	penalty; authorizing fees.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 411.0851, Government Code, is amended by
14	14	amending Subsections (a) and (b) and adding Subsections (a-1) and
15	15	(d) to read as follows:
16	16	(a) This section applies only to a [A] private entity that:
17	17	(1) compiles and disseminates for compensation
18	18	criminal history record information of individuals; and
19	19	(2) provides the information described by Subdivision
20	20	(1) to a customer on request without verifying the information
21	21	after receipt of the request.
22	22	(a-1) A private entity described by Subsection (a) shall
23	23	destroy and may not disseminate any information in the possession
24	24	of the entity with respect to which the entity has received a
25	25	certified or noncertified copy of the order showing or notice from
26	26	the department that:
27	27	(1) an order of expunction has been issued under
28	28	Article 55.02, Code of Criminal Procedure; or
29	29	(2) an order of nondisclosure has been issued under
30	30	Section 411.081(d).
31	31	(b) Except as otherwise provided by federal law [Unless the
32	32	entity is regulated by the federal Fair Credit Reporting Act (15
33	33	U.S.C. Section 1681 et seq.) or the Gramm-Leach-Bliley Act (15
34	34	U.S.C. Sections 6801 to 6809)], a private entity described by
35	35	Subsection (a) that purchases or otherwise obtains criminal history
36	36	record information that originates from the department, a custodian
37	37	of court records, or [from] another governmental agency or entity
38	38	in this state:
39	39	(1) may disseminate that information:
40	40	(A) [only] if, within the 60-day [90-day] period
41	41	preceding the date of dissemination, the entity verifies [:
42	42	[(A) originally obtains] that the information was
43	43	obtained from or verified by the department, a custodian of court
44	44	records, or another governmental agency or entity in this state
45	45	within that same 60-day period; or
46	46	(B) with a notice [receives] that the information
47	47	was received from the governmental source more than 60 days before
48	48	the date it is being provided and may not reflect the current state
49	49	of the criminal history record information and should be verified
50	50	before taking any action based on the information, to:
51	51	(i) a law enforcement agency; or
52	52	(ii) an investigations agency licensed
53	53	under Chapter 1702, Occupations Code, or similar statute of another
54	54	state or a consumer reporting agency for a purpose regulated under
55	55	the federal Fair Credit Reporting Act (15 U.S.C. Section 1681 et
56	56	seq.), if the recipient of the information has certified in writing
57	57	that the information will be used exclusively for the purpose of
58	58	generating investigative leads and will not be shared with any
59	59	other party unless verified as accurate and up to date under Section
60	60	20.022, Business & Commerce Code [as updated record information to
61	61	its database]; and
62	62	(2) shall on a quarterly basis notify the department
63	63	of the name and contact information of each similar entity to which
64	64	[if] the entity sold [sells] any compilation of the information in
65	65	the previous quarter [to another similar entity].
66	66	(d) Information reported to the department under Subsection
67	67	(b)(2) is not subject to Chapter 552.
68	68	SECTION 2. Subchapter F, Chapter 411, Government Code, is
69	69	amended by adding Sections 411.0852, 411.0853, 411.0854, and
70	70	411.0855 to read as follows:
71	71	Sec. 411.0852. ACCESS TO CRIMINAL HISTORY RECORD
72	72	INFORMATION MAINTAINED BY PRIVATE ENTITY; DISPUTES OF ACCURACY.
73	73	(a) On written request by a person who is the subject of criminal
74	74	history record information maintained by a private entity described
75	75	by Section 411.0851(a), the entity shall provide to the person a
76	76	copy of all records regarding that person maintained by the entity
77	77	not later than the 30th business day after the receipt of the
78	78	request.
79	79	(b) A person is entitled to receive one copy of the person's
80	80	criminal history record information pursuant to a request under
81	81	Subsection (a) at no charge to the person each calendar year. An
82	82	entity described by Section 411.0851(a) may charge a reasonable fee
83	83	for subsequent copies requested by the person within a calendar
84	84	year.
85	85	(c) If a person disputes the accuracy of any portion of the
86	86	person's criminal history record information maintained by a
87	87	private entity described by Section 411.0851(a), the person may
88	88	submit a written request to the entity for verification along with
89	89	any supporting documentation, including a copy of a court order, if
90	90	applicable. On receipt of a written request under this subsection,
91	91	the entity shall promptly initiate an investigation into the
92	92	accuracy of the disputed information. Not later than the 30th day
93	93	after the date the written request is received, the entity shall
94	94	complete the investigation, notify the person who is the subject of
95	95	the disputed information of the outcome of the investigation, and
96	96	correct the information as applicable.
97	97	(d) If a person disputes the criminal history record
98	98	information maintained by a private entity described by Section
99	99	411.0851(a) on the basis of an order of nondisclosure or an order of
100	100	expunction, the person may submit a written request to the entity
101	101	for removal of the person's information. Not later than the 15th
102	102	day after receipt of the request accompanied by a certified or
103	103	uncertified copy of the court order, the entity shall remove the
104	104	information that is the subject of the court order.
105	105	(e) A private entity described by Section 411.0851(a) that
106	106	fails to comply with Subsection (c) or (d) is liable for any damages
107	107	that are sustained as a result of the violation by the person who is
108	108	the subject of that information. A person who prevails in an action
109	109	brought under this subsection is also entitled to recover court
110	110	costs and reasonable attorney's fees.
111	111	Sec. 411.0853. PUBLIC DISCLOSURES BY PRIVATE ENTITIES;
112	112	CIVIL PENALTY. (a) Each private entity described by Section
113	113	411.0851(a) shall, not later than the 30th day after the date the
114	114	entity begins doing business in this state, disclose the entity's
115	115	name and contact information to the department in the form and
116	116	manner prescribed by the department.
117	117	(b) Disclosures required under this section are subject to
118	118	Chapter 552. The department shall publish the disclosures required
119	119	under this section on the department's Internet website.
120	120	(c) The department shall adopt rules to implement this
121	121	section.
122	122	(d) An entity that fails to comply with Subsection (a) is
123	123	liable to the state for a civil penalty of $500 for each violation.
124	124	Each day the violation continues constitutes a separate violation
125	125	for purposes of this subsection.
126	126	(e) At the request of the department, the attorney general
127	127	may bring an action to recover the civil penalty authorized by
128	128	Subsection (d). The attorney general and the department may
129	129	recover reasonable expenses incurred in obtaining the civil
130	130	penalty, including court costs, reasonable attorney's fees,
131	131	investigation costs, witness fees, and deposition expenses.
132	132	(f) A civil penalty collected under Subsection (d) shall be
133	133	deposited in the state treasury to the credit of the department for
134	134	the administration of this chapter.
135	135	Sec. 411.0854. DISCLOSURES BY PRIVATE ENTITIES TO
136	136	PURCHASERS OR OTHER RECIPIENTS. A private entity described by
137	137	Section 411.0851(a) shall disclose to each purchaser or recipient
138	138	of criminal history record information at the time the information
139	139	is provided:
140	140	(1) the name of the governmental entity from which the
141	141	information originated; and
142	142	(2) the date on which the information was last
143	143	received from or updated by the governmental entity.
144	144	Sec. 411.0855. DUTIES OF PURCHASER OR RECIPIENT OF CRIMINAL
145	145	HISTORY RECORD INFORMATION USED FOR EMPLOYMENT, LICENSING, OR
146	146	HOUSING. (a) In this section, "adverse decision" means a decision
147	147	to disqualify an individual or otherwise negatively affect the
148	148	eligibility of an individual for employment, licensing, or housing.
149	149	(b) A person who purchases, accesses, or otherwise receives
150	150	criminal history record information and uses the information as the
151	151	basis for an adverse decision regarding the employment, licensing,
152	152	or housing of the individual who is the subject of the information
153	153	shall disclose to that individual the name and contact information
154	154	of the entity from which the person received the information.
155	155	SECTION 3. Chapter 20, Business & Commerce Code, is amended
156	156	by adding Section 20.022 to read as follows:
157	157	Sec. 20.022. FURNISHING OF CONSUMER REPORT FOR EMPLOYMENT
158	158	OR HOUSING PURPOSES; EXCEPTION FOR NATIONAL SECURITY
159	159	INVESTIGATION. (a) This section does not apply to the furnishing
160	160	of a consumer report to an agency or department of the federal
161	161	government that seeks to obtain and use the report for employment
162	162	purposes and whose agency or department head makes a written
163	163	finding as prescribed by 15 U.S.C. Section 1681b(b)(4)(A).
164	164	(b) A consumer reporting agency that compiles and reports
165	165	information related to a consumer's criminal history for purposes
166	166	of furnishing a consumer report for employment or housing purposes
167	167	shall implement and maintain strict procedures designed to ensure
168	168	that the criminal history record information reported is complete
169	169	and up to date. For purposes of this subsection, criminal history
170	170	record information contained in a consumer report is considered:
171	171	(1) complete if the information reflects:
172	172	(A) the offense alleged;
173	173	(B) the jurisdiction in which the criminal
174	174	history record information originated;
175	175	(C) the date of the arrest or filing of criminal
176	176	charges;
177	177	(D) the current status of any criminal case
178	178	proceeding, if charges have been filed; and
179	179	(E) the disposition of the case and the date of
180	180	that disposition, if applicable; and
181	181	(2) up to date if the information related to an arrest,
182	182	filing of criminal charges, or conviction or other disposition of
183	183	the case reflects the most recent public record status of the
184	184	information described by Subdivision (1) at the time the consumer
185	185	report is requested.
186	186	SECTION 4. (a) Section 411.0851, Government Code, as
187	187	amended by this Act, applies only to information disseminated on or
188	188	after the effective date of this Act. Information disseminated
189	189	before the effective date of this Act is governed by the law in
190	190	effect on the date the information was disseminated, and the former
191	191	law is continued in effect for that purpose.
192	192	(b) The Department of Public Safety shall adopt rules to
193	193	implement Section 411.0853, Government Code, as added by this Act,
194	194	not later than January 1, 2014.
195	195	(c) An entity subject to Section 411.0853, Government Code,
196	196	as added by this Act, is not required to submit the initial
197	197	disclosures required under that section before February 1, 2014.
198	198	(d) Section 411.0854, Government Code, as added by this Act,
199	199	applies only to criminal history record information provided to a
200	200	purchaser or recipient on or after the effective date of this Act.
201	201	Criminal history record information provided to a purchaser or
202	202	recipient before the effective date of this Act is governed by the
203	203	law in effect on the date the information was provided, and the
204	204	former law is continued in effect for that purpose.
205	205	(e) Section 411.0855, Government Code, as added by this Act,
206	206	applies only to criminal history record information purchased,
207	207	accessed, received, or otherwise used on or after the effective
208	208	date of this Act. Criminal history record information purchased,
209	209	accessed, received, or otherwise used before the effective date of
210	210	this Act is governed by the law in effect on the date the
211	211	information was purchased, accessed, received, or otherwise used,
212	212	and the former law is continued in effect for that purpose.
213	213	SECTION 5. Not later than October 1, 2013, a private entity
214	214	that compiles and disseminates for compensation criminal history
215	215	record information shall:
216	216	(1) submit the initial quarterly notification under
217	217	Section 411.0851, Government Code, as amended by this Act; and
218	218	(2) file the information required by Section 411.0853,
219	219	Government Code, as added by this Act.
220	220	SECTION 6. This Act takes effect September 1, 2013.