85R11835 AAF-F
By: Kolkhorst S.B. No. 1013
A BILL TO BE ENTITLED
AN ACT
relating to the disclosure of personal information contained in
motor vehicle records; providing an administrative penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 730.007(a), Transportation Code, is
amended to read as follows:
(a) Personal information obtained by an agency in
connection with a motor vehicle record may be disclosed to any
requestor by an agency if the requestor in a written agreement with
the agency:
(1) provides the requestor's name and address and any
proof of that information required by the agency; [and]
(2) represents that the use of the personal
information will be strictly limited to:
(A) use by:
(i) a government agency, including any
court or law enforcement agency, in carrying out its functions; or
(ii) a private person or entity acting on
behalf of a government agency in carrying out the functions of the
agency;
(B) use in connection with a matter of:
(i) motor vehicle or motor vehicle operator
safety;
(ii) motor vehicle theft;
(iii) motor vehicle product alterations,
recalls, or advisories;
(iv) performance monitoring of motor
vehicles, motor vehicle parts, or motor vehicle dealers;
(v) motor vehicle market research
activities, including survey research; or
(vi) removal of nonowner records from the
original owner records of motor vehicle manufacturers;
(C) use in the normal course of business by a
legitimate business or an authorized agent of the business, but
only:
(i) to verify the accuracy of personal
information submitted by the individual to the business or the
agent of the business; and
(ii) if the information is not correct, to
obtain the correct information, for the sole purpose of preventing
fraud by, pursuing a legal remedy against, or recovering on a debt
or security interest against the individual;
(D) use in conjunction with a civil, criminal,
administrative, or arbitral proceeding in any court or government
agency or before any self-regulatory body, including service of
process, investigation in anticipation of litigation, execution or
enforcement of a judgment or order, or under an order of any court;
(E) use in research or in producing statistical
reports, but only if the personal information is not published,
redisclosed, or used to contact any individual;
(F) use by an insurer or insurance support
organization, or by a self-insured entity, or an authorized agent
of the entity, in connection with claims investigation activities,
antifraud activities, rating, or underwriting;
(G) use in providing notice to an owner of a towed
or impounded vehicle;
(H) use by a licensed private investigator agency
or licensed security service for a purpose permitted under this
section;
(I) use by an employer or an agent or insurer of
the employer to obtain or verify information relating to a holder of
a commercial driver's license that is required under 49 U.S.C.
Chapter 313;
(J) use in connection with the operation of a
private toll transportation facility;
(K) use by a consumer reporting agency, as
defined by the Fair Credit Reporting Act (15 U.S.C. Section 1681 et
seq.), for a purpose permitted under that Act; or
(L) use for any other purpose specifically
authorized by law that relates to the operation of a motor vehicle
or to public safety;
(3) agrees to maintain records that:
(A) specify the requestor's use of the personal
information; and
(B) identify any person or entity receiving the
personal information and the permitted use for which it was
obtained if the requestor resells or rediscloses that information;
and
(4) provides any other information as required by the
agency.
SECTION 2. Chapter 730, Transportation Code, is amended by
adding Sections 730.0135, 730.0136, 730.0155, and 730.017 to read
as follows:
Sec. 730.0135. NOTICE OF RESALE OR REDISCLOSURE. An
authorized recipient who resells or rediscloses personal
information under Section 730.013 shall notify the agency that
provided the information of the resale or redisclosure not later
than the 30th day after the date the recipient resells or
rediscloses the personal information.
Sec. 730.0136. RECORDS BY RECIPIENTS. An authorized
recipient of personal information shall provide copies of all
records required to be maintained by the recipient under this
chapter to the agency that provided the information on request.
Sec. 730.0155. ADMINISTRATIVE PENALTY FOR MISUSE OF
PERSONAL INFORMATION. (a) A recipient of personal information may
not use personal information in a manner not authorized by Section
730.007(a)(2).
(b) In addition to any other penalties provided by this
chapter, the Texas Department of Motor Vehicles may impose an
administrative penalty on a recipient of personal information who
violates Subsection (a). The recipient is liable to the department
for an administrative penalty of $100 for each motor vehicle record
used in violation of Subsection (a), provided that the total amount
assessed may not exceed:
(1) $50,000, except as provided by Subdivision (2); or
(2) $100,000, if the recipient has previously been
assessed an administrative penalty under this subsection for a
violation that occurred within five years before the date of the
violation that is the subject of the penalty.
(c) A proceeding to impose an administrative penalty under
this section is subject to Chapter 2001, Government Code.
(d) An administrative penalty collected under this section
shall be deposited to the credit of the Texas Department of Motor
Vehicles fund.
Sec. 730.017. BREACH OF SYSTEM SECURITY. (a) In this
section, "breach of system security" has the meaning assigned by
Section 521.053, Business & Commerce Code.
(b) A recipient of personal information under this chapter:
(1) shall take measures in response to a breach of
system security to contain the unauthorized acquisition of personal
information to the best of the person's abilities; and
(2) is liable for damages resulting from the breach of
system security.
SECTION 3. Section 730.0155, Transportation Code, as added
by this Act, applies only to a violation that occurs on or after the
effective date of this Act. A violation that occurs before the
effective date of this Act is governed by the law in effect on the
date the violation occurred, and the former law is continued in
effect for that purpose.
SECTION 4. Section 730.017, Transportation Code, as added
by this Act, applies 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 at the time the breach occurred, and
that law is continued in effect for that purpose.
SECTION 5. This Act takes effect September 1, 2017.