Texas 2019 - 86th Regular

Texas Senate Bill SB120 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R1445 JSC-D
2	2	By: West S.B. No. 120
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to criminal history record information obtained or
8	8	disseminated by certain private entities; providing a civil
9	9	penalty.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 411.0851, Government Code, is amended by
12	12	amending Subsections (a) and (b) and adding Subsections (a-1) and
13	13	(d) to read as follows:
14	14	(a) This section applies only to a [A] private entity that:
15	15	(1) compiles and disseminates for compensation
16	16	criminal history record information of individuals; and
17	17	(2) provides the information described by Subdivision
18	18	(1) to a customer on request without verifying the information
19	19	after receipt of the request.
20	20	(a-1) A private entity described by Subsection (a) shall
21	21	destroy and may not disseminate any information in the possession
22	22	of the entity with respect to which the entity has received a
23	23	certified or noncertified copy of the order showing or notice from
24	24	the department that:
25	25	(1) an order of expunction has been issued under
26	26	Article 55.02, Code of Criminal Procedure; or
27	27	(2) an order of nondisclosure of criminal history
28	28	record information has been issued under Subchapter E-1.
29	29	(b) Except as otherwise provided by federal law [Unless the
30	30	entity is regulated by the federal Fair Credit Reporting Act (15
31	31	U.S.C. Section 1681 et seq.) or the Gramm-Leach-Bliley Act (15
32	32	U.S.C. Sections 6801 to 6809)], a private entity described by
33	33	Subsection (a) that purchases or otherwise obtains criminal history
34	34	record information that originates from the department, a custodian
35	35	of court records, or [from] another governmental agency or entity
36	36	in this state:
37	37	(1) may disseminate that information:
38	38	(A) [only] if, within the 60-day [90-day] period
39	39	preceding the date of dissemination, the entity verifies [:
40	40	[(A) originally obtains] that the information was
41	41	obtained from or verified by the department, a custodian of court
42	42	records, or another governmental agency or entity in this state
43	43	within that same 60-day period; or
44	44	(B) with a notice [receives] that the information
45	45	was received from the governmental source more than 60 days before
46	46	the date it is being provided and may not reflect the current state
47	47	of the criminal history record information and should be verified
48	48	before taking any action based on the information, to:
49	49	(i) a law enforcement agency; or
50	50	(ii) an investigations agency licensed
51	51	under Chapter 1702, Occupations Code, or similar statute of another
52	52	state or a consumer reporting agency for a purpose regulated under
53	53	the federal Fair Credit Reporting Act (15 U.S.C. Section 1681 et
54	54	seq.), if the recipient of the information has certified in writing
55	55	that the information will be used exclusively for the purpose of
56	56	generating investigative leads and will not be shared with any
57	57	other party unless verified as accurate and up to date under Section
58	58	20.071, Business & Commerce Code [as updated record information to
59	59	its database]; and
60	60	(2) shall on a quarterly basis notify the department
61	61	of the name and contact information of each similar entity to which
62	62	[if] the entity sold [sells] any compilation of the information in
63	63	the previous quarter [to another similar entity].
64	64	(d) Information reported to the department under Subsection
65	65	(b)(2) is not subject to Chapter 552.
66	66	SECTION 2. Subchapter F, Chapter 411, Government Code, is
67	67	amended by adding Sections 411.0852, 411.0853, 411.0854, and
68	68	411.0855 to read as follows:
69	69	Sec. 411.0852. ACCESS TO CRIMINAL HISTORY RECORD
70	70	INFORMATION MAINTAINED BY PRIVATE ENTITY; DISPUTES OF ACCURACY.
71	71	(a) On written request by a person who is the subject of criminal
72	72	history record information maintained by a private entity described
73	73	by Section 411.0851(a), the entity shall provide to the person a
74	74	copy of all records regarding that person maintained by the entity
75	75	not later than the 30th business day after the receipt of the
76	76	request.
77	77	(b) A person is entitled to receive one copy of the person's
78	78	criminal history record information pursuant to a request under
79	79	Subsection (a) at no charge to the person each calendar year. An
80	80	entity described by Section 411.0851(a) may charge a reasonable fee
81	81	for subsequent copies requested by the person within a calendar
82	82	year.
83	83	(c) If a person disputes the accuracy of any portion of the
84	84	person's criminal history record information maintained by a
85	85	private entity described by Section 411.0851(a), the person may
86	86	submit a written request to the entity for verification along with
87	87	any supporting documentation, including a copy of a court order, if
88	88	applicable. On receipt of a written request under this subsection,
89	89	the entity shall promptly initiate an investigation into the
90	90	accuracy of the disputed information. Not later than the 30th day
91	91	after the date the written request is received, the entity shall
92	92	complete the investigation, notify the person who is the subject of
93	93	the disputed information of the outcome of the investigation, and
94	94	correct the information as applicable.
95	95	(d) If a person disputes the criminal history record
96	96	information maintained by a private entity described by Section
97	97	411.0851(a) on the basis of an order of nondisclosure of criminal
98	98	history record information or an order of expunction, the person
99	99	may submit a written request to the entity for removal of the
100	100	person's information. Not later than the 15th day after receipt of
101	101	the request accompanied by a certified or uncertified copy of the
102	102	court order, the entity shall remove the information that is the
103	103	subject of the court order.
104	104	(e) A private entity described by Section 411.0851(a) that
105	105	fails to comply with Subsection (c) or (d) is liable for any damages
106	106	that are sustained as a result of the violation by the person who is
107	107	the subject of that information. A person who prevails in an action
108	108	brought under this subsection is also entitled to recover court
109	109	costs and reasonable attorney's fees.
110	110	Sec. 411.0853. PUBLIC DISCLOSURES BY PRIVATE ENTITIES;
111	111	CIVIL PENALTY. (a) Each private entity described by Section
112	112	411.0851(a) shall, not later than the 30th day after the date the
113	113	entity begins doing business in this state, disclose the entity's
114	114	name and contact information to the department in the form and
115	115	manner prescribed by the department.
116	116	(b) Disclosures required under this section are subject to
117	117	Chapter 552. The department shall publish the disclosures required
118	118	under this section on the department's Internet website.
119	119	(c) The department shall adopt rules to implement this
120	120	section.
121	121	(d) An entity that fails to comply with Subsection (a) is
122	122	liable to the state for a civil penalty of $500 for each violation.
123	123	Each day the violation continues constitutes a separate violation
124	124	for purposes of this subsection.
125	125	(e) At the request of the department, the attorney general
126	126	may bring an action to recover the civil penalty authorized by
127	127	Subsection (d). The attorney general and the department may
128	128	recover reasonable expenses incurred in obtaining the civil
129	129	penalty, including court costs, reasonable attorney's fees,
130	130	investigation costs, witness fees, and deposition expenses.
131	131	(f) A civil penalty collected under Subsection (d) shall be
132	132	deposited in the state treasury to the credit of the department for
133	133	the administration of this chapter.
134	134	Sec. 411.0854. DISCLOSURES BY PRIVATE ENTITIES TO
135	135	PURCHASERS OR OTHER RECIPIENTS. A private entity described by
136	136	Section 411.0851(a) shall disclose to each purchaser or recipient
137	137	of criminal history record information at the time the information
138	138	is provided:
139	139	(1) the name of the governmental entity from which the
140	140	information originated; and
141	141	(2) the date on which the information was last
142	142	received from or updated by the governmental entity.
143	143	Sec. 411.0855. DUTIES OF PURCHASER OR RECIPIENT OF CRIMINAL
144	144	HISTORY RECORD INFORMATION USED FOR EMPLOYMENT, LICENSING, OR
145	145	HOUSING. (a) In this section, "adverse decision" means a decision
146	146	to disqualify an individual or otherwise negatively affect the
147	147	eligibility of an individual for employment, licensing, or housing.
148	148	(b) A person who purchases, accesses, or otherwise receives
149	149	criminal history record information and uses the information as the
150	150	basis for an adverse decision regarding the individual who is the
151	151	subject of the information shall disclose to that individual the
152	152	name and contact information of the entity from which the person
153	153	received the information.
154	154	SECTION 3. Subchapter C, Chapter 20, Business & Commerce
155	155	Code, is amended by adding Section 20.071 to read as follows:
156	156	Sec. 20.071. FURNISHING OF CONSUMER REPORT FOR EMPLOYMENT
157	157	OR HOUSING PURPOSES; EXCEPTION FOR NATIONAL SECURITY
158	158	INVESTIGATION. (a) This section does not apply to the furnishing
159	159	of a consumer report to an agency or department of the federal
160	160	government that seeks to obtain and use the report for employment
161	161	purposes and whose agency or department head makes a written
162	162	finding as prescribed by 15 U.S.C. Section 1681b(b)(4)(A).
163	163	(b) A consumer reporting agency that compiles and reports
164	164	information related to a consumer's criminal history for purposes
165	165	of furnishing a consumer report for employment or housing purposes
166	166	shall implement and maintain strict procedures designed to ensure
167	167	that the criminal history record information reported is complete
168	168	and up to date. For purposes of this subsection, criminal history
169	169	record information contained in a consumer report is considered:
170	170	(1) complete if the information reflects:
171	171	(A) the offense alleged;
172	172	(B) the jurisdiction in which the criminal
173	173	history record information originated;
174	174	(C) the date of the arrest or filing of criminal
175	175	charges;
176	176	(D) the current status of any criminal case
177	177	proceeding, if charges have been filed; and
178	178	(E) the disposition of the case and the date of
179	179	that disposition, if applicable; and
180	180	(2) up to date if the information related to an arrest,
181	181	filing of criminal charges, or conviction or other disposition of
182	182	the case reflects the most recent public record status of the
183	183	information described by Subdivision (1) at the time the consumer
184	184	report is requested.
185	185	SECTION 4. (a) Section 411.0851, Government Code, as
186	186	amended by this Act, applies only to information disseminated on or
187	187	after the effective date of this Act. Information disseminated
188	188	before the effective date of this Act is governed by the law in
189	189	effect on the date the information was disseminated, and the former
190	190	law is continued in effect for that purpose.
191	191	(b) Not later than October 1, 2019, a private entity that
192	192	compiles and disseminates for compensation criminal history record
193	193	information shall submit the initial quarterly notification under
194	194	Section 411.0851, Government Code, as amended by this Act.
195	195	(c) The Department of Public Safety of the State of Texas
196	196	shall adopt rules to implement Section 411.0853, Government Code,
197	197	as added by this Act, not later than January 1, 2020.
198	198	(d) An entity subject to Section 411.0853, Government Code,
199	199	as added by this Act, is not required to submit the initial
200	200	disclosures required under that section before February 1, 2020.
201	201	(e) Section 411.0854, Government Code, as added by this Act,
202	202	applies only to criminal history record information provided to a
203	203	purchaser or recipient on or after the effective date of this Act.
204	204	Criminal history record information provided to a purchaser or
205	205	recipient before the effective date of this Act is governed by the
206	206	law in effect on the date the information was provided, and the
207	207	former law is continued in effect for that purpose.
208	208	(f) Section 411.0855, Government Code, as added by this Act,
209	209	applies only to criminal history record information purchased,
210	210	accessed, received, or otherwise used on or after the effective
211	211	date of this Act. Criminal history record information purchased,
212	212	accessed, received, or otherwise used before the effective date of
213	213	this Act is governed by the law in effect on the date the
214	214	information was purchased, accessed, received, or otherwise used,
215	215	and the former law is continued in effect for that purpose.
216	216	SECTION 5. This Act takes effect September 1, 2019.