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.