By: West S.B. No. 1185     A BILL TO BE ENTITLED   AN ACT   relating to criminal history record information obtained or   disseminated by certain private entities; providing a civil   penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 411.0851, Government Code, is amended by   amending Subsections (a) and (b) and adding Subsections (a-1) and   (d) to read as follows:          (a)  This section applies only to a  [A] private entity that:                (1)  compiles and disseminates for compensation   criminal history record information of individuals; and                (2)  provides the information described by Subdivision   (1) to a customer on request without verifying the information   after receipt of the request.          (a-1)  A private entity described by Subsection (a) shall   destroy and may not disseminate any information in the possession   of the entity with respect to which the entity has received a   certified or noncertified copy of the order showing or notice from   the department that:                (1)  an order of expunction has been issued under   Article 55.02, Code of Criminal Procedure; or                (2)  an order of nondisclosure of criminal history   record information has been issued under Subchapter E-1.          (b)  Except as otherwise provided by federal law [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 that originates from the department, a custodian   of court records, or [from] another governmental agency or entity   in this state:                (1)  may disseminate that information:                      (A)  [only] if, within the 60-day [90-day] period   preceding the date of dissemination, the entity verifies[:                      [(A) originally obtains] that the information was   obtained from or verified by the department, a custodian of court   records, or another governmental agency or entity in this state   within that same 60-day period; or                      (B)  with a notice [receives] that the information   was received from the governmental source more than 60 days before   the date it is being provided and may not reflect the current state   of the criminal history record information and should be verified   before taking any action based on the information, to:                            (i)  a law enforcement agency; or                            (ii)  an investigations agency licensed   under Chapter 1702, Occupations Code, or similar statute of another   state or a consumer reporting agency for a purpose regulated under   the federal Fair Credit Reporting Act (15 U.S.C. Section 1681 et   seq.), if the recipient of the information has certified in writing   that the information will be used exclusively for the purpose of   generating investigative leads and will not be shared with any   other party unless verified as accurate and up to date under Section   20.071, Business & Commerce Code [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].          (d)  Information reported to the department under Subsection   (b)(2) is not subject to Chapter 552.          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 described   by Section 411.0851(a), the entity shall provide to the person a   copy of all records regarding that person 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 Section 411.0851(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 a   private entity described by Section 411.0851(a), the person may   submit a written request to the entity for verification along with   any supporting documentation, including a copy of a court order, if   applicable. 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)  If a person disputes the criminal history record   information maintained by a private entity described by Section   411.0851(a) on the basis of an order of nondisclosure of criminal   history record information or an order of expunction, the person   may submit a written request to the entity for removal of the   person's information. Not later than the 15th day after receipt of   the request accompanied by a certified or uncertified copy of the   court order, the entity shall remove the information that is the   subject of the court order.          (e)  A private entity described by Section 411.0851(a) that   fails to comply with Subsection (c) or (d) 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 subsection 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 described by Section   411.0851(a) 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)  Disclosures required under this section are subject to   Chapter 552.  The department shall publish the disclosures required   under this section on the department's Internet website.          (c)  The department shall 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   may 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 described by   Section 411.0851(a) shall disclose to each purchaser or recipient   of criminal history record information at the time the information   is provided:                (1)  the name of the governmental entity from which the   information originated; and                (2)  the date on which the information was last   received from or updated by the governmental entity.          Sec. 411.0855.  DUTIES OF PURCHASER OR RECIPIENT OF CRIMINAL   HISTORY RECORD INFORMATION USED FOR EMPLOYMENT, LICENSING, OR   HOUSING.  (a)  In this section, "adverse decision" means a decision   to disqualify an individual or otherwise negatively affect the   eligibility of an individual for employment, licensing, or housing.          (b)  A person who purchases, accesses, or otherwise receives   criminal history record information and uses the information as the   basis for an adverse decision regarding the individual who is the   subject of the information shall disclose to that individual the   name and contact information of the entity from which the person   received the information.          SECTION 3.  Subchapter C, Chapter 20, Business & Commerce   Code, is amended by adding Section 20.071 to read as follows:          Sec. 20.071.  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:                      (A)  the offense alleged;                      (B)  the jurisdiction in which the criminal   history record information originated;                      (C)  the date of the arrest or filing of criminal   charges;                      (D)  the current status of any criminal case   proceeding, if charges have been filed; and                      (E)  the disposition of the case and the date of   that disposition, if applicable; and                (2)  up to date if the information related to an arrest,   filing of criminal charges, or conviction or other disposition of   the case reflects the most recent public record status of the   information described by Subdivision (1) at the time the consumer   report is requested.          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)  Not later than October 1, 2017, a private entity that   compiles and disseminates for compensation criminal history record   information shall submit the initial quarterly notification under   Section 411.0851, Government Code, as amended by this Act.          (c)  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, 2018.          (d)  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, 2018.          (e)  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.          (f)  Section 411.0855, Government Code, as added by this Act,   applies only to criminal history record information purchased,   accessed, received, or otherwise used on or after the effective   date of this Act. Criminal history record information purchased,   accessed, received, or otherwise used before the effective date of   this Act is governed by the law in effect on the date the   information was purchased, accessed, received, or otherwise used,   and the former law is continued in effect for that purpose.          SECTION 5.  This Act takes effect September 1, 2017.