Bill Text: TX SB1185 | 2017-2018 | 85th Legislature | Engrossed

---

Bill Title: Relating to criminal history record information obtained or disseminated by certain private entities; providing a civil penalty.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Engrossed - Dead) 2017-05-16 - Referred to Business & Industry [SB1185 Detail]

Download: Texas-2017-SB1185-Engrossed.html

---

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.