HBA-TYH H.B. 611 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 611
By: Janek
Business & Industry
2/15/1999
Introduced



BACKGROUND AND PURPOSE 

Consumer reporting agencies engage in the practice of assembling or
evaluating consumer credit information or other information on consumers in
order to furnish consumer reports to third parties for monetary fees.  Such
agencies have on occasion released crucial personal information such as
name, address, telephone number, driver's license number, and social
security number, which has been used by third parties to commit fraud.
H.B.  611 protects the confidentiality of a customer's personal information
and provides a criminal penalty for breach of confidentiality. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 35, Business and Commerce Code, by adding
Subchapter J, as follows: 

SUBCHAPTER J.  CONFIDENTIALITY OF CERTAIN PERSONAL 
INFORMATION  PROVIDED BY CUSTOMER TO BUSINESS

Sec. 35.111.  DEFINITIONS.  Defines "consumer report agency" and "personal
information." 

Sec. 35.112.  CONFIDENTIALITY OF PERSONAL INFORMATION.  Prohibits a
business from disclosing personal information in a customer's account
records if the customer requests that the business keep the information
confidential, except as provided by Section 35.114. Authorizes the customer
to request confidentiality by delivering to the business an appropriately
marked form provided under Section 35.113(a) or any other written request
for confidentiality.  Authorizes the customer to rescind a request for
confidentiality by providing the business written permission to disclose
personal information. 

Sec. 35.113.  NOTICE; REQUESTS.  Requires a business to include, with any
bill sent or application it provides to a customer, a notice of the
customer's right to request confidentiality of personal  information and a
form by which the customer may request confidentiality by marking an
appropriate box on the form and returning it to the business. Requires a
business that reports a customer's credit information to a consumer
reporting agency to provide to the agency a copy of any written request for
confidentiality made by the customer. 

Sec. 35.114.  EXCEPTIONS.  Provides that this chapter does not prohibit a
business from disclosing personal information in a customer's account
records to an official or employee of the state, a political subdivision of
the state, or the federal government acting in an official capacity, a
consumer reporting agency, a person for whom the customer has contractually
waived confidentiality for personal information, or a person to whom the
disclosure of the information is required by law. 

 Sec.  35.115.  USE OF PERSONAL INFORMATION OBTAINED BY CONSUMER REPORTING
AGENCY.  Prohibits a consumer reporting agency from disclosing confidential
personal information under this subchapter for a purpose unrelated to the
furnishing of a consumer report to a third party unless disclosure of the
information is made to a person described by Section 35.114 of this code. 

Sec.  35.116.  PENALTY.  Provides that a person commits a Class B
misdemeanor if the person discloses confidential personal information in
violation of this subchapter.   

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.