Tex.
Bus. & Com. Code Section 72.004
Disposal of Business Records Containing Personal Identifying Information
(a)
This section does not apply to:(1)
a financial institution as defined by 15 U.S.C. Section 6809; or(2)
a covered entity as defined by Section 601.001 (Definitions) or 602.001 (Definitions), Insurance Code.(b)
When a business disposes of a business record that contains personal identifying information of a customer of the business, the business shall modify, by shredding, erasing, or other means, the personal identifying information so as to make the information unreadable or undecipherable.(c)
A business is considered to comply with Subsection (b) if the business contracts with a person engaged in the business of disposing of records for the modification of personal identifying information on behalf of the business in accordance with that subsection.(d)
A business that disposes of a business record without complying with Subsection (b) is liable for a civil penalty in an amount not to exceed $500 for each business record. The attorney general may bring an action against the business to:(1)
recover the civil penalty;(2)
obtain any other remedy, including injunctive relief; and(3)
recover costs and reasonable attorney’s fees incurred in bringing the action.(e)
A business that in good faith modifies a business record as required by Subsection (b) is not liable for a civil penalty under Subsection (d) if the business record is reconstructed, wholly or partly, through extraordinary means.(f)
Subsection (b) does not require a business to modify a business record if:(1)
the business is required to retain the business record under another law; or(2)
the business record is historically significant and:(A)
there is no potential for identity theft or fraud while the business retains custody of the business record; or(B)
the business record is transferred to a professionally managed historical repository.
Source:
Section 72.004 — Disposal of Business Records Containing Personal Identifying Information, https://statutes.capitol.texas.gov/Docs/BC/htm/BC.72.htm#72.004 (accessed May 4, 2024).
