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Texas Business and Commerce Code - BUS & COM § 72.004. Disposal of Business Records Containing Personal Identifying Information

Current as of January 01, 2024 | Updated by Findlaw Staff

(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 or 602.001, 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.

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Cite this article: FindLaw.com - Texas Business and Commerce Code - BUS & COM § 72.004. Disposal of Business Records Containing Personal Identifying Information - last updated January 01, 2024 | https://codes.findlaw.com/tx/business-and-commerce-code/bus-com-sect-72-004/

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