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  S.B. No. 1213
 
 
 
 
AN ACT
  relating to prohibiting the reidentification of certain
  deidentified information and the release of reidentified
  information; creating a criminal offense; providing a civil
  penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle A, Title 11, Business & Commerce Code,
  is amended by adding Chapter 506 to read as follows:
  CHAPTER 506. REIDENTIFICATION OF DEIDENTIFIED INFORMATION
         Sec. 506.001.  DEFINITIONS. In this chapter:
               (1)  "Covered information" means deidentified
  information released by a board, commission, department, or other
  agency of this state, including an institution of higher education
  as defined by Section 61.003, Education Code, or a hospital that is
  maintained or operated by the state.
               (2)  "Deidentified information" means information with
  respect to which the holder of the information has made a good faith
  effort to remove all personal identifying information or other
  information that may be used by itself or in combination with other
  information to identify the subject of the information. The term
  includes aggregate statistics, redacted information, information
  for which random or fictitious alternatives have been substituted
  for personal identifying information, and information for which
  personal identifying information has been encrypted and for which
  the encryption key is maintained by a person otherwise authorized
  to have access to the information in an identifiable format.
               (3)  "Personal identifying information" has the
  meaning assigned by Section 521.002(a)(1).
         Sec. 506.002.  REQUIRED NOTICES. (a)  An agency of this
  state shall provide written notice to a person to whom the agency
  releases deidentified information that the information is
  deidentified information.
         (b)  A person who sells covered information or otherwise
  receives compensation for the transfer or disclosure of covered
  information shall provide written notice to the person to whom the
  information is sold, transferred, or disclosed that the information
  is deidentified information obtained from an agency of this state.
         Sec. 506.003.  PROHIBITED ACTS. (a)  A person may not:
               (1)  reidentify or attempt to reidentify personal
  identifying information about an individual who is the subject of
  covered information; or
               (2)  knowingly disclose or release covered information
  that was reidentified in violation of this section.
         (b)  It is a defense to a civil action or prosecution for a
  violation of this section that:
               (1)  the person:
                     (A)  was reidentifying the covered information
  for the purpose of a study or other scholarly research, including
  performing an evaluation or test of software intended to deidentify
  information; and
                     (B)  did not release or publish the names or other
  information identifying any subjects of the reidentified covered
  information; or
               (2)  the person obtained informed, written consent from
  the individual who is the subject of the covered information that
  specifically referenced the information to be reidentified,
  disclosed, or released, and authorized the reidentification,
  disclosure, or release of that information.
         Sec. 506.004.  OFFENSE. (a)  A person who violates Section
  506.003 commits an offense.
         (b)  An offense under this section is a Class A misdemeanor.
         Sec. 506.005.  PRIVATE CAUSE OF ACTION. A person who
  violates Section 506.003 is liable to the individual who is the
  subject of the covered information for statutory damages in an
  amount of not less than $25 or more than $500 for each violation,
  not to exceed a total amount of $150,000.
         Sec. 506.006.  CIVIL PENALTY. (a)  In addition to other
  penalties and remedies assessed or recovered under this chapter, a
  person who violates Section 506.003 is liable to this state for a
  civil penalty in an amount of not less than $25 or more than $500 for
  each violation, not to exceed a total amount of $150,000.
         (b)  The attorney general may bring an action to recover a
  civil penalty under this section.
         (c)  The attorney general is entitled to recover reasonable
  expenses incurred in bringing an action under this section,
  including reasonable attorney's fees, court costs, and
  investigatory costs.
         SECTION 2.  The change in law made by this Act applies to
  conduct that occurs on or after the effective date of this Act.
  Conduct that occurs before the effective date of this Act is
  governed by the law in effect on the date the conduct occurred, and
  the former law is continued in effect for that purpose.
         SECTION 3.  This Act takes effect September 1, 2015.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1213 passed the Senate on
  April 20, 2015, by the following vote: Yeas 30, Nays 0; and that
  the Senate concurred in House amendment on May 29, 2015, by the
  following vote: Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1213 passed the House, with
  amendment, on May 26, 2015, by the following vote: Yeas 142,
  Nays 0, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor