House of Representatives

HB 2351

customer records; personal information; destruction

Sponsors: Representatives Giffords, Miranda, Chase, et al

DP	Committee on Commerce and Economic Development
W/D	Committee on Judiciary
DPA	Caucus and COW
X	As Passed the House

HB 2351 adds a new chapter to the Trade and Commerce statutes regarding customer records. The bill requires businesses to destroy customers’ personal information when the information will no longer be utilized by the business.

Provisions

· Defines personal information as any information that identifies, relates to or describes an individual or is associated with that individual (name, signature, social security number, physical characteristics, physical description, address, telephone number, passport number, driver license number, nonoperating identification license number, insurance policy number, education, employment, employment history, bank account number, credit card number, debit card number or any other financial information).

· Defines records as any information, written or spoken, that is recorded or preserved, excluding public directories.

· Requires businesses to take reasonable steps to destroy records containing personal information when the information will no longer be retained.

· Allows a customer to file a civil action to recover damages for a violation.

· States the available rights and remedies under this section of law are cumulative to each other and to any other available remedy.

HB 2351 passed the Committee on Commerce and Economic Development unamended.

HB was amended in the Committee of the Whole as follows:

· Added and defined Biometric Identifier and Dispose.

· Amends the definition of personal information by stating that personal information includes the person’s name and at least four of the following: mother’s maiden name, signature, social security number, biometric identifier, residence or mailing address, telephone number, passport number, dirver license number, nonoperating identification license number, insurance policy number, medical information, employment, employment history, birth date, bank account number, credit card number, debit card number or any other financial information.

· Specifies that a business shall not dispose of any records containing personal information unless the information is shredded, erased or otherwise modified making the information unreadable.

· States that a business is in violation for not properly destroying records prior to disposing them and upon a showing of actual financial harm and subject to the following:

1. Upon the first violation, that business shall be sent a written warning by certified mail return receipt requested. The warning shall identify the nature of the violation.

2. Upon any subsequent violation, that business shall be fined not more than $250 for each violation.

· Specifies that acts arising out of the same disposal activity or occurrence shall be a single violation.

· Establishes a class 1 misdemeanor for any person who knowing posses a record that was disposed of by a business.

· States that a person who uses personal information contained in records that was disposed of by a business is liable to the individual whose personal information is contained in the records and to the business for an amount of damages resulting from the use of the personal information.

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· 44th Legislature

· Second Regular Session 2 May 10, 2001

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