Texas Information Disposal Act (HB 698)Effective September 2005, Texas amended the Texas Business and Commerce Code adding document retention and disposal requirements. It requires that records containing personally identifying information to be shredded, erased or destroyed by other means prior to disposal.
Does Texas Information Disposal Act (HB 698) Apply To You?If you are a Texas business and collect personally identifying information, HB 698 applies to you. It doesn't matter when you've collected the information, HB 698 applies to all records created before, on or after September 1, 2005.
698(3) (d) 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 to make it unreadable or undecipherable.
698(3) (e) A business is in compliance with Subsection (d) 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 Subsection (d).
Does Texas Information Disposal Act (HB 698) Have Teeth?A your business doesn't dispose of documents accordingly, you are liable for a civil penalty of up to $500 for each record. Additionally, the Texas Attorney General can bring action against the business and:
698(3) (f). (1) recover the civil penalty; (2) obtain any other remedy, including injunctive relief; and (3) recover costs and reasonable attorneys’ fees incurred in bringing the action.
A business that modifies its documents in good faith is not liable for a civil penalty even if the record is reconstructed, in whole or in part, by extraordinary means.
What To Do?Don't get caught being careless with your customers sensitive information. Smarter Shredding can help you secure all confidential documents until it's time for your regular shredding service. At that time, we can securely shred and destroy all of your customers confidential documents, including paper documents, cd's, dvd's, thumb drives, computer backups, hard drives and any other format you may have stored this information on.
Call Smarter Shredding at (844) 392-7473 To Speak To A Professional or Schedule Service
Texas State Websitehttp://www.capitol.state.tx.us/tlodocs/79R/billtext/html/HB00698F.htm
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