CHAPTER 72. BUSINESS RECORDS

BUSINESS AND COMMERCE CODE

TITLE 5. REGULATION OF BUSINESSES AND SERVICES

SUBTITLE A. GENERAL PRACTICES

CHAPTER 72. BUSINESS RECORDS

SUBCHAPTER A. DISPOSAL OF CERTAIN BUSINESS RECORDS

Sec. 72.001. DEFINITIONS. In this subchapter:

(1) "Business record" means letters, words, sounds, or numbers,

or the equivalent of letters, words, sounds, or numbers, recorded

in the operation of a business by:

(A) handwriting;

(B) typewriting;

(C) printing;

(D) photostat;

(E) photograph;

(F) magnetic impulse;

(G) mechanical or electronic recording;

(H) digitized optical image; or

(I) another form of data compilation.

(2) "Personal identifying information" means an individual's

first name or initial and last name in combination with one or

more of the following:

(A) date of birth;

(B) social security number or other government-issued

identification number;

(C) mother's maiden name;

(D) unique biometric data, including the individual's

fingerprint, voice data, or retina or iris image;

(E) unique electronic identification number, address, or routing

code;

(F) telecommunication access device as defined by Section 32.51,

Penal Code, including debit or credit card information; or

(G) financial institution account number or any other financial

information.

(3) "Reproduction" means a counterpart of an original business

record produced by:

(A) production from the same impression or the same matrix as

the original;

(B) photography, including an enlargement or miniature;

(C) mechanical or electronic rerecording;

(D) chemical reproduction;

(E) digitized optical imaging; or

(F) another technique that accurately reproduces the original.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 72.002. DESTRUCTION OF CERTAIN BUSINESS RECORDS. (a) A

business record required to be retained by a law of this state

may be destroyed at any time after the third anniversary of the

date the business record was created.

(b) Subsection (a) does not apply if a law or rule applicable to

the business record prescribes a different retention period or

procedure for disposal.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 72.003. RETENTION OF REPRODUCTION OF BUSINESS RECORDS. A

law of this state that requires retention of a business record is

satisfied by retention of a reproduction of the original record.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 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 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

SUBCHAPTER B. DELETION OF CERTAIN RECORDS OR INFORMATION RELATING

TO CUSTOMERS' CHECKS

Sec. 72.051. REQUIRED DELETION OF CERTAIN ELECTRONIC RECORDS.

(a) In this section, "law enforcement agency" has the meaning

assigned by Article 59.01, Code of Criminal Procedure.

(b) This section applies only to a business that accepts checks

from customers in the ordinary course of business. This section

does not apply to a financial institution as defined by 31 U.S.C.

Section 5312(a)(2), as amended.

(c) A business shall delete any electronic record indicating

that a customer has issued a dishonored check or any other

information except for a checking account number or bank routing

transit number on which the business bases a refusal to accept a

check from a customer. The record must be deleted not later than

the 30th day after the date:

(1) the customer and the business agree that the information

contained in the electronic record is incorrect; or

(2) the customer presents to the business:

(A) a copy of a report filed by the customer with a law

enforcement agency stating that the dishonored check was

unauthorized; and

(B) a written statement of the customer indicating that the

dishonored check was unauthorized.

(d) A business that violates Subsection (c) is liable to this

state for a civil penalty in an amount not to exceed $1,000. The

attorney general may:

(1) bring an action to recover the civil penalty; and

(2) recover reasonable expenses incurred in recovering the

penalty, including court costs, reasonable attorney's fees,

investigative costs, witness fees, and deposition expenses.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.