Texas Business & Commerce Code - Section 35.48. Retention And Disposal Of Business Records
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Texas Laws > Business & Commerce Code > Texas Business & Commerce Code - Section 35.48. Retention And Disposal Of Business Records
Section: 35.41 35.42 35.44 35.45 35.455 35.46 35.47 35.48 35.49 35.50 35.51 35.52 35.53 35.531 35.54
§ 35.48. RETENTION AND DISPOSAL OF BUSINESS RECORDS. (a)
In this section:
(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:
(F) magnetic impulse;
(G) mechanical or electronic recording;
(H) digitized optical image; or
(I) another form of data compilation.
(1-a) "Personal identifying information" means an
individual's first name or initial and last name in combination
with any one or more of the following items:
(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 print, and retina or iris image;
(E) unique electronic identification number,
address, or routing code;
(F) telecommunication access device, including
debit and credit card information; or
(G) financial institution account number or any
other financial information.
(2) "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) photograph, including an enlargement or
(C) mechanical or electronic rerecording;
(D) chemical reproduction;
(E) digitized optical image; or
(F) another technique that accurately reproduces
(3) "Telecommunication access device" has the meaning
assigned by Section 32.51, Penal Code.
(b) A business record required to be kept by state law may be
destroyed at any time after the third anniversary of the date the
record was created unless a law or regulation applicable to the
business record prescribes a different retention period or
procedure for disposal.
(c) A state law requiring retention of a business record is
satisfied by retention of a reproduction of the business record.
(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.
(e) A business is considered to comply 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
(f) A business that does not dispose of a business record of
a customer in the manner required by Subsection (d) is liable for a
civil penalty of up to $500 for each record. The attorney general
may bring an action against the business to:
(1) recover the civil penalty;
(2) obtain any other remedy, including injunctive
(3) recover costs and reasonable attorney's fees
incurred in bringing the action.
(g) A business that modifies a record as required by
Subsection (d) in good faith is not liable for a civil penalty under
Subsection (f) if the record is reconstructed, in whole or in part,
through extraordinary means.
(h) Subsection (d) does not require a business to modify a
(1) the business is required to retain the record
under other law; or
(2) the record is historically significant and:
(A) there is no potential for identity theft or
fraud while the record is in the custody of the business; or
(B) the record is transferred to a professionally
managed historical repository.
(i) Subsection (d) 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.
Added by Acts 1989, 71st Leg., ch. 955, § 1, eff. June 15, 1989.
Renumbered from § 35.47 by Acts 1990, 71st Leg., 6th C.S., ch.
12, § 2(2), eff. Sept. 6, 1990. Amended by Acts 1991, 72nd Leg.,
ch. 472, § 1, eff. Aug. 26, 1991; Acts 1995, 74th Leg., ch. 735,
§ 3, eff. Sept. 1, 1995; Acts 2005, 79th Leg., ch. 935, § 1 to
3, eff. Sept. 1, 2005.
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Last modified: August 11, 2007