CHAPTER 601. PRIVACY - Texas Statutes

INSURANCE CODE

TITLE 5. PROTECTION OF CONSUMER INTERESTS

SUBTITLE D. PRIVACY

CHAPTER 601. PRIVACY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 601.001. DEFINITIONS. In this chapter:

(1) "Affiliate" means a company that controls, is controlled by,

or is under common control with another company. For the purposes

of this subdivision, "control" has the meaning described by

Sections 823.005 and 823.151.

(2) "Authorization" has the meaning assigned by Section 82.001.

(3) "Covered entity" means an individual or entity that receives

an authorization from the department. The term includes an

individual or entity described by Section 82.002.

(4) "Nonaffiliated third party" means an entity that is not an

affiliate of, or related to by common ownership or affiliated by

corporate control with, the covered entity. The term does not

include a joint employee of the entity.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1,

2005.

Sec. 601.002. COMPLIANCE WITH FEDERAL LAW REQUIRED. (a) A

covered entity shall comply with 15 U.S.C. Sections 6802 and

6803, as amended, in the same manner as a financial institution

is required to comply under those sections.

(b) An entity that is a nonaffiliated third party in relation to

a covered entity shall comply with 15 U.S.C. Section 6802(c), as

amended.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1,

2005.

Sec. 601.003. EXEMPTION. Section 601.002(a) does not apply to a

covered entity to the extent that the entity is acting solely as

an insurance agent, employee, or other authorized representative

for another covered entity.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1,

2005.

Sec. 601.004. TREATMENT OF CERTAIN HEALTH INFORMATION; STRICTER

RULES NOT PRECLUDED. This chapter does not affect the authority

of the department or another state agency to adopt stricter rules

governing the treatment of health information by a covered entity

if another law gives the department or agency that authority,

including a law or rule of this state related to the privacy of

individually identifiable health information under Subtitle F,

Title II, Health Insurance Portability and Accountability Act of

1996 (42 U.S.C. Section 1320d et seq.), as amended.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1,

2005.

SUBCHAPTER B. DEPARTMENT POWERS AND DUTIES

Sec. 601.051. RULES. (a) The commissioner shall adopt:

(1) rules to implement this chapter; and

(2) any other rules necessary to carry out Subtitle A, Title V,

Gramm-Leach-Bliley Act (15 U.S.C. Section 6801 et seq.), as

amended, to make this state eligible to override federal

regulations as described by 15 U.S.C. Section 6805(c), as

amended.

(b) In adopting rules under this chapter, the commissioner shall

attempt to keep state privacy requirements consistent with

federal regulations adopted under Subtitle A, Title V,

Gramm-Leach-Bliley Act (15 U.S.C. Section 6801 et seq.), as

amended.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1,

2005.

Sec. 601.052. IMPLEMENTATION OF CERTAIN STANDARDS. The

department shall implement standards as required by 15 U.S.C.

Section 6805(b), as amended.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1,

2005.

SUBCHAPTER C. ENFORCEMENT

Sec. 601.101. ENFORCEMENT BY DEPARTMENT. The department shall

enforce 15 U.S.C. Sections 6801-6805, as amended, to the extent

required by 15 U.S.C. Section 6805, as amended, and this chapter.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1,

2005.

Sec. 601.102. INJUNCTIVE OR DECLARATORY RELIEF; CIVIL PENALTY.

(a) The attorney general, after conferring with the

commissioner, may institute an action for injunctive or

declaratory relief to restrain a violation of this chapter.

(b) In addition to instituting an action for injunctive relief

under Subsection (a), the attorney general, after conferring with

the commissioner, may institute an action for civil penalties

against a covered entity or nonaffiliated third party for a

violation of this chapter. A civil penalty assessed under this

section may not exceed $3,000 for each violation.

(c) If the court in which an action under Subsection (b) is

pending finds that violations of this chapter have occurred with

a frequency that constitutes a pattern or practice, the court may

assess a civil penalty not to exceed $250,000.

(d) If the attorney general substantially prevails in an action

for injunctive relief or a civil penalty under this section, the

attorney general may recover reasonable attorney's fees, costs,

and expenses incurred obtaining the relief or penalty, including

court costs and witness fees.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1,

2005.