Virdell Bill Cuts Off Insurers From Texas Motor Vehicle Records

The text as introduced · 880 words

90R400 AND-D

By: Virdell
H.B. No. 1134

A BILL TO BE ENTITLED

AN ACT

relating to the disclosure of personal information associated with

a motor vehicle record for certain purposes.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 521.0475(a), Transportation Code, is

amended to read as follows:

(a) Except as provided by Subsection (b), the department

shall provide a certified abstract of a complete driving record of a

license holder, for a fee of $20, to the license holder or a person

eligible to receive the information under Section 730.007(a)

[ Sections 730.007(a)(2)(A), (D), and (I) ].

SECTION 2. Section 730.007(a), Transportation Code, is

amended to read as follows:

(a) Personal information obtained by an agency in

connection with a motor vehicle record may be disclosed to any

requestor by an agency if the requestor:

(1) provides the requestor's name and address and any

proof of that information required by the agency; and

(2) represents that the use of the personal

information will be strictly limited to:

(A) use by:

(i) a government agency, including any

court or law enforcement agency, in carrying out its functions; or

(ii) a private person or entity acting on

behalf of a government agency in carrying out the functions of the

agency;

(B) [ use in connection with a matter of:

[ (i) motor vehicle or motor vehicle

operator safety;

[ (ii) motor vehicle theft;

[ (iii) motor vehicle product alterations,

recalls, or advisories;

[ (iv) performance monitoring of motor

vehicles, motor vehicle parts, or motor vehicle dealers; or

[ (v) removal of nonowner records from the

original owner records of motor vehicle manufacturers;

[ (C) use in the normal course of business by a

legitimate business or an authorized agent of the business, but

only:

[ (i) to verify the accuracy of personal

information submitted by the individual to the business or the

agent of the business; and

[ (ii) if the information is not correct, to

obtain the correct information, for the sole purpose of preventing

fraud by, pursuing a legal remedy against, or recovering on a debt

or security interest against the individual;

[ (D) ] use in conjunction with a civil, criminal,

administrative, or arbitral proceeding in any court or government

agency or before any self-regulatory body, including service of

process, investigation in anticipation of litigation, execution or

enforcement of a judgment or order, or under an order of any court;

(C) [ (E) use in research or in producing

statistical reports, but only if the personal information is not

published, redisclosed, or used to contact any individual;

[ (F) use by an insurer, insurance support

organization, or self-insured entity, or an authorized agent of an

insurer, insurance support organization, or self-insured entity,

in connection with claims processing or investigation activities,

antifraud activities, rating, or underwriting;

[ (G) use in providing notice to an owner of a

vehicle that was towed or impounded and is in the possession of a

vehicle storage facility;

[ (H) use by a licensed private investigator

agency or licensed security service for a purpose permitted under

this section;

[ (I) ] use by an employer or an agent or insurer of

the employer to obtain or verify information relating to a holder of

a commercial driver's license that is required under 49 U.S.C.

Chapter 313;

(D) [ (J) use in connection with the operation of

a toll transportation facility or another type of transportation

project described by Section 370.003;

[ (K) use by a consumer reporting agency, as

defined by the Fair Credit Reporting Act (15 U.S.C. Section 1681 et

seq.), for a purpose permitted under that Act;

[ (L) use by a motor vehicle manufacturer,

dealership, or distributor, or an agent of or provider of services

to a motor vehicle manufacturer, dealership, or distributor, for

motor vehicle market research activities, including survey

research;

[ (M) ] use in the ordinary course of business by a

person or authorized agent of a person who:

(i) holds a salvage vehicle dealer license

issued under Chapter 2302, Occupations Code;

(ii) holds an independent motor vehicle

dealer or wholesale motor vehicle auction general distinguishing

number issued under Chapter 503 of this code;

(iii) holds a used automotive parts

recycler license issued under Chapter 2309, Occupations Code; or

(iv) is licensed by, registered with, or

subject to regulatory oversight by the Texas Department of Motor

Vehicles, the Texas Department of Banking, the Department of

Savings and Mortgage Lending, the Credit Union Department, the

Office of Consumer Credit Commissioner, the Texas Department of

Insurance, the Board of Governors of the Federal Reserve System,

the Office of the Comptroller of the Currency, the Federal Deposit

Insurance Corporation, the Consumer Financial Protection Bureau,

or the National Credit Union Administration; or

(E) [ (N) ] use by an employer, principal, general

contractor, nonprofit organization, charitable organization, or

religious institution to obtain or verify information relating to a

person who holds a driver's license or the driving history of a

person who holds a driver's license if the person is employed by,

works under a contract with, or volunteers for the employer,

principal, contractor, organization, or institution.

SECTION 3. Sections 730.007(a-2), (d), (e), and (h),

Transportation Code, are repealed.

SECTION 4. This Act takes effect September 1, 2027.