HBA-CCH C.S.H.B. 678 77(R)    BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 678
By: McCall
Business & Industry
3/11/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

It is foreseeable that transactions that now require a password or some
other form of identification will utilize biometric technology in the
future.  Biometric technology is considered by some as the ultimate
identifier.  C.S.H.B. 678 protects the confidentiality of biometric
information of an individual by prohibiting the sale, lease, or disclosure
of the information.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

C.S.H.B. 678 amends the Business & Commerce and Government codes relating
to the  capture and use of a biometric identifier, which is a retina or
iris scan, fingerprint, voiceprint, or record of hand or face geometry.
The bill prohibits a person from capturing a biometric identifier of an
individual for a commercial purpose without informed consent.  The bill
also prohibits a person or governmental body from selling, leasing, or
disclosing a biometric identifier unless the individual consents, the
disclosure completes a financial transaction requested by the individual,
the disclosure is required or permitted by a federal or state statute, or
the disclosure is made for law enforcement purposes.  A person or
governmental body is required to store, transmit, and protect the biometric
identifier from disclosure using reasonable care and a manner that is at
least as protective as other confidential information.  The bill provides
that a person who violates these provisions is subject to a civil penalty
of not more than $25,000 that the attorney general is authorized to
recover.  A governmental body that possesses a biometric identifier is
exempt from disclosure under the public information law. 

EFFECTIVE DATE

September 1, 2001.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 678 modifies the original by prohibiting a person from capturing
an individual's biometric identifier, rather than prohibiting a person or
governmental body from making a voiceprint of an individual, without the
individual's informed consent.  The substitute also prohibits a person from
selling, leasing, or disclosing the biometric identifier of an individual
unless the disclosure completes a financial transaction requested by the
individual.