INSURANCE CODE - NOT CODIFIED
CHAPTER 28A. PRIVACY
SUBCHAPTER A. GENERAL PROVISIONS
Art. 28A.01. Definitions
In this chapter:
(1) "Affiliate" means any company that controls, is controlled by,
or is under common control with another company; and the term
"control," including the terms "controls," "controlled by," and
"under common control," has the meaning assigned that term by
Section 2(d), Article 21.49-1, of this code.
(2) "Authorization" has the meaning assigned by Section 82.001 of
this code.
(3) "Covered entity" means an individual or entity who receives an
authorization from the department. The term includes any
individual or entity described by Section 82.002 of this code.
(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 2001, 77th Leg., ch. 936, Sec. 1, eff. June 14, 2001.
Art. 28A.02. 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
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 2001, 77th Leg., ch. 936, Sec. 1, eff. June 14, 2001.
Art. 28A.03. Exception
Article 28A.02(a) of this code does not apply to a covered entity to
the extent that the entity is acting solely as the insurance agent,
employee, or other authorized representative for another covered
entity.
Added by Acts 2001, 77th Leg., ch. 936, Sec. 1, eff. June 14, 2001.
Art. 28A.04. Health Information
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 any laws
or rules of this state related to the privacy of individually
identifiable health information under the federal Health Insurance
Portability and Accountability Act of 1996 (42 U.S.C. Section 1320d
et seq.), as amended.
Added by Acts 2001, 77th Leg., ch. 936, Sec. 1, eff. June 14, 2001.
SUBCHAPTER B. DEPARTMENT POWERS AND DUTIES
Art. 28A.51. Rulemaking Authority
(a) The commissioner shall adopt rules to implement this chapter.
(b) The commissioner shall adopt any other rules necessary to carry
out 15 U.S.C. Subchapter I, Chapter 94 (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.
(c) In adopting rules under this chapter, the commissioner shall
attempt to keep state privacy requirements consistent with federal
regulations adopted under 15 U.S.C. Subchapter I, Chapter 94 (15
U.S.C. Section 6801 et seq.), as amended.
Added by Acts 2001, 77th Leg., ch. 936, Sec. 1, eff. June 14, 2001.
Art. 28A.52. Standards
The department shall implement standards as required by 15 U.S.C.
Section 6805(b), as amended.
Added by Acts 2001, 77th Leg., ch. 936, Sec. 1, eff. June 14, 2001.
SUBCHAPTER C. ENFORCEMENT
Art. 28A.101. Duty to Enforce
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 2001, 77th Leg., ch. 936, Sec. 1, eff. June 14, 2001.
Art. 28A.102. Injunctive 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 the injunctive relief provided by Subsection (a)
of this article, the attorney general, after conferring with the
commissioner, may institute an action for civil penalties against a
covered entity or a nonaffiliated third party for a violation of
this chapter. A civil penalty assessed under this article may not
exceed $3,000 for each violation.
(c) If the court in which an action under Subsection (b) of this
article is pending finds that the violations have occurred with a
frequency as to constitute 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 article, 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 2001, 77th Leg., ch. 936, Sec. 1, eff. June 14, 2001.
