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SUBCHAPTER BB. FORMS PRIVACY NOTICE §§1.2801 ­ 1.2803

The Texas Department of Insurance proposes new §§1.2801 ­ 1.2803, Subchapter BB, concerning the forms privacy notice. These new sections are necessary to implement the provisions of House Bill 1922 enacted by the 77th Texas Legislature (2001), relating to the state government privacy policy requirements of Texas Government Code Chapter 559. These sections only apply to forms adopted directly or by reference under Title 28 of the Texas Administrative Code, and for which the department collects information about an individual by means of a form that the individual completes and files with the department in a paper format or in an electronic format including on the department's Internet site. The sections incorporate a standardized notice into those forms, thereby eliminating the need for departmental staff to separately amend each rule to include the notice required by Chapter 559. Ann Bright, Section Chief, Agency Counsel Section, Legal & Compliance, has determined that for each year of the first five years the proposed sections will be in effect, there will be no fiscal impact to state and local governments as a result of the enforcement or administration of the rule. There will be no measurable effect on local employment or the local economy as a result of the proposal.

Ms. Bright has also determined that for each year of the first five years the sections are in effect, the public benefits anticipated as a result of the proposed sections will be increased trust in state government and its agencies, and increased reliability and accuracy of the information maintained by the department. There will be no probable economic effect to either members of the public or to those persons regulated by the department since the sections do not require any compliance by either the public or regulated entities. There will also be no effect on small and micro businesses for the same reason.

To be considered, written comments on the proposal must be submitted no later than 5:00 p.m. on May 6, 2002 to Lynda H. Nesenholtz, General Counsel and Chief Clerk, Mail Code 113-2A, Texas Department of Insurance, P. O. Box 149104, Austin, Texas 78714-9104. An additional copy of the comment must be simultaneously submitted to Ann Bright, Section Chief, Agency Counsel Section, Legal & Compliance, Mail Code 110-1A, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104. A request for a public hearing should be submitted separately to the Office of the Chief Clerk.

The new sections are proposed under Texas Government Code Chapter 559 and Insurance Code §36.001. Texas Government Code §559.003 requires each state government body collecting information about an individual by means of a form that the individual completes and files with the governmental body in a paper format, or in an electronic format on an Internet site, to prominently state on the paper form certain statutorily required statements relating to the provision and correction of such information. Section 36.001 provides that the Commissioner of Insurance may adopt rules to execute the duties and functions of the Texas Department of Insurance as authorized by statute.

The following statutes are affected by this proposal: Texas Government Code Chapter 559 and §§552.021 and 552.023.

§1.2801. Purpose and Applicability. The purpose of these sections is to implement the state government privacy policy requirements of Texas Government Code Chapter 559. This subchapter only applies to forms adopted directly or by reference under this title, and for which the department collects information about an individual by means of a form that the individual completes and files with the department in a paper format or in an electronic format including on the department's Internet site.

§1.2802. Right To Be Informed About Information Collected. It is the policy of the department that an individual is entitled to be informed about information that the department collects about the individual unless the department is allowed to withhold the information from the individual pursuant to Government Code §552.023. §1.2803. Notice About Certain Information Laws and Practices.

(a) The following notice is hereby incorporated into all forms adopted directly or by reference under this title and for which the department collects information about an individual by means of a form that the individual completes and files with the department in a paper format or in an electronic format, including on the department's Internet site.

NOTICE ABOUT CERTAIN INFORMATION LAWS AND PRACTICES

With few exceptions, you are entitled to be informed about the information that the Texas Department of Insurance (TDI) collects about you. Under sections 552.021 and 552.023 of the Texas Government Code, you have a right to review or receive copies of information about yourself, including private information. However, TDI may withhold information for reasons other than to protect your right to privacy. Under section 559.004 of the Texas Government Code, you are entitled to request that TDI correct information that TDI has about you that is incorrect. For more information about the procedure and costs for obtaining information from TDI or about the procedure for correcting information kept by TDI, please contact the Agency Counsel Section of TDI´s Legal & Compliance Division at (512) 475-1757 or visit the Corrections Procedure section of TDI´s web page at www.tdi.state.tx.us.

(b) The notice incorporated by subsection (a) of this section shall be deemed incorporated into such forms as of the effective date of this subchapter.



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