Data Breach Notification Laws in Texas

• Each covered entity shall provide a training program to employees of the covered entity.
• An employee of a covered entity shall receive training at least once every two years.
• An employee of a covered entity must complete training not later than the 60th day after the
  date the employee is hired by the covered entity

In the event of a breach:

• • •  A person who conducts business in this state and owns or licenses computerized data that includes sensitive personal
      information shall disclose any breach of system security, after discovering or receiving notification of the breach, to any
      individual [resident of this state] whose sensitive personal information was, or is reasonably believed to have been, acquired
      by an unauthorized person. The disclosure shall be made as quickly as possible, except as provided by Subsection (d) or as necessary to determine the scope of the breach and restore the reasonable integrity of the data system.
    • Civil penalties may not exceed $250,000 for all
    • $5,000 for each violation that occurs in one year, regardless of how long the violation continues during
       that year, committed negligently;
    • $25,000 for each violation that occurs in one year, regardless of how long the violation continues during that year, committed knowingly or intentionally
    •  If the court in which an action under Subsection (b) 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 $1.5 million annually

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Federal Requirements: 

In general, State laws that are contrary to the Privacy Rule are preempted by the federal requirements, which means that the federal requirements will apply.

Privacy Rule:

•  Each covered entity, with certain exceptions, must provide a notice of its privacy practices. The Privacy Rule requires that the notice contain certain elements. The notice must describe the ways in which the covered entity may use and disclose protected health information. The notice must state the covered entity’s duties to protect privacy, provide a notice of privacy practices, and abide by the terms of the current notice. The notice must describe individuals’ rights, including the right to complain to HHS and to the covered entity if they believe their privacy rights have been violated. The notice must include a point of contact for further information and for making complaints to the covered entity. Covered entities must act in accordance with their notices. The Rule also contains specific distribution requirements for direct treatment providers, all other health care providers, and health plans.
• A covered entity must develop and implement written privacy policies and procedures that are consistent with the Privacy Rule.
•  A covered entity must train all workforce members on its privacy policies and procedures, as necessary and appropriate for them to carry out their functions. A covered entity must have and apply appropriate sanctions against workforce members who violate its privacy policies and procedures or the Privacy Rule.
•  OCR may impose a penalty on a covered entity for a failure to comply with a requirement of the Privacy Rule.  Penalties will vary significantly depending on factors such as the date of the violation, whether the covered entity knew or should have known of the failure to comply, or whether the covered entity’s failure to comply was due to willful neglect.  Penalties may not exceed a calendar year cap for multiple violations of the same requirement.

Security Rule:

The Security Rule requires covered entities to maintain reasonable and appropriate administrative, technical, and physical safeguards for protecting e-PHI.

Specifically, covered entities must:

• Ensure the confidentiality, integrity, and availability of all e-PHI they create, receive, maintain or transmit;
• Identify and protect against reasonably anticipated threats to the security or integrity of the information;
• Protect against reasonably anticipated, impermissible uses or disclosures; and
• Ensure compliance by their workforce.

Business Associates:

• The Privacy Rule requires that a covered entity obtain satisfactory assurances from its business associate that the business associate will appropriately safeguard the protected health information it receives or creates on behalf of the covered entity. The satisfactory assurances must be in writing, whether in the form of a contract or other agreement between the covered entity and the business associate.
• A “business associate” is a person or entity that performs certain functions or activities that involve the use or disclosure of protected health information on behalf of, or provides services to, a covered entity.

If you believe that a HIPAA-covered entity or its business associate violated your (or someone else’s) health information privacy rights or committed another violation of the Privacy, Security, or Breach Notification Rules, you may file a complaint with the Office for Civil Rights (OCR).

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Find the data breach notification laws in your state.