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Can I use third-party HR tools that collect personal information in Texas? What are the requirements?

Based on the context documents provided, there are no specific requirements mentioned for third-party HR tools that collect personal information in Texas. However, there are several regulations that govern the collection, use, and disclosure of personal information in Texas.

Personal Information Protection Requirements

Under Texas law, entities that collect personal information are required to implement reasonable procedures to protect that information from unauthorized access, destruction, use, modification, or disclosure [1.8]. Additionally, entities that collect personal information must provide notice to individuals about the types of personal information collected, the purposes for which the information is used, and the types of third parties with whom the information is shared [1.8].

Third-Party Health Insurer Information Requirements

If the third-party HR tool is a health insurer, it must comply with the Third Party Health Insurer Information Requirements set forth in 1 TXAC 354.2341. This regulation requires health insurers to maintain a file system that contains certain information for each policyholder or subscriber covered by the insurer. Additionally, the regulation requires the Commission and health insurers to enter into written agreements for the exchange of health insurance information relating to certified Medicaid recipients [1.1].

Ineligibility to Receive Personal Information

If the third-party HR tool has violated a clause or term of an agreement with the department and the agreement has been terminated, the tool cannot enter into a subsequent agreement with the department to obtain driver record information [1.6].

Deleting Personal Information When Not An Authorized Recipient

Any recipient of driver record information must delete from its records any personal information obtained from the department if the recipient becomes aware that it is not an authorized recipient of that information in accordance with Chapter 730 of the Texas Transportation Code [1.7].

Disclosure of Personal Customer Information

If the third-party HR tool obtains personal customer information from persons who purchase customer products, licenses, or services from the Commission, the Texas Public Information Act is not applicable to that information [1.2].

In summary, while there are no specific requirements for third-party HR tools that collect personal information in Texas, entities that collect personal information must implement reasonable procedures to protect that information and provide notice to individuals about the collection and use of their personal information. Additionally, if the third-party HR tool is a health insurer, it must comply with the Third Party Health Insurer Information Requirements set forth in 1 TXAC 354.2341. If the third-party HR tool is receiving driver record information, it must comply with the requirements set forth in 37 TXAC 15.146 and 37 TXAC 15.149. If the third-party HR tool obtains personal customer information from persons who purchase customer products, licenses, or services from the Commission, the Texas Public Information Act is not applicable to that information.

Source(s):
Jurisdiction

Texas