|(a) Definitions. The following words and terms, when
used in this section, shall have the following meanings, unless the
context clearly indicates otherwise.
(1) Cybersecurity incident--
(A) the unauthorized acquisition of computerized or
electronic data that compromises the security, confidentiality, or
integrity of sensitive personal information being maintained;
(B) an occurrence that otherwise jeopardizes the security
of the information system or the information the system processes,
stores or transmits; or
(C) violates the security policies, security procedures
or acceptable use policies of the information system owner to the
extent such occurrence results from unauthorized or malicious activity.
(2) Information system--a set of applications, services,
information technology assets or other information-handling components
organized for the collection, processing, maintenance, use, sharing,
dissemination or disposition of electronic information, which is maintained
by the dealer, an affiliate, or a third party service provider at
the direction of the dealer.
(3) "Triggering event" means a cybersecurity incident
regarding the information system maintained by or on behalf of the
dealer, that will require:
(A) submission of a notice to a state or federal agency,
law enforcement, or to a self-regulatory body; or
(B) sending a data breach notification to customers
of the dealer under applicable state or federal law, including Business
and Commerce Code, §521.053, or a similar law of another state.
(b) Notice to the Securities Commissioner. When a triggering
event occurs that does or may affect customers or clients of the dealer
located in Texas, the registered dealer must provide notice to the
Securities Commissioner at the time the notice or notification identified
in paragraph (3)(A) or (3)(B) of subsection (a) of this section occurs.
(c) Content of notice. The notice required by subsection
(b) of this section is met by the registered dealer forwarding a copy
of the notice or notification identified in paragraph (3)(A) or (3)(B)
of subsection (a) of this section or other document containing substantially
the same information. Additionally, if such information is available
to the registered dealer at the time the notice is provided, the dealer
should identify the number of customers located in Texas affected
by the triggering event.