Surety Bond Encyclopedia

Batch Driver Record Agreement ($1,000,000) Bond - Texas DPS in Texas

Brief Summary

If your company wants the Texas driver record file in bulk, DPS will not release it until a $1,000,000 performance bond is on file. The bond protects the State of Texas, not your customers, and it is separate from the $3,000,000 insurance DPS also requires. Getting the bond lined up early keeps the agreement from stalling at the last step.

The Texas Department of Public Safety requires a $1,000,000 performance bond before a non-governmental entity can receive driver records in the bulk format under Texas Transportation Code 521.050. The requirement sits in Attachment D of the DPS User Agreement to Purchase Driver Records, which also calls for at least $3,000,000 in general liability and cyber-threat insurance. Governmental entities are exempt from both.

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How to Apply for a Batch Driver Record Agreement ($1,000,000) Bond:

Confirm you are buying driver records in the bulk format under Transportation Code 521.050, since that is what triggers the bond.
Confirm your organization is not a governmental entity, which is exempt.
Have the legal entity name exactly as it appears on the DPS user agreement.
Complete the bond application and provide owner or company information for underwriting.
Pay the premium and receive the executed $1,000,000 performance bond.
Deliver the bond to DPS with proof of the required insurance before bulk records are released.

Detailed Information About the Texas Batch Driver Record Agreement ($1,000,000) Bond:

The bond is tied to bulk purchases

Most businesses that buy Texas driver records through DPS do not need this bond. It applies when an entity buys driver records in the bulk format under Texas Transportation Code 521.050, which lets DPS sell the names, addresses and dates of birth of all license holders in its basic driver's license record file. Attachment D of the DPS User Agreement to Purchase Driver Records states that a performance bond in the amount of $1,000,000 will be required before the entity can receive driver records in the bulk format, and that the bond is solely for the protection of the State of Texas.

Who is exempt

The agreement says plainly that the bond and insurance requirements do not apply to a governmental entity. Private companies, data resellers, insurers, investigators and other non-governmental purchasers post the bond if they want bulk records.

The bond is not the only requirement

Attachment D also requires proof of at least $3,000,000 in general liability and cyber-threat insurance coverage, maintained for the term of the agreement, and the coverage must be reasonably related to the risks of unauthorized access and use of the records. The bond does not replace the insurance and the insurance does not replace the bond.

Under 521.050 the purchaser must certify in writing that it is eligible to receive the information under Chapter 730 of the Transportation Code, the state's motor vehicle records disclosure law. The statute sets a fee of $2,000 for the initial file and $75 for each weekly update if DPS provides one.

Term

The user agreement runs for five years from the last date signed. The copy reviewed for this page carries the revision mark Rev. 7/2022. Confirm the current agreement revision and bond form with DPS before the bond is issued.

Eligibility and Requirements for a Texas Batch Driver Record Agreement ($1,000,000) Bond:

Performance bond of $1,000,000 for the protection of the State of Texas.
Proof of at least $3,000,000 in general liability and cyber-threat insurance, kept in force for the term of the agreement.
Written certification that the purchaser is eligible to receive the information under Transportation Code Chapter 730.
Payment of the statutory fees of $2,000 for the initial file and $75 for each weekly update.
A signed DPS User Agreement to Purchase Driver Records, which runs for five years.

Texas Batch Driver Record Agreement ($1,000,000) Bond FAQs:

Does every business that buys Texas driver records need this bond?

No. The DPS user agreement ties the $1,000,000 bond to purchases of driver records in the bulk format under Transportation Code 521.050. If you buy individual records, the bond provisions in Attachment D do not come into play.

Are government agencies required to post the bond?

No. The agreement states that the bond and insurance requirements do not apply to a governmental entity.

Who is protected by the bond?

The State of Texas. The agreement says the bond will be solely for the protection of the State of Texas.

Does my liability or cyber policy satisfy the bond requirement?

No. DPS requires both. The insurance must be at least $3,000,000 in general liability and cyber-threat coverage, and the $1,000,000 performance bond is a separate instrument.

What does DPS charge for the bulk file?

Transportation Code 521.050 sets a fee of $2,000 for the initial driver's license information and $75 for each weekly update if DPS provides one. The bond premium is a separate cost set by the surety after underwriting.