The Texas Attorney General's Office has investigators that do routine inspections throughout the state. More often it is a neighboring business, a concerned citizen, or local police officer who discovers the improperly disposed of documents. When that happens, the local news is usually contacted and you find yourself in front of Houstonians via news camera trying to explain how and why it happened. The Texas Business & Commerce Code under Chapter 35 requires all businesses to have on file a document retention and disposal policy. Penalties under this law can fine a business or an individual up to $ for each improperly disposed of record! The new Identity Theft Enforcement Act can mean fines up to $50,000 per violation – for just one record. If your business puts out a reassurance to your clients that you will protect their information, you could find yourself facing penalties of up to $20,000 per violation if found improperly disposing of information.