Texas Legislature Passes Texas Data Privacy and Security Act

Listen
to
this
post

On
May
10,
2023,
the
Texas
Senate
passed

H.B.

Texas Legislature Passes Texas Data Privacy and Security Act


Listen
to
this
post

On
May
10,
2023,
the
Texas
Senate
passed

H.B.
4
,
also
known
as
the
Texas
Data
Privacy
and
Security
Act
(“TDPSA”).
The
TDPSA
now
heads
to
Texas
Governor
Greg
Abbott
for
a
final
signature.
If
the
TDPSA
is
signed
into
law,
Texas
could
become
the
tenth
state
to
enact
comprehensive
privacy
legislation.

The
final
text
of
the
TDPSA
closely
follows

H.B.
1844
,
which
we
previously
reported
on
when
it
was
introduced
in
the
Texas
House
in
February.
In
addition
to
the
provisions
of
H.B.
1844,
the
TDPSA:

  • Revises
    the
    definition
    of
    personal
    data
    to
    include
    pseudonymous
    data
    only
    when
    the
    data
    is
    used
    by
    a
    controller
    or
    a
    processor
    in
    conjunction
    with
    additional
    information
    that
    reasonably
    links
    the
    data
    to
    an
    identified
    or
    an
    identifiable
    individual;
  • Adds
    a
    requirement
    that
    if
    a
    controller
    sells
    sensitive
    or
    biometric
    data,
    the
    controller
    must
    disclose
    that
    fact
    in
    its
    privacy
    policy;
  • Requires
    small
    businesses,
    as
    defined
    by
    the
    United
    States
    Small
    Business
    Administration,
    to
    receive
    consent
    from
    consumers
    before
    selling
    consumers’
    sensitive
    data;
  • Directs
    the
    Texas
    Attorney
    General
    to
    provide
    (1)
    information
    outlining
    consumer
    rights
    and
    the
    responsibilities
    of
    controllers
    and
    processors
    under
    the
    TDPSA,
    and
    (2)
    an
    Internet
    mechanism
    for
    submitting
    consumer
    complaints;
    and
  • Introduces
    prescriptive
    requirements
    for
    curing
    a
    violation.

If
enacted,
the
TDPSA
will
take
effect
on
March
1,
2024.

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