Texas Legislature Passes Texas Data Privacy and Security Act
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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.