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Summary

Law: Texas Data Privacy and Security Act (TDPSA)

Regulator: The Texas Attorney General (AG)

Summary: On June 18, 2023, the Governor of Texas signed House Bill 4 for the Texas Data Privacy and Security Act (TDPSA) which will enter into effect on July 1, 2024, although provisions on the ability of consumers to direct a third party to opt out of the processing of personal data on their behalf do not enter into effect until January 1, 2025. The TDPSA introduces obligations for data controllers and processors, including disclosure and vendor management requirements, and establishes new consumer rights such as the right to access, deletion, be informed (confirmation), and the right to opt out of targeted advertising and the sale of personal data. Furthermore, the TDPSA provides the Texas Attorney General (AG) with enforcement powers but does not provide a private right of action.

The Identity Theft Enforcement and Protection Act under Chapter 521, Title 11 of the Business and Commerce Code (the Identity Theft Act) and Chapter 33, Title 7 of the Penal Code contain general privacy provisions focusing on the protection of personally identifiable information and sensitive personal information.

In addition, Texas has a range of specific data protection laws. This includes the Act relating to the registration of and certain other requirements relating to data brokers (the Data Broker Act) which establishes regulations for data brokers in Texas and will become effective on September 1, 2023. Likewise, the Act relating to an individual's genetic data (the Genetic Data Act), which applies to direct-to-consumer genetic testing companies, also entered into force on September 1, 2023. Finally, the Securing the Children Online through Parental Empowerment Act (the SCOPE Act) provides specific protections for children's personal data and enters into force on September 1, 2024.

You can follow legislative developments in the US through the USA State Law Tracker.

Insights

On July 30, 2024, Texas Attorney General (AG) Ken Paxton secured the largest settlement ever obtained from an action brought by a single state, thus significantly raising the stakes for any company that violates Texans' privacy rights. The settlement is also the first one ever under Texas's Capture or Use of Biometric Identifier Act (CUBI). OneTrust DataGuidance Research provides insight into biometrics legislation currently in place in Texas and other states, alongside wider enforcement action taken in relation to biometrics use.

On July 1, 2024, state privacy legislation in Florida, Texas, and Oregon will enter into effect, joining those laws already in force including, California, Connecticut, Colorado, Virginia, and Utah. 2024 will also see the entrance into effect, on October 1, 2024, of a state privacy law in Montana. Each law builds on trends seen in other US state privacy legislation, though each has distinct provisions. OneTrust DataGuidance breaks down some of the key provisions of the Florida, Texas, Oregon, and Montana laws.

Texas enacted the Texas Data Privacy and Security Act (TDPSA) on June 18, 2023, and compliance is required starting from July 1, 2024. Businesses experienced with other comprehensive state consumer privacy laws will find most aspects of the TDPSA to be familiar. However, the TDPSA incorporates unique features that businesses should consider when updating their privacy programs for compliance with Texas regulations.

In this Insight article, Wendell Bartnick, Christian Blair, and Stuart Cobb, from Reed Smith LLP, delve into the TDPSA's applicability, unique features, exemptions, potential risks of non-compliance, and various compliance considerations, including privacy requests, authorized agents, data safeguards, privacy notices, disclosure of personal data sales, and updating vendor management processes to meet TDPSA requirements.

The Texas Data Privacy and Security Act (TDPSA) was signed into law by the Governor of Texas on July 1, 2023, having passed both the Texas State Senate and the Texas House of Representatives.

The TDPSA will enter into effect on July 1, 2024.

On February 16, 2023, the Texas Data Privacy and Security Act (TDPSA) was introduced to the Texas House of Representatives. Since then, the TDPSA has passed both the House and the Senate, and was signed on June 18, 2023, by the Governor of Texas. The TDPSA introduces obligations for both data controllers and data processors and the majority of its provisions will enter into force on July 1, 2024. OneTrust DataGuidance Research gives an overview of the Act.