What happened?

The office of the Secretary of State of Texas adopted rules on the Texas Data Brokers law on December 4, 2023.

What are the details?

• On June 18, 2023,  Texas Governor Greg Abbott signed SB 2105 which incorporated requirements for Data Brokers.

• The provisions apply to data brokers that derive revenue (i) by more than 50 percent from processing or transferring personal data, or (ii) from processing or transferring the personal data of more than 50,000 individuals.

• The Act does not apply to certain entities and persons if meet the conditions.

• On December 1, 2023, the Secretary of State of Texas adopted a set of rules to operationalize the state’s data broker registry, which are effective on December 4, 2023.

Business Considerations

• If applicable, review the rules and create or update your policies and procedures to comply with the requirements.
• You must register with the Texas Secretary of State by filing a registration statement (that includes legal name, contact person, physical address, email, telephone number, website URL, and “a description of the categories of data the data broker processes and transfers”) and paying a $300 fee. You can do so here: LINK
• Provide clear and accessible notice on your website and/or mobile applications stating that the entity maintaining the online service is a data broker and that more information is available at the Texas Secretary of State website.

Resources

• Texas Data Broker Act
• Texas Data Broker Registry Rules

Source References

• Texas and Oregon Adopt New Rules for Data Broker Laws (Wilmer Cutler Pickering Hale and Dorr LLP)
• Texas enacts data broker requirements (Orrick Herrington & Sutcliffe LLP. Buckley)
• U.S. Data Broker Legislation Expands to Include Texas and Oregon (Davis+Gilbert LLP.)

This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.