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Texas Adopts New Rules for Data Brokers

03 Jan

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Update Applicable to:Effective date
  All entities and persons who qualify as data brokers.  December 4, 2023

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.
  • 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

Source References

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