TITLE: Relating to the regulation of certain business entities that act as data brokers.

SUMMARY: Relating to the regulation of certain business entities that act as data brokers.

FULL TEXT:
AN ACT relating to the regulation of certain business entities that act as data brokers. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 509.001(4), Business & Commerce Code, as added by Chapter 963 (S.B. 2105), Acts of the 88th Legislature, Regular Session, 2023, is amended to read as follows: (4) "Data broker" means a business entity that collects, processes, or transfers [whose principal source of revenue is derived from the collecting, processing, or transferring of] personal data that the business entity did not collect directly from the individual linked or linkable to the data. SECTION 2. Section 509.003(a), Business & Commerce Code, as added by Chapter 963 (S.B. 2105), Acts of the 88th Legislature, Regular Session, 2023, is amended to read as follows: (a) Except as provided by Subsection (b), this chapter applies only to a data broker that, in a 12-month period, derives: (1) more than 50 percent of the data broker's revenue directly from processing or transferring personal data [that the data broker did] not collected by the data broker [collect] directly from the individuals to whom the data pertains; or (2) revenue directly from processing or transferring the personal data of more than 50,000 individuals [that the data broker did] not collected by the data broker [collect] directly from the individuals to whom the data pertains. SECTION 3. It is the intent of the 89th Legislature, Regular Session, 2025, that the amendments made by this Act be harmonized with another Act of the 89th Legislature, Regular Session, 2025, relating to nonsubstantive additions to and corrections in enacted codes. SECTION 4. This Act takes effect September 1, 2025.