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HB 4 Texas New Data Privacy Law: Everything you need to know

📣 The Texas legislature recently passed HB 4, known as the Texas Data Privacy and Security Act.

On June 18, 2023, Texas marked a significant legislative milestone by becoming the 10th state to adopt a comprehensive privacy law. Following the likes of ColoradoVirginiaUtah, and Connecticut, here’s everything you need to know about Texas’ new privacy law 👇

HB 4

The Journey of HB 4

Passed on May 28 via a conference committee, the bill was signed into law by Gov. Greg Abbott on June 18. Texas’ bill is set to be effective from July 1, 2024, ahead of some other states.

A comparison with other state laws shows some unique features in the Texas bill, with Virginia’s legislation serving as its primary foundation.

What are the Key Features of HB 4?

  1. Coverage Thresholds: Unlike other states that base their applicability on monetary values, Texas has introduced a novel three-factor applicability standard.
  2. Opt-out Mechanisms:By January 1, 2025, there’s a requirement for the acknowledgment of universal opt-out mechanisms.
  3. Opt-in and Opt-out Provisions: The bill mandates opt-in consent for sensitive data collection and processing, along with opt-outs for targeted advertising, data sales, and profiling.
  4. Data Protection Measures: These include data protection assessments, clauses on “dark patterns,” and a notable 30-day cure provision.

Who does HB 4 apply to?

Texas new data privacy law has set a new standard by establishing the following criteria for entities that:

  1. Operate in Texas or produce services or goods consumed by its residents.
  2. Process or engage in personal data sales.
  3. Do not qualify as a “small business” as per the U.S. Small Business Administration.

With the signing of the Texas Data Privacy and Security Act into law on June 18, 2023, businesses, policymakers, and consumers eagerly anticipate its enforcement, as Texas cements its position on data privacy. The law, while echoing some existing provisions, definitely charts new territories, emphasizing the state’s commitment to safeguarding its residents’ data privacy.

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