Bill > SB2121

This bill modifies the definition and application of data brokers in Texas law by broadening the definition and changing how revenue and data collection are characterized. Specifically, the bill redefines a "data broker" as a business entity that collects, processes, or transfers personal data not directly collected from the individual, removing the previous requirement that the entity's principal revenue source be derived from such activities. The bill also adjusts the applicability of data broker regulations, now specifying that the law applies to entities that either derive more than 50 percent of their revenue directly from processing or transferring personal data not collected directly from individuals, or generate revenue from processing personal data of more than 50,000 individuals not directly collected by the broker. The changes introduce more precise language around "directly" collected and processed data, potentially expanding the scope of businesses that could be considered data brokers. The bill is set to take effect on September 1, 2025, with legislative intent to harmonize these amendments with other potential legislative changes in the same session.

Business and Industry

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2121