BILL ANALYSIS

S.B. 1343

By: Johnson

Trade, Workforce & Economic Development

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The bill sponsor has informed the committee that data brokers have historically operated with few regulations, which allowed them to collect massive amounts of personal data and sell it to the highest bidder without regard for consumer harms. The 88th Texas Legislature enacted S.B. 2105, which required data brokers to register annually with the Texas Secretary of State, provide certain information about their data handling practices, and maintain a comprehensive information security program to safeguard personal data. This data broker registry is currently housed on the secretary of state's website. The 88th Texas Legislature also enacted a comprehensive data privacy bill, H.B. 4, known as the Texas Data Privacy and Security Act. H.B. 4 allowed Texans to see what data certain businesses collect about them, correct any incorrect information, ask businesses to delete their data, and opt out of the collection and sale of their data. The bill sponsor has also informed the committee that the ability of the Texas Data Privacy and Security Act to fully protect and inform consumers remains limited as long as it is difficult for individuals to understand how to access relevant information. S.B. 1343 seeks to help those who access the data broker registry more easily locate this important information by requiring a data broker that maintains a website or mobile application to post on the website or application a conspicuous notice that informs a consumer how to exercise any consumer rights they may have under statutory provisions relating to consumer data.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

S.B. 1343 amends the Business & Commerce Code to include among the requirements for a conspicuous notice that a data broker that maintains a website or mobile application must post on the website or application a requirement that the notice informs a consumer how to exercise any consumer rights the consumer may have under statutory provisions relating to consumer data protection.

S.B. 1343 includes among the requirements of a registration statement which a data broker must file to conduct business in Texas a requirement that the statement include a link to a page on the data broker's website that provides consumers with specific instructions, which must be prominently displayed, on how to exercise their consumer personal data rights under applicable statutory provisions, and any other applicable data privacy rights under statutory provisions relating to consumer data protection. This requirement applies only to a registration statement submitted on or after the bill's effective date.

S.B. 1343 establishes that it is the intent of the 89th Legislature, Regular Session, 2025, that the amendments by the bill be harmonized with another act of that legislative session relating to nonsubstantive additions to and corrections in enacted codes.

EFFECTIVE DATE

September 1, 2025.