The Texas Data Privacy & Security Act Becomes Law

On Sunday, June 18, 2023, Governor Abbot signed the Texas Data Privacy and Security Act ("TDPSA") into law, making Texas the tenth state to enact comprehensive data privacy protections for its residents. The TDPSA was modeled after the Virginia Consumer Data Protection Act but contains some updates and Texas-specific provisions. The TDPSA will take effect July 1, 2024, giving Texas businesses a year to prepare for compliance with the new law. In general, the TDPSA regulates the collection, use, processing, and treatment of Texas consumers' personal data by certain business entities.

Which businesses are covered by the TDPSA?

The TDPSA applies broadly to individuals and entities who: (1) conduct business in Texas or produce a product or service consumed by Texas residents; (2) process or engage in the sale of personal data; and (3) are not considered a "small business" as defined by the U.S. Small Business Administration—unless the small business participates in