United States of America: Bill amending Business and Commerce Code of Texas concerning exemptions of data brokers (SB 1860) was introduced to the Senate

On 4 March 2025, Senate Bill 1860 was introduced in the Texas Senate to amend Section 509.002(b) of the Business and Commerce Code. The Bill would create exemptions for certain entities from the chapter's requirements for data brokers. These exemptions include state agencies, financial institutions, HIPAA-covered health care entities, small businesses, institutions of higher education, and private schools. In addition, digital service providers that process user data in connection with employment, those regulated by specific education laws, entities subject to FERPA, and providers of email or direct messaging services would also be exempt. The Bill would also exempt digital service providers whose primary function is to provide access to news, sports, commerce, or content with incidental interactive functionality. Entities exempted under SB 1860 would not be required to comply with Chapter 509 of the Texas Business and Commerce Code, including registration with the Secretary of State, implementation of security measures, inclusion in the public registry, compliance with consumer protection obligations, and liability for civil penalties related to the collection, processing, or transfer of personal information.