Texas Senate Bill SB2610

Texas 2025 - 89th Regular

• Filed: 3/13/25

Caption

Relating to civil liability of business entities in connection with a breach of system security.

Impact

If enacted, SB2610 will have a significant impact on how businesses manage and protect sensitive personal data within Texas. It creates a legal framework that not only defines what constitutes reasonable cybersecurity measures but also establishes a direct correlation between compliance with these measures and liability in the event of a data breach. Businesses that fail to meet the standards could face lawsuits from affected individuals, emphasizing the necessity of robust cybersecurity programs and could encourage better data protection practices across various sectors.

Summary

Senate Bill 2610 focuses on the civil liability of business entities in relation to breaches of system security that compromise sensitive personal information. The bill proposes to amend the Business & Commerce Code by introducing a new chapter dedicated to cybersecurity, establishing clear guidelines on how businesses should act when faced with data breaches. It specifies that businesses must implement reasonable cybersecurity controls and outlines the conditions under which they would be held liable for any resultant economic harm due to inadequate cybersecurity measures.

Contention

The potential contentious aspects of SB2610 may arise from the balance it seeks to strike between promoting stronger cybersecurity practices and the possible burden it imposes on businesses, particularly smaller entities that may lack the resources to comply with the stringent requirements. Concerns may include the definition of 'reasonable cybersecurity controls' and the potential for class action lawsuits, which could lead to increased operational costs for businesses. Additionally, it remains to be seen how vigorously the provisions will be enforced and whether exemptions will be provided for smaller businesses.