Texas Senate Bill SB962

Texas 2009 - 81st Regular

Caption

Relating to a business's electronic transmission of the sensitive personal information of its customers.

Impact

The implementation of SB962 will significantly impact how businesses handle sensitive customer data in Texas. By mandating the use of encryption technology for the transmission of sensitive personal information, businesses will need to invest in secure technologies and processes to remain compliant. This change not only promotes better data protection practices but also escalates the importance of cybersecurity measures across all sectors that engage in electronic communications involving customer's sensitive data.

Summary

Senate Bill 962 aims to enhance data security measures concerning the electronic transmission of sensitive personal information by businesses in Texas. Specifically, the bill amends the Business & Commerce Code to prohibit businesses from transferring sensitive personal information through electronic means, other than facsimile, to entities outside of their secure computer-based information systems unless encryption is employed. This measure is designed to protect customer information from potential breaches during its electronic transfer, aligning business practices with advancing technological standards.

Contention

While supporters of the bill argue that it is a necessary move toward safeguarding consumer data, concerns have arisen regarding the potential burden it may impose on small businesses. Critics suggest that the costs associated with implementing encryption technology could be prohibitive, especially for smaller firms that may already struggle with compliance to existing regulations. The debate highlights the tension between ensuring consumer protection and maintaining a reasonable operational cost for businesses.