Texas House Bill HB3741

Texas 2021 - 87th Regular

Caption

Relating to the personal identifying information collected, processed, or maintained by certain businesses; imposing a civil penalty.

Impact

The bill establishes significant legal implications for businesses operating in Texas, specifically those that collect data from more than 5,000 individuals and generate substantial revenue from such activities. It mandates that businesses must stop processing a consumer's data upon account closure and permanently delete it within a year, unless otherwise required by law. Furthermore, businesses are required to provide a clear notice of their data practices, which enhances transparency and strengthens consumer trust in how their information is used. Failure to comply can result in civil penalties up to $10,000 per violation, reinforcing accountability among companies.

Summary

House Bill 3741 is a legislative measure aimed at enhancing the protection of personal identifying information (PII) collected, processed, or maintained by businesses in Texas. The bill introduces several key provisions in the Business & Commerce Code to ensure businesses are accountable for how they handle consumer data. This includes defining various types of personal identifying information and outlining the responsibilities of businesses regarding its collection and processing. The bill emphasizes the importance of consumer rights, such as the right to know what information is collected, the right to request corrections, and the right to deletion of sensitive information.

Contention

There are potential points of contention surrounding House Bill 3741, particularly regarding its impact on business operations and compliance costs. Opponents may argue that the regulations could lead to increased operational burdens, especially for smaller businesses that may find it challenging to comply with stringent data management requirements. Additionally, the balance between consumer privacy and the business need for data collection will be an ongoing debate as the implications of the bill are further explored in practice. There may also be discussions on the thresholds established for applicability, and whether these adequately protect consumers while allowing businesses to operate efficiently.