| 1 | 1 | | 88R7062 SHH-D |
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| 2 | 2 | | By: Hughes S.B. No. 1691 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to requiring operators of smart devices to provide |
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| 8 | 8 | | information to users about the collection of personal data. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Title 12, Business & Commerce Code, is amended by |
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| 11 | 11 | | adding Chapter 610 to read as follows: |
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| 12 | 12 | | CHAPTER 610. SMART DEVICE DATA COLLECTION TRANSPARENCY |
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| 13 | 13 | | Sec. 610.001. DEFINITIONS. In this chapter: |
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| 14 | 14 | | (1) "Personal data" means information relating to a |
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| 15 | 15 | | user's active or passive usage of a smart device. |
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| 16 | 16 | | (2) "Smart device" means a home appliance, consumer |
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| 17 | 17 | | electronic device, or wearable device that: |
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| 18 | 18 | | (A) connects to the Internet; |
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| 19 | 19 | | (B) collects and stores biometrics, data, |
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| 20 | 20 | | images, sound, video, or voice recordings in the course of its |
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| 21 | 21 | | operation; and |
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| 22 | 22 | | (C) has the ability to transmit data to the |
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| 23 | 23 | | device's manufacturer or retailer or to a third party, regardless |
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| 24 | 24 | | of whether this feature is enabled. |
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| 25 | 25 | | (3) "Smart device operator" means: |
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| 26 | 26 | | (A) the manufacturer of a smart device; or |
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| 27 | 27 | | (B) another person who: |
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| 28 | 28 | | (i) remotely operates, monitors, or updates |
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| 29 | 29 | | the smart device; |
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| 30 | 30 | | (ii) provides physical or digital services |
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| 31 | 31 | | to a user of a smart device; or |
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| 32 | 32 | | (iii) receives, or has the capacity to |
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| 33 | 33 | | receive, the personal data of the user of a smart device. |
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| 34 | 34 | | (4) "User" means an individual who: |
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| 35 | 35 | | (A) purchases a smart device; |
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| 36 | 36 | | (B) actively or passively uses a smart device; |
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| 37 | 37 | | (C) lives in a dwelling to which a smart device is |
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| 38 | 38 | | fixed, or where a smart device is regularly used; or |
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| 39 | 39 | | (D) wears a smart device. |
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| 40 | 40 | | Sec. 610.002. APPLICABILITY. (a) This chapter applies to a |
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| 41 | 41 | | smart device operator who: |
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| 42 | 42 | | (1) does business in this state; |
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| 43 | 43 | | (2) manufactures, sells, or operates a smart device in |
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| 44 | 44 | | this state; or |
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| 45 | 45 | | (3) processes or engages in the sale of personal data |
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| 46 | 46 | | captured by a smart device used in this state. |
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| 47 | 47 | | (b) This chapter does not apply to a state agency, a |
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| 48 | 48 | | political subdivision of this state, or a utility provider doing |
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| 49 | 49 | | business in this state. |
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| 50 | 50 | | Sec. 610.003. REQUIREMENT TO SUMMARIZE PERSONAL DATA |
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| 51 | 51 | | COLLECTION. (a) A smart device operator shall develop and offer to |
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| 52 | 52 | | users a mobile application that provides a user with information |
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| 53 | 53 | | regarding: |
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| 54 | 54 | | (1) the nature of the personal data collected by the |
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| 55 | 55 | | smart device; |
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| 56 | 56 | | (2) the purposes for which the personal data is |
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| 57 | 57 | | collected and stored; |
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| 58 | 58 | | (3) the methods by which a user's personal data is |
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| 59 | 59 | | captured, including the use of any audio, biometric, or video |
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| 60 | 60 | | recording devices; |
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| 61 | 61 | | (4) the personal data stored by the smart device |
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| 62 | 62 | | operator; |
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| 63 | 63 | | (5) whether the personal data is stored locally on the |
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| 64 | 64 | | smart device or transmitted to another location; |
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| 65 | 65 | | (6) the security and privacy policies governing the |
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| 66 | 66 | | storage of the personal data; |
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| 67 | 67 | | (7) the identity of all persons with the ability to |
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| 68 | 68 | | access the personal data; and |
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| 69 | 69 | | (8) the identity of all third parties with which a |
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| 70 | 70 | | user's personal data is shared, including whether the personal data |
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| 71 | 71 | | is anonymized before being shared with the third party. |
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| 72 | 72 | | (b) The mobile application must provide the user with |
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| 73 | 73 | | information updated at least once a month. |
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| 74 | 74 | | (c) The mobile application must allow a user to: |
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| 75 | 75 | | (1) view the information described by Subsection (a); |
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| 76 | 76 | | (2) stop the acquisition of personal data through the |
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| 77 | 77 | | smart device; and |
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| 78 | 78 | | (3) stop the use of any audio, biometric, or video |
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| 79 | 79 | | recording features on the smart device. |
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| 80 | 80 | | Sec. 610.004. USER NOTIFICATION. (a) On at least a |
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| 81 | 81 | | quarterly basis, a smart device operator shall notify each user for |
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| 82 | 82 | | which the operator has contact information of the availability of |
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| 83 | 83 | | the mobile application and the methods by which the application may |
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| 84 | 84 | | be used to customize personal data collection and sharing. |
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| 85 | 85 | | (b) The notification under Subsection (a) must: |
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| 86 | 86 | | (1) be sent to the user by text message, e-mail, or |
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| 87 | 87 | | regular mail; and |
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| 88 | 88 | | (2) be sent in a communication containing only the |
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| 89 | 89 | | notification required under Subsection (a). |
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| 90 | 90 | | SECTION 2. This Act takes effect September 1, 2023. |
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