89R15594 SRA-D
By: Guillen H.B. No. 4516
A BILL TO BE ENTITLED
AN ACT
relating to prohibiting the use of Chinese technology to collect,
process, transfer, or store biometric, genetic, or medical data;
creating a criminal offense.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle A, Title 11, Business & Commerce Code,
is amended by adding Chapter 511 to read as follows:
CHAPTER 511. PROTECTION OF BIOMETRIC, GENETIC, OR MEDICAL DATA
Sec. 511.001. DEFINITIONS. In this chapter:
(1) "Biometric data" and "genetic data" have the
meanings assigned by Section 509.001, as added by Chapter 963 (S.B.
2105), Acts of the 88th Legislature, Regular Session, 2023.
(2) "Medical data" means data created or obtained in
the course of providing health care services that relates to an
individual's past, present, or future physical or mental health.
(3) "Person owned by, controlled by, or subject to the
jurisdiction or direction of the People's Republic of China" means:
(A) a person who acts as an agent,
representative, or employee, or a person who acts in any other
capacity at the order, request, or under the direction or control,
of the People's Republic of China or of a person whose activities
are directly or indirectly supervised, directed, controlled,
financed, or subsidized in whole or in majority part by the People's
Republic of China;
(B) a person who is a citizen or resident of the
People's Republic of China or a country controlled by the People's
Republic of China and is not a United States citizen or permanent
resident of the United States;
(C) a corporation, partnership, association, or
other entity with a principal place of business in, headquartered
in, chartered or incorporated in, or otherwise organized under the
laws of the People's Republic of China or a country controlled by
the People's Republic of China; or
(D) a corporation, partnership, association, or
other entity that is owned or controlled by the People's Republic of
China, to include circumstances in which any person identified in
Paragraphs (A), (B), and (C) possesses the power, direct or
indirect, whether or not exercised, through the ownership of a
majority or a dominant minority of the total outstanding voting
interest in an entity, board representation, proxy voting, a
special share, contractual arrangements, formal or informal
arrangements to act in concert, or other means, to determine,
direct, or decide important matters affecting an entity.
Sec. 511.002. APPLICABILITY. This chapter applies only to
a person, including a business entity, that collects, processes,
transfers, or stores the biometric, genetic, or medical data of
residents of this state.
Sec. 511.003. PROHIBITED USE OF CHINESE TECHNOLOGY;
OFFENSE. (a) A person subject to this chapter may not use
technology designed, developed, manufactured, or supplied by
persons owned by, controlled by, or subject to the jurisdiction or
direction of the People's Republic of China to collect, process,
transfer, or store the biometric, genetic, or medical data of a
resident of this state.
(b) A person commits an offense if the person knowingly
violates Subsection (a).
(c) An offense under this section is a Class A misdemeanor,
except that the offense is a state jail felony if the actor has
previously been convicted of an offense under this section.
(d) For purposes of this section, an actor is presumed to
have knowingly violated Subsection (a) if it is shown on the trial
of the offense that the attorney general previously issued an
injunction against the actor under Section 511.004 and the actor
continued to engage in conduct in violation of Subsection (a).
Sec. 511.004. ENFORCEMENT BY ATTORNEY GENERAL: INJUNCTION.
If the attorney general believes that a person has violated or is
violating Section 511.003, the attorney general may bring an action
on behalf of the state to enjoin the person from violating that
section.
Sec. 511.005. NO PRIVATE RIGHT OF ACTION. This chapter does
not create a private right of action.
SECTION 2. It is the intent of the 89th Legislature, Regular
Session, 2025, that the amendments made by this Act be harmonized
with another Act of the 89th Legislature, Regular Session, 2025,
relating to nonsubstantive additions to and corrections in enacted
codes.
SECTION 3. This Act takes effect September 1, 2025.