Texas House Bill HB4516

Texas 2025 - 89th Regular

• Filed: 3/12/25

Caption

Relating to prohibiting the use of Chinese technology to collect, process, transfer, or store biometric, genetic, or medical data; creating a criminal offense.

Impact

If enacted, HB4516 would introduce a new chapter in the Texas Business & Commerce Code focused on the protection of biometric, genetic, and medical data. It stipulates that individuals or business entities that engage in data handling must refrain from employing Chinese-sourced technology. Violators of this law may face criminal charges, categorized as Class A misdemeanors for first-time offenses, escalating to state jail felonies for repeat offenders. This law is designed to empower the Texas Attorney General to enforce compliance and initiate legal action against entities that violate these restrictions.

Summary

House Bill 4516 aims to prohibit the use of technology developed by entities that are owned or controlled by the People's Republic of China for the collection, processing, transfer, or storage of biometric, genetic, or medical data of Texas residents. This legislation responds to increasing concerns about data security and privacy, particularly regarding foreign influence and the management of sensitive personal information. The bill seeks to establish stringent restrictions to safeguard citizens' data from potential exploitation by foreign entities, especially from China.

Contention

A notable point of contention surrounding HB4516 is the potential impact on businesses operating within Texas that may rely on technology from Chinese companies. Critics may argue that such prohibitions could create challenges for technological innovation and partnerships, potentially leading to a reduction in competition and an increase in operational costs. Additionally, the bill's broad language regarding behaviors classified as violations may also raise concerns about its enforceability and the implications for privacy protections at large, as it may conflict with practices established by other data protection regulations.