Texas 2025 - 89th Regular

Texas Senate Bill SB2610 Compare Versions

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11 89R9729 SCR-D
22 By: Blanco S.B. No. 2610
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77 A BILL TO BE ENTITLED
88 AN ACT
99 relating to civil liability of business entities in connection with
1010 a breach of system security.
1111 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1212 SECTION 1. Subtitle C, Title 11, Business & Commerce Code,
1313 is amended by adding Chapter 542 to read as follows:
1414 CHAPTER 542. CYBERSECURITY PROGRAM
1515 Sec. 542.001. DEFINITIONS. In this chapter:
1616 (1) "Breach of system security" has the meaning
1717 assigned by Section 521.053.
1818 (2) "Personal identifying information" and "sensitive
1919 personal information" have the meanings assigned by Section
2020 521.002.
2121 Sec. 542.002. APPLICABILITY OF CHAPTER. This chapter
2222 applies to a business entity in this state that owns or licenses
2323 computerized data that includes sensitive personal information.
2424 Sec. 542.003. LIABILITY FOR DATA BREACH. If a business
2525 entity fails to implement reasonable cybersecurity controls and
2626 that failure results in a breach of system security, the business
2727 entity is liable to a person whose sensitive personal information
2828 was stolen in the breach and who suffered economic harm as a result
2929 of the theft of the information.
3030 Sec. 542.004. INDUSTRY STANDARD CYBERSECURITY PROGRAM. (a)
3131 For purposes of Section 542.003, a business entity has implemented
3232 reasonable cybersecurity controls if the entity has created and
3333 maintained a cybersecurity program:
3434 (1) that contains administrative, technical, and
3535 physical safeguards for the protection of personal identifying
3636 information and sensitive personal information;
3737 (2) that conforms to an industry recognized
3838 cybersecurity framework as described by Subsection (b);
3939 (3) that is designed to:
4040 (A) protect the security of personal identifying
4141 information and sensitive personal information;
4242 (B) protect against any threat or hazard to the
4343 integrity of personal identifying information and sensitive
4444 personal information; and
4545 (C) protect against unauthorized access to or
4646 acquisition of personal identifying information and sensitive
4747 personal information that would result in a material risk of
4848 identity theft or other fraud to the individual to whom the
4949 information relates; and
5050 (4) the scale and scope of which meets the
5151 requirements of Subsection (d).
5252 (b) A cybersecurity program under this section conforms to
5353 an industry recognized cybersecurity framework for purposes of this
5454 section if the program conforms to:
5555 (1) a current version of or any combination of current
5656 versions of the following, as determined by the Department of
5757 Public Safety:
5858 (A) the Framework for Improving Critical
5959 Infrastructure Cybersecurity published by the National Institute
6060 of Standards and Technology (NIST);
6161 (B) the NIST's special publication 800-171;
6262 (C) the NIST's special publications 800-53 and
6363 800-53a;
6464 (D) the Federal Risk and Authorization
6565 Management Program's FedRAMP Security Assessment Framework;
6666 (E) the Center for Internet Security Critical
6767 Security Controls for Effective Cyber Defense;
6868 (F) the ISO/IEC 27000-series information
6969 security standards published by the International Organization for
7070 Standardization and the International Electrotechnical Commission;
7171 (G) the Health Information Trust Alliance's
7272 Common Security Framework;
7373 (H) the Secure Controls Framework;
7474 (I) the Service Organization Control Type 2
7575 Framework; or
7676 (J) other similar frameworks or standards of the
7777 cybersecurity industry;
7878 (2) if the business entity is subject to its
7979 requirements, the current version of the following, as determined
8080 by the Department of Public Safety:
8181 (A) the Health Insurance Portability and
8282 Accountability Act of 1996 (42 U.S.C. Section 1320d et seq.);
8383 (B) Title V, Gramm-Leach-Bliley Act (15 U.S.C.
8484 Section 6801 et seq.);
8585 (C) the Federal Information Security
8686 Modernization Act of 2014 (Pub. L. No. 113-283); or
8787 (D) the Health Information Technology for
8888 Economic and Clinical Health Act (Division A, Title XIII, and
8989 Division B, Title IV, Pub. L. No. 111-5); and
9090 (3) if applicable to the business entity, a current
9191 version of the Payment Card Industry Data Security Standard, as
9292 determined by the Department of Public Safety.
9393 (c) If any standard described by Subsection (b)(1) is
9494 published and updated, a business entity's cybersecurity program
9595 continues to meet the requirements of a program under this section
9696 if the entity updates the program to meet the updated standard not
9797 later than the 180th day after the date on which the standard is
9898 published.
9999 (d) The scale and scope of a cybersecurity program under
100100 this section must be based on:
101101 (1) the size and complexity of the business entity;
102102 (2) the nature and scope of the activities of the
103103 business entity;
104104 (3) the sensitivity of the personal identifying
105105 information or sensitive personal information; and
106106 (4) the cost and availability of tools to improve
107107 information security and reduce vulnerabilities.
108108 Sec. 542.005. AUTHORITY OF ATTORNEY GENERAL NOT AFFECTED.
109109 This chapter may not be construed to limit the authority of the
110110 attorney general to seek any legal or equitable remedy under the
111111 laws of this state.
112112 Sec. 542.006. CLASS ACTION CERTIFICATION NOT AFFECTED.
113113 This chapter does not affect the certification of an action as a
114114 class action.
115115 SECTION 2. Section 542.003, Business & Commerce Code, as
116116 added by this Act, applies only to a cause of action that accrues on
117117 or after the effective date of this Act.
118118 SECTION 3. This Act takes effect September 1, 2025.