relating to the regulation of the collection, use, processing, and
treatment of consumers' personal data by certain business entities;
imposing a civil penalty.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Title 11, Business & Commerce Code, is amended by
adding Subtitle C to read as follows:
SUBTITLE C. CONSUMER DATA PROTECTION
CHAPTER 541. CONSUMER DATA PROTECTION
SUBCHAPTER A. GENERAL PROVISIONS
       Sec. 541.001  SHORT TITLE. This chapter may be cited as the
Texas Data Privacy and Security Act.
       Sec. 541.002.  DEFINITIONS. In this chapter, unless a
different meaning is required by the context:
             (1)  "Affiliate" means a legal entity that controls, is
controlled by, or is under common control with another legal entity
or shares common branding with another legal entity. For purposes
of this subdivision, "control" or "controlled" means:
                   (A)  the ownership of, or power to vote, more than
50 percent of the outstanding shares of any class of voting security
of a company;
                   (B)  the control in any manner over the election
of a majority of the directors or of individuals exercising similar
functions; or
                   (C)  the power to exercise controlling influence
over the management of a company.
             (2)  "Authenticate" means to verify through reasonable
means that the consumer who is entitled to exercise the consumer's
rights under Subchapter B is the same consumer exercising those
consumer rights with respect to the personal data at issue.
             (3)  "Biometric data" "Biometric data" means data
generated by automatic measurements of an individual's biological
characteristics, such as fingerprint, voiceprint, eye retina or
iris, or other unique biological patterns or characteristics, that
are used to identify a specific individual. The term does not
include physical or digital photograph, a video or audio recording,
or data generated therefrom, or information collected, used, or
stored for health care treatment, payment, or operations under the
Health Insurance Portability and Accountability Act of 1996 (42
U.S.C. Section 1320 et seq.)
             (4)  "Business associate" has the meaning assigned to
the term by the Health Insurance Portability and Accountability Act
of 1996 (42 U.S.C. Section 1320d et seq.).
             (5)  "Child" means an individual younger than 13 years
of age.
             (6)  "Consent," when referring to a consumer, means a
clear affirmative act signifying a consumer's freely given,
specific, informed, and unambiguous agreement to process personal
data relating to the consumer. The term includes a written
statement, including a statement written by electronic means, or
any other unambiguous affirmative action. "Consent" does not
include:
                   (A)  acceptance of a general or broad terms of use
or similar document that contains descriptions of personal data
processing along with other, unrelated information;
                   (B)  hovering over, muting, pausing or closing a
given piece of content; or 
                   (C)  agreement obtained through the use of dark
patterns.
             (7)  "Consumer" means an individual who is a resident
of this state acting only in an individual or household context. The
term does not include an individual acting in a commercial or
employment context.
             (8)  "Controller" means an individual or other person
that, alone or jointly with others, determines the purpose and
means of processing personal data.
             (9)  "Covered entity" has the meaning assigned to the
term by the Health Insurance Portability and Accountability Act of
1996 (42 U.S.C. Section 1320d et seq.).
             (10)  "Dark pattern" means a user interface designed or
manipulated with the substantial effect of subverting or impairStatutes affected: Introduced: ()