S.B. No. 2121 amends the Business & Commerce Code to refine the definition and regulatory framework for data brokers in Texas. The bill clarifies that a "data broker" is a business entity that collects, processes, or transfers personal data that it did not directly collect from the individual linked to that data. Additionally, it specifies that the chapter applies to data brokers that derive more than 50 percent of their revenue directly from processing or transferring personal data not collected by them, or from the personal data of more than 50,000 individuals not collected directly from those individuals.

The amendments also include the removal of certain phrases that previously defined the revenue sources of data brokers, streamlining the language to focus on the nature of the data collection. The bill is set to take effect on September 1, 2025, and it expresses the intent of the 89th Legislature to harmonize these amendments with other legislative acts.