Technology (Consumer Data Protection)

HB 149, the Texas Responsible Artificial Intelligence Governance Act, regulates how businesses use artificial intelligence systems that capture or store biometric data (like fingerprints or facial scans). It requires companies to obtain explicit consent before using biometric data for commercial AI purposes, unless the data was publicly shared by the individual themselves. The law exempts financial institutions retaining voiceprints, AI training data, and systems used for security, fraud prevention, or investigating illegal activity. Violations result in civil penalties, and the law takes effect January 1, 2026.

SB 1343 requires data brokers (businesses that collect and sell personal data) to post clear, accessible notices on their websites or apps stating they are data brokers and explaining consumer privacy rights under Texas law. It also mandates specific details in registration statements, including the broker's contact information, categories of data processed, child data practices, and security breach history. The law applies to registrations filed on or after its effective date (September 1, 2025), directly affecting data brokers operating in Texas. These requirements aim to increase transparency for consumers about how their personal data is handled.