Data Protection & Privacy

U.S. Texas Data Privacy and Security Act (TDPSA)

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At a Glance
Texas Data Privacy and Security Act (TDPSA) – Tex. Bus. & Com. Code Ch. 541 (HB 4, 2023)
  • Classification
    Category
    Data Protection & Privacy
    Domain
    Privacy
    Framework Family
    Global Privacy Regulations
  • Regulatory Context
    Type
    Regulation
    Legal Instrument
    Act
    Sector
    Cross-Sector
    Industry
    Cross-Industry
  • Region / Publisher
    Region
    North America
    Region Detail
    Texas
    Publisher
    Texas Legislature
  • Versioning
    Version
    2023
    Effective Date
    July 1, 2024
    Issue Date
    June 18, 2023
  • Adoption
    Adoption Model
    Regulatory Compliance
    Implementation Complexity
    Moderate
  • Official Reference
License Information

License included / downloadable: Yes

The Texas Data Privacy and Security Act is publicly available on Texas Legislature Online and official state websites.

Framework text is licensed by its publisher and is included only where stated above.

Official Resources
Texas Data Privacy and Security Act — Texas Attorney General Overview
Provides an official summary of the Act’s consumer rights, controller obligations, enforcement, and compliance obligations.
Texas Business & Commerce Code, Chapter 541 — Full Statutory Text
Defines the legal requirements, definitions, consumer rights, controller and processor duties, exemptions, enforcement provisions, and penalties.
Report on the Implementation of the Texas Data Privacy and Security Act — Texas Department of Information Resources
Outlines implementation status, public feedback, and legislative recommendations for the Act's execution.
Texas Data Broker Act — Office of the Attorney General
Describes official requirements for entities defined as data brokers, including registration, disclosures, security obligations, and enforcement authority.

Overview

The Texas Data Privacy and Security Act (TDPSA, House Bill 4 of 2023, Texas Business and Commerce Code Chapter 541) is a state privacy regulation that helps organizations strengthen data protection practices and safeguard the personal information of Texas residents. The law establishes privacy rights for individuals and imposes obligations on entities that process or control consumer data, supporting regulatory compliance and risk management across diverse industries.

Enacted by the Texas legislature and enforced by the Office of the Attorney General, the TDPSA applies to businesses operating in Texas that meet specific data processing thresholds. The act focuses on areas such as privacy governance, data subject rights, transparency, security controls, and accountability measures aligned with broader U.S. data privacy trends and similar frameworks like the Virginia CDPA or California CCPA.

Organizations address TDPSA requirements by assessing data processing activities, enhancing privacy policies, implementing internal controls, and integrating security safeguards within compliance programs. This approach supports audit readiness and simplifies risk management processes in alignment with evolving national and state-level privacy standards.

Why it Matters

The Texas Data Privacy and Security Act (TDPSA) establishes clear expectations for data privacy and security, supporting responsible data management and consumer trust.

Key benefits include:

  • Strengthen data privacy governance

Promote data oversight by clarifying organizational responsibilities for handling and protecting consumer information.

  • Enhance regulatory compliance

Align business practices with evolving Texas privacy laws, reducing legal risk and supporting regulatory reporting requirements.

  • Improve incident response capabilities

Require reasonable administrative, technical, and physical security practices for personal data, which strengthen detection and response when incidents occur (breach notification itself is governed by Bus. & Com. Code Sec. 521.053).

  • Support consumer trust

Demonstrate a commitment to data protection and transparency, fostering confidence among customers and other stakeholders.

  • Increase audit and assessment readiness

Maintain documentation and control evidence that simplifies compliance audits and third-party risk assessments.

How it Works

The U.S. Texas Data Privacy and Security Act (TDPSA) establishes a regulatory structure centered on consumer privacy rights, business obligations, and data protection requirements. The framework delineates a set of core regulatory requirements, including data subject rights, transparency obligations, consent management, and data security safeguards. TDPSA outlines clear roles and responsibilities for data controllers and processors, specifying required disclosures, data processing limitations, and mechanisms for handling consumer requests, all aimed at ensuring privacy governance.

In practice, organizations implement TDPSA by mapping privacy and security controls to the law’s requirements. Typical activities include updating privacy notices, maintaining records of processing activities, deploying methods to respond to consumer data access and deletion requests, and conducting risk assessments regarding the processing of personal data. Organizations regularly monitor their compliance posture, validate safeguards for personal information, and review vendor management processes to maintain alignment with TDPSA mandates.

Using SmartSuite, organizations can operationalize TDPSA requirements by using control libraries for privacy-specific safeguards, maintaining a risk register to track data protection risks, and managing policy documentation. SmartSuite enables organizations to collect compliance evidence, track consumer rights requests, run remediation workflows, and generate compliance reports and dashboards to support ongoing governance and audit readiness.

Key Elements

  • Consumer Rights Provisions

Enumerates individuals’ entitlements regarding access, correction, deletion, and portability of personal data.

  • Data Controller Responsibilities

Specifies obligations for organizations managing consumer data, including transparency, purpose specification, and security measures.

  • Sensitive Data Handling Requirements

Outlines additional rules and limitations for processing and sharing sensitive categories of personal information.

  • Consent and Opt-Out Mechanisms

Details mechanisms for obtaining consumer consent and allowing users to opt out of certain data activities.

  • Transparency and Disclosure Standards

Establishes requirements for providing clear notices to consumers regarding data collection and processing practices.

  • Enforcement and Regulatory Oversight

Describes the authority of enforcement agencies and the processes for investigating non-compliance and imposing penalties.

Framework Scope

U.S. Texas Data Privacy and Security Act (TDPSA) is adopted by entities conducting business in Texas and processing personal data of Texas residents. The law governs personal data processing activities across information systems and digital platforms, and is typically implemented to achieve compliance with state regulatory requirements and support effective data protection management programs.

Framework Objectives

The Texas Data Privacy and Security Act (TDPSA) provides a foundation for effective data privacy, cybersecurity, and regulatory compliance across organizations operating in Texas.

Safeguard personal data through data protection and security controls

Enhance cybersecurity risk management to reduce exposure to threats

Strengthen governance and oversight of consumer data handling practices

Support compliance with applicable privacy and regulatory requirements

Promote operational resilience through improved data security strategies

Demonstrate audit readiness with clear documentation and accountability measures

Framework in Context

The Texas Data Privacy and Security Act (TDPSA) aligns with state-level privacy laws like the California Consumer Privacy Act (CCPA) and the Virginia Consumer Data Protection Act (VCDPA), and shares principles with the EU’s GDPR. Organizations implement TDPSA compliance to meet regulatory obligations, enhance consumer privacy practices, and demonstrate legal adherence in handling Texans’ personal data.

Common Framework Mappings

Organizations map the Texas Data Privacy and Security Act (TDPSA) to established security and privacy frameworks to simplify compliance, unify policies, and address overlapping requirements across state and global regulations.

Mapped frameworks include:

CCPA

CIS Critical Security Controls

GDPR

HIPAA

ISO/IEC 27001

ISO/IEC 27701

NIST Cybersecurity Framework

NIST Privacy Framework

NIST SP 800-53

SOC 2

SMARTSUITE

How SmartSuite Supports the TDPSA

SmartSuite provides the system for managing controls, evidence, mappings, assessments, and reporting.

Manage Texas Data Privacy and Security Act requirements by organizing TDPSA obligations, tracking consumer data rights, and maintaining evidence supporting compliant data processing and privacy governance.

Consumer Data Governance Framework

Structure requirements for data collection, use, sharing, and purpose limitation under Texas privacy law.

Data Inventory and Processing Mapping

Track personal data categories, processing activities, and systems subject to TDPSA requirements.

Consumer Rights Request Management

Manage access, deletion, correction, and portability requests with tracking and response timelines.

Consent and Sensitive Data Controls

Track consent requirements and manage processing of sensitive personal data.

Third-Party Data Protection Compliance Monitoring

Monitor third-party relationships and ensure contractual compliance with data protection obligations.

Consumer Request and Privacy Program Readiness Reporting

Provide dashboards showing consumer request status, data usage compliance, and overall privacy program readiness.

Related frameworks

CCPA/CPRA

CCPA/CPRA is California privacy law giving residents control over personal data and requiring businesses to protect and disclose data practices.

CPA (CO)

The Colorado Privacy Act establishes consumer privacy rights and requires organizations to protect and manage Colorado residents' personal data.

CTDPA

The Connecticut Data Privacy Act is a state law that governs businesses' collection, processing, and protection of residents' personal data.

GDPR

GDPR is an EU regulation that protects individuals' personal data and strengthens organizations' accountability for privacy.

ISO 27701

ISO/IEC 27701 extends ISO/IEC 27001 to help organizations manage privacy and protect personally identifiable information.

NIST Privacy Framework v1.0

NIST Privacy Framework provides voluntary guidance to help organizations identify, assess, and manage privacy risks to individuals' data.

VCDPA

Virginia CDPA establishes data protection requirements and consumer privacy rights for businesses handling Virginia residents' personal data.

Utah UCPA

The Utah Consumer Privacy Act establishes consumer privacy rights and business obligations for processing personal data of Utah residents.

FAQ

Frequently Asked Questions For U.S. Texas Data Privacy and Security Act (TDPSA)

The TX CDPA is designed to provide Texas residents with greater control over their personal data by imposing specific obligations on entities that collect, process, or share personal information. Its goal is to enhance consumer privacy rights and establish clear requirements for businesses regarding data processing and transparency.

Yes, TX CDPA compliance is mandatory for covered entities that conduct business in Texas or target products and services to Texas residents, provided they meet certain processing thresholds. Failure to comply can lead to enforcement actions by the Texas Attorney General and potential penalties.

The TDPSA applies to any person that conducts business in Texas or produces a product or service consumed by Texas residents, processes or engages in the sale of personal data, and is not a small business as defined by the U.S. Small Business Administration. There are no consumer-count or revenue thresholds; a small business must still obtain consent before selling sensitive data. State agencies, financial institutions subject to GLBA, HIPAA covered entities and business associates, nonprofits, and institutions of higher education are exempt.

Consumers have rights to access, correct, delete, and obtain a copy of their personal data, as well as to opt out of the sale and targeted advertising of their data. Businesses must have transparent privacy notices and mechanisms to honor these requests.

Organizations must conduct data mapping, implement privacy policies, and establish processes for consumer rights requests. Additional technical controls include enforcing data minimization, purpose limitation, and conducting regular data protection assessments.

TX CDPA shares core principles with frameworks like CCPA and GDPR, including consumer rights and business obligations. However, it contains unique definitions, thresholds, and requirements specific to Texas, so organizations must carefully assess differences when aligning multi-jurisdictional privacy programs.

Organizations must continuously monitor data processing activities, update privacy notices, maintain records of processing, and regularly train staff. Periodic assessments of data protection practices and prompt handling of consumer requests are ongoing obligations.

SmartSuite enables organizations to manage TX CDPA compliance by documenting data flows, tracking privacy risks, managing technical and organizational controls, and collecting evidence of compliance. The platform supports readiness for audits through workflow automation, dashboard reporting, and centralized tracking of data subject requests and regulatory responses.

Put this framework to work in SmartSuite

Manage controls, risks, evidence, and audits in one platform designed for modern governance, risk, and compliance.