Austin TX Business Law Blog

Thursday, February 13, 2020

What Businesses Need to Know About Texas' Updates to Breach Notification Law

The new year is officially in full swing and with that means more new laws coming into effect. One such law is HB 4390, which was signed into law by the Texas governor in June of 2019 and went into effect starting on January 1, 2020. The new law was the result of a bipartisan effort of four Texas state representatives. HB 4390 was enacted amid growing concerns about online privacy. The measure put in place are intended to help protect sensitive data from unauthorized access and figure out more ways to increase cyber security in order to prevent breaches from occurring.

The Updates to Breach Notification Law

HB 4390 puts several measures in place in an effort to increase and discover new ways to increase privacy protection. The new law creates the Texas Privacy Protection Advisory Council that is tasked with studying the state’s online privacy laws. The Council studies the laws and will report their findings to the Texas State Legislature prior to the start of the 2012 legislative session. After that, the Council will be disbanded.

In addition to the creation of the Texas Privacy Protection Advisory Council, the law places new requirements on Texas businesses. Businesses must disclose any data breaches that involve the unauthorized access of sensitive personal information and must do so without unreasonable delay. More specifically, a business must report the event no later than 60 days after it has been ascertained that a breach did, in fact, occur. This is an amendment to the state’s breach notification requirements under the Texas Identity Theft Enforcement and Protection Act.

The breach of sensitive personal information must be reported by the business to the Texas Attorney General. Notice of the breach must also be reported to affected individuals. This notice must include:

  • A detailed description regarding the circumstances and nature of the breach;
  • The number of Texas residents affected by the breach at the time notice is being provided;
  • The actions taken by the business in response to the breach;
  • Any further measure the business intends to make after notice has been provided; and
  • Information about whether or not law enforcement is participating in the investigation of the breach.

Texas Business Law Attorney

Texas businesses must all be aware of these types of changes in the law. It is important that businesses remain vigilant in upholding the requirements imposed upon them by laws like the HB 4390. The Kumar Law Firm is dedicated to providing our business clients with legal counsel based on the current state of the law. We help set businesses up for success and provide continued support for anything they may need along the way. For all of your business’s legal needs, The Kumar Firm is here for you. Contact us today.

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