Texas Cybersecurity Laws You Should Know (2025)

Mitch Wolverton

Texas has become one of the most active states in developing cybersecurity legislation. With its booming technology, energy, and healthcare sectors, businesses must take cybersecurity compliance seriously to protect data and maintain customer trust. Understanding Texas cybersecurity laws is essential to avoid penalties, reduce risk, and stay ahead of evolving threats. Below, we’ll explore the key cybersecurity regulations that apply to Texas businesses in 2025.

Texas Cybersecurity Laws

Texas Identity Theft Enforcement and Protection Act (Tex. Bus. & Com. Code § 521.002–521.053)

The Texas Identity Theft Enforcement and Protection Act (TITEPA) is the state’s primary cybersecurity law. It requires businesses that own or maintain personal information about Texas residents to implement reasonable security procedures and to notify affected individuals as quickly as possible, but no later than 60 days after discovering a breach.

If a breach affects 250 or more residents, businesses must also notify the Texas Attorney General, describing the breach, the number of affected individuals, and steps taken to mitigate future risk.

Texas Privacy Protection Advisory Council

Established under House Bill 4390, this council was created to study data privacy laws and make recommendations for comprehensive state privacy legislation. Its work has laid the groundwork for Texas’s evolving data protection landscape.

Texas Business and Commerce Code Chapter 521 – Personal Identifying Information

This section requires businesses to protect sensitive data such as Social Security numbers, driver’s license numbers, and financial information. It also mandates proper disposal of personal records, including electronic files, to prevent unauthorized access.

Texas Cybersecurity Act (Tex. Gov. Code § 2054.511–2054.575)

The Texas Cybersecurity Act focuses on public-sector cybersecurity. It requires state agencies and contractors to maintain cybersecurity policies, perform annual risk assessments, and undergo regular employee security training.

Texas Data Privacy and Security Act (TDPSA) – Effective July 1, 2024

The Texas Data Privacy and Security Act (TDPSA) gives consumers new privacy rights, including the ability to access, correct, and delete their personal data. Businesses must provide clear privacy notices and limit data collection to what is necessary for legitimate business purposes.

This law applies to entities conducting business in Texas or processing personal data of Texas residents, making it one of the most significant privacy developments in the state’s history.

Texas Deceptive Trade Practices Act (Tex. Bus. & Com. Code § 17.46)

The Deceptive Trade Practices Act (DTPA) prohibits false or misleading representations, including claims about data security. Businesses that fail to follow reasonable cybersecurity practices can face civil penalties and enforcement by the Attorney General.

Texas Electronic Transactions Act (Tex. Bus. & Com. Code § 322.001–322.021)

This act recognizes electronic signatures and digital records as legally valid in Texas. It requires businesses to secure electronic transactions through encryption, authentication, and reliable data retention systems.

Federal and Industry-Specific Cybersecurity Regulations That Affect Texas Businesses

Payment Card Industry Data Security Standard (PCI DSS)

PCI DSS applies to Texas businesses that accept or process credit card payments. Compliance requires strong encryption, firewalls, and regular security audits.

Health Insurance Portability and Accountability Act (HIPAA)

HIPAA applies to Texas healthcare providers and organizations handling personal health information (PHI). It requires physical, technical, and administrative safeguards for protecting patient data.

Gramm-Leach-Bliley Act (GLBA)

Financial institutions in Texas must comply with GLBA, which requires secure data protection programs, employee training, and privacy disclosures for customers.

General Data Protection Regulation (GDPR)

GDPR applies to Texas companies that collect or process personal data from EU residents. It requires explicit consent and transparency about data collection and storage.

Cybersecurity Requirements for Financial Services Companies (NYDFS 23 NYCRR 500)

Texas financial institutions operating in New York must meet NYDFS cybersecurity standards, including multifactor authentication, encryption, and 72-hour incident reporting.

NIST Cybersecurity Framework

Many Texas businesses use the NIST Cybersecurity Framework to manage cyber risk and strengthen internal defenses. It provides best practices for identifying, protecting, detecting, responding to, and recovering from incidents.

Federal Trade Commission (FTC) Act

The FTC Act requires Texas businesses to maintain reasonable cybersecurity measures and prohibits deceptive or misleading data protection practices.

Children’s Online Privacy Protection Act (COPPA)

COPPA applies to Texas businesses that collect data from children under 13. It requires verified parental consent and strict limits on data use or sharing.

Sarbanes-Oxley Act (SOX)

Publicly traded companies in Texas must comply with SOX, which enforces robust internal controls and secure financial data management systems.

Family Educational Rights and Privacy Act (FERPA)

FERPA applies to Texas schools and educational institutions, requiring parental consent before releasing student records or personally identifiable information.

Cyber Incident Reporting for Critical Infrastructure Act (CIRCIA)

CIRCIA requires Texas critical infrastructure entities, including those in energy, manufacturing, and logistics, to report major cyber incidents to the Cybersecurity and Infrastructure Security Agency (CISA) within 72 hours.

CAN-SPAM Act

The CAN-SPAM Act governs commercial email marketing. Texas businesses must include accurate sender information, truthful subject lines, and easy unsubscribe options.

Defense Federal Acquisition Regulation Supplement (DFARS)

Texas defense contractors must comply with DFARS cybersecurity standards based on NIST SP 800-171, which protect controlled unclassified information.

Section 5 of the FTC Act (Unfair or Deceptive Practices)

Section 5 prohibits unfair or deceptive cybersecurity practices, holding Texas businesses accountable for protecting customer data and accurately disclosing security policies.

More Texas Cybersecurity Laws to Be Aware Of

Texas is one of the most cybersecurity-conscious states in the nation. The Texas Department of Information Resources (DIR) and the Texas Cybersecurity Council provide guidance, training, and policy development to strengthen the state’s cyber resilience.

Businesses should conduct annual cybersecurity risk assessments, maintain written information security programs, and ensure all employees complete annual cybersecurity awareness training, a requirement for state contractors under the Texas Cybersecurity Act.

Conclusion

Compliance with Texas cybersecurity laws is essential for businesses across every industry. By understanding the Texas Identity Theft Enforcement and Protection Act, Texas Data Privacy and Security Act, and related regulations, companies can reduce risk, build trust, and protect their customers’ data.

If your organization needs help maintaining cybersecurity compliance in Texas, we offer expert solutions to help secure your operations and align with both state and federal standards.

Frequently Asked Questions About Texas Cybersecurity Laws

  1. What is Texas’s main cybersecurity law?
    The Texas Identity Theft Enforcement and Protection Act is the state’s primary cybersecurity statute, requiring data breach notifications within 60 days and mandating reasonable security safeguards.
  2. What is the Texas Data Privacy and Security Act (TDPSA)?
    The TDPSA, effective July 1, 2024, grants Texas residents rights over their personal data and requires businesses to maintain transparent privacy policies and secure data-handling practices.
  3. Who enforces cybersecurity laws in Texas?
    The Texas Attorney General’s Office enforces the TITEPA and TDPSA, while the Texas Department of Information Resources (DIR) oversees state agency cybersecurity compliance.
  4. Does Texas require cybersecurity training?
    Yes. State agencies and certain contractors must complete annual cybersecurity training under the Texas Cybersecurity Act.
  5. How can Texas businesses strengthen cybersecurity compliance?
    By following frameworks like NIST or CIS Controls, conducting annual risk assessments, encrypting sensitive data, and maintaining written cybersecurity policies.

Read More Cybersecurity Laws by State:

Florida Cybersecurity Laws You Should Know (2025)

Ohio Cybersecurity Laws You Should Know (2025)

Virginia Cybersecurity Laws You Should Know (2025)

North Carolina Cybersecurity Laws You Should Know (2025)

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Readers should consult qualified legal counsel for advice specific to their organization or situation.

Mitch Wolverton

Mitch, Marketing Manager at PivIT Strategy, brings over many years of marketing and content creation experience to the company. He began his career as a content writer and strategist, honing his skills on some of the industry’s largest websites, before advancing to specialize in SEO and digital marketing at PivIT Strategy.