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Bill

HB 5046

Relating to the collection, use, processing, and treatment of consumers' personal data by certain business entities.

89th Legislature (2025) Introduced by Ron Reynolds

Texas HB 5046 establishes data privacy requirements for select businesses, governing personal data collection, use, and processing with specified consumer protections and compliance obligations.

Referred to Trade, Workforce & Economic Development
#business&commerce--general(i0050) #consumerprotection(i0080) #electronicinformationsystems(i0311) #protectionofpersonalinformation(i0003)
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WeVote Research Nonpartisan
Bill Summary · HB 5046

Legislative bill overview

HB 5046 establishes regulatory requirements for how certain Texas business entities collect, use, process, and treat consumers' personal data. The bill creates obligations around data handling practices and likely includes provisions governing transparency, consumer rights, and potentially penalties for non-compliance with data protection standards.

Why is this important

Data privacy regulation affects how businesses operate and what protections consumers have over their personal information. As digital commerce and data collection expand, state-level privacy laws shape the competitive landscape and establish baseline consumer protections, particularly for Texans who may have fewer federal privacy safeguards than residents of states with established privacy regimes.

Potential points of contention

  • Business compliance costs: Companies may argue that new data handling requirements impose significant operational and compliance expenses, particularly for small businesses
  • Scope and applicability: Debate likely centers on which "certain business entities" are covered—whether the threshold is too broad (affecting small businesses) or too narrow (allowing large tech companies to avoid regulation)
  • Preemption concerns: Unclear whether the bill preempts or conflicts with federal regulations, creating compliance uncertainty for multi-state operations

Compiled from official sources — confirm details with the bill’s official record.

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