HB4516 - Relating to prohibiting the use of Chinese technology to collect, process, transfer, or store biometric, genetic, or medical data; creating a criminal offense.

  89R15594 SRA-D     By: Guillen H.B. No. 4516       A BILL TO BE ENTITLED   AN ACT   relating to prohibiting the use of Chinese technology to collect,   process, transfer, or store biometric, genetic, or medical data;   creating a criminal offense.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle A, Title 11, Business & Commerce Code,   is amended by adding Chapter 511 to read as follows:   CHAPTER 511.   PROTECTION OF BIOMETRIC, GENETIC, OR MEDICAL DATA           Sec. 511.001.  DEFINITIONS. In this chapter:                 (1)     "Biometric data" and "genetic data" have the   meanings assigned by Section 509.001, as added by Chapter 963 (S.B.   2105), Acts of the 88th Legislature, Regular Session, 2023.                 (2)     "Medical data" means data created or obtained in   the course of providing health care services that relates to an   individual's past, present, or future physical or mental health.                 (3)     "Person owned by, controlled by, or subject to the   jurisdiction or direction of the People's Republic of China" means:                       (A)     a person who acts as an agent,   representative, or employee, or a person who acts in any other   capacity at the order, request, or under the direction or control,   of the People's Republic of China or of a person whose activities   are directly or indirectly supervised, directed, controlled,   financed, or subsidized in whole or in majority part by the People's   Republic of China;                       (B)     a person who is a citizen or resident of the   People's Republic of China or a country controlled by the People's   Republic of China and is not a United States citizen or permanent   resident of the United States;                       (C)     a corporation, partnership, association, or   other entity with a principal place of business in, headquartered   in, chartered or incorporated in, or otherwise organized under the   laws of the People's Republic of China or a country controlled by   the People's Republic of China; or                       (D)     a corporation, partnership, association, or   other entity that is owned or controlled by the People's Republic of   China, to include circumstances in which any person identified in   Paragraphs (A), (B), and (C) possesses the power, direct or   indirect, whether or not exercised, through the ownership of a   majority or a dominant minority of the total outstanding voting   interest in an entity, board representation, proxy voting, a   special share, contractual arrangements, formal or informal   arrangements to act in concert, or other means, to determine,   direct, or decide important matters affecting an entity.           Sec.   511.002.     APPLICABILITY. This chapter applies only to   a person, including a business entity, that collects, processes,   transfers, or stores the biometric, genetic, or medical data of   residents of this state.             Sec.   511.003.     PROHIBITED USE OF CHINESE TECHNOLOGY;   OFFENSE. (a) A person subject to this chapter may not use   technology designed, developed, manufactured, or supplied by   persons owned by, controlled by, or subject to the jurisdiction or   direction of the People's Republic of China to collect, process,   transfer, or store the biometric, genetic, or medical data of a   resident of this state.           (b)     A person commits an offense if the person knowingly   violates Subsection (a).           (c)     An offense under this section is a Class A misdemeanor,   except that the offense is a state jail felony if the actor has   previously been convicted of an offense under this section.           (d)     For purposes of this section, an actor is presumed to   have knowingly violated Subsection (a) if it is shown on the trial   of the offense that the attorney general previously issued an   injunction against the actor under Section 511.004 and the actor   continued to engage in conduct in violation of Subsection (a).           Sec.   511.004.     ENFORCEMENT BY ATTORNEY GENERAL: INJUNCTION.   If the attorney general believes that a person has violated or is   violating Section 511.003, the attorney general may bring an action   on behalf of the state to enjoin the person from violating that   section.           Sec.   511.005.     NO PRIVATE RIGHT OF ACTION. This chapter does   not create a private right of action.          SECTION 2.  It is the intent of the 89th Legislature, Regular   Session, 2025, that the amendments made by this Act be harmonized   with another Act of the 89th Legislature, Regular Session, 2025,   relating to nonsubstantive additions to and corrections in enacted   codes.          SECTION 3.  This Act takes effect September 1, 2025.