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Data Brokers

In Texas, data brokers are governed by Chapter 509 of the Business and Commerce Code and the secretary of state’s administrative rules found in 1 Texas Administrative Code Chapter 106, as well as any other applicable state or federal law.

Registration with the Secretary of State

Section 509.005 of the Business and Commerce Code provides that a data broker must register with the Secretary of State in order to conduct business in Texas. See Form 4001 (PDF).

The Office of the Secretary of State maintains a searchable, central Data Broker Registry of registered data brokers as required by Business and Commerce Code Section 509.006.

A data broker registers by filing a registration statement with Secretary of State, which must be accompanied by the $300 registration fee. The Secretary of State will issue a registration certificate upon filing a completed registration statement.

A registration certificate is effective for one year and may be renewed by filing a renewal application with and paying the $300 renewal fee to the Secretary of State.

The Secretary of State is the filing officer for data broker registration and does not have the authority to regulate the business practices of a data broker, investigate alleged violations by the data broker, or enforce the requirements referenced above.

Additional Requirements

Section 509.004 of the Business and Commerce Code requires a data broker that maintains an Internet website or mobile application to post a conspicuous notice on the respective website or mobile application which, in part, contains the applicable language provided in 1 TAC §106.5(1) or 1 TAC §106.5(2).

A data broker is required to develop, implement, and maintain a comprehensive information security program under section 509.007.