Cybersecurity is an essential part of protecting your business. But effective cybersecurity is more than just installing the right security software and following basic precautions. For businesses, it’s essential to ensure that your company’s cybersecurity is compliant with the state’s laws and regulations. Many of these requirements also affect private businesses operating in Texas.
But what are the cybersecurity laws and requirements for Texas? Here’s what businesses should know in 2026.
Core State Laws
Texas cybersecurity laws cover a broad range of issues, from government security operations and incident reporting to privacy, breach notification, and business liability. There are a few major core requirements to look at first for understanding state cybersecurity laws and regulatory structure.
- Texas Cyber Command (TXCC):
- Texas Cyber Command was established under HB 150 and now serves as the state’s centralized cybersecurity authority, assuming functions previously handled by the Department of Information Resources (DIR).
- Mandatory Annual Training:
- Under Section 2054.5191, all state and local government employees, elected officials, and appointed officials with access to computer systems or databases must complete annual cybersecurity and AI awareness training.
- This training has to be certified by the DIR/TXCC, with local certifications due annually by August 31.
- Incident Reporting:
- Coordinating with the Texas Division of Emergency Management (TDEM) for critical infrastructure threats, agencies must report cybersecurity incidents to TXCC within mandatory timeframes.
- Prohibited Technologies:
- Governor Abbott updated and expanded the list of restricted hardware, software, and AI applications for state employees and devices linked to the People’s Republic of China (PRC) and the Chinese Communist Party (CCP) on government devices. This is enforced by the TXCC.
- The list includes certain AI platforms and technology companies, hardware manufacturers, software applications, and cloud services.
Privacy & Data Breach Laws
Beyond just the core laws and regulations, there are also certain laws in Texas specifically regarding privacy and data breaches.
- TITEPA:
- The Texas Identity Theft Enforcement and Protection Act requires businesses to notify affected individuals of data breaches within 60 days of the determined breach.
- It also requires notification to the Texas Attorney General if 250 or more residents are affected.
- TDPSA:
- The Texas Data Protection and Security Act governs consumer data privacy rights, opt-outs, and mandatory privacy notices.
- DTPA:
- The Deceptive Trade Practices Act empowers the state to prohibit false or misleading cybersecurity and data protection claims.
New & Recent Laws
Some recent laws have also changed the landscape of cybersecurity and technology for Texas businesses.
- SB 2610:
- The Texas Cybersecurity Safe Harbor Act became effective September 1, 2025. It provides legal protection (shielding against punitive damages) for Texas businesses that suffer a data breach if they can prove their cybersecurity program conformed to a recognized framework at the time of the incident.
- These recognized frameworks include NIST CSF, NIST SP 800-171, ISO/IEC 27000 series, or SOC 2.
- Texas Responsible Artificial Intelligence Governance Act (TRAIGA):
- TRAIGA became effective January 1, 2026. It regulates certain uses of AI, requires disclosures in specific circumstances, and establishes an AI regulatory sandbox.
What These Laws Mean for Private Businesses
Many Texas laws focus directly on state agencies or public entities. However, Texas cybersecurity laws also affect private businesses through data-protection requirements, breach-notification obligations, privacy rules, and optional liability protections.
- Data Protection:
- Under Texas Business and Commerce Code Chapter 521, businesses that collect sensitive personal data (such as Social Security numbers, driver’s license numbers, or financial account details) must implement reasonable safeguards (administrative, technical, and physical safeguards).
- Breach Notifications:
- Businesses must report system security breaches to the affected individuals as soon as possible, no later than 60 days after it was determined a breach had occurred.
- If a breach affects more than 250 residents, the business must notify the Texas Attorney General’s Office.
- Texas Data Privacy and Security Act (TDPSA):
- The TDPSA applies to many businesses that operate in Texas. It establishes requirements involving privacy notices, consumer rights, data minimization, and certain risk assessments.
- SBA-defined small businesses are generally exempt, although some restrictions can still apply.
- Safe Harbor Shield:
- The SB 2610 “Safe Harbor” Shield became effective September 1, 2025. It provides small and mid-sized businesses (fewer than 250 employees) with a potential legal safe harbor against exemplary damages in certain breach-related lawsuits.
- To qualify, the business must be able to demonstrate that it implemented and maintained a cybersecurity program that complied with a recognized framework at the time of the breach.
- Government Contractors and Third-Party Rules:
- While direct state frameworks like the TXCC primarily target public entities, private companies that contract with the state must comply with specific cybersecurity terms, training rules, and audit access outlined in Request for Proposals (RFPs).
- There are sector-specific laws, like HIPAA (specifically for healthcare) or the Gramm–Leach-Bliley Act (for financial services) that apply independently and sit on top of the general state laws.
Ensuring Compliance With The Nine Minds
Staying compliant with applicable Texas laws and regulations can help protect your business from cyber threats while reducing other certain legal and financial risks. But compliance requires more than checking boxes. Businesses need security practices, policies, documentation, and response procedures that align with their operations applicable requirements.
At The Nine Minds, we help Texas businesses build cybersecurity and IT practices that support applicable security, privacy, and data-protection requirements. Helping businesses protect sensitive information and strengthen access controls to improve incident response and maintain the right documentation. We help businesses reduce risk and build a more defensible security posture.
