bill barring foreign adversary gene sequencing machines

The text as introduced · 1,275 words

89R4352 SRA-F

By: Hughes
S.B. No. 2429

A BILL TO BE ENTITLED

AN ACT

relating to genetic information security for residents of this

state; providing a civil penalty; providing a private cause of

action.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle H, Title 2, Health and Safety Code, is

amended by adding Chapter 174 to read as follows:

CHAPTER 174. SECURITY OF GENETIC INFORMATION

Sec. 174.001. SHORT TITLE. This chapter may be cited as the

Texas Genomic Act of 2025.

Sec. 174.002. DEFINITIONS. In this chapter:

(1) "Company" means a sole proprietorship,

organization, association, corporation, partnership, joint

venture, limited partnership, limited liability partnership, or

limited liability company that exists to make a profit. The term

includes a wholly owned subsidiary, majority-owned subsidiary,

parent company, or affiliate of those entities or business

associations.

(2) "Domicile" means the country in which:

(A) a company or nonprofit organization is

formed, incorporated, or registered and headquartered;

(B) a company's or nonprofit organization's

affairs are primarily conducted; or

(C) the majority of the company's ownership

shares are held.

(3) "Foreign adversary" has the meaning assigned by 15

C.F.R. Section 791.4(a).

(4) "Genome sequencer" means any device or platform

used to conduct genome sequencing, resequencing, or isolation or

other genome research.

(5) "Genome sequencing" means any method used to

determine the identity and order of nucleotide bases in the human

genome.

(6) "Human genome" means the set of DNA found in human

cells.

(7) "Medical facility" means a facility licensed or

registered by a state or federal agency to provide health care

services that receives any state funding, including pass-through

federal money provided to a state agency for grant awards.

(8) "Software" means computer programs and related

equipment used for genome sequencing or the operation, control,

analysis, research, or other functions of genome sequencers.

Sec. 174.003. APPLICABILITY. This chapter applies to a

medical facility, research facility, company, or nonprofit

organization that conducts research on or testing of genome

sequencing or the human genome in this state.

Sec. 174.004. PURPOSE AND LEGISLATIVE POLICY. (a) The

purpose of this chapter is to ensure that a medical facility,

research facility, company, or nonprofit organization subject to

this chapter and acting on behalf of a foreign adversary does not

gain access to the genetic information of residents of this state.

(b) The policy of this state is to:

(1) oppose the collection and analysis of genomic

information by a foreign adversary or for use by a foreign

adversary; and

(2) support sanctions the United States Department of

Commerce or the United States Department of Defense imposes on a

medical facility, research facility, company, or nonprofit

organization engaged in the collection and analysis of genomic

information for use by a foreign adversary.

Sec. 174.005. PROHIBITED USE OF CERTAIN GENOME SEQUENCERS

AND GENOME SEQUENCING TECHNOLOGIES. A medical facility, research

facility, company, or nonprofit organization subject to this

chapter may not use a genome sequencer or software produced by or on

behalf of:

(1) a foreign adversary;

(2) a state-owned enterprise of a foreign adversary;

(3) a company or nonprofit organization domiciled

within the borders of a country that is a foreign adversary; or

(4) an owned or controlled subsidiary or affiliate of

a company or nonprofit organization domiciled within the borders of

a country that is a foreign adversary.

Sec. 174.006. REQUIREMENTS FOR GENOMIC INFORMATION

STORAGE. (a) A medical facility, research facility, company, or

nonprofit organization subject to this chapter shall store all

genome sequencing data of residents of this state only at a location

in the United States.

(b) A medical facility, research facility, company, or

nonprofit organization subject to this chapter that stores genome

sequencing data of residents of this state, including storage of

genome sequencing data through a contract with a third-party data

storage company, shall ensure the security of the genome sequencing

data using reasonable encryption methods, restriction on access,

and other cybersecurity best practices.

(c) Except as authorized by the attorney general under

Subsection (d), a medical facility, research facility, company, or

nonprofit organization subject to this chapter shall ensure genome

sequencing data of residents of this state, other than open data, is

inaccessible to any person located outside of the United States.

(d) A medical facility, research facility, company, or

nonprofit organization subject to this chapter that stores genome

sequencing data of residents of this state may apply to the attorney

general in the form and manner prescribed by attorney general rule

to allow remote access to genome sequencing data of residents of

this state by persons located outside of the United States. The

attorney general may allow remote access to genome sequencing data

of residents of this state only if the attorney general determines

that:

(1) remote access is necessary for the facility,

company, or organization to perform its functions;

(2) appropriate security safeguards are implemented

for remote access; and

(3) remote access is not available to any person

located within the borders of a country that is a foreign adversary.

Sec. 174.007. REQUIRED ANNUAL CERTIFICATION OF COMPLIANCE.

(a) Not later than December 31 of each year, a medical facility,

research facility, company, or nonprofit organization subject to

this chapter shall certify to the attorney general that the

facility, company, or organization is in compliance with this

chapter.

(b) An attorney representing a medical facility, research

facility, company, or nonprofit organization subject to this

chapter shall submit the certification required under Subsection

(a).

Sec. 174.008. INVESTIGATIVE AUTHORITY OF ATTORNEY GENERAL.

(a) The attorney general may investigate an allegation of a

violation of this chapter.

(b) Any person may notify the attorney general of a

violation or potential violation of this chapter.

Sec. 174.009. CIVIL PENALTY. (a) A medical facility,

research facility, company, or nonprofit organization that

violates this chapter is liable to this state for a civil penalty of

$10,000 for each violation.

(b) The attorney general may bring an action to recover the

civil penalty imposed under this section.

(c) An action under this section may be brought in a

district court in:

(1) Travis County; or

(2) a county in which any part of the violation occurs.

(d) The attorney general shall deposit a civil penalty

collected under this section in the state treasury to the credit of

the general revenue fund.

(e) The attorney general may recover reasonable expenses

incurred in obtaining a civil penalty under this section, including

court costs, reasonable attorney's fees, investigative costs,

witness fees, and deposition expenses.

Sec. 174.010. PRIVATE CAUSE OF ACTION. (a) A resident of

this state who is a patient or research subject of a medical

facility, research facility, company, or nonprofit organization

subject to this chapter and who is harmed by the storage or use of

the patient's or subject's genome sequencing data in violation of

this chapter may bring an action against the facility, company, or

organization that violated this chapter and is entitled to obtain:

(1) the greater of:

(A) actual damages; or

(B) statutory damages in an amount not to exceed

$5,000 for each violation; and

(2) court costs and reasonable attorney's fees.

(b) Sections 41.003 and 41.004, Civil Practice and Remedies

Code, do not apply to an action brought under this section.

SECTION 2. The change in law made by this Act applies only

to a cause of action that accrues on or after the effective date of

this Act. A cause of action that accrues before the effective date

of this Act is governed by the law in effect on the date the cause of

action accrued, and the former law is continued in effect for that

purpose.

SECTION 3. This Act takes effect September 1, 2025.