Texas Cybersecurity Protections for Small and Medium-Sized Enterprises

Texas is taking proactive steps toward enhancing the cybersecurity landscape for small and mid-sized businesses with the introduction of Senate Bill 2610. Set to take effect on September 1, 2025, this significant legislation establishes a legal safe harbor for organizations that implement recognized cybersecurity frameworks. The intent is to diminish the risk of punitive damages due to data breaches, while encouraging businesses to adopt robust cybersecurity measures ahead of potential threats.

Why This Matters

In the current digital age, data breaches aren’t just an inconvenience; they can be crippling. The repercussions often extend beyond the immediate costs associated with remediation—impacting reputations, customer trust, and legal liabilities. With SB 2610, Texas is offering businesses a compelling incentive: aligning with industry standards not only strengthens their cybersecurity posture but also provides a protective shield from legal repercussions. This becomes especially critical for organizations handling sensitive personal information, allowing for both enhanced defense mechanisms and legal safeguards.

Key Provisions of SB 2610

• Scope: The law applies to Texas businesses with fewer than 250 employees that own or license computerized data containing sensitive personal information. This inclusivity ensures many businesses can benefit from the protective measures implemented.
• Safe Harbor Criteria: To qualify for the safe harbor, businesses must maintain a documented cybersecurity program that incorporates administrative, technical, and physical safeguards. This program must align with established frameworks, such as NIST CSF, ISO/IEC 27001, or CIS Controls, to ensure consistency and effectiveness in cybersecurity practices.
• Tiered Requirements:
  • **Fewer than 20 employees**: Basic cybersecurity measures are required, such as simple password policies and foundational employee training.
  • **20-99 employees**: Companies in this bracket must comply with CIS Controls Implementation Group 1, which requires more comprehensive measures than the basic tier.
  • **100-249 employees**: These organizations are expected to achieve full compliance with advanced frameworks like the NIST CSF or ISO/IEC 27001, ensuring elevated cybersecurity protocols are in place.
• Legal Effect: By complying with the outlined requirements, businesses can protect themselves from punitive damages in data breach-related lawsuits. However, it’s important to note that while this law mitigates certain legal exposures, compensatory damages and regulatory enforcement remain applicable.

Effective Date

Signed into law on June 20, 2025, SB 2610 will officially be in effect starting September 1, 2025. This timeline provides businesses with a window to understand and implement necessary cybersecurity frameworks.

Practical Impact

What sets SB 2610 apart is that it doesn’t impose additional regulatory burdens; rather, it offers a strong incentive for small and mid-sized businesses to embrace cybersecurity best practices. By rewarding proactive actions and establishing a legal safety net, compliance transforms into a strategic advantage—a way to not only protect data but also fortify the organization’s reputation in a data-driven world.

What Businesses Should Do Now

• **Assess Applicability**: Determine whether your organization falls under the scope of SB 2610 and would therefore benefit from the safe harbor provisions.
• **Choose a Cybersecurity Framework**: Select an appropriate cybersecurity framework based on your business size and risk profile to align with the legal safe harbor.
• **Document Your Strategies**: Maintain thorough documentation of your policies, training programs, and technical safeguards, ensuring everything is in line with your chosen framework.
• **Conduct Regular Reviews**: Implement annual reviews to evaluate compliance status and maintain evidence that supports your cybersecurity posture.

Spencer Fane Can Help

At Spencer Fane, our expert team specializes in advising businesses on navigating cybersecurity compliance and managing associated risks. Whether you have questions about the specifics of SB 2610 or need guidance on how to effectively implement a cybersecurity framework, we’re here to assist you. Contact us today for tailored support.

This blog was drafted by Shawn Tuma, an attorney in the Spencer Fane Plano, Texas office and the leader of the firm’s Cyber | Data | Artificial Intelligence | Emerging Technology team. For more information, visit www.spencerfane.com.