Prohibiting the Vehicle Kill Switch and Sending Data to Foreign Entities

By: ___________________

H.B. No. _____

A BILL TO BE ENTITLED AN ACT

relating to the prohibition of remote vehicle disabling technology and the protection of vehicle data privacy for Texas residents.

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

ARTICLE 1. PROHIBITION OF REMOTE VEHICLE DISABLING TECHNOLOGY AND VEHICLE DATA SOVEREIGNTY

SECTION 1.01. AMENDMENT TO TRANSPORTATION CODE.

Chapter 547, Transportation Code, is amended by adding Subchapter L to read as follows:

SUBCHAPTER L. PROHIBITION OF REMOTE VEHICLE DISABLING TECHNOLOGY AND VEHICLE DATA SOVEREIGNTY

Sec. 547.621. DEFINITIONS.

In this subchapter:

(1)“Basic service data” means data transmitted solely for the purpose of: (A) providing GPS navigation or emergency location services at the affirmative request of the vehicle operator; (B) transmitting safety recall notifications issued by the manufacturer; (C) delivering standard over-the-air vehicle software or firmware updates not related to behavioral monitoring; or (D) enabling standard hands-free calling, audio streaming, or similar owner-initiated entertainment services that do not collect or transmit data about the driver’s identity, behavior, biometrics, or precise location history to any third party.

(2)“Covered vehicle data” means any data that a motor vehicle or any system, component, or device connected to or integrated with a motor vehicle detects, senses, records, derives, generates, or transmits that is linked or reasonably linkable to: (A) the identity, location, physical characteristics, biometrics, or behavior of the driver or any passenger; or (B) the precise location history or movement patterns of the vehicle or its occupants. The term does not include basic service data.

(3)“Dealer” has the meaning assigned by Section 503.001.

(4)“Foreign adversary” means a country or non-government person identified as a foreign adversary under 15 C.F.R. Part 791, as that regulation exists on the effective date of this Act or as subsequently amended, and includes any entity owned by, controlled by, or subject to the jurisdiction or direction of such a country or person.

(5)“Foreign nation” means any country other than the United States of America and includes any government, governmental agency, state-owned enterprise, instrumentality, or person acting on behalf of or under the direction of such a country.

(6)“Foreign power” has the meaning assigned by 50 U.S.C. Section 1801(a), which includes entities engaged in international terrorism or activities in preparation therefor.

(7)“Manufacturer” has the meaning assigned by Section 503.001.

(8)“Motor vehicle” has the meaning assigned by Section 502.001.

(9)“Remote vehicle disabling technology” means any application, device, system, or combination thereof, including software, firmware, and hardware, that, when activated or engaged by a person other than the operator or owner of the vehicle, allows that person to disable, limit, restrict, prevent, or otherwise interfere with the operation of a motor vehicle. The term does not include:

(A)an ignition interlock device as defined by Article 42A.408, Code of Criminal Procedure, that is installed pursuant to a valid court order; or

(B)a system used solely by the vehicle owner or lessee for theft recovery purposes with the affirmative written consent of the owner or lessee.

Sec. 547.622. PROHIBITED ACTS — REMOTE VEHICLE DISABLING TECHNOLOGY.

(a)A manufacturer may not manufacture, distribute, assemble, or sell a motor vehicle for use or registration in this state that is equipped with remote vehicle disabling technology.

(b)A dealer may not sell, offer for sale, or exchange a motor vehicle in this state that is equipped with remote vehicle disabling technology.

(c)A person may not install remote vehicle disabling technology on a motor vehicle registered in this state without the affirmative written consent of the vehicle’s owner.

(d)A person may not activate, engage, or remotely use remote vehicle disabling technology to disable, limit, or restrict the operation of a motor vehicle registered or operated in this state without a valid court order specifically authorizing such action.

Sec. 547.623. VEHICLE REGISTRATION PROHIBITION.

(a)A county assessor-collector may not accept for registration and the Texas Department of Motor Vehicles may not register a motor vehicle that is equipped with remote vehicle disabling technology.

(b)The Texas Department of Motor Vehicles shall adopt rules establishing procedures for verifying that a motor vehicle presented for registration or renewal of registration does not contain remote vehicle disabling technology.

Sec. 547.624. ENFORCEMENT — REMOTE VEHICLE DISABLING TECHNOLOGY.

(a)A license holder under Chapter 2301, Occupations Code, who violates Section 547.622(a) or (b) is subject to the revocation or suspension of the license under Section 2301.651(a)(4), Occupations Code.

(b)The Texas Department of Motor Vehicles may assess a civil penalty not to exceed $25,000 for each violation of Section 547.622(a) or (b) against a manufacturer or dealer.

(c)A person who installs remote vehicle disabling technology on a motor vehicle in violation of Section 547.622(c) commits a Class A misdemeanor.

Penalty — Sec. 547.624(c)Class A Misdemeanor: Unauthorized Installation of RVDT — up to 1 year county jail and/or up to $4,000 fine (Tex. Penal Code § 12.21)

(d)A person who activates or uses remote vehicle disabling technology in violation of Section 547.622(d) commits a state jail felony.

Penalty — Sec. 547.624(d)State Jail Felony: Unauthorized Activation of RVDT — 180 days to 2 years state jail and/or up to $10,000 fine (Tex. Penal Code § 12.35)

Sec. 547.625. CIVIL CAUSE OF ACTION — REMOTE VEHICLE DISABLING TECHNOLOGY.

(a)A vehicle owner or operator whose motor vehicle operation is disabled, limited, or restricted in violation of this subchapter has a private cause of action against the person who activated, installed, or engaged the remote vehicle disabling technology.

(b)A prevailing plaintiff in a suit under this section is entitled to:

(1)actual damages;

(2)statutory damages of not less than $10,000 for each incident;

(3)punitive damages if the court finds the violation was willful or knowing; and

(4)court costs and reasonable attorney’s fees.

Sec. 547.626. ATTORNEY GENERAL AUTHORITY.

The attorney general may bring an action on behalf of the state or a Texas resident to enforce this subchapter, to challenge any federal mandate requiring remote vehicle disabling technology on constitutional grounds, or to seek injunctive relief against any person violating this subchapter.

Sec. 547.627. CONSUMER DISCLOSURE.

A manufacturer or dealer that sells a motor vehicle in this state must disclose in writing to the purchaser, prior to sale:

(1)whether the vehicle contains any technology capable of remotely monitoring driver behavior, transmitting driving data to a third party, or interfacing with any system designed to limit vehicle operation; and

(2)the identity of each third party to which the vehicle is capable of transmitting covered vehicle data, including whether any such third party is located outside the United States.

Failure to make the disclosure required by this section is a deceptive trade practice under Chapter 17, Business & Commerce Code.

Sec. 547.628. VEHICLE DATA SOVEREIGNTY — PROHIBITION ON FOREIGN TRANSMISSION AND DOMESTIC TRANSMISSION WITHOUT CONSENT.

(a)PROHIBITION ON FOREIGN TRANSMISSION. A manufacturer, dealer, telematics service provider, data aggregator, insurer, or any other person may not transmit, sell, license, share, provide access to, or otherwise disclose covered vehicle data to any foreign nation or to any person, entity, or organization acting on behalf of, under the direction of, or subject to the jurisdiction or control of a foreign nation.

(b)DOMESTIC TRANSMISSION — OPT-IN CONSENT REQUIRED. A manufacturer, dealer, telematics service provider, data aggregator, insurer, or any other person may not transmit, sell, license, share, provide access to, or otherwise disclose covered vehicle data to any domestic third party unless the vehicle owner or operator has provided express written or electronic opt-in consent that:

(1)is separate and distinct from any general terms of service agreement;

(2)clearly identifies the specific categories of data to be collected;

(3)clearly identifies each recipient or class of recipient of the data;

(4)clearly describes the purposes for which the data will be used; and

(5)states that consent may be revoked at any time without penalty.

(c)EFFECT OF REFUSAL OR REVOCATION OF CONSENT. If a vehicle owner or operator does not provide or subsequently revokes consent under Subsection (b), the vehicle or any connected system may continue to transmit only basic service data. No person may condition the sale, lease, or continued operation of a motor vehicle on the owner’s or operator’s consent to the transmission of covered vehicle data beyond basic service data.

(d)CRIMINAL PENALTIES.

(1)A person who knowingly transmits covered vehicle data to a foreign nation in violation of Subsection (a) commits a state jail felony for each incident of transmission.

Penalty — Sec. 547.628(d)(1)State Jail Felony: Knowingly transmitting covered vehicle data to any foreign nation — 180 days to 2 years state jail and/or up to $10,000 fine per incident (Tex. Penal Code § 12.35)

(2)A person who knowingly transmits covered vehicle data to a foreign adversary, or to a foreign power as defined by 50 U.S.C. Section 1801(a) including any organization engaged in international terrorism or activities in preparation therefor, commits a felony of the third degree for each incident of transmission.

Penalty — Sec. 547.628(d)(2) — Enhanced: Foreign Adversary / Terrorist Organization3rd Degree Felony: Transmission of covered vehicle data to a foreign adversary (15 C.F.R. Part 791: China, Russia, Iran, North Korea, Cuba, Venezuela) or to any entity engaged in international terrorism (50 U.S.C. § 1801(a)) — 2 to 10 years TDCJ and/or up to $10,000 fine per incident (Tex. Penal Code § 12.34)

(3)A person who knowingly transmits covered vehicle data to a domestic third party without required opt-in consent in violation of Subsection (b) commits a Class A misdemeanor for each incident of transmission.

Penalty — Sec. 547.628(d)(3)Class A Misdemeanor: Unauthorized domestic transmission of covered vehicle data without required opt-in consent — up to 1 year county jail and/or up to $4,000 fine per incident (Tex. Penal Code § 12.21)

(e)CIVIL CAUSE OF ACTION. A vehicle owner or operator whose covered vehicle data is transmitted in violation of this section has a private cause of action against the person who transmitted the data. A prevailing plaintiff is entitled to:

(1)actual damages;

(2)statutory damages of not less than $10,000 for each incident of unauthorized domestic transmission;

(3)statutory damages of not less than $50,000 for each incident of transmission to a foreign adversary or foreign power as defined by Subsection (d)(2);

(4)punitive damages if the court finds the violation was willful or knowing; and

(5)court costs and reasonable attorney’s fees.

(f)ATTORNEY GENERAL ENFORCEMENT. The attorney general may bring a civil action to enforce this section, seek injunctive relief, recover civil penalties of not more than $100,000 per violation, and bring such constitutional challenges as the attorney general determines appropriate against any federal requirement that conflicts with this section.

(g)CONSTRUCTION. This section shall be construed independently of Sections 547.622 through 547.627. A finding that any portion of those sections is preempted by federal law does not affect the validity or enforceability of this section. This section operates as an exercise of Texas’s authority to protect the personal data of Texas residents and is not subject to preemption under 49 U.S.C. Section 30103, which governs federal motor vehicle safety standards and does not extend to data transmission.

ARTICLE 2. TRANSITION AND EFFECTIVE DATE

SECTION 2.01. TRANSITION.

The change in law made by this Act applies only to a motor vehicle manufactured, sold, offered for sale, or registered in this state on or after the effective date of this Act. A dealer or manufacturer holding inventory of motor vehicles equipped with remote vehicle disabling technology on the effective date of this Act must disable or remove such technology before selling or registering any such vehicle in this state. The state provides dealers and manufacturers a 180-day compliance window from the effective date of this Act to comply with the requirements of Article 1 of this Act.

SECTION 2.02. EFFECTIVE DATE.

This Act takes effect September 1, 2027.

Texas Vehicle Freedom & Privacy Protection Act