According to a new study, there's still a lot the Lone Star State needs to do to protect its citzens online. Getty Images

If Texas' standards for online privacy were graded, the Lone Star State would earn an "F," a new study indicates.

An analysis of online privacy laws in the 50 states shows Texas adheres to only five (25 percent) of the 20 privacy standards examined by pro-consumer tech research website Comparetech. Just two states surpassed the 50 percent mark — California (75 percent) and Delaware (55 percent). At 5 percent, Wyoming was ranked the worst state for online privacy protection laws.

Texas did, however, have some redeeming qualities. The state has laws on the books regarding how companies dispose of consumers' data, how organizations protect data about students in kindergarten through 12th grade, how biometric data is protected, and how journalists are shielded from revealing their sources, according to Comparetech.

Ranking 23rd in the Comparetech study, Texas fell short in areas such as social media privacy, security of insurance data, third-party sharing of data, and disclosure of what types of data companies collect about consumers.

"Texas still has a long way to go in protecting its residents' privacy, particularly when it comes to how companies and government entities can collect, use, and share personal data," says Paul Bischoff, a privacy advocate with Comparetech.

During Texas' 2019 legislative session, one comprehensive measure aimed at tightening online privacy laws, the Texas Consumer Privacy Act, failed to reach the governor's desk.

However, lawmakers passed and Gov. Greg Abbott signed the Texas Privacy Protection Act. This law, far less sweeping than the Texas Consumer Privacy Act, revises notification requirements under the Texas Identity Theft Enforcement and Protection Act, according to the Data Privacy Monitor blog. It also establishes the 15-member Texas Privacy Protection Advisory Council, which will recommend future legislation tied to data privacy.

In Texas, Bischoff says, companies still "have few restrictions on how they are allowed to gather information from users, how long that data can be retained, and with whom it can be shared. Likewise, government entities like schools and law enforcement are not bound by laws that would prevent them from invading people's privacy."

He notes, however, that Texas is among only four states that protect biometric data such as fingerprints and facial-recognition scans.

Among all the states, California "sets a fairly high bar" for protection of online privacy, Bischoff says, but even it fails to meet all of the pro-privacy criteria set out in the Comparetech study.

Around the country, most people support beefing up state laws governing online privacy, he says, "but technology has outpaced legislation, so many states just need time to catch up."

Some Americans, though, doubt that any laws can safeguard their online privacy. In a 2019 survey commissioned by privacy-technology company FigLeaf Inc., 29 percent of U.S. adults said they thought it was impossible to safeguard their digital information.

"Without question, consumers are telling us that online privacy is important to them. However, far too many believe online privacy is difficult, if not impossible, to achieve," Slava Kolomeichuk, co-founder and CEO of Deerfield, Illinois-based FigLeaf, says in a news release. "This attitude is resulting in individuals who are choosing to restrict their own online activity, which limits their personal freedom. Unfortunately, current tools do not give consumers the assurance they need that it is possible to control one's own online privacy."

Control of online privacy is a serious concern for U.S. adults. In a 2019 survey by SurveyMonkey, 58 percent of adults viewed online privacy as a crisis. For Texans, this concern won't be addressed by state lawmakers until the Legislature reconvenes in 2021. Meanwhile, federal lawmakers aren't expected to take action this year on an online privacy bill.

U.S. Sen. Richard Wicker, a Mississippi Republican who chairs the Senate Commerce Committee, is one of the main sponsors of the federal privacy legislation. He says Americans deserve the same online protections regardless of where in the U.S. they live or travel.

"That means internet privacy regulations should not vary across state lines," Wicker says on his website. "Not only would 50 different privacy standards leave Americans uncertain about what is being done with their data, but a patchwork of state-level interventions could also lead to uncertainty for businesses, bad internet service, and slower economic growth."
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Houston startup designing emergency response drones lands $5.2M in seed funding

cha-ching

Houston-based Paladin, whose remotely controlled drones help first responders react quickly to emergencies, has collected $5.2 million in seed funding.

Gradient, a seed fund that backs AI-oriented startups, led the round. Also participating were Toyota Ventures, the early-stage VC arm of Japanese automaker Toyota; venture capital firm Khosla Ventures; and VC fund 1517.

“We believe Paladin will drive meaningful change in public safety and redefine how communities are served,” Gradient said in an announcement about the seed round.

In 2019, Paladin received $1.3 million in seed funding from Khosla Ventures and Gmail creator Paul Buchheit, a group partner at Y Combinator. In 2018, the year it was co-founded by Divyaditya Shrivastava and Trevor Pennypacker, Paladin graduated from Y Combinator’s three-month boot camp.

Paladin’s AI-enhanced autonomous drones help public safety agencies, such as police and fire departments, respond to 911 calls. These drones provide aerial views of emergency scenes in an effort to decrease response times, improve “situational awareness,” and save lives, according to a Gradient blog post.

Among the agencies that have tried out Paladin’s technology is the Houston area’s Memorial Villages Police Department. The department participated in a three-month Paladin pilot project in 2019.

"(This is) one of the first departments in the country to be testing this technology," Shrivastava told InnovationMap in 2019. "We're very limited in the area that we cover, and that's just because we're taking baby steps and going as carefully and deliberately as possible."

Gradient says more than 12,000 drone missions have been performed using Paladin’s hardware and software platform. Agencies that have adopted the platform report average response times under 90 seconds. Furthermore, the technology has allowed them to resolve nearly one-third of 911 calls without dispatching first responders.

“Paladin keeps innovating, recently launching Payload Drop, a groundbreaking feature that enables drones to deliver lifesaving equipment — such as Narcan, life vests, and AEDs — directly to emergency scenes,” says Gradient.

On its website, Paladin says it envisions autonomous drones responding to every 911 call in the U.S. by 2027.

“The information is paramount, the technology exists and is rapidly improving, and the need is there. We want to help,” Paladin proclaims.

Energy, investment groups take up leases in Houston innovation hub

moving in

The Ion in Midtown has some new tenants taking up residence in its 90 percent-leased building.

Occidental Petroleum Corporation, Fathom Fund, and Activate are the latest additions to the Ion, according to a news release from Rice University and the Rice Real Estate Company, which own and operate the 16-acre Ion District where the Ion is located. With the additions, the building has just 10 percent left up for grabs.

“As the Ion continues to attract leading companies and organizations across industries, it’s clear that our vision of creating a dynamic and collaborative environment for innovation is resonating,” Ken Jett, president of the Rice Real Estate Company and vice president of facilities and capital planning at Rice, says in the release. “We are proud to set the standard for how the workplace can evolve to foster the commercialization and growth of transformative technologies that enhance quality of life in our community and beyond.”

Oxy, which was named a corporate partner of the Ion last year, now has nearly 6,500 square feet on the fourth floor where it will be housing its Zero In department that's focused on pioneering low-carbon initiatives. The build out process is slated to be completed by early 2025.

While Oxy represents the corporate side of innovation, the other two additions have their own roles in the innovation arena. Houston-based Fathom Fund, which launched its $100 million fund earlier this year, is targeting deep-tech venture opportunities and is led by Managing Partners Paul Sheng and Eric Bielke.

Founded in Berkeley, California, Activate, which announced its expansion into Houston in 2023, has officially named its local office in the Ion. The hardtech-focused incubator program recently named its inaugural cohort and opened applications for the 2025 program.

Other recent joiners to the Ion includes Kongsberg Digital, Artemis Energy Partners, CES Renewables, and Eleox.

“The partnerships we’ve forged are vital to shaping the Ion into a vibrant ecosystem for startups, where collaborative innovation is not only driving local economic growth but also positioning Houston as a global leader in the energy transition,” Paul Cherukuri, chief innovation officer at Rice University, says. “With our team leading the programming and activation across the Ion district, we are creating companies that harness cutting-edge technology for the benefit of society—advancing solutions that contribute to social good while addressing the most pressing challenges of our time. This powerful network is redefining Houston’s role in the future of energy, technology, and social impact.”