State privacy legislation

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Keypoint: After an active winter of proposed state privacy laws, it appears that all eyes will once again be on California for the remainder of the year as we wait for final CCPA regulations, the fate of the CCPA 2.0 ballot measure, and other privacy bills being considered by the California legislature.

Over the past few months, there has not been a lack of things to talk about as it relates to U.S. privacy law developments. Between the CCPA, Washington Privacy Act, CCPA 2.0, and numerous privacy bills proposed in state legislatures, practically every day brought a new story.  However, a lot has changed in a short period of time.

First, the Washington Privacy Act failed to pass (although Washington did enact a facial recognition bill). Then, the world changed with the Coronavirus pandemic.

Yet, there are still developments in U.S. privacy law. Below is an overview of the ones that we have been tracking over the past few weeks.

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Map of Wisconsin State in USA

Keypoint: The Wisconsin Data Privacy Act would create CCPA and GDPR-like rights for Wisconsin residents and would strengthen Wisconsin’s data security and breach notification requirements.

Lawmakers in Wisconsin have proposed three bills that, if enacted, would create privacy rights for Wisconsin residents and compliance burdens for entities that process or control consumer data. All three bills were introduced on February 10, 2020 and an initial public hearing was held on February 12, 2020.

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Conceptual image about how a laptop computer with internet open a virtual door to worldwide information sharing.Keypoint: 2020 promises to be another ground-breaking year in privacy and cybersecurity law in the United States.

2019 was an exciting year in privacy and cybersecurity law. In the United States, the California Consumer Privacy Act (CCPA) was the most significant story, but there also were developments in states such as New York and Nevada. Numerous other states also considered consumer privacy legislation, and federal lawmakers even jumped into the fray, proposing a variety of bills and regulations. Overseas, GDPR garnered the most headlines of course, but other countries, such as Brazil, also made news.

But 2019 was just the start. There is no doubt that privacy and cybersecurity law is undergoing a fundamental change in the United States. If nothing else, the legal landscape of privacy law in the United States promises to look very different by the end of the year.

Below we discuss what we anticipate will be the biggest stories in 2020 and beyond.

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Conceptual image about how a laptop computer with internet open a virtual door to worldwide information sharing.September 13 was the final day for the California legislature to pass bills amending the California Consumer Privacy Act (CCPA) prior to its January 1, 2020, effective date. After months of speculation and anticipation, we finally have clarity (subject to the Governor’s approval) on the CCPA’s provisions.

Although there were changes – and both business and privacy advocates are claiming victories – the CCPA did not undergo a dramatic change. For businesses, the most notable changes are the addition of limited exemptions for the personal information of employees and business to business contacts as well as changes to the definition of personal information. On the other hand, privacy advocates will point to what did not change, namely, the CCPA retained its core privacy rights.

Below we discuss the changes.

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Key Point: If signed by the Governor, the legislation will expand the types of personal information covered by the CCPA’s provision authorizing private litigants to seek statutory damages of between $100 and $750, per consumer per incident, for data breaches.

On September 6, the California legislature passed amendments to the state’s data breach notification statutes…

data privacyKey Point:  On October 1, 2019, the amendments to Nevada’s privacy policy statute will go into effect, requiring entities subject to the statute to revise their online privacy policies and create an internal process to ensure compliance with the new opt-out right.

As we initially discussed back in May, the Nevada legislature recently amended…

Texas flagThe 86th Texas Legislature passed several bills related to cybersecurity during its regular session, which came to a close on May 27, 2019.

Texas Privacy Protection Advisory Council

HB 4390, which creates a Texas Privacy Protection Advisory Council to study privacy laws in Texas, other states, and relevant foreign jurisdictions, has been sent to the Governor for signature. Composed of members of the Texas House of Representatives, Texas Senate, and relevant industry members appointed by the Governor, the Council will be charged with recommending statutory changes regarding privacy and protection of information to the Legislature. The Council will expire on December 31, 2020.

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data privacyKey Point:  Although not as far-reaching as the CCPA, the Nevada legislation will require entities subject to the statute to revise their online privacy notices and create an internal process to ensure compliance with the new opt-out right.

As we previously reported, the Nevada legislature has been considering legislation to amend Nevada’s existing online privacy notice statutes, NRS 603A.300 to .360. On May 23, 2019, the Nevada Assembly unanimously passed that legislation. The Senate previously passed it in April. The legislation is now headed to the Governor’s office for signature.

The legislation amends Nevada’s law in two notable ways. First, entities subject to the statute will need to establish a designated request address through which consumers can submit verified requests directing the entity not to make any “sale” of covered information collected about consumers. That provision will be enforceable only by the Nevada Attorney General’s office which can seek an injunction or $5,000 penalty for “each violation.” Second, the legislation excludes financial institutions subject to the Gramm-Leach-Bliley Act, HIPAA covered entities, and certain motor vehicle manufacturers from having to comply with the online privacy notice statute.

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Texas flagAs we previously reported, the Texas legislature has been considering two bills directed at addressing consumer privacy. Those bills were proposed in the wake of last year’s enactment of the California Consumer Privacy Act.

On May 7, 2019, the Texas House voted overwhelmingly to pass one of those bills – HB 4390 – however, the version it passed was significantly amended and will no longer provide any privacy rights to Texas residents.

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data privacyAs we first reported in February, the Nevada legislature has been considering legislation that would amend its online privacy notice statutes, NRS 603A.300 to 360. Among other things, Nevada’s existing law requires “operators” to provide a notice to consumers that (1) identifies the types of information the operator collects online, (2) describes the process (if any) for consumers to review or request changes to their information, (3) describes the process by which the operator notifies consumers of changes to the notice, and (4) discloses whether a third party may collect covered information about an individual’s online activities over time and across different Internet websites or online services.
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