House Commerce - 2024-05-06 - 8:30AM

01:15:55
https://www.youtube.com/watch?v=y4D_ZAUKKC0

Resumen

TLDRLe document détaille les délibérations de la commission sur le projet de loi h121 relatif à la confidentialité des données. Parmi les principaux points abordés, on note des modifications sur la définition des données biométriques, qui n'incluent plus les photographies et enregistrements sauf s'ils servent à identifier une personne. Le projet renforce la protection des données des mineurs, exigeant un consentement explicite pour leur collecte et traitement. Un point majeur est l'interdiction de la vente des données sensibles, même avec consentement. Le ciblage publicitaire est également abordé, limitant les publicités ciblées aux interactions avec le site même d'une entreprise, sauf consentement. Les seuils d'applicabilité de la loi sont augmentés initialement puis réduits progressivement. Une attention particulière est portée sur les courtiers en données, insistant sur l'utilisation légitime des informations. Enfin, le projet de loi introduit un droit d'action privée permettant des dommages-intérêts statutaires sous certaines conditions, avec une application progressive des modifications jusqu'en 2029.

Para llevar

  • 🔍 La définition des données biométriques exclut les simples photographies à moins qu'elles ne soient utilisées pour identifier.
  • 🛑 La vente de données sensibles est totalement interdite.
  • 👶 Le consentement est requis pour le traitement des données de mineurs.
  • 📊 Les seuils pour appliquer la loi augmentent puis sont réduits progressivement.
  • 🛡️ La loi impose des obligations de vérification de l'utilisation légitime aux courtiers en données.
  • 📈 Le ciblage publicitaire doit être basé sur la première partie, sauf consentement.
  • ⚖️ Le droit d'action privée inclut des dommages-intérêts statutaires après des violations non corrigées.
  • 📑 Les nouvelles règles seront implémentées progressivement de 2025 à 2029.
  • 🔄 Les modifications apportées par le Sénat sont partiellement acceptées dans le projet final.
  • 🕒 Un échéancier progressif est établi pour les nouvelles obligations de conformité.

Cronología

  • 00:00:00 - 00:05:00

    Introduction des discussions du comité sur la confidentialité des données avec l'Attorney John Gray. Il présente une version modifiée du projet de loi h121, mettant en lumière les changements récents liés à la confidentialité des données par rapport à la version du Sénat, notamment des modifications non substantielles concernant les définitions.

  • 00:05:00 - 00:10:00

    Spécifications sur les données biométriques : les photographies et enregistrements ne sont plus inclus à moins qu'ils ne soient utilisés pour identifier un individu, clarifiant ainsi les données sensibles. Accent sur une meilleure protection consistant à harmoniser les législations nationales tout en permettant des transferts d'images sans entrave. Changements relatifs au traitement des données des mineurs pour minimiser les risques.

  • 00:10:00 - 00:15:00

    Clarification sur l'information de géolocalisation, reformulée pour se conformer aux pratiques des autres États tout en étant plus protectrice. Vérification des exclusions concernant les informations disponibles publiquement et confirmation que la génération de données biométriques sans consentement ne sera pas considérée comme publique.

  • 00:15:00 - 00:20:00

    Discussion sur la nécessité d'inclure des tatouages et autres caractéristiques physiques dans les données biométriques. L'accent est mis sur la distinction entre identification passive par photo et collecte active d'informations sensibles. Préoccupation sur la suppression des blessures mentales dans la protection des données des mineurs.

  • 00:20:00 - 00:25:00

    Suppression des blessures mentales de la section concernant le préjudice aux mineurs. Discussion sur l'implication de l'exclusion des résidents temporaires des protections. Continuité sur les exigences de protection pour les mineurs connus. Ajustements mineurs sur les catégories de données sensibles et les pratiques de commerce.

  • 00:25:00 - 00:30:00

    On discute de la commercialisation des données personnelles, s'inspirant des propositions du Sénat mais gardant des protections importantes pour éviter les échanges non monétaires de données. Inclusion des déclarations fiscales dans les informations financières sensibles, et élargissement de la protection pour les mineurs.

  • 00:30:00 - 00:35:00

    Modification majeure pour inclure les données des mineurs de plus de 13 ans comme sensibles et requérant un consentement direct, sans nécessiter celui des parents, pour se conformer à d'autres législations récentes. Ajustement des publicités ciblées pour autoriser celles de première partie mais avec restrictions pour les mineurs avec consentement opt-in.

  • 00:35:00 - 00:40:00

    Limitations de l'applicabilité des lois avec des seuils augmentés progressivement pour permettre une mise en œuvre phasée de la réglementation sur la confidentialité des données. Ajustements des exemptions pour les organisations à but non lucratif suivant le modèle du Sénat, concentré sur l'utilisation institutionnelle des données.

  • 00:40:00 - 00:45:00

    Les droits des consommateurs sur les données sont clarifiés avec une note sur la non-obligation de suppression en cas d'exigence légale. Les obligations des contrôleurs sont précisées, notamment en matière de limitation de la collecte des données selon les nécessités raisonnables, éliminant les publicités ciblées de première partie nécessitant un opt-in.

  • 00:45:00 - 00:50:00

    Changement majeur impliquant l'interdiction de la vente de données sensibles, s'alignant sur les pratiques du Maryland et créant des implications significatives pour la conformité des entreprises. Discussions sur les implications d'interdiction ou de consentement en matière de publicité et de vente de données de mineurs.

  • 00:50:00 - 00:55:00

    Révision des obligations des contrôleurs concernant les données des mineurs, intégration de principes plus stricts liés à la durée et à la finalité de la conservation des données. Clarifications sur l'authentification et la localisation IP pour vérifier la résidence pour les droits de données régionales.

  • 00:55:00 - 01:00:00

    Ajustements linguistiques pour rendre la législation plus cohérente, notamment en ce qui concerne la connaissance délibérée des consommateurs mineurs, renforçant l'alignement avec d'autres lois existantes. Maintien des exclusions de géolocalisation et de la collecte de données non essentielles dans d'autres sections législatives pour d'autres lois comme le Kids Code.

  • 01:00:00 - 01:05:00

    Adaptation de la réglementation du courtage de données avec la suppression des options d'opt-out individuelles pour favoriser les études et recommandations futures sur la faisabilité d'un opt-out général facilité par l'État, impliquant différentes agences pour établir rapport et recommandations.

  • 01:05:00 - 01:10:00

    Démonstration des changements des pénalités pour le non-respect de l'enregistrement des courtiers en données avec des amendes accrues mais avec une période d'attente étendue à 30 jours pour des ajustements. Nouvelle obligation de vérification des licences d'utilisation pour les courtiers en données avant la diffusion des informations.

  • 01:10:00 - 01:15:55

    Implémentation phasée des seuils d'applicabilité et des droits d'action privés : initialement basés sur la protection des consommateurs déjà en place, évoluant vers des dommages-intérêts potentiels statutaires pour les violations de données sensibles et des mineurs. L'analyse de ces nouveaux cadres commence en 2027 avec un suivi complet requis.

Ver más

Mapa mental

Mind Map

Preguntas frecuentes

  • Quels changements ont été apportés à la définition des données biométriques ?

    La définition exclut désormais les photographies, enregistrements audio ou vidéo et leurs dérivés, sauf s'ils sont générés pour identifier une personne spécifique.

  • Qu'indique le projet de loi sur la collecte de données de mineurs ?

    Il exige le consentement pour toute collecte ou traitement de données provenant de mineurs identifiés.

  • Comment le projet de loi traite-t-il la vente de données sensibles ?

    La vente de données sensibles est interdite, même avec consentement.

  • Y a-t-il des exceptions à la déclaration publique de certaines informations ?

    Les données biométriques collectées par une entreprise à l'insu du consommateur ne sont pas considérées comme des informations publiquement disponibles.

  • Comment le projet de loi définit-il le ciblage publicitaire ?

    Le ciblage publicitaire basé sur les interactions avec des sites distincts d'une entreprise nécessite un consentement, sauf pour la publicité du premier parti.

  • Quelles modifications ont été apportées au seuil d'applicabilité de la loi ?

    Les seuils ont été augmentés initialement et seront réduits progressivement sur plusieurs années.

  • Quel est le statut de la vente de données des mineurs ?

    La vente des données des mineurs est interdite lorsque l'entreprise sait ou évite délibérément de savoir que l'utilisateur est mineur.

  • Quelles sont les nouvelles obligations pour les courtiers en données ?

    Ils doivent s'assurer que les informations personnelles sont utilisées à des fins légitimes et ne pas les fournir s'ils ont des raisons de croire qu'elles seront utilisées illégalement.

  • Comment le projet de loi aborde-t-il le droit privé d'action ?

    Il introduit des dommages-intérêts statutaires disponibles après notification et échec à corriger une violation.

  • Quand les exemptions et nouvelles règles prendront-elles effet ?

    Les changements s'appliqueront progressivement à partir de juillet 2025, avec des étapes d'ajustement jusqu'en 2029.

Ver más resúmenes de vídeos

Obtén acceso instantáneo a resúmenes gratuitos de vídeos de YouTube gracias a la IA.
Subtítulos
en
Desplazamiento automático:
  • 00:00:00
    of May
  • 00:00:02
    6 house Commerce and committee on the
  • 00:00:06
    committee on Commerce and economic
  • 00:00:08
    development um
  • 00:00:11
    8:30ish and we'll start with
  • 00:00:15
    um Attorney John gr do a walkthrough of
  • 00:00:23
    h121 uh John Gray office of legislative
  • 00:00:26
    Council I will screen share
  • 00:00:30
    yeah that's pretty
  • 00:00:33
    good okay
  • 00:00:35
    so you guys have seen this many times
  • 00:00:38
    but it's been a little while um we're
  • 00:00:41
    jumping back into Data privacy the
  • 00:00:44
    highlighting that you're going to see
  • 00:00:45
    here is the changes relative to the
  • 00:00:46
    version as passed out by you guys passed
  • 00:00:49
    out by the house um not against what the
  • 00:00:53
    Senate has done and obviously that's
  • 00:00:54
    still ongoing my understanding is that
  • 00:00:57
    this language is being considered and
  • 00:00:58
    this is what you see in the Stream range
  • 00:01:00
    head at the top um for inclusion in s289
  • 00:01:05
    so with that I will jump in and I will
  • 00:01:06
    call out where there are changes some of
  • 00:01:08
    it you won't see and I will try to call
  • 00:01:10
    that out others should be in
  • 00:01:12
    highlighting when I say that you won't
  • 00:01:14
    see it it's a deletion so the first
  • 00:01:17
    piece is just the first definition
  • 00:01:18
    previously was abortion this is a
  • 00:01:20
    cleanup change to remove that because
  • 00:01:22
    there were no other references that
  • 00:01:23
    pulled in that term so it wasn't
  • 00:01:25
    necessary to call it out it's not a
  • 00:01:27
    substantive change this doesn't affect
  • 00:01:29
    anything about reproductive health or
  • 00:01:30
    the like this is just cleanliness
  • 00:01:33
    basically tidiness for the document
  • 00:01:36
    um there is a change to biometric data
  • 00:01:39
    so this is a fairly substantive one this
  • 00:01:42
    is essentially accepting what Senate
  • 00:01:45
    Economic Development proposed um to the
  • 00:01:48
    definition of biometric data you may
  • 00:01:49
    recall that previously this list of and
  • 00:01:52
    just to reorient biometric data is a
  • 00:01:54
    kind of sensitive data so we're talking
  • 00:01:55
    about opin consent for this kind of
  • 00:01:57
    processing uh previously biometric data
  • 00:02:00
    included as
  • 00:02:01
    subdivisions seven or romanet 7 and 8 uh
  • 00:02:05
    photographs depictions images recordings
  • 00:02:07
    and then data derived from those pieces
  • 00:02:10
    what you see now is those have been
  • 00:02:11
    pulled out um and replaced with
  • 00:02:13
    biometric data does not include those
  • 00:02:15
    digital or physical physical photographs
  • 00:02:17
    audio or video recordings or any data
  • 00:02:19
    generated from those photographs or
  • 00:02:21
    recordings unless and this is key unless
  • 00:02:24
    such data is generated to identify a
  • 00:02:25
    specific individual so what this is
  • 00:02:26
    meant to say is just regular images and
  • 00:02:30
    the like are not meant to be picked up
  • 00:02:31
    by the definition of biometric data
  • 00:02:33
    that's not going to be sensitive data
  • 00:02:34
    that requires opt-in however if people
  • 00:02:36
    are generating the face templates that
  • 00:02:39
    you see above um or other things from
  • 00:02:41
    those photographs or recordings that
  • 00:02:43
    would be a kind of biometric data so
  • 00:02:44
    this is a nice separation um aligned
  • 00:02:48
    with other states allows you to get at
  • 00:02:49
    the kind of harm that you were trying to
  • 00:02:51
    get at I think with those previous
  • 00:02:53
    categories but avoids essentially
  • 00:02:56
    cutting off um a lot of transfers of
  • 00:03:00
    images depictions recording so I think
  • 00:03:02
    that this is a safer position a Le a
  • 00:03:05
    more defensible position to be in and
  • 00:03:06
    still lets you get at the same kinds of
  • 00:03:08
    harms that you were trying to get
  • 00:03:11
    at we'll jump down to uh heightened risk
  • 00:03:15
    of harm to miners there's one change
  • 00:03:17
    here which you won't
  • 00:03:19
    see yes heighten risk of harm to a minor
  • 00:03:22
    um in speaking with others this
  • 00:03:25
    subdivision B about processing personal
  • 00:03:28
    data of a minor in a manner presents a
  • 00:03:30
    reasonably foreseeable risk of financial
  • 00:03:32
    physical or reputational injury uh this
  • 00:03:35
    is previously contemplated emotional and
  • 00:03:37
    mental injury to the minor out of a
  • 00:03:40
    concern that uh these might be too
  • 00:03:43
    expansive uh to put you kind of in a
  • 00:03:45
    more defensible place those have been
  • 00:03:47
    removed and to align with the approach
  • 00:03:48
    in other stacees and I think that this
  • 00:03:49
    is also aligning with kids code although
  • 00:03:52
    admittedly I don't know as much about
  • 00:03:54
    hit code to say um but this is kind of a
  • 00:03:57
    a safety type change it still preserves
  • 00:03:59
    other kinds of injury here including
  • 00:04:03
    importantly reputational injury which is
  • 00:04:06
    sort of in the same vein but more
  • 00:04:07
    precise than just what is mental injury
  • 00:04:10
    to a minor
  • 00:04:13
    sure uh I can jump down
  • 00:04:16
    to precise geolocation data uh this
  • 00:04:20
    aligns essentially with the approach
  • 00:04:22
    taken in other states except that we use
  • 00:04:24
    a radius of 1,850 Ft which is broader uh
  • 00:04:28
    so it's more protective than than what
  • 00:04:30
    other states use it's from Toy 1750 I
  • 00:04:33
    think that California uses 1850 um
  • 00:04:36
    basically the previous definition you
  • 00:04:37
    had captured this same content except
  • 00:04:40
    that had it had a line that um in effect
  • 00:04:44
    and it's interesting that no one really
  • 00:04:46
    went into this uh there was a line in
  • 00:04:48
    the previous draft that essentially made
  • 00:04:50
    any data generated from a phone uh
  • 00:04:53
    precise gation data whether or not it
  • 00:04:56
    was used or could be used to identify
  • 00:04:58
    specific location of a consumer so that
  • 00:05:00
    has been pulled out I don't think that
  • 00:05:02
    was probably anyone's actual intent so
  • 00:05:05
    this aligns with other states this is um
  • 00:05:08
    still getting at the same kind of data
  • 00:05:09
    that you want to get
  • 00:05:15
    it publicly available information this
  • 00:05:18
    is
  • 00:05:19
    a
  • 00:05:22
    change um to add in a new piece to make
  • 00:05:26
    clear that biometric data that is
  • 00:05:27
    collected by a business about a consumer
  • 00:05:30
    without that consumer's knowledge would
  • 00:05:32
    not be publicly available information so
  • 00:05:33
    this is you know someone's just taking a
  • 00:05:35
    picture you're sitting in a cafeteria
  • 00:05:37
    whatever it is it's you can be seen
  • 00:05:39
    there but if people start generating
  • 00:05:41
    biometric data from that um that would
  • 00:05:44
    not be considered publicly available
  • 00:05:45
    information just because you happen to
  • 00:05:46
    be sitting um out in public they had to
  • 00:05:49
    take that step to create the biometric
  • 00:05:51
    data and this is a way of ensuring that
  • 00:05:54
    because as you'll recall publicly
  • 00:05:55
    available information is not part of the
  • 00:05:57
    category of personal data which means it
  • 00:05:59
    is not not regulated under the act so if
  • 00:06:02
    biometric
  • 00:06:03
    data otherwise met the common sense uh
  • 00:06:07
    understanding what publicly available
  • 00:06:08
    information was you can imagine that all
  • 00:06:10
    kinds of bace scraping and just people
  • 00:06:12
    sitting out on a sidewalk and and
  • 00:06:14
    capturing folks would be not picked up
  • 00:06:17
    at all by the act so this is a way um of
  • 00:06:20
    making sure that you do get at those
  • 00:06:22
    kinds of biometric data and this is
  • 00:06:24
    consistent with I know that Maryland
  • 00:06:26
    just did this it may be that other
  • 00:06:28
    states are taking this approach but this
  • 00:06:31
    is a newer piece I believe but one that
  • 00:06:34
    is consistent with the intent that you
  • 00:06:36
    guys have had and I think is more
  • 00:06:37
    protective of
  • 00:06:40
    consumers can I ask as we're going along
  • 00:06:42
    or do we need to wait until we get
  • 00:06:45
    through the
  • 00:06:46
    document I think it's fine to address it
  • 00:06:48
    go ahead y okay thanks so on the on the
  • 00:06:52
    publicly available information does not
  • 00:06:54
    include biometric data collected could
  • 00:06:57
    it do we need the word biometric there
  • 00:06:59
    does not include data collected by a
  • 00:07:01
    business about a consumer without the
  • 00:07:03
    consumer's knowledge or is that we do
  • 00:07:05
    need Biometrics because if you have just
  • 00:07:08
    generally data collected without the
  • 00:07:10
    consumer's knowledge that really is kind
  • 00:07:12
    of Common Sense understanding of what
  • 00:07:14
    publicly available is so we're not
  • 00:07:16
    trying to restrict um people can take
  • 00:07:20
    pictures
  • 00:07:21
    or capture folks out in public you don't
  • 00:07:24
    have an expectation of privacy in public
  • 00:07:27
    in that sense so we're not trying to
  • 00:07:29
    disrupt it so that anywhere you go
  • 00:07:31
    people
  • 00:07:32
    cannot do things you know about you they
  • 00:07:35
    can't uh capture your speech or the like
  • 00:07:37
    we just don't want them to use that
  • 00:07:39
    information in particular ways I'm
  • 00:07:42
    saying we it's you guys you guys don't
  • 00:07:43
    want them to use information in
  • 00:07:45
    particular ways that are threatening to
  • 00:07:47
    Consumers um but we don't want to run
  • 00:07:50
    into Free Speech concerns with just
  • 00:07:52
    folks um out and about regularly
  • 00:07:55
    understood publicly available
  • 00:07:56
    information they can no longer collect
  • 00:07:58
    it they can no longer trans we're not
  • 00:08:00
    trying to cause that huge alteration in
  • 00:08:03
    how um public interaction works that's
  • 00:08:06
    not what this is meant to do this is
  • 00:08:07
    just meant to get at a specific kind of
  • 00:08:10
    heightened uh harm and as we talked
  • 00:08:13
    about with the category of biometric
  • 00:08:14
    data we're also talking about something
  • 00:08:16
    that requires a little bit of a step
  • 00:08:18
    right um those facial templates and
  • 00:08:20
    fingerprinting and the like that's not
  • 00:08:22
    something that you just immediately have
  • 00:08:25
    by virtue of being out in public that's
  • 00:08:27
    a step taken to identif by someone on
  • 00:08:30
    the basis of information does that make
  • 00:08:31
    sense yeah that's much thank you I
  • 00:08:34
    appreciate that j a question um as long
  • 00:08:38
    as we're jumping in I was looking at the
  • 00:08:40
    biometric data and the things that
  • 00:08:42
    you're collecting and it struck me that
  • 00:08:45
    maybe included in that we should include
  • 00:08:48
    tattoos and other body
  • 00:08:51
    decorations H
  • 00:08:54
    um so that's interesting uh it's
  • 00:08:58
    definitely something that could be used
  • 00:08:59
    to identify a person
  • 00:09:01
    ums do it all the
  • 00:09:04
    time right
  • 00:09:08
    um data generated from the technological
  • 00:09:10
    processing of an individual's unique
  • 00:09:12
    biological physical
  • 00:09:14
    characteristics that's linked or Reason
  • 00:09:20
    linkable so I think it would depend uh I
  • 00:09:23
    get like as this is set up the tattoos
  • 00:09:26
    would not be picked up as just
  • 00:09:29
    physical photographs a physical
  • 00:09:31
    photograph but
  • 00:09:34
    um trying to think of What technological
  • 00:09:36
    processing of that would be that allows
  • 00:09:40
    for reasonable linking that's beyond
  • 00:09:41
    just a photograph because we are trying
  • 00:09:44
    to accept the syic compromise here of
  • 00:09:47
    excluding those photographs and I think
  • 00:09:49
    it's clear from a from a photograph that
  • 00:09:51
    you can just look um and make an
  • 00:09:54
    identification of tattoos if it was
  • 00:09:56
    something that went beyond that um
  • 00:10:01
    so I I guess maybe the third piece here
  • 00:10:02
    is to your point any data generated from
  • 00:10:04
    that photographs um to identify a
  • 00:10:07
    specific individual so if that was the
  • 00:10:09
    purpose of doing it then I think there
  • 00:10:11
    is an argument that it's not excluded
  • 00:10:12
    under this
  • 00:10:14
    B3 um but we're not trying to prohibit
  • 00:10:17
    the photograph itself it's just meant to
  • 00:10:20
    be
  • 00:10:21
    if people are essentially setting up a
  • 00:10:23
    database of identification on those
  • 00:10:26
    purposes I think that's what we're
  • 00:10:27
    excluding but we're not otherwise
  • 00:10:29
    excluding including the
  • 00:10:30
    photograph I don't know if that's a
  • 00:10:33
    satisfactory
  • 00:10:34
    answer wouldn't tattoo be the same thing
  • 00:10:37
    as like um normally identifiable things
  • 00:10:40
    like hair color eye color right it is a
  • 00:10:43
    kind of physical characteristic that is
  • 00:10:45
    reasonably linkable to an individual so
  • 00:10:46
    that's it's captured in the concept I'm
  • 00:10:48
    just trying to like this right here it's
  • 00:10:51
    it is a unique characteristic that can
  • 00:10:54
    be linked to them very obviously I'm
  • 00:10:55
    just trying to draw out how that would
  • 00:10:57
    be different than a fingerprint a
  • 00:11:00
    fingerprint you take an active Step
  • 00:11:02
    Beyond taking a picture of someone right
  • 00:11:04
    and we're saying the picture is excluded
  • 00:11:06
    the fingerprint it's obvious that we
  • 00:11:08
    take a step to do that I'm trying to
  • 00:11:09
    think about what the extra Step Beyond
  • 00:11:11
    photograph is for tattoos because it's
  • 00:11:14
    so obvious that from a t from a picture
  • 00:11:16
    we can just identify a particular person
  • 00:11:19
    um so I think it goes to something like
  • 00:11:22
    are we
  • 00:11:23
    generating similar to face mapping
  • 00:11:25
    geometry or templates uh are we
  • 00:11:28
    generating data for the specific
  • 00:11:30
    purposes of identification I think this
  • 00:11:32
    is what this concept does pick up if
  • 00:11:35
    you're generating for the specific
  • 00:11:37
    purposes of identification but doesn't
  • 00:11:39
    otherwise limit just the photograph
  • 00:11:42
    person who happens to have tattoos
  • 00:11:44
    that's a non-exhaustive list right this
  • 00:11:46
    is just it is it is non exhaustive but I
  • 00:11:48
    think it is important to say B does
  • 00:11:50
    definitively exclude from the concept
  • 00:11:52
    digital or physical photographs and
  • 00:11:54
    audio or video reporing so we're not
  • 00:11:55
    saying it might fit under the
  • 00:11:58
    non-exhaust of list it is excluded under
  • 00:12:01
    B definitively and we're just talking
  • 00:12:03
    about picking up that extra step taken
  • 00:12:06
    to identify a specific
  • 00:12:09
    individual um I don't know where this
  • 00:12:11
    was now I lost my place but we took out
  • 00:12:14
    mental and um psychological injuries
  • 00:12:18
    you're talking about heighten risk of
  • 00:12:20
    harm to a minor sorry you're
  • 00:12:26
    good yes from B and I'd just like to
  • 00:12:31
    flag for future reference that we're
  • 00:12:34
    doing a whole lot in um Health Care to
  • 00:12:37
    have parity between mental health and
  • 00:12:40
    physical health and from my
  • 00:12:43
    perspective that takes away some of the
  • 00:12:47
    mental
  • 00:12:48
    injury and the significance of that so
  • 00:12:52
    no I I totally took the point um and and
  • 00:12:55
    if we're working so hard in one area
  • 00:12:59
    it's unfortunate that we can't also have
  • 00:13:03
    parody in this and I'd like that to be
  • 00:13:05
    flagged them on the record and uh to to
  • 00:13:09
    your point um what we're talking about
  • 00:13:11
    when we talk about hiding risk of har to
  • 00:13:12
    a minor is that controllers offering
  • 00:13:15
    online product Services um to known
  • 00:13:18
    miners or reason that they should know
  • 00:13:20
    essentially um are minor so when they're
  • 00:13:22
    reaching out to those miners we're
  • 00:13:24
    talking about them needing to take steps
  • 00:13:25
    to taking reasonable care to avoid this
  • 00:13:28
    kind of harm
  • 00:13:30
    um and it's very clear that emotional
  • 00:13:33
    kinds of harm are major pieces of what
  • 00:13:36
    goes on with kids if not the major thing
  • 00:13:39
    that happens for kids so I think that's
  • 00:13:42
    completely fair I hope that the
  • 00:13:43
    reputational injury Point um can take up
  • 00:13:47
    some of those same pieces but within a
  • 00:13:48
    more cabined area but that's completely
  • 00:13:52
    Fair
  • 00:13:54
    mental that's one of the most dramatic
  • 00:13:56
    impacts that you can have from these
  • 00:13:57
    pieces I'm guessing kids probably are
  • 00:14:00
    more concerned about that than the
  • 00:14:01
    financial impacts of them so so I don't
  • 00:14:04
    I don't know what else to do besides
  • 00:14:07
    shout it out yep I I think this is for
  • 00:14:10
    alignment purposes um I understand I I
  • 00:14:15
    just want people to know how I feel
  • 00:14:17
    about that and one more thing at the
  • 00:14:21
    very very beginning and I'm just going
  • 00:14:23
    backwards because I thought we were
  • 00:14:24
    waiting to the end but I don't um we
  • 00:14:27
    initially had just
  • 00:14:30
    residents right that it covered residen
  • 00:14:33
    MH and um could we also include
  • 00:14:37
    temporary resident it was just another
  • 00:14:40
    thing I'd like to just bring up so we
  • 00:14:42
    had I think months ago we went through
  • 00:14:44
    the process of considering this and
  • 00:14:46
    there was concerned
  • 00:14:47
    about
  • 00:14:50
    essentially businesses then needing to
  • 00:14:52
    check as people the compliance piece of
  • 00:14:55
    it seemed unclear how people would be
  • 00:14:57
    aware when someone's going in in and out
  • 00:14:59
    and the regular kind of check-ins that
  • 00:15:01
    would be required and additionally some
  • 00:15:03
    concern about well I don't really think
  • 00:15:05
    you have extr territorial application
  • 00:15:07
    there which could raise constitutional
  • 00:15:08
    concerns because they're in the state
  • 00:15:10
    we're talking about conduct that affects
  • 00:15:12
    them here I think that the committee had
  • 00:15:14
    reasonably decided to back away from
  • 00:15:16
    that out of fears about practical
  • 00:15:18
    implementation and those kind of well if
  • 00:15:21
    you started accidentally having extra
  • 00:15:22
    territorial application raising those
  • 00:15:25
    constitutional implications so I think
  • 00:15:27
    it was a nice decision on the commit
  • 00:15:29
    like a conservative decision on the
  • 00:15:31
    committee's part not to embark on that
  • 00:15:34
    and no other state is doing it but it is
  • 00:15:36
    definitely a cool idea yeah just fly
  • 00:15:39
    again it okay thank
  • 00:15:46
    you um we can jump so we were talking
  • 00:15:49
    about publicly available information I
  • 00:15:50
    think that we got through this piece
  • 00:15:51
    about excluding biometric data um again
  • 00:15:54
    that's making sure that biometric data
  • 00:15:56
    uh that's collected without a consumer's
  • 00:15:58
    consent without their knowledge um sorry
  • 00:16:00
    not without consent without their
  • 00:16:01
    knowledge um is picked up by the
  • 00:16:04
    protections of the ACT that's the idea
  • 00:16:06
    behind
  • 00:16:07
    this the change that you see here to
  • 00:16:09
    sale of personal
  • 00:16:11
    data is one concession
  • 00:16:13
    to what Senate Economic Development
  • 00:16:17
    proposed uh you guys previously had
  • 00:16:19
    language here that's much more extensive
  • 00:16:21
    as to what exchange is and it
  • 00:16:23
    specifically called out oral
  • 00:16:25
    communication as one of the means by
  • 00:16:27
    which personal data could be trans
  • 00:16:29
    transferred so this is a concession to
  • 00:16:31
    Senate Economic Development I will say I
  • 00:16:34
    think that substantively this is the
  • 00:16:37
    same thing um but I know that this has
  • 00:16:39
    been a back and forth between I know
  • 00:16:42
    that when Senate Economic Development
  • 00:16:43
    looked at this piece they were concerned
  • 00:16:45
    about it and they did not like that oral
  • 00:16:47
    communication was called out and I said
  • 00:16:50
    exchange encompasses oral communication
  • 00:16:53
    so you may think that you are not
  • 00:16:55
    getting that picked up but you should
  • 00:16:59
    um at least I think it is a reasonable
  • 00:17:01
    read to say that that would be picked up
  • 00:17:03
    under exchange um so this is a
  • 00:17:06
    concession and I guess what you could
  • 00:17:07
    say you're losing in doing this is that
  • 00:17:10
    you don't definitively state that that
  • 00:17:12
    is the case um but it is conceptually
  • 00:17:15
    possible under this it will be up to
  • 00:17:16
    courts as to how they read this so maybe
  • 00:17:19
    I overstated that it definitively should
  • 00:17:21
    be I think it is a defensible reading of
  • 00:17:24
    what exchange is um but this is a
  • 00:17:26
    concession to Senate Economic
  • 00:17:28
    Development apprach to this um but we
  • 00:17:30
    otherwise do maintain a piece that
  • 00:17:32
    Senate Economic Development cut which is
  • 00:17:35
    this commercial purposes piece uh which
  • 00:17:38
    I think we've talked about this before
  • 00:17:39
    this was related to approaches taken in
  • 00:17:42
    California about concerns that folks
  • 00:17:45
    were exchanging consumers personal data
  • 00:17:47
    to third parties for nonmonetary
  • 00:17:51
    consideration
  • 00:17:53
    um things like what you see here such as
  • 00:17:56
    inducing another person to rent
  • 00:17:57
    subscribe to
  • 00:17:59
    certain things exchange products or
  • 00:18:01
    enabling certain commercial transactions
  • 00:18:03
    I still take the position that I took
  • 00:18:06
    last time I talked about this which is I
  • 00:18:08
    think that these pieces should be picked
  • 00:18:10
    up under other valuable
  • 00:18:12
    consideration um but given that other
  • 00:18:15
    states felt necessary to call this out I
  • 00:18:18
    take it that there is a real problem
  • 00:18:19
    with this piece and that's why we've
  • 00:18:21
    included that here that is not disrupted
  • 00:18:23
    this was dropped Inc economic
  • 00:18:24
    development but it is maintained here in
  • 00:18:26
    you guys' tra so I would say the
  • 00:18:29
    definition that you now have for sale of
  • 00:18:30
    personal data reflects one concession to
  • 00:18:32
    Senate economic development but not a
  • 00:18:34
    full concession on this piece it's very
  • 00:18:37
    anthropological reading
  • 00:18:42
    J me would be
  • 00:18:45
    proud I don't see why it would yeah but
  • 00:18:49
    I you know as I've said many times I
  • 00:18:51
    just live in a world of words and not
  • 00:18:54
    out there in reality I guess
  • 00:18:58
    fine
  • 00:18:59
    reality very much how I
  • 00:19:01
    feel particularly when this is how I'm
  • 00:19:04
    spending my
  • 00:19:08
    time reality
  • 00:19:12
    uh
  • 00:19:15
    uh yes sensitive data one tweak here um
  • 00:19:19
    this is the approach so we're talking
  • 00:19:21
    about opin consent for processing of
  • 00:19:23
    sensitive data this is the deemed list
  • 00:19:25
    of categories um Financial information
  • 00:19:29
    and we've added here this is what Senate
  • 00:19:30
    Economic Development did including a
  • 00:19:32
    consumer's tax return so this would be
  • 00:19:34
    deemed financial information
  • 00:19:38
    um so you can say concession but I'm
  • 00:19:40
    assuming this is consistent with you
  • 00:19:42
    with what you guys would want to do here
  • 00:19:43
    as
  • 00:19:46
    well uh another change here and this is
  • 00:19:50
    pretty substantive uh this previously
  • 00:19:53
    was personal data collected from a known
  • 00:19:55
    child so under 13 sensitive data this is
  • 00:19:58
    now personal data collected from a known
  • 00:19:59
    minor this is the approach that Maryland
  • 00:20:02
    just took in their most most recently
  • 00:20:04
    passed bill um to
  • 00:20:07
    protect all data of minor um so
  • 00:20:09
    requiring opt-in consent for processing
  • 00:20:11
    of these pieces I should say that of all
  • 00:20:14
    the states that we've seen pass uh
  • 00:20:16
    Maryland is the one I think has kind of
  • 00:20:19
    generated the most controversy so there
  • 00:20:21
    are many things we did not pick up from
  • 00:20:23
    Maryland's approaches and I can talk
  • 00:20:25
    about those when we get here but those
  • 00:20:26
    that we thought were nice additions from
  • 00:20:29
    a consumer protective angle we've tried
  • 00:20:31
    to add here um and I think that this is
  • 00:20:33
    a nice one the piece that we needed to
  • 00:20:35
    ensure we did not disrupt in doing this
  • 00:20:37
    is uh one of the big constitutional
  • 00:20:40
    concerns is ensuring that you don't
  • 00:20:41
    require parental consent for teenagers
  • 00:20:44
    to do particular pieces and so if what
  • 00:20:46
    you had was a mechanism that requires
  • 00:20:49
    consent um for minors by parents that
  • 00:20:51
    would be problematic but what we have is
  • 00:20:53
    parental consent required for children
  • 00:20:56
    but not for minors who are not children
  • 00:20:59
    so that's kids 13 to 17 through 17 so in
  • 00:21:04
    this case they can provide their own
  • 00:21:05
    consent they don't have to have parental
  • 00:21:06
    consent if they did require parental
  • 00:21:09
    consent that would really complicate
  • 00:21:10
    doing this piece but I think that we're
  • 00:21:12
    in a safe place to do
  • 00:21:17
    this John we we dropped Jay from
  • 00:21:21
    sensitive yes sorry thank you um we
  • 00:21:24
    previously had uh a call out here for
  • 00:21:29
    uh sensitive data that essentially
  • 00:21:31
    photographs depictions of people naked
  • 00:21:35
    or undergarment cloud is I think the
  • 00:21:38
    language that we had which was based on
  • 00:21:39
    federal language because we've added
  • 00:21:41
    some new data minimization language
  • 00:21:43
    which will I guess it's beyond data
  • 00:21:45
    minimization language because we've
  • 00:21:46
    added new principles at controller
  • 00:21:48
    obligations related to the sell of
  • 00:21:50
    sensitive data we have dropped this
  • 00:21:52
    piece otherwise you would be prohibiting
  • 00:21:55
    all kinds of potential you might Free
  • 00:21:58
    Speech concerns in including this
  • 00:22:00
    particular piece so we've dropped that
  • 00:22:02
    and I think this is a more defensible
  • 00:22:03
    place to be um and it's tied to the
  • 00:22:06
    changes that you're going to see at the
  • 00:22:07
    controller
  • 00:22:09
    obligations before you go on can I go
  • 00:22:11
    back to that minor thing I couldn't find
  • 00:22:13
    my U mute button fast enough before you
  • 00:22:16
    jump to J sorry um in kids code I know
  • 00:22:21
    this is what you were just talking about
  • 00:22:22
    I think but I just want to
  • 00:22:25
    confirm who consents or to what in the
  • 00:22:30
    in the
  • 00:22:32
    um in the data collection piece is that
  • 00:22:36
    what we were talking about aligning with
  • 00:22:37
    the two
  • 00:22:39
    bills so I I don't honestly know the
  • 00:22:42
    latest on kids code but what's required
  • 00:22:44
    under this is that um opin consent is
  • 00:22:48
    required for known miners um so anyone
  • 00:22:52
    under 18 but it is important the known
  • 00:22:54
    qualifier this is not saying that people
  • 00:22:56
    need to start taking a ative steps to
  • 00:22:59
    determine whether or not someone is a
  • 00:23:00
    minor that's that would be impermissible
  • 00:23:04
    um what's what's happening is if the
  • 00:23:07
    business already knows um that the
  • 00:23:09
    person is a minor they will need to have
  • 00:23:11
    consent for that um
  • 00:23:15
    collection or any kind of processing of
  • 00:23:17
    this instu data which includes
  • 00:23:19
    collection yeah and and I I I guess I
  • 00:23:23
    took away you were saying like 13 14 15
  • 00:23:27
    year olds can opt in on their own that's
  • 00:23:31
    apparent is not required to do you know
  • 00:23:34
    16 17 18 like that makes perfect sense
  • 00:23:36
    to me it's that 13 14 15 that I okay
  • 00:23:40
    okay just wanted to be fully
  • 00:23:42
    understanding this one thank you yep yep
  • 00:23:44
    it's from 13 through yeah 13 and older
  • 00:23:47
    is someone who will provide their own
  • 00:23:49
    consent under the ACT
  • 00:24:00
    I think we did so we did make changes to
  • 00:24:02
    targeted advertising um we previously
  • 00:24:04
    had a more restrictive piece related to
  • 00:24:09
    um a concept of targeted advertising to
  • 00:24:11
    miners that
  • 00:24:14
    um basically prohibited or required
  • 00:24:17
    consent for even first party uh targeted
  • 00:24:20
    advertising we have dropped that this is
  • 00:24:22
    a concession we still do have a more
  • 00:24:25
    fome more robust concept of what
  • 00:24:27
    targeted advertising is here than what's
  • 00:24:30
    in say Connecticut um so what we have
  • 00:24:33
    here is um and I can talk about this
  • 00:24:35
    again targeting of an advertisement to a
  • 00:24:37
    consumer based on consumer's activity
  • 00:24:39
    with one of our businesses distinctly
  • 00:24:40
    branded websites Etc other than that
  • 00:24:44
    controller distinctly branded website um
  • 00:24:46
    with which the consumer is intentionally
  • 00:24:48
    interacting so what this permits is
  • 00:24:49
    essentially first-party
  • 00:24:51
    advertising um but it does not it also
  • 00:24:55
    prohib it I say prohibits it requires
  • 00:24:57
    opt down this is a kind of advertising
  • 00:25:00
    that requires sorry opt out for any
  • 00:25:03
    consumer under the ACT opt in for minor
  • 00:25:06
    so there's a difference between the two
  • 00:25:07
    sets of categories for this kind of
  • 00:25:10
    advertising what is stronger here than
  • 00:25:13
    in say Connecticut is we have this
  • 00:25:15
    reference to distinctly branded websites
  • 00:25:18
    and what this means is a company
  • 00:25:21
    theoretically under Connecticut's could
  • 00:25:24
    own a host of different websites right
  • 00:25:27
    but their brand bred differently I think
  • 00:25:30
    that theoretically under Connecticut's
  • 00:25:32
    um Advertising based on any of the
  • 00:25:35
    activity across their different
  • 00:25:36
    Affiliated websites regardless of The
  • 00:25:38
    Branding um would not constitute
  • 00:25:40
    targeted advertising because we have
  • 00:25:42
    this specific language about distinctly
  • 00:25:44
    branded website if a group owned a bunch
  • 00:25:47
    of websites but they were distinctly
  • 00:25:49
    branded uh if you started
  • 00:25:52
    using the activity of the consumer
  • 00:25:54
    across those different branded websites
  • 00:25:56
    they're still owned by the same group
  • 00:25:57
    but they're different ly branded um that
  • 00:26:00
    could not be used to generate targeted
  • 00:26:01
    advertising so basically this is meant
  • 00:26:03
    to get at businesses you can Target
  • 00:26:06
    Advertising based on what a consumer
  • 00:26:08
    would readily understand to be a
  • 00:26:10
    first-party interaction they go to a
  • 00:26:12
    website they see that your name is on it
  • 00:26:14
    they go to another website maybe it's
  • 00:26:16
    slightly different but they still see
  • 00:26:17
    that you know your logo is there so they
  • 00:26:19
    know who they're dealing with that's the
  • 00:26:21
    idea behind this concept is it preserves
  • 00:26:24
    um businesses ability to Target
  • 00:26:26
    advertising on the basis of consumer
  • 00:26:28
    visiting them but otherwise is not meant
  • 00:26:30
    to facilitate just broad uh reach
  • 00:26:33
    targeted
  • 00:26:37
    advertising and this is I I should say
  • 00:26:39
    so this is a just to reorient this is a
  • 00:26:43
    concession in part but maintaining some
  • 00:26:46
    of the stronger Provisions that you guys
  • 00:26:48
    had when you passed this out relative to
  • 00:26:50
    other states um and when we get to the
  • 00:26:52
    data minimization principle I will make
  • 00:26:54
    clear how the changes there mean that
  • 00:26:58
    there is no disruption to targeted
  • 00:27:00
    advertising uh RIT
  • 00:27:04
    large okay we are on the applicability
  • 00:27:07
    section page
  • 00:27:09
    15
  • 00:27:11
    uh what you guys had when you passed out
  • 00:27:14
    uh this bill you had control or process
  • 00:27:18
    the personal data of not fewer than
  • 00:27:19
    6,000
  • 00:27:21
    uh 500 yeah
  • 00:27:24
    6,000 and uh half of that for your
  • 00:27:28
    second uh piece related to gross revenue
  • 00:27:31
    what we've done is to start with
  • 00:27:34
    expanded uh or raise the numerical
  • 00:27:37
    threshold so fewer businesses are
  • 00:27:38
    subject to the ACT it's going to be a
  • 00:27:40
    step down over a number of years and
  • 00:27:42
    we'll come to those at the very end but
  • 00:27:43
    the idea is that when this first goes
  • 00:27:45
    into effect higher thresholds a year out
  • 00:27:48
    lower thresholds and then a year out
  • 00:27:49
    from that the lowest thresholds kind of
  • 00:27:52
    getting closer to where you guys first
  • 00:27:54
    had passed the bill um and a change from
  • 00:27:57
    20% to 20 5% of gross
  • 00:27:59
    revenue and I should call out when
  • 00:28:01
    Senate Economic Development made these
  • 00:28:03
    changes they did land on this 25,000
  • 00:28:05
    figure so this is again a concession to
  • 00:28:08
    them but they had a different structure
  • 00:28:10
    here to just say any business regardless
  • 00:28:12
    of excuse me numerical threshold um that
  • 00:28:15
    derives more than 50% of gross revenue
  • 00:28:17
    which may be a small bucket of
  • 00:28:20
    businesses that actually made that does
  • 00:28:23
    this impact data Brokers at
  • 00:28:25
    all so um
  • 00:28:30
    yes I mean it affects them in the same
  • 00:28:32
    way that it affects anyone um if you had
  • 00:28:36
    a I I think the key piece will
  • 00:28:38
    be the gross revenue threshold but it
  • 00:28:41
    just depends on how many consumers data
  • 00:28:45
    Brokers are processing the data of those
  • 00:28:48
    consumers without an empirical picture
  • 00:28:50
    of how big those are um it's the same
  • 00:28:54
    question that would apply to anyone else
  • 00:28:56
    right it's do they meet these thresholds
  • 00:28:58
    and so the the easiest answer is just to
  • 00:29:00
    say in year one fewer folks are going to
  • 00:29:02
    be subject to this whether that means
  • 00:29:04
    fewer data Brokers are subject to this
  • 00:29:06
    I'm not sure it could that was my
  • 00:29:09
    question I should have asked it
  • 00:29:10
    differently does it ease restrictions on
  • 00:29:12
    data Brokers e easier than what we have
  • 00:29:15
    right now on them that's my question but
  • 00:29:17
    we probably don't have that information
  • 00:29:19
    yeah so it doesn't ease the restrictions
  • 00:29:21
    it's just whether or not they're subject
  • 00:29:24
    and without knowing the picture
  • 00:29:26
    of how many they process now I'm
  • 00:29:28
    guessing someone who's a data broker
  • 00:29:29
    probably processes a lot of consumers so
  • 00:29:32
    they may in every instance be subject to
  • 00:29:34
    this um but it is theoretically the case
  • 00:29:37
    that fewer data Brokers will be subject
  • 00:29:39
    to this in year one and I think that
  • 00:29:40
    that is the compromise that you guys are
  • 00:29:42
    striking is a a phase in approach in
  • 00:29:45
    recognition of the claims folks have
  • 00:29:48
    raised and the approach that the Senate
  • 00:29:50
    has taken to how are we rolling this out
  • 00:29:52
    I think this is a concession in
  • 00:29:56
    part thank you
  • 00:30:01
    uh exemptions I think that we only have
  • 00:30:03
    one addition here and this is a
  • 00:30:07
    essentially a slight modification to an
  • 00:30:09
    exemption that was accepted in Senate
  • 00:30:11
    economic development in the Senate there
  • 00:30:14
    had been a entity level exemption for
  • 00:30:16
    what is the equivalent of this new
  • 00:30:18
    exemption this is an exemption for
  • 00:30:20
    information so it's data level that is
  • 00:30:23
    processed for purposes of compliance
  • 00:30:25
    enrollment or degree degree verification
  • 00:30:27
    or research Services by and this is
  • 00:30:29
    important it's a nonprofit organization
  • 00:30:31
    that is established to provide
  • 00:30:33
    enrollment data reporting services on
  • 00:30:34
    behalf of postsecondary schools um so
  • 00:30:38
    there are two pieces that make this
  • 00:30:41
    exemption restrictive one is the kind of
  • 00:30:44
    nonprofit to which this is available
  • 00:30:46
    it's only for those that are established
  • 00:30:47
    for this particular purpose so I don't
  • 00:30:49
    imagine this is picking up a lot of
  • 00:30:50
    nonprofits these are folks who are
  • 00:30:52
    established to provide enrollment data
  • 00:30:53
    reporting to postsecondary schools they
  • 00:30:56
    may do other things as well but Ong
  • 00:30:58
    their purposes they're established to
  • 00:30:59
    provide that enrollment data reporting
  • 00:31:01
    services and it's only data level it's
  • 00:31:04
    for information that is processed for
  • 00:31:06
    specific purposes as well so those are
  • 00:31:07
    the two restrictions kind of nonprofit
  • 00:31:09
    and what the information is processed
  • 00:31:11
    for admittedly Research Services is a
  • 00:31:15
    broad category so I I will flag that but
  • 00:31:18
    I think given that you have the two
  • 00:31:20
    pieces together for particular purposes
  • 00:31:23
    and only a narrow set of nonprofits the
  • 00:31:27
    hope is that this is restrictive enough
  • 00:31:28
    to permit those folks who are providing
  • 00:31:31
    degree verification to jobs and schools
  • 00:31:34
    to continue to operate without needing
  • 00:31:36
    to worry about um this piece um and this
  • 00:31:39
    was a concession
  • 00:31:46
    uh we jump down to Consumer personal
  • 00:31:50
    data rights um this is really cleanup
  • 00:31:52
    changes that you see here in two this is
  • 00:31:54
    the same content as what was here before
  • 00:31:56
    but I think it's worded a bit more clear
  • 00:31:58
    I'm happy to talk about this if you want
  • 00:31:59
    to but it's the same as what's before so
  • 00:32:01
    I don't know that we need to go into
  • 00:32:02
    this it's just easier to read
  • 00:32:05
    now uh there is a substantive change to
  • 00:32:09
    this subdivision 4 on line six but I
  • 00:32:10
    think this is consistent with everyone's
  • 00:32:12
    expectation this is making clear uh and
  • 00:32:14
    this should be comforting to Industry
  • 00:32:16
    that if they have a requirement under
  • 00:32:18
    law to retain personal data um they are
  • 00:32:21
    not required to delete the personal data
  • 00:32:22
    at consumer
  • 00:32:24
    request but I think that was probably
  • 00:32:26
    already in the ACT elsewhere this just
  • 00:32:29
    makes it clear in the consumer data
  • 00:32:31
    rights that that's the case uh
  • 00:32:33
    subdivision 5 again this is just
  • 00:32:35
    reordering this is not a substantive
  • 00:32:37
    change this is just making it a bit
  • 00:32:38
    easier to read this particular
  • 00:32:42
    section the real biggest substantive
  • 00:32:44
    changes come in the next section so this
  • 00:32:47
    is the heart of the updates that have
  • 00:32:48
    been made
  • 00:32:50
    here uh I this is not a substantive
  • 00:32:54
    change this is just making it easier to
  • 00:32:55
    read the
  • 00:32:56
    section d duties of controllers this is
  • 00:32:58
    where the real meat of the changes are
  • 00:33:02
    um the first
  • 00:33:03
    piece when you guys sent
  • 00:33:06
    out the section 2419 you had data
  • 00:33:09
    minimization principles here that said
  • 00:33:11
    something like shall process only as
  • 00:33:14
    reasonbly necessary and proportionate to
  • 00:33:15
    provide products or
  • 00:33:17
    services or for another disclosed
  • 00:33:19
    purpose that is compatible with those
  • 00:33:21
    disclosed purposes or if they obtain
  • 00:33:23
    consent they could do it for another
  • 00:33:25
    purpose the point that folks raised
  • 00:33:28
    fairly uh when this reached the Senate
  • 00:33:31
    was that because the processing is tied
  • 00:33:34
    to that restriction on what is reasonbly
  • 00:33:37
    necessary and proportionate is tied to
  • 00:33:40
    the product or service offered because
  • 00:33:42
    someone's going to a website not to
  • 00:33:43
    receive targeted advertising that
  • 00:33:46
    technically uh businesses would could
  • 00:33:49
    require opin to to engage in targeted
  • 00:33:52
    advertising I don't think that that was
  • 00:33:54
    you guys' intention so this was
  • 00:33:55
    something that was uh resolved on the
  • 00:33:58
    Senate side in a different manner than
  • 00:33:59
    you see here I don't necessarily have to
  • 00:34:01
    go into it but they changed away from
  • 00:34:03
    products or services to go toward what
  • 00:34:06
    is reasonbly necessary reasonbly
  • 00:34:07
    necessary and proportionate to um
  • 00:34:10
    disclosed purposes now what I would say
  • 00:34:12
    about that is they did solve the concern
  • 00:34:14
    about requiring opin for targeted
  • 00:34:16
    advertising but what that regime
  • 00:34:19
    produces is basically as long as a
  • 00:34:21
    business discloses their set of purposes
  • 00:34:23
    to
  • 00:34:24
    you they can do what they want for those
  • 00:34:27
    purposes now it's meant to be what's
  • 00:34:28
    reasonbly necessary and proportionate to
  • 00:34:30
    those purposes
  • 00:34:32
    um but I don't know how strong of a
  • 00:34:35
    restriction that is um to me that
  • 00:34:37
    language about what is reasonbly
  • 00:34:39
    necessary and proportionate and I can
  • 00:34:40
    talk about this language now what is
  • 00:34:42
    reasonbly necessary and proportionate
  • 00:34:43
    makes more sense when we talk about
  • 00:34:44
    limiting
  • 00:34:45
    collection um it's easier to say what is
  • 00:34:48
    recently necessary to collect the data
  • 00:34:50
    to provide a particular service than to
  • 00:34:51
    say what is really been necessary to
  • 00:34:53
    process for a particular purpose so what
  • 00:34:55
    we have here is a slightly different
  • 00:34:58
    data minimization principle but I think
  • 00:35:00
    this is the most intuitive one that I
  • 00:35:03
    have seen uh yet and this is in part
  • 00:35:06
    pulled from Maryland but we do not
  • 00:35:08
    accept all of their changes um because
  • 00:35:11
    they do have some uh Stronger
  • 00:35:14
    prohibitions that we did not want to
  • 00:35:15
    adopt here so what does this say this
  • 00:35:17
    says a controller shall limit the
  • 00:35:18
    collection of personal data to what is
  • 00:35:20
    reasonably necessary and proportionate
  • 00:35:21
    to provide or maintain a specific
  • 00:35:23
    product or service requested by the
  • 00:35:25
    consumer to the data pertains so this is
  • 00:35:28
    saying uh a consumer goes to a business
  • 00:35:30
    they go to their website they purchase
  • 00:35:32
    something something they offer up their
  • 00:35:34
    data to that business now what the
  • 00:35:37
    business has to do is limit the
  • 00:35:39
    collection of that data only to what's
  • 00:35:40
    required what is reasonably necessary
  • 00:35:42
    and it allows them to make that
  • 00:35:43
    determination it's not a strictly
  • 00:35:45
    necessary bar it's what's reasonably
  • 00:35:47
    necessary to provide that product or
  • 00:35:49
    service so that's the consumer making an
  • 00:35:52
    exchange with the business saying I'm
  • 00:35:53
    handing over information and I receive
  • 00:35:55
    what I want in return and now the cap
  • 00:35:58
    the restriction on the business is not
  • 00:36:00
    what was in the previous draft that it
  • 00:36:02
    the Restriction is on the
  • 00:36:04
    processing what's reasonbly necessary
  • 00:36:06
    and proportionate to those purposes now
  • 00:36:08
    that they have that limited data they
  • 00:36:10
    can do not as they please but they can
  • 00:36:12
    process that data for the purposes that
  • 00:36:14
    they disclose and we'll come to the
  • 00:36:16
    restriction on that piece but I think
  • 00:36:18
    that this is a more intuitive concept of
  • 00:36:20
    data minimization consumer engages in
  • 00:36:23
    consensual exchange of information for a
  • 00:36:25
    particular product or service and the
  • 00:36:26
    business now that they receed that data
  • 00:36:28
    can use the data for the purposes that
  • 00:36:30
    they have
  • 00:36:32
    disclosed
  • 00:36:34
    um the I can pause so that's
  • 00:36:38
    like I can use this example in the past
  • 00:36:40
    like the Walgreens your you free to give
  • 00:36:44
    them your shop there they have your
  • 00:36:47
    information they know what you like so
  • 00:36:49
    you get cou funds an online coupon
  • 00:36:52
    that's might be yep
  • 00:36:55
    yep um
  • 00:36:58
    yeah and I will talk more about this
  • 00:37:00
    when we get to the Shell Nots which
  • 00:37:01
    we'll get to shortly because there's a
  • 00:37:03
    there's an interaction with that piece
  • 00:37:05
    but I think that this is fairly clear
  • 00:37:08
    language as to what businesses are
  • 00:37:09
    restricted and doing here um and is
  • 00:37:13
    avoids the targeted advertising problem
  • 00:37:15
    this does not produce you know they can
  • 00:37:17
    collect data and then they can engage in
  • 00:37:19
    targeted advertising on that basis they
  • 00:37:21
    may collect less data than they were
  • 00:37:22
    going to collect before because now they
  • 00:37:24
    have to limit that to what is necessary
  • 00:37:26
    to provide the product or service but
  • 00:37:27
    they can continue to engage in targeted
  • 00:37:29
    advertising and given that they're going
  • 00:37:31
    to engage in targeted advertising on the
  • 00:37:33
    basis of what you went there to purchase
  • 00:37:35
    or receive the information that they
  • 00:37:37
    receive from that exchange is going to
  • 00:37:39
    be what they need to engage in targeted
  • 00:37:41
    advertising so I think this is a fair
  • 00:37:44
    compromise from my
  • 00:37:46
    perspective um the changes you see here
  • 00:37:49
    at 3 and four this is again kind of a
  • 00:37:50
    tidiness change this used to be one big
  • 00:37:54
    subdivision broken it out to make it a
  • 00:37:55
    little bit clearer how the revocation of
  • 00:37:58
    consent is a separate
  • 00:38:00
    piece so what shall a controller not do
  • 00:38:03
    um this is the other data minimization
  • 00:38:05
    principle tied to this they shall not
  • 00:38:06
    process personal data for a purpose not
  • 00:38:08
    disclosed in the Privacy notice unless
  • 00:38:11
    the controller obtains the consumer's
  • 00:38:12
    consent or the purpose is reasonbly
  • 00:38:14
    necessary to and compatible with the
  • 00:38:15
    disclosed purpose so this means the
  • 00:38:18
    business can engage in the processing of
  • 00:38:20
    any disclosed purpose um that's in that
  • 00:38:23
    privacy notice if they want to go beyond
  • 00:38:26
    that they need to obtain consent unless
  • 00:38:28
    essentially the purpose they want to go
  • 00:38:30
    to that's not disclosed is sort of
  • 00:38:32
    already implied it's reasonably
  • 00:38:34
    necessary to and compatible with a
  • 00:38:35
    disclosed purpose so what businesses
  • 00:38:38
    will do they're going to provide the
  • 00:38:39
    Privacy notice they can process with the
  • 00:38:42
    limited data that they collect for the
  • 00:38:44
    purposes that are set out in that
  • 00:38:45
    privacy notice and then if they want to
  • 00:38:47
    go beyond that they'll obtain consent
  • 00:38:49
    for another piece and that is just a way
  • 00:38:51
    of maintaining the notice provisions of
  • 00:38:53
    the ACT a consumer just needs to be on
  • 00:38:55
    notice what their data is being protect
  • 00:38:57
    uh processed for but otherwise it's sort
  • 00:38:59
    of business as usual and the constraints
  • 00:39:02
    are on selection and then specific
  • 00:39:05
    restraints on what can be done with
  • 00:39:06
    sensitive data so I would say the broad
  • 00:39:08
    effect of this is that for personal data
  • 00:39:11
    writ large what the ACT does is create a
  • 00:39:14
    notice regime for consumers and then for
  • 00:39:17
    sensitive data special kinds of
  • 00:39:19
    restrictions apply that's kind of the
  • 00:39:20
    idea here is that businesses can operate
  • 00:39:23
    with set of personal data without
  • 00:39:25
    needing to make large modifications what
  • 00:39:27
    they do but they do have to take
  • 00:39:29
    different steps for sensitive
  • 00:39:33
    data okay so maintain from the previous
  • 00:39:36
    draft controllers shall not process sens
  • 00:39:38
    of data without first obtaining consent
  • 00:39:40
    um or if cons is a child uh processing
  • 00:39:43
    in accordance with
  • 00:39:45
    CA here is a this is probably the
  • 00:39:48
    biggest update of this change um and
  • 00:39:52
    this is you know beyond just cleanup
  • 00:39:55
    changes or compromise struct with the
  • 00:39:57
    Senate this is a real step out this is
  • 00:40:00
    something that Maryland does this is a
  • 00:40:02
    Prohibition on selling sensitive data
  • 00:40:04
    full stop this is uh for processing
  • 00:40:06
    sensitive data in so all kinds of
  • 00:40:09
    processing of sensitive data require
  • 00:40:11
    consent um but for sensitive data we're
  • 00:40:13
    selling saying if you sell it that's
  • 00:40:16
    just prohibited under this act so that's
  • 00:40:18
    part of why we dropped one of the
  • 00:40:20
    categories that we had under sensitive
  • 00:40:21
    data um and tightened up the other
  • 00:40:24
    pieces but this is a big step so I just
  • 00:40:27
    want to pause here and say that this is
  • 00:40:28
    the
  • 00:40:29
    biggest change I think in this draft um
  • 00:40:33
    and if you guys want to talk about it
  • 00:40:35
    you know go for it but just wanted to
  • 00:40:37
    recognize that and not speed through
  • 00:40:40
    this Stephanie is it okay I keep jumping
  • 00:40:43
    in sorry go ahead go ahead Ed I was just
  • 00:40:46
    gonna say I like this a lot and I
  • 00:40:48
    appreciate the
  • 00:40:49
    um the understanding of what we were
  • 00:40:52
    asking for and figuring out how to get
  • 00:40:54
    it onto language
  • 00:40:58
    Y and there's a way of seeing this as
  • 00:41:00
    you know selling is a kind of processing
  • 00:41:03
    so basically what you're saying is two
  • 00:41:04
    tells you that consent is required but
  • 00:41:07
    for this one Cate for this one kind of
  • 00:41:10
    processing uh we go a step further and
  • 00:41:12
    just say even in this case consent is
  • 00:41:14
    insufficient and I think it makes sense
  • 00:41:16
    intuitively if we think about it that we
  • 00:41:18
    don't want our biometric data our um tax
  • 00:41:22
    returns or our account numbers with
  • 00:41:24
    their passwords sold to people it's an
  • 00:41:26
    in concept that I think is not hard to
  • 00:41:29
    understand um but I do just want to flag
  • 00:41:31
    that this is a new kind of uh
  • 00:41:34
    prohibition that again Maryland is doing
  • 00:41:36
    this um but it is to be seen how this
  • 00:41:39
    will I don't think it's confusing how it
  • 00:41:41
    works but it will be seen how folks
  • 00:41:42
    react to
  • 00:41:45
    this um the piece that you see here in
  • 00:41:48
    four is
  • 00:41:49
    substantively the same as what's in the
  • 00:41:52
    draft that you guys passed out um
  • 00:41:55
    Marilyn goes further than this and had a
  • 00:41:56
    full prohibition on processing uh miners
  • 00:42:00
    data for these purposes I think you
  • 00:42:02
    could have real first amendment concerns
  • 00:42:05
    for the targeted advertising piece um
  • 00:42:08
    and the point about selling the
  • 00:42:10
    consumer's personal data this is in a
  • 00:42:12
    way
  • 00:42:16
    already actually this is a good point
  • 00:42:21
    um we could conceivably drop C here uh
  • 00:42:25
    because it should already be picked up
  • 00:42:26
    by three what four is saying is without
  • 00:42:29
    cons you have to get consent to process
  • 00:42:31
    personal data of a known minor for the
  • 00:42:33
    purposes of Target advertising profiling
  • 00:42:35
    or selling that consumer's personal data
  • 00:42:37
    but we already have a Prohibition on
  • 00:42:39
    selling sensitive data which includes
  • 00:42:42
    the data of minors so I think we
  • 00:42:45
    actually should do that drop 4 C does
  • 00:42:47
    that make sense to you guys just
  • 00:42:49
    to yeah
  • 00:42:52
    uh we aren't trying to permit selling of
  • 00:42:55
    minor data with consent and I think that
  • 00:42:58
    you could read this to say
  • 00:43:03
    that the the the one difference I would
  • 00:43:06
    say here is there is a slight difference
  • 00:43:09
    in sensitive data we
  • 00:43:11
    say selling
  • 00:43:13
    the uh we
  • 00:43:15
    say data of a known minor and in this
  • 00:43:19
    case we say the controller knows or
  • 00:43:22
    consciously avoids knowing is a minor so
  • 00:43:24
    there could technically be a broader
  • 00:43:26
    category captured here right
  • 00:43:31
    um so we could say in this this is
  • 00:43:35
    interesting
  • 00:43:39
    uh maybe that's a fair compromise to
  • 00:43:43
    take but does does that difference make
  • 00:43:44
    sense that if we dropped C it would mean
  • 00:43:49
    that uh folks could sell the data of
  • 00:43:53
    minors if they did not definitively know
  • 00:43:56
    that that consumer was a
  • 00:43:58
    minor under what we have here in four
  • 00:44:01
    we're saying they have to obtain consent
  • 00:44:03
    to sell minor if
  • 00:44:05
    they consciously avoid knowing which is
  • 00:44:08
    slightly different than if they do
  • 00:44:10
    definitively
  • 00:44:12
    know um but that you know given that
  • 00:44:16
    you're outright prohibiting the sell the
  • 00:44:18
    selling
  • 00:44:20
    of known minors maybe that's a fair
  • 00:44:24
    compromise to strike but I will let you
  • 00:44:25
    guys figure that out
  • 00:44:29
    does that concern make
  • 00:44:31
    sense the categories aren't exactly the
  • 00:44:34
    same technically you're you have a
  • 00:44:36
    smaller category of consumers who going
  • 00:44:38
    to fit into that known
  • 00:44:41
    minor prohibition selective
  • 00:44:46
    data so is it okay Stephanie go ahead
  • 00:44:51
    yeah so we've been talking about a full
  • 00:44:54
    prohibition on selling
  • 00:44:58
    data of a minor right throughout two
  • 00:45:00
    different bills I guess we've been
  • 00:45:02
    talking about that and I know you're not
  • 00:45:04
    an expert on your on both of
  • 00:45:07
    them but just for the committee and what
  • 00:45:09
    you're saying is if we drop
  • 00:45:12
    C A A Minor's data could be sold if the
  • 00:45:17
    minor agreed to
  • 00:45:19
    it no so if we drop C uh what it what it
  • 00:45:24
    means is a business could sell the data
  • 00:45:27
    of a minor that they did not
  • 00:45:28
    definitively know was a minor um that
  • 00:45:32
    that's what it means uh but they are
  • 00:45:34
    prohibited from selling the data of a
  • 00:45:36
    minor that they know to be a minor a
  • 00:45:38
    consumer that they know to be a minor
  • 00:45:41
    okay and then sorry go ahead yeah the
  • 00:45:44
    the the ostrich defense that we've been
  • 00:45:46
    talking about right should have known is
  • 00:45:49
    that anywhere else I know that it's here
  • 00:45:52
    consciously avoids knowing but because
  • 00:45:55
    that I think that's important I think
  • 00:45:58
    that's an important piece of this that
  • 00:46:01
    we use a lot in Vermont and that
  • 00:46:05
    um because we don't want to require data
  • 00:46:08
    collection to figure out if somebody for
  • 00:46:11
    sure is a minor we know that they
  • 00:46:13
    collect the data enough to know who
  • 00:46:16
    they're targeting and roughly what age
  • 00:46:18
    they are if not exactly what age they
  • 00:46:20
    are by their birthday and all of that we
  • 00:46:22
    know that that's already happening in a
  • 00:46:23
    lot of instances
  • 00:46:25
    so I want to make sure that that
  • 00:46:27
    consciously avoids knowing stays in
  • 00:46:31
    there so so that piece is staying the
  • 00:46:33
    question is whether or not to drop C and
  • 00:46:36
    I would say if you just include c as is
  • 00:46:39
    right now I think it would be a
  • 00:46:41
    defensible position for a business to
  • 00:46:43
    say I mean they might lose this but I
  • 00:46:46
    could see the argument that they say
  • 00:46:48
    look you prohibit selling sensitive dat
  • 00:46:49
    in three but then in four you say that
  • 00:46:51
    we
  • 00:46:52
    can obtain consent essentially to sell
  • 00:46:55
    some minor yeah yeah so they're at the
  • 00:46:58
    very least they intention I mean you
  • 00:47:01
    could
  • 00:47:02
    so I think it's easier to drop C and
  • 00:47:06
    maybe uh that will be a happier place
  • 00:47:10
    for businesses to be given the other
  • 00:47:13
    pieces here um because then they know
  • 00:47:15
    that they aren't going to be on a
  • 00:47:17
    violation for selling the data of a
  • 00:47:19
    minor that they don't know to be a minor
  • 00:47:20
    it's only in cases where they definiely
  • 00:47:22
    do know them to be um the other I'm
  • 00:47:25
    trying to think of a way if you wanted
  • 00:47:26
    to oberved exactly this you could say
  • 00:47:29
    something like selling the consumer
  • 00:47:31
    personal data
  • 00:47:34
    of of a
  • 00:47:36
    minor that is not dependably known to be
  • 00:47:40
    a minor but it just starts to read very
  • 00:47:42
    oddly and produce like
  • 00:47:44
    strange it's almost like you're
  • 00:47:46
    incentivizing them to take steps not to
  • 00:47:48
    know if someone is a minor um so that
  • 00:47:51
    they can then continue to sell the data
  • 00:47:54
    so I don't think we want to have that
  • 00:47:56
    intent
  • 00:47:58
    umone agree to take yeah yeah I think
  • 00:48:01
    it's g toct with 289 to so okay so let's
  • 00:48:04
    just cleaner to pull it it's definitely
  • 00:48:06
    easier to drop it we don't want to
  • 00:48:09
    conflict with
  • 00:48:16
    289 um do you have a comment what did
  • 00:48:19
    you have a comment kind but not
  • 00:48:22
    yet I'm thinking
  • 00:48:25
    okay uh the
  • 00:48:27
    what you see here in six we had this in
  • 00:48:29
    an earlier draft and then deleted this
  • 00:48:32
    on the basis that what we currently have
  • 00:48:34
    is seven probably captures a lot of this
  • 00:48:37
    um but this is an easy piece to include
  • 00:48:40
    I don't think it makes a huge Su to the
  • 00:48:42
    dis the difference that it does make is
  • 00:48:44
    it's saying if someone violates uh stor
  • 00:48:47
    federal laws that prohibit unlawful
  • 00:48:48
    discrimination uh that would be picked
  • 00:48:50
    up as a violation of this act if they're
  • 00:48:52
    processing personal data in violation of
  • 00:48:53
    those pieces I don't really see this is
  • 00:48:56
    a huge substance of addition uh this is
  • 00:48:58
    largely captured by whatson 7 but for
  • 00:49:00
    consistent consistency with other states
  • 00:49:03
    maybe it's worth maintaining this call
  • 00:49:05
    out um clean up flow through changes in
  • 00:49:09
    seven that's that's really your biggest
  • 00:49:11
    changes here we will get down to other
  • 00:49:13
    pieces
  • 00:49:15
    um we're talking here on page 33 about
  • 00:49:20
    what a controller needs to do to provide
  • 00:49:22
    mechanisms for consumers to exercise
  • 00:49:25
    their rights this this is
  • 00:49:28
    uh authentic authentication of a
  • 00:49:31
    consumer's request and what the new
  • 00:49:33
    language that you see here is is
  • 00:49:35
    clarifying is that use of an IP address
  • 00:49:38
    to estimate the consumer's location is
  • 00:49:40
    sufficient to determine their residency
  • 00:49:42
    and that's a piece that you would want
  • 00:49:43
    for those authentication requests if
  • 00:49:46
    they're in fact a Vermont resident and
  • 00:49:48
    can exercise this act so this is a just
  • 00:49:50
    to make clear um what businesses can do
  • 00:49:53
    to authenticate
  • 00:49:58
    on 34
  • 00:50:00
    um we've updated language throughout the
  • 00:50:03
    draft that used to say actually knows or
  • 00:50:05
    willfully disregards to instead say
  • 00:50:07
    knows or consciously avoids knowing
  • 00:50:09
    that's meant to be conceptually the
  • 00:50:11
    equivalent of that language this is
  • 00:50:13
    language you see here that's already in
  • 00:50:15
    Title 9 so that's one of the reasons for
  • 00:50:16
    the changes and also um the willfully
  • 00:50:20
    disregards uh just a plain English
  • 00:50:23
    reading of it not a legal reading to me
  • 00:50:26
    would seem to imply potentially a
  • 00:50:28
    knowledge standard and therefore not
  • 00:50:31
    be adding anything beyond actually NOS
  • 00:50:34
    um so I think this is also a bit clearer
  • 00:50:36
    than what actually knows or willfully
  • 00:50:38
    disregards means um but at the very
  • 00:50:40
    least it's conceptually the same as what
  • 00:50:42
    other states are doing it's just using
  • 00:50:43
    Vermont language to describe the same
  • 00:50:47
    piece so this is your duties of
  • 00:50:49
    controllers to miners the changes that
  • 00:50:51
    you see here or that you won't see here
  • 00:50:54
    because they're
  • 00:50:55
    deletion um relate to alignment with
  • 00:50:58
    kids
  • 00:51:00
    code uh so the first piece here this
  • 00:51:03
    used to say sh not process a minor
  • 00:51:05
    personal data for any purose other than
  • 00:51:07
    a processing purpose that is reasonably
  • 00:51:08
    necessary for this has been upgraded to
  • 00:51:10
    strictly necessary and the same piece
  • 00:51:12
    you see in three processing a minor
  • 00:51:15
    personal data for longer than is
  • 00:51:16
    strictly necessary to provide the online
  • 00:51:17
    service product for feature so in both
  • 00:51:20
    cases making it more restrictive as to
  • 00:51:22
    what is required in dealing with minor
  • 00:51:23
    personal data for these online platforms
  • 00:51:26
    um what is not visible here is previous
  • 00:51:29
    subdivisions four and five this is for
  • 00:51:32
    alignment with kids code I think that
  • 00:51:33
    you guys are dealing with this be so
  • 00:51:35
    they've been dropped here but previously
  • 00:51:37
    four
  • 00:51:38
    said um there's either geolocation or uh
  • 00:51:44
    processing gosh
  • 00:51:47
    um I can find it um
  • 00:51:57
    yes uh the previous rep yes using system
  • 00:52:01
    design features to extend use and
  • 00:52:03
    collecting a minor precise geolocation
  • 00:52:05
    data I understand that those are being
  • 00:52:07
    taken up in 289 and so they don't need
  • 00:52:10
    to be dealt with here so they've been
  • 00:52:11
    dropped here not to
  • 00:52:14
    duplicate otherwise this section is
  • 00:52:16
    largely the same as before do these are
  • 00:52:19
    processors this Remains the
  • 00:52:23
    Same uh you're almost there same updates
  • 00:52:29
    for actually knows or willly disregards
  • 00:52:31
    to knows or consciously avoids knowing
  • 00:52:32
    throughout the
  • 00:52:35
    draft this is a cleanup change you're
  • 00:52:38
    seeing uh on Section 2425 G identified
  • 00:52:42
    data uh the intent was to have this take
  • 00:52:46
    reasonable measures language in the
  • 00:52:47
    draft as passed out we' made this update
  • 00:52:49
    to the definition of deidentified data
  • 00:52:51
    and then I forgot to add this here so
  • 00:52:53
    this is just cleaning up uh to make
  • 00:52:56
    clear there is no difference between the
  • 00:52:58
    definition of deidentified data and
  • 00:52:59
    what's required under this particular
  • 00:53:01
    section this is consistent with the
  • 00:53:03
    intent that you guys had as passed
  • 00:53:07
    out
  • 00:53:09
    um okay construction of duties of
  • 00:53:11
    controllers and processors there is a
  • 00:53:15
    couple changes here we used to have a
  • 00:53:16
    subdivision four this is what we're
  • 00:53:18
    saying this chapter shall not be conr to
  • 00:53:20
    restrict entities abilities to engage in
  • 00:53:23
    particular ordinary course or internal
  • 00:53:25
    purposes
  • 00:53:27
    we previously had a subdivision 4 that
  • 00:53:28
    said shall not be construed to restrict
  • 00:53:30
    um the ability to essentially act in
  • 00:53:32
    accordance with a contract under
  • 00:53:36
    2421b with a state or local government
  • 00:53:40
    entity um the reason that this is been
  • 00:53:42
    deleted and I think this is included at
  • 00:53:44
    lobbyist request is that language
  • 00:53:47
    technically doesn't
  • 00:53:49
    accomplish anything for them even uh so
  • 00:53:54
    it's Superfluous uh technically just to
  • 00:53:57
    explain why it is Superfluous those
  • 00:53:59
    local government entities would be
  • 00:54:01
    exempt from the act under our exemptions
  • 00:54:03
    and therefore there would be no contract
  • 00:54:05
    under
  • 00:54:07
    2421b by which a entity would need to
  • 00:54:11
    comply um in addition because anyone
  • 00:54:14
    acting under a contract with the local
  • 00:54:16
    government or government entity would
  • 00:54:21
    um not be acting as a controller even if
  • 00:54:24
    you think of that government entity as
  • 00:54:26
    being exempt and and they're asking
  • 00:54:27
    themselves well the person I'm working
  • 00:54:29
    with is exempt but I may not be because
  • 00:54:32
    they're under a contract working with
  • 00:54:33
    that person they're not determining the
  • 00:54:34
    purposes of processing they're therefore
  • 00:54:36
    not a controller um and if they're not a
  • 00:54:39
    controller then they aren't going to be
  • 00:54:41
    subject to the obligations of this act
  • 00:54:43
    so I think that language is just a perlu
  • 00:54:45
    it's not needed here the change you see
  • 00:54:48
    at five is in relation to the changes we
  • 00:54:51
    just talked about with um data
  • 00:54:54
    minimization so this says sh be to
  • 00:54:56
    restrict ability to provide a product or
  • 00:54:58
    service specifically requested by the
  • 00:54:59
    consumer um that's fine but we want to
  • 00:55:02
    make clear that the data minimization
  • 00:55:04
    principle that limits collection of data
  • 00:55:06
    to what is reasonably necessary and
  • 00:55:08
    proportionate to providing that product
  • 00:55:09
    or service is maintained so this call
  • 00:55:11
    out to consistent with subdivision 24/19
  • 00:55:14
    A1 is meant to do that it clarifies yes
  • 00:55:18
    of course you can provide the product or
  • 00:55:19
    service but that doesn't mean you can
  • 00:55:20
    just do whatever you want in terms of
  • 00:55:21
    data collection you've got to comply
  • 00:55:23
    with 2419 a I think even if if you
  • 00:55:26
    didn't include that that should be clear
  • 00:55:30
    intent um but this makes it even clearer
  • 00:55:32
    that that is the
  • 00:55:35
    case
  • 00:55:36
    uh guess I'm running out of time but we
  • 00:55:39
    are almost there we have you until
  • 00:55:42
    night okay great um that's great so we
  • 00:55:47
    have language here this is drawn from
  • 00:55:49
    Colorado um I don't think you have to
  • 00:55:52
    have this but this is nice to have this
  • 00:55:54
    so chapter shall not be construed to
  • 00:55:55
    require controller processor or consumer
  • 00:55:57
    health data controller to implement an
  • 00:56:00
    age verification or age gating system or
  • 00:56:03
    otherwise affirmatively collect the age
  • 00:56:04
    of consumers that first sentence this is
  • 00:56:07
    tied to that knows or consciously avoids
  • 00:56:11
    knowing we are not imposing a
  • 00:56:13
    requirement that businesses investigate
  • 00:56:15
    and determine folks's age um it's meant
  • 00:56:18
    to preserve basically do they have do
  • 00:56:20
    they already have knowledge or do they
  • 00:56:22
    have a reasonable basis already on which
  • 00:56:24
    they should know that someone's uh
  • 00:56:27
    a minor we're not asking them to take
  • 00:56:28
    additional steps for instance Maryland
  • 00:56:31
    is doing knows or should know is a minor
  • 00:56:34
    and that is potentially more dangerous
  • 00:56:36
    because that could be taken to mean that
  • 00:56:39
    businesses should engage in discovering
  • 00:56:41
    whether or not someone is a minor and so
  • 00:56:43
    you may have constitutional concerns
  • 00:56:44
    here this language is nice you are
  • 00:56:46
    limiting um you are protecting yourself
  • 00:56:49
    from liability including language like
  • 00:56:50
    this and then the second sentence goes
  • 00:56:52
    even further a controller processor
  • 00:56:54
    consumer health data controller that
  • 00:56:55
    chooses to conduct commercially
  • 00:56:57
    reasonable age estimation to determine
  • 00:56:59
    which consumers or miners is not liable
  • 00:57:01
    for an erroneous age estimation so if
  • 00:57:03
    they're doing commercially reasonable
  • 00:57:05
    efforts to determine age um they're not
  • 00:57:07
    going to be liable on that basis so this
  • 00:57:09
    is
  • 00:57:11
    again trying to protect businesses
  • 00:57:14
    ability to continue to operate as they
  • 00:57:15
    are and then just calling out that if
  • 00:57:17
    you do know or you have a strong basis
  • 00:57:18
    for knowing um in those cases apply the
  • 00:57:21
    extra
  • 00:57:24
    protections and again we be the first to
  • 00:57:26
    do this this is what Colorado is doing
  • 00:57:28
    as well
  • 00:57:30
    um although I should say I'm not sure
  • 00:57:32
    that the Colorado language is new I'm
  • 00:57:35
    not sure that it's actually uh passed or
  • 00:57:38
    been signed yet but this is consistent
  • 00:57:40
    with the approach that I think that they
  • 00:57:41
    are taking there so changes to the
  • 00:57:44
    enforcement section um what we have here
  • 00:57:48
    is an enforcement section that relies on
  • 00:57:51
    in subsection a the underlying Consumer
  • 00:57:54
    Fraud protection statute so this
  • 00:57:55
    provides for both AG enforcement and the
  • 00:57:58
    underlying private right of action
  • 00:57:59
    already existing in uh pedal 9 which is
  • 00:58:03
    under 2461 subsection
  • 00:58:06
    B uh and this language that you'll see
  • 00:58:10
    is consistent with what the kid kids
  • 00:58:12
    code language does so uh you have that
  • 00:58:14
    piece AG has the same authority to adopt
  • 00:58:16
    rules to implement this section as under
  • 00:58:18
    chapter 63 which is your consumer
  • 00:58:20
    protection um chapter we maintain the
  • 00:58:24
    Cure period 60-day cure period you guys
  • 00:58:26
    have seen this language before
  • 00:58:29
    um same pieces for consideration and a
  • 00:58:32
    requirement of reporting
  • 00:58:34
    on uh
  • 00:58:39
    notices I'll take a look at your email
  • 00:58:41
    and oh yeah you know how to do this for
  • 00:58:45
    um so this should be pretty familiar to
  • 00:58:48
    you guys but just to call out you had an
  • 00:58:50
    insection PR built out this you're going
  • 00:58:54
    to see multiple enforcement sections in
  • 00:58:55
    the Bill and we'll come to those but
  • 00:58:57
    this first one which is what's going to
  • 00:58:58
    be immediately in effect is just relying
  • 00:59:00
    on the underlying existing private right
  • 00:59:03
    of action in Title
  • 00:59:05
    9 last piece of the act confidentially
  • 00:59:07
    of consumer health data this is just a
  • 00:59:10
    cleanup change to subdivision 3 this
  • 00:59:12
    previously said any Healthcare facility
  • 00:59:13
    mental health facility or reproductive
  • 00:59:15
    or sexual health facility because those
  • 00:59:18
    facilities are kinds of healthcare
  • 00:59:19
    facility this is just adding them as
  • 00:59:21
    including any mental health facility so
  • 00:59:23
    it's a way of preserving the call out to
  • 00:59:25
    those particular pieces to say we are
  • 00:59:27
    definitively saying um establishing a
  • 00:59:29
    virtual boundary around mental health
  • 00:59:31
    facilities or reproductive or sexual
  • 00:59:32
    health facilities um is prohibited under
  • 00:59:35
    this section but just cleaning up to say
  • 00:59:38
    that is a kind of healthcare facility
  • 00:59:39
    that's what the including any language
  • 00:59:41
    is
  • 00:59:42
    for for publication and public education
  • 00:59:45
    and Outreach just one tweak to what you
  • 00:59:47
    guys passed out which is to say on page
  • 00:59:50
    58 that the Attorney General may have
  • 00:59:52
    the assistance sorry there's two changes
  • 00:59:55
    when you guys test this out you test the
  • 00:59:58
    attorney general and accd with engaging
  • 01:00:00
    in this effort the understanding is that
  • 01:00:02
    accd doesn't really want to be doing
  • 01:00:04
    this the references to accd um have been
  • 01:00:07
    pulled out and instead it's casting the
  • 01:00:10
    AG with that education Outreach however
  • 01:00:13
    under the subsection e that you see here
  • 01:00:15
    the AG may have the assistance of the
  • 01:00:17
    Vermont law and graduate school in
  • 01:00:18
    developing that education Outreach and
  • 01:00:20
    Assistance programs this was on the
  • 01:00:22
    basis that they I think want to do this
  • 01:00:25
    but I can't so much speak to that
  • 01:00:27
    piece and and again I think the
  • 01:00:30
    testimony throughout has been that the
  • 01:00:32
    AG has the capacity to engage in this
  • 01:00:34
    effort so I don't think that the removal
  • 01:00:36
    of ACD accd is a dramatic impact on
  • 01:00:40
    whether or not this is achievable I
  • 01:00:41
    think it's actually just aligning with
  • 01:00:42
    folks's actual intent like what they
  • 01:00:44
    want to
  • 01:00:49
    do good
  • 01:00:52
    um okay big changes in section three to
  • 01:00:56
    the data broker section this is
  • 01:00:59
    basically to accept essentially all of
  • 01:01:01
    the changes that Economic Development
  • 01:01:03
    made here um this is rolling
  • 01:01:07
    back I'll go through this to show what
  • 01:01:10
    happened
  • 01:01:11
    um
  • 01:01:14
    but the ultimate effect of the language
  • 01:01:16
    that you have here
  • 01:01:18
    is just to require additional civil
  • 01:01:21
    penalties and fees related to
  • 01:01:24
    registration and then to require one new
  • 01:01:27
    burden on data Brokers which is data
  • 01:01:29
    credentialing but does not include the
  • 01:01:32
    opt out language um that had been passed
  • 01:01:34
    out of here so and requires sorry also
  • 01:01:38
    notice a data broker security breach
  • 01:01:39
    which I think has been the kind of big
  • 01:01:41
    request all along from the AG's offices
  • 01:01:43
    to ensure that we capture notice of
  • 01:01:45
    these particular kinds of security
  • 01:01:46
    breaches so there are new substantive
  • 01:01:48
    Provisions if this act if this bill
  • 01:01:51
    passes there are new obligations imposed
  • 01:01:53
    on data Brokers by the section but we
  • 01:01:55
    are not rolling out um the individual
  • 01:01:59
    and general opt out pieces and the
  • 01:02:01
    reason for that
  • 01:02:02
    is one concession to Senate Economic
  • 01:02:05
    Development two folks's complaint um
  • 01:02:08
    that there's some tension between the
  • 01:02:10
    opt out in the data broker section and
  • 01:02:12
    the um language that's in the data
  • 01:02:15
    Privacy Act the ultimate place that that
  • 01:02:18
    landed was making the data broker
  • 01:02:19
    section look an awful lot like the pront
  • 01:02:22
    data privacy act at which point they
  • 01:02:24
    sort of become super
  • 01:02:26
    because if they're subject to the m data
  • 01:02:27
    Privacy Act they're already going to
  • 01:02:29
    have to comply with that so I have
  • 01:02:31
    another provision that does it um and
  • 01:02:33
    additionally from my perspective the
  • 01:02:35
    negotiation that was happening on the
  • 01:02:37
    optout piece was having substantive
  • 01:02:40
    effects on what was happening in the
  • 01:02:41
    Vermont data Privacy Act and I am
  • 01:02:43
    guessing that that was not the intent
  • 01:02:45
    was to allow the data broker negotiation
  • 01:02:47
    to drag down the data privacy act so
  • 01:02:50
    this is a a weighing of priorities as
  • 01:02:53
    well additionally given that you
  • 01:02:56
    prohibit the sell of sensitive selling
  • 01:02:58
    of sensitive data um that's a dramatic
  • 01:03:01
    impact on data Brokers and so I think
  • 01:03:04
    the changes that you made to the
  • 01:03:05
    controller obligations already has a
  • 01:03:07
    pretty dramatic impact
  • 01:03:09
    um for data Brokers you can see beyond
  • 01:03:12
    that data broker security breach uh
  • 01:03:13
    notice what's required
  • 01:03:15
    is these additional penalties for
  • 01:03:18
    failure to file information or emitting
  • 01:03:20
    required information or filing
  • 01:03:22
    materially false information this is uh
  • 01:03:25
    what you guys had accept one more
  • 01:03:27
    concession to Senate Economic
  • 01:03:29
    Development you guys had the penalties
  • 01:03:32
    um kick in after five business days and
  • 01:03:35
    what Senate Economic Development
  • 01:03:36
    proposed was after 30 business days so
  • 01:03:38
    significantly longer period given that
  • 01:03:41
    you are
  • 01:03:42
    including the substantive modifications
  • 01:03:44
    the prohibition on prohibiting selling
  • 01:03:46
    sensitive data in the data Privacy Act
  • 01:03:48
    and given that you have rolled
  • 01:03:50
    back uh
  • 01:03:54
    the there a choice for you guys but I
  • 01:03:57
    think if you're trying to make
  • 01:03:58
    concessions just in an economic
  • 01:04:00
    development to reflect a real compromise
  • 01:04:01
    here while you're still getting things
  • 01:04:03
    that you want I think that this is maybe
  • 01:04:05
    an easy one to do but it is worth saying
  • 01:04:08
    that those penalties wouldn't kick in
  • 01:04:09
    for failure for omission of required
  • 01:04:11
    information or for filing materially
  • 01:04:13
    incorrect information until a whole
  • 01:04:15
    month after that failure but I think
  • 01:04:17
    that I didn't understand anyone to be
  • 01:04:19
    taking objection to this particular
  • 01:04:22
    piece he that
  • 01:04:29
    I'll say I don't love it but I can be
  • 01:04:30
    okay with it is that
  • 01:04:33
    fair I mean the reality is once the
  • 01:04:35
    information is out there it's out there
  • 01:04:37
    and it's really hard to pull it back and
  • 01:04:40
    more damage can happen the longer it's
  • 01:04:42
    out there
  • 01:04:43
    but so to respond to that this is just
  • 01:04:46
    about registration pieces this is not
  • 01:04:48
    about um what data Brokers are actually
  • 01:04:50
    doing with your information this is if a
  • 01:04:52
    data broker emits required information
  • 01:04:54
    from their registration form or if they
  • 01:04:56
    file misleading information in the
  • 01:04:58
    registration form when do penalties for
  • 01:05:00
    those kinds of registration failures
  • 01:05:02
    kick in it's not about it's not related
  • 01:05:04
    to Consumers um except to the extent the
  • 01:05:07
    consumer is denied the information they
  • 01:05:08
    need by the registry essentially so this
  • 01:05:12
    this I don't think implicates those
  • 01:05:14
    concerns great thank you I appreciate
  • 01:05:17
    that
  • 01:05:20
    clarification so what what remains of
  • 01:05:24
    the
  • 01:05:27
    section we still have this credentialing
  • 01:05:29
    piece and what this is and I don't think
  • 01:05:31
    we ever really talked in substance about
  • 01:05:33
    this um so it was only recently that I
  • 01:05:36
    kind of realized the value ad of this
  • 01:05:37
    but maybe it's been apparent to you guys
  • 01:05:39
    all along um we focused so much on the
  • 01:05:41
    opt out we didn't talk much about this
  • 01:05:43
    particular
  • 01:05:44
    subsection this imposes on data Brokers
  • 01:05:46
    a requirement that they maintain
  • 01:05:47
    reasonable procedures to ensure that BPI
  • 01:05:50
    is used for legitimate purposes um
  • 01:05:53
    including requiring prospective users to
  • 01:05:55
    identify themselves certify the purposes
  • 01:05:57
    for which that information is sought and
  • 01:05:59
    certify that it won't be used for other
  • 01:06:01
    purposes that the data broker make
  • 01:06:03
    reasonable efforts to verify the
  • 01:06:04
    identity of new users and the uses
  • 01:06:07
    certified by those users prior to
  • 01:06:09
    Furnishing the information so this is
  • 01:06:11
    imposing obligations in advance of
  • 01:06:12
    turning over that information um and
  • 01:06:14
    requiring that data Brokers not furnish
  • 01:06:16
    the BPI if they have reasonable grounds
  • 01:06:18
    for believing that it will be not used
  • 01:06:20
    for a legitimate and legal purpose so
  • 01:06:22
    you can imagine if they have all kinds
  • 01:06:24
    of indications that
  • 01:06:26
    and it's like through the I don't know
  • 01:06:28
    exactly what the mechanism would be but
  • 01:06:29
    if they have strong indications that
  • 01:06:31
    someone is engaging in criminal Behavior
  • 01:06:34
    the like this would say you can't you're
  • 01:06:35
    prohibited from turning over that
  • 01:06:37
    information um so these are substance of
  • 01:06:39
    additions um but we don't have the opt
  • 01:06:42
    out pieces and previously there was an
  • 01:06:45
    exemption section in this section
  • 01:06:47
    2448 given that you have pulled back the
  • 01:06:51
    popped out we have eliminated the
  • 01:06:54
    exemptions I the exemptions to be a
  • 01:06:56
    request for exemption from the opt out
  • 01:06:59
    provisions and so in the absence of
  • 01:07:00
    those opt out Provisions I don't think
  • 01:07:02
    you need them anymore
  • 01:07:06
    um section four this is a data broker
  • 01:07:09
    study and this is tied to the removal of
  • 01:07:11
    that uh those opt out
  • 01:07:14
    pieces uh what this says is that the
  • 01:07:16
    Secretary of State on before January 1st
  • 01:07:19
    of next year shall in collaboration with
  • 01:07:22
    the with ads and the AG review and
  • 01:07:24
    report findings and recommendations to
  • 01:07:26
    Committees of jurisdiction um concerning
  • 01:07:28
    mechanisms for for my consumers to opt
  • 01:07:30
    out of the collection retention and sale
  • 01:07:32
    of broker personal information basically
  • 01:07:34
    this is a study to look at the previous
  • 01:07:36
    language that was in the section that
  • 01:07:37
    has now been pulled out um because some
  • 01:07:39
    of the testimony that's been purchased
  • 01:07:40
    at the secretary of state would not have
  • 01:07:42
    capacity to implement the general opt
  • 01:07:43
    out and if that's the case the opt out
  • 01:07:47
    section doesn't get you very far an
  • 01:07:48
    individual opt out is unlikely to be
  • 01:07:50
    particularly effective with data Brokers
  • 01:07:52
    because there is no direct relationship
  • 01:07:54
    between the consumer and the data broker
  • 01:07:56
    you really need the general opt out is
  • 01:07:58
    my understanding to achieve anything
  • 01:08:00
    with data Brokers and so this is a way
  • 01:08:02
    of gathering data and coming back with a
  • 01:08:04
    plan with the Secretary of State who
  • 01:08:06
    will be the one in position to say
  • 01:08:09
    whether or not essentially this is
  • 01:08:10
    achievable and what it would take to do
  • 01:08:11
    that so that's what the study is meant
  • 01:08:12
    to do they'll have to include um they'll
  • 01:08:16
    have to look to that individual opt out
  • 01:08:18
    um they have to consider rules
  • 01:08:20
    procedures and framework for
  • 01:08:21
    implementing the this is essentially the
  • 01:08:23
    general opt out the accessible deletion
  • 01:08:25
    mechanism that California is
  • 01:08:27
    offering um how to design and Implement
  • 01:08:29
    that state facilitated General optout
  • 01:08:31
    operational cost mitigation of security
  • 01:08:33
    risks which we understand is a large
  • 01:08:35
    portion of the cost that would be
  • 01:08:37
    incurred and other relevant
  • 01:08:40
    considerations uh section five so now
  • 01:08:43
    we're jumping into what you're going to
  • 01:08:45
    see is duplicative sections of pieces
  • 01:08:46
    before and these are sunsets of previous
  • 01:08:49
    Provisions so I'll walk through those
  • 01:08:51
    section five is a part of your tiered
  • 01:08:53
    roll out of the applicability threat
  • 01:08:55
    thresholds so um the first threshold is
  • 01:08:59
    going to come into effect when the ACT
  • 01:09:00
    comes into effect in 2025 so J uh July
  • 01:09:03
    1st 2025 this Section 5 would not go
  • 01:09:06
    into effect until a year later in 2026
  • 01:09:08
    and this is lowering the thresholds from
  • 01:09:11
    25k to
  • 01:09:12
    12.5k and then for the gross revenue
  • 01:09:15
    piece if a business has controlled to
  • 01:09:17
    process personal data of not fewer than
  • 01:09:18
    6250 consumers 6250 consumers and derive
  • 01:09:22
    more than 20% of first Revenue so that's
  • 01:09:24
    for your 2026 a middle step in your
  • 01:09:27
    applicability threshold so a step down
  • 01:09:30
    um where and where is the the the date
  • 01:09:32
    where are the dates they'll come at the
  • 01:09:34
    very end okay thanks good um the next
  • 01:09:37
    section you see section six this is
  • 01:09:39
    stepping down again and this is for
  • 01:09:42
    2027 um so you're going from those new
  • 01:09:44
    thresholds that we just walked through
  • 01:09:46
    to half of those um 6,250 consumers and
  • 01:09:50
    for your gross revenue piece
  • 01:09:52
    3,125 this is basically ending up in
  • 01:09:55
    2027 with the thresholds that you guys
  • 01:09:58
    had proposed starting with and just to
  • 01:10:01
    call out again the thresholds that you
  • 01:10:03
    proposed starting with in July 1 2025
  • 01:10:05
    that 25k threshold is what Senate
  • 01:10:08
    Economic Development has so you can see
  • 01:10:10
    this as in a way stepping starting with
  • 01:10:13
    what Senate Economic Development has
  • 01:10:14
    proposed for thresholds with some
  • 01:10:16
    modifications and then stepping down
  • 01:10:18
    over the course of two years to um the
  • 01:10:21
    thresholds that you guys had proposed on
  • 01:10:22
    this side
  • 01:10:26
    section seven this is another sunsetting
  • 01:10:28
    provision for the enforcement pieces so
  • 01:10:31
    the roll out first in July 1 2025 is for
  • 01:10:35
    Reliance on the Consumer Fraud statutes
  • 01:10:37
    meaning both AG enforcement and the
  • 01:10:39
    underlying private right of action and
  • 01:10:41
    then uh what this does is it removes the
  • 01:10:44
    Cure period um so when we start we're
  • 01:10:48
    going to have a cure period permissible
  • 01:10:50
    for AG
  • 01:10:51
    action that's what you see in subsection
  • 01:10:53
    C and we're going to have reporting from
  • 01:10:55
    the AG on that curing after 18 months so
  • 01:10:59
    this would come into effect January 1 of
  • 01:11:03
    uh
  • 01:11:06
    2027
  • 01:11:10
    um yes I need to check that I think I've
  • 01:11:14
    done this yep I'll need to check this
  • 01:11:16
    piece uh this will be after 18 months
  • 01:11:20
    this will be
  • 01:11:22
    removed and then in 20
  • 01:11:26
    20
  • 01:11:29
    see on July 1
  • 01:11:32
    2026 the private right of action in
  • 01:11:35
    statute uh so not Reliance on the
  • 01:11:37
    underlying statute but
  • 01:11:40
    and a specific developed private right
  • 01:11:43
    of action would be made available in
  • 01:11:45
    July 1 2026 let me walk through what
  • 01:11:47
    this does this is you already have the
  • 01:11:50
    underlying private R of action in the
  • 01:11:52
    Consumer Fraud statutes this is and and
  • 01:11:54
    what's important to call out about that
  • 01:11:56
    is the underlying right doesn't
  • 01:11:58
    contemplate statutory damages it
  • 01:12:00
    contemplates actual damages meaning the
  • 01:12:02
    folks need to prove their damages under
  • 01:12:04
    the underlying right if you have
  • 01:12:06
    statutory damages meaning that someone
  • 01:12:07
    can seek something like the greater of a
  • 01:12:09
    thousand or actual damages it means that
  • 01:12:11
    a consumer has more incentive to go to
  • 01:12:12
    court to enforce their rights so what
  • 01:12:14
    this private right of action coming into
  • 01:12:16
    effect in July 1 2026 would do is
  • 01:12:20
    to make statutory damages available so
  • 01:12:23
    folks could know that they're going to
  • 01:12:24
    get the Thousand if they win their case
  • 01:12:27
    um that or the or the actual damages but
  • 01:12:30
    to call out what you see here in C the P
  • 01:12:33
    would only be available for specific
  • 01:12:34
    kinds of violations and this is
  • 01:12:37
    reflecting the approach that Senate
  • 01:12:38
    Health and Welfare is taking which is a
  • 01:12:40
    consumer who is harmed by violations of
  • 01:12:42
    subdivisions 2419 B2 2419 B3 or section
  • 01:12:46
    2428 may bring in action for that
  • 01:12:48
    alleged violation so 2419 B2 is
  • 01:12:51
    processing sensitive data without
  • 01:12:53
    consent so if there's a violation of app
  • 01:12:55
    which is a big bucket that includes
  • 01:12:56
    things like Health Data biometric data
  • 01:12:58
    and the like or if there's a violation
  • 01:13:00
    of 2419 B3 which is uh selling sensitive
  • 01:13:03
    data or section 2428 which is your
  • 01:13:07
    consumer health data specific section
  • 01:13:08
    which is things like the prohibition on
  • 01:13:10
    geofencing violations for any of those
  • 01:13:12
    sections would trigger this private
  • 01:13:14
    right of would make this private right
  • 01:13:15
    of action available with statutory
  • 01:13:17
    damages um and that would be available
  • 01:13:21
    if the consumer notifies the consumer
  • 01:13:23
    the the business of that violation and
  • 01:13:26
    then within 60 days following receive of
  • 01:13:27
    the notice the business fails to cure
  • 01:13:29
    the violation or we're talking about a
  • 01:13:31
    situation where no cure is possible like
  • 01:13:33
    prohibitions on geofencing you may not
  • 01:13:35
    be able to cure that um and here's this
  • 01:13:38
    is the same language that you guys had
  • 01:13:39
    in the language that you passed out so
  • 01:13:40
    this is the statutory damages that I was
  • 01:13:42
    talking about the greater of a thousand
  • 01:13:43
    or actual damages and then a requirement
  • 01:13:46
    for a report on disclosure of those
  • 01:13:50
    pieces uh finally section nine is
  • 01:13:53
    rolling back this private right of
  • 01:13:54
    action after 3 years so this would
  • 01:13:56
    eliminate it after data collection could
  • 01:13:58
    happen and we could see what the effects
  • 01:13:59
    of it are so in
  • 01:14:01
    2029 that statutory damages private R
  • 01:14:05
    action would go away um I'm going to try
  • 01:14:07
    to just wrap up because I know Rick
  • 01:14:08
    needs to hop in the seat uh this is your
  • 01:14:10
    effective date section I will go through
  • 01:14:12
    this again when I go back to my office
  • 01:14:14
    because I think the Cure period phase
  • 01:14:16
    out may need one more year but I will
  • 01:14:19
    check that and uh if you have anything
  • 01:14:21
    please email me or I'm happy to answer
  • 01:14:23
    it now but do want to let Rick hop in
  • 01:14:25
    the chair if I can
  • 01:14:27
    okay thanks so much just fling uh
  • 01:14:31
    sometimes when we do these uh kind of um
  • 01:14:34
    you know like we're establishing the
  • 01:14:35
    private right of action and then we're
  • 01:14:37
    getting rid of it you know with
  • 01:14:39
    different effective bids we have like a
  • 01:14:41
    report back yes are we did I miss that
  • 01:14:45
    we're doing a report for the for the pr
  • 01:14:47
    here we're doing annually owner report
  • 01:14:49
    to submit a report disclosing number of
  • 01:14:51
    actions number of violations broken down
  • 01:14:53
    by statutory basis proportion proceeding
  • 01:14:55
    to trial most frequent violators um any
  • 01:14:58
    other matters STS relevant
  • 01:15:00
    yep what I'm sorry what's the date on
  • 01:15:02
    the report that would be an so once that
  • 01:15:04
    comes into effect which it comes into
  • 01:15:06
    effect July 1 2026 it's annually on oner
  • 01:15:08
    before February 1st so the first report
  • 01:15:10
    you would get is February 1st 2027 and
  • 01:15:13
    you would receive that until this is
  • 01:15:14
    phased out in
  • 01:15:18
    2029
  • 01:15:20
    perect thank you so much joh really
  • 01:15:22
    appreciate all your work on this
  • 01:15:27
    terrific I will uh drop the 4 C piece
  • 01:15:30
    that was intention and I will confirm
  • 01:15:32
    the Cure fiod phe out okay I can be back
  • 01:15:35
    with that later
  • 01:15:36
    today right thank you see you guys
  • 01:15:40
    appreciate okay so um
  • 01:15:44
    does I kind of feel like we should keep
  • 01:15:46
    plotting along if anyone needs to take a
  • 01:15:47
    break go ahead and um would I take a
  • 01:15:50
    five minute break yeah May let's take a
  • 01:15:52
    five minute break then
Etiquetas
  • confidentialité des données
  • données biométriques
  • mineurs
  • vente de données
  • ciblage publicitaire
  • courtiers en données
  • droit privé d'action
  • législation
  • consentement
  • protection des consommateurs