U.S. State Law

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On August 31, 2018, the California State Legislature passed SB-1121, a bill that delays enforcement of the California Consumer Privacy Act of 2018 (“CCPA”) and makes other modest amendments to the law. The bill now goes to the Governor for signing. The provisions of the CCPA will become operative on January 1, 2020. As we have previously reported, the CCPA introduces key privacy requirements for businesses. The Act was passed quickly by California lawmakers in an effort to remove a ballot initiative of the same name from the November 6, 2018, statewide ballot. The CCPA’s hasty passage resulted in a number of drafting errors and inconsistencies in the law, which SB-1121 seeks to remedy. The amendments to the CCPA are primarily technical, with few substantive changes. Continue Reading CCPA Amended: Enforcement Delayed, Few Substantive Changes Made

On August 22, 2018, California Attorney General Xavier Becerra raised significant concerns regarding the recently enacted California Consumer Privacy Act of 2018 (“CCPA”) in a letter addressed to the CCPA’s sponsors, Assemblyman Ed Chau and Senator Robert Hertzberg. Writing to “reemphasize what [he] expressed previously to [them] and [state] legislative leaders and Governor Brown,” Attorney General Becerra highlighted what he described as five primary flaws that, if unresolved, will undermine the intention behind and effective enforcement of the CCPA. Continue Reading California AG Voices Concern About State’s New Privacy Law

As reported in BNA Privacy Law Watch, a California legislative proposal would allocate additional resources to the California Attorney General’s office to facilitate the development of regulations required under the recently enacted California Consumer Privacy Act of 2018 (“CCPA”). CCPA was enacted in June 2018 and takes effect January 1, 2020. CCPA requires the California Attorney General to issue certain regulations prior to the effective date, including, among others, (1) to update the categories of data that constitute “personal information” under CCPA, and (2) certain additional regulations governing compliance (such as how a business may verify a consumer’s request made pursuant to CCPA). The proposal, which was presented in two budget bills, would allocate $700,000 and five staff positions to the California Attorney General’s office to aid in the development of the required regulations. The legislature is expected to pass the relevant funding measure by August 31, 2018. California Attorney General Xavier Becerra has stated that he expects his office will issue its final rules under CCPA in June 2019.

On August 3, 2018, Ohio Governor John Kasich signed into law Senate Bill 220 (the “Bill”), which provides covered entities with an affirmative defense to tort claims, based on Ohio law or brought in an Ohio court, that allege or relate to the failure to implement reasonable information security controls which resulted in a data breach. According to the Bill, its purpose is “to be an incentive and to encourage businesses to achieve a higher level of cybersecurity through voluntary action.” The Bill will take effect 90 days after it is provided to the Ohio Secretary of State.

As reported in BNA Privacy Law Watch, on June 27, 2018, Equifax entered into a consent order (the “Order”) with 8 state banking regulators (the “Multi-State Regulatory Agencies”), including those in New York and California, arising from the company’s 2017 data breach that exposed the personal information of 143 million consumers. Continue Reading Equifax Enters Into Consent Order with State Banking Regulators Regarding 2017 Data Breach

On June 28, 2018, the Governor of California signed AB 375, the California Consumer Privacy Act of 2018 (the “Act”). The Act introduces key privacy requirements for businesses, and was passed quickly by California lawmakers in an effort to remove a ballot initiative of the same name from the November 6, 2018, statewide ballot. We previously reported on the relevant ballot initiative. The Act will take effect January 1, 2020. Continue Reading California Consumer Privacy Act Signed, Introduces Key Privacy Requirements for Businesses

On June 21, 2018, California lawmakers introduced AB 375, the California Consumer Privacy Act of 2018 (the “Bill”). If enacted and signed by the Governor by June 28, 2018, the Bill would introduce key privacy requirements for businesses, but would also result in the removal of a ballot initiative of the same name from the November 6, 2018, statewide ballot. We previously reported on the relevant ballot initiative. Continue Reading California Assembly Bill Aims to Avert State Ballot Initiative Related to Privacy

On July 1, 2018, HB 183, which amends Virginia’s breach notification law, will come into effect (the “amended law”). The amended law will require income tax return preparers who prepare individual Virginia income tax returns to notify the state’s Department of Taxation (the “Department”) if they discover or are notified of a breach of “return information.” Under the amended law, “return information” is defined as “a taxpayer’s identity and the nature, source, or amount of his income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability, tax withheld, assessments, or tax payments.” Continue Reading Virginia Amends Breach Notification Law Applicable to Income Tax Information

Recently, Iowa and Nebraska enacted information security laws applicable to personal information. Iowa’s law applies to operators of online services directed at and used by students in kindergarten through grade 12, whereas Nebraska’s law applies to all commercial entities doing business in Nebraska who own or license Nebraska residents’ personal information. Continue Reading Iowa and Nebraska Enact Information Security Laws

On November 6, 2018, California voters will consider a ballot initiative called the California Consumer Privacy Act (“the Act”). The Act is designed to give California residents (i.e., “consumers”) the right to request from businesses (see “Applicability” below) the categories of personal information the business has sold or disclosed to third parties, with some exceptions. The Act would also require businesses to disclose in their privacy notices consumers’ rights under the Act, as well as how consumers may opt out of the sale of their personal information if the business sells consumer personal information. Continue Reading California Ballot Initiative to Establish Disclosure and Opt-Out Requirements for Consumers’ Personal Information