1 | 1 | | SB213INTRODUCED |
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2 | 2 | | Page 0 |
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3 | 3 | | SB213 |
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4 | 4 | | RRIDNMM-1 |
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5 | 5 | | By Senators Orr, Allen |
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6 | 6 | | RFD: Fiscal Responsibility and Economic Development |
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7 | 7 | | First Read: 06-Mar-24 |
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12 | 12 | | 5 RRIDNMM-1 03/06/2024 ZAK (L)cr 2024-402 |
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13 | 13 | | Page 1 |
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14 | 14 | | First Read: 06-Mar-24 |
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15 | 15 | | SYNOPSIS: |
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16 | 16 | | Existing law provides for the confidentiality of |
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17 | 17 | | certain personal information in certain contexts. |
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18 | 18 | | This bill would provide that brokers of |
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19 | 19 | | individual consumers' data must notify consumers of |
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20 | 20 | | certain information on their website. |
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21 | 21 | | This bill would provide that data brokers must |
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22 | 22 | | register with the Secretary of State. |
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23 | 23 | | This bill would provide that data brokers must |
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24 | 24 | | protect consumers' data through specified security |
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25 | 25 | | measures. |
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26 | 26 | | This bill would require the Secretary of State |
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27 | 27 | | to adopt rules and procedures to implement and |
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28 | 28 | | administer the requirements of this bill. |
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29 | 29 | | This bill would provide civil penalties for data |
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30 | 30 | | brokers that violate these notification or registration |
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31 | 31 | | requirements. |
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32 | 32 | | This bill would provide that violations of the |
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33 | 33 | | duty to protect consumers' data through specified |
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34 | 34 | | security measures by data brokers constitute violations |
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35 | 35 | | of the Deceptive Trade Practices Act. |
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36 | 36 | | This bill would provide certain persons and |
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37 | 37 | | information to which the requirements of this bill do |
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38 | 38 | | not apply. |
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39 | 39 | | Section 111.05 of the Constitution of Alabama of |
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67 | 67 | | 28 SB213 INTRODUCED |
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68 | 68 | | Page 2 |
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69 | 69 | | Section 111.05 of the Constitution of Alabama of |
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70 | 70 | | 2022, prohibits a general law whose purpose or effect |
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71 | 71 | | would be to require a new or increased expenditure of |
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72 | 72 | | local funds from becoming effective with regard to a |
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73 | 73 | | local governmental entity without enactment by a 2/3 |
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74 | 74 | | vote unless: it comes within one of a number of |
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75 | 75 | | specified exceptions; it is approved by the affected |
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76 | 76 | | entity; or the Legislature appropriates funds, or |
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77 | 77 | | provides a local source of revenue, to the entity for |
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78 | 78 | | the purpose. |
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79 | 79 | | The purpose or effect of this bill would be to |
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80 | 80 | | require a new or increased expenditure of local funds |
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81 | 81 | | within the meaning of the section. However, the bill |
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82 | 82 | | does not require approval of a local governmental |
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83 | 83 | | entity or enactment by a 2/3 vote to become effective |
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84 | 84 | | because it comes within one of the specified exceptions |
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85 | 85 | | contained in the section. |
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86 | 86 | | A BILL |
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87 | 87 | | TO BE ENTITLED |
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88 | 88 | | AN ACT |
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89 | 89 | | Relating to data privacy; to require consumer data |
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90 | 90 | | brokers to publicly state certain information; to require data |
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91 | 91 | | brokers to register with the Secretary of State; to require |
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92 | 92 | | that data brokers protect data using specified security |
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93 | 93 | | measures; to provide civil and criminal penalties for |
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94 | 94 | | violations; to provide persons and information to which these |
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124 | 124 | | violations; to provide persons and information to which these |
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125 | 125 | | requirements do not apply; and in connection therewith would |
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126 | 126 | | have as its purpose or effect the requirement of a new or |
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127 | 127 | | increased expenditure of local funds within the meaning of |
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128 | 128 | | Section 111.05 of the Constitution of Alabama of 2022. |
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129 | 129 | | BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: |
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130 | 130 | | Section 1. For the purposes of this act, the following |
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131 | 131 | | terms have the following meanings: |
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132 | 132 | | (1) BIOMETRIC DATA. Data generated by automatic |
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133 | 133 | | measurements of an individual's biological patterns or |
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134 | 134 | | characteristics, including fingerprint, voiceprint, retina or |
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135 | 135 | | iris scan, information pertaining to an individual's DNA, or |
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136 | 136 | | another unique biological pattern or characteristic that is |
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137 | 137 | | used to identify a specific individual. |
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138 | 138 | | (2) CHILD. An individual younger than 13 years of age. |
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139 | 139 | | (3) COLLECT. In the context of data, means to obtain, |
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140 | 140 | | receive, access, or otherwise acquire data by any means, |
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141 | 141 | | including by purchasing or renting the data. |
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142 | 142 | | (4) DATA BROKER. A business entity whose principal |
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143 | 143 | | source of revenue is derived from the collecting, |
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144 | 144 | | processing, or transferring of personal data that the entity |
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145 | 145 | | did not collect directly from the individual linked or |
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146 | 146 | | linkable to the data. |
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147 | 147 | | (5) DE-IDENTIFIED DATA. Data that cannot reasonably be |
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148 | 148 | | linked to an identified or identifiable individual or to a |
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149 | 149 | | device linked to that individual. |
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150 | 150 | | (6) EMPLOYEE. An individual who is a director, officer, |
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151 | 151 | | staff member, trainee, volunteer, or intern of an employer or |
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152 | 152 | | an individual working as an independent contractor for an |
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182 | 182 | | an individual working as an independent contractor for an |
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183 | 183 | | employer, regardless of whether the individual is paid, |
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184 | 184 | | unpaid, or employed on a temporary basis. The term does not |
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185 | 185 | | include an individual contractor who is a service provider. |
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186 | 186 | | (7) EMPLOYEE DATA. Information collected, processed, or |
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187 | 187 | | transferred by an employer if the information satisfies both |
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188 | 188 | | of the following: |
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189 | 189 | | a. Is related to any of the following: |
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190 | 190 | | 1. A job applicant and was collected during the course |
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191 | 191 | | of the hiring and application process. |
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192 | 192 | | 2. An employee who is acting in a professional capacity |
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193 | 193 | | for the employer, including the employee's business contact |
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194 | 194 | | information such as the employee's name, position, title, |
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195 | 195 | | business telephone number, business address, or business |
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196 | 196 | | e-mail address. |
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197 | 197 | | 3. An employee's emergency contact information. |
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198 | 198 | | 4. An employee or the employee's spouse, dependent, |
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199 | 199 | | covered family member, or beneficiary. |
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200 | 200 | | b. Was collected, processed, or transferred solely for |
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201 | 201 | | any of the following: |
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202 | 202 | | 1. A purpose relating to the status of an individual |
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203 | 203 | | described by subparagraph a.1. as a current or former job |
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204 | 204 | | applicant of the employer. |
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205 | 205 | | 2. A purpose relating to the professional |
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206 | 206 | | activities of an employee described by subparagraph a.2. on |
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207 | 207 | | behalf of the employer. |
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208 | 208 | | 3. The purpose of having an emergency contact on file |
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209 | 209 | | for an employee described by subparagraph a.3. and for |
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210 | 210 | | transferring the information in case of an emergency. |
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240 | 240 | | transferring the information in case of an emergency. |
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241 | 241 | | 4. The purpose of administering benefits |
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242 | 242 | | to which an employee described by subparagraph a.4. is |
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243 | 243 | | entitled or to which another individual described by that |
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244 | 244 | | paragraph is entitled on the basis of the employee's position |
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245 | 245 | | with the employer. |
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246 | 246 | | (8) GENETIC DATA. Any data, regardless of |
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247 | 247 | | format, concerning an individual's genetic characteristics. |
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248 | 248 | | The term includes raw sequence data derived from sequencing |
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249 | 249 | | all or a portion of an individual's extracted DNA and |
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250 | 250 | | genotypic and phenotypic information obtained from analyzing |
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251 | 251 | | an individual's raw sequence data. |
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252 | 252 | | (9) KNOWN CHILD. A child under circumstances where a |
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253 | 253 | | data broker has actual knowledge of, or willfully disregards |
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254 | 254 | | obtaining actual knowledge of, the child's age. |
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255 | 255 | | (10) PERSONAL DATA. Any information, including |
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256 | 256 | | sensitive data, that is linked or reasonably linkable to a |
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257 | 257 | | identified or identifiable individual. The term includes |
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258 | 258 | | pseudonymous data when the information is used by a controller |
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259 | 259 | | or processor in conjunction with additional information that |
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260 | 260 | | reasonably links the information to an identified or |
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261 | 261 | | identifiable individual. The term does not include |
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262 | 262 | | de-identified data, employee data, or publicly available |
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263 | 263 | | information. |
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264 | 264 | | (11) PRECISE GEOLOCATION DATA. Information |
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265 | 265 | | accessed on a device or technology that shows the past or |
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266 | 266 | | present physical location of an individual or the individual's |
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267 | 267 | | device with sufficient precision to identify street-level |
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268 | 268 | | location information of the individual or device in a range of |
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298 | 298 | | location information of the individual or device in a range of |
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299 | 299 | | not more than 1,850 feet. The term does not include location |
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300 | 300 | | information regarding an individual or device identifiable or |
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301 | 301 | | derived solely from the visual content of a legally obtained |
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302 | 302 | | image, including the location of a device that captured the |
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303 | 303 | | image. |
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304 | 304 | | (12) PROCESS. In the context of data, an |
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305 | 305 | | operation or set of operations performed, whether by manual or |
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306 | 306 | | automated means, on personal data or on sets of personal data, |
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307 | 307 | | such as the collection, use, storage, disclosure, analysis, |
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308 | 308 | | deletion, or modification of personal data. |
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309 | 309 | | (13) PUBLICLY AVAILABLE INFORMATION. Information to |
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310 | 310 | | which any of the following apply: |
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311 | 311 | | a. Is lawfully made available through governmental |
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312 | 312 | | records. |
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313 | 313 | | b. A business has a reasonable basis to believe |
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314 | 314 | | is lawfully available to the general public through widely |
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315 | 315 | | distributed media. |
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316 | 316 | | c. Is lawfully made available by a consumer, or |
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317 | 317 | | by an individual to whom a consumer has disclosed the |
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318 | 318 | | information, unless the consumer has restricted access to the |
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319 | 319 | | information to a specific audience. |
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320 | 320 | | (14) SENSITIVE DATA. |
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321 | 321 | | a. A government-issued identifier not required by law |
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322 | 322 | | to be publicly available, including any of the following: |
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323 | 323 | | 1. A Social Security number. |
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324 | 324 | | 2. A passport number. |
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325 | 325 | | 3. A driver license number. |
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326 | 326 | | b. Information that describes or reveals an |
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356 | 356 | | b. Information that describes or reveals an |
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357 | 357 | | individual's mental or physical health diagnosis, condition, |
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358 | 358 | | or treatment. |
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359 | 359 | | c. An individual's financial information, except the |
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360 | 360 | | last four digits of a debit or credit card number, including |
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361 | 361 | | any of the following: |
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362 | 362 | | 1. A financial account number. |
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363 | 363 | | 2. A credit or debit card number. |
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364 | 364 | | 3. Information that describes or reveals the income |
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365 | 365 | | level or bank account balances of the individual. |
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366 | 366 | | d. Biometric data. |
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367 | 367 | | e. Genetic data. |
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368 | 368 | | f. Precise geolocation data. |
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369 | 369 | | g. An individual's private communication, and that if |
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370 | 370 | | made using a device, is not made using a device provided by |
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371 | 371 | | the individual's employer that provides conspicuous notice to |
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372 | 372 | | the individual that the employer may access communication made |
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373 | 373 | | using the device. These communications include, unless the |
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374 | 374 | | data broker is the sender or an intended recipient of the |
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375 | 375 | | communication, all of the following: |
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376 | 376 | | 1. The individual's voicemails, e-mails, texts, direct |
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377 | 377 | | messages, or mail. |
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378 | 378 | | 2. Information that identifies the parties involved in |
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379 | 379 | | the communications. |
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380 | 380 | | 3. Information that relates to the transmission of the |
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381 | 381 | | communications, including telephone numbers called, telephone |
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382 | 382 | | numbers from which calls were placed, the time calls were |
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383 | 383 | | made, call duration, and location information of the parties |
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384 | 384 | | to the call. |
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414 | 414 | | to the call. |
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415 | 415 | | h. A log-in credential, security code, or access code |
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416 | 416 | | for an account or device. |
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417 | 417 | | i. Information identifying the sexual behavior of the |
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418 | 418 | | individual in a manner inconsistent with the individual's |
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419 | 419 | | reasonable expectation regarding the collection, processing, |
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420 | 420 | | or transfer of the information. |
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421 | 421 | | j. Calendar information, address book information, |
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422 | 422 | | phone or text logs, photos, audio recordings, or videos that |
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423 | 423 | | are both: |
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424 | 424 | | 1. Maintained for private use by an individual and |
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425 | 425 | | stored on the individual's device or in another location. |
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426 | 426 | | 2. Not communicated using a device provided by the |
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427 | 427 | | individual's employer unless the employee was provided |
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428 | 428 | | conspicuous notice that the employer may access communication |
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429 | 429 | | made using the device. |
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430 | 430 | | k. A photograph, film, video recording, or other |
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431 | 431 | | similar medium that shows the individual or a part of the |
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432 | 432 | | individual nude or wearing undergarments. |
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433 | 433 | | l. Information revealing the video content requested or |
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434 | 434 | | selected by an individual that is neither of the following: |
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435 | 435 | | 1. Collected by a provider of broadcast television |
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436 | 436 | | service, cable service, satellite service, streaming media |
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437 | 437 | | service, or other video programming, as that term is defined |
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438 | 438 | | by 47 U.S.C. § 613. |
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439 | 439 | | 2. Used solely for transfers for independent video |
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440 | 440 | | measurement. |
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441 | 441 | | m. Information regarding a known child. |
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442 | 442 | | n. Information revealing an individual's racial or |
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472 | 472 | | n. Information revealing an individual's racial or |
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473 | 473 | | ethnic origin, color, religious beliefs, or union membership. |
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474 | 474 | | o. Information identifying an individual's online |
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475 | 475 | | activities over time accessing multiple Internet websites or |
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476 | 476 | | online services. |
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477 | 477 | | p. Information collected, processed, or |
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478 | 478 | | transferred for the purpose of identifying information |
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479 | 479 | | described by this subdivision. |
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480 | 480 | | (15) SERVICE PROVIDER. A person that receives, |
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481 | 481 | | collects, processes, or transfers personal data on behalf of, |
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482 | 482 | | and at the direction of, a business or governmental entity, |
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483 | 483 | | including a business or governmental entity that is another |
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484 | 484 | | service provider, in order for the person to perform a service |
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485 | 485 | | or function with or on behalf of the business or governmental |
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486 | 486 | | entity. |
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487 | 487 | | (16) TRANSFER. In the context of data, to disclose, |
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488 | 488 | | release, share, disseminate, make available, sell, or license |
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489 | 489 | | the data by any means or medium. |
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490 | 490 | | Section 2. (a) Except as provided by subsection (b), |
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491 | 491 | | this act applies to personal data from an individual that is |
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492 | 492 | | collected, transferred, or processed by a data broker. |
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493 | 493 | | (b) This chapter does not apply to any of the following |
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494 | 494 | | data: |
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495 | 495 | | (1) De-identified data, if the data broker does all of |
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496 | 496 | | the following: |
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497 | 497 | | a. Takes reasonable technical measures to ensure that |
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498 | 498 | | the data is not able to be used to identify an individual with |
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499 | 499 | | whom the data is associated. |
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500 | 500 | | b. Publicly commits to both of the following in a clear |
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530 | 530 | | b. Publicly commits to both of the following in a clear |
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531 | 531 | | and conspicuous manner: |
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532 | 532 | | 1. To process and transfer the data solely in a |
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533 | 533 | | de-identified form without any reasonable means for |
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534 | 534 | | reidentification. |
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535 | 535 | | 2. To not attempt to identify the information to an |
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536 | 536 | | individual with whom the data is associated. |
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537 | 537 | | c. Contractually obligates a person that receives the |
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538 | 538 | | information from the provider to both of the following: |
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539 | 539 | | 1. Comply with this subsection with respect to the |
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540 | 540 | | information. |
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541 | 541 | | 2. Include those contractual obligations in any |
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542 | 542 | | subsequent transfer of the data to another person. |
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543 | 543 | | (2) Employee data. |
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544 | 544 | | (3) Publicly available information. |
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545 | 545 | | (4) Inferences made exclusively from multiple |
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546 | 546 | | independent sources of publicly available information that |
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547 | 547 | | does not reveal sensitive data with respect to an individual. |
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548 | 548 | | (5) Data subject to Title V of the Gramm-Leach-Bliley |
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549 | 549 | | Act, 15 U.S.C. § 6801, et seq. |
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550 | 550 | | Section 3. (a) Except as provided by subsection (b), |
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551 | 551 | | this act applies only to a data broker that derives either of |
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552 | 552 | | the following within a 12-month period: |
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553 | 553 | | (1) More than 50 percent of the data broker's revenue |
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554 | 554 | | from processing or transferring personal data that the data |
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555 | 555 | | broker did not collect directly from the individuals to whom |
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556 | 556 | | the data pertains. |
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557 | 557 | | (2) Revenue from processing or transferring the |
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558 | 558 | | personal data of more than 50,000 individuals that the data |
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587 | 587 | | Page 11 |
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588 | 588 | | personal data of more than 50,000 individuals that the data |
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589 | 589 | | broker did not collect directly from the individuals to whom |
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590 | 590 | | the data pertains. |
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591 | 591 | | (b) This chapter does not apply to any of the |
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592 | 592 | | following: |
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593 | 593 | | (1) A service provider, including a service provider |
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594 | 594 | | that engages in the business of processing employee data for a |
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595 | 595 | | third-party employer for the sole purpose of providing |
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596 | 596 | | benefits to the third-party employer's employees. |
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597 | 597 | | (2) A person that collects personal data from another |
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598 | 598 | | person to which the person is related by common ownership or |
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599 | 599 | | corporate control, provided a reasonable consumer would expect |
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600 | 600 | | the persons to share data. |
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601 | 601 | | (3) A federal, state, tribal, territorial, or local |
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602 | 602 | | governmental entity, including a body, authority, board, |
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603 | 603 | | bureau, commission, district, agency, or political subdivision |
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604 | 604 | | of a governmental entity. |
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605 | 605 | | (4) An entity that serves as a congressionally |
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606 | 606 | | designated nonprofit, national resource center, or |
---|
607 | 607 | | clearinghouse to provide assistance to victims, families, |
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608 | 608 | | child-serving professionals, and the general public on missing |
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609 | 609 | | and exploited children issues. |
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610 | 610 | | (5) A consumer reporting agency or other entity that |
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611 | 611 | | furnishes information for inclusion in a consumer credit |
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612 | 612 | | report or obtains a consumer credit report, but only to the |
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613 | 613 | | extent the entity engages in activity regulated or authorized |
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614 | 614 | | by the Fair Credit Reporting Act, 15 U.S.C. § 1681, et seq., |
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615 | 615 | | including the collection, maintenance, disclosure, sale, |
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616 | 616 | | communication, or use of any personal information bearing on a |
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645 | 645 | | Page 12 |
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646 | 646 | | communication, or use of any personal information bearing on a |
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647 | 647 | | consumer's creditworthiness, credit standing, credit capacity, |
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648 | 648 | | character, general reputation, personal characteristics, or |
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649 | 649 | | mode of living. |
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650 | 650 | | (6) A financial institution subject to Title V of the |
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651 | 651 | | Gramm-Leach-Bliley Act, 15 U.S.C. § 6801, et seq. |
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652 | 652 | | Section 4. A data broker that maintains an Internet |
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653 | 653 | | website or mobile application shall post a conspicuous notice |
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654 | 654 | | on the website or application that complies with all of the |
---|
655 | 655 | | following: |
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656 | 656 | | (1) States that the entity maintaining the website or |
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657 | 657 | | application is a data broker. |
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658 | 658 | | (2) Is clear, not misleading, and readily accessible |
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659 | 659 | | by the general public, including individuals with a |
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660 | 660 | | disability. |
---|
661 | 661 | | (3) Contains language provided by rule of the Secretary |
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662 | 662 | | of State for inclusion in the notice. |
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663 | 663 | | Section 5. (a) To conduct business in this state, a |
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664 | 664 | | data broker that is subject to this act shall register by |
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665 | 665 | | January 1, 2025, with the Secretary of State by filing a |
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666 | 666 | | registration certificate and paying a registration fee of |
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667 | 667 | | three hundred dollars ($300). |
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668 | 668 | | (b) The registration certificate must include all of |
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669 | 669 | | the following: |
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670 | 670 | | (1) The legal name of the data broker. |
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671 | 671 | | (2) A contact individual and the primary physical |
---|
672 | 672 | | address, e-mail address, telephone number, and Internet |
---|
673 | 673 | | website address for the data broker. |
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674 | 674 | | (3) A description of the categories of data the data |
---|
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703 | 703 | | Page 13 |
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704 | 704 | | (3) A description of the categories of data the data |
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705 | 705 | | broker processes and transfers. |
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706 | 706 | | (4) A statement of whether or not the data broker |
---|
707 | 707 | | implements a purchaser credentialing process. |
---|
708 | 708 | | (5) If the data broker has actual knowledge that the |
---|
709 | 709 | | data broker possesses personal data of a known child, both of |
---|
710 | 710 | | the following: |
---|
711 | 711 | | a. A statement detailing the data collection practices, |
---|
712 | 712 | | databases, sales activities, and opt-out policies that are |
---|
713 | 713 | | applicable to the personal data of a known child. |
---|
714 | 714 | | b. A statement as to how the data broker complies with |
---|
715 | 715 | | applicable federal and state law regarding the collection, |
---|
716 | 716 | | use, or disclosure of personal data from and about a child on |
---|
717 | 717 | | the Internet. |
---|
718 | 718 | | (6) The number of security breaches the data broker has |
---|
719 | 719 | | experienced during the year immediately preceding the year in |
---|
720 | 720 | | which the registration is filed and, if known, the total |
---|
721 | 721 | | number of consumers affected by each breach. |
---|
722 | 722 | | (c) The registration certificate may include any |
---|
723 | 723 | | additional information or explanation the data broker chooses |
---|
724 | 724 | | to provide to the Secretary of State concerning the data |
---|
725 | 725 | | broker's data collection practices. |
---|
726 | 726 | | (d) A registration certificate expires on the first |
---|
727 | 727 | | anniversary of its date of issuance and every year thereafter. |
---|
728 | 728 | | A data broker may renew a registration certificate by filing a |
---|
729 | 729 | | renewal application, in the form prescribed by the Secretary |
---|
730 | 730 | | of State, and paying a renewal fee of three hundred dollars |
---|
731 | 731 | | ($300). |
---|
732 | 732 | | Section 6. (a) The Secretary of State shall establish |
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761 | 761 | | Page 14 |
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762 | 762 | | Section 6. (a) The Secretary of State shall establish |
---|
763 | 763 | | and maintain, on its Internet website, a searchable, central |
---|
764 | 764 | | registry of data brokers registered pursuant to Section 5. |
---|
765 | 765 | | (b) The registry must include both of the following: |
---|
766 | 766 | | (1) A search feature that allows an individual |
---|
767 | 767 | | searching the registry to identify a specific data broker. |
---|
768 | 768 | | (2) For each data broker, the information filed under |
---|
769 | 769 | | Section 5(b). |
---|
770 | 770 | | Section 7. (a) A data broker conducting business in |
---|
771 | 771 | | this state has a duty to protect personal data held by the |
---|
772 | 772 | | data broker in accordance with this section. |
---|
773 | 773 | | (b) A data broker shall develop, implement, and |
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774 | 774 | | maintain a comprehensive information security program that is |
---|
775 | 775 | | written in one or more readily accessible parts and employs |
---|
776 | 776 | | administrative, technical, and physical safeguards that are |
---|
777 | 777 | | appropriate for: |
---|
778 | 778 | | (1) The data broker's size, scope, and type of |
---|
779 | 779 | | business; |
---|
780 | 780 | | (2) The amount of resources available to the data |
---|
781 | 781 | | broker; |
---|
782 | 782 | | (3) The amount of data stored by the data broker; and |
---|
783 | 783 | | (4) The need for security and confidentiality of the |
---|
784 | 784 | | personal data stored by the data broker. |
---|
785 | 785 | | (c) The comprehensive information security program |
---|
786 | 786 | | required by this section must: |
---|
787 | 787 | | (1) Incorporate safeguards that are consistent with the |
---|
788 | 788 | | safeguards for protection of personal data and information of |
---|
789 | 789 | | a similar character under state or federal laws and rules |
---|
790 | 790 | | applicable to the data broker; |
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791 | 791 | | 365 |
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819 | 819 | | Page 15 |
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820 | 820 | | applicable to the data broker; |
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821 | 821 | | (2) Include the designation of one or more employees of |
---|
822 | 822 | | the data broker to maintain the program; |
---|
823 | 823 | | (3) Require the identification and assessment of |
---|
824 | 824 | | reasonably foreseeable internal and external risks to the |
---|
825 | 825 | | security, confidentiality, and integrity of any electronic, |
---|
826 | 826 | | paper, or other record containing personal data, and the |
---|
827 | 827 | | establishment of a process for evaluating and improving, as |
---|
828 | 828 | | necessary, the effectiveness of the current safeguards for |
---|
829 | 829 | | limiting those risks, including: |
---|
830 | 830 | | a. Requiring ongoing employee and contractor education |
---|
831 | 831 | | and training, including education and training for temporary |
---|
832 | 832 | | employees and contractors of the data broker, on the proper |
---|
833 | 833 | | use of security procedures and protocols and the importance of |
---|
834 | 834 | | personal data security; |
---|
835 | 835 | | b. Mandating employee compliance with policies and |
---|
836 | 836 | | procedures established under the program; and |
---|
837 | 837 | | c. Providing a means for detecting and preventing |
---|
838 | 838 | | security system failures; |
---|
839 | 839 | | (4) Include security policies for the data broker's |
---|
840 | 840 | | employees relating to the storage, access, and transportation |
---|
841 | 841 | | of records containing personal data outside of the broker's |
---|
842 | 842 | | physical business premises; |
---|
843 | 843 | | (5) Provide disciplinary measures for violations of a |
---|
844 | 844 | | policy or procedure established under the program; |
---|
845 | 845 | | (6) Include measures for preventing a terminated |
---|
846 | 846 | | employee from accessing records containing personal data; |
---|
847 | 847 | | (7) Provide policies for the supervision of third-party |
---|
848 | 848 | | service providers that include: |
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849 | 849 | | 393 |
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876 | 876 | | 420 SB213 INTRODUCED |
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877 | 877 | | Page 16 |
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878 | 878 | | service providers that include: |
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879 | 879 | | a. Taking reasonable steps to select and retain |
---|
880 | 880 | | third-party service providers that are capable of maintaining |
---|
881 | 881 | | appropriate security measures to protect personal data |
---|
882 | 882 | | consistent with applicable law; and |
---|
883 | 883 | | b. Requiring third-party service providers, by |
---|
884 | 884 | | contract, to implement and maintain appropriate security |
---|
885 | 885 | | measures for personal data; |
---|
886 | 886 | | (8) Provide reasonable restrictions on physical access |
---|
887 | 887 | | to records containing personal data, including requiring the |
---|
888 | 888 | | records containing the data to be stored in a locked facility, |
---|
889 | 889 | | storage area, or container; |
---|
890 | 890 | | (9) Include regular monitoring to ensure that the |
---|
891 | 891 | | program is operating in a manner reasonably calculated to |
---|
892 | 892 | | prevent unauthorized access to or unauthorized use of personal |
---|
893 | 893 | | data and, as necessary, upgrading information safeguards to |
---|
894 | 894 | | limit the risk of unauthorized access to or unauthorized use |
---|
895 | 895 | | of personal data; |
---|
896 | 896 | | (10)a. Require the regular review of the scope of the |
---|
897 | 897 | | program's security measures; |
---|
898 | 898 | | b. A review of the scope of the program's security |
---|
899 | 899 | | measures must occur at least annually and anytime there is a |
---|
900 | 900 | | material change in the data broker's business practices that |
---|
901 | 901 | | may reasonably affect the security or integrity of records |
---|
902 | 902 | | containing personal data; |
---|
903 | 903 | | (11) Require the documentation of responsive actions |
---|
904 | 904 | | taken in connection with any incident involving a breach of |
---|
905 | 905 | | security, including a mandatory post-incident review of each |
---|
906 | 906 | | event and the actions taken, if any, to make changes in |
---|
907 | 907 | | 421 |
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908 | 908 | | 422 |
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925 | 925 | | 439 |
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932 | 932 | | 446 |
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934 | 934 | | 448 SB213 INTRODUCED |
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935 | 935 | | Page 17 |
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936 | 936 | | event and the actions taken, if any, to make changes in |
---|
937 | 937 | | business practices relating to the protection of personal data |
---|
938 | 938 | | in response to that event; and |
---|
939 | 939 | | (12) To the extent feasible, include the following |
---|
940 | 940 | | procedures and protocols with respect to computer system |
---|
941 | 941 | | security requirements or procedures and protocols providing a |
---|
942 | 942 | | higher degree of security, for the protection of personal |
---|
943 | 943 | | data: |
---|
944 | 944 | | a. Using secure user authentication protocols that |
---|
945 | 945 | | include: |
---|
946 | 946 | | 1. Controlling user log-in credentials and other |
---|
947 | 947 | | identifiers; |
---|
948 | 948 | | 2. Using a reasonably secure method of assigning and |
---|
949 | 949 | | selecting passwords or using unique identifier technologies, |
---|
950 | 950 | | which may include biometrics or token devices; |
---|
951 | 951 | | 3. Controlling data security passwords to ensure that |
---|
952 | 952 | | the passwords are kept in a location and format that do not |
---|
953 | 953 | | compromise the security of the data the passwords protect; |
---|
954 | 954 | | 4. Restricting access to only active users and active |
---|
955 | 955 | | user accounts; and |
---|
956 | 956 | | 5. Blocking access to user credentials or |
---|
957 | 957 | | identification after multiple unsuccessful attempts to gain |
---|
958 | 958 | | access; |
---|
959 | 959 | | b. Using secure access control measures that include: |
---|
960 | 960 | | 1. Restricting access to records containing personal |
---|
961 | 961 | | data to only employees or contractors who need access to the |
---|
962 | 962 | | personal data to perform their job duties; and |
---|
963 | 963 | | 2. Assigning to each employee or contractor with access |
---|
964 | 964 | | to a computer containing personal data a unique identification |
---|
965 | 965 | | 449 |
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966 | 966 | | 450 |
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967 | 967 | | 451 |
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969 | 969 | | 453 |
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970 | 970 | | 454 |
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973 | 973 | | 457 |
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974 | 974 | | 458 |
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975 | 975 | | 459 |
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976 | 976 | | 460 |
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994 | 994 | | to a computer containing personal data a unique identification |
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995 | 995 | | and password, which may not be a vendor-supplied default |
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996 | 996 | | password, or using another protocol reasonably designed to |
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997 | 997 | | maintain the integrity of the security of the access controls |
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998 | 998 | | to personal data; |
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999 | 999 | | c. Encryption of: |
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1000 | 1000 | | 1. Transmitted records containing personal data that |
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1001 | 1001 | | will travel across public networks; and |
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1002 | 1002 | | 2. Data containing personal data that is transmitted |
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1003 | 1003 | | wirelessly; |
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1004 | 1004 | | d. Reasonable monitoring of systems for unauthorized |
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1005 | 1005 | | use of or access to personal data; |
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1006 | 1006 | | e. Encryption of all personal data stored on laptop |
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1007 | 1007 | | computers or other portable devices; |
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1008 | 1008 | | f. For records containing personal data on a system |
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1009 | 1009 | | that is connected to the Internet, using reasonably current |
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1010 | 1010 | | firewall protection and operating system security patches that |
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1011 | 1011 | | are reasonably designed to maintain the integrity of the |
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1012 | 1012 | | personal data; and |
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1013 | 1013 | | g. Using: |
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1014 | 1014 | | 1. A reasonably current version of system security |
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1015 | 1015 | | agent software that must include malware protection and |
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1016 | 1016 | | reasonably current patches and virus definitions; or |
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1017 | 1017 | | 2. A version of system security agent software that is |
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1018 | 1018 | | supportable with current patches and virus definitions and is |
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1019 | 1019 | | set to receive the most current security updates on a regular |
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1020 | 1020 | | basis. |
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1021 | 1021 | | (d) A violation of this section by a data broker |
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1022 | 1022 | | constitutes a violation of the Deceptive Trade Practices Act, |
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1023 | 1023 | | 477 |
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1051 | 1051 | | Page 19 |
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1052 | 1052 | | constitutes a violation of the Deceptive Trade Practices Act, |
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1053 | 1053 | | Chapter 19 of Title 8, Code of Alabama 1975, and shall be |
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1054 | 1054 | | subject to the same penalties as provided therein. |
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1055 | 1055 | | Section 8. (a) A data broker that violates Section 4 or |
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1056 | 1056 | | 5 shall be assessed the following civil penalties by the |
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1057 | 1057 | | Secretary of State: |
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1058 | 1058 | | (1) One hundred dollars ($100) for each day the entity |
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1059 | 1059 | | is in violation. |
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1060 | 1060 | | (2) The amount of unpaid registration fees for each |
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1061 | 1061 | | year the entity fails to register as required by Section 5. |
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1062 | 1062 | | (b) A civil penalty assessed pursuant to this section |
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1063 | 1063 | | may not exceed ten thousand dollars ($10,000) against a single |
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1064 | 1064 | | data broker during a 12-month period. |
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1065 | 1065 | | (c) The Attorney General may bring an action to recover |
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1066 | 1066 | | any civil penalty assessed under this section and may recover |
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1067 | 1067 | | reasonable attorney fees and court costs incurred in bringing |
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1068 | 1068 | | the action. |
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1069 | 1069 | | (d)(1) All penalties collected pursuant to this act |
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1070 | 1070 | | shall be deposited into the Consumer Privacy Protection Fund |
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1071 | 1071 | | which is created in the State Treasury. The fund shall be |
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1072 | 1072 | | administered by the Secretary of State for the purpose of |
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1073 | 1073 | | implementing and administering this act. |
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1074 | 1074 | | (2) No money shall be withdrawn or expended from this |
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1075 | 1075 | | fund for any purpose unless the monies have been appropriated |
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1076 | 1076 | | by the Legislature and allocated pursuant to this act. Any |
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1077 | 1077 | | monies appropriated shall be budgeted and allocated pursuant |
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1078 | 1078 | | to the Budget Management Act in accordance with Article 4, |
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1079 | 1079 | | commencing with Section 41-4-80 of Chapter 4 of Title 41, Code |
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1080 | 1080 | | of Alabama 1975, and only in the amounts provided by the |
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1110 | 1110 | | of Alabama 1975, and only in the amounts provided by the |
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1111 | 1111 | | Legislature in the general appropriations act or other |
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1112 | 1112 | | appropriations act. |
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1113 | 1113 | | Section 9. The Secretary of State shall adopt rules as |
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1114 | 1114 | | necessary to implement this act. |
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1115 | 1115 | | Section 10. This act does not apply to the collection, |
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1116 | 1116 | | processing, or transfer of personal data by a data broker |
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1117 | 1117 | | before January 1, 2025. |
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1118 | 1118 | | Section 11. Although this bill would have as its |
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1119 | 1119 | | purpose or effect the requirement of a new or increased |
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1120 | 1120 | | expenditure of local funds, the bill is excluded from further |
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1121 | 1121 | | requirements and application under Section 111.05 of the |
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1122 | 1122 | | Constitution of Alabama of 2022, because the bill defines a |
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1123 | 1123 | | new crime or amends the definition of an existing crime. |
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1124 | 1124 | | Section 12. This act shall become effective on October |
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1125 | 1125 | | 1, 2024. |
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1126 | 1126 | | 533 |
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