Iowa 2023-2024 Regular Session

Iowa Senate Bill SF262 Latest Draft

Bill / Enrolled Version Filed 03/22/2023

                            Senate File 262 - Enrolled   Senate File 262   AN ACT   RELATING TO CONSUMER DATA PROTECTION, PROVIDING CIVIL   PENALTIES, AND INCLUDING EFFECTIVE DATE PROVISIONS.   BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:    Section 1. NEW SECTION   . 715D.1 Definitions.    As used in this chapter, unless the context otherwise    requires:    1. Affiliate means a legal entity that controls, is    controlled by, or is under common control with another legal    entity or shares common branding with another legal entity.    For the purposes of this definition, control or controlled    means:    a. Ownership of, or the power to vote, more than fifty    percent of the outstanding shares of any class of voting    security of a company.    b. Control in any manner over the election of a majority of    the directors or of individuals exercising similar functions.    c. The power to exercise controlling influence over the    management of a company.    2. Aggregate data means information that relates to a    group or category of consumers, from which individual consumer    identities have been removed, that is not linked or reasonably    linkable to any consumer.    3. Authenticate means verifying through reasonable means    that a consumer, entitled to exercise their consumer rights in    

  Senate File 262, p. 2   section 715D.3, is the same consumer exercising such consumer    rights with respect to the personal data at issue.    4. Biometric data means data generated by automatic    measurements of an individuals biological characteristics,    such as a fingerprint, voiceprint, eye retinas, irises, or    other unique biological patterns or characteristics that is    used to identify a specific individual. Biometric data    does not include a physical or digital photograph, a video or    audio recording or data generated therefrom, or information    collected, used, or stored for health care treatment, payment,    or operations under HIPAA.    5. Child means any natural person younger than thirteen    years of age.    6. Consent means a clear affirmative act signifying a    consumers freely given, specific, informed, and unambiguous    agreement to process personal data relating to the consumer.    Consent may include a written statement, including a    statement written by electronic means, or any other unambiguous    affirmative action.    7. Consumer means a natural person who is a resident of    the state acting only in an individual or household context and    excluding a natural person acting in a commercial or employment    context.    8. Controller means a person that, alone or jointly with    others, determines the purpose and means of processing personal    data.    9. Covered entity means the same as covered entity    defined by HIPAA.    10. De-identified data means data that cannot reasonably    be linked to an identified or identifiable natural person.    11. Fund means the consumer education and litigation fund    established pursuant to section 714.16C.    12. Health care provider means any of the following:    a. A general hospital, ambulatory surgical or treatment    center, skilled nursing center, or assisted living center    licensed or certified by the state.    b. A psychiatric hospital licensed by the state.    c. A hospital operated by the state.    d. A hospital operated by the state board of regents.   

  Senate File 262, p. 3   e. A person licensed to practice medicine or osteopathy in    the state.    f. A person licensed to furnish health care policies or    plans in the state.    g. A person licensed to practice dentistry in the state.    h. Health care provider does not include a continuing care    retirement community or any nursing facility of a religious    body which depends upon prayer alone for healing.    13. Health Insurance Portability and Accountability Act    or HIPAA means the federal Health Insurance Portability and    Accountability Act of 1996, Pub. L. No. 104-191, including    amendments thereto and regulations promulgated thereunder.    14. Health record means any written, printed, or    electronically recorded material maintained by a health care    provider in the course of providing health services to an    individual concerning the individual and the services provided,    including related health information provided in confidence to    a health care provider.    15. Identified or identifiable natural person means a    person who can be readily identified, directly or indirectly.    16. Institution of higher education means nonprofit    private institutions of higher education and proprietary    private institutions of higher education in the state,    community colleges, and each associate-degree-granting and    baccalaureate public institutions of higher education in the    state.    17. Nonprofit organization means any corporation organized    under chapter 504, any organization exempt from taxation    under sections 501(c)(3), 501(c)(6), or 501(c)(12) of the    Internal Revenue Code, any organization exempt from taxation    under section 501(c)(4) of the Internal Revenue Code that    is established to detect or prevent insurance-related crime    or fraud, and any subsidiaries and affiliates of entities    organized pursuant to chapter 499.    18. Personal data means any information that is linked or    reasonably linkable to an identified or identifiable natural    person. Personal data does not include de-identified or    aggregate data or publicly available information.    19. Precise geolocation data means information derived   

  Senate File 262, p. 4   from technology, including but not limited to global    positioning system level latitude and longitude coordinates or    other mechanisms, that identifies the specific location of a    natural person with precision and accuracy within a radius of    one thousand seven hundred fifty feet. Precise geolocation    data does not include the content of communications, or    any data generated by or connected to utility metering    infrastructure systems or equipment for use by a utility.    20. Process or processing means any operation or set    of operations performed, whether by manual or automated means,    on personal data or on sets of personal data, such as the    collection, use, storage, disclosure, analysis, deletion, or    modification of personal data.    21. Processor means a person that processes personal data    on behalf of a controller.    22. Protected health information means the same as    protected health information established by HIPAA.    23. Pseudonymous data means personal data that cannot    be attributed to a specific natural person without the use    of additional information, provided that such additional    information is kept separately and is subject to appropriate    technical and organizational measures to ensure that    the personal data is not attributed to an identified or    identifiable natural person.    24. Publicly available information means information    that is lawfully made available through federal, state, or    local government records, or information that a business has    reasonable basis to believe is lawfully made available to    the general public through widely distributed media, by the    consumer, or by a person to whom the consumer has disclosed the    information, unless the consumer has restricted the information    to a specific audience.    25. Sale of personal data means the exchange of personal    data for monetary consideration by the controller to a third    party. Sale of personal data does not include:    a. The disclosure of personal data to a processor that    processes the personal data on behalf of the controller.    b. The disclosure of personal data to a third party for    purposes of providing a product or service requested by the   

  Senate File 262, p. 5   consumer or a parent of a child.    c. The disclosure or transfer of personal data to an    affiliate of the controller.    d. The disclosure of information that the consumer    intentionally made available to the general public via a    channel of mass media and did not restrict to a specific    audience.    e. The disclosure or transfer of personal data when a    consumer uses or directs a controller to intentionally disclose    personal data or intentionally interact with one or more third    parties.    f. The disclosure or transfer of personal data to a third    party as an asset that is part of a proposed or actual merger,    acquisition, bankruptcy, or other transaction in which the    third party assumes control of all or part of the controllers    assets.    26. Sensitive data means a category of personal data that    includes the following:    a. Racial or ethnic origin, religious beliefs, mental or    physical health diagnosis, sexual orientation, or citizenship    or immigration status, except to the extent such data is used    in order to avoid discrimination on the basis of a protected    class that would violate a federal or state anti-discrimination    law.    b. Genetic or biometric data that is processed for the    purpose of uniquely identifying a natural person.    c. The personal data collected from a known child.    d. Precise geolocation data.    27. State agency means the same as defined in 129 IAC    10.2(8B).    28. Targeted advertising means displaying advertisements    to a consumer where the advertisement is selected based on      personal data obtained from that consumers activities over    time and across nonaffiliated websites or online applications    to predict such consumers preferences or interests. Targeted    advertising does not include the following:    a. Advertisements based on activities within a controllers    own or affiliated websites or online applications.    b. Advertisements based on the context of a consumers   

  Senate File 262, p. 6   current search query, visit to a website, or online    application.    c. Advertisements directed to a consumer in response to the    consumers request for information or feedback.    d. Processing personal data solely for measuring or    reporting advertising performance, reach, or frequency.    29. Third party means a natural or legal person, public    authority, agency, or body other than the consumer, controller,    processor, or an affiliate of the processor or the controller.    30. Trade secret means information, including but not    limited to a formula, pattern, compilation, program, device,    method, technique, or process, that consists of the following:    a. Information that derives independent economic value,    actual or potential, from not being generally known to, and not    being readily ascertainable by proper means by, other persons    who can obtain economic value from its disclosure or use.    b. Information that is the subject of efforts that are    reasonable under the circumstances to maintain its secrecy.    Sec. 2. NEW SECTION   . 715D.2 Scope and exemptions.    1. This chapter applies to a person conducting business in    the state or producing products or services that are targeted    to consumers who are residents of the state and that during a    calendar year does either of the following:    a. Controls or processes personal data of at least one    hundred thousand consumers.    b. Controls or processes personal data of at least    twenty-five thousand consumers and derives over fifty percent    of gross revenue from the sale of personal data.    2. This chapter shall not apply to the state or any    political subdivision of the state; financial institutions,    affiliates of financial institutions, or data subject to Tit. V    of the federal Gramm-Leach-Bliley Act of 1999, l5 U.S.C. 6801    et seq.; persons who are subject to and comply with regulations    promulgated pursuant to Tit. II, subtit. F, of the federal    Health Insurance Portability and Accountability Act of 1996,    Pub. L. No. 104-191, and Tit. XIII, subtit. D, of the federal      Health Information Technology for Economic and Clinical Health    Act of 2009, 42 U.S.C. 17921 - 17954; nonprofit organizations;    or institutions of higher education.    

  Senate File 262, p. 7   3. The following information and data is exempt from this    chapter:    a. Protected health information under HIPAA.    b. Health records.    c. Patient identifying information for purposes of 42 U.S.C.    290dd-2.    d. Identifiable private information for purposes of the    federal policy for the protection of human subjects under 45    C.F.R. pt. 46.    e. Identifiable private information that is otherwise    information collected as part of human subjects research    pursuant to the good clinical practice guidelines issued by    the international council for harmonization of technical    requirements for pharmaceuticals for human use.    f. The protection of human subjects under 21 C.F.R. pts. 6,    50, and 56.    g. Personal data used or shared in research conducted in    accordance with the requirements set forth in this chapter, or    other research conducted in accordance with applicable law.    h. Information and documents created for purposes of the    federal Health Care Quality Improvement Act of 1986, 42 U.S.C.    11101 et seq.    i. Patient safety work product for purposes of the federal    Patient Safety and Quality Improvement Act, 42 U.S.C. 299b-21    et seq.    j. Information derived from any of the health care-related    information listed in this subsection that is de-identified in    accordance with the requirements for de-identification pursuant    to HIPAA.    k. Information originating from, and intermingled to be    indistinguishable with, or information treated in the same    manner as information exempt under this subsection that is    maintained by a covered entity or business associate as defined    by HIPAA or a program or a qualified service organization as    defined by 42 U.S.C. 290dd-2.    l. Information used only for public health activities and    purposes as authorized by HIPAA.    m. The collection, maintenance, disclosure, sale,      communication, or use of any personal information bearing on a   

  Senate File 262, p. 8   consumers credit worthiness, credit standing, credit capacity,    character, general reputation, personal characteristics, or    mode of living by a consumer reporting agency or furnisher that    provides information for use in a consumer report, and by a    user of a consumer report, but only to the extent that such    activity is regulated by and authorized under the federal Fair    Credit Reporting Act, 15 U.S.C. 1681 et seq.    n. Personal data collected, processed, sold, or disclosed in    compliance with the federal Drivers Privacy Protection Act of    1994, 18 U.S.C. 2721 et seq.    o. Personal data regulated by the federal Family Educational    Rights and Privacy Act, 20 U.S.C. 1232 et seq.    p. Personal data collected, processed, sold, or disclosed in    compliance with the federal Farm Credit Act, 12 U.S.C. 2001    et seq.    q. Data processed or maintained as follows:    (1) In the course of an individual applying to, employed    by, or acting as an agent or independent contractor of a    controller, processor, or third party, to the extent that the    data is collected and used within the context of that role.    (2) As the emergency contact information of an individual    under this chapter used for emergency contact purposes.    (3) That is necessary to retain to administer benefits    for another individual relating to the individual under    subparagraph (1) and used for the purposes of administering    those benefits.    r. Personal data used in accordance with the federal    Childrens Online Privacy Protection Act, 15 U.S.C. 6501     6506, and its rules, regulations, and exceptions thereto.    Sec. 3. NEW SECTION   . 715D.3 Consumer data rights.    1. A consumer may invoke the consumer rights authorized    pursuant to this section at any time by submitting a request to    the controller, through the means specified by the controller    pursuant to section 715D.4, subsection 6, specifying the    consumer rights the consumer wishes to invoke. A known childs    parent or legal guardian may invoke such consumer rights    on behalf of the known child regarding processing personal    data belonging to the child. A controller shall comply with    an authenticated consumer request to exercise all of the    

  Senate File 262, p. 9   following:    a. To confirm whether a controller is processing the    consumers personal data and to access such personal data.    b. To delete personal data provided by the consumer.    c. To obtain a copy of the consumers personal data, except    as to personal data that is defined as personal information    pursuant to section 715C.1 that is subject to security breach    protection, that the consumer previously provided to the    controller in a portable and, to the extent technically    practicable, readily usable format that allows the consumer    to transmit the data to another controller without hindrance,    where the processing is carried out by automated means.    d. To opt out of the sale of personal data.    2. Except as otherwise provided in this chapter, a    controller shall comply with a request by a consumer to    exercise the consumer rights authorized pursuant to this    section as follows:    a. A controller shall respond to the consumer without    undue delay, but in all cases within ninety days of receipt    of a request submitted pursuant to the methods described in    this section. The response period may be extended once by    forty-five additional days when reasonably necessary upon    considering the complexity and number of the consumers    requests by informing the consumer of any such extension within    the initial ninety-day response period, together with the    reason for the extension.    b. If a controller declines to take action regarding the    consumers request, the controller shall inform the consumer    without undue delay of the justification for declining to take    action, except in the case of a suspected fraudulent request,    in which case the controller may state that the controller was    unable to authenticate the request. The controller shall also    provide instructions for appealing the decision pursuant to    subsection 3.      c. Information provided in response to a consumer request    shall be provided by a controller free of charge, up to    twice annually per consumer. If a request from a consumer    is manifestly unfounded, excessive, repetitive, technically    unfeasible, or the controller reasonably believes that the   

  Senate File 262, p. 10   primary purpose of the request is not to exercise a consumer    right, the controller may charge the consumer a reasonable fee    to cover the administrative costs of complying with the request    or decline to act on the request. The controller bears the    burden of demonstrating the manifestly unfounded, excessive,    repetitive, or technically unfeasible nature of the request.    d. If a controller is unable to authenticate a request    using commercially reasonable efforts, the controller shall    not be required to comply with a request to initiate an action    under this section and may request that the consumer provide    additional information reasonably necessary to authenticate the    consumer and the consumers request.    3. A controller shall establish a process for a consumer    to appeal the controllers refusal to take action on a request    within a reasonable period of time after the consumers    receipt of the decision pursuant to this section. The appeal    process shall be conspicuously available and similar to the    process for submitting requests to initiate action pursuant    to this section. Within sixty days of receipt of an appeal,    a controller shall inform the consumer in writing of any    action taken or not taken in response to the appeal, including    a written explanation of the reasons for the decision. If    the appeal is denied, the controller shall also provide the    consumer with an online mechanism through which the consumer    may contact the attorney general to submit a complaint.    Sec. 4. NEW SECTION   . 715D.4 Data controller duties.    1. A controller shall adopt and implement reasonable    administrative, technical, and physical data security practices    to protect the confidentiality, integrity, and accessibility    of personal data. Such data security practices shall be    appropriate to the volume and nature of the personal data at    issue.      2. A controller shall not process sensitive data collected    from a consumer for a nonexempt purpose without the consumer    having been presented with clear notice and an opportunity to    opt out of such processing, or, in the case of the processing    of sensitive data concerning a known child, without processing    such data in accordance with the federal Childrens Online    Privacy Protection Act, 15 U.S.C. 6501 et seq.    

  Senate File 262, p. 11   3. A controller shall not process personal data in    violation of state and federal laws that prohibit unlawful    discrimination against a consumer. A controller shall not    discriminate against a consumer for exercising any of the    consumer rights contained in this chapter, including denying    goods or services, charging different prices or rates for    goods or services, or providing a different level of quality    of goods and services to the consumer. However, nothing in    this chapter shall be construed to require a controller to    provide a product or service that requires the personal data    of a consumer that the controller does not collect or maintain    or to prohibit a controller from offering a different price,    rate, level, quality, or selection of goods or services to a    consumer, including offering goods or services for no fee,    if the consumer has exercised the consumers right to opt    out pursuant to section 715D.3 or the offer is related to a    consumers voluntary participation in a bona fide loyalty,    rewards, premium features, discounts, or club card program.    4. Any provision of a contract or agreement that purports to    waive or limit in any way consumer rights pursuant to section    715D.3 shall be deemed contrary to public policy and shall be    void and unenforceable.    5. A controller shall provide consumers with a reasonably    accessible, clear, and meaningful privacy notice that includes    the following:    a. The categories of personal data processed by the    controller.    b. The purpose for processing personal data.    c. How consumers may exercise their consumer rights pursuant    to section 715D.3, including how a consumer may appeal a    controllers decision with regard to the consumers request.    d. The categories of personal data that the controller    shares with third parties, if any.    e. The categories of third parties, if any, with whom the    controller shares personal data.    6. If a controller sells a consumers personal data to third    parties or engages in targeted advertising, the controller    shall clearly and conspicuously disclose such activity, as well    as the manner in which a consumer may exercise the right to opt   

  Senate File 262, p. 12   out of such activity.    7. A controller shall establish, and shall describe in    a privacy notice, secure and reliable means for consumers to    submit a request to exercise their consumer rights under this    chapter. Such means shall consider the ways in which consumers    normally interact with the controller, the need for secure and    reliable communication of such requests, and the ability of    the controller to authenticate the identity of the consumer    making the request. A controller shall not require a consumer    to create a new account in order to exercise consumer rights    pursuant to section 715D.3, but may require a consumer to use    an existing account.    Sec. 5. NEW SECTION   . 715D.5 Processor duties.    1. A processor shall assist a controller in duties    required under this chapter, taking into account the nature of    processing and the information available to the processor by    appropriate technical and organizational measures, insofar as    is reasonably practicable, as follows:    a. To fulfill the controllers obligation to respond to    consumer rights requests pursuant to section 715D.3.    b. To meet the controllers obligations in relation to the    security of processing the personal data and in relation to the    notification of a security breach of the processor pursuant to    section 715C.2.    2. A contract between a controller and a processor shall    govern the processors data processing procedures with respect    to processing performed on behalf of the controller. The    contract shall clearly set forth instructions for processing    personal data, the nature and purpose of processing, the type    of data subject to processing, the duration of processing, and    the rights and duties of both parties. The contract shall also    include requirements that the processor shall do all of the    following:    a. Ensure that each person processing personal data is    subject to a duty of confidentiality with respect to the data.    b. At the controllers direction, delete or return all    personal data to the controller as requested at the end of the    provision of services, unless retention of the personal data    is required by law.    

  Senate File 262, p. 13   c. Upon the reasonable request of the controller, make    available to the controller all information in the processors    possession necessary to demonstrate the processors compliance    with the obligations in this chapter.    d. Engage any subcontractor or agent pursuant to a written    contract in accordance with this section that requires the    subcontractor to meet the duties of the processor with respect    to the personal data.    3. Nothing in this section shall be construed to relieve a    controller or a processor from imposed liabilities by virtue    of the controller or processors role in the processing    relationship as defined by this chapter.    4. Determining whether a person is acting as a controller or    processor with respect to a specific processing of data is a    fact-based determination that depends upon the context in which    personal data is to be processed. A processor that continues    to adhere to a controllers instructions with respect to a    specific processing of personal data remains a processor.    Sec. 6. NEW SECTION   . 715D.6 Processing data  exemptions.    1. Nothing in this chapter shall be construed to require the    following:    a. A controller or processor to re-identify de-identified    data or pseudonymous data.    b. Maintaining data in identifiable form.    c. Collecting, obtaining, retaining, or accessing any    data or technology, in order to be capable of associating an    authenticated consumer request with personal data.    2. Nothing in this chapter shall be construed to require    a controller or processor to comply with an authenticated    consumer rights request, pursuant to section 715D.3, if all of    the following apply:    a. The controller is not reasonably capable of associating    the request with the personal data or it would be unreasonably    burdensome for the controller to associate the request with the    personal data.    b. The controller does not use the personal data to    recognize or respond to the specific consumer who is the    subject of the personal data, or associate the personal data    with other personal data about the same specific consumer.    

  Senate File 262, p. 14   c. The controller does not sell the personal data to any    third party or otherwise voluntarily disclose the personal data    to any third party other than a processor, except as otherwise    permitted in this chapter.    3. Consumer rights contained in sections 715D.3 and 715D.4    shall not apply to pseudonymous data in cases where the    controller is able to demonstrate any information necessary    to identify the consumer is kept separately and is subject to    appropriate technical and organizational measures to ensure    that the personal data is not attributed to an identified or    identifiable natural person.    4. Controllers that disclose pseudonymous data or    de-identified data shall exercise reasonable oversight to    monitor compliance with any contractual commitments to which    the pseudonymous data or de-identified data is subject and    shall take appropriate steps to address any breaches of those    contractual commitments.    Sec. 7. NEW SECTION . 715D.7 Limitations.    1. Nothing in this chapter shall be construed to restrict a    controllers or processors ability to do the following:    a. Comply with federal, state, or local laws, rules, or    regulations.    b. Comply with a civil, criminal, or regulatory inquiry,    investigation, subpoena, or summons by federal, state, local,    or other governmental authorities.    c. Cooperate with law enforcement agencies concerning    conduct or activity that the controller or processor reasonably    and in good faith believes may violate federal, state, or local    laws, rules, or regulations.    d. Investigate, establish, exercise, prepare for, or defend    legal claims.    e. Provide a product or service specifically requested by a    consumer or parent or guardian of a child, perform a contract    to which the consumer or parent or guardian of a child is a    party, including fulfilling the terms of a written warranty, or    take steps at the request of the consumer or parent or guardian    of a child prior to entering into a contract.    f. Take immediate steps to protect an interest that is    essential for the life or physical safety of the consumer or    

  Senate File 262, p. 15   of another natural person, and where the processing cannot be    manifestly based on another legal basis.    g. Prevent, detect, protect against, or respond to security    incidents, identity theft, fraud, harassment, malicious or    deceptive activities, or any illegal activity.    h. Preserve the integrity or security of systems.    i. Investigate, report, or prosecute those responsible for    any such action.    j. Engage in public or peer-reviewed scientific or    statistical research in the public interest that adheres to    all other applicable ethics and privacy laws and is approved,    monitored, and governed by an institutional review board, or    similar independent oversight entities that determine the    following:    (1) If the deletion of the information is likely to provide    substantial benefits that do not exclusively accrue to the    controller.    (2) The expected benefits of the research outweigh the    privacy risks.    (3) If the controller has implemented reasonable safeguards    to mitigate privacy risks associated with research, including    any risks associated with re-identification.    k. Assist another controller, processor, or third party with    any of the obligations under this subsection.    2. The obligations imposed on a controller or processor    under this chapter shall not restrict a controllers or    processors ability to collect, use, or retain data as follows:    a. To conduct internal research to develop, improve, or    repair products, services, or technology.    b. To effectuate a product recall.    c. To identify and repair technical errors that impair    existing or intended functionality.    d. To perform internal operations that are reasonably    aligned with the expectations of the consumer or reasonably    anticipated based on the consumers existing relationship with    the controller or are otherwise compatible with processing    data in furtherance of the provision of a product or service    specifically requested by a consumer or parent or guardian of a    child or the performance of a contract to which the consumer or   

  Senate File 262, p. 16   parent or guardian of a child is a party.    3. The obligations imposed on controllers or processors    under this chapter shall not apply where compliance by the    controller or processor with this chapter would violate an    evidentiary privilege under the laws of the state. Nothing    in this chapter shall be construed to prevent a controller or    processor from providing personal data concerning a consumer to    a person covered by an evidentiary privilege under the laws of    the state as part of a privileged communication.    4. A controller or processor that discloses personal data    to a third-party controller or processor, in compliance with    the requirements of this chapter, is not in violation of    this chapter if the third-party controller or processor that    receives and processes such personal data is in violation of    this chapter, provided that, at the time of disclosing the    personal data, the disclosing controller or processor did not    have actual knowledge that the recipient intended to commit a    violation. A third-party controller or processor receiving    personal data from a controller or processor in compliance with    the requirements of this chapter is likewise not in violation    of this chapter for the offenses of the controller or processor    from which it receives such personal data.    5. Nothing in this chapter shall be construed as an    obligation imposed on a controller or a processor that    adversely affects the privacy or other rights or freedoms    of any persons, such as exercising the right of free speech    pursuant to the first amendment to the United States    Constitution, or applies to personal data by a person in the    course of a purely personal or household activity.    6. Personal data processed by a controller pursuant to    this section shall not be processed for any purpose other than    those expressly listed in this section unless otherwise allowed    by this chapter. Personal data processed by a controller    pursuant to this section may be processed to the extent that    such processing is as follows:    a. Reasonably necessary and proportionate to the purposes    listed in this section.    b. Adequate, relevant, and limited to what is necessary    in relation to the specific purposes listed in this section.   

  Senate File 262, p. 17   Personal data collected, used, or retained pursuant to    this section shall, where applicable, take into account    the nature and purpose or purposes of such collection, use,    or retention. Such data shall be subject to reasonable    administrative, technical, and physical measures to protect the    confidentiality, integrity, and accessibility of the personal    data.    7. If a controller processes personal data pursuant to an    exemption in this section, the controller bears the burden of    demonstrating that such processing qualifies for the exemption    and complies with the requirements in subsection 6.    8. Processing personal data for the purposes expressly    identified in subsection 1 shall not in and of itself make an    entity a controller with respect to such processing.    9. This chapter shall not require a controller, processor,    third party, or consumer to disclose trade secrets.    Sec. 8. NEW SECTION . 715D.8 Enforcement  penalties.    1. The attorney general shall have exclusive authority to    enforce the provisions of this chapter. Whenever the attorney    general has reasonable cause to believe that any person has    engaged in, is engaging in, or is about to engage in any    violation of this chapter, the attorney general is empowered to    issue a civil investigative demand. The provisions of section    685.6 shall apply to civil investigative demands issued under    this chapter.    2. Prior to initiating any action under this chapter,    the attorney general shall provide a controller or processor    ninety days written notice identifying the specific provisions    of this chapter the attorney general alleges have been or    are being violated. If within the ninety-day period, the    controller or processor cures the noticed violation and    provides the attorney general an express written statement that    the alleged violations have been cured and that no further such    violations shall occur, no action shall be initiated against    the controller or processor.    3. If a controller or processor continues to violate this    chapter following the cure period in subsection 2 or breaches    an express written statement provided to the attorney general    under that subsection, the attorney general may initiate an    

  Senate File 262, p. 18   action in the name of the state and may seek an injunction to    restrain any violations of this chapter and civil penalties of    up to seven thousand five hundred dollars for each violation    under this chapter. Any moneys collected under this section    including civil penalties, costs, attorney fees, or amounts    which are specifically directed shall be paid into the consumer    education and litigation fund established under section    714.16C.    4. Nothing in this chapter shall be construed as providing    the basis for, or be subject to, a private right of action for    violations of this chapter or under any other law.    Sec. 9. NEW SECTION   . 715D.9 Preemption.    1. This chapter supersedes and preempts all rules,    regulations, codes, ordinances, and other laws adopted by a    city, county, municipality, or local agency regarding the    processing of personal data by controllers or processors.    2. Any reference to federal, state, or local law or statute    in this chapter shall be deemed to include any accompanying    rules or regulations or exemptions thereto, or in the case of a    federal agency, guidance issued by such agency thereto.    Sec. 10. EFFECTIVE DATE. This Act takes effect January 1,    2025.    ______________________________   AMY SINCLAIR   President of the Senate   ______________________________   PAT GRASSLEY   Speaker of the House   I hereby certify that this bill originated in the Senate and   is known as Senate File 262, Ninetieth General Assembly.   ______________________________   W. CHARLES SMITHSON   Secretary of the Senate   Approved _______________, 2023 ______________________________   KIM REYNOLDS   Governor