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AN ACT relating to consumer data privacy and making an appropriation therefor. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 367 IS CREATED TO 3
READ AS FOLLOWS: 4
As used in Sections 1 to 10 of this Act: 5
(1) "Affiliate" means a legal entity that controls, is controlled by, or is under 6
common control with another legal entity or shares common branding with 7
another legal entity. For the purposes of this definition, "control" or 8
"controlled" means: 9
(a) Ownership of, or the power to vote, more than fifty percent (50%) of the 10
outstanding shares of any class of voting security of a company; 11
(b) Control in any manner over the election of a majority of the directors or of 12
individuals exercising similar functions; or 13
(c) The power to exercise controlling influence over the management of a 14
company; 15
(2) "Authenticate" means verifying through reasonable means that the consumer 16
entitled to exercise his or her consumer rights in Section 3 of this Act is the same 17
consumer exercising such consumer rights with respect to the personal data at 18
issue; 19
(3) "Biometric data" means data generated by automatic measurements of an 20
individual's biological characteristics, such as a fingerprint, voiceprint, eye 21
retinas, irises, or other unique biological patterns or characteristics that are used 22
to identify a specific individual. Biometric data does not include a physical or 23
digital photograph, a video or audio recording or data generated therefrom, 24
unless that data is generated to identify a specific individual or information 25
collected, used, or stored for health care treatment, payment, or operations under 26
HIPAA; 27 UNOFFICIAL COPY 24 RS HB 15/GA
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(4) "Business associate" has the same meaning as established in 45 C.F.R. sec. 1
160.103 pursuant to HIPAA; 2
(5) "Child" has the same meaning as in 15 U.S.C. sec. 6501; 3
(6) "Consent" means a clear affirmative act signifying a consumer's freely given, 4
specific, informed, and unambiguous agreement to process personal data relating 5
to the consumer. Consent may include a written statement, written by electronic 6
means or any other unambiguous affirmative action; 7
(7) "Consumer" means a natural person who is a resident of the Commonwealth of 8
Kentucky acting only in an individual context. Consumer does not include a 9
natural person acting in a commercial or employment context; 10
(8) "Controller" means the natural or legal person that, alone or jointly with others, 11
determines the purpose and means of processing personal data; 12
(9) "Covered entity" has the same meaning as established in 45 C.F.R. sec. 160.103 13
pursuant to HIPAA; 14
(10) "Decisions that produce legal or similarly significant effects concerning a 15
consumer" means a decision made by a controller that results in the provision or 16
denial by the controller of financial and lending services, housing, insurance, 17
education enrollment, criminal justice, employment opportunities, health care 18
services, or access to basic necessities like food and water; 19
(11) "De-identified data" means data that cannot reasonably be linked to an identified 20
or identifiable natural person or a device linked to a person; 21
(12) "Fund" means the consumer privacy fund established in Section 10 of this Act; 22
(13) "Health record" means a record, other than for financial or billing purposes, 23
relating to an individual, kept by a health care provider as a result of the 24
professional relationship established between the health care provider and the 25
individual; 26
(14) "Health care provider" means: 27 UNOFFICIAL COPY 24 RS HB 15/GA
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(a) Any health facility as defined in KRS 216B.015; 1
(b) Any person or entity providing health care or health services, including 2
those licensed, certified, or registered under, or subject to, KRS 194A.700 to 3
194A.729 or KRS Chapter 310, 311, 311A, 311B, 312, 313, 314, 314A, 315, 4
319, 319A, 319B, 319C, 320, 327, 333, 334A, or 335; 5
(c) The current and former employers, officers, directors, administrators, 6
agents, or employees of those entities listed in paragraphs (a) and (b) of this 7
subsection; or 8
(d) Any person acting within the course and scope of his or her office, 9
employment, or agency relating to a health care provider; 10
(15) "HIPAA" means the federal Health Insurance Portability and Accountability Act 11
of 1996, Pub. L. No. 104-191; 12
(16) "Identified or identifiable natural person" means a person who can be readily 13
identified directly or indirectly; 14
(17) "Institution of higher education" means an educational institution which: 15
(a) Admits as regular students only individuals having a certificate of 16
graduation from a high school, or the recognized equivalent of such a 17
certificate; 18
(b) Is legally authorized in this state to provide a program of education beyond 19
high school; 20
(c) Provides an educational program for which it awards a bachelor's or higher 21
degree, or provides a program which is acceptable for full credit toward 22
such a degree, a program of postgraduate or postdoctoral studies, or a 23
program of training to prepare students for gainful employment in a 24
recognized occupation; and 25
(d) Is a public or other nonprofit institution; 26
(18) "Nonprofit organization" means any incorporated or unincorporated entity that: 27 UNOFFICIAL COPY 24 RS HB 15/GA
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(a) Is operating for religious, charitable, or educational purposes; and 1
(b) Does not provide net earnings to, or operate in any manner that inures to 2
the benefit of, any officer, employee, or shareholder of the entity; 3
(19) "Personal data" means any information that is linked or reasonably linkable to 4
an identified or identifiable natural person. Personal data does not include de-5
identified data or publicly available information; 6
(20) "Precise geolocation data" means information derived from technology, 7
including but not limited to global positioning system level latitude and longitude 8
coordinates or other mechanisms, that directly identifies the specific location of a 9
natural person with precision and accuracy within a radius of one thousand 10
seven hundred fifty (1,750) feet. Precise geolocation data does not include the 11
content of communications, or any data generated by or connected to advanced 12
utility metering infrastructure systems or equipment for use by a utility; 13
(21) "Process" or "processing" means any operation or set of operations performed, 14
whether by manual or automated means, on personal data or on sets of personal 15
data, including but not limited to the collection, use, storage, disclosure, analysis, 16
deletion, or modification of personal data; 17
(22) "Processor" means a natural or legal entity that processes personal data on 18
behalf of a controller; 19
(23) "Profiling" means any form of automated processing performed on personal 20
data to evaluate, analyze, or predict personal aspects related to an identified or 21
identifiable natural person's economic situation, health, personal preferences, 22
interests, reliability, behavior, location, or movements; 23
(24) "Protected health information" means the same as established in 45 C.F.R. sec. 24
160.103 pursuant to HIPAA; 25
(25) "Pseudonymous data" means personal data that cannot be attributed to a specific 26
natural person without the use of additional information, provided that the 27 UNOFFICIAL COPY 24 RS HB 15/GA
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additional information is kept separately and is subject to appropriate technical 1
and organizational measures to ensure that the personal data is not attributed to 2
an identified or identifiable natural person; 3
(26) "Publicly available information" means information that is lawfully made 4
available through federal, state, or local government records, or information that 5
a business has a reasonable basis to believe is lawfully made available to the 6
general public through widely distributed media, by the consumer, or by a person 7
to whom the consumer has disclosed the information, unless the consumer has 8
restricted the information to a specific audience; 9
(27) "Sale of personal data" means the exchange of personal data for monetary 10
consideration by the controller to a third party. Sale of personal data does not 11
include: 12
(a) The disclosure of personal data to a processor that processes the personal 13
data on behalf of the controller; 14
(b) The disclosure of personal data to a third party for purposes of providing a 15
product or service requested by the consumer; 16
(c) The disclosure or transfer of personal data to an affiliate of the controller; 17
(d) The disclosure of information that the consumer; 18
1. Intentionally made available to the general public via a channel of 19
mass media; and 20
2. Did not restrict to a specific audience; or 21
(e) The disclosure or transfer of personal data to a third party as an asset that 22
is part of a proposed or actual merger, acquisition, bankruptcy, or other 23
transaction in which the third party assumes control of all or part of the 24
controller's assets; 25
(28) "Sensitive data" means a category of personal data that includes: 26
(a) Personal data indicating racial or ethnic origin, religious beliefs, mental or 27 UNOFFICIAL COPY 24 RS HB 15/GA
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physical health diagnosis, sexual orientation, or citizenship or immigration 1
status; 2
(b) The processing of genetic or biometric data that is processed for the purpose 3
of uniquely identifying a specific natural person; 4
(c) The personal data collected from a known child; or 5
(d) Precise geolocation data; 6
(29) "State agency" means all departments, offices, commissions, boards, institutions, 7
and political and corporate bodies of the state, including the offices of the clerk of 8
the Supreme Court, clerks of the appellate courts, the several courts of the state, 9
and the legislature, its committees, or commissions; 10
(30) "Targeted advertising" means displaying advertisements to a consumer where the 11
advertisement is selected based on personal data obtained or inferred from that 12
consumer's activities over time and across nonaffiliated websites or online 13
applications to predict that consumer's preferences or interests. "Targeted 14
advertising" does not include: 15
(a) Advertisements based on activities within a controller's own or affiliated 16
websites or online applications; 17
(b) Advertisements based on the context of a consumer's current search query, 18
visit to a website, or online application; 19
(c) Advertisements directed to a consumer in response to the consumer's 20
request for information or feedback; or 21
(d) Processing personal data solely for measuring or reporting advertising 22
performance, reach, or frequency; 23
(31) "Third party" means a natural or legal person, public authority, agency, or body 24
other than the consumer, controller, processor, or an affiliate of the processor or 25
the controller; 26
(32) "Trade secret" has the same meaning as in KRS 365.880. 27 UNOFFICIAL COPY 24 RS HB 15/GA
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SECTION 2. A NEW SECTION OF KRS CHAPTER 367 IS CREATED TO 1
READ AS FOLLOWS: 2
(1) Sections 1 to 10 of this Act apply to persons that conduct business in the 3
Commonwealth or produce products or services that are targeted to residents of 4
the Commonwealth and that during a calendar year control or process personal 5
data of at least: 6
(a) One hundred thousand (100,000) consumers; or 7
(b) Twenty-five thousand (25,000) consumers and derive over fifty percent 8
(50%) of gross revenue from the sale of personal data. 9
(2) Sections 1 to 10 of this Act shall not apply to any: 10
(a) City, state agency or any political subdivision of the state; 11
(b) Financial institutions, their affiliates, or data subject to Title V of the 12
federal Gramm-Leach-Bliley Act, 15 U.S.C. sec. 6801 et seq.; 13
(c) Covered entity or business associate governed by the privacy, security, and 14
breach notification rules issued by the United States Department of Health 15
and Human Services, 45 C.F.R. pts. 160 and 164 established pursuant to 16
HIPAA; 17
(d) Nonprofit organization; 18
(e) Institution of higher education; 19
(f) Organization that: 20
1. Does not provide net earnings to, or operate in any manner that inures 21
to the benefit of, any officer, employee, or shareholder of the entity; 22
and 23
2. Is an entity such as those recognized under KRS 304.47-060(1)(e), so 24
long as the entity collects, processes, uses, or shares data solely in 25
relation to identifying, investigating, or assisting: 26
a. Law enforcement agencies in connection with suspected 27 UNOFFICIAL COPY 24 RS HB 15/GA
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insurance-related criminal or fraudulent acts; or 1
b. First responders in connection with catastrophic events; or 2
(g) Small telephone utility as defined in KRS 278.516, a Tier III CMRS 3
provider as defined in KRS 65.7621, or a municipally owned utility that does 4
not sell or share personal data with any third-party processor. 5
(3) The following information and data are exempt from Sections 1 to 10 of this Act: 6
(a) Protected health information under HIPAA; 7
(b) Health records; 8
(c) Patient identifying information for purposes of 42 C.F.R. sec. 2.11; 9
(d) Identifiable private information for purposes of the federal policy for the 10
protection of human subjects under 45 C.F.R. pt. 46; identifiable private 11
information that is otherwise information collected as part of human 12
subjects research pursuant to the good clinical practice guidelines issued by 13
the International Council for Harmonisation of Technical Requirements 14
for Pharmaceuticals for Human Use; the protection of human subjects 15
under 21 C.F.R. pts. 50 and 56, or personal data used or shared in research 16
conducted in accordance with the requirements set forth in Sections 1 to 10 17
of this Act, or other research conducted in accordance with applicable law; 18
(e) Information and documents created for purposes of the federal Health Care 19
Quality Improvement Act of 1986, 42 U.S.C. sec. 11101 et seq.; 20
(f) Patient safety work product for purposes of the federal Patient Safety and 21
Quality Improvement Act, 42 U.S.C. sec. 299b-21 et seq.; 22
(g) Information derived from any of the health care-related information listed 23
in this subsection that is de-identified in accordance with the requirements 24
for de-identification pursuant to HIPAA; 25
(h) Information originating from, and intermingled to be indistinguishable 26
from, or information treated in the same manner as information exempt 27 UNOFFICIAL COPY 24 RS HB 15/GA
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under this subsection that is maintained by a covered entity or business 1
associate, or a program or qualified service organization as defined by 42 2
C.F.R. sec. 2.11; 3
(i) Information used only for public health activities and purposes as 4
authorized by HIPAA; 5
(j) The collection, maintenance, disclosure, sale, communication, or use of any 6
personal information bearing on a consumer's creditworthiness, credit 7
standing, credit capacity, character, general reputation, personal 8
characteristics, or mode of living by a consumer reporting agency, 9
furnisher, or user that provides information for use in a consumer report, 10
and by a user of a consumer report, but only to the extent that such activity 11
is regulated by and authorized under the federal Fair Credit Reporting Act, 12
15 U.S.C. sec. 1681 et seq.; 13
(k) Personal data collected, processed, sold, or disclosed in compliance with the 14
federal Driver's Privacy Protection Act of 1994, 18 U.S.C. sec. 2721 et seq.; 15
(l) Personal data regulated by the federal Family Educational Rights and 16
Privacy Act, 20 U.S.C. sec. 1232g et seq.; 17
(m) Personal data collected, processed, sold, or disclosed in compliance with the 18
federal Farm Credit Act, 12 U.S.C. sec. 2001 et seq.; 19
(n) Data processed or maintained: 20
1. In the course of an individual applying to, employed by, or acting as 21
an agent or independent contractor of a controller, processor, or third 22
party, to the extent that the data is collected and used within the 23
context of that role; 24
2. As the emergency contact information of an individual used for 25
emergency contact purposes; or 26
3. That is necessary to retain to administer benefits for another 27 UNOFFICIAL COPY 24 RS HB 15/GA
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individual relating to the individual under subparagraph 1. of this 1
paragraph and used for the purposes of administering those benefits; 2
(o) Data processed by a utility, an affiliate of a utility, or a holding company 3
system organized specifically for the purpose of providing goods or services 4
to a utility as defined in KRS 278.010. For purposes of this paragraph, 5
"holding company system" means two (2) or more affiliated persons, one 6
(1) or more of which is a utility; and 7
(p) Personal data collected and used for purposes of federal policy under the 8
Combat Methamphetamine Epidemic Act of 2005. 9
(4) Controllers and processors that comply with the verifiable parental consent 10
requirements of the Children's Online Privacy Protection Act, 15 U.S.C. sec. 11
6501 et seq., shall be deemed compliant with any obligation to obtain parental 12
consent under Sections 1 to 10 of this Act. 13
SECTION 3. A NEW SECTION OF KRS CHAPTER 367 IS CREATED TO 14
READ AS FOLLOWS: 15
(1) A consumer may invoke the consumer rights authorized pursuant to this section 16
at any time by submitting a request to a controller, via the means specified by the 17
controller pursuant to Section 4 of this Act, specifying the consumer rights the 18
consumer wishes to invoke. A child's parent or legal guardian may invoke such 19
consumer rights on behalf of the child regarding processing personal data 20
belonging to the child. 21
(2) A controller shall comply with an authenticated consumer request to exercise the 22
right to: 23
(a) Confirm whether or not a controller is processing the consumer's personal 24
data and to access the personal data, unless the confirmation and access 25
would require the controller to reveal a trade secret; 26
(b) Correct inaccuracies in the consumer's personal data, taking into account 27 UNOFFICIAL COPY 24 RS HB 15/GA
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the nature of the personal data and the purposes of processing the data; 1
(c) Delete personal data provided by or obtained about the consumer; 2
(d) Obtain a copy of the consumer's personal data that the consumer previously 3
provided to the controller in a portable and, to the extent technically 4
practicable, readily usable format that allows the consumer to transmit the 5
data to another controller without hindrance, where the processing is 6
carried out by automated means. The controller shall not be required to 7
reveal any trade secrets; and 8
(e) To opt out of the processing of personal data for purposes of targeted 9
advertising, the sale of personal data, or profiling in furtherance of 10
decisions that produce legal or similarly significant effects concerning the 11
consumer. 12
(3) Except as otherwise provided in Sections 1 to 10 of this Act, a controller shall 13
comply with a request by a consumer to exercise the consumer rights pursuant to 14
this section as follows: 15
(a) A controller shall respond to the consumer without undue delay, but in all 16
cases within forty-five (45) days of receipt of the request submitted pursuant 17
to the methods described in this section. The response period may be 18
extended once by forty-five (45) additional days when reasonably necessary, 19
taking into consideration the complexity and number of the consumer's 20
requests, so long as the controller informs the consumer of any extension 21
within the initial forty-five (45) day response period, together with the 22
reason for the extension; 23
(b) If a controller declines to take action regarding the consumer's request, the 24
controller shall inform the consumer without undue delay, but no later than 25
forty-five (45) days after receipt of the request, of the justification for 26
declining to take action and instructions on how to appeal the decision; 27 UNOFFICIAL COPY 24 RS HB 15/GA
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(c) Information provided in response to a consumer request shall be provided 1
by a controller free of charge, up to twice annually per consumer. If 2
requests from a consumer are excessive, repetitive, technically infeasible, or 3
manifestly unfounded, the controller may charge the consumer a 4
reasonable fee to cover the administrative costs of complying with the 5
request or decline to act on the request. The controller bears the burden of 6
demonstrating the excessive, repetitive, technically infeasible, or manifestly 7
unfounded nature of the request; 8
(d) If a controller is unable to authenticate the request using commercially 9
reasonable efforts, the controller shall not be required to comply with a 10
request to initiate an action under subsection (1) of this section and may 11
request that the consumer provide additional information reasonably 12
necessary to authenticate the consumer and the consumer's request; and 13
(e) A controller that has obtained personal data about a consumer from a 14
source other than the consumer shall be deemed in compliance with a 15
consumer's request to delete such data pursuant to subsection (2)(c) of this 16
section by: 17
1. Retaining a record of the deletion request and the minimum data 18
necessary for the purpose of ensuring the consumer's personal data 19
remains deleted from the business' records and not using the retained 20
data for any other purpose pursuant to the provisions of Sections 1 to 21
10 of this Act; or 22
2. Opting the consumer out of the processing of the personal data for 23
any purpose except for those exempted pursuant to Section 2 of this 24
Act. 25
(4) A controller shall establish a process for a consumer to appeal the controller's 26
refusal to take action on a request within a reasonable period of time after the 27 UNOFFICIAL COPY 24 RS HB 15/GA
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consumer's receipt of the decision pursuant to subsection (3)(b) of this section. 1
The appeal process shall be conspicuously available and similar to the process for 2
submitting requests to initiate action pursuant to this section. Within sixty (60) 3
days of receipt of an appeal, a controller shall inform the consumer in writing of 4
any action taken or not taken in response to the appeal, including a written 5
explanation of the reasons for the decisions. If the appeal is denied, the controller 6
shall also provide the consumer with an online mechanism, if available, or other 7
method through which the consumer may contact the Attorney General to submit 8
a complaint. 9
SECTION 4. A NEW SECTION OF KRS CHAPTER 367 IS CREATED TO 10
READ AS FOLLOWS: 11
(1) A controller shall: 12
(a) Limit the collection of personal data to what is adequate, relevant, and 13
reasonably necessary in relation to the purposes for which the data is 14
processed as disclosed to the consumer; 15
(b) Except as otherwise provided in this section, not process personal data for 16
purposes that are neither reasonably necessary to nor compatible with the 17
disclosed purposes for which the personal data is processed as disclosed to 18
the consumer, unless the controller obtains the consumer's consent; 19
(c) Establish, implement, and maintain reasonable administrative, technical, 20
and physical data security practices to protect the confidentiality, integrity, 21
and accessibility of personal data. The data security practices shall be 22
appropriate to the volume and nature of the personal data at issue; 23
(d) Not process personal data in violation of state and federal laws that prohibit 24
unlawful discrimination against consumers. A controller shall not 25
discriminate against a consumer for exercising any of the consumer rights 26
contained in Section 3 of this Act, including denying goods or services, 27 UNOFFICIAL COPY 24 RS HB 15/GA
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charging different prices or rates for goods or services, or providing a 1
different level of quality of goods and services to the consumer. However, 2
nothing in this paragraph shall be construed to require a controller to 3
provide a product or service that requires the personal data of a consumer 4
that the controller does not collect or maintain, or to prohibit a controller 5
from offering a different price, rate, level, quality, or selection of goods or 6
services to a consumer, including offering goods or services for no fee, if 7
the offer is related to a consumer's voluntary participation in a bona fide 8
loyalty, rewards, premium features, discounts, or club card program; and 9
(e) Not process sensitive data concerning a consumer without obtaining the 10
consumer's consent, or, in the case of the processing of sensitive data 11
collected from a known child, process the data in accordance with the 12
federal Children's Online Privacy Protection Act 15 U.S.C. sec. 6501 et seq. 13
(2) Any provision of a contract or agreement of any kind that purports to waive or 14
limit in any way consumer rights pursuant to Section 3 of this Act shall be 15
deemed contrary to public policy and shall be void and unenforceable. 16
(3) Controllers shall provide consumers with a reasonably accessible, clear, and 17
meaningful privacy notice that includes: 18
(a) The categories of personal data processed by the controller; 19
(b) The purpose for processing personal data; 20
(c) How consumers may exercise their consumer rights pursuant to Section 3 21
of this Act, including how a consumer may appeal a controller's decision 22
with regard to the consumer's request; 23
(d) The categories of personal data that the controller shares with third parties, 24
if any; and 25
(e) The categories of third parties, if any, with whom the controller shares 26
personal data. 27 UNOFFICIAL COPY 24 RS HB 15/GA
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(4) If a controller sells personal data to third parties or processes personal data for 1
targeted advertising, the controller shall clearly and conspicuously disclose such 2
activity, as well as the manner in which a consumer may exercise the right to opt 3
out of processing. 4
(5) A controller shall establish, and shall describe in a privacy notice, one (1) or 5
more secure and reliable means for consumers to submit a request to exercise 6
their consumer rights under Section 3 of this Act. The different ways to submit a 7
request by a consumer shall take into account the ways in which consumers 8
normally interact with the controller, the need for secure and reliable 9
communication of such requests, and the ability of the controller to authenticate 10
the identity of the consumer making the request. Controllers shall not require a 11
consumer to create a new account in order to exercise consumer rights pursuant 12
to Section 3 of this Act but may require a consumer to use an existing account. 13
SECTION 5. A NEW SECTION OF KRS CHAPTER 367 IS CREATED TO 14
READ AS FOLLOWS: 15
(1) A processor shall adhere to the instructions of a controller and shall assist the 16
controller in meeting its obligations under Sections 1 to 10 of this Act. Such 17
assistance shall include: 18
(a) Taking into account the nature of processing and the information available 19
to the processor, by appropriate technical and organizational measures, 20
insofar as this is reasonably practicable, to fulfill the controller's obligation 21
to respond to consumer rights requests pursuant to Section 3 of this Act; 22
(b) Taking into account the nature of processing and the information available 23
to the processor, by assisting the controller in meeting the controller's 24
obligations in relation to the security of processing the personal data and in 25
relation to the notification of a breach of the security of the system of the 26
processor pursuant to KRS 365.732; and 27 UNOFFICIAL COPY 24 RS HB 15/GA
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(c) Providing necessary information to enable the controller to conduct and 1
document data protection assessments pursuant to Section 6 of this Act. 2
(2) A contract between a controller and a processor shall govern the processor's data 3
processing procedures with respect to processing performed on behalf of the 4
controller. The contract shall be binding and shall clearly set forth instructions 5
for processing personal data, the nature and purpose of processing, the type of 6
data subject to processing, the duration of processing, and the rights and 7
obligations of both parties. The contract shall also include requirements that the 8
processor shall: 9
(a) Ensure that each person processing personal data is subject to a duty of 10
confidentiality with respect to the data; 11
(b) At the controller's direction, delete or return all personal data to the 12
controller as requested at the end of the provision of services, unless 13
retention of the personal data is required by law; 14
(c) Upon the reasonable request of the controller, make available to the 15
controller all information in its possession necessary to demonstrate the 16
processor's compliance with the obligations prescribed in Sections 1 to 10 of 17
this Act; 18
(d) Allow, and cooperate with, reasonable assessments by the controller or the 19
controller's designated assessor. Alternatively, the processor may arrange 20
for a qualified and independent assessor to conduct an assessment of the 21
processor's policies and technical and organizational measures in support 22
of the obligations in Sections 1 to 10 of this Act using an appropriate and 23
accepted control standard or framework and assessment procedure for 24
assessments. The processor shall provide a report of the assessment to the 25
controller upon request; and 26
(e) Engage any subcontractor pursuant to a written contract in accordance 27 UNOFFICIAL COPY 24 RS HB 15/GA
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with this section that requires the subcontractor to meet the obligations of 1
the processor with respect to the personal data. 2
(3) Nothing in this section shall be construed to relieve a controller or processor 3
from the liabilities imposed on it by virtue of its role in a processing relationship 4
as defined by Sections 1 to 10 of this Act. 5
(4) Determining whether a person is acting as a controller or processor with respect 6
to a specific processing of data is a fact-based determination that depends upon 7
the context in which personal data is to be processed. A processor that continues 8
to adhere to a controller's instructions with respect to a specific processing of 9
personal data remains a processor. 10
SECTION 6. A NEW SECTION OF KRS CHAPTER 367 IS CREATED TO 11
READ AS FOLLOWS: 12
(1) Controllers shall conduct and document a data protection impact assessment of 13
each of the following processing activities involving personal data: 14
(a) The processing of personal data for the purposes of targeted advertising; 15
(b) The processing of personal data for the purposes of selling of personal data; 16
(c) The processing of personal data for the purposes of profiling, where the 17
profiling presents a reasonably foreseeable risk of: 18
1. Unfair or deceptive treatment of consumers or disparate impact on 19
consumers; 20
2. Financial, physical, or reputational injury to consumers; 21
3. A physical or other intrusion upon the solitude or seclusion, or the 22
private affairs or concerns, of consumers, where an intrusion would 23
be offensive to a reasonable person; or 24
4. Other substantial injury to consumers; 25
(d) The processing of sensitive data; and 26
(e) Any processing of personal data that presents a heightened risk of harm to 27 UNOFFICIAL COPY 24 RS HB 15/GA
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consumers. 1
(2) Data protection impact assessments conducted under this section shall identify 2
and weigh the benefits that may flow, directly and indirectly, from the processing 3
to the controller, the consumer, other stakeholders, and the public against the 4
potential risks to the rights of the consumer associated with such processing, as 5
mitigated by safeguards that can be employed by the controller to reduce such 6
risk. The use of de-identified data and the reasonable expectations of consumers, 7
as well as the context of the processing of personal data and the relationship 8
between the controller and the consumer whose personal data will be processed, 9
shall be factored into this assessment by the controller. 10
(3) The Attorney General may request, pursuant to an investigative demand, that a 11
controller disclose any data protection impact assessment that is relevant to an 12
investigation conducted by the Attorney General, and the controller shall make 13
the data protection impact assessment available to the Attorney General. The 14
Attorney General may evaluate the data protection impact assessments for 15
compliance with the requirements of Sections 1 to 10 of this Act. 16
(4) Data protection impact assessments are confidential and exempt from disclosure, 17
public inspection, and copying under KRS 61.870 to KRS 61.884. 18
(5) The disclosure of a data protection impact assessment pursuant to a request from 19
the Attorney General under subsection (3) of this section does not constitute a 20
waiver of the attorney-client privilege or work product protection with respect to 21
the assessment and any information contained in the assessment. 22
(6) A single data protection assessment may address a comparable set of processing 23
operations that include similar activities. 24
(7) Data protection assessments conducted by a controller for the purpose of 25
compliance with other laws or regulations may comply under this section if the 26
assessments have a reasonably comparable scope and effect. 27 UNOFFICIAL COPY 24 RS HB 15/GA
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(8) Data protection assessment requirements shall apply to processing activities 1
created or generated on or after June 1, 2026. 2
SECTION 7. A NEW SECTION OF KRS CHAPTER 367 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) The controller in possession of de-identified data shall: 5
(a) Take reasonable measures to ensure the data cannot be associated with a 6
natural person; 7
(b) Publicly commit to maintaining and using de-identified data without 8
attempting to re-identify the data; and 9
(c) Contractually obligate any recipients of the de-identified data to comply 10
with all provisions of Sections 1 to 10 of this Act. 11
(2) Nothing in Sections 1 to 10 of this Act shall be construed to require a controller 12
or processor to: 13
(a) Re-identify de-identified data or pseudonymous data; or 14
(b) Maintain data in identifiable form, or collect, obtain, retain, or access any 15
data or technology, in order to be capable of associating an authenticated 16
consumer request with personal data. 17
(3) Nothing in Sections 1 to 10 of this Act shall be construed to require a controller 18
or processor to comply with an authenticated consumer rights request pursuant to 19
Section 3 of this Act if: 20
(a) The controller is not reasonably capable of associating the request with the 21
personal data or it would be unreasonably burdensome for the controller to 22
associate the request with the personal data; 23
(b) The controller does not use the personal data to recognize or respond to the 24
specific consumer who is the subject of the personal data, or associate the 25
personal data with other personal data about the same specific consumer; 26
and 27 UNOFFICIAL COPY 24 RS HB 15/GA
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(c) The controller does not sell the personal data to any third party or otherwise 1
voluntarily disclose the personal data to any third party other than a 2
processor, except as otherwise permitted in this section. 3
(4) The consumer rights contained in Section 3 of this Act shall not apply to 4
pseudonymous data in cases where the controller is able to demonstrate any 5
information necessary to identify the consumer is kept separately and is subject to 6
appropriate technical and organizational measures to ensure that the personal 7
data is not attributed to an identified or identifiable natural person. 8
(5) A controller that discloses pseudonymous data or de-identified data shall exercise 9
reasonable oversight to monitor compliance with any contractual commitments to 10
which the pseudonymous data or de-identified data is subject and shall take 11
appropriate steps to address any breaches of those contractual commitments. 12
SECTION 8. A NEW SECTION OF KRS CHAPTER 367 IS CREATED TO 13
READ AS FOLLOWS: 14
(1) Nothing in Sections 1 to 10 of this Act shall be construed to restrict a controller's 15
or processor's ability to: 16
(a) Comply with federal, state, or local laws or regulations; 17
(b) Comply with a civil, criminal, or regulatory inquiry, investigation, 18
subpoena, or summons by federal, state, local, or other governmental 19
authorities; 20
(c) Cooperate with law enforcement agencies concerning conduct or activity 21
that the controller or processor reasonably and in good faith believes may 22
violate federal, state, or local laws, rules, or regulations; 23
(d) Investigate, establish, exercise, prepare for, or defend legal claims; 24
(e) Provide a product or service specifically requested by a consumer or a 25
parent or guardian of a known child; 26
(f) Perform a contract to which the consumer or parent or guardian of a 27 UNOFFICIAL COPY 24 RS HB 15/GA
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known child is a party, including fulfilling the terms of a written warranty; 1
(g) Take steps at the request of the consumer or parent or guardian of a known 2
child prior to entering into a contract; 3
(h) Take immediate steps to protect an interest that is essential for the life or 4
physical safety of the consumer or of another natural person, and where the 5
processing cannot be manifestly based on another legal basis; 6
(i) Prevent, detect, protect against, or respond to security incidents, identity 7
theft, fraud, harassment, malicious or deceptive activities, or any illegal 8
activity; preserve the integrity or security of systems; or investigate, report, 9
or prosecute those responsible for any such action; 10
(j) Engage in public or peer-reviewed scientific or statistical research in the 11
public interest that adheres to all other applicable ethics and privacy laws 12
and is approved, monitored, and governed by an institutional review board, 13
or similar independent oversight entities that determine: 14
1. If the deletion of the information is likely to provide substantial 15
benefits that do not exclusively accrue to the controller; 16
2. The expected benefits of the research outweigh the privacy risks; and 17
3. If the controller has implemented reasonable safeguards to mitigate 18
privacy risks associated with research, including any risks associated 19
with re-identification; or 20
(k) Assist another controller, processor, or third party with any of the 21
obligations under this subsection. 22
(2) The obligations imposed on controllers or processors under Sections 1 to 10 of 23
this Act shall not restrict a controller's or processor's ability to collect, use, or 24
retain data to: 25
(a) Conduct internal research to develop, improve, or repair products, services, 26
or technology; 27 UNOFFICIAL COPY 24 RS HB 15/GA
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(b) Effectuate a product recall; 1
(c) Identify and repair technical errors that impair existing or intended 2
functionality; or 3
(d) Perform internal operations that are reasonably aligned with the 4
expectations of the consumer or reasonably anticipated based on the 5
consumer's existing relationship with the controller or are otherwise 6
compatible with processing data in furtherance of the provision of a product 7
or service specifically requested by a consumer or a parent or guardian of a 8
known child or the performance of a contract to which the consumer or a 9
parent or guardian of a known child is a party. 10
(3) The obligations imposed on controllers or processors under Sections 1 to 10 of 11
this Act shall not apply to a controller or processor if compliance under Sections 12
1 to 10 of this Act would violate an evidentiary privilege under the laws of this 13
Commonwealth. Nothing in Sections 1 to 10 of this Act shall be construed to 14
prevent a controller or processor from providing personal data concerning a 15
consumer to a person covered by an evidentiary privilege under the laws of this 16
Commonwealth as part of a privileged communication. 17
(4) A controller or processor that discloses personal data to a third-party controller 18
or processor, in compliance with the requirements of Sections 1 to 10 of this Act, 19
is not in violation of Sections 1 to 10 of this Act if the third-party controller or 20
processor that receives and processes such personal data is in violation of 21
Sections 1 to 10 of this Act, provided that, at the time of disclosing the personal 22
data, the disclosing controller or processor did not have actual knowledge that the 23
recipient intended to commit a violation. A third-party controller or processor 24
receiving personal data from a controller or processor in compliance with the 25
requirements of Sections 1 to 10 of this Act is likewise not in violation of Sections 26
1 to 10 of this Act for the transgressions of the controller or processor from which 27 UNOFFICIAL COPY 24 RS HB 15/GA
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it receives such personal data. 1
(5) Nothing in Sections 1 to 10 of this Act shall be construed as an obligation 2
imposed on controllers and processors that adversely affects the privacy or other 3
rights or freedoms of any persons, including but not limited to the right of free 4
speech pursuant to the First Amendment to the United States Constitution, or 5
applies to personal data by a person in the course of a purely personal or 6
household activity. 7
(6) Personal data processed by a controller pursuant to this section shall not be 8
processed for any purpose other than those expressly listed in this section unless 9
otherwise allowed by Sections 1 to 10 of this Act. Personal data processed by a 10
controller pursuant to this section may be processed to the extent that such 11
processing is: 12
(a) Reasonably necessary and proportionate to the purposes listed in this 13
section; and 14
(b) Adequate, relevant, and limited to what is necessary in relation to the 15
specific purposes listed in this section. Personal data collected, used, or 16
retained pursuant to subsection (2) of this section shall, where applicable, 17
take into account the nature and purpose or purposes of such collection, 18
use, or retention. The data shall be subject to reasonable administrative, 19
technical, and physical measures to protect the confidentiality, integrity, 20
and accessibility of personal data and to reduce reasonably foreseeable risks 21
of harm to consumers relating to the collection, use, or retention of 22
personal data. 23
(7) If a controller processes personal data pursuant to an exemption in this section, 24
the controller bears the burden of demonstrating that such processing qualifies 25
for the exemption and complies with the requirements in this section. 26
(8) Processing personal data for the purposes expressly identified in subsection (1) of 27 UNOFFICIAL COPY 24 RS HB 15/GA
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this section shall not by itself make an entity a controller with respect to such 1
processing. 2
SECTION 9. A NEW SECTION OF KRS CHAPTER 367 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) The Attorney General shall have exclusive authority to enforce violations of 5
Sections 1 to 10 of this Act. The Attorney General may enforce Sections 1 to 10 of 6
this Act by bringing an action in the name of the Commonwealth of Kentucky or 7
on behalf of persons residing in this Commonwealth. The Attorney General shall 8
have all powers and duties granted to the Attorney General under KRS Chapter 9
15 to investigate and prosecute any violation of Sections 1 to 10 of this Act. The 10
Attorney General may demand any information, documentary material, or 11
physical evidence from any controller or processor believed to be engaged in, or 12
about to engage in, any violation of Sections 1 to 10 of this Act. 13
(2) Prior to initiating any action for violation of Sections 1 to 10 of this Act, the 14
Attorney General shall provide a controller or processor thirty (30) days' written 15
notice identifying the specific provisions of Sections 1 to 10 of this Act, the 16
Attorney General alleges have been or are being violated. If within the thirty (30) 17
days the controller or processor cures the noticed violation and provides the 18
Attorney General an express written statement that the alleged violations have 19
been cured and that no further violations shall occur, no action for damages 20
under subsection (3) of this section shall be initiated against the controller or 21
processor. 22
(3) If a controller or processor continues to violate Sections 1 to 10 of this Act 23
following the cure period in subsection (2) of this section or breaches an express 24
written statement provided to the Attorney General under subsection (2) of this 25
section, the Attorney General may initiate an action and seek damages for up to 26
seven thousand five hundred dollars ($7,500) for each continued violation under 27 UNOFFICIAL COPY 24 RS HB 15/GA
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Sections 1 to 10 of this Act. 1
(4) Nothing in Sections 1 to 10 of this Act or any other law, regulation, or the 2
equivalent shall be construed as providing the basis for, or give rise to, a private 3
right of action for violations of Sections 1 to 10 of this Act. 4
(5) The Attorney General may recover reasonable expenses incurred in investigating 5
and preparing the case, court costs, attorney's fees, and any other relief ordered 6
by the court of any action initiated under Sections 1 to 10 of this Act. 7
SECTION 10. A NEW SECTION OF KRS CHAPTER 367 IS CREATED TO 8
READ AS FOLLOWS: 9
There is hereby created a trust and agency account to be known as the consumer 10
privacy fund. The fund shall be administered by the Office of the Attorney General. All 11
civil penalties collected pursuant to Sections 1 to 10 of this Act shall be deposited into 12
the fund. Interest earned on moneys in the fund shall accrue to the fund. Moneys in 13
the fund shall be used by the Office of the Attorney General to enforce Sections 1 to 10 14
of this Act. Notwithstanding KRS 45.229, any moneys remaining in the fund at the 15
close of the fiscal year shall not lapse but shall be carried forward into the succeeding 16
fiscal year to be used by the Office of the Attorney General for the purposes set forth in 17
Sections 1 to 10 of this Act. 18
Section 11. This Act takes effect January 1, 2026. 19