Maryland 2023 Regular Session

Maryland Senate Bill SB698 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0698
6	6
7	7	SENATE BILL 698
8	8	I3 3lr1613
9	9	CF HB 807
10	10	By: Senator Augustine
11	11	Introduced and read first time: February 6, 2023
12	12	Assigned to: Finance
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Consumer Protection – Online and Biometric Data Privacy 2
19	19
20	20	FOR the purpose of regulating the manner in which a controller or a processor in possession 3
21	21	of a consumer’s personal data may process the consumer’s personal data; authorizing 4
22	22	a consumer to exercise certain rights in regards to the consumer’s personal data; 5
23	23	requiring a controller of personal data to establish a method for a consumer to 6
24	24	exercise certain rights in regards to the consumer’s personal data; requiring a 7
25	25	controller to comply with a request by a consumer to exercise a certain right in a 8
26	26	certain manner, except under certain circumstances; authorizing a consumer to 9
27	27	designate an authorized agent to act on the consumer’s behalf to opt out of the 10
28	28	processing of the consumer’s personal data; requiring a controller to provide a 11
29	29	consumer with a certain privacy notice; requiring a controller that uses a processor 12
30	30	to process the personal data of consumers to enter into a contract with the processor 13
31	31	that governs the processor’s data processing procedures; requiring a controller to 14
32	32	conduct and document a data protection assessment for consumer data processing 15
33	33	activities that present a heightened risk of harm to a consumer; regulating the use 16
34	34	of biometric data, including requiring controllers in possession of biometric data to 17
35	35	develop a policy, made available to the public, establishing a retention schedule and 18
36	36	destruction guidelines for biometric data; authorizing an individual alleging a 19
37	37	violation of this Act to bring a civil action against the offending controller under 20
38	38	certain circumstances; making a violation of this Act an unfair, abusive, or deceptive 21
39	39	trade practice that is subject to enforcement and penalties under the Maryland 22
40	40	Consumer Protection Act; establishing the Task Force to Study Online Data Privacy; 23
41	41	and generally relating to online and biometric data privacy. 24
42	42
43	43	BY repealing and reenacting, with amendments, 25
44	44	Article – Commercial Law 26
45	45	Section 13–301(14)(xxxv) and 13–408 27
46	46	Annotated Code of Maryland 28
47	47	(2013 Replacement Volume and 2022 Supplement) 29
48	48	2 SENATE BILL 698
49	49
50	50
51	51	BY repealing and reenacting, without amendments, 1
52	52	Article – Commercial Law 2
53	53	Section 13–301(14)(xxxvi) 3
54	54	Annotated Code of Maryland 4
55	55	(2013 Replacement Volume and 2022 Supplement) 5
56	56
57	57	BY adding to 6
58	58	Article – Commercial Law 7
59	59	Section 13–301(xxxvii); and 14–4501 through 14–4512 to be under the new subtitle 8
60	60	“Subtitle 45. Online and Biometric Data Privacy Act” 9
61	61	Annotated Code of Maryland 10
62	62	(2013 Replacement Volume and 2022 Supplement) 11
63	63
64	64	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
65	65	That the Laws of Maryland read as follows: 13
66	66
67	67	Article – Commercial Law 14
68	68
69	69	13–301. 15
70	70
71	71	Unfair, abusive, or deceptive trade practices include any: 16
72	72
73	73	(14) Violation of a provision of: 17
74	74
75	75	(xxxv) Section 11–210 of the Education Article; [or] 18
76	76
77	77	(xxxvi) Title 14, Subtitle 44 of this article; or 19
78	78
79	79	(XXXVII) TITLE 14, SUBTITLE 45 OF THIS ARTICLE; OR 20
80	80
81	81	13–408. 21
82	82
83	83	(a) In addition to any action by the Division or Attorney General authorized by 22
84	84	this title and any other action otherwise authorized by law, any person may bring an action 23
85	85	to recover for injury or loss sustained by [him] THE PERSON as the result of a practice 24
86	86	prohibited by this title. 25
87	87
88	88	(b) Any person who brings an action to recover for injury or loss under this section 26
89	89	and who is awarded damages may also seek, and the court may award, reasonable 27
90	90	attorney’s fees. 28
91	91
92	92	(c) If it appears to the satisfaction of the court, at any time, that an action is 29
93	93	brought in bad faith or is of a frivolous nature, the court may order the offending party to 30
94	94	pay to the other party reasonable attorney’s fees. 31
95	95	SENATE BILL 698 3
96	96
97	97
98	98	(d) Notwithstanding any other provision of this section, a person may not bring 1
99	99	an action under this section to recover for injuries sustained as a result of the professional 2
100	100	services provided by a health care provider, as defined in § 3–2A–01 of the Courts Article. 3
101	101
102	102	SUBTITLE 45. ONLINE AND BIOMETRIC DATA PRIVACY ACT. 4
103	103
104	104	14–4501. 5
105	105
106	106	(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 6
107	107	INDICATED. 7
108	108
109	109	(B) “AFFILIATE” MEANS A PERSON THAT : 8
110	110
111	111	(1) SHARES COMMON BRANDIN G WITH ANOTHER PERSON; OR 9
112	112
113	113	(2) CONTROLS, IS CONTROLLED BY , OR IS UNDER COMMON C ONTROL 10
114	114	WITH ANOTHER PERSON . 11
115	115
116	116	(C) “AUTHENTICATE ” MEANS TO USE REASONA BLE MEANS TO DETERMI NE 12
117	117	THAT A REQUEST TO EX ERCISE A CONSUMER RI GHT IN ACCORDANCE WI TH § 13
118	118	14–4504 OF THIS SUBTITLE IS BEING MADE BY, OR ON BEHALF OF , AN INDIVIDUAL 14
119	119	WHO IS ENTITLED TO E XERCISE THE CONSUMER RIGHT. 15
120	120
121	121	(D) (1) “BIOMETRIC DATA ” MEANS DATA GENERATED BY AUTOMATIC 16
122	122	MEASUREMENTS OF THE BIOLOGICAL CHARACTER ISTICS OF A CONSUMER THAT ARE 17
123	123	USED TO IDENTIFY A S PECIFIC CONSU MER. 18
124	124
125	125	(2) “BIOMETRIC DATA ” INCLUDES: 19
126	126
127	127	(I) A FINGERPRINT ; 20
128	128
129	129	(II) A VOICE PRINT; 21
130	130
131	131	(III) EYE RETINAS OR IRISES ; 22
132	132
133	133	(IV) BIOMETRIC SCANS CREAT ED FROM PHYSICAL OR DIGITAL 23
134	134	PHOTOGRAPHS ; AND 24
135	135
136	136	(V) ANY OTHER UNIQUE BIOL OGICAL PATTERNS OR 25
137	137	CHARACTERISTI CS. 26
138	138
139	139	(3) “BIOMETRIC DATA ” DOES NOT INCLUDE : 27
140	140
141	141	(I) A PHYSICAL OR DIGITAL PHOTOGRAPH ; 28 4 SENATE BILL 698
142	142
143	143
144	144
145	145	(II) A VIDEO OR AN AUDIO RE CORDING; OR 1
146	146
147	147	(III) INFORMATION COLLECTED , USED, OR STORED FOR HEALTH 2
148	148	CARE TREATMENT , PAYMENT, OR OPERATIONS UNDER THE FEDERAL HEALTH 3
149	149	INSURANCE PORTABILITY AND ACCOUNTABILITY ACT OF 1996. 4
150	150
151	151	(E) “BUSINESS ASSOCIATE ” HAS THE MEANING STAT ED IN THE FEDERAL 5
152	152	HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT OF 1996. 6
153	153
154	154	(F) “CHILD” HAS THE MEANING STAT ED IN THE FEDERAL CHILDREN’S 7
155	155	ONLINE PRIVACY PROTECTION ACT OF 1998. 8
156	156
157	157	(G) “CONFIDENTIAL DATA ” MEANS INFORMATION TH AT CAN BE USED TO 9
158	158	UNIQUELY IDENTIFY A CONSUMER OR A CONSUM ER’S ACCOUNT OR PROPERT Y, 10
159	159	INCLUDING: 11
160	160
161	161	(1) A GENETIC MARKER ; 12
162	162
163	163	(2) GENETIC TESTING INFOR MATION; 13
164	164
165	165	(3) A UNIQUE IDENTIFIER N UMBER TO LOCATE AN A CCOUNT OR 14
166	166	PROPERTY; 15
167	167
168	168	(4) AN ACCOUNT NUMBER ; 16
169	169
170	170	(5) A PERSONAL IDENTIFICAT ION NUMBER; 17
171	171
172	172	(6) A PASSCODE; 18
173	173
174	174	(7) A DRIVER’S LICENSE NUMBER ; AND 19
175	175
176	176	(8) A SOCIAL SECURITY NUMBER . 20
177	177
178	178	(H) (1) “CONSENT” MEANS A SPECIFIC , DISCRETE, FREELY GIVE N, 21
179	179	UNAMBIGUOUS , AND INFORMED AGREEME NT GIVEN BY A CONSUM ER WHO IS NOT 22
180	180	UNDER ANY DURESS OR UNDUE INFLUENCE FROM A CONTROLLER OR PROC ESSOR 23
181	181	TO ALLOW THE PROCESS ING OF THE CONSUMER ’S PERSONAL DATA FOR A 24
182	182	PARTICULAR PURPOSE . 25
183	183
184	184	(2) “CONSENT” INCLUDES: 26
185	185
186	186	(I) A WRITTEN STATEMENT ; 27 SENATE BILL 698 5
187	187
188	188
189	189
190	190	(II) A WRITTEN STATEMENT BY ELECTRONIC MEANS ; 1
191	191
192	192	(III) IN THE CONTEXT OF EMP LOYMENT, A RELEASE EXECUTED 2
193	193	BY AN EMPLOYEE AS A CONDITION OF EMPLOYM ENT; AND 3
194	194
195	195	(IV) ANY OTHER UNAMBIGUOUS AFFIRMATIVE ACTION . 4
196	196
197	197	(3) “CONSENT” DOES NOT INCLUDE: 5
198	198
199	199	(I) ACCEPTANCE OF A GENER AL OR BROAD TERMS OF USE OR 6
200	200	SIMILAR DOCUMENT THA T CONTAINS DESCRIPTI ONS OF PERSONAL DATA 7
201	201	PROCESSING ALONG WIT H OTHER UNRELATED IN FORMATION; 8
202	202
203	203	(II) HOVERING OVER , MUTING, PAUSING, OR CLOSING A PIECE 9
204	204	OF CONTENT; OR 10
205	205
206	206	(III) AGREEMENT OBTAINED TH ROUGH THE USE OF DAR K 11
207	207	PATTERNS. 12
208	208
209	209	(I) “CONTROL” MEANS: 13
210	210
211	211	(1) OWNERSHIP OF , OR THE POWER TO VOTE , MORE THAN 50% OF 14
212	212	THE OUTSTANDING SHAR ES OF ANY CLASS OF V OTING SECURITY OF A COMPANY; 15
213	213
214	214	(2) CONTROL IN ANY MANNER OVER THE ELECTI ON OF A MAJORITY 16
215	215	OF THE DIRECTORS OF A COMPANY OR OF INDI VIDUALS EXERCISING A SIMILAR 17
216	216	FUNCTION; OR 18
217	217
218	218	(3) THE POWER TO EXERCISE CONTROLLING INFLUENC E OVER THE 19
219	219	MANAGEMENT OF A COMP ANY. 20
220	220
221	221	(J) (1) “CONSUMER” MEANS AN INDIVIDUAL WHO IS A RESIDENT OF THE 21
222	222	STATE. 22
223	223
224	224	(2) “CONSUMER” DOES NOT INCLUDE AN INDIVIDUAL ACTING : 23
225	225
226	226	(I) IN A COMMERCIAL OR EM PLOYMENT CONTEXT ; OR 24
227	227
228	228	(II) AS AN EMPLOYEE , AN OWNER, A DIRECTOR, AN OFFICER, OR 25
229	229	A CONTRACTOR OF A CO MPANY, A PARTNERSHIP , A SOLE PROPRIETORSHI P, A 26
230	230	NONPROFIT ORGANIZATION , OR ANY GOVERNMENT AG ENCY WHOSE 27
231	231	COMMUNICATIONS OR TR ANSACTIONS WITH A CO NTROLLER OCCUR ONLY WITHIN 28 6 SENATE BILL 698
232	232
233	233
234	234	THE CONTEXT OF THE I NDIVIDUAL’S ROLE WITH THE COMP ANY, PARTNERSHIP , 1
235	235	SOLE PROPRIETORSHIP , NONPROFIT ORGANIZATI ON, OR GOVERNMENT AGENCY . 2
236	236
237	237	(K) “CONTROLLER” MEANS A PERSON THAT , ALONE OR JOINTLY WIT H 3
238	238	OTHERS, DETERMINES THE PURPO SE AND MEANS OF PROC ESSING PERSONAL DATA . 4
239	239
240	240	(L) “COVERED ENTITY ” HAS THE MEANING STAT ED IN THE FEDERAL 5
241	241	HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT OF 1996. 6
242	242
243	243	(M) (1) “DARK PATTERN ” MEANS A USER INTERFA CE DESIGNED TO 7
244	244	SUBVERT OR IMPAIR , OR MANIPULATE WITH T HE SUBSTANTIAL EFFEC T OF 8
245	245	SUBVERTING OR IMPAIR ING, USER AUTONOMY , DECISION MAKING , OR CHOICE. 9
246	246
247	247	(2) “DARK PATTERN ” INCLUDES ANY PRACTIC E THE FEDERAL 10
248	248	TRADE COMMISSION RE FERS TO AS A “DARK PATTERN ”. 11
249	249
250	250	(N) “DECISIONS THAT PRODUC E LEGAL OR SIMILARLY SIGNIFICANT 12
251	251	EFFECTS CONCERNING T HE CONSUMER ” MEANS DECISIONS MADE BY A 13
252	252	CONTROLLER THAT RESU LT IN THE PROVISION OR DENIAL BY THE CON TROLLER OF: 14
253	253
254	254	(1) FINANCIAL OR LENDING SERVICES; 15
255	255
256	256	(2) HOUSING; 16
257	257
258	258	(3) INSURANCE; 17
259	259
260	260	(4) EDUCATION ENROLLMENT OR OPPORTUNITY ; 18
261	261
262	262	(5) CRIMINAL JUSTICE ; 19
263	263
264	264	(6) EMPLOYMENT OPPORTUNIT IES; 20
265	265
266	266	(7) HEALTH CARE SERVICES ; OR 21
267	267
268	268	(8) ACCESS TO ESSENTIAL G OODS OR SERVICES . 22
269	269
270	270	(O) “DE–IDENTIFIED DATA ” MEANS DATA THAT CANNOT REASONAB LY BE 23
271	271	USED TO INFER INFORM ATION ABOUT, OR OTHERWISE BE LINK ED TO: 24
272	272
273	273	(1) AN IDENTIFIED OR IDEN TIFIABLE INDIVIDUAL ; OR 25
274	274
275	275	(2) A DEVICE LINKED TO AN IDENTIFIED OR IDENTI FIABLE 26
276	276	INDIVIDUAL. 27 SENATE BILL 698 7
277	277
278	278
279	279
280	280	(P) “IDENTIFIED OR IDENTIF IABLE INDIVIDUAL ” MEANS A CONSUMER WHO 1
281	281	CAN READILY BE IDENT IFIED, EITHER DIRECTLY OR I NDIRECTLY. 2
282	282
283	283	(Q) (1) “PERSONAL DATA ” MEANS ANY INFORMATIO N THAT IS LINKED OR 3
284	284	CAN BE REASONABLY LI NKED TO AN IDENTIFIE D OR IDENTIFIABLE IN DIVIDUAL. 4
285	285
286	286	(2) “PERSONAL DATA ” DOES NOT INCLUDE : 5
287	287
288	288	(I) DE–IDENTIFIED DATA ; OR 6
289	289
290	290	(II) PUBLICLY AVAILABLE IN FORMATION. 7
291	291
292	292	(R) (1) “PRECISE GEOLOCATION D ATA” MEANS INFORMATION DE RIVED 8
293	293	FROM TECHNOLOGY THAT CAN PRECISELY AND AC CURATELY IDENTIFY TH E 9
294	294	SPECIFIC LOCATION OF A CONSUMER WITHIN A RADIUS OF 1,750 FEET. 10
295	295
296	296	(2) “PRECISE GEOLOCATION D ATA” INCLUDES GLOBAL POSI TIONING 11
297	297	SYSTEM LEVEL LATITUD E AND LONGITUDE COOR DINATES OR OTHER SIM ILAR 12
298	298	MECHANISMS . 13
299	299
300	300	(3) “PRECISE GEOLOCATION D ATA” DOES NOT INCLUDE : 14
301	301
302	302	(I) THE CONTENT OF COMMUN ICATIONS DATA GENERA TED BY 15
303	303	OR CONNECTED TO AN ADVA NCED UTILITY METERIN G INFRASTRUCTURE SYS TEM; 16
304	304	OR 17
305	305
306	306	(II) EQUIPMENT USED BY A U TILITY COMPANY . 18
307	307
308	308	(S) (1) “PROCESS” MEANS AN OPERATION P ERFORMED BY MANUAL O R 19
309	309	AUTOMATED MEANS ON P ERSONAL DATA . 20
310	310
311	311	(2) “PROCESS” INCLUDES COLLECTING , USING, STORING, 21
312	312	DISCLOSING, ANALYZING, DELETING, OR MODIFYING PERSONA L DATA. 22
313	313
314	314	(T) “PROCESSOR” MEANS A PERSON THAT PROCESSES, STORES, OR 23
315	315	OTHERWISE USES PERSO NAL DATA ON BEHALF O F A CONTROLLER . 24
316	316
317	317	(U) “PROFILING” MEANS AUTOMATED PROC ESSING PERFORMED ON 25
318	318	PERSONAL DATA TO EVALUATE , ANALYZE, OR PREDICT PERSONAL ASPECTS 26
319	319	RELATED TO AN IDENTI FIED OR IDENTIFIABLE INDIVIDUAL’S ECONOMIC SITUATION , 27
320	320	HEALTH, PERSONAL PREFERENCES , INTERESTS, RELIABILITY, BEHAVIOR, 28
321	321	LOCATION, OR MOVEMENTS . 29 8 SENATE BILL 698
322	322
323	323
324	324
325	325	(V) “PROTECTED HEALTH INFO RMATION” HAS THE MEANING STATED IN 1
326	326	THE FEDERAL HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT OF 2
327	327	1996. 3
328	328
329	329	(W) “PUBLICLY AVAILABLE IN FORMATION” MEANS INFORMATION TH AT: 4
330	330
331	331	(1) IS LAWFULLY MADE AVAI LABLE THROUGH : 5
332	332
333	333	(I) FEDERAL, STATE, OR LOCAL GOVERNMENT RECORDS; OR 6
334	334
335	335	(II) WIDELY DISTRIBUTED ME DIA; AND 7
336	336
337	337	(2) A CONTROLLER HAS A REA SONABLE BASIS TO BEL IEVE A 8
338	338	CONSUMER HAS LAWFULL Y MADE AVAILABLE TO THE GENERAL PUBLIC . 9
339	339
340	340	(X) (1) “SALE OF PERSONAL DATA ” MEANS THE EXCHANGE O F PERSONAL 10
341	341	DATA BY A CONTROLLER TO A THIRD PARTY FOR MONETARY OR OTHER VALUABLE 11
342	342	CONSIDERATION . 12
343	343
344	344	(2) “SALE OF PERSONAL DATA ” DOES NOT INCLUDE : 13
345	345
346	346	(I) THE DISCLOSURE OF PER SONAL DATA TO A PROC ESSOR 14
347	347	THAT PROCESSES PERSO NAL DATA ON BEHALF O F A CONTROLLER ; 15
348	348
349	349	(II) THE DISCLOSURE OF PER SONAL DATA TO A THIRD PARTY 16
350	350	FOR PURPOSES OF PROV IDING A PRODUCT OR S ERVICE REQUESTED BY THE 17
351	351	CONSUMER ; 18
352	352
353	353	(III) THE DISCLOSURE OR TRA NSFER OF PERSONAL DA TA TO AN 19
354	354	AFFILIATE OF THE CON TROLLER; 20
355	355
356	356	(IV) THE DISCLOSURE OF PER SONAL DATA WHERE THE 21
357	357	CONSUMER : 22
358	358
359	359	1. DIRECTS THE CONTROLLER TO DIS CLOSE THE 23
360	360	PERSONAL DATA ; OR 24
361	361
362	362	2. INTENTIONALLY USES TH E CONTROLLER TO 25
363	363	INTERACT WITH A THIR D PARTY; 26
364	364
365	365	(V) THE DISCLOSURE OF PER SONAL DATA THAT THE 27
366	366	CONSUMER : 28 SENATE BILL 698 9
367	367
368	368
369	369
370	370	1. INTENTIONALLY MADE AV AILABLE TO THE GENER AL 1
371	371	PUBLIC THROUGH A CHA NNEL OF MASS MEDIA ; AND 2
372	372
373	373	2. DID NOT RESTRICT TO A SPECIFIC AUDIENCE ; OR 3
374	374
375	375	(VI) THE DISCLOSURE OR TRA NSFER OF PERSONAL DA TA TO A 4
376	376	THIRD PARTY AS AN AS SET THAT IS PART OF AN ACTUAL OR PROPOSE D MERGER, 5
377	377	ACQUISITION, BANKRUPTCY , OR OTHER TRANSACTION WHERE TH E THIRD PARTY 6
378	378	ASSUMES CONTROL OF A LL OR PART OF THE CO NTROLLER’S ASSETS. 7
379	379
380	380	(Y) “SENSITIVE DATA ” MEANS PERSONAL DATA OF A CONSUMER , THAT 8
381	381	INCLUDES: 9
382	382
383	383	(1) DATA REVEALING : 10
384	384
385	385	(I) RACIAL OR ETHNIC ORIG IN; 11
386	386
387	387	(II) RELIGIOUS BELIEFS ; 12
388	388
389	389	(III) MENTAL OR PHYSICAL HEALTH COND ITION OR DIAGNOSES ; 13
390	390
391	391	(IV) SEX LIFE; 14
392	392
393	393	(V) SEXUAL ORIENTATION ; OR 15
394	394
395	395	(VI) CITIZENSHIP OR IMMIGR ATION STATUS; 16
396	396
397	397	(2) GENETIC OR BIOMETRIC DATA FOR THE PURPOSE OF UNIQUELY 17
398	398	IDENTIFYING A CONSUM ER; 18
399	399
400	400	(3) PERSONAL DATA COLLECT ED FROM A KNOWN CHILD ; OR 19
401	401
402	402	(4) PRECISE GEOLOCATION D ATA. 20
403	403
404	404	(Z) (1) “TARGETED ADVERTISING ” MEANS DISPLAYING 21
405	405	ADVERTISEMENTS TO A CONSUMER WHERE THE A DVERTISEMENT IS SELE CTED 22
406	406	BASED ON PERSONAL DA TA OBTAINED OR INFER RED FROM THE CONSUME R’S 23
407	407	ACTIVITIES OVER TIME AND ACROSS NONAFFILIATED WEBSITES OR ONLINE 24
408	408	APPLICATIONS IN ORDE R TO PREDICT THE CON SUMER’S PREFERENCES OR 25
409	409	INTERESTS. 26
410	410
411	411	(2) “TARGETED ADVERTISING ” DOES NOT INCLUDE : 27 10 SENATE BILL 698
412	412
413	413
414	414
415	415	(I) ADVERTISEMENTS BASED ON ACTIVITIES WITHIN A 1
416	416	CONTROLLER ’S OWN WEBSITES OR ON LINE APPLICATIONS; 2
417	417
418	418	(II) ADVERTISEMENTS BASED ON THE CONTEXT OF A 3
419	419	CONSUMER ’S SEARCH QUERY OR VI SIT TO A WEBSITE OR ONLINE APPLICATION ; 4
420	420
421	421	(III) ADVERTISEMENTS DIRECT ED TO A CONSUMER IN 5
422	422	RESPONSE TO THE CONS UMER’S REQUEST FOR INFORM ATION OR FEEDBACK ; OR 6
423	423
424	424	(IV) PROCESSING PERSONAL D ATA SOLELY TO MEASUR E OR 7
425	425	REPORT ADVERTISING F REQUENCY, PERFORMANCE , OR REACH. 8
426	426
427	427	(AA) “THIRD PARTY ” MEANS A PERSON OTHER THAN A CONSUMER , A 9
428	428	CONTROLLER , A PROCESSOR , OR AN AFFILIATE OF T HE CONTROLLER OR 10
429	429	PROCESSOR. 11
430	430
431	431	(BB) (1) “TRADE SECRE T” MEANS INFORMATION TH AT: 12
432	432
433	433	(I) DERIVES INDEPENDENT E CONOMIC VALUE , ACTUAL OR 13
434	434	POTENTIAL, FROM NOT BEING GENER ALLY KNOWN TO , AND NOT BEING READIL Y 14
435	435	ASCERTAINABLE BY PRO PER MEANS BY , OTHER PERSONS WHO CO ULD OBTAIN 15
436	436	ECONOMIC VALUE FROM THE INFORMATION ’S DISCLOSURE OR USE ; AND 16
437	437
438	438	(II) IS THE SUBJECT OF EFF ORTS THAT ARE REASON ABLE 17
439	439	UNDER THE CIRCUMSTAN CES TO MAINTAIN THE SECRECY OF THE INFOR MATION. 18
440	440
441	441	(2) “TRADE SECRET ” INCLUDES A FORMULA , PATTERN, 19
442	442	COMPILATION , PROGRAM, DEVICE, METHOD, TECHNIQUE, OR PROCESS. 20
443	443
444	444	14–4502. 21
445	445
446	446	THIS SUBTITLE APPLIES TO A PERSON THAT : 22
447	447
448	448	(1) CONDUCTS BUSINESS IN THE STATE; OR 23
449	449
450	450	(2) (I) PRODUCES SERVICES OR PRODUCTS THAT ARE TA RGETED 24
451	451	TO RESIDENTS OF THE STATE; AND 25
452	452
453	453	(II) DURING THE IMMEDIATEL Y PRECEDING CALENDAR YEAR: 26
454	454
455	455	1. CONTROLLED OR PROCESS ED THE PERSONAL DATA 27
456	456	OF AT LEAST 100,000 CONSUMERS ; OR 28 SENATE BILL 698 11
457	457
458	458
459	459
460	460	2. CONTROLLED OR PROCESS ED THE PERSONAL DATA 1
461	461	OF AT LEAST 25,000 CONSUMERS AND DERIVE D MORE THAN 25% OF ITS GROSS 2
462	462	REVENUE FROM THE SAL E OF PERSONAL DATA . 3
463	463
464	464	14–4503. 4
465	465
466	466	(A) THIS SUBTITLE DOES NOT AP PLY TO: 5
467	467
468	468	(1) A POLITICAL SUBDIVISIO N OR A UNIT OF A POL ITICAL 6
469	469	SUBDIVISION OF THE STATE; 7
470	470
471	471	(2) A STATE COURT , CLERK OF THE COURT , JUDGE, OR 8
472	472	COMMISSIONER ; 9
473	473
474	474	(3) A NATIONAL SECURITIES ASSOCIATION THAT IS REGISTERED 10
475	475	UNDER 15 U.S.C. § 78O–3 OF THE FEDERAL SECURITIES EXCHANGE ACT OF 1934; 11
476	476
477	477	(4) A COVERED ENTITY OR BU SINESS ASSOCIATE ; 12
478	478
479	479	(5) A PERSON THAT CONTROLS OR PROCESSES PERSONA L DATA 13
480	480	SOLELY FOR THE PURPO SE OF COMPLETING A P AYMENT TRANSACTION ; OR 14
481	481
482	482	(6) AN ENTITY, OR AN AFFILIATE OF AN ENTITY, SUBJECT TO AND IN 15
483	483	COMPLIANCE WITH THE FEDERAL GRAMM–LEACH–BLILEY ACT. 16
484	484
485	485	(B) THE FOLLOWING INFORMA TION AND DATA IS EXE MPT FROM THIS 17
486	486	SUBTITLE: 18
487	487
488	488	(1) PROTECTED HEALTH INFO RMATION UNDER THE FE DERAL 19
489	489	HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT OF 1996; 20
490	490
491	491	(2) PATIENT–IDENTIFYING INFORMAT ION FOR PURPOSES OF 42 21
492	492	U.S.C. § 290DD–2; 22
493	493
494	494	(3) IDENTIFIABLE PRIVATE INFORMATION THAT IS USED FOR 23
495	495	PURPOSES OF THE FEDE RAL POLICY FOR THE P ROTECTION OF HUMAN S UBJECTS 24
496	496	UNDER 45 C.F.R. 46; 25
497	497
498	498	(4) IDENTIFIABLE PRI VATE INFORMATION THA T IS OTHERWISE 26
499	499	INFORMATION COLLECTE D AS PART OF HUMAN S UBJECTS RESEARCH IN 27
500	500	ACCORDANCE WITH THE GOOD CLINICAL PRACTI CE GUIDELINES ISSUED BY THE 28 12 SENATE BILL 698
501	501
502	502
503	503	INTERNATIONAL COUNCIL FOR HARMONISATION OF TECHNICAL REQUIREMENTS 1
504	504	FOR PHARMACEUTICALS FOR HUMAN USE; 2
505	505
506	506	(5) INFORMATION COLLECTED AS PART OF A CLINICA L TRIAL 3
507	507	SUBJECT TO THE FEDERAL POLICY FOR THE PROTECTION OF HUMAN SUBJECTS, 4
508	508	ALSO KNOWN AS THE COMMON RULE, IN ACCORDANCE WITH G OOD CLINICAL 5
509	509	PRACTICE GUIDELINES ISSUED BY THE INTERNATIONAL COUNCIL FOR 6
510	510	HARMONISATION OF TECHNICAL REQUIREMENTS FOR PHARMACEUTICALS FOR 7
511	511	HUMAN USE OR IN ACCORDANCE WITH THE HUMAN SUBJE CT PROTECTION 8
512	512	REQUIREMENTS OF THE U.S. FOOD AND DRUG ADMINISTRATION ; 9
513	513
514	514	(6) INFORMATION AND DOCUM ENTS CREATED FOR PUR POSES OF THE 10
515	515	FEDERAL HEALTH CARE QUALITY IMPROVEMENT ACT OF 1986; 11
516	516
517	517	(7) PATIENT SAFETY WORK P RODUCT FOR PURPOSES OF THE 12
518	518	FEDERAL PATIENT SAFETY AND QUALITY IMPROVEMENT ACT OF 2005; 13
519	519
520	520	(8) INFORMATION DERIVED F ROM ANY OF THE HEALT H CARE 14
521	521	RELATED INFORMATION LISTED IN THIS SUBSE CTION THAT IS DE–IDENTIFIED IN 15
522	522	ACCORDANCE WITH THE REQUIREMENTS FOR DE –IDENTIFICATION IN AC CORDANCE 16
523	523	WITH THE FEDERAL HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT 17
524	524	OF 1996; 18
525	525
526	526	(9) INFORMATION ORIGINATI NG FROM AND INTERMIN GLED TO BE 19
527	527	INDISTINGUISHABLE FR OM, OR INFORMATION TREATE D IN THE SAME MANNER AS, 20
528	528	INFORMATION EXEMPT U NDER THIS SUBSECTION THAT IS MAINTAINED B Y A 21
529	529	COVERED ENTITY OR BU SINESS ASSOCIATE , PROGRAM, OR QUALIFIED SERVICE 22
530	530	ORGANIZATION , AS SPECIFIED IN 42 U.S.C. § 290DD–2; 23
531	531
532	532	(10) INFORMATION USED FO R PUBLIC HEALTH ACTI VITIES AND 24
533	533	PURPOSES AS AUTHORIZ ED BY THE FEDERAL HEALTH INSURANCE PORTABILITY 25
534	534	AND ACCOUNTABILITY ACT OF 1996, COMMUNITY HEALTH ACT IVITIES, AND 26
535	535	POPULATION HEALTH AC TIVITIES; 27
536	536
537	537	(11) THE COLLECTION , MAINTENANCE , DISCLOSURE, SALE, 28
538	538	COMMUNIC ATION, OR USE OF PERSONAL I NFORMATION BEARING O N A CONSUMER ’S 29
539	539	CREDITWORTHINESS , CREDIT STANDING , CREDIT CAPACITY , CHARACTER , GENERAL 30
540	540	REPUTATION, PERSONAL CHARACTERIS TICS, OR MODE OF LIVING TO OR FROM A 31
541	541	CONSUMER REPORTING A GENCY IF USE OF THE INFORMATION IS LIMITED BY AND 32
542	542	AUTHORIZED UNDER THE FEDERAL FAIR CREDIT REPORTING ACT; 33
543	543
544	544	(12) PERSONAL DATA COLLECT ED, PROCESSED, SOLD, OR DISCLOSED 34
545	545	IN COMPLIANCE WITH T HE FEDERAL DRIVER’S PRIVACY PROTECTION ACT OF 1994; 35 SENATE BILL 698 13
546	546
547	547
548	548
549	549	(13) PERSONAL DATA REGULAT ED BY THE FEDERAL FAMILY 1
550	550	EDUCATIONAL RIGHTS AND PRIVACY ACT; 2
551	551
552	552	(14) PERSONAL DATA COLLECT ED, PROCESSED, SOLD, OR DISCLOSED 3
553	553	IN COMPLIANCE WITH T HE FEDERAL FARM CREDIT ACT; 4
554	554
555	555	(15) DATA PROCESSED OR MAI NTAINED: 5
556	556
557	557	(I) IN THE COURSE OF AN I NDIVIDUAL APPLYING T O, 6
558	558	EMPLOYED BY , OR ACTING AS AN AGENT OR INDEPENDENT CONTR ACTOR OF A 7
559	559	CONTROLLER , PROCESSOR, OR THIRD PARTY , TO THE EXTENT THAT T HE DATA IS 8
560	560	COLLECTED AND USED W ITHIN THE CONTEXT OF THE ROLE; 9
561	561
562	562	(II) AS THE EMERGENCY CONT ACT INFORMATION OF A 10
563	563	CONSUMER USED FOR EM ERGENCY CONT ACT PURPOSES ; OR 11
564	564
565	565	(III) THAT IS NECESSARY TO RETAIN TO ADMINISTER BENEFITS 12
566	566	FOR ANOTHER INDIVIDU AL RELATING TO THE C ONSUMER WHO IS THE S UBJECT OF 13
567	567	THE INFORMATION UNDE R ITEM (I) OF THIS ITEM AND USE D FOR THE PURPOSES O F 14
568	568	ADMINISTERING THE BE NEFITS; AND 15
569	569
570	570	(16) PERSONAL DATA COLLECT ED, PROCESSED, SOLD, OR DISCLOSED 16
571	571	IN RELATION TO PRICE , ROUTE, OR SERVICE BY AN AIR CARRIER SUBJECT TO T HE 17
572	572	FEDERAL AIRLINE DEREGULATION ACT TO THE EXTENT THI S SUBTITLE IS 18
573	573	PREEMPTED BY THE FED ERAL AIRLINE DEREGULATION ACT. 19
574	574
575	575	14–4504. 20
576	576
577	577	(A) A CONSUMER MAY EXERCIS E THE FOLLOWING RIGH TS IN RELATION TO 21
578	578	THE CONSUMER ’S PERSONAL DATA : 22
579	579
580	580	(1) CONFIRM WHETHER A CON TROLLER IS PROCESSIN G THE 23
581	581	CONSUMER ’S PERSONAL DATA ; 24
582	582
583	583	(2) IF A CONTROLLER IS PR OCESSING A CONSUMER ’S PERSONAL 25
584	584	DATA, ACCESS THE PERSONAL DATA ; 26
585	585
586	586	(3) CORRECT INACCURACIES IN THE CONSUMER ’S PERSONAL DATA ; 27
587	587
588	588	(4) DELETE PERSONAL DATA PROVIDED BY , OR OBTAINED ABOUT , 28
589	589	THE CONSUMER ; 29
590	590	14 SENATE BILL 698
591	591
592	592
593	593	(5) IF THE PROCESSING OF PERSONAL DATA IS DON E BY AUTOMATIC 1
594	594	MEANS, OBTAIN A COPY OF THE CONSUMER ’S PERSONAL DATA PROCES SED BY THE 2
595	595	CONTROLLER IN A PORT ABLE AND, TO THE EXTENT TECHNI CALLY FEASIBLE , 3
596	596	READILY USABLE FORMA T THAT ALLOWS THE CO NSUMER TO EASILY TRA NSMIT THE 4
597	597	DATA TO ANOTHER CONT ROLLER; AND 5
598	598
599	599	(6) OPT OUT OF THE PROCES SING OF PERSONAL DAT A FOR PURPOSES 6
600	600	OF: 7
601	601
602	602	(I) TARGETED ADVERTISING ; 8
603	603
604	604	(II) EXCEPT AS PROVIDED IN § 14–4507(D) OF THIS SUBTITLE , 9
605	605	THE SALE OF PERSONAL DATA; OR 10
606	606
607	607	(III) PROFILING IN FURTHERA NCE OF SOLELY AUTOMA TED 11
608	608	DECISIONS THAT PRODU CE LEGAL OR SIMILARL Y SIGNIFICANT EFFECT S 12
609	609	CONCERNING THE CONSUMER . 13
610	610
611	611	(B) A CONTROLLER SHALL EST ABLISH A SECURE AND RELIABLE METHOD 14
612	612	FOR A CONSUMER TO EX ERCISE A CONSUMER RI GHT UNDER THIS SECTI ON. 15
613	613
614	614	(C) (1) EXCEPT AS OTHERWISE P ROVIDED IN THIS SUBT ITLE, A 16
615	615	CONTROLLER SHALL COM PLY WITH A REQUEST B Y A CONSUMER TO EXERCISE A 17
616	616	CONSUMER RIGHT LISTE D IN THIS SECTION. 18
617	617
618	618	(2) (I) A CONTROLLER SHALL RES POND TO A CONSUMER R EQUEST 19
619	619	NOT LATER THAN 45 DAYS AFTER THE CONTR OLLER RECEIVES THE C ONSUMER 20
620	620	REQUEST. 21
621	621
622	622	(II) A CONTROLLER MAY EXTEN D THE RESPONSE PERIO D BY AN 22
623	623	ADDITIONAL 45 DAYS IF: 23
624	624
625	625	1. IT IS NECESSARY TO CO MPLETE THE REQUEST B ASED 24
626	626	ON THE COMPLEXITY AN D NUMBER OF THE CONS UMER’S REQUESTS; AND 25
627	627
628	628	2. THE CONTROLLER INFORM S THE CONSUMER OF TH E 26
629	629	EXTENSION AND THE RE ASON FOR THE EXTENSI ON WITHIN THE INITIA L 45–DAY 27
630	630	RESPONSE PERIOD . 28
631	631
632	632	(3) (I) IF A CONTROLLER DOES NOT TAKE ACTION REGA RDING A 29
633	633	CONSUMER ’S REQUEST, THE CONTROLLER SHALL : 30
634	634	SENATE BILL 698 15
635	635
636	636
637	637	1. NOTIFY THE CONSUMER T HAT THE CONTROLLER 1
638	638	WILL NOT TAKE ACTION ON THE REQUEST ; AND 2
639	639
640	640	2. PROVIDE THE CONSUMER WITH: 3
641	641
642	642	A. THE JUSTIFICATION FOR DECLINING TO TAKE 4
643	643	ACTION; AND 5
644	644
645	645	B. INSTRUCTIONS FOR HOW TO APPEAL THE DECISI ON. 6
646	646
647	647	(II) THE NOTIFICATION REQU IRED IN SUBPARAGRAPH (I) OF 7
648	648	THIS PARAGRAPH SHALL BE: 8
649	649
650	650	1. SENT TO THE CONSUMER NOT LATER THAN 45 DAYS 9
651	651	AFTER THE CONTRO LLER RECEIVES THE CO NSUMER’S REQUEST; AND 10
652	652
653	653	2. IN WRITING. 11
654	654
655	655	(4) (I) EXCEPT AS PROVIDED IN THIS PARAGRAPH , A CONTROLLER 12
656	656	SHALL PROVIDE A CONS UMER, FREE OF CHARGE , WITH THE INFORMATION THE 13
657	657	CONSUMER REQUESTED . 14
658	658
659	659	(II) A CONTROLLER MAY NOT B E REQUIRED TO PROVIDE A 15
660	660	CONSUMER WITH THE IN FORMATION REQUESTED MORE THAN TWICE DURI NG ANY 16
661	661	CONSECUTIVE 12–MONTH PERIOD . 17
662	662
663	663	(III) 1. IF REQUESTS FROM A CO NSUMER ARE UNFOUNDED , 18
664	664	EXCESSIVE, OR REPETITIVE , A CONTROLLER MAY CHA RGE THE CONSUMER A 19
665	665	REASONABLE FEE TO CO VER THE ADMINISTRATI VE COSTS OF COMPLYIN G WITH THE 20
666	666	REQUEST. 21
667	667
668	668	2. THE CONTROLLER HAS TH E BURDEN OF 22
669	669	DEMONSTRATING THE UN FOUNDED, EXCESSIVE, OR REPETITIVE NATURE OF THE 23
670	670	REQUEST. 24
671	671
672	672	(5) (I) IF A CONTROLLER IS UN ABLE TO AUTHENTICATE A 25
673	673	REQUEST TO EXERCISE A CONSUMER RIGHT AFF ORDED UNDER SUBSECTI ON (A)(1) 26
674	674	THROUGH (5) OF THIS SECTION USIN G COMMERCIALLY REASO NABLE EFFORTS , THE 27
675	675	CONTROLLE R MAY NOT BE REQUIRE D TO COMPLY WITH THE REQUEST. 28
676	676
677	677	(II) IF A CONTROLLER IS NO T ABLE TO AUTHENTICA TE A 29
678	678	REQUEST USING COMMER CIALLY REASONABLE EF FORTS, THE CONTROLLER SHALL 30
679	679	NOTIFY THE CONSUMER THAT THE CONTROLLER IS UNABLE TO AUTHENT ICATE THE 31 16 SENATE BILL 698
680	680
681	681
682	682	REQUEST UNTIL THE CONSUMER PROVIDE S ADDITIONAL INFORMA TION 1
683	683	REASONABLY NECESSARY TO AUTHENTICATE THE CONSUMER AND THE 2
684	684	CONSUMER ’S REQUEST. 3
685	685
686	686	(6) (I) A CONTROLLER IS NOT RE QUIRED TO AUTHENTICA TE AN 4
687	687	OPT–OUT REQUEST UNDER SU BSECTION (A)(6) OF THIS SECTION. 5
688	688
689	689	(II) A CONTROLLER MAY DENY AN OP T–OUT REQUEST UNDER 6
690	690	SUBSECTION (A)(6) OF THIS SECTION IF T HE CONTROLLER HAS A GOOD FAITH, 7
691	691	REASONABLE , AND DOCUMENTED BELIE F THAT THE REQUEST I S FRAUDULENT . 8
692	692
693	693	(III) IF A CONTROLLER DENIE S AN OPT–OUT REQUEST UNDER 9
694	694	SUBSECTION (A)(6) OF THIS SECTION BECAUSE THE CONTROLLER BELIE VES THE 10
695	695	REQUEST IS FRAUDULEN T, THE CONTROLLER SHALL NOTIFY THE PERSON WH O 11
696	696	MADE THE REQUEST : 12
697	697
698	698	1. THAT THE CONTROLLER B ELIEVES THE REQUEST IS 13
699	699	FRAUDULENT ; 14
700	700
701	701	2. WHY THE CONTROLLER BE LIEVES THE REQUEST I S 15
702	702	FRAUDULE NT; AND 16
703	703
704	704	3. THAT THE CONTROLLER W ILL NOT COMPLY WITH THE 17
705	705	REQUEST. 18
706	706
707	707	(7) A CONTROLLER THAT HAS OBTAINED PERSONAL DA TA ABOUT A 19
708	708	CONSUMER FROM A SOUR CE OTHER THAN THE CO NSUMER IS IN COMPLIA NCE WITH 20
709	709	A CONSUMER ’S REQUEST TO DELETE THE DATA IN ACCORDAN CE WITH SUBSECTION 21
710	710	(A)(4) OF THIS SECTION BY : 22
711	711
712	712	(I) RETAINING A RECORD OF THE DELETION REQUEST AND THE 23
713	713	MINIMUM DATA NECESSA RY FOR THE PURPOSE O F ENSURING THE CONSU MER’S 24
714	714	PERSONAL DATA : 25
715	715
716	716	1. REMAINS DELETED FROM THE CONTROLLER ’S 26
717	717	RECORDS; AND 27
718	718
719	719	2. IS NOT BEING USED FOR ANY O THER PURPOSE ; OR 28
720	720
721	721	(II) OPTING THE CONSUMER O UT OF THE PROCESSING OF THE 29
722	722	PERSONAL DATA FOR AN Y PURPOSE EXCEPT FOR THOSE EXEMPTED BY TH IS 30
723	723	SUBTITLE. 31
724	724	SENATE BILL 698 17
725	725
726	726
727	727	(D) (1) A CONTROLLER SHALL EST ABLISH A PROCESS FOR A CONSUMER 1
728	728	TO APPEAL A DECISION MADE UNDER THIS SECTIO N. 2
729	729
730	730	(2) THE APPEAL PROCESS SH ALL: 3
731	731
732	732	(I) BE CONSPICUOUSLY AVAI LABLE TO A CONSUMER ; 4
733	733
734	734	(II) BE SIMILAR TO THE PRO CESS FOR SUBMITTING REQUESTS 5
735	735	TO INITIATE ACTION I N ACCORDANCE WITH TH IS SECTION; AND 6
736	736
737	737	(III) ENSURE THAT A CONSUME R CAN APPEAL A DECISION 7
738	738	WITHIN A REASONABLE TIME AFTER THE CONSU MER RECEIVES THE DEC ISION. 8
739	739
740	740	(3) NOT LATER THAN 60 DAYS AFTER RECEIPT O F AN APPEAL , A 9
741	741	CONTROLLER SHALL INF ORM THE CONSUMER IN WRITING OF ANY ACTIO N TAKEN OR 10
742	742	NOT TAKEN IN RESPONS E TO THE APPEAL, INCLUDING A WRITTEN E XPLANATION OF 11
743	743	THE REASONS FOR THE DECISION. 12
744	744
745	745	(4) IF AN APPEAL IS DENIE D, THE CONTROLLER SHALL PROVIDE THE 13
746	746	CONSUMER WITH AN ONL INE MECHANISM , IF AVAILABLE, THROUGH WHICH THE 14
747	747	CONSUMER MAY CONTACT THE DIVISION TO SUBMIT A COMPLAINT. 15
748	748
749	749	(E) NOTHING IN THIS SUBTI TLE MAY BE CONSTRUED TO REQUIRE A 16
750	750	CONTROLLER OR A PROC ESSOR TO COMPLY WITH AN AUTHENTICATED CON SUMER 17
751	751	REQUEST IF THE CONTR OLLER: 18
752	752
753	753	(1) IS NOT REASONABLY CAP ABLE OF ASSOCIATING THE REQUEST 19
754	754	WITH THE PERSONAL DA TA OR IT WOULD BE UN REASONABLY BURDENSOME FO R THE 20
755	755	CONTROLLER TO ASSOCI ATE THE REQUEST WITH THE PERSONAL DATA ; 21
756	756
757	757	(2) DOES NOT USE THE PERS ONAL DATA TO RECOGNI ZE OR RESPOND 22
758	758	TO THE CONSUMER WHO IS THE SUBJECT OF TH E PERSONAL DATA OR A SSOCIATE 23
759	759	THE PERSONAL DATA WI TH OTHER PERSONAL D ATA ABOUT THE CONSUM ER; AND 24
760	760
761	761	(3) EXCEPT AS OTHERWISE A LLOWED IN THIS SECTI ON, DOES NOT 25
762	762	SELL OR OTHERWISE VO LUNTARILY DISCLOSE T HE PERSONAL DATA TO A THIRD 26
763	763	PARTY. 27
764	764
765	765	(F) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO REQUIRE A 28
766	766	CONTROLLER TO REVEAL A TRADE SECRET. 29
767	767
768	768	14–4505. 30
769	769	18 SENATE BILL 698
770	770
771	771
772	772	(A) NOTHING IN THIS SUBTI TLE MAY BE CONSTRUED TO PROHIBIT A 1
773	773	CONTROLLER OR PROCES SOR FROM: 2
774	774
775	775	(1) COMPLYING WITH FEDERA L, STATE, OR LOCAL LAWS ; 3
776	776
777	777	(2) COMPLYING WITH A CIVI L, CRIMINAL, OR REGULATORY INQUIR Y, 4
778	778	INVESTIGATION , SUBPOENA, OR SUMMONS BY A FEDERAL , STATE, OR LOCAL 5
779	779	AUTHORITY; 6
780	780
781	781	(3) COOPERATING WITH LAW ENFORCEMENT AGENCIES 7
782	782	CONCERNING CONDUCT O R ACTIVITY THAT THE CONTROLLER OR PROCES SOR 8
783	783	REASONABLY AND IN GO OD FAITH BELIEVES MA Y VIOLATE A FEDERAL , STATE, OR 9
784	784	LOCAL LAW; 10
785	785
786	786	(4) INVESTIGATING, ESTABLISHING , EXERCISING, PREPARING FOR , 11
787	787	OR DEFENDING A LEGAL CLAIM; 12
788	788
789	789	(5) PROVIDING A PRODUCT O R SERVICE SPECIFICAL LY REQUESTED 13
790	790	BY A CONSUMER ; 14
791	791
792	792	(6) PERFORMING UNDER A CO NTRACT TO WHICH A CO NSUMER IS A 15
793	793	PARTY, INCLUDING FULFILLING THE TERMS OF A WRITTEN WARRANTY ; 16
794	794
795	795	(7) TAKING STEPS AT THE R EQUEST OF A CONSUMER BEFORE 17
796	796	ENTERING INTO A CONT RACT; 18
797	797
798	798	(8) TAKING IMMEDIATE STEP S TO PROTECT AN INTE REST THAT IS 19
799	799	ESSENTIAL FOR THE LI FE OR PHYSICAL SAFET Y OF A CONSUMER OR A NOTHER 20
800	800	INDIVIDUAL; 21
801	801
802	802	(9) PREVENTING, DETECTING, PROTECTING AGAINST , OR 22
803	803	RESPONDING TO A SECU RITY INCIDENT, IDENTITY THEFT , FRAUD, HARASSMENT , 23
804	804	MALICIOUS OR DECEPTI VE ACTIVITY, OR ANY ILLEGAL ACTIV ITY; 24
805	805
806	806	(10) PRESERVING THE INTEGR ITY OR SECURITY OF A SYSTEM, OR 25
807	807	INVESTIGATING , REPORTING, OR PROSECUTING A PERSON RESPONSIBLE FOR THE 26
808	808	ACTION; 27
809	809
810	810	(11) ENGAGING IN PUBLIC OR PEER–REVIEWED SCIENTIFIC OR 28
811	811	STATISTICAL RESEARCH IN THE PUBLIC INTERE ST THAT: 29
812	812
813	813	(I) ADHERES TO ALL OTHER APPLICABLE ETHICS AN D PRIVACY 30
814	814	LAWS; AND 31 SENATE BILL 698 19
815	815
816	816
817	817
818	818	(II) IS APPROVED , MONITORED , AND GOVERNED BY AN 1
819	819	INSTITUTIONAL REVIEW BOARD, OR A SIMILAR INDEPEN DENT OVERSIGHT ENTIT Y, 2
820	820	THAT DETERMINES WHET HER: 3
821	821
822	822	1. THE DELETION OF THE I NFORMATION IS LIKELY TO 4
823	823	PROVIDE SUBSTANTIAL BENEFITS THAT DO NOT EXCLUSIVELY ACCRUE T O THE 5
824	824	CONTROLLER ; 6
825	825
826	826	2. THE EXPECTED BENEFITS OF THE RESEARCH 7
827	827	OUTWEIGH THE PRIVACY RISKS; AND 8
828	828
829	829	3. THE CONTROLLER HAS IM PLEMENTED REASONABLE 9
830	830	SAFEGUARDS TO MITIGA TE PRIVACY RISKS ASS OCIATED WITH RESEARC H, 10
831	831	INCLUDING ANY RISKS ASSOCIATED WITH RE –IDENTIFICATION ; 11
832	832
833	833	(12) ASSISTING ANOTHER CON TROLLER, PROCESSOR, OR 12
834	834	THIRD PARTY WITH AN OBLIGATION UNDER THI S SUBTITLE; OR 13
835	835
836	836	(13) PROCESSING PERSONAL D ATA FOR REASONS OF P UBLIC 14
837	837	INTEREST IN THE AREA OF PUBLIC HEALTH , COMMUNITY HEALTH , OR POPULATION 15
838	838	HEALTH, IF THE PROCESSING IS : 16
839	839
840	840	(I) SUBJECT TO SUITABLE A ND SPECIFIC MEASURES TO 17
841	841	SAFEGUARD THE RIGHTS OF A CONSUMER WHOSE PERSONAL DATA IS BEI NG 18
842	842	PROCESSED; AND 19
843	843
844	844	(II) UNDER THE RESPONSIBIL ITY OF A PROFESSIONA L SUBJECT 20
845	845	TO CONFIDENTIALITY O BLIGATIONS UNDER FED ERAL, STATE, OR LOCAL LAW. 21
846	846
847	847	(B) THE OBLIGATIONS IMPOS ED ON CONTROLLERS OR PROCESSORS UNDER 22
848	848	THIS SUBTITLE MAY NO T RESTRICT A CONTROL LER’S OR PROCESSOR ’S ABILITY TO 23
849	849	COLLECT, USE, OR RETAIN DATA FOR I NTERNAL USE TO : 24
850	850
851	851	(1) EFFECTUATE A PRODUCT RECALL; 25
852	852
853	853	(2) IDENTIFY AND REPAIR TECHNICAL ERRORS THA T IMPAIR 26
854	854	EXISTING OR INTENDED FUNCTIONALITY ; OR 27
855	855
856	856	(3) PERFORM INTERNAL OPER ATIONS THAT ARE : 28
857	857	20 SENATE BILL 698
858	858
859	859
860	860	(I) REASONABLY ALIGNED WI TH THE EXPECTATIONS OF THE 1
861	861	CONSUMER OR REASONAB LY ANTICIPATED BASED ON THE CONSUMER ’S EXISTING 2
862	862	RELATIONSHIP WITH T HE CONTROLLER ; OR 3
863	863
864	864	(II) OTHERWISE COMPATIBLE WITH PROCESSING DATA IN 4
865	865	FURTHERANCE OF THE P ROVISION OF A PRODUC T OR SERVICE SPECIFI CALLY 5
866	866	REQUESTED BY A CONSU MER OR THE PERFORMAN CE OF A CONTRACT TO WHICH THE 6
867	867	CONSUMER IS A PARTY . 7
868	868
869	869	(C) (1) NOTHING IN THIS SUBTITLE MAY BE CONS TRUED TO PREVENT A 8
870	870	CONTROLLER OR PROCES SOR FROM PROVIDING P ERSONAL DATA ABOUT A 9
871	871	CONSUMER TO A PERSON COVERED BY AN EVIDEN TIARY PRIVILEGE UNDE R THE 10
872	872	LAWS OF THE STATE AS PART OF A PR IVILEGED COMMUNICATI ON. 11
873	873
874	874	(2) AN OBLIGATION IMPOSED ON A CONTROLLER OR A PR OCESSOR 12
875	875	UNDER THIS SUBTITLE DOES NOT APPLY WHERE COMPLIANCE BY THE CO NTROLLER 13
876	876	OR PROCESSOR WITH TH E SUBTITLE WOULD VIO LATE AN EVIDENTIARY PRIVILEGE 14
877	877	UNDER THE LAWS OF TH E STATE. 15
878	878
879	879	(D) NOTHING IN THIS SUBTI TLE MAY BE CONSTRUED TO: 16
880	880
881	881	(1) IMPOSE AN OBLIGATION ON A CONTROLLER OR A PROCESSOR 17
882	882	THAT ADVERSELY AFFEC TS THE RIGHTS OR FRE EDOMS OF ANY PERSON ; OR 18
883	883
884	884	(2) APPLY TO A PERSON ’S PROCESSING OF PERS ONAL DATA IN THE 19
885	885	COURSE OF THE PERSON ’S PERSONAL OR HOUSEH OLD ACTIVITIES. 20
886	886
887	887	(E) IF A CONTROLLE R PROCESSES PERSONAL DATA IN ACCORDANCE W ITH 21
888	888	AN EXEMPTION UNDER T HIS SECTION, THE CONTROLLER SHALL DEMONSTRATE 22
889	889	THAT THE PROCESSING : 23
890	890
891	891	(1) QUALIFIES FOR AN EXEM PTION; AND 24
892	892
893	893	(2) COMPLIES WITH THE REQ UIREMENTS IN SUBSECT ION (F) OF THIS 25
894	894	SECTION. 26
895	895
896	896	(F) (1) PERSONAL DATA PROCESS ED BY A CONTROLLER I N ACCORDANCE 27
897	897	WITH THIS SECTION MA Y BE PROCESSED TO TH E EXTENT THAT THE PR OCESSING IS: 28
898	898
899	899	(I) REASONABLY NECESSARY AND PROPORTIONATE TO THE 29
900	900	PURPOSES LISTED IN T HIS SECTION; AND 30
901	901	SENATE BILL 698 21
902	902
903	903
904	904	(II) ADEQUATE, RELEVANT, AND LIMIT ED TO WHAT IS 1
905	905	NECESSARY IN RELATIO N TO THE SPECIFIC PU RPOSES LISTED IN THI S SECTION. 2
906	906
907	907	(2) PERSONAL DATA COLLECT ED, USED, OR RETAINED IN 3
908	908	ACCORDANCE WITH SUBS ECTION (B) OF THIS SECTION SHAL L: 4
909	909
910	910	(I) WHERE APPROPRIATE , TAKE INTO ACCOUNT TH E NATURE 5
911	911	AND PURPOSE OF THE COLLE CTION, USE, OR RETENTION ; AND 6
912	912
913	913	(II) BE SUBJECT TO REASONA BLE ADMINISTRATIVE , 7
914	914	TECHNICAL, AND PHYSICAL MEASURE S TO: 8
915	915
916	916	1. PROTECT THE CONFIDENT IALITY, INTEGRITY, AND 9
917	917	ACCESSIBILITY OF THE PERSONAL DATA ; AND 10
918	918
919	919	2. REDUCE REASONABLY F ORESEEABLE RISKS OF HARM 11
920	920	TO CONSUMERS RELATIN G TO THE COLLECTION , USE, OR RETENTION OF PERS ONAL 12
921	921	DATA. 13
922	922
923	923	14–4506. 14
924	924
925	925	(A) A CONSUMER MAY DESIGNA TE AN AUTHORIZED AGE NT TO ACT ON THE 15
926	926	CONSUMER ’S BEHALF TO OPT OUT OF THE PROCESSING OF THE CONSUMER ’S 16
927	927	PERSONAL DATA FOR THE PURPOSES SPE CIFIED IN § 14–4504(A) OF THIS SUBTITLE. 17
928	928
929	929	(B) THE CONSUMER MAY DESI GNATE AN AUTHORIZED AGENT BY: 18
930	930
931	931	(1) AN INTERNET LINK OR A BR OWSER SETTING ON A C ONTROLLER ’S 19
932	932	WEBSITE; OR 20
933	933
934	934	(2) A BROWSER EXTENSION OR GLOBAL DEVICE SETTIN G ON A 21
935	935	CONTROLLER ’S WEBSITE INDICATING THE CONSUMER ’S INTENT TO OPT OUT OF THE 22
936	936	PROCESSING. 23
937	937
938	938	(C) A CONTROLLER SHALL COM PLY WITH AN OPT–OUT REQUEST RECEIVED 24
939	939	FROM AN AUTHORIZED A GENT IF THE CONTROLL ER IS ABLE TO VE RIFY, USING 25
940	940	COMMERCIALLY REASONA BLE EFFORTS: 26
941	941
942	942	(1) THE IDENTITY OF THE C ONSUMER; AND 27
943	943
944	944	(2) THE AUTHORIZED AGENT ’S AUTHORITY TO ACT O N THE 28
945	945	CONSUMER ’S BEHALF. 29
946	946	22 SENATE BILL 698
947	947
948	948
949	949	(D) THE FOLLOWING INDIVID UALS MAY EXERCISE TH E CONSUMER RIGHTS 1
950	950	SPECIFIED IN THIS SU BTITLE ON BEHALF OF ANOTHER IND IVIDUAL WITHOUT BEIN G 2
951	951	DESIGNATED AS AN AUT HORIZED AGENT UNDER SUBSECTION (A) OF THIS SECTION: 3
952	952
953	953	(1) THE PARENT OR LEGAL G UARDIAN OF A KNOWN C HILD; 4
954	954
955	955	(2) IF A CONSUMER IS SUBJ ECT TO A GUARDIANSHI P, A 5
956	956	CONSERVATORSHIP , OR ANY OTHER PROTECTIVE ARRANGEME NT, THE GUARDIAN 6
957	957	OR CONSERVATOR OF TH E CONSUMER . 7
958	958
959	959	14–4507. 8
960	960
961	961	(A) A CONTROLLER MAY NOT : 9
962	962
963	963	(1) SELL, LEASE, OR TRADE A CONSUMER ’S BIOMETRIC DATA ; 10
964	964
965	965	(2) EXCEPT AS OTHERWISE P ROVIDED IN THIS SUBT ITLE, UNLESS 11
966	966	THE CONTROLLER OBTAI NS THE CONSUMER’S CONSENT, PROCESS PERSONAL DAT A 12
967	967	FOR A PURPOSE THAT I S NEITHER REASONABLY NECESSARY TO , NOR COMPATIBLE 13
968	968	WITH, THE DISCLOSED PURPOS ES FOR WHICH THE PER SONAL DATA IS PROCES SED, 14
969	969	AS DISCLOSED TO THE CONSUMER ; 15
970	970
971	971	(3) PROCESS SENSITIVE DAT A CONCERNING A CON SUMER WITHOUT 16
972	972	OBTAINING THE CONSUM ER’S CONSENT; 17
973	973
974	974	(4) PROCESS SENSITIVE DAT A OF A KNOWN CHILD W ITHOUT 18
975	975	PROCESSING THE DATA IN ACCORDANCE WITH T HE FEDERAL CHILDREN’S ONLINE 19
976	976	PRIVACY PROTECTION ACT OF 1998; 20
977	977
978	978	(5) PROCESS PERSONAL DATA IN VIOLATION OF FEDE RAL, STATE, OR 21
979	979	LOCAL LAW THAT PROHI BITS UNLAWFUL DISCRI MINATION AGAINST A C ONSUMER; 22
980	980	OR 23
981	981
982	982	(6) PROCESS THE PERSONAL DATA OF A CONSUMER T HAT THE 24
983	983	PROCESSOR KNOWS IS A T LEAST 13 YEARS OLD AND UNDER THE AGE OF 16 YEARS 25
984	984	WITHOUT THE CONSUMER ’S CONSENT FOR PURPOS ES OF: 26
985	985
986	986	(I) TARGETED ADVERTISING ; OR 27
987	987
988	988	(II) SELLING THE CONSUMER ’S PERSONAL DATA . 28
989	989
990	990	(B) A CONTROLLER SHALL : 29
991	991	SENATE BILL 698 23
992	992
993	993
994	994	(1) LIMIT THE COLLECTION OF PERSONAL DATA TO WHAT IS: 1
995	995
996	996	(I) ADEQUATE, RELEVANT, AND REASONABLY NECES SARY TO 2
997	997	COLLECT FOR THE PURP OSES FOR WHICH THE D ATA IS PROCESSED ; AND 3
998	998
999	999	(II) DISCLOSED TO THE CONS UMER; 4
1000	1000
1001	1001	(2) ESTABLISH, IMPLEMENT, AND MAINTAIN REASONA BLE 5
1002	1002	ADMINISTRATIVE , TECHNICAL, AND PHYSICAL DATA SE CURITY PR ACTICES TO 6
1003	1003	PROTECT THE CONFIDEN TIALITY, INTEGRITY, AND ACCESSIBILITY OF PERSONAL 7
1004	1004	DATA APPROPRIATE TO THE VOLUME AND NATUR E OF THE PERSONAL DA TA AT 8
1005	1005	ISSUE; 9
1006	1006
1007	1007	(3) PROVIDE AN EFFECTIVE MECHANISM FOR A CONS UMER TO 10
1008	1008	REVOKE THE CONSUMER ’S CONSENT UNDER THIS SECTION THAT IS AT LEAST AS 11
1009	1009	EASY AS THE MECHANIS M BY WHICH THE CONSU MER PROVIDED THE CON SUMER’S 12
1010	1010	CONSENT; AND 13
1011	1011
1012	1012	(4) IF CONSENT IS REVOKED , STOP PROCESSING THE DATA AS SOON 14
1013	1013	AS PRACTICABLE , BUT NOT LATER THAN 15 DAYS AFTER THE RECEI PT OF THE 15
1014	1014	REQUEST. 16
1015	1015
1016	1016	(C) A CONTROLLER IN POSSESSION OF BIOMETRIC DATA SH ALL STORE, 17
1017	1017	TRANSMIT, AND PROTECT FROM DIS CLOSURE ALL BIOMETRI C DATA: 18
1018	1018
1019	1019	(1) USING THE REASONABLE STANDARD OF CARE WIT HIN THE 19
1020	1020	CONTROLLER ’S INDUSTRY; AND 20
1021	1021
1022	1022	(2) IN A MANNER THAT IS A S PROTECTIVE AS OR M ORE PROTECTIVE 21
1023	1023	THAN THE MANNER IN W HICH THE CONTROLLER STORES, TRANSMITS, AND 22
1024	1024	PROTECTS OTHER CONFI DENTIAL OR SENSITIVE DATA. 23
1025	1025
1026	1026	(D) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , A 24
1027	1027	CONTROLLER THAT COLL ECTS BIOMETRIC DATA MAY NOT COLLECT , USE, DISCLOSE, 25
1028	1028	REDISCLOSE, OR OTHERWISE DISSEMI NATE A CONTROLLER ’S BIOMETRIC DATA 26
1029	1029	UNLESS: 27
1030	1030
1031	1031	(I) THE CONTROLLER OR THE CONSUMER ’S AUTHORIZED 28
1032	1032	AGENT GIVES CONSENT TO THE PARTICULAR CA TEGORY OF COLLECTION , USE, 29
1033	1033	DISCLOSURE, REDISCLOSURE , OR DISSEMINATION ; OR 30
1034	1034
1035	1035	(II) THE DISCLOSU RE OR REDISCLOSURE I S REQUIRED: 31
1036	1036	24 SENATE BILL 698
1037	1037
1038	1038
1039	1039	1. BY A VALID WARRANT OR SUBPOENA; 1
1040	1040
1041	1041	2. TO COMPLY WITH FEDERA L, STATE, OR LOCAL LAWS , 2
1042	1042	RULES, OR REGULATIONS ; OR 3
1043	1043
1044	1044	3. TO COOPERATE WITH LAW ENFORCEMENT 4
1045	1045	CONCERNING CONDUCT O R ACTIVITY THAT THE PRIVATE ENTITY OR TH E 5
1046	1046	PROCESSOR REASONABLY AND IN GOOD FAITH BE LIEVES VIOLATES A FE DERAL, 6
1047	1047	STATE, OR LOCAL LAW , RULE, OR REGULATION . 7
1048	1048
1049	1049	(2) (I) A CONTROLLER MAY COLLE CT, USE, DISCLOSE, 8
1050	1050	REDISCLOSE, OR OTHERWISE DISSEMI NATE A CONSUMER ’S BIOMETRIC DATA 9
1051	1051	WITHOUT COMPLYING WI TH PARAGRAPH (1) OF THIS SUBSECTION I F THE 10
1052	1052	CONTROLLER : 11
1053	1053
1054	1054	1. COLLECTS, USES, DISCLOSES, REDISCLOSES, OR 12
1055	1055	OTHERWISE DISSEMINAT ES THE BIOMETRIC DAT A FOR FRAUD PREVENTI ON OR 13
1056	1056	SECURITY PURPOSES ; AND 14
1057	1057
1058	1058	2. SUBJECT TO SUBPARAGRA PH (III) OF THIS 15
1059	1059	PARAGRAPH : 16
1060	1060
1061	1061	A. FOR A CONTROLLER THAT COLLECTS BIOMETRIC 17
1062	1062	DATA AT A PHYSICAL P REMISES, POSTS CONSPICUOUS WR ITTEN NOTICE OF THE 18
1063	1063	COLLECTION OF BIOMET RIC DATA AT EACH POI NT OF ENTRY; AND 19
1064	1064
1065	1065	B. FOR A CONTROLLER THAT COLLECTS BIOMETRIC 20
1066	1066	DATA OF A CONSUMER D URING AN ONLINE EN COUNTER WITH THE CON SUMER, 21
1067	1067	POSTS CONSPICUOUS WR ITTEN NOTICE OF THE COLLECTION OF BIOMET RIC DATA 22
1068	1068	ON THE WEBSITE OF TH E CONTROLLER . 23
1069	1069
1070	1070	(II) 1. THE COLLECTION , USE, DISCLOSURE, 24
1071	1071	REDISCLOSURE , OR OTHER DISSEMINATI ON OF BIOMETRIC DATA UNDER THIS 25
1072	1072	SUBSECTION SHAL L BE DIRECTLY TIED T O THE SERVICES BEING PROVIDED BY THE 26
1073	1073	CONTROLLER . 27
1074	1074
1075	1075	2. A CONTROLLER THAT COLL ECTS, USES, DISCLOSES, 28
1076	1076	REDISCLOSES, OR OTHERWISE DISSEMI NATES BIOMETRIC DATA UNDER THIS 29
1077	1077	SUBSECTION MAY COLLE CT, USE, DISCLOSE, REDISCLOSE, OR OTHERWISE 30
1078	1078	DISSEMINATE ONLY WHAT IS STRICTLY NECESSARY F OR FRAUD PREVENTION AND 31
1079	1079	SECURITY PURPOSES . 32
1080	1080	SENATE BILL 698 25
1081	1081
1082	1082
1083	1083	(III) THE NOTICE REQUIRED I N SUBPARAGRAPH (I) OF THIS 1
1084	1084	PARAGRAPH SHALL INFO RM CONSUMERS OF : 2
1085	1085
1086	1086	1. THE CATEGORIES OF BIO METRIC DATA TO BE 3
1087	1087	COLLECTED; AND 4
1088	1088
1089	1089	2. THE PURPOSES FOR WHICH T HE CATEGORIES OF 5
1090	1090	BIOMETRIC DATA WILL BE USED. 6
1091	1091
1092	1092	(E) A CONTROLLER MAY NOT D ISCRIMINATE AGAINST A CONSUMER FOR 7
1093	1093	EXERCISING A CONSUME R RIGHT AFFORDED BY THIS SUBTITLE, INCLUDING: 8
1094	1094
1095	1095	(1) DENYING GOODS OR SERV ICES; 9
1096	1096
1097	1097	(2) CHARGING DIFFERENT P RICES OR RATES FOR G OODS OR 10
1098	1098	SERVICES; OR 11
1099	1099
1100	1100	(3) PROVIDING A DIFFERENT LEVEL OF QUALITY OF GOODS OR 12
1101	1101	SERVICES. 13
1102	1102
1103	1103	(F) NOTHING IN SUBSECTION (E) OF THIS SECTION MAY BE CONSTRUED TO : 14
1104	1104
1105	1105	(1) REQUIRE A CONTROLLER TO PROVIDE A PRODUCT OR SERVICE 15
1106	1106	THAT REQUIRES THE PERSONAL DATA OF A C ONSUMER WHICH THE CO NTROLLER 16
1107	1107	DOES NOT COLLECT OR MAINTAIN; OR 17
1108	1108
1109	1109	(2) PROHIBIT A CONTROLLER FROM OFFERING A DIFF ERENT PRICE, 18
1110	1110	RATE, LEVEL, QUALITY, OR SELECTION OF GOOD S OR SERVICES TO A C ONSUMER, 19
1111	1111	INCLUDING OFFERING G OODS OR SERVICES FOR NO FEE, IF THE OFFERING IS I N 20
1112	1112	CONNECTION WITH A CO NSUMER’S VOLUNTARY PARTICIP ATION IN A BONA FIDE 21
1113	1113	LOYALTY, REWARDS, PREMIUM FEATURES , DISCOUNTS, OR CLUB CARD PROGRAM . 22
1114	1114
1115	1115	(G) (1) IF A CONSUMER ’S DECISION TO OPT OU T OF THE PROCESSING OF 23
1116	1116	THE CONSUMER ’S PERSONAL DATA FOR THE PURPO SES OF TARGETED ADVE RTISING 24
1117	1117	OR THE SALE OF PERSO NAL DATA THROUGH AN OPT–OUT PREFERENCE SIGNA L 25
1118	1118	SENT IN ACCORDANCE W ITH § 14–4508(B)(4)(II) OF THIS SUBTITLE CON FLICTS WITH 26
1119	1119	THE CONSUMER ’S EXISTING CONTROLLE R–SPECIFIC PRIVACY SET TING OR 27
1120	1120	VOLUNTARY PARTICIPATION IN A CONTROLLER ’S BONA FIDE LOYALTY , REWARDS, 28
1121	1121	PREMIUM FEATURES , DISCOUNTS, OR CLUB CARD PROGRAM , THE CONTROLLER 29
1122	1122	SHALL COMPLY WITH TH E CONSUMER ’S OPT–OUT PREFERENCE SIGNA L. 30
1123	1123
1124	1124	(2) A CONTROLLER MAY : 31
1125	1125	26 SENATE BILL 698
1126	1126
1127	1127
1128	1128	(I) NOTIFY A CONSUMER OF THE CONFL ICT BETWEEN AN 1
1129	1129	OPT–OUT PREFERENCE SIGNA L AND A CONTROLLER ’S SPECIFIC PRIVACY S ETTING; 2
1130	1130	AND 3
1131	1131
1132	1132	(II) PROVIDE TO THE CONSUM ER THE CHOICE TO CON FIRM THE 4
1133	1133	CONTROLLER –SPECIFIC PRIVACY SET TING OR PARTICIPATIO N IN THE PROGRAM . 5
1134	1134
1135	1135	(H) IF A CONTROLLER RESPO NDS TO A CONSUMER OPT –OUT REQUEST 6
1136	1136	RECEIVED IN ACCORDAN CE WITH SUBSECTION (G) OF THIS SECTION BY I NFORMING 7
1137	1137	THE CONSUMER OF A CH ARGE FOR THE USE OF ANY PRODUCT OR SERVI CE, THE 8
1138	1138	CONTROLLER SHALL PRE SENT THE TERMS OF AN Y FINANCIAL INCENTIV E OFFERED 9
1139	1139	IN ACCORDANCE WITH S UBSECTION (F) OF THIS SECTION FOR THE RETENTION , USE, 10
1140	1140	SALE, OR SHARING OF THE CO NSUMER’S PERSONAL DATA . 11
1141	1141
1142	1142	(I) A CONTROLLER OR A PROC ESSOR THAT COMPLIES WITH THE 12
1143	1143	VERIFIABLE PARENTAL CONSENT REQUIREMENTS OF THE FEDERAL CHILDREN’S 13
1144	1144	ONLINE PRIVACY PROTECTION ACT IS CONSIDERED TO B E COMPLIANT WITH ANY 14
1145	1145	OBLIGATION TO OBTAIN PARENTAL CONSENT IN ACCORDANCE WITH THIS SUBTITLE. 15
1146	1146
1147	1147	(J) IF A CONTROLLER SELLS PERSONAL DATA TO THI RD PARTIES OR 16
1148	1148	PROCESSES PERSONAL D ATA FOR TARGETED ADV ERTISING, THE CONTROLLER 17
1149	1149	SHALL CLEARLY AN D CONSPICUOUSLY DISC LOSE: 18
1150	1150
1151	1151	(1) THE PROCESSING ; AND 19
1152	1152
1153	1153	(2) THE MANNER IN WHICH A CONSUMER MAY EXERCIS E THE RIGHT 20
1154	1154	TO OPT OUT OF THE PR OCESSING. 21
1155	1155
1156	1156	14–4508. 22
1157	1157
1158	1158	(A) (1) A CONTROLLER SHALL PRO VIDE A CONSUMER WITH A 23
1159	1159	REASONABLY ACCESSIBL E, CLEAR, AND MEANINGFUL PRIVACY NOTICE THAT 24
1160	1160	INCLUDES: 25
1161	1161
1162	1162	(I) FOR BIOMETRIC DATA PR OCESSED BY THE CONTR OLLER, A 26
1163	1163	WRITTEN POLICY ESTAB LISHING A RETENTION SCHEDULE AND GUIDELI NES FOR 27
1164	1164	PERMANENTLY DESTROYI NG BIOMETRIC DATA ; 28
1165	1165
1166	1166	(II) THE CATEGORIES OF PER SONAL DATA PROCESSED BY THE 29
1167	1167	CONTROLLER; 30
1168	1168
1169	1169	(III) THE PURPOSES FOR PROC ESSING PERSONAL DATA ; 31
1170	1170	SENATE BILL 698 27
1171	1171
1172	1172
1173	1173	(IV) HOW A CONSUMER MAY EX ERCISE A CONSUMER RI GHT 1
1174	1174	UNDER THIS SUBTITLE , INCLUDING HOW A CONS UMER MAY APPEAL A 2
1175	1175	CONTROLLER ’S DECISION WITH REGA RD TO THE CONSUMER ’S REQUEST; 3
1176	1176
1177	1177	(V) THE CATEGORI ES OF THIRD PARTIES WITH WHICH THE 4
1178	1178	CONTROLLER SHARES PE RSONAL DATA ; 5
1179	1179
1180	1180	(VI) THE CATEGORIES OF PER SONAL DATA THAT THE 6
1181	1181	CONTROLLER SHARES WI TH THIRD PARTIES ; AND 7
1182	1182
1183	1183	(VII) AN ACTIVE E –MAIL ADDRESS OR OTHE R ONLINE 8
1184	1184	MECHANISM THAT A CON SUMER MAY USE TO CON TACT THE CONTROLLER . 9
1185	1185
1186	1186	(2) THE PRIVACY NOTICE IN PARAGRAPH (1) OF THIS SUBSECTION 10
1187	1187	SHALL BE MADE AVAILA BLE TO THE PUBLIC . 11
1188	1188
1189	1189	(B) (1) A CONTROLLER SHALL EST ABLISH AND DESCRIBE IN THE 12
1190	1190	PRIVACY NOTICE ONE O R MORE SECURE AND RE LIABLE METHODS FOR A CONSUMER 13
1191	1191	TO SUBMIT A REQUEST TO EXERCIS E A CONSUMER RIGHT U NDER THIS SUBTITLE . 14
1192	1192
1193	1193	(2) THE METHOD A CONTROLL ER CHOOSES TO SATISF Y PARAGRAPH 15
1194	1194	(1) OF THIS SUBSECTION S HALL TAKE INTO ACCOU NT: 16
1195	1195
1196	1196	(I) THE WAYS IN WHICH CON SUMERS NORMALLY INTE RACT 17
1197	1197	WITH THE CONTROLLER ; 18
1198	1198
1199	1199	(II) THE NEED FOR SECURE AND RELIABLE COMMUNICATI ON 19
1200	1200	OF REQUESTS; AND 20
1201	1201
1202	1202	(III) THE ABILITY OF THE CO NTROLLER TO VERIFY T HE 21
1203	1203	IDENTITY OF A CONSUM ER MAKING THE REQUES T. 22
1204	1204
1205	1205	(3) (I) A CONTROLLER MAY NOT R EQUIRE A CONSUMER TO 23
1206	1206	CREATE A NEW ACCOUNT IN ORDER TO EXERCISE A CONSUMER RIGHT . 24
1207	1207
1208	1208	(II) A CONTROLLER MAY REQUI RE A CONSUMER TO USE AN 25
1209	1209	EXISTING ACCOUNT TO EXERCISE A CONSUMER RIGHT. 26
1210	1210
1211	1211	(4) A CONTROLLER MAY CONSI DER THE FOLLOWING ME THODS TO 27
1212	1212	SATISFY PARAGRAPH (1) OF THIS SUBSECTION : 28
1213	1213
1214	1214	(I) PROVIDING A CLEAR AND CONSPICUOUS LINK ON THE 29
1215	1215	CONTROLLER ’S WEBSITE TO A WEBPA GE THAT ALLOWS A CON SUMER, OR AN 30 28 SENATE BILL 698
1216	1216
1217	1217
1218	1218	AUTHORIZED AGENT OF THE CONSUMER , TO OPT OUT OF THE TA RGETED 1
1219	1219	ADVERTISING OR THE S ALE OF THE CONSUMER ’S PERSONAL DATA ; OR 2
1220	1220
1221	1221	(II) ALLOWING A CONSUMER T O OPT OUT OF ANY PRO CESSING 3
1222	1222	OF THE CONSUMER ’S PERSONAL DATA FOR THE PURPOSES OF TARG ETED 4
1223	1223	ADVERTISING, OR ANY SALE OF PERSO NAL DATA, THROUGH AN OPT –OUT 5
1224	1224	PREFERENCE SIGNAL SE NT, WITH THE CONSUMER ’S CONSENT, BY A PLATFORM , A 6
1225	1225	TECHNOLOGY , OR A MECHANISM TO TH E CONTROLLER INDICAT ING THE 7
1226	1226	CONSUMER ’S INTENT TO OPT OUT OF THE PROCESSING OR SALE. 8
1227	1227
1228	1228	(5) (I) A PLATFORM, A TECHNOLOGY , OR A MECHANISM USED IN 9
1229	1229	ACCORDANCE WITH PARA GRAPH (4) OF THIS SUBSECTION S HALL: 10
1230	1230
1231	1231	1. BE CONSUMER –FRIENDLY AND EASY TO USE BY THE 11
1232	1232	AVERAGE CONSUMER ; 12
1233	1233
1234	1234	2. BE AS CONSISTENT AS POSS IBLE WITH ANY OTHER 13
1235	1235	SIMILAR PLATFORM , TECHNOLOGY , OR MECHANISM REQUIRE D BY ANY FEDERAL OR 14
1236	1236	STATE LAW OR REGULATI ON; AND 15
1237	1237
1238	1238	3. ENABLE THE CONTROLLER TO ACCURATELY 16
1239	1239	DETERMINE WHETHER TH E CONSUMER : 17
1240	1240
1241	1241	A. IS A RESIDENT OF THE STATE; AND 18
1242	1242
1243	1243	B. HAS MADE A LEGITIMATE REQUEST TO OPT OUT O F 19
1244	1244	ANY SALE OF THE CONS UMER’S PERSONAL DATA OR T ARGETED ADVERTISING . 20
1245	1245
1246	1246	(II) A PLATFORM, A TECHNOLOGY , OR A MECHANISM USED IN 21
1247	1247	ACCORDANCE WITH PARA GRAPH (4) OF THIS SUBSECTION : 22
1248	1248
1249	1249	1. SHALL REQUIRE THE CON SUMER TO MAKE AN 23
1250	1250	AFFIRMATIVE, FREELY GIVEN , AND UNAMBIGUOUS CHOI CE TO OPT OUT OF THE 24
1251	1251	PROCESSING OF THE CO NSUMER’S PERSONAL DATA IN A CCORDANCE WITH THIS 25
1252	1252	SUBTITLE; AND 26
1253	1253
1254	1254	2. MAY NOT: 27
1255	1255
1256	1256	A. UNFAIRLY DISADVANTAGE ANOTHER CONTROLLER ; 28
1257	1257	OR 29
1258	1258
1259	1259	B. MAKE USE OF A DEFAULT SETTING. 30
1260	1260	SENATE BILL 698 29
1261	1261
1262	1262
1263	1263	(C) (1) THIS SUBSECTION APPLI ES ONLY TO A CONTROL LER THAT 1
1264	1264	COLLECTS THE BIOMETR IC DATA OF CONSUMERS . 2
1265	1265
1266	1266	(2) EXCEPT AS PROVIDED IN PARAGRAPHS (4) AND (5) OF THIS 3
1267	1267	SUBSECTION, A CONTROLLER IN POSS ESSION OF BIOMETRIC DATA SHALL DEVELOP 4
1268	1268	A WRITTEN POLICY , MADE AVAILABLE TO TH E PUBLIC, ESTABLISHING A RETEN TION 5
1269	1269	SCHEDULE AND GUIDELI NES FOR PERMANENTLY DESTROYING BIOMETRIC DATA ON 6
1270	1270	THE EARLIEST OF THE FOLLOWING: 7
1271	1271
1272	1272	(I) THE DATE ON WHICH THE INITIAL PURPOSE FOR 8
1273	1273	COLLECTING OR OBTAINING THE BIOMET RIC DATA HAS BEEN SA TISFIED; 9
1274	1274
1275	1275	(II) WITHIN 3 YEARS AFTER THE CONS UMER’S LAST 10
1276	1276	INTERACTION WITH THE CONTROLLER IN POSSES SION OF THE BIOMETRI C DATA; OR 11
1277	1277
1278	1278	(III) WITHIN 30 DAYS AFTER THE CONTR OLLER RECEIVES A 12
1279	1279	VERIFIED REQUEST TO DELETE T HE BIOMETRIC DATA SU BMITTED BY THE 13
1280	1280	CONSUMER OR THE CONS UMER’S AUTHORIZED AGENT . 14
1281	1281
1282	1282	(3) ABSENT A VALID WARRAN T OR SUBPOENA ISSUED BY A COURT OF 15
1283	1283	COMPETENT JURISDICTI ON, A CONTROLLER IN POSS ESSION OF BIOMETRIC DATA 16
1284	1284	SHALL COMPLY WITH TH E RETENTION SCHEDULE AND DESTRUCTION GUIDELIN ES 17
1285	1285	DEVELOPED UNDER PARA GRAPH (2) OF THIS SUBSECTION . 18
1286	1286
1287	1287	(4) A CONTROLLER IN POSSES SION OF BIOMETRIC DA TA FOR FRAUD 19
1288	1288	PREVENTION OR SECURI TY PURPOSES IS NOT R EQUIRED TO DESTROY A 20
1289	1289	CONSUMER ’S BIOMETRIC DATA IN ACCORDANCE WITH PARA GRAPH (2)(II) AND (III) 21
1290	1290	OF THIS SUBSECTION I F THE CONSUMER IS PA RT OF THE STATE VOLUNTARY 22
1291	1291	EXCLUSION PROGRAM. 23
1292	1292
1293	1293	(5) A CONTROLLER MAY NOT B E REQUIRED TO MAKE P UBLICLY 24
1294	1294	AVAILABLE A WRITTEN POLICY DEVELOPED UND ER THIS SUBSECTION I F: 25
1295	1295
1296	1296	(I) THE CONTROLLER COLLEC TS BIOMETRIC DATA ONLY FROM 26
1297	1297	THE CONTROLLER ’S EMPLOYEES; AND 27
1298	1298
1299	1299	(II) THE BIOMETRIC DATA IS USED SOLELY FOR INTE RNAL 28
1300	1300	COMPANY OPERATIONS . 29
1301	1301
1302	1302	14–4509. 30
1303	1303
1304	1304	(A) (1) IF A CONTROLLER USES A PROCESSOR TO PROCE SS THE 31
1305	1305	PERSONAL DATA OF CON SUMERS, THE CONTROLLER AND T HE PROCESSOR SHALL 32 30 SENATE BILL 698
1306	1306
1307	1307
1308	1308	ENTER INTO A CONTRAC T THAT GOVERNS THE P ROCESSOR’S DATA PROCESSING 1
1309	1309	PROCEDURES WITH RESP ECT TO PROCESSING PE RFORMED ON BEHALF OF THE 2
1310	1310	CONTROLLER . 3
1311	1311
1312	1312	(2) THE CONTRACT SHALL PR OVIDE CLEAR INSTRUCT IONS FOR: 4
1313	1313
1314	1314	(I) PROCESSING DATA ; 5
1315	1315
1316	1316	(II) THE NATURE AN D PURPOSE OF PROCESS ING; 6
1317	1317
1318	1318	(III) THE TYPE OF DATA SUBJ ECT TO PROCESSING ; 7
1319	1319
1320	1320	(IV) THE DURATION OF PROCE SSING; AND 8
1321	1321
1322	1322	(V) THE RIGHTS AND OBLIGA TIONS OF THE CONTROL LER AND 9
1323	1323	THE PROCESSOR . 10
1324	1324
1325	1325	(3) THE CONTRACT SHALL RE QUIRE THAT THE PROCE SSOR: 11
1326	1326
1327	1327	(I) ENSURE THAT EACH PERSON PROCESSING PERSONAL DATA 12
1328	1328	IS SUBJECT TO A DUTY OF CONFIDENTIALITY W ITH RESPECT TO THE D ATA; 13
1329	1329
1330	1330	(II) UNLESS RETENTION OF T HE PERSONAL DATA IS REQUIRED 14
1331	1331	BY LAW, AT THE CONTROLLER ’S DIRECTION, DELETE OR RETURN ALL PERSONAL 15
1332	1332	DATA TO THE CONTR OLLER AS REQUESTED A T THE END OF THE PRO VISION OF 16
1333	1333	SERVICE; 17
1334	1334
1335	1335	(III) MAKE AVAILABLE TO THE CONTROLLER ALL INFOR MATION 18
1336	1336	IN THE PROCESSOR ’S POSSESSION NECESSA RY TO DEMONSTRATE TH E PROCESSOR’S 19
1337	1337	COMPLIANCE WITH THE OBLIGATIONS IN THIS SUBTITLE; 20
1338	1338
1339	1339	(IV) AFTER PROVIDING THE CONTROLL ER AN OPPORTUNITY TO 21
1340	1340	OBJECT, REQUIRE A SUBCONTRAC TOR TO SIGN A CONTRA CT AGREEING TO MEET 22
1341	1341	THE OBLIGATIONS OF T HE PROCESSOR WITH RE SPECT TO THE PERSONA L DATA; AND 23
1342	1342
1343	1343	(V) ALLOW AND COOPERATE W ITH REASONABLE ASSES SMENTS 24
1344	1344	BY THE CONTROLLER , THE CONTROLLER ’S DESIGNATED ASSESSO R, OR A QUALIFIED 25
1345	1345	AND INDEPENDENT ASSE SSOR TO ASSESS THE P ROCESSOR’S POLICIES AND 26
1346	1346	TECHNICAL AND ORGANI ZATIONAL MEASURES TO COMPLY WITH THE OBLI GATIONS 27
1347	1347	UNDER THIS SUBTITLE . 28
1348	1348	SENATE BILL 698 31
1349	1349
1350	1350
1351	1351	(4) (I) ON REQUEST, THE PROCESSOR SHALL PROVIDE A REPORT 1
1352	1352	OF AN ASSESSMENT REQ UIRED BY PARAGRAPH (3)(V) OF THIS SUBSECTION T O THE 2
1353	1353	CONTROLLER . 3
1354	1354
1355	1355	(II) AN ASSESSMENT CONDUCT ED IN ACCORDANCE WIT H 4
1356	1356	PARAGRAPH (3)(V) OF THIS SUBSECTION S HALL BE CONDUCTED US ING AN 5
1357	1357	APPROPRIATE AND ACCE PTED CONTROL STANDA RD OR FRAMEWORK AND 6
1358	1358	ASSESSMENT PROCEDURE FOR THE ASSESSMENTS . 7
1359	1359
1360	1360	(B) A PROCESSOR SHALL ADHE RE TO THE INSTRUCTIO NS OF A 8
1361	1361	CONTROLLER AND SHALL ASSIST THE CONTROLLE R IN MEETING THE 9
1362	1362	CONTROLLER ’S OBLIGATIONS UNDER THIS SUBTITLE, INCLUDING: 10
1363	1363
1364	1364	(1) TAKING INTO ACCO UNT THE NATURE OF PR OCESSING AND THE 11
1365	1365	INFORMATION AVAILABL E TO THE PROCESSOR B Y FULFILLING THE CON TROLLER’S 12
1366	1366	OBLIGATION TO RESPON D TO CONSUMER RIGHTS REQUESTS; 13
1367	1367
1368	1368	(2) TAKING INTO ACCOUNT T HE NATURE OF PROCESS ING AND THE 14
1369	1369	INFORMATION AVAILABL E TO THE PROCESSOR , BY ASSISTING THE CON TROLLER IN 15
1370	1370	MEETING THE CONTROLL ER’S OBLIGATIONS IN REL ATION TO THE SECURIT Y OF 16
1371	1371	PROCESSING PERSONAL DATA AND THE NOTIFIC ATION OF A BREACH OF SECURITY 17
1372	1372	OF THE SYSTEM OF THE PROCESSOR, AS DEFINED IN § 14–3504 OF THIS TITLE, IN 18
1373	1373	ORDER TO ME ET THE CONTROLLER ’S OBLIGATIONS; AND 19
1374	1374
1375	1375	(3) PROVIDING NECESSARY I NFORMATION TO ENABLE THE 20
1376	1376	CONTROLLER TO CONDUC T AND DOCUMENT DATA PROTECTION ASSESSMEN TS. 21
1377	1377
1378	1378	(C) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO RELIEVE A 22
1379	1379	CONTROLLER OR A PROC ESSOR FROM THE LIABI LITIES IMPOSED ON THE 23
1380	1380	CONTROLLER OR PROCES SOR BY VIRTUE OF THE CONTROLLER ’S OR PROCESSOR ’S 24
1381	1381	ROLE IN THE PROCESSI NG RELATIONSHIP . 25
1382	1382
1383	1383	(D) (1) THE DETERMINATION OF WHETHER A PERSON IS ACTING AS A 26
1384	1384	CONTROLLER OR A PROC ESSOR WITH RESPECT T O A SPECIFIC PROCESS ING OF DATA 27
1385	1385	IS A FACT–BASED DETERMINATION THAT DEPENDS UPON TH E CONTEXT IN WHICH 28
1386	1386	PERSONAL DATA IS BEI NG PROCESSED . 29
1387	1387
1388	1388	(2) A PERSON IS CONSIDERED TO BE A CONTROLLER I F THE PERSON: 30
1389	1389
1390	1390	(I) IS NOT LIMITED IN THE PERSON’S PROCESSING OF SPEC IFIC 31
1391	1391	PERSONAL DATA IN ACC ORDANCE WITH A CONTROL LER’S INSTRUCTIONS ; OR 32
1392	1392	32 SENATE BILL 698
1393	1393
1394	1394
1395	1395	(II) FAILS TO FOLLOW A CON TROLLER’S INSTRUCTIONS 1
1396	1396	REGARDING THE SPECIF IC PROCESSING OF PER SONAL DATA. 2
1397	1397
1398	1398	(3) IF A PROCESSOR, ALONE OR JOINTLY WIT H OTHERS, DETERMINES 3
1399	1399	THE PURPOSES AND MEA NS OF THE PROCESSING OF PERSONAL DATA , THE 4
1400	1400	PROCESSOR: 5
1401	1401
1402	1402	(I) IS A CONTROLLER WITH RESPECT TO THE PROCE SSING; AND 6
1403	1403
1404	1404	(II) MAY BE SUBJECT TO AN ENFORCEMENT ACTION U NDER 7
1405	1405	THIS SUBTITLE. 8
1406	1406
1407	1407	14–4510. 9
1408	1408
1409	1409	(A) IN THIS SECTION , “PROCESSING ACTIVITIE S THAT PRESENT A 10
1410	1410	HEIGHTENED RISK OF H ARM TO A CONSUMER ” MEANS: 11
1411	1411
1412	1412	(1) THE PROCESSING OF PER SONAL DATA FOR THE P URPOSES OF 12
1413	1413	TARGETED ADVERTISING ; 13
1414	1414
1415	1415	(2) THE SALE OF PERSONAL DATA; 14
1416	1416
1417	1417	(3) THE PROCESSING OF SEN SITIVE DATA; AND 15
1418	1418
1419	1419	(4) THE PROCESSING OF PER SONAL DATA FOR THE P URPOSES OF 16
1420	1420	PROFILING, IN WHICH THE PROFILING PRESENTS A REASONABL Y FORESEEABLE 17
1421	1421	RISK OF: 18
1422	1422
1423	1423	(I) UNFAIR, ABUSIVE, OR DECEPTIVE TREATME NT OF A 19
1424	1424	CONSUMER ; 20
1425	1425
1426	1426	(II) HAVING AN UNLAWFUL DI SPARATE IMPACT ON A 21
1427	1427	CONSUMER ; 22
1428	1428
1429	1429	(III) FINANCIAL, PHYSICAL, OR REPUTATIONAL INJU RY TO A 23
1430	1430	CONSUMER ; 24
1431	1431
1432	1432	(IV) A PHYSICAL OR OTHER IN TRUSION ON THE SOLIT UDE OR 25
1433	1433	SECLUSION OR THE PRI VATE AFFAIRS OR CONC ERNS OF A CONSUMER I NTO WHICH 26
1434	1434	THE INTRUSION WOULD BE OFFENSIVE TO A RE ASONABLE PERSON ; OR 27
1435	1435
1436	1436	(V) OTHER SUBSTANTIAL INJ URY TO A CONSUMER . 28
1437	1437	SENATE BILL 698 33
1438	1438
1439	1439
1440	1440	(B) A CONTROLLER S HALL CONDUCT AND DOC UMENT A DATA PROTECT ION 1
1441	1441	ASSESSMENT FOR EACH OF THE CONTROLLER ’S PROCESSING ACTIVIT IES THAT 2
1442	1442	PRESENT A HEIGHTENED RISK OF HARM TO A CO NSUMER. 3
1443	1443
1444	1444	(C) (1) A DATA PROTECTION ASSE SSMENT CONDUCTED IN ACCORDANCE 4
1445	1445	WITH THIS SECTION SH ALL IDENTIFY AND WEIGH THE BENEFI TS OF THE 5
1446	1446	PROCESSING TO THE CO NTROLLER, THE CONSUMER , OTHER STAKEHOLDERS , AND 6
1447	1447	THE PUBLIC AGAINST T HE POTENTIAL RISKS T O THE RIGHTS OF THE CONSUMER 7
1448	1448	ASSOCIATED WITH THE PROCESSING. 8
1449	1449
1450	1450	(2) THE CONTROLLER SHALL FACTOR INTO A DATA PROTECTION 9
1451	1451	ASSESSMENT : 10
1452	1452
1453	1453	(I) THE USE OF DE–IDENTIFIED DATA ; 11
1454	1454
1455	1455	(II) THE REASONABLE EXPECT ATIONS OF CONSUMERS ; 12
1456	1456
1457	1457	(III) THE CONTEXT OF THE PR OCESSING; 13
1458	1458
1459	1459	(IV) THE RELATIONSHIP BETW EEN THE CONTROLLER A ND THE 14
1460	1460	CONSUMER WHOSE PERSO NAL DATA WILL BE PRO CESSED; AND 15
1461	1461
1462	1462	(V) THE SAFEGUARDS THAT C AN BE EMPLOYED BY TH E 16
1463	1463	CONTROLLER TO REDUCE THE RISKS AGAINST CO NSUMERS ASSOCIATED W ITH THE 17
1464	1464	PROCESSING. 18
1465	1465
1466	1466	(D) (1) THE DIVISION MAY REQUIRE THAT A CONTROLLER MA KE 19
1467	1467	AVAILABLE TO THE DIVISION A DATA PROTE CTION ASSESSMENT THA T IS RELEVANT 20
1468	1468	TO AN INVESTIGATION CONDUCTED BY THE DIVISION. 21
1469	1469
1470	1470	(2) THE DIVISION MAY EVALUATE A DATA PROTECTION AS SESSMENT 22
1471	1471	FOR COMPLIANCE WITH THE RESPONSIBILITIES ESTABLISHED IN THIS SUBTITLE. 23
1472	1472
1473	1473	(E) A SINGLE DATA PROTECTI ON ASSESSMENT MAY AD DRESS A 24
1474	1474	COMPARABLE SET OF PROCESSI NG OPERATIONS THAT I NCLUDE SIMILAR 25
1475	1475	ACTIVITIES. 26
1476	1476
1477	1477	(F) IF A CONTROLLER CONDU CTS A DATA PROTECTIO N ASSESSMENT FOR 27
1478	1478	THE PURPOSE OF COMPL YING WITH ANOTHER LA W OR REGULATION , THE DATA 28
1479	1479	PROTECTION ASSESSMEN T SHALL SATISFY THE REQUIREMENTS ESTABL ISHED IN 29
1480	1480	THIS SECTION IF THE DATA PROTECTION ASSE SSMENT IS REASONABLY SIMILAR IN 30
1481	1481	SCOPE AND EFFECT TO THE DATA PROTECTION ASSESSMENT THAT WOUL D 31
1482	1482	OTHERWISE BE CONDUCT ED IN ACCORDANCE WIT H THIS SECTION. 32 34 SENATE BILL 698
1483	1483
1484	1484
1485	1485
1486	1486	(G) A DATA PROTECTION ASSE SSMENT SHALL BE CONF IDENTIAL AND 1
1487	1487	EXEMPT FROM DISCLOSU RE UNDER THE MARYLAND PUBLIC INFORMATION ACT. 2
1488	1488
1489	1489	14–4511. 3
1490	1490
1491	1491	(A) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO: 4
1492	1492
1493	1493	(1) REQUIRE A CONTROLLER OR A PROCESSOR TO RE –IDENTIFY 5
1494	1494	DE–IDENTIFIED DATA ; 6
1495	1495
1496	1496	(2) MAINTAIN DATA IN AN I DENTIFIABLE FORM ; OR 7
1497	1497
1498	1498	(3) COLLECT, OBTAIN, RETAIN, OR ACCESS ANY DATA O R 8
1499	1499	TECHNOLOGY IN ORDER TO BE CAPABLE OF ASS OCIATING AN AUTHENTI CATED 9
1500	1500	CONSUMER REQUEST WIT H PERSONAL DATA . 10
1501	1501
1502	1502	(B) A CONTROLLER IN POSSES SION OF DE–IDENTIFIED DATA SHAL L: 11
1503	1503
1504	1504	(1) TAKE REASONABLE MEASU RES TO ENSURE THAT THE DATA 12
1505	1505	CANNOT BE ASSOCIATED WITH A CONSUMER ; 13
1506	1506
1507	1507	(2) PUBLICLY COMMIT TO MA INTAINING AND USING DE–IDENTIFIED 14
1508	1508	DATA WITHOUT ATTEMPT ING TO RE–IDENTIFY THE DATA ; AND 15
1509	1509
1510	1510	(3) CONTRACTUALLY OBLIGAT E A RECIPIENT OF DE –IDENTIFIED 16
1511	1511	DATA TO COMPLY WITH ITEMS (1) AND (2) OF THIS SUBSECTION . 17
1512	1512
1513	1513	(C) A CONTROLLER THAT DISC LOSES DE–IDENTIFIED DATA SHAL L: 18
1514	1514
1515	1515	(1) EXERCISE REASONABLE O VERSIGHT TO MONITOR COMPLIANCE 19
1516	1516	WITH A CONTRACTUAL C OMMITMENT TO WHICH T HE DE–IDENTIFIED DATA IS 20
1517	1517	SUBJECT; AND 21
1518	1518
1519	1519	(2) IF NECESSARY, TAKE APPROPRIATE STEPS TO ADDRESS A BREACH 22
1520	1520	OF A CONTRACTUAL COM MITMENT. 23
1521	1521
1522	1522	(D) A CONTROLLER THAT POSS ESSES THE DE–IDENTIFIED DATA SHAL L: 24
1523	1523
1524	1524	(1) TAKE REASONABLE MEASU RES TO ENSURE THAT T HE DATA 25
1525	1525	CANNOT BE ASSOCIATED WITH A CONSUMER ; 26
1526	1526
1527	1527	(2) PUBLICLY COMMIT TO : 27 SENATE BILL 698 35
1528	1528
1529	1529
1530	1530
1531	1531	(I) PROCESS THE DATA ONLY IN A DE–IDENTIFIED MANNER ; 1
1532	1532	AND 2
1533	1533
1534	1534	(II) NOT ATTEMPT TO RE –IDENTIFY THE DATA ; AND 3
1535	1535
1536	1536	(3) CONTRACTUALLY OBLIGAT E A RECIPIENT OF THE DATA TO 4
1537	1537	SATISFY THE CRITERIA IN ITEMS (1) AND (2) OF THIS SUBSECTION . 5
1538	1538
1539	1539	14–4512. 6
1540	1540
1541	1541	(A) EXCEPT AS PROVIDED IN SUBSECTI ON (B) OF THIS SECTION , A 7
1542	1542	VIOLATION OF THIS SU BTITLE IS: 8
1543	1543
1544	1544	(1) AN UNFAIR, ABUSIVE, OR DECEPTIVE TRADE P RACTICE WITHIN 9
1545	1545	THE MEANING OF TITLE 13 OF THIS ARTICLE; AND 10
1546	1546
1547	1547	(2) SUBJECT TO THE ENFORC EMENT AND PENALTY PR OVISIONS 11
1548	1548	CONTAINED IN TITLE 13 OF THIS ARTICLE, EXCEPT FOR § 13–408 OF THIS ARTICLE. 12
1549	1549
1550	1550	(B) IN ADDITION TO THE RE MEDIES AVAILABLE IN SUBSECTION (A) OF THIS 13
1551	1551	SECTION, A CONSUMER WHO IS AF FECTED BY A VIOLATIO N OF § 14–4507(A)(1) OF 14
1552	1552	THIS SUBTITLE MAY BR ING AN ACTION AGAINS T THE CONTR OLLER IN ACCORDANCE 15
1553	1553	WITH § 13–408 OF THIS ARTICLE. 16
1554	1554
1555	1555	SECTION 2. AND BE IT FURTHER ENACTED, That: 17
1556	1556
1557	1557	(a) There is a Task Force to Study Online Data Privacy. 18
1558	1558
1559	1559	(b) The Task Force consists of the following members: 19
1560	1560
1561	1561	(1) two members of the Senate of Maryland, appointed by the President of 20
1562	1562	the Senate; 21
1563	1563
1564	1564	(2) two members of the House of Delegates, appointed by the Speaker of 22
1565	1565	the House; 23
1566	1566
1567	1567	(3) the Attorney General, or the Attorney General’s designee; and 24
1568	1568
1569	1569	(4) the following members, appointed by the Governor: 25
1570	1570
1571	1571	(i) one representative of the business sector; 26
1572	1572
1573	1573	(ii) one representative of the academic sector; 27
1574	1574	36 SENATE BILL 698
1575	1575
1576	1576
1577	1577	(iii) one representative from a consumer advocacy group; and 1
1578	1578
1579	1579	(iv) two attorneys with experience in privacy law. 2
1580	1580
1581	1581	(c) The Governor shall designate the chair of the Task Force. 3
1582	1582
1583	1583	(d) The State agencies represented on the Task Force shall provide staff for the 4
1584	1584	Task Force. 5
1585	1585
1586	1586	(e) A member of the Task Force: 6
1587	1587
1588	1588	(1) may not receive compensation as a member of the Task Force; but 7
1589	1589
1590	1590	(2) is entitled to reimbursement for expenses under the Standard State 8
1591	1591	Travel Regulations, as provided in the State budget. 9
1592	1592
1593	1593	(f) The Task Force shall: 10
1594	1594
1595	1595	(1) study and make recommendations regarding: 11
1596	1596
1597	1597	(i) information sharing among health care and social care providers; 12
1598	1598
1599	1599	(ii) algorithmic decision–making and the proper use of data to reduce 13
1600	1600	bias in algorithmic decision–making; 14
1601	1601
1602	1602	(iii) requiring an operator, upon a parent’s request, to delete the 15
1603	1603	account of a child and cease to collect, use or maintain, in retrievable form, the child’s 16
1604	1604	personal data on the operator’s website or online service directed to children, and provide 17
1605	1605	parents with an accessible, reasonable, and verifiable means to make the request; 18
1606	1606
1607	1607	(iv) methods of verifying the age of a child who creates a social media 19
1608	1608	account; 20
1609	1609
1610	1610	(v) issues concerning data colocation, including the impact that the 21
1611	1611	provisions of Section 1 of this Act may have on third parties that provide data storage and 22
1612	1612	colocation services; 23
1613	1613
1614	1614	(vi) issues surrounding additional persons or groups that are subject 24
1615	1615	to the provisions of Section 1 of this Act; and 25
1616	1616
1617	1617	(vii) other topics concerning online data privacy; and 26
1618	1618
1619	1619	(2) make recommendations for future data privacy legislation. 27
1620	1620
1621	1621	(g) On or before June 1, 2024, the Task Force shall report its findings and 28
1622	1622	recommendations to the Governor and, in accordance with § 2 –1257 of the State 29 SENATE BILL 698 37
1623	1623
1624	1624
1625	1625	Government Article, the Senate Finance Committee and the House Economic Matters 1
1626	1626	Committee. 2
1627	1627
1628	1628	SECTION 3. AND BE IT FURTHER ENACTED, That § 14 –4510 of the Commercial 3
1629	1629	Law Article, as enacted by Section 1 of this Act, shall be construed to apply only 4
1630	1630	prospectively and may not be applied or interpreted to have any effect on or application to 5
1631	1631	any personal data processing activities before the effective date of this Act. 6
1632	1632
1633	1633	SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect 7
1634	1634	October 1, 2023. Section 2 of this Act shall remain effective for a period of 2 years and, at 8
1635	1635	the end of September 30, 2025, Section 2 of this Act, with no further action required by the 9
1636	1636	General Assembly, shall be abrogated and of no further force and effect. 10
1637	1637