Minnesota 2025-2026 Regular Session

Minnesota House Bill HF2700 Compare Versions

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11 1.1 A bill for an act​
22 1.2 relating to consumer protection; modifying the Minnesota Consumer Data Privacy​
33 1.3 Act to make consumer health data a form of sensitive data; adding additional​
44 1.4 protections for sensitive data; amending Minnesota Statutes 2024, sections​
55 1.5 325M.11; 325M.12; 325M.16, subdivision 2; 325M.18; 325M.20; proposing coding​
66 1.6 for new law in Minnesota Statutes, chapter 325M; repealing Minnesota Statutes​
77 1.7 2024, section 325M.17.​
88 1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​
99 1.9 Section 1. Minnesota Statutes 2024, section 325M.11, is amended to read:​
1010 1.10 325M.11 DEFINITIONS.​
1111 1.11 (a) For purposes of sections 325M.10 to 325M.21, the following terms have the meanings​
1212 1.12given.​
1313 1.13 (b) "Affiliate" means a legal entity that controls, is controlled by, or is under common​
1414 1.14control with another legal entity. For purposes of this paragraph, "control" or "controlled"​
1515 1.15means: ownership of or the power to vote more than 50 percent of the outstanding shares​
1616 1.16of any class of voting security of a company; control in any manner over the election of a​
1717 1.17majority of the directors or of individuals exercising similar functions; or the power to​
1818 1.18exercise a controlling influence over the management of a company.​
1919 1.19 (c) "Authenticate" means to use reasonable means to determine that a request to exercise​
2020 1.20any of the rights under section 325M.14, subdivision 1, paragraphs (b) to (h), is being made​
2121 1.21by or rightfully on behalf of the consumer who is entitled to exercise the rights with respect​
2222 1.22to the personal data at issue.​
2323 1.23 (d) "Biometric data" means data generated by automatic measurements of an individual's​
2424 1.24biological characteristics, including a fingerprint, a voiceprint, eye retinas, irises, or other​
2525 1​Section 1.​
2626 REVISOR VH/HL 25-04043​03/11/25 ​
2727 State of Minnesota​
2828 This Document can be made available​
2929 in alternative formats upon request​
3030 HOUSE OF REPRESENTATIVES​
3131 H. F. No. 2700​
3232 NINETY-FOURTH SESSION​
3333 Authored by Elkins, Scott, Feist, Smith, Bahner and others​03/24/2025​
3434 The bill was read for the first time and referred to the Committee on Judiciary Finance and Civil Law​ 2.1unique biological patterns or characteristics that are used to identify a specific individual.​
3535 2.2Biometric data does not include:​
3636 2.3 (1) a digital or physical photograph;​
3737 2.4 (2) an audio or video recording; or​
3838 2.5 (3) any data generated from a digital or physical photograph, or an audio or video​
3939 2.6recording, unless the data is generated to identify a specific individual.​
4040 2.7 (e) "Child" has the meaning given in United States Code, title 15, section 6501.​
4141 2.8 (f) "Consent" means any freely given, specific, informed, and unambiguous indication​
4242 2.9of the consumer's wishes by which the consumer signifies agreement to the processing of​
4343 2.10personal data relating to the consumer. Acceptance of a general or broad terms of use or​
4444 2.11similar document that contains descriptions of personal data processing along with other,​
4545 2.12unrelated information does not constitute consent. Hovering over, muting, pausing, or closing​
4646 2.13a given piece of content does not constitute consent. A consent is not valid when the​
4747 2.14consumer's indication has been obtained by a dark pattern. A consumer may revoke consent​
4848 2.15previously given, consistent with sections 325M.10 to 325M.21.​
4949 2.16 (g) "Consumer" means a natural person who is a Minnesota resident acting only in an​
5050 2.17individual or household context. Consumer does not include a natural person acting in a​
5151 2.18commercial or employment context.​
5252 2.19 (h) "Controller" means the natural or legal person who, alone or jointly with others,​
5353 2.20determines the purposes and means of the processing of personal data.​
5454 2.21 (i) "Decisions that produce legal or similarly significant effects concerning the consumer"​
5555 2.22means decisions made by the controller that result in the provision or denial by the controller​
5656 2.23of financial or lending services, housing, insurance, education enrollment or opportunity,​
5757 2.24criminal justice, employment opportunities, health care services, or access to essential goods​
5858 2.25or services.​
5959 2.26 (j) "Dark pattern" means a user interface designed or manipulated with the substantial​
6060 2.27effect of subverting or impairing user autonomy, decision making, or choice.​
6161 2.28 (k) "Deidentified data" means data that cannot reasonably be used to infer information​
6262 2.29about or otherwise be linked to an identified or identifiable natural person or a device linked​
6363 2.30to an identified or identifiable natural person, provided that the controller that possesses the​
6464 2.31data:​
6565 2​Section 1.​
6666 REVISOR VH/HL 25-04043​03/11/25 ​ 3.1 (1) takes reasonable measures to ensure that the data cannot be associated with a natural​
6767 3.2person;​
6868 3.3 (2) publicly commits to process the data only in a deidentified fashion and not attempt​
6969 3.4to reidentify the data; and​
7070 3.5 (3) contractually obligates any recipients of the information to comply with all provisions​
7171 3.6of this paragraph.​
7272 3.7 (l) "Delete" means to remove or destroy information so that it is not maintained in human-​
7373 3.8or machine-readable form and cannot be retrieved or utilized in the ordinary course of​
7474 3.9business.​
7575 3.10 (m) "Genetic information" has the meaning given in section 13.386, subdivision 1.​
7676 3.11 (n) "Geofence" means technology that uses global positioning coordinates, cell tower​
7777 3.12connectivity, cellular data, radio frequency identification, Wi-Fi data, or any other form of​
7878 3.13spatial or location detection to establish a virtual boundary, with an accuracy of more than​
7979 3.14three decimal degrees of latitude and longitude or the equivalent in an alternative geographic​
8080 3.15coordinate system, around the perimeter of a specific physical location or to locate a​
8181 3.16consumer within the virtual boundary.​
8282 3.17 (o) "Health care services or supplies" means any service, surgery, procedure, treatment,​
8383 3.18or product, including medication or medical devices, that a person may use to assess,​
8484 3.19measure, improve, or learn about a person's past, present, or future mental or physical health.​
8585 3.20 (p) "Health data" means personal data that identifies a consumer's past, present, or future​
8686 3.21mental or physical health status. For purposes of this definition, mental or physical health​
8787 3.22status includes but is not limited to:​
8888 3.23 (1) individual health conditions, treatments, diseases, or diagnoses;​
8989 3.24 (2) social, psychological, behavioral, and medical interventions;​
9090 3.25 (3) health-related surgeries or procedures;​
9191 3.26 (4) use or purchase of medication;​
9292 3.27 (5) bodily functions, vital signs, symptoms, or measurements of the information described​
9393 3.28in this paragraph;​
9494 3.29 (6) diagnoses or diagnostic testing, treatment, or medication;​
9595 3.30 (7) biometric data;​
9696 3.31 (8) genetic information;​
9797 3​Section 1.​
9898 REVISOR VH/HL 25-04043​03/11/25 ​ 4.1 (9) specific geolocation data that could reasonably indicate a consumer's seeking or​
9999 4.2obtaining past, present, or future health care services or supplies;​
100100 4.3 (10) data that identifies a consumer's seeking or obtaining health care services or supplies​
101101 4.4in the past, present, or future;​
102102 4.5 (11) data that identifies a consumer's seeking or obtaining information about health care​
103103 4.6services or supplies in the past, present, or future; or​
104104 4.7 (12) any information that is derived or extrapolated from personal data but that is not​
105105 4.8itself health data that a controller or processor uses by any means, including algorithms,​
106106 4.9machine learning, or profiling, to associate or identify a consumer with the data described​
107107 4.10in clauses (1) to (11), such as proxy, derivative, inferred, or emergent data.​
108108 4.11 (n) (q) "Identified or identifiable natural person" means a person who can be readily​
109109 4.12identified, directly or indirectly.​
110110 4.13 (o) (r) "Known child" means a person under circumstances where a controller has actual​
111111 4.14knowledge of, or willfully disregards, that the person is under 13 years of age.​
112112 4.15 (p) (s) "Personal data" means any information that is linked or reasonably linkable to​
113113 4.16an identified or identifiable natural person. Personal data does not include deidentified data​
114114 4.17or publicly available information. For purposes of this paragraph, "publicly available​
115115 4.18information" means information that (1) is lawfully made available from federal, state, or​
116116 4.19local government records or widely distributed media, or (2) a controller has a reasonable​
117117 4.20basis to believe has lawfully been made available to the general public.​
118118 4.21 (q) (t) "Process" or "processing" means any operation or set of operations that are​
119119 4.22performed on personal data or on sets of personal data, whether or not by automated means,​
120120 4.23including but not limited to the collection, use, storage, disclosure, analysis, deletion, or​
121121 4.24modification of personal data.​
122122 4.25 (r) (u) "Processor" means a natural or legal person who processes personal data on behalf​
123123 4.26of a controller.​
124124 4.27 (s) (v) "Profiling" means any form of automated processing of personal data to evaluate,​
125125 4.28analyze, or predict personal aspects related to an identified or identifiable natural person's​
126126 4.29economic situation, health, personal preferences, interests, reliability, behavior, location,​
127127 4.30or movements.​
128128 4.31 (t) (w) "Pseudonymous data" means personal data that cannot be attributed to a specific​
129129 4.32natural person without the use of additional information, provided that the additional​
130130 4.33information is kept separately and is subject to appropriate technical and organizational​
131131 4​Section 1.​
132132 REVISOR VH/HL 25-04043​03/11/25 ​ 5.1measures to ensure that the personal data are not attributed to an identified or identifiable​
133133 5.2natural person.​
134134 5.3 (u) (x) "Sale," "sell," or "sold" means the exchange of personal data for monetary or​
135135 5.4other valuable consideration by the controller to a third party. Sale does not include sharing​
136136 5.5as defined in this section. Sale does not include the following:​
137137 5.6 (1) the disclosure of personal data to a processor who processes the personal data on​
138138 5.7behalf of the controller;​
139139 5.8 (2) the disclosure of personal data to a third party for purposes of providing a product​
140140 5.9or service requested by the consumer;​
141141 5.10 (3) the disclosure or transfer of personal data to an affiliate of the controller;​
142142 5.11 (4) the disclosure of information that the consumer intentionally made available to the​
143143 5.12general public via a channel of mass media and did not restrict to a specific audience;​
144144 5.13 (5) the disclosure or transfer of personal data to a third party as an asset that is part of a​
145145 5.14completed or proposed merger, acquisition, bankruptcy, or other transaction in which the​
146146 5.15third party assumes control of all or part of the controller's assets; or​
147147 5.16 (6) the exchange of personal data between the producer of a good or service and​
148148 5.17authorized agents of the producer who sell and service the goods and services, to enable​
149149 5.18the cooperative provisioning of goods and services by both the producer and the producer's​
150150 5.19agents.​
151151 5.20 (v) (y) Sensitive data is a form of personal data. "Sensitive data" means:​
152152 5.21 (1) personal data revealing racial or ethnic origin, religious beliefs, mental or physical​
153153 5.22health condition or diagnosis, sexual orientation, or citizenship or immigration status;​
154154 5.23 (2) the processing of biometric data or genetic information for the purpose of uniquely​
155155 5.24identifying an individual;​
156156 5.25 (3) the personal data of a known child; or​
157157 5.26 (4) specific geolocation data; or​
158158 5.27 (5) health data.​
159159 5.28 (z) "Share" or "sharing" means to release, disclose, disseminate, divulge, make available,​
160160 5.29provide access to, license, or otherwise communicate orally, in writing, or by electronic or​
161161 5.30other means, personal data. Share includes selling as defined in this section. Sharing does​
162162 5.31not include:​
163163 5​Section 1.​
164164 REVISOR VH/HL 25-04043​03/11/25 ​ 6.1 (1) the disclosure of personal data by a controller to a processor when the sharing is to​
165165 6.2provide goods or services in a manner consistent with the purpose for which the health data​
166166 6.3was collected and that was disclosed to the consumer;​
167167 6.4 (2) the disclosure of personal data to a third party with whom the consumer has a direct​
168168 6.5relationship when:​
169169 6.6 (i) the disclosure is for purposes of providing a product or service requested by the​
170170 6.7consumer;​
171171 6.8 (ii) the controller or processor maintains control and ownership of the data; and​
172172 6.9 (iii) the third party uses the personal data only as directed by the controller or processor​
173173 6.10and consistent with the purpose consented to by the consumer; or​
174174 6.11 (3) the disclosure or transfer of personal data to a third party as an asset that is part of a​
175175 6.12merger, acquisition, bankruptcy, or other transaction in which the third party assumes control​
176176 6.13of all or part of the controller's or processor's assets and complies with the requirements​
177177 6.14and obligations in this chapter.​
178178 6.15 (w) (aa) "Specific geolocation data" means information derived from technology,​
179179 6.16including but not limited to global positioning system level latitude and longitude coordinates​
180180 6.17or other mechanisms, that directly identifies the geographic coordinates of a consumer or​
181181 6.18a device linked to a consumer with an accuracy of more than three decimal degrees of​
182182 6.19latitude and longitude or the equivalent in an alternative geographic coordinate system, or​
183183 6.20a street address derived from the coordinates. Specific geolocation data does not include​
184184 6.21the content of communications, the contents of databases containing street address​
185185 6.22information which are accessible to the public as authorized by law, or any data generated​
186186 6.23by or connected to advanced utility metering infrastructure systems or other equipment for​
187187 6.24use by a public utility.​
188188 6.25 (x) (bb) "Targeted advertising" means displaying advertisements to a consumer where​
189189 6.26the advertisement is selected based on personal data obtained or inferred from the consumer's​
190190 6.27activities over time and across nonaffiliated websites or online applications to predict the​
191191 6.28consumer's preferences or interests. Targeted advertising does not include:​
192192 6.29 (1) advertising based on activities within a controller's own websites or online​
193193 6.30applications;​
194194 6.31 (2) advertising based on the context of a consumer's current search query or visit to a​
195195 6.32website or online application;​
196196 6​Section 1.​
197197 REVISOR VH/HL 25-04043​03/11/25 ​ 7.1 (3) advertising to a consumer in response to the consumer's request for information or​
198198 7.2feedback; or​
199199 7.3 (4) processing personal data solely for measuring or reporting advertising performance,​
200200 7.4reach, or frequency.​
201201 7.5 (y) (cc) "Third party" means a natural or legal person, public authority, agency, or body​
202202 7.6other than the consumer, controller, processor, or an affiliate of the processor or the controller.​
203203 7.7 (z) (dd) "Trade secret" has the meaning given in section 325C.01, subdivision 5.​
204204 7.8 Sec. 2. Minnesota Statutes 2024, section 325M.12, is amended to read:​
205205 7.9 325M.12 SCOPE; EXCLUSIONS.​
206206 7.10 Subdivision 1.Scope.(a) Except as specified under section 325M.175, sections 325M.10​
207207 7.11to 325M.21 apply to legal entities that conduct business in Minnesota or produce products​
208208 7.12or services that are targeted to residents of Minnesota, and that satisfy one or more of the​
209209 7.13following thresholds:​
210210 7.14 (1) during a calendar year, controls or processes personal data of 100,000 consumers or​
211211 7.15more, excluding personal data controlled or processed solely for the purpose of completing​
212212 7.16a payment transaction; or​
213213 7.17 (2) derives over 25 percent of gross revenue from the sale of personal data and processes​
214214 7.18or controls personal data of 25,000 consumers or more.​
215215 7.19 (b) A controller or processor acting as a technology provider under section 13.32 shall​
216216 7.20comply with sections 13.32 and 325M.10 to 325M.21, except that when the provisions of​
217217 7.21section 13.32 conflict with sections 325M.10 to 325M.21, section 13.32 prevails.​
218218 7.22 Subd. 2.Exclusions.(a) Sections 325M.10 to 325M.21 do not apply to the following​
219219 7.23entities, activities, or types of information:​
220220 7.24 (1) a government entity, as defined by section 13.02, subdivision 7a;​
221221 7.25 (2) a federally recognized Indian tribe;​
222222 7.26 (3) information that meets the definition of:​
223223 7.27 (i) protected health information, as defined by and for purposes of the Health Insurance​
224224 7.28Portability and Accountability Act of 1996, Public Law 104-191, and related regulations,​
225225 7.29if it is maintained by a covered entity or business associate subject to that law and its related​
226226 7.30regulations;​
227227 7​Sec. 2.​
228228 REVISOR VH/HL 25-04043​03/11/25 ​ 8.1 (ii) health records, as defined in section 144.291, subdivision 2, if it is maintained by a​
229229 8.2provider or other entity subject to the Minnesota Health Records Act;​
230230 8.3 (iii) patient identifying information for purposes of Code of Federal Regulations, title​
231231 8.442, part 2, established pursuant to United States Code, title 42, section 290dd-2;​
232232 8.5 (iv) identifiable private information for purposes of the federal policy for the protection​
233233 8.6of human subjects, Code of Federal Regulations, title 45, part 46; identifiable private​
234234 8.7information that is otherwise information collected as part of human subjects research​
235235 8.8pursuant to the good clinical practice guidelines issued by the International Council for​
236236 8.9Harmonisation; the protection of human subjects under Code of Federal Regulations, title​
237237 8.1021, parts 50 and 56; or personal data used or shared in research conducted in accordance​
238238 8.11with one or more of the requirements set forth in this paragraph;​
239239 8.12 (v) information and documents created for purposes of the federal Health Care Quality​
240240 8.13Improvement Act of 1986, Public Law 99-660, and related regulations; or​
241241 8.14 (vi) patient safety work product for purposes of Code of Federal Regulations, title 42,​
242242 8.15part 3, established pursuant to United States Code, title 42, sections 299b-21 to 299b-26;​
243243 8.16 (4) information that is derived from any of the health care-related information listed in​
244244 8.17clause (3), but that has been deidentified in accordance with the requirements for​
245245 8.18deidentification set forth in Code of Federal Regulations, title 45, part 164;​
246246 8.19 (5) information originating from, and intermingled to be indistinguishable with, any of​
247247 8.20the health care-related information listed in clause (3) that is maintained by:​
248248 8.21 (i) a covered entity or business associate, as defined by the Health Insurance Portability​
249249 8.22and Accountability Act of 1996, Public Law 104-191, and related regulations;​
250250 8.23 (ii) a health care provider, as defined in section 144.291, subdivision 2; or​
251251 8.24 (iii) a program or a qualified service organization, as defined by Code of Federal​
252252 8.25Regulations, title 42, part 2, established pursuant to United States Code, title 42, section​
253253 8.26290dd-2;​
254254 8.27 (6) information that is:​
255255 8.28 (i) maintained by an entity that meets the definition of health care provider under Code​
256256 8.29of Federal Regulations, title 45, section 160.103, to the extent that the entity maintains the​
257257 8.30information in the manner required of covered entities with respect to protected health​
258258 8.31information for purposes of the Health Insurance Portability and Accountability Act of​
259259 8.321996, Public Law 104-191, and related regulations;​
260260 8​Sec. 2.​
261261 REVISOR VH/HL 25-04043​03/11/25 ​ 9.1 (ii) included in a limited data set, as described under Code of Federal Regulations, title​
262262 9.245, part 164.514(e), to the extent that the information is used, disclosed, and maintained in​
263263 9.3the manner specified by that part;​
264264 9.4 (iii) maintained by, or maintained to comply with the rules or orders of, a self-regulatory​
265265 9.5organization as defined by United States Code, title 15, section 78c(a)(26);​
266266 9.6 (iv) originated from, or intermingled with, information described in clause (9) and that​
267267 9.7a licensed residential mortgage originator, as defined under section 58.02, subdivision 19,​
268268 9.8or residential mortgage servicer, as defined under section 58.02, subdivision 20, collects,​
269269 9.9processes, uses, or maintains in the same manner as required under the laws and regulations​
270270 9.10specified in clause (9); or​
271271 9.11 (v) originated from, or intermingled with, information described in clause (9) and that​
272272 9.12a nonbank financial institution, as defined by section 46A.01, subdivision 12, collects,​
273273 9.13processes, uses, or maintains in the same manner as required under the laws and regulations​
274274 9.14specified in clause (9);​
275275 9.15 (7) information used only for public health activities and purposes, as described under​
276276 9.16Code of Federal Regulations, title 45, part 164.512;​
277277 9.17 (8) an activity involving the collection, maintenance, disclosure, sale, communication,​
278278 9.18or use of any personal data bearing on a consumer's credit worthiness, credit standing, credit​
279279 9.19capacity, character, general reputation, personal characteristics, or mode of living by a​
280280 9.20consumer reporting agency, as defined in United States Code, title 15, section 1681a(f), by​
281281 9.21a furnisher of information, as set forth in United States Code, title 15, section 1681s-2, who​
282282 9.22provides information for use in a consumer report, as defined in United States Code, title​
283283 9.2315, section 1681a(d), and by a user of a consumer report, as set forth in United States Code,​
284284 9.24title 15, section 1681b, except that information is only excluded under this paragraph to the​
285285 9.25extent that the activity involving the collection, maintenance, disclosure, sale, communication,​
286286 9.26or use of the information by the agency, furnisher, or user is subject to regulation under the​
287287 9.27federal Fair Credit Reporting Act, United States Code, title 15, sections 1681 to 1681x, and​
288288 9.28the information is not collected, maintained, used, communicated, disclosed, or sold except​
289289 9.29as authorized by the Fair Credit Reporting Act;​
290290 9.30 (9) personal data collected, processed, sold, or disclosed pursuant to the federal​
291291 9.31Gramm-Leach-Bliley Act, Public Law 106-102, and implementing regulations, if the​
292292 9.32collection, processing, sale, or disclosure is in compliance with that law;​
293293 9​Sec. 2.​
294294 REVISOR VH/HL 25-04043​03/11/25 ​ 10.1 (10) personal data collected, processed, sold, or disclosed pursuant to the federal Driver's​
295295 10.2Privacy Protection Act of 1994, United States Code, title 18, sections 2721 to 2725, if the​
296296 10.3collection, processing, sale, or disclosure is in compliance with that law;​
297297 10.4 (11) personal data regulated by the federal Family Educational Rights and Privacy Act,​
298298 10.5United States Code, title 20, section 1232g, and implementing regulations;​
299299 10.6 (12) personal data collected, processed, sold, or disclosed pursuant to the federal Farm​
300300 10.7Credit Act of 1971, as amended, United States Code, title 12, sections 2001 to 2279cc, and​
301301 10.8implementing regulations, Code of Federal Regulations, title 12, part 600, if the collection,​
302302 10.9processing, sale, or disclosure is in compliance with that law;​
303303 10.10 (13) data collected or maintained:​
304304 10.11 (i) in the course of an individual acting as a job applicant to or an employee, owner,​
305305 10.12director, officer, medical staff member, or contractor of a business if the data is collected​
306306 10.13and used solely within the context of the role;​
307307 10.14 (ii) as the emergency contact information of an individual under item (i) if used solely​
308308 10.15for emergency contact purposes; or​
309309 10.16 (iii) that is necessary for the business to retain to administer benefits for another individual​
310310 10.17relating to the individual under item (i) if used solely for the purposes of administering those​
311311 10.18benefits;​
312312 10.19 (14) personal data collected, processed, sold, or disclosed pursuant to the Minnesota​
313313 10.20Insurance Fair Information Reporting Act in sections 72A.49 to 72A.505;​
314314 10.21 (15) data collected, processed, sold, or disclosed as part of a payment-only credit, check,​
315315 10.22or cash transaction where no data about consumers, as defined in section 325M.11, are​
316316 10.23retained;​
317317 10.24 (16) a state or federally chartered bank or credit union, or an affiliate or subsidiary that​
318318 10.25is principally engaged in financial activities, as described in United States Code, title 12,​
319319 10.26section 1843(k);​
320320 10.27 (17) information that originates from, or is intermingled so as to be indistinguishable​
321321 10.28from, information described in clause (8) and that a person licensed under chapter 56 collects,​
322322 10.29processes, uses, or maintains in the same manner as is required under the laws and regulations​
323323 10.30specified in clause (8);​
324324 10.31 (18) an insurance company, as defined in section 60A.02, subdivision 4, an insurance​
325325 10.32producer, as defined in section 60K.31, subdivision 6, a third-party administrator of​
326326 10​Sec. 2.​
327327 REVISOR VH/HL 25-04043​03/11/25 ​ 11.1self-insurance, or an affiliate or subsidiary of any entity identified in this clause that is​
328328 11.2principally engaged in financial activities, as described in United States Code, title 12,​
329329 11.3section 1843(k), except that this clause does not apply to a person that, alone or in​
330330 11.4combination with another person, establishes and maintains a self-insurance program that​
331331 11.5does not otherwise engage in the business of entering into policies of insurance;​
332332 11.6 (19) a small business, as defined by the United States Small Business Administration​
333333 11.7under Code of Federal Regulations, title 13, part 121, except that a small business identified​
334334 11.8in this clause is subject to section 325M.17;​
335335 11.9 (20) (19) a nonprofit organization that is established to detect and prevent fraudulent​
336336 11.10acts in connection with insurance; and​
337337 11.11 (21) (20) an air carrier subject to the federal Airline Deregulation Act, Public Law​
338338 11.1295-504, only to the extent that an air carrier collects personal data related to prices, routes,​
339339 11.13or services and only to the extent that the provisions of the Airline Deregulation Act preempt​
340340 11.14the requirements of sections 325M.10 to 325M.21.​
341341 11.15 (b) Controllers that are in compliance with the Children's Online Privacy Protection Act,​
342342 11.16United States Code, title 15, sections 6501 to 6506, and implementing regulations, shall be​
343343 11.17deemed compliant with any obligation to obtain parental consent under sections 325M.10​
344344 11.18to 325M.21 section 325M.16, subdivision 2, paragraph (g).​
345345 11.19Sec. 3. Minnesota Statutes 2024, section 325M.16, subdivision 2, is amended to read:​
346346 11.20 Subd. 2.Use of data.(a) A controller must limit the collection of personal data to what​
347347 11.21is adequate, relevant, and reasonably necessary in relation to the purposes for which the​
348348 11.22data are processed, which must be disclosed to the consumer.​
349349 11.23 (b) Except as provided in sections 325M.10 to 325M.21, a controller may not process​
350350 11.24personal data for purposes that are not reasonably necessary to, or compatible with, the​
351351 11.25purposes for which the personal data are processed, as disclosed to the consumer, unless​
352352 11.26the controller obtains the consumer's consent.​
353353 11.27 (c) A controller shall establish, implement, and maintain reasonable administrative,​
354354 11.28technical, and physical data security practices to protect the confidentiality, integrity, and​
355355 11.29accessibility of personal data, including the maintenance of an inventory of the data that​
356356 11.30must be managed to exercise these responsibilities. The data security practices shall be​
357357 11.31appropriate to the volume and nature of the personal data at issue.​
358358 11.32 (d) Except as otherwise provided in sections 325M.10 to 325M.21, A controller may​
359359 11.33not process sensitive data concerning a consumer without obtaining the consumer's consent,​
360360 11​Sec. 3.​
361361 REVISOR VH/HL 25-04043​03/11/25 ​ 12.1or, in the case of the processing of except with the consumer's consent to the processing for​
362362 12.2a specified purpose.​
363363 12.3 (e) A controller may not share a consumer's sensitive data with any party other than the​
364364 12.4consumer except with the consumer's consent to the specified sharing.​
365365 12.5 (f) A consumer's consent to share sensitive data under paragraph (e) must be separate​
366366 12.6and distinct from a consumer's consent to process the consumer's health data under paragraph​
367367 12.7(d). A consent under this subdivision must be obtained prior to the processing or sharing,​
368368 12.8as applicable, of the sensitive data. Any request for consent under this subdivision must​
369369 12.9clearly and conspicuously disclose:​
370370 12.10 (1) the categories of sensitive data processed or shared, as applicable;​
371371 12.11 (2) the purpose of the processing or sharing, as applicable, of the sensitive data, including​
372372 12.12the specific ways in which it will be used;​
373373 12.13 (3) the categories of entities with which the sensitive data is shared; and​
374374 12.14 (4) how the consumer can withdraw consent from future processing or sharing of the​
375375 12.15consumer's sensitive data.​
376376 12.16 (g) A controller may not process personal data concerning a known child, without​
377377 12.17obtaining consent from the child's parent or lawful guardian, in accordance with the​
378378 12.18requirement of the Children's Online Privacy Protection Act, United States Code, title 15,​
379379 12.19sections 6501 to 6506, and its implementing regulations, rules, and exemptions.​
380380 12.20 (e) (h) A controller shall provide an effective mechanism for a consumer, or, in the case​
381381 12.21of the processing of personal data concerning a known child, the child's parent or lawful​
382382 12.22guardian, to revoke previously given consent under this subdivision. The mechanism provided​
383383 12.23shall be at least as easy as the mechanism by which the consent was previously given. Upon​
384384 12.24revocation of consent, a controller shall cease to process the applicable data as soon as​
385385 12.25practicable, but not later than 15 days after the receipt of the request.​
386386 12.26 (f) (i) A controller may not process the personal data of a consumer for purposes of​
387387 12.27targeted advertising, or sell the consumer's personal data, without the consumer's consent,​
388388 12.28under circumstances where the controller knows that the consumer is between the ages of​
389389 12.2913 and 16.​
390390 12.30 (g) (j) A controller may not retain personal data that is no longer relevant and reasonably​
391391 12.31necessary in relation to the purposes for which the data were collected and processed, unless​
392392 12.32retention of the data is otherwise required by law or permitted under section 325M.19.​
393393 12​Sec. 3.​
394394 REVISOR VH/HL 25-04043​03/11/25 ​ 13.1 Sec. 4. [325M.175] REQUIREMENTS FOR THE SALE OF SENSITIVE DATA.​
395395 13.2 Subdivision 1.Scope; exclusions.(a) Notwithstanding section 325M.12, subdivision​
396396 13.31, a legal entity must comply with sections 325M.10 to 325M.21 as if it were a controller​
397397 13.4or processor if that legal entity:​
398398 13.5 (1) conducts business in Minnesota or produces products or services that are targeted to​
399399 13.6residents of Minnesota; and​
400400 13.7 (2) is a controller or processor of sensitive data.​
401401 13.8 (b) The requirements and restrictions specific to sensitive data in this section are in​
402402 13.9addition to the requirements and restrictions in sections 325M.10 to 325M.21 for personal​
403403 13.10data generally, including the requirements for sensitive data under section 325M.16,​
404404 13.11subdivision 2, paragraphs (d) to (f).​
405405 13.12 (c) The exclusions in section 325M.12, subdivision 2, apply to this section.​
406406 13.13 Subd. 2.Requirements specific to the sale of sensitive data.(a) It is unlawful for any​
407407 13.14person to sell or offer to sell a consumer's sensitive data without first obtaining valid​
408408 13.15authorization from the consumer. The sale of a consumer's sensitive data must be consistent​
409409 13.16with the valid authorization signed by the consumer. This authorization must be separate​
410410 13.17and distinct from a consent obtained by a controller to process or share sensitive data under​
411411 13.18section 325M.16, subdivision 2, paragraphs (d) to (f).​
412412 13.19 (b) A valid authorization to sell a consumer's sensitive data is a document consistent​
413413 13.20with this subdivision and must be written in plain language. A valid authorization to sell a​
414414 13.21consumer's sensitive data must contain the following:​
415415 13.22 (1) the specific sensitive data, concerning the specific consumer, that the person intends​
416416 13.23to sell;​
417417 13.24 (2) the name and contact information of the person collecting and selling the sensitive​
418418 13.25data;​
419419 13.26 (3) the name and contact information of the person purchasing the sensitive data from​
420420 13.27the seller identified in clause (2);​
421421 13.28 (4) a description of the purpose for the sale, including how the sensitive data will be​
422422 13.29gathered and how it will be used by the purchaser identified in clause (3) when sold;​
423423 13.30 (5) a statement that the provision of goods or services to the consumer may not be​
424424 13.31conditioned on the consumer signing the valid authorization;​
425425 13​Sec. 4.​
426426 REVISOR VH/HL 25-04043​03/11/25 ​ 14.1 (6) a statement that the consumer has a right to revoke the valid authorization at any​
427427 14.2time and a description of how to submit a revocation of the valid authorization;​
428428 14.3 (7) a statement that the consumer's sensitive data sold pursuant to the valid authorization​
429429 14.4may be subject to redisclosure by the purchaser and may no longer be protected by this​
430430 14.5section;​
431431 14.6 (8) an expiration date for the valid authorization that expires one year from when the​
432432 14.7consumer signs the valid authorization; and​
433433 14.8 (9) the signature of the consumer and date.​
434434 14.9 (c) An authorization is not valid if the document has any of the following defects:​
435435 14.10 (1) the expiration date has passed;​
436436 14.11 (2) the authorization does not contain all of the information required under this​
437437 14.12subdivision;​
438438 14.13 (3) the authorization has been revoked by the consumer;​
439439 14.14 (4) the authorization has been combined with other documents to create a compound​
440440 14.15authorization; or​
441441 14.16 (5) the provision of goods or services to the consumer is conditioned on the consumer​
442442 14.17signing the authorization.​
443443 14.18 (d) A copy of the signed valid authorization must be provided to the consumer.​
444444 14.19 (e) The seller and purchaser of the sensitive data must retain a copy of all valid​
445445 14.20authorizations for sale of sensitive data for six years from the date of its signature or the​
446446 14.21date when it was last in effect, whichever is later.​
447447 14.22Sec. 5. [325M.178] GEOFENCE RESTRICTIONS.​
448448 14.23 It is unlawful for any person to implement a geofence around an entity that provides​
449449 14.24in-person health care services or supplies where the geofence is used to:​
450450 14.25 (1) identify or track a consumer seeking health care services or supplies;​
451451 14.26 (2) collect health data from a consumer; or​
452452 14.27 (3) send notifications, messages, or advertisements to a consumer related to the​
453453 14.28consumer's health data or health care services or supplies.​
454454 14​Sec. 5.​
455455 REVISOR VH/HL 25-04043​03/11/25 ​ 15.1 Sec. 6. Minnesota Statutes 2024, section 325M.18, is amended to read:​
456456 15.2 325M.18 DATA PRIVACY POLICIES; DATA PRIVACY AND PROTECTION​
457457 15.3ASSESSMENTS.​
458458 15.4 (a) A controller must document and maintain a description of the policies and procedures​
459459 15.5the controller has adopted to comply with sections 325M.10 to 325M.21. The description​
460460 15.6must include, where applicable:​
461461 15.7 (1) the name and contact information for the controller's chief privacy officer or other​
462462 15.8individual with primary responsibility for directing the policies and procedures implemented​
463463 15.9to comply with the provisions of sections 325M.10 to 325M.21; and​
464464 15.10 (2) a description of the controller's data privacy policies and procedures which reflect​
465465 15.11the requirements in section sections 325M.16 and, where applicable, 325M.175, and any​
466466 15.12policies and procedures designed to:​
467467 15.13 (i) reflect the requirements of sections 325M.10 to 325M.21 in the design of the​
468468 15.14controller's systems;​
469469 15.15 (ii) identify and provide personal data to a consumer as required by sections 325M.10​
470470 15.16to 325M.21;​
471471 15.17 (iii) establish, implement, and maintain reasonable administrative, technical, and physical​
472472 15.18data security practices to protect the confidentiality, integrity, and accessibility of personal​
473473 15.19data, including the maintenance of an inventory of the data that must be managed to exercise​
474474 15.20the responsibilities under this item;​
475475 15.21 (iv) limit the collection of personal data to what is adequate, relevant, and reasonably​
476476 15.22necessary in relation to the purposes for which the data are processed;​
477477 15.23 (v) prevent the retention of personal data that is no longer relevant and reasonably​
478478 15.24necessary in relation to the purposes for which the data were collected and processed, unless​
479479 15.25retention of the data is otherwise required by law or permitted under section 325M.19; and​
480480 15.26 (vi) identify and remediate violations of sections 325M.10 to 325M.21.​
481481 15.27 (b) A controller must conduct and document a data privacy and protection assessment​
482482 15.28for each of the following processing activities involving personal data:​
483483 15.29 (1) the processing of personal data for purposes of targeted advertising;​
484484 15.30 (2) the sale of personal data;​
485485 15.31 (3) the processing, sharing, or sale of sensitive data;​
486486 15​Sec. 6.​
487487 REVISOR VH/HL 25-04043​03/11/25 ​ 16.1 (4) any processing activities involving personal data that present a heightened risk of​
488488 16.2harm to consumers; and​
489489 16.3 (5) the processing of personal data for purposes of profiling, where the profiling presents​
490490 16.4a reasonably foreseeable risk of:​
491491 16.5 (i) unfair or deceptive treatment of, or disparate impact on, consumers;​
492492 16.6 (ii) financial, physical, or reputational injury to consumers;​
493493 16.7 (iii) a physical or other intrusion upon the solitude or seclusion, or the private affairs or​
494494 16.8concerns, of consumers, where the intrusion would be offensive to a reasonable person; or​
495495 16.9 (iv) other substantial injury to consumers.​
496496 16.10 (c) A data privacy and protection assessment must take into account the type of personal​
497497 16.11data to be processed by the controller, including the extent to which the personal data are​
498498 16.12sensitive data, and the context in which the personal data are to be processed.​
499499 16.13 (d) A data privacy and protection assessment must identify and weigh the benefits that​
500500 16.14may flow directly and indirectly from the processing to the controller, consumer, other​
501501 16.15stakeholders, and the public against the potential risks to the rights of the consumer associated​
502502 16.16with the processing, as mitigated by safeguards that can be employed by the controller to​
503503 16.17reduce the potential risks. The use of deidentified data and the reasonable expectations of​
504504 16.18consumers, as well as the context of the processing and the relationship between the controller​
505505 16.19and the consumer whose personal data will be processed, must be factored into this​
506506 16.20assessment by the controller.​
507507 16.21 (e) A data privacy and protection assessment must include the description of policies​
508508 16.22and procedures required by paragraph (a).​
509509 16.23 (f) As part of a civil investigative demand, the attorney general may request, in writing,​
510510 16.24that a controller disclose any data privacy and protection assessment that is relevant to an​
511511 16.25investigation conducted by the attorney general. The controller must make a data privacy​
512512 16.26and protection assessment available to the attorney general upon a request made under this​
513513 16.27paragraph. The attorney general may evaluate the data privacy and protection assessments​
514514 16.28for compliance with sections 325M.10 to 325M.21. Data privacy and protection assessments​
515515 16.29are classified as nonpublic data, as defined by section 13.02, subdivision 9. The disclosure​
516516 16.30of a data privacy and protection assessment pursuant to a request from the attorney general​
517517 16.31under this paragraph does not constitute a waiver of the attorney-client privilege or work​
518518 16.32product protection with respect to the assessment and any information contained in the​
519519 16.33assessment.​
520520 16​Sec. 6.​
521521 REVISOR VH/HL 25-04043​03/11/25 ​ 17.1 (g) Data privacy and protection assessments or risk assessments conducted by a controller​
522522 17.2for the purpose of compliance with other laws or regulations may qualify under this section​
523523 17.3if the assessments have a similar scope and effect.​
524524 17.4 (h) A single data protection assessment may address multiple sets of comparable​
525525 17.5processing operations that include similar activities.​
526526 17.6 Sec. 7. Minnesota Statutes 2024, section 325M.20, is amended to read:​
527527 17.7 325M.20 ATTORNEY GENERAL ENFORCEMENT .​
528528 17.8 (a) In the event that a controller or processor violates sections 325M.10 to 325M.21, the​
529529 17.9attorney general, prior to filing an enforcement action under paragraph (b), must provide​
530530 17.10the controller or processor with a warning letter identifying the specific provisions of sections​
531531 17.11325M.10 to 325M.21 the attorney general alleges have been or are being violated. If, after​
532532 17.1230 days of issuance of the warning letter, the attorney general believes the controller or​
533533 17.13processor has failed to cure any alleged violation, the attorney general may bring an​
534534 17.14enforcement action under paragraph (b). This paragraph expires January 31, 2026.​
535535 17.15 (b) The attorney general may bring a civil action against a controller or processor to​
536536 17.16enforce a provision of sections 325M.10 to 325M.21 in accordance with section 8.31. If the​
537537 17.17state prevails in an action to enforce sections 325M.10 to 325M.21, the state may, in addition​
538538 17.18to penalties provided by paragraph (c) or other remedies provided by law, be allowed an​
539539 17.19amount determined by the court to be the reasonable value of all or part of the state's litigation​
540540 17.20expenses incurred.​
541541 17.21 (c) Any controller or processor that violates sections 325M.10 to 325M.21 is subject to​
542542 17.22an injunction and liable for a civil penalty of not more than $7,500 for each violation.​
543543 17.23 (d) Nothing in sections 325M.10 to 325M.21 establishes a private right of action,​
544544 17.24including under section 8.31, subdivision 3a, for a violation of sections 325M.10 to 325M.21​
545545 17.25or any other law.​
546546 17.26 (e) A person that violates an applicable provision of sections 325M.10 to 325M.21, but​
547547 17.27that is not a controller or processor, is subject to enforcement by the attorney general under​
548548 17.28this section as if the person were a controller or processor.​
549549 17.29Sec. 8. REPEALER.​
550550 17.30 Minnesota Statutes 2024, section 325M.17, is repealed.​
551551 17​Sec. 8.​
552552 REVISOR VH/HL 25-04043​03/11/25 ​ 18.1 Sec. 9. EFFECTIVE DATE.​
553553 18.2 This act is effective July 31, 2025, except that postsecondary institutions regulated by​
554554 18.3the Office of Higher Education are not required to comply with this act until July 31, 2029.​
555555 18​Sec. 9.​
556556 REVISOR VH/HL 25-04043​03/11/25 ​ 325M.17 REQUIREMENTS FOR SMALL BUSINESSES.​
557557 (a) A small business, as defined by the United States Small Business Administration under Code​
558558 of Federal Regulations, title 13, part 121, that conducts business in Minnesota or produces products​
559559 or services that are targeted to residents of Minnesota, must not sell a consumer's sensitive data​
560560 without the consumer's prior consent.​
561561 (b) Penalties and attorney general enforcement procedures under section 325M.20 apply to a​
562562 small business that violates this section.​
563563 1R​
564564 APPENDIX​
565565 Repealed Minnesota Statutes: 25-04043​