House File 2506 H-8157 Amend House File 2506 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < Section 1. NEW SECTION . 715D.1 Definitions. 4 As used in this chapter, unless the context otherwise 5 requires: 6 1. “Affiliate” means a legal entity that controls, is 7 controlled by, or is under common control with another legal 8 entity or shares common branding with another legal entity. 9 For the purposes of this definition, “control” or “controlled” 10 means: 11 a. Ownership of, or the power to vote, more than fifty 12 percent of the outstanding shares of any class of voting 13 security of a company. 14 b. Control in any manner over the election of a majority of 15 the directors or of individuals exercising similar functions. 16 c. The power to exercise controlling influence over the 17 management of a company. 18 2. “Aggregate data” means information that relates to a 19 group or category of consumers, from which individual consumer 20 identities have been removed, that is not linked or reasonably 21 linkable to any consumer. 22 3. “Authenticate” means verifying through reasonable means 23 that a consumer, entitled to exercise their consumer rights in 24 section 715D.3, is the same consumer exercising such consumer 25 rights with respect to the personal data at issue. 26 4. “Biometric data” means data generated by automatic 27 measurements of an individual’s biological characteristics, 28 such as a fingerprint, voiceprint, eye retinas, irises, or 29 other unique biological patterns or characteristics that is 30 used to identify a specific individual. “Biometric data” 31 does not include a physical or digital photograph, a video or 32 audio recording or data generated therefrom, or information 33 collected, used, or stored for health care treatment, payment, 34 or operations under HIPAA. 35 -1- HF 2506.3553 (1) 89 es/rn 1/ 20 #1.

5. “Child” means any natural person younger than thirteen 1 years of age. 2 6. “Consent” means a clear affirmative act signifying a 3 consumer’s freely given, specific, informed, and unambiguous 4 agreement to process personal data relating to the consumer. 5 “Consent” may include a written statement, including a 6 statement written by electronic means, or any other unambiguous 7 affirmative action. 8 7. “Consumer” means a natural person who is a resident of 9 the state acting only in an individual or household context and 10 excluding a natural person acting in a commercial or employment 11 context. 12 8. “Controller” means a person that, alone or jointly with 13 others, determines the purpose and means of processing personal 14 data. 15 9. “Covered entity” means the same as “covered entity” 16 defined by HIPAA. 17 10. “De-identified data” means data that cannot reasonably 18 be linked to an identified or identifiable natural person. 19 11. “Fund” means the consumer education and litigation fund 20 established pursuant to section 714.16C. 21 12. “Health care provider” means any of the following: 22 a. A general hospital, ambulatory surgical or treatment 23 center, skilled nursing center, or assisted living center 24 licensed or certified by the state. 25 b. A psychiatric hospital licensed by the state. 26 c. A hospital operated by the state. 27 d. A hospital operated by the state board of regents. 28 e. A person licensed to practice medicine or osteopathy in 29 the state. 30 f. A person licensed to furnish health care policies or 31 plans in the state. 32 g. A person licensed to practice dentistry in the state. 33 h. “Health care provider” does not include a continuing care 34 retirement community or any nursing facility of a religious 35 -2- HF 2506.3553 (1) 89 es/rn 2/ 20

body which depends upon prayer alone for healing. 1 13. “Health Insurance Portability and Accountability 2 Act” or “HIPAA” means the Health Insurance Portability and 3 Accountability Act of 1996, Pub. L. No. 104-191, including 4 amendments thereto and regulations promulgated thereunder. 5 14. “Health record” means any written, printed, or 6 electronically recorded material maintained by a health care 7 provider in the course of providing health services to an 8 individual concerning the individual and the services provided, 9 including related health information provided in confidence to 10 a health care provider. 11 15. “Identified or identifiable natural person” means a 12 person who can be readily identified, directly or indirectly. 13 16. “Institution of higher education” means nonprofit 14 private institutions of higher education and proprietary 15 private institutions of higher education in the state, 16 community colleges, and each associate-degree-granting and 17 baccalaureate public institutions of higher education in the 18 state. 19 17. “Nonprofit organization” means any corporation organized 20 under chapter 504, any organization exempt from taxation 21 under sections 501(c)(3), 501(c)(6), or 501(c)(12) of the 22 Internal Revenue Code, any organization exempt from taxation 23 under section 501(c)(4) of the Internal Revenue Code that 24 is established to detect or prevent insurance-related crime 25 or fraud, and any subsidiaries and affiliates of entities 26 organized pursuant to chapter 499. 27 18. “Personal data” means any information that is linked or 28 reasonably linkable to an identified or identifiable natural 29 person. “Personal data” does not include de-identified or 30 aggregate data or publicly available information. 31 19. “Precise geolocation data” means information derived 32 from technology, including but not limited to global 33 positioning system level latitude and longitude coordinates or 34 other mechanisms, that identifies the specific location of a 35 -3- HF 2506.3553 (1) 89 es/rn 3/ 20

natural person with precision and accuracy within a radius of 1 one thousand seven hundred fifty feet. “Precise geolocation 2 data” does not include the content of communications, or any 3 data generated by or connected to advanced utility metering 4 infrastructure systems or equipment for use by a utility. 5 20. “Process” or “processing” means any operation or set 6 of operations performed, whether by manual or automated means, 7 on personal data or on sets of personal data, such as the 8 collection, use, storage, disclosure, analysis, deletion, or 9 modification of personal data. 10 21. “Processor” means a person that processes personal data 11 on behalf of a controller. 12 22. “Protected health information” means the same as 13 protected health information established by HIPAA. 14 23. “Pseudonymous data” means personal data that cannot 15 be attributed to a specific natural person without the use 16 of additional information, provided that such additional 17 information is kept separately and is subject to appropriate 18 technical and organizational measures to ensure that 19 the personal data is not attributed to an identified or 20 identifiable natural person. 21 24. “Publicly available information” means information 22 that is lawfully made available through federal, state, or 23 local government records, or information that a business has 24 reasonable basis to believe is lawfully made available to 25 the general public through widely distributed media, by the 26 consumer, or by a person to whom the consumer has disclosed the 27 information, unless the consumer has restricted the information 28 to a specific audience. 29 25. “Sale of personal data” means the exchange of personal 30 data for monetary consideration by the controller to a third 31 party. “Sale of personal data” does not include: 32 a. The disclosure of personal data to a processor that 33 processes the personal data on behalf of the controller. 34 b. The disclosure of personal data to a third party for 35 -4- HF 2506.3553 (1) 89 es/rn 4/ 20

purposes of providing a product or service requested by the 1 consumer or a parent of a child. 2 c. The disclosure or transfer of personal data to an 3 affiliate of the controller. 4 d. The disclosure of information that the consumer 5 intentionally made available to the general public via a 6 channel of mass media and did not restrict to a specific 7 audience. 8 e. The disclosure or transfer of personal data when a 9 consumer uses or directs a controller to intentionally disclose 10 personal data or intentionally interact with one or more third 11 parties. 12 f. The disclosure or transfer of personal data to a third 13 party as an asset that is part of a proposed or actual merger, 14 acquisition, bankruptcy, or other transaction in which the 15 third party assumes control of all or part of the controller’s 16 assets. 17 26. “Sensitive data” means a category of personal data that 18 includes the following: 19 a. Racial or ethnic origin, religious beliefs, mental or 20 physical health diagnosis, sexual orientation, or citizenship 21 or immigration status, except to the extent such data is used 22 in order to avoid discrimination on the basis of a protected 23 class that would violate a federal or state anti-discrimination 24 law. 25 b. Genetic or biometric data that is processed for the 26 purpose of uniquely identifying a natural person. 27 c. The personal data collected from a known child. 28 d. Precise geolocation data. 29 27. “State agency” means the same as defined in 129 IAC 30 10.2(8B). 31 28. “Targeted advertising” means displaying advertisements 32 to a consumer where the advertisement is selected based on 33 personal data obtained from that consumer’s activities over 34 time and across nonaffiliated websites or online applications 35 -5- HF 2506.3553 (1) 89 es/rn 5/ 20

to predict such consumer’s preferences or interests. “Targeted 1 advertising” does not include the following: 2 a. Advertisements based on activities within a controller’s 3 own or affiliated websites or online applications. 4 b. Advertisements based on the context of a consumer’s 5 current search query, visit to a website, or online 6 application. 7 c. Advertisements directed to a consumer in response to the 8 consumer’s request for information or feedback. 9 d. Processing personal data solely for measuring or 10 reporting advertising performance, reach, or frequency. 11 29. “Third party” means a natural or legal person, public 12 authority, agency, or body other than the consumer, controller, 13 processor, or an affiliate of the processor or the controller. 14 30. “Trade secret” means information, including but not 15 limited to a formula, pattern, compilation, program, device, 16 method, technique, or process, that consists of the following: 17 a. Information that derives independent economic value, 18 actual or potential, from not being generally known to, and not 19 being readily ascertainable by proper means by, other persons 20 who can obtain economic value from its disclosure or use. 21 b. Information that is the subject of efforts that are 22 reasonable under the circumstances to maintain its secrecy. 23 Sec. 2. NEW SECTION . 715D.2 Scope and exemptions. 24 1. This chapter applies to a person conducting business in 25 the state or producing products or services that are targeted 26 to consumers who are residents of the state and that during a 27 calendar year does either of the following: 28 a. Controls or processes personal data of at least one 29 hundred thousand consumers. 30 b. Controls or processes personal data of at least 31 twenty-five thousand consumers and derives over fifty percent 32 of gross revenue from the sale of personal data. 33 2. This chapter shall not apply to the state or any 34 political subdivision of the state; financial institutions, 35 -6- HF 2506.3553 (1) 89 es/rn 6/ 20

affiliates of financial institutions, or data subject to Tit. V 1 of the federal Gramm-Leach-Bliley Act of 1999, 15 U.S.C. §6801 2 et seq.; covered entities or business associates governed by 3 the privacy, security, and breach notification rules issued by 4 the Iowa department of human services and the Iowa department 5 of public health; 45 C.F.R. pts. 160 and 164 established 6 pursuant to HIPAA; nonprofit organizations; or institutions of 7 higher education. 8 3. The following information and data is exempt from this 9 chapter: 10 a. Protected health information under HIPAA. 11 b. Health records. 12 c. Patient identifying information for purposes of 42 U.S.C. 13 §290dd-2. 14 d. Identifiable private information for purposes of the 15 federal policy for the protection of human subjects under 45 16 C.F.R. pt. 46. 17 e. Identifiable private information that is otherwise 18 information collected as part of human subjects research 19 pursuant to the good clinical practice guidelines issued by 20 the international council for harmonization of technical 21 requirements for pharmaceuticals for human use. 22 f. The protection of human subjects under 21 C.F.R. pts. 6, 23 50, and 56. 24 g. Personal data used or shared in research conducted in 25 accordance with the requirements set forth in this chapter, or 26 other research conducted in accordance with applicable law. 27 h. Information and documents created for purposes of the 28 federal Health Care Quality Improvement Act of 1986, 42 U.S.C. 29 §11101 et seq. 30 i. Patient safety work product for purposes of the federal 31 Patient Safety and Quality Improvement Act, 42 U.S.C. §299b-21 32 et seq. 33 j. Information derived from any of the health care-related 34 information listed in this subsection that is de-identified in 35 -7- HF 2506.3553 (1) 89 es/rn 7/ 20

accordance with the requirements for de-identification pursuant 1 to HIPAA. 2 k. Information originating from, and intermingled to be 3 indistinguishable with, or information treated in the same 4 manner as information exempt under this subsection that is 5 maintained by a covered entity or business associate as defined 6 by HIPAA or a program or a qualified service organization as 7 defined by 42 U.S.C. §290dd-2. 8 l. Information used only for public health activities and 9 purposes as authorized by HIPAA. 10 m. The collection, maintenance, disclosure, sale, 11 communication, or use of any personal information bearing on a 12 consumer’s credit worthiness, credit standing, credit capacity, 13 character, general reputation, personal characteristics, or 14 mode of living by a consumer reporting agency or furnisher that 15 provides information for use in a consumer report, and by a 16 user of a consumer report, but only to the extent that such 17 activity is regulated by and authorized under the federal Fair 18 Credit Reporting Act, 15 U.S.C. §1681 et seq. 19 n. Personal data collected, processed, sold, or disclosed in 20 compliance with the federal Driver’s Privacy Protection Act of 21 1994, 18 U.S.C. §2721 et seq. 22 o. Personal data regulated by the federal Family Educational 23 Rights and Privacy Act, 20 U.S.C. §1232 et seq. 24 p. Personal data collected, processed, sold, or disclosed in 25 compliance with the federal Farm Credit Act, 12 U.S.C., §2001 26 et seq. 27 q. Data processed or maintained as follows: 28 (1) In the course of an individual applying to, employed 29 by, or acting as an agent or independent contractor of a 30 controller, processor, or third party, to the extent that the 31 data is collected and used within the context of that role. 32 (2) As the emergency contact information of an individual 33 under this chapter used for emergency contact purposes. 34 (3) That is necessary to retain to administer benefits 35 -8- HF 2506.3553 (1) 89 es/rn 8/ 20

for another individual relating to the individual under 1 subparagraph (1) and used for the purposes of administering 2 those benefits. 3 r. Personal data used in accordance with the federal 4 Children’s Online Privacy Protection Act, 15 U.S.C. §6501 - 5 6506, and its rules, regulations, and exceptions thereto. 6 Sec. 3. NEW SECTION . 715D.3 Consumer data rights. 7 1. A consumer may invoke the consumer rights authorized 8 pursuant to this section at any time by submitting a request to 9 the controller, through the means specified by the controller 10 pursuant to section 715D.4, subsection 6, specifying the 11 consumer rights the consumer wishes to invoke. A known child’s 12 parent or legal guardian may invoke such consumer rights 13 on behalf of the known child regarding processing personal 14 data belonging to the child. A controller shall comply with 15 an authenticated consumer request to exercise all of the 16 following: 17 a. To confirm whether a controller is processing the 18 consumer’s personal data and to access such personal data. 19 b. To delete personal data provided by the consumer. 20 c. To obtain a copy of the consumer’s personal data, except 21 as to personal data that is defined as “personal information” 22 pursuant to section 715C.1 that is subject to security breach 23 protection, that the consumer previously provided to the 24 controller in a portable and, to the extent technically 25 practicable, readily usable format that allows the consumer 26 to transmit the data to another controller without hindrance, 27 where the processing is carried out by automated means. 28 d. To opt out of targeted advertising or the sale of 29 personal data. 30 2. Except as otherwise provided in this chapter, a 31 controller shall comply with a request by a consumer to 32 exercise the consumer rights authorized pursuant to this 33 section as follows: 34 a. A controller shall respond to the consumer without undue 35 -9- HF 2506.3553 (1) 89 es/rn 9/ 20

delay, but in all cases within forty-five days of receipt 1 of a request submitted pursuant to the methods described in 2 this section. The response period may be extended once by 3 forty-five additional days when reasonably necessary upon 4 considering the complexity and number of the consumer’s 5 requests by informing the consumer of any such extension within 6 the initial forty-five-day response period, together with the 7 reason for the extension. 8 b. If a controller declines to take action regarding the 9 consumer’s request, the controller shall inform the consumer 10 without undue delay of the justification for declining to take 11 action, except in the case of a suspected fraudulent request, 12 in which case the controller may state that the controller was 13 unable to authenticate the request. The controller shall also 14 provide instructions for appealing the decision pursuant to 15 subsection 3. 16 c. Information provided in response to a consumer request 17 shall be provided by a controller free of charge, up to 18 twice annually per consumer. If a request from a consumer 19 is manifestly unfounded, excessive, repetitive, technically 20 unfeasible, or the controller reasonably believes that the 21 primary purpose of the request is not to exercise a consumer 22 right, the controller may charge the consumer a reasonable fee 23 to cover the administrative costs of complying with the request 24 or decline to act on the request. The controller bears the 25 burden of demonstrating the manifestly unfounded, excessive, 26 repetitive, or technically unfeasible nature of the request. 27 d. If a controller is unable to authenticate a request 28 using commercially reasonable efforts, the controller shall 29 not be required to comply with a request to initiate an action 30 under this section and may request that the consumer provide 31 additional information reasonably necessary to authenticate the 32 consumer and the consumer’s request. 33 3. A controller shall establish a process for a consumer 34 to appeal the controller’s refusal to take action on a request 35 -10- HF 2506.3553 (1) 89 es/rn 10/ 20

within a reasonable period of time after the consumer’s 1 receipt of the decision pursuant to this section. The appeal 2 process shall be conspicuously available and similar to the 3 process for submitting requests to initiate action pursuant 4 to this section. Within sixty days of receipt of an appeal, 5 a controller shall inform the consumer in writing of any 6 action taken or not taken in response to the appeal, including 7 a written explanation of the reasons for the decision. If 8 the appeal is denied, the controller shall also provide the 9 consumer with an online mechanism through which the consumer 10 may contact the attorney general to submit a complaint. 11 Sec. 4. NEW SECTION . 715D.4 Data controller duties. 12 1. A controller shall adopt and implement reasonable 13 administrative, technical, and physical data security practices 14 to protect the confidentiality, integrity, and accessibility 15 of personal data. Such data security practices shall be 16 appropriate to the volume and nature of the personal data 17 at issue. A controller shall not process sensitive data 18 concerning a consumer or a nonexempt purpose without the 19 consumer having been presented with clear notice and an 20 opportunity to opt out of such processing, or, in the case of 21 the processing of sensitive data concerning a known child, 22 without processing such data in accordance with the federal 23 Children’s Online Privacy Protection Act, 15 U.S.C. §6501 et 24 seq. 25 2. A controller shall not process personal data in 26 violation of state and federal laws that prohibit unlawful 27 discrimination against a consumer. A controller shall not 28 discriminate against a consumer for exercising any of the 29 consumer rights contained in this chapter, including denying 30 goods or services, charging different prices or rates for 31 goods or services, or providing a different level of quality 32 of goods and services to the consumer. However, nothing in 33 this chapter shall be construed to require a controller to 34 provide a product or service that requires the personal data 35 -11- HF 2506.3553 (1) 89 es/rn 11/ 20

of a consumer that the controller does not collect or maintain 1 or to prohibit a controller from offering a different price, 2 rate, level, quality, or selection of goods or services to a 3 consumer, including offering goods or services for no fee, 4 if the consumer has exercised the consumer’s right to opt 5 out pursuant to section 715D.3 or the offer is related to a 6 consumer’s voluntary participation in a bona fide loyalty, 7 rewards, premium features, discounts, or club card program. 8 3. Any provision of a contract or agreement that purports to 9 waive or limit in any way consumer rights pursuant to section 10 715D.3 shall be deemed contrary to public policy and shall be 11 void and unenforceable. 12 4. A controller shall provide consumers with a reasonably 13 accessible, clear, and meaningful privacy notice that includes 14 the following: 15 a. The categories of personal data processed by the 16 controller. 17 b. The purpose for processing personal data. 18 c. How consumers may exercise their consumer rights pursuant 19 to section 715D.3, including how a consumer may appeal a 20 controller’s decision with regard to the consumer’s request. 21 d. The categories of personal data that the controller 22 shares with third parties, if any. 23 e. The categories of third parties, if any, with whom the 24 controller shares personal data. 25 5. If a controller sells a consumer’s personal data to third 26 parties or engages in targeted advertising, the controller 27 shall clearly and conspicuously disclose such activity, as well 28 as the manner in which a consumer may exercise the right to opt 29 out of such activity. 30 6. A controller shall establish, and shall describe in 31 a privacy notice, secure and reliable means for consumers to 32 submit a request to exercise their consumer rights under this 33 chapter. Such means shall consider the ways in which consumers 34 normally interact with the controller, the need for secure and 35 -12- HF 2506.3553 (1) 89 es/rn 12/ 20

reliable communication of such requests, and the ability of 1 the controller to authenticate the identity of the consumer 2 making the request. A controller shall not require a consumer 3 to create a new account in order to exercise consumer rights 4 pursuant to section 715D.3, but may require a consumer to use 5 an existing account. 6 Sec. 5. NEW SECTION . 715D.5 Processor duties. 7 1. A processor shall assist a controller in duties 8 required under this chapter, taking into account the nature of 9 processing and the information available to the processor by 10 appropriate technical and organizational measures, insofar as 11 is reasonably practicable, as follows: 12 a. To fulfill the controller’s obligation to respond to 13 consumer rights requests pursuant to section 715D.3. 14 b. To meet the controller’s obligations in relation to the 15 security of processing the personal data and in relation to the 16 notification of a security breach of the processor pursuant to 17 section 715C.2. 18 2. A contract between a controller and a processor shall 19 govern the processor’s data processing procedures with respect 20 to processing performed on behalf of the controller. The 21 contract shall clearly set forth instructions for processing 22 personal data, the nature and purpose of processing, the type 23 of data subject to processing, the duration of processing, and 24 the rights and duties of both parties. The contract shall also 25 include requirements that the processor shall do all of the 26 following: 27 a. Ensure that each person processing personal data is 28 subject to a duty of confidentiality with respect to the data. 29 b. At the controller’s direction, delete or return all 30 personal data to the controller as requested at the end of the 31 provision of services, unless retention of the personal data 32 is required by law. 33 c. Upon the reasonable request of the controller, make 34 available to the controller all information in the processor’s 35 -13- HF 2506.3553 (1) 89 es/rn 13/ 20

possession necessary to demonstrate the processor’s compliance 1 with the obligations in this chapter. 2 d. Engage any subcontractor or agent pursuant to a written 3 contract in accordance with this section that requires the 4 subcontractor to meet the duties of the processor with respect 5 to the personal data. 6 3. Nothing in this section shall be construed to relieve a 7 controller or a processor from imposed liabilities by virtue 8 of the controller or processor’s role in the processing 9 relationship as defined by this chapter. 10 4. Determining whether a person is acting as a controller or 11 processor with respect to a specific processing of data is a 12 fact-based determination that depends upon the context in which 13 personal data is to be processed. A processor that continues 14 to adhere to a controller’s instructions with respect to a 15 specific processing of personal data remains a processor. 16 Sec. 6. NEW SECTION . 715D.6 Processing data —— exemptions. 17 1. Nothing in this chapter shall be construed to require the 18 following: 19 a. A controller or processor to re-identify de-identified 20 data or pseudonymous data. 21 b. Maintaining data in identifiable form. 22 c. Collecting, obtaining, retaining, or accessing any 23 data or technology, in order to be capable of associating an 24 authenticated consumer request with personal data. 25 2. Nothing in this chapter shall be construed to require 26 a controller or processor to comply with an authenticated 27 consumer rights request, pursuant to section 715D.3, if all of 28 the following apply: 29 a. The controller is not reasonably capable of associating 30 the request with the personal data or it would be unreasonably 31 burdensome for the controller to associate the request with the 32 personal data. 33 b. The controller does not use the personal data to 34 recognize or respond to the specific consumer who is the 35 -14- HF 2506.3553 (1) 89 es/rn 14/ 20

subject of the personal data, or associate the personal data 1 with other personal data about the same specific consumer. 2 c. The controller does not sell the personal data to any 3 third party or otherwise voluntarily disclose the personal data 4 to any third party other than a processor, except as otherwise 5 permitted in this chapter. 6 3. Consumer rights contained in sections 715D.3 and 715D.4 7 shall not apply to pseudonymous data in cases where the 8 controller is able to demonstrate any information necessary 9 to identify the consumer is kept separately and is subject to 10 appropriate technical and organizational measures to ensure 11 that the personal data is not attributed to an identified or 12 identifiable natural person. 13 4. Controllers that disclose pseudonymous data or de- 14 identified data shall exercise reasonable oversight to monitor 15 compliance with any contractual commitments to which the 16 pseudonymous data or de-identified data is subject and shall 17 take appropriate steps to address any breaches of those 18 contractual commitments. 19 Sec. 7. NEW SECTION . 715D.7 Limitations. 20 1. Nothing in this chapter shall be construed to restrict a 21 controller’s or processor’s ability to do the following: 22 a. Comply with federal, state, or local laws, rules, or 23 regulations. 24 b. Comply with a civil, criminal, or regulatory inquiry, 25 investigation, subpoena, or summons by federal, state, local, 26 or other governmental authorities. 27 c. Cooperate with law enforcement agencies concerning 28 conduct or activity that the controller or processor reasonably 29 and in good faith believes may violate federal, state, or local 30 laws, rules, or regulations. 31 d. Investigate, establish, exercise, prepare for, or defend 32 legal claims. 33 e. Provide a product or service specifically requested by a 34 consumer or parent or guardian of a child, perform a contract 35 -15- HF 2506.3553 (1) 89 es/rn 15/ 20

to which the consumer or parent or guardian of a child is a 1 party, including fulfilling the terms of a written warranty, or 2 take steps at the request of the consumer or parent or guardian 3 of a child prior to entering into a contract. 4 f. Take immediate steps to protect an interest that is 5 essential for the life or physical safety of the consumer or 6 of another natural person, and where the processing cannot be 7 manifestly based on another legal basis. 8 g. Prevent, detect, protect against, or respond to security 9 incidents, identity theft, fraud, harassment, malicious or 10 deceptive activities, or any illegal activity. 11 h. Preserve the integrity or security of systems. 12 i. Investigate, report, or prosecute those responsible for 13 any such action. 14 j. Engage in public or peer-reviewed scientific or 15 statistical research in the public interest that adheres to 16 all other applicable ethics and privacy laws and is approved, 17 monitored, and governed by an institutional review board, or 18 similar independent oversight entities that determine the 19 following: 20 (1) If the deletion of the information is likely to provide 21 substantial benefits that do not exclusively accrue to the 22 controller. 23 (2) The expected benefits of the research outweigh the 24 privacy risks. 25 (3) If the controller has implemented reasonable safeguards 26 to mitigate privacy risks associated with research, including 27 any risks associated with re-identification. 28 k. Assist another controller, processor, or third party with 29 any of the obligations under this subsection. 30 2. The obligations imposed on a controller or processor 31 under this chapter shall not restrict a controller’s or 32 processor’s ability to collect, use, or retain data as follows: 33 a. To conduct internal research to develop, improve, or 34 repair products, services, or technology. 35 -16- HF 2506.3553 (1) 89 es/rn 16/ 20

b. To effectuate a product recall. 1 c. To identify and repair technical errors that impair 2 existing or intended functionality. 3 d. To perform internal operations that are reasonably 4 aligned with the expectations of the consumer or reasonably 5 anticipated based on the consumer’s existing relationship with 6 the controller or are otherwise compatible with processing 7 data in furtherance of the provision of a product or service 8 specifically requested by a consumer or parent or guardian of a 9 child or the performance of a contract to which the consumer or 10 parent or guardian of a child is a party. 11 3. The obligations imposed on controllers or processors 12 under this chapter shall not apply where compliance by the 13 controller or processor with this chapter would violate an 14 evidentiary privilege under the laws of the state. Nothing 15 in this chapter shall be construed to prevent a controller or 16 processor from providing personal data concerning a consumer to 17 a person covered by an evidentiary privilege under the laws of 18 the state as part of a privileged communication. 19 4. A controller or processor that discloses personal data 20 to a third-party controller or processor, in compliance with 21 the requirements of this chapter, is not in violation of 22 this chapter if the third-party controller or processor that 23 receives and processes such personal data is in violation of 24 this chapter, provided that, at the time of disclosing the 25 personal data, the disclosing controller or processor did not 26 have actual knowledge that the recipient intended to commit a 27 violation. A third-party controller or processor receiving 28 personal data from a controller or processor in compliance with 29 the requirements of this chapter is likewise not in violation 30 of this chapter for the offenses of the controller or processor 31 from which it receives such personal data. 32 5. Nothing in this chapter shall be construed as an 33 obligation imposed on a controller or a processor that 34 adversely affects the privacy or other rights or freedoms 35 -17- HF 2506.3553 (1) 89 es/rn 17/ 20

of any persons, such as exercising the right of free speech 1 pursuant to the First Amendment to the United States 2 Constitution, or applies to personal data by a person in the 3 course of a purely personal or household activity. 4 6. Personal data processed by a controller pursuant to 5 this section shall not be processed for any purpose other than 6 those expressly listed in this section unless otherwise allowed 7 by this chapter. Personal data processed by a controller 8 pursuant to this section may be processed to the extent that 9 such processing is as follows: 10 a. Reasonably necessary and proportionate to the purposes 11 listed in this section. 12 b. Adequate, relevant, and limited to what is necessary 13 in relation to the specific purposes listed in this section. 14 Personal data collected, used, or retained pursuant to 15 this section shall, where applicable, take into account 16 the nature and purpose or purposes of such collection, use, 17 or retention. Such data shall be subject to reasonable 18 administrative, technical, and physical measures to protect the 19 confidentiality, integrity, and accessibility of the personal 20 data. 21 7. If a controller processes personal data pursuant to an 22 exemption in this section, the controller bears the burden of 23 demonstrating that such processing qualifies for the exemption 24 and complies with the requirements in subsection 6. 25 8. Processing personal data for the purposes expressly 26 identified in subsection 1 shall not in and of itself make an 27 entity a controller with respect to such processing. 28 9. This chapter shall not require a controller, processor, 29 third party, or consumer to disclose trade secrets. 30 Sec. 8. NEW SECTION . 715D.8 Enforcement —— penalties. 31 1. The attorney general shall have exclusive authority to 32 enforce the provisions of this chapter. Whenever the attorney 33 general has reasonable cause to believe that any person has 34 engaged in, is engaging in, or is about to engage in any 35 -18- HF 2506.3553 (1) 89 es/rn 18/ 20

violation of this chapter, the attorney general is empowered to 1 issue a civil investigative demand. The provisions of section 2 685.6 shall apply to civil investigative demands issued under 3 this chapter. 4 2. Prior to initiating any action under this chapter, 5 the attorney general shall provide a controller or processor 6 thirty days’ written notice identifying the specific provisions 7 of this chapter the attorney general alleges have been or 8 are being violated. If within the thirty-day period, the 9 controller or processor cures the noticed violation and 10 provides the attorney general an express written statement that 11 the alleged violations have been cured and that no further such 12 violations shall occur, no action shall be initiated against 13 the controller or processor. 14 3. If a controller or processor continues to violate this 15 chapter following the cure period in subsection 2 or breaches 16 an express written statement provided to the attorney general 17 under that subsection, the attorney general may initiate an 18 action in the name of the state and may seek an injunction to 19 restrain any violations of this chapter and civil penalties of 20 up to seven thousand five hundred dollars for each violation 21 under this chapter. Any moneys collected under this section 22 including civil penalties, costs, attorney fees, or amounts 23 which are specifically directed shall be paid into the consumer 24 education and litigation fund established under section 25 714.16C. 26 4. The attorney general may recover reasonable expenses 27 incurred in investigating and preparing the case, including 28 attorney fees, in any action initiated under this chapter. 29 5. Nothing in this chapter shall be construed as providing 30 the basis for, or be subject to, a private right of action for 31 violations of this chapter or under any other law. 32 Sec. 9. NEW SECTION . 715D.9 Preemption. 33 1. This chapter supersedes and preempts all rules, 34 regulations, codes, ordinances, and other laws adopted by a 35 -19- HF 2506.3553 (1) 89 es/rn 19/ 20

city, county, municipality, or local agency regarding the 1 processing of personal data by controllers or processors. 2 2. Any reference to federal, state, or local law or statute 3 in this chapter shall be deemed to include any accompanying 4 rules or regulations or exemptions thereto, or in the case of a 5 federal agency, guidance issued by such agency thereto. 6 Sec. 10. EFFECTIVE DATE. This Act takes effect January 1, 7 2024. > 8 ______________________________ SORENSEN of Adair -20- HF 2506.3553 (1) 89 es/rn 20/ 20