House File 2506 - Introduced HOUSE FILE 2506 BY COMMITTEE ON INFORMATION TECHNOLOGY (SUCCESSOR TO HSB 674) A BILL FOR An Act relating to consumer data protection, providing civil 1 penalties, and including effective date provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5349HV (3) 89 es/rn

H.F. 2506 Section 1. NEW SECTION . 715D.1 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. “Affiliate” means a legal entity that controls, is 4 controlled by, or is under common control with another legal 5 entity or shares common branding with another legal entity. 6 For the purposes of this definition, “control” or “controlled” 7 means: 8 a. Ownership of, or the power to vote, more than fifty 9 percent of the outstanding shares of any class of voting 10 security of a company. 11 b. Control in any manner over the election of a majority of 12 the directors or of individuals exercising similar functions. 13 c. The power to exercise controlling influence over the 14 management of a company. 15 2. “Aggregate data” means information that relates to a 16 group or category of consumers, from which individual consumer 17 identities have been removed, that is not linked or reasonably 18 linkable to any consumer. 19 3. “Authenticate” means verifying through reasonable means 20 that a consumer, entitled to exercise their consumer rights in 21 section 715D.3, is the same consumer exercising such consumer 22 rights with respect to the personal data at issue. 23 4. “Biometric data” means data generated by automatic 24 measurements of an individual’s biological characteristics, 25 such as a fingerprint, voiceprint, eye retinas, irises, or 26 other unique biological patterns or characteristics that is 27 used to identify a specific individual. “Biometric data” 28 does not include a physical or digital photograph, a video or 29 audio recording or data generated therefrom, or information 30 collected, used, or stored for health care treatment, payment, 31 or operations under HIPAA. 32 5. “Child” means any natural person younger than thirteen 33 years of age. 34 6. “Consent” means a clear affirmative act signifying a 35 -1- LSB 5349HV (3) 89 es/rn 1/ 26

H.F. 2506 consumer’s freely given, specific, informed, and unambiguous 1 agreement to process personal data relating to the consumer. 2 “Consent” may include a written statement, including a 3 statement written by electronic means, or any other unambiguous 4 affirmative action. 5 7. “Consumer” means a natural person who is a resident of 6 the state acting only in an individual or household context and 7 excluding a natural person acting in a commercial or employment 8 context. 9 8. “Controller” means a person that, alone or jointly with 10 others, determines the purpose and means of processing personal 11 data. 12 9. “Covered entity” means the same as “covered entity” 13 defined by HIPAA. 14 10. “Decisions that produce legal or similarly significant 15 effects concerning a consumer” means a decision made by a 16 controller that results in the provision or denial by the 17 controller of financial and lending services, housing, 18 insurance, education enrollment, criminal justice, employment 19 opportunities, health care services, or access to basic 20 necessities, such as food and water. 21 11. “De-identified data” means data that cannot reasonably 22 be linked to an identified or identifiable natural person. 23 12. “Health care provider” means any of the following: 24 a. A general hospital, ordinary hospital, outpatient 25 surgical hospital, nursing home, or certified nursing facility 26 licensed or certified by the state. 27 b. A mental or psychiatric hospital licensed by the state. 28 c. A hospital operated by the state. 29 d. A hospital operated by universities within the state. 30 e. A person licensed to practice medicine or osteopathy in 31 the state. 32 f. A person licensed to furnish health care policies or 33 plans in the state. 34 g. A person licensed to practice dentistry in the state. 35 -2- LSB 5349HV (3) 89 es/rn 2/ 26

H.F. 2506 h. “Health care provider” does not include a continuing 1 care retirement community or any nursing care facility of a 2 religious body which depends upon prayer alone for healing. 3 13. “Health Insurance Portability and Accountability 4 Act” or “HIPAA” means the Health Insurance Portability and 5 Accountability Act of 1996, Pub. L. No. 104-191, including 6 amendments thereto and regulations promulgated thereunder. 7 14. “Health record” means any written, printed, or 8 electronically recorded material maintained by a health care 9 provider in the course of providing health services to an 10 individual concerning the individual and the services provided, 11 including related health information provided in confidence to 12 a health care provider. 13 15. “Identified or identifiable natural person” means a 14 person who can be readily identified, directly or indirectly. 15 16. “Institution of higher education” means nonprofit 16 private institutions of higher education and proprietary 17 private institutions of higher education in the state, 18 community colleges, and each associate-degree-granting and 19 baccalaureate public institutions of higher education in the 20 state. 21 17. “Nonprofit organization” means any corporation organized 22 under chapter 504, any organization exempt from taxation under 23 sections 501(c)(3), 501(c)(6), or 501(c)(12) of the Internal 24 Revenue Code, and any subsidiaries and affiliates of entities 25 organized pursuant to chapter 499. 26 18. “Personal data” means any information that is linked or 27 reasonably linkable to an identified or identifiable natural 28 person. “Personal data” does not include de-identified data or 29 publicly available information. 30 19. “Precise geolocation data” means information derived 31 from technology, including but not limited to global 32 positioning system level latitude and longitude coordinates or 33 other mechanisms, that identifies the specific location of a 34 natural person with precision and accuracy within a radius of 35 -3- LSB 5349HV (3) 89 es/rn 3/ 26

H.F. 2506 one thousand seven hundred fifty feet. “Precise geolocation 1 data” does not include the content of communications, or any 2 data generated by or connected to advanced utility metering 3 infrastructure systems or equipment for use by a utility. 4 20. “Process” or “processing” means any operation or set 5 of operations performed, whether by manual or automated means, 6 on personal data or on sets of personal data, such as the 7 collection, use, storage, disclosure, analysis, deletion, or 8 modification of personal data. 9 21. “Processor” means a person that processes personal data 10 on behalf of a controller. 11 22. “Profiling” means any form of solely automated 12 processing performed on personal data to evaluate, analyze, 13 or predict personal aspects related to an identified or 14 identifiable natural person’s economic situation, health, 15 personal preferences, interests, reliability, behavior, 16 location, or movements. 17 23. “Protected health information” means the same as 18 protected health information established by HIPAA. 19 24. “Pseudonymous data” means personal data that cannot 20 be attributed to a specific natural person without the use 21 of additional information, provided that such additional 22 information is kept separately and is subject to appropriate 23 technical and organizational measures to ensure that 24 the personal data is not attributed to an identified or 25 identifiable natural person. 26 25. “Publicly available information” means information 27 that is lawfully made available through federal, state, or 28 local government records, or information that a business has 29 reasonable basis to believe is lawfully made available to 30 the general public through widely distributed media, by the 31 consumer, or by a person to whom the consumer has disclosed the 32 information, unless the consumer has restricted the information 33 to a specific audience. 34 26. “Sale of personal data” means the exchange of personal 35 -4- LSB 5349HV (3) 89 es/rn 4/ 26

H.F. 2506 data for monetary or other valuable consideration by the 1 controller to a third party. “ Sale of personal data” does not 2 include: 3 a. The disclosure of personal data to a processor that 4 processes the personal data on behalf of the controller. 5 b. The disclosure of personal data to a third party for 6 purposes of providing a product or service requested by the 7 consumer or a parent of a child. 8 c. The disclosure or transfer of personal data to an 9 affiliate of the controller. 10 d. The disclosure of information that the consumer 11 intentionally made available to the general public via a 12 channel of mass media and did not restrict to a specific 13 audience. 14 e. The disclosure or transfer of personal data to a third 15 party as an asset that is part of a proposed or actual merger, 16 acquisition, bankruptcy, or other transaction in which the 17 third party assumes control of all or part of the controller’s 18 assets. 19 27. “Sensitive data” means a category of personal data that 20 includes the following: 21 a. Personal data revealing racial or ethnic origin, 22 religious beliefs, mental or physical health diagnosis, sexual 23 orientation, or citizenship or immigration status. 24 b. Genetic or biometric data that is processed for the 25 purpose of uniquely identifying a natural person. 26 c. The personal data collected from a known child. 27 d. Precise geolocation data. 28 28. “Targeted advertising” means displaying advertisements 29 to a consumer where the advertisement is selected based on 30 personal data obtained from that consumer’s activities over 31 time and across nonaffiliated websites or online applications 32 to predict such consumer’s preferences or interests. “Targeted 33 advertising” does not include the following: 34 a. Advertisements based on activities within a controller’s 35 -5- LSB 5349HV (3) 89 es/rn 5/ 26

H.F. 2506 own or affiliated websites or online applications. 1 b. Advertisements based on the context of a consumer’s 2 current search query, visit to a website, or online 3 application. 4 c. Advertisements directed to a consumer in response to the 5 consumer’s request for information or feedback. 6 d. Processing personal data solely for measuring or 7 reporting advertising performance, reach, or frequency. 8 29. “Third party” means a natural or legal person, public 9 authority, agency, or body other than the consumer, controller, 10 processor, or an affiliate of the processor or the controller. 11 30. “Trade secret” means information, including but not 12 limited to a formula, pattern, compilation, program, device, 13 method, technique, or process, that consists of the following: 14 a. Information that derives independent economic value, 15 actual or potential, from not being generally known to, and not 16 being readily ascertainable by proper means by, other persons 17 who can obtain economic value from its disclosure or use. 18 b. Information that is the subject of efforts that are 19 reasonable under the circumstances to maintain its secrecy. 20 Sec. 2. NEW SECTION . 715D.2 Scope and exemptions. 21 1. This chapter applies to a person conducting business in 22 the state or producing products or services that are targeted 23 to residents of the state and that during a calendar year does 24 either of the following: 25 a. Controls or processes personal data of at least one 26 hundred thousand consumers. 27 b. Controls or processes personal data of at least 28 twenty-five thousand consumers and derive over fifty percent of 29 gross revenue from the sale of personal data. 30 2. This chapter shall not apply to the state or any 31 political subdivision of the state, financial institutions 32 or data subject to Tit. V of the federal Gramm-Leach-Bliley 33 Act of 1999, 15 U.S.C. §6801 et seq., covered entities or 34 business associates governed by the privacy, security, and 35 -6- LSB 5349HV (3) 89 es/rn 6/ 26

H.F. 2506 breach notification rules issued by the Iowa department of 1 human services, the Iowa department of public health, 45 C.F.R. 2 pts. 160 and 164 established pursuant to HIPAA, nonprofit 3 organizations, or institutions of higher education. 4 3. The following information and data is exempt from this 5 chapter: 6 a. Protected health information under HIPAA. 7 b. Health records. 8 c. Patient identifying information for purposes of 42 U.S.C. 9 §290dd-2. 10 d. Identifiable private information for purposes of the 11 federal policy for the protection of human subjects under 45 12 C.F.R. pt. 46. 13 e. Identifiable private information that is otherwise 14 information collected as part of human subjects research 15 pursuant to the good clinical practice guidelines issued by 16 the international council for harmonisation of technical 17 requirements for pharmaceuticals for human use. 18 f. The protection of human subjects under 21 C.F.R. pts. 6, 19 50, and 56. 20 g. Personal data used or shared in research conducted in 21 accordance with the requirements set forth in this chapter, or 22 other research conducted in accordance with applicable law. 23 h. Information and documents created for purposes of the 24 federal Health Care Quality Improvement Act of 1986, 42 U.S.C. 25 §11101 et seq. 26 i. Patient safety work product for purposes of the federal 27 Patient Safety And Quality Improvement Act, 42 U.S.C. §299b-21 28 et seq. 29 j. Information derived from any of the health care-related 30 information listed in this subsection that is de-identified in 31 accordance with the requirements for de-identification pursuant 32 to HIPAA. 33 k. Information originating from, and intermingled to be 34 indistinguishable with, or information treated in the same 35 -7- LSB 5349HV (3) 89 es/rn 7/ 26

H.F. 2506 manner as information exempt under this subsection that is 1 maintained by a covered entity or business associate as defined 2 by HIPAA or a program or a qualified service organization as 3 defined by 42 U.S.C. §290dd-2. 4 l. Information used only for public health activities and 5 purposes as authorized by HIPAA. 6 m. The collection, maintenance, disclosure, sale, 7 communication, or use of any personal information bearing on a 8 consumer’s credit worthiness, credit standing, credit capacity, 9 character, general reputation, personal characteristics, or 10 mode of living by a consumer reporting agency or furnisher that 11 provides information for use in a consumer report, and by a 12 user of a consumer report, but only to the extent that such 13 activity is regulated by and authorized under the federal Fair 14 Credit Reporting Act, 15 U.S.C. §1681. 15 n. Personal data collected, processed, sold, or disclosed in 16 compliance with the federal Driver’s Privacy Protection Act of 17 1994, 18 U.S.C. §2721 et seq. 18 o. Personal data regulated by the federal Family Educational 19 Rights and Privacy Act, 20 U.S.C. §1232 et seq. 20 p. Personal data collected, processed, sold, or disclosed in 21 compliance with the federal Farm Credit Act, 12 U.S.C. §2001 22 et seq. 23 q. Data processed or maintained as follows: 24 (1) In the course of an individual applying to, employed 25 by, or acting as an agent or independent contractor of a 26 controller, processor, or third party, to the extent that the 27 data is collected and used within the context of that role. 28 (2) As the emergency contact information of an individual 29 under this chapter used for emergency contact purposes. 30 (3) That is necessary to retain to administer benefits 31 for another individual relating to the individual under 32 subparagraph (1) and used for the purposes of administering 33 those benefits. 34 r. Personal data used in accordance with the federal 35 -8- LSB 5349HV (3) 89 es/rn 8/ 26

H.F. 2506 Children’s Online Privacy Protection Act, 15 U.S.C. §6501 – 1 6506, and its rules, regulations, and exceptions thereto. 2 Sec. 3. NEW SECTION . 715D.3 Consumer data rights. 3 1. A consumer may invoke the consumer rights authorized 4 pursuant to this section at any time by submitting a request to 5 a controller specifying the consumer rights the consumer wishes 6 to invoke. A known child’s parent or legal guardian may invoke 7 such consumer rights on behalf of the known child regarding 8 processing personal data belonging to the child. A controller 9 shall comply with an authenticated consumer request to exercise 10 all of the following: 11 a. To confirm whether a controller is processing the 12 consumer’s personal data and to access such personal data. 13 b. To correct inaccuracies in the consumer’s personal data, 14 taking into account the nature of the personal data and the 15 purposes of the processing of the consumer’s personal data. 16 c. To delete personal data provided by or obtained about 17 the consumer. 18 d. To obtain a copy of the consumer’s personal data that the 19 consumer previously provided to the controller in a portable 20 and, to the extent technically practicable, readily usable 21 format that allows the consumer to transmit the data to another 22 controller without hindrance, where the processing is carried 23 out by automated means. 24 e. To opt out of the processing of the personal data for 25 purposes of targeted advertising, the sale of personal data, 26 or profiling in furtherance of decisions that produce legal or 27 similarly significant effects concerning the consumer. 28 2. Except as otherwise provided in this chapter, a 29 controller shall comply with a request by a consumer to 30 exercise the consumer rights authorized pursuant to this 31 section as follows: 32 a. A controller shall respond to the consumer without undue 33 delay, but in all cases within forty-five days of receipt 34 of a request submitted pursuant to the methods described in 35 -9- LSB 5349HV (3) 89 es/rn 9/ 26

H.F. 2506 this section. The response period may be extended once by 1 forty-five additional days when reasonably necessary upon 2 considering the complexity and number of the consumer’s 3 requests by informing the consumer of any such extension within 4 the initial forty-five-day response period, together with the 5 reason for the extension. 6 b. If a controller declines to take action regarding the 7 consumer’s request, the controller shall inform the consumer 8 without undue delay of the justification for declining to take 9 action and instructions for how to appeal the decision pursuant 10 to this section. 11 c. Information provided in response to a consumer request 12 shall be provided by a controller free of charge, up to 13 twice annually per consumer. If a request from a consumer 14 is manifestly unfounded, excessive, or repetitive, the 15 controller may charge the consumer a reasonable fee to cover 16 the administrative costs of complying with the request or 17 decline to act on the request. The controller bears the burden 18 of demonstrating the manifestly unfounded, excessive, or 19 repetitive nature of the request. 20 d. If a controller is unable to authenticate a request 21 using commercially reasonable efforts, the controller shall 22 not be required to comply with a request to initiate an action 23 under this section and may request that the consumer provide 24 additional information reasonably necessary to authenticate the 25 consumer and the consumer’s request. 26 3. A controller shall establish a process for a consumer 27 to appeal the controller’s refusal to take action on a request 28 within a reasonable period of time after the consumer’s 29 receipt of the decision pursuant to this section. The appeal 30 process shall be conspicuously available and similar to the 31 process for submitting requests to initiate action pursuant 32 to this section. Within sixty days of receipt of an appeal, 33 a controller shall inform the consumer in writing of any 34 action taken or not taken in response to the appeal, including 35 -10- LSB 5349HV (3) 89 es/rn 10/ 26

H.F. 2506 a written explanation of the reasons for the decision. If 1 the appeal is denied, the controller shall also provide the 2 consumer with an online mechanism through which the consumer 3 may contact the attorney general to submit a complaint. 4 Sec. 4. NEW SECTION . 715D.4 Data controller duties. 5 1. A controller shall limit the collection of personal 6 data to what is adequate, relevant, and reasonably necessary 7 in relation to the purposes for which such data is processed, 8 as disclosed to the consumer. Except as otherwise provided 9 in this chapter, a controller shall not process personal 10 data for purposes that are neither reasonably necessary to 11 nor compatible with the disclosed purposes for which such 12 personal data is processed, as disclosed to the consumer, 13 unless the controller obtains the consumer’s consent. A 14 controller shall adopt and implement reasonable administrative, 15 technical, and physical data security practices to protect the 16 confidentiality, integrity, and accessibility of personal data. 17 Such data security practices shall be appropriate to the volume 18 and nature of the personal data at issue. A controller shall 19 not process sensitive data without the consumer’s consent, or, 20 in the case of the processing of sensitive data concerning a 21 known child, without processing such data in accordance with 22 the federal Children’s Online Privacy Protection Act, 15 U.S.C. 23 §6501 et seq. 24 2. A controller shall not process personal data in 25 violation of state and federal laws that prohibit unlawful 26 discrimination against a consumer. A controller shall not 27 discriminate against a consumer for exercising any of the 28 consumer rights contained in this chapter, including denying 29 goods or services, charging different prices or rates for 30 goods or services, or providing a different level of quality 31 of goods and services to the consumer. However, nothing in 32 this chapter shall be construed to require a controller to 33 provide a product or service that requires the personal data 34 of a consumer that the controller does not collect or maintain 35 -11- LSB 5349HV (3) 89 es/rn 11/ 26

H.F. 2506 or to prohibit a controller from offering a different price, 1 rate, level, quality, or selection of goods or services to a 2 consumer, including offering goods or services for no fee, 3 if the consumer has exercised his right to opt out pursuant 4 to section 715D.3 or the offer is related to a consumer’s 5 voluntary participation in a bona fide loyalty, rewards, 6 premium features, discounts, or club card program. 7 3. Any provision of a contract or agreement that purports to 8 waive or limit in any way consumer rights pursuant to section 9 715D.3 shall be deemed contrary to public policy and shall be 10 void and unenforceable. 11 4. A controller shall provide consumers with a reasonably 12 accessible, clear, and meaningful privacy notice that includes 13 the following: 14 a. The categories of personal data processed by the 15 controller. 16 b. The purpose for processing personal data. 17 c. How consumers may exercise their consumer rights pursuant 18 to section 715D.3, including how a consumer may appeal a 19 controller’s decision with regard to the consumer’s request. 20 d. The categories of personal data that the controller 21 shares with third parties, if any. 22 e. The categories of third parties, if any, with whom the 23 controller shares personal data. 24 5. If a controller sells a consumer’s personal data to third 25 parties or uses such personal data for targeted advertising, 26 the controller shall clearly and conspicuously disclose such 27 activity, as well as the manner in which a consumer may 28 exercise the right to opt out of such processing. 29 6. A controller shall establish, and shall describe in 30 a privacy notice, secure and reliable means for consumers to 31 submit a request to exercise their consumer rights under this 32 chapter. Such means shall consider the ways in which consumers 33 normally interact with the controller, the need for secure and 34 reliable communication of such requests and the ability of 35 -12- LSB 5349HV (3) 89 es/rn 12/ 26

H.F. 2506 the controller to authenticate the identity of the consumer 1 making the request. A controller shall not require a consumer 2 to create a new account in order to exercise consumer rights 3 pursuant to section 715D.3, but may require a consumer to use 4 an existing account. 5 Sec. 5. NEW SECTION . 715D.5 Processor duties. 6 1. A processor shall assist a controller in duties 7 required under this chapter, taking into account the nature of 8 processing and the information available to the processor by 9 appropriate technical and organizational measures, insofar as 10 is reasonably practicable, as follows: 11 a. To fulfill the controller’s obligation to respond to 12 consumer rights requests pursuant to section 715D.3. 13 b. To meet the controller’s obligations in relation to the 14 security of processing the personal data and in relation to the 15 notification of a security breach of the processor pursuant to 16 section 715C.2. 17 c. To provide necessary information to enable the controller 18 to conduct and document data protection assessments pursuant 19 to section 715D.6. 20 2. A contract between a controller and a processor shall 21 govern the processor’s data processing procedures with respect 22 to processing performed on behalf of the controller. The 23 contract shall clearly set forth instructions for processing 24 personal data, the nature and purpose of processing, the type 25 of data subject to processing, the duration of processing, and 26 the rights and duties of both parties. The contract shall also 27 include requirements that the processor shall do all of the 28 following: 29 a. Ensure that each person processing personal data is 30 subject to a duty of confidentiality with respect to the data. 31 b. At the controller’s direction, delete or return all 32 personal data to the controller as requested at the end of the 33 provision of services, unless retention of the personal data 34 is required by law. 35 -13- LSB 5349HV (3) 89 es/rn 13/ 26

H.F. 2506 c. Upon the reasonable request of the controller, make 1 available to the controller all information in the processor’s 2 possession necessary to demonstrate the processor’s compliance 3 with the obligations in this chapter. 4 d. Allow, and cooperate with, reasonable assessments 5 by the controller or the controller’s designated assessor. 6 The processor may arrange for a qualified and independent 7 assessor to conduct an assessment of the processor’s policies 8 and technical and organizational measures in support of 9 the obligations under this chapter using an appropriate and 10 accepted control standard or framework and assessment procedure 11 for such assessments. The processor shall provide a report of 12 such assessment to the controller upon request. 13 e. Engage any subcontractor or agent pursuant to a written 14 contract in accordance with this section that requires the 15 subcontractor to meet the duties of the processor with respect 16 to the personal data. 17 3. Nothing in this section shall be construed to relieve a 18 controller or a processor from imposed liabilities by virtue 19 of the controller or processor’s role in the processing 20 relationship as defined by this chapter. 21 4. Determining whether a person is acting as a controller or 22 processor with respect to a specific processing of data is a 23 fact-based determination that depends upon the context in which 24 personal data is to be processed. A processor that continues 25 to adhere to a controller’s instructions with respect to a 26 specific processing of personal data remains a processor. 27 Sec. 6. NEW SECTION . 715D.6 Data protection assessments. 28 1. A controller shall conduct and document a data protection 29 assessment of each of the following processing activities 30 involving personal data: 31 a. The sale of personal data. 32 b. The processing of personal data for targeted advertising. 33 c. The processing of personal data for purposes of 34 profiling, where such profiling presents a reasonably 35 -14- LSB 5349HV (3) 89 es/rn 14/ 26

H.F. 2506 foreseeable risk of any of the following: 1 (1) Unfair or deceptive treatment of, or unlawful disparate 2 impact on, consumers. 3 (2) Financial, physical, or reputational injury to 4 consumers. 5 (3) A physical or other intrusion upon the solitude or 6 seclusion, or the private affairs or concerns, of consumers, 7 where such intrusion would be offensive to a reasonable person. 8 (4) Other substantial injury to consumers. 9 d. The processing of sensitive data. 10 e. Any processing activities involving personal data that 11 present a heightened risk of harm to consumers. 12 2. Data protection assessments conducted pursuant to 13 subsection 1 shall identify and weigh the benefits that may 14 flow, directly and indirectly, from the processing to the 15 controller, the consumer, other stakeholders, and the public 16 against the potential risks to the rights of the consumer 17 associated with such processing, as mitigated by safeguards 18 that can be employed by the controller to reduce such risks. 19 The use of de-identified data and the reasonable expectations 20 of consumers, as well as the context of the processing and the 21 relationship between the controller and the consumer whose 22 personal data will be processed, shall be factored into this 23 assessment by the controller. 24 3. The attorney general may request, pursuant to a civil 25 investigative demand, that a controller disclose any data 26 protection assessment that is relevant to an investigation 27 conducted by the attorney general, and the controller shall 28 make the data protection assessment available to the attorney 29 general. The attorney general may evaluate the data protection 30 assessment for compliance with the responsibilities set 31 forth in section 715D.4. The controller shall make the data 32 protection assessment available to the attorney general. 33 Data protection assessments shall be confidential and exempt 34 from public inspection and copying under section 22.1. The 35 -15- LSB 5349HV (3) 89 es/rn 15/ 26

H.F. 2506 disclosure of a data protection assessment pursuant to a 1 request from the attorney general shall not constitute a waiver 2 of attorney-client privilege or work product protection with 3 respect to the data protection assessment and any information 4 contained in the data protection assessment. The attorney 5 general may evaluate the data protection assessment for 6 compliance with the responsibilities set forth in section 7 715D.4. 8 4. Data protection assessments conducted by a controller 9 for the purpose of compliance with other laws or regulations 10 may comply under this section if the assessments have a 11 reasonably comparable scope and effect. A single data 12 protection assessment may address a comparable set of 13 processing operations that include similar activities. Data 14 protection assessment requirements shall apply to processing 15 activities created or generated after January 1, 2024, and are 16 not retroactive. 17 Sec. 7. NEW SECTION . 715D.7 Processing data —— exemptions. 18 1. A controller in possession of de-identified data shall 19 comply with the following: 20 a. Take reasonable measures to ensure that the data cannot 21 be associated with a natural person. 22 b. Publicly commit to maintaining and using de-identified 23 data without attempting to re-identify the data. 24 c. Contractually obligate any recipients of the 25 de-identified data to comply with all provisions of this 26 chapter. 27 2. Nothing in this chapter shall be construed to require the 28 following: 29 a. A controller or processor to re-identify de-identified 30 data or pseudonymous data. 31 b. Maintaining data in identifiable form. 32 c. Collecting, obtaining, retaining, or accessing any 33 data or technology, in order to be capable of associating an 34 authenticated consumer request with personal data. 35 -16- LSB 5349HV (3) 89 es/rn 16/ 26

H.F. 2506 3. Nothing in this chapter shall be construed to require 1 a controller or processor to comply with an authenticated 2 consumer rights request, pursuant to section 715D.3, if all of 3 the following are true: 4 a. The controller is not reasonably capable of associating 5 the request with the personal data or it would be unreasonably 6 burdensome for the controller to associate the request with the 7 personal data. 8 b. The controller does not use the personal data to 9 recognize or respond to the specific consumer who is the 10 subject of the personal data, or associate the personal data 11 with other personal data about the same specific consumer. 12 c. The controller does not sell the personal data to any 13 third party or otherwise voluntarily disclose the personal data 14 to any third party other than a processor, except as otherwise 15 permitted in this chapter. 16 4. Consumer rights contained in sections 715D.3 and 715D.4 17 shall not apply to pseudonymous data in cases where the 18 controller is able to demonstrate any information necessary 19 to identify the consumer is kept separately and is subject to 20 effective technical and organizational controls that prevent 21 the controller from accessing such information. 22 5. Controllers that disclose pseudonymous data or 23 de-identified data shall exercise reasonable oversight to 24 monitor compliance with any contractual commitments to which 25 the pseudonymous data or de-identified data is subject and 26 shall take appropriate steps to address any breaches of those 27 contractual commitments. 28 Sec. 8. NEW SECTION . 715D.8 Limitations. 29 1. Nothing in this chapter shall be construed to restrict a 30 controller’s or processor’s ability to do the following: 31 a. Comply with federal, state, or local laws, rules, or 32 regulations. 33 b. Comply with a civil, criminal, or regulatory inquiry, 34 investigation, subpoena, or summons by federal, state, local, 35 -17- LSB 5349HV (3) 89 es/rn 17/ 26

H.F. 2506 or other governmental authorities. 1 c. Cooperate with law enforcement agencies concerning 2 conduct or activity that the controller or processor reasonably 3 and in good faith believes may violate federal, state, or local 4 laws, rules, or regulations. 5 d. Investigate, establish, exercise, prepare for, or defend 6 legal claims. 7 e. Provide a product or service specifically requested by a 8 consumer, perform a contract to which the consumer is a party, 9 including fulfilling the terms of a written warranty, or take 10 steps at the request of the consumer prior to entering into a 11 contract. 12 f. Take immediate steps to protect an interest that is 13 essential for the life or physical safety of the consumer or 14 of another natural person, and where the processing cannot be 15 manifestly based on another legal basis. 16 g. Prevent, detect, protect against, or respond to security 17 incidents, identity theft, fraud, harassment, malicious or 18 deceptive activities, or any illegal activity. 19 h. Preserve the integrity or security of systems. 20 i. Investigate, report, or prosecute those responsible for 21 any such action. 22 j. Engage in public or peer-reviewed scientific or 23 statistical research in the public interest that adheres to 24 all other applicable ethics and privacy laws and is approved, 25 monitored, and governed by an institutional review board, or 26 similar independent oversight entities that determine the 27 following: 28 (1) If the deletion of the information is likely to provide 29 substantial benefits that do not exclusively accrue to the 30 controller. 31 (2) The expected benefits of the research outweigh the 32 privacy risks. 33 (3) If the controller has implemented reasonable safeguards 34 to mitigate privacy risks associated with research, including 35 -18- LSB 5349HV (3) 89 es/rn 18/ 26

H.F. 2506 any risks associated with re-identification. 1 k. Assist another controller, processor, or third party with 2 any of the obligations under this subsection. 3 2. The obligations imposed on a controller or processor 4 under this chapter shall not restrict a controller’s or 5 processor’s ability to collect, use, or retain data as follows: 6 a. To conduct internal research to develop, improve, or 7 repair products, services, or technology. 8 b. To effectuate a product recall. 9 c. To identify and repair technical errors that impair 10 existing or intended functionality. 11 d. To perform internal operations that are reasonably 12 aligned with the expectations of the consumer or reasonably 13 anticipated based on the consumer’s existing relationship with 14 the controller or are otherwise compatible with processing 15 data in furtherance of the provision of a product or service 16 specifically requested by a consumer or the performance of a 17 contract to which the consumer is a party. 18 3. The obligations imposed on controllers or processors 19 under this chapter shall not apply where compliance by the 20 controller or processor with this chapter would violate an 21 evidentiary privilege under the laws of the state. Nothing 22 in this chapter shall be construed to prevent a controller or 23 processor from providing personal data concerning a consumer to 24 a person covered by an evidentiary privilege under the laws of 25 the state as part of a privileged communication. 26 4. A controller or processor that discloses personal data 27 to a third-party controller or processor, in compliance with 28 the requirements of this chapter, is not in violation of 29 this chapter if the third-party controller or processor that 30 receives and processes such personal data is in violation of 31 this chapter, provided that, at the time of disclosing the 32 personal data, the disclosing controller or processor did not 33 have actual knowledge that the recipient intended to commit a 34 violation. A third-party controller or processor receiving 35 -19- LSB 5349HV (3) 89 es/rn 19/ 26

H.F. 2506 personal data from a controller or processor in compliance with 1 the requirements of this chapter is likewise not in violation 2 of this chapter for the offenses of the controller or processor 3 from which it receives such personal data. 4 5. Nothing in this chapter shall be construed as an 5 obligation imposed on a controller or a processor that 6 adversely affects the rights or freedoms of any persons, such 7 as exercising the right of free speech pursuant to the First 8 Amendment to the United States Constitution, or applies to the 9 processing of personal data by a person in the course of a 10 purely personal or household activity. 11 6. Personal data processed by a controller pursuant to 12 this section shall not be processed for any purpose other than 13 those expressly listed in this section unless otherwise allowed 14 by this chapter. Personal data processed by a controller 15 pursuant to this section may be processed to the extent that 16 such processing is as follows: 17 a. Reasonably necessary and proportionate to the purposes 18 listed in this section. 19 b. Adequate, relevant, and limited to what is necessary 20 in relation to the specific purposes listed in this section. 21 Personal data collected, used, or retained pursuant to 22 this section shall, where applicable, take into account 23 the nature and purpose or purposes of such collection, use, 24 or retention. Such data shall be subject to reasonable 25 administrative, technical, and physical measures to protect the 26 confidentiality, integrity, and accessibility of the personal 27 data and to reduce reasonably foreseeable risks of harm to 28 consumers relating to such collection, use, or retention of 29 personal data. 30 7. If a controller processes personal data pursuant to an 31 exemption in this section, the controller bears the burden of 32 demonstrating that such processing qualifies for the exemption 33 and complies with the requirements in subsection 6. 34 8. Processing personal data for the purposes expressly 35 -20- LSB 5349HV (3) 89 es/rn 20/ 26