House Study Bill 674 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON INFORMATION TECHNOLOGY BILL BY CHAIRPERSON LOHSE) 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 5349YC (11) 89 es/rn

H.F. _____ 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 5349YC (11) 89 es/rn 1/ 25

H.F. _____ 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 5349YC (11) 89 es/rn 2/ 25

H.F. _____ 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 5349YC (11) 89 es/rn 3/ 25

H.F. _____ 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. “Sale of personal data” means the exchange of personal 27 data for monetary consideration by the controller to a third 28 party. “ Sale of personal data” does not include: 29 a. The disclosure of personal data to a processor that 30 processes the personal data on behalf of the controller. 31 b. The disclosure of personal data to a third party for 32 purposes of providing a product or service requested by the 33 consumer or a parent of a child. 34 c. The disclosure or transfer of personal data to an 35 -4- LSB 5349YC (11) 89 es/rn 4/ 25

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

H.F. _____ authority, agency, or body other than the consumer, controller, 1 processor, or an affiliate of the processor or the controller. 2 29. “Trade secret” means information, including but not 3 limited to a formula, pattern, compilation, program, device, 4 method, technique, or process, that consists of the following: 5 a. Information that derives independent economic value, 6 actual or potential, from not being generally known to, and not 7 being readily ascertainable by proper means by, other persons 8 who can obtain economic value from its disclosure or use. 9 b. Information that is the subject of efforts that are 10 reasonable under the circumstances to maintain its secrecy. 11 Sec. 2. NEW SECTION . 715D.2 Scope and exemptions. 12 1. This chapter applies to a person conducting business in 13 the state or producing products or services that are targeted 14 to residents of the state and that during a calendar year does 15 either of the following: 16 a. Controls or processes personal data of at least one 17 hundred thousand consumers. 18 b. Controls or processes personal data of at least 19 twenty-five thousand consumers and derive over fifty percent of 20 gross revenue from the sale of personal data. 21 2. This chapter shall not apply to the state or any 22 political subdivision of the state, financial institutions 23 or data subject to Tit. V of the federal Gramm-Leach-Bliley 24 Act of 1999, 15 U.S.C. §6801 et seq., covered entities or 25 business associates governed by the privacy, security, and 26 breach notification rules issued by the Iowa department of 27 human services, the Iowa department of public health, 45 C.F.R. 28 pts. 160 and 164 established pursuant to HIPAA, nonprofit 29 organizations, or institutions of higher education. 30 3. The following information and data is exempt from this 31 chapter: 32 a. Protected health information under HIPAA. 33 b. Health records. 34 c. Patient identifying information for purposes of 42 U.S.C. 35 -6- LSB 5349YC (11) 89 es/rn 6/ 25

H.F. _____ §290dd-2. 1 d. Identifiable private information for purposes of the 2 federal policy for the protection of human subjects under 45 3 C.F.R. pt. 46. 4 e. Identifiable private information that is otherwise 5 information collected as part of human subjects research 6 pursuant to the good clinical practice guidelines issued by 7 the international council for harmonisation of technical 8 requirements for pharmaceuticals for human use. 9 f. The protection of human subjects under 21 C.F.R. pts. 6, 10 50, and 56. 11 g. Personal data used or shared in research conducted in 12 accordance with the requirements set forth in this chapter, or 13 other research conducted in accordance with applicable law. 14 h. Information and documents created for purposes of the 15 federal Health Care Quality Improvement Act of 1986, 42 U.S.C. 16 §11101 et seq. 17 i. Patient safety work product for purposes of the federal 18 Patient Safety And Quality Improvement Act, 42 U.S.C. §299b-21 19 et seq. 20 j. Information derived from any of the health care-related 21 information listed in this subsection that is de-identified in 22 accordance with the requirements for de-identification pursuant 23 to HIPAA. 24 k. Information originating from, and intermingled to be 25 indistinguishable with, or information treated in the same 26 manner as information exempt under this subsection that is 27 maintained by a covered entity or business associate as defined 28 by HIPAA or a program or a qualified service organization as 29 defined by 42 U.S.C. §290dd-2. 30 l. Information used only for public health activities and 31 purposes as authorized by HIPAA. 32 m. The collection, maintenance, disclosure, sale, 33 communication, or use of any personal information bearing on a 34 consumer’s credit worthiness, credit standing, credit capacity, 35 -7- LSB 5349YC (11) 89 es/rn 7/ 25

H.F. _____ character, general reputation, personal characteristics, or 1 mode of living by a consumer reporting agency or furnisher that 2 provides information for use in a consumer report, and by a 3 user of a consumer report, but only to the extent that such 4 activity is regulated by and authorized under the federal Fair 5 Credit Reporting Act, 15 U.S.C. §1681. 6 n. Personal data collected, processed, sold, or disclosed in 7 compliance with the federal Driver’s Privacy Protection Act of 8 1994, 18 U.S.C. §2721 et seq. 9 o. Personal data regulated by the federal Family Educational 10 Rights and Privacy Act, 20 U.S.C. §1232 et seq. 11 p. Personal data collected, processed, sold, or disclosed in 12 compliance with the federal Farm Credit Act, 12 U.S.C. §2001 13 et seq. 14 q. Data processed or maintained as follows: 15 (1) In the course of an individual applying to, employed 16 by, or acting as an agent or independent contractor of a 17 controller, processor, or third party, to the extent that the 18 data is collected and used within the context of that role. 19 (2) As the emergency contact information of an individual 20 under this chapter used for emergency contact purposes. 21 (3) That is necessary to retain to administer benefits 22 for another individual relating to the individual under 23 subparagraph (1) and used for the purposes of administering 24 those benefits. 25 r. Personal data used in accordance with the federal 26 Children’s Online Privacy Protection Act, 15 U.S.C. §6501 – 27 6506, and its rules, regulations, and exceptions thereto. 28 Sec. 3. NEW SECTION . 715D.3 Consumer data rights. 29 1. A consumer may invoke the consumer rights authorized 30 pursuant to this section at any time by submitting a request to 31 a controller specifying the consumer rights the consumer wishes 32 to invoke. A known child’s parent or legal guardian may invoke 33 such consumer rights on behalf of the known child regarding 34 processing personal data belonging to the child. A controller 35 -8- LSB 5349YC (11) 89 es/rn 8/ 25

H.F. _____ shall comply with an authenticated consumer request to exercise 1 all of the following: 2 a. To confirm whether a controller is processing the 3 consumer’s personal data and to access such personal data. 4 b. To correct inaccuracies in the consumer’s personal data, 5 taking into account the nature of the personal data and the 6 purposes of the processing of the consumer’s personal data. 7 c. To delete personal data provided by or obtained about 8 the consumer. 9 d. To obtain a copy of the consumer’s personal data that the 10 consumer previously provided to the controller in a portable 11 and, to the extent technically practicable, readily usable 12 format that allows the consumer to transmit the data to another 13 controller without hindrance, where the processing is carried 14 out by automated means. 15 e. To opt out of the processing of the personal data for 16 purposes of targeted advertising, the sale of personal data, 17 or profiling in furtherance of decisions that produce legal or 18 similarly significant effects concerning the consumer. 19 2. Except as otherwise provided in this chapter, a 20 controller shall comply with a request by a consumer to 21 exercise the consumer rights authorized pursuant to this 22 section as follows: 23 a. A controller shall respond to the consumer without undue 24 delay, but in all cases within forty-five days of receipt 25 of a request submitted pursuant to the methods described in 26 this section. The response period may be extended once by 27 forty-five additional days when reasonably necessary upon 28 considering the complexity and number of the consumer’s 29 requests by informing the consumer of any such extension within 30 the initial forty-five-day response period, together with the 31 reason for the extension. 32 b. If a controller declines to take action regarding the 33 consumer’s request, the controller shall inform the consumer 34 without undue delay of the justification for declining to take 35 -9- LSB 5349YC (11) 89 es/rn 9/ 25

H.F. _____ action and instructions for how to appeal the decision pursuant 1 to this section. 2 c. Information provided in response to a consumer request 3 shall be provided by a controller free of charge, up to 4 twice annually per consumer. If a request from a consumer 5 is manifestly unfounded, excessive, or repetitive, the 6 controller may charge the consumer a reasonable fee to cover 7 the administrative costs of complying with the request or 8 decline to act on the request. The controller bears the burden 9 of demonstrating the manifestly unfounded, excessive, or 10 repetitive nature of the request. 11 d. If a controller is unable to authenticate a request 12 using commercially reasonable efforts, the controller shall 13 not be required to comply with a request to initiate an action 14 under this section and may request that the consumer provide 15 additional information reasonably necessary to authenticate the 16 consumer and the consumer’s request. 17 3. A controller shall establish a process for a consumer 18 to appeal the controller’s refusal to take action on a request 19 within a reasonable period of time after the consumer’s 20 receipt of the decision pursuant to this section. The appeal 21 process shall be conspicuously available and similar to the 22 process for submitting requests to initiate action pursuant 23 to this section. Within sixty days of receipt of an appeal, 24 a controller shall inform the consumer in writing of any 25 action taken or not taken in response to the appeal, including 26 a written explanation of the reasons for the decision. If 27 the appeal is denied, the controller shall also provide the 28 consumer with an online mechanism through which the consumer 29 may contact the attorney general to submit a complaint. 30 Sec. 4. NEW SECTION . 715D.4 Data controller duties. 31 1. A controller shall limit the collection of personal 32 data to what is adequate, relevant, and reasonably necessary 33 in relation to the purposes for which such data is processed, 34 as disclosed to the consumer. Except as otherwise provided 35 -10- LSB 5349YC (11) 89 es/rn 10/ 25

H.F. _____ in this chapter, a controller shall not process personal 1 data for purposes that are neither reasonably necessary to 2 nor compatible with the disclosed purposes for which such 3 personal data is processed, as disclosed to the consumer, 4 unless the controller obtains the consumer’s consent. A 5 controller shall adopt and implement reasonable administrative, 6 technical, and physical data security practices to protect the 7 confidentiality, integrity, and accessibility of personal data. 8 Such data security practices shall be appropriate to the volume 9 and nature of the personal data at issue. A controller shall 10 not process sensitive data without the consumer’s consent, or, 11 in the case of the processing of sensitive data concerning a 12 known child, without processing such data in accordance with 13 the federal Children’s Online Privacy Protection Act, 15 U.S.C. 14 §6501 et seq. 15 2. A controller shall not process personal data in 16 violation of state and federal laws that prohibit unlawful 17 discrimination against a consumer. A controller shall not 18 discriminate against a consumer for exercising any of the 19 consumer rights contained in this chapter, including denying 20 goods or services, charging different prices or rates for 21 goods or services, or providing a different level of quality 22 of goods and services to the consumer. However, nothing in 23 this chapter shall be construed to require a controller to 24 provide a product or service that requires the personal data 25 of a consumer that the controller does not collect or maintain 26 or to prohibit a controller from offering a different price, 27 rate, level, quality, or selection of goods or services to a 28 consumer, including offering goods or services for no fee, 29 if the consumer has exercised his right to opt out pursuant 30 to section 715D.3 or the offer is related to a consumer’s 31 voluntary participation in a bona fide loyalty, rewards, 32 premium features, discounts, or club card program. 33 3. Any provision of a contract or agreement that purports to 34 waive or limit in any way consumer rights pursuant to section 35 -11- LSB 5349YC (11) 89 es/rn 11/ 25

H.F. _____ 715D.3 shall be deemed contrary to public policy and shall be 1 void and unenforceable. 2 4. A controller shall provide consumers with a reasonably 3 accessible, clear, and meaningful privacy notice that includes 4 the following: 5 a. The categories of personal data processed by the 6 controller. 7 b. The purpose for processing personal data. 8 c. How consumers may exercise their consumer rights pursuant 9 to section 715D.3, including how a consumer may appeal a 10 controller’s decision with regard to the consumer’s request. 11 d. The categories of personal data that the controller 12 shares with third parties, if any. 13 e. The categories of third parties, if any, with whom the 14 controller shares personal data. 15 5. If a controller sells a consumer’s personal data to third 16 parties or uses such personal data for targeted advertising, 17 the controller shall clearly and conspicuously disclose such 18 activity, as well as the manner in which a consumer may 19 exercise the right to opt out of such processing. 20 6. A controller shall establish, and shall describe in 21 a privacy notice, secure and reliable means for consumers to 22 submit a request to exercise their consumer rights under this 23 chapter. Such means shall consider the ways in which consumers 24 normally interact with the controller, the need for secure and 25 reliable communication of such requests and the ability of 26 the controller to authenticate the identity of the consumer 27 making the request. A controller shall not require a consumer 28 to create a new account in order to exercise consumer rights 29 pursuant to section 715D.3, but may require a consumer to use 30 an existing account. 31 Sec. 5. NEW SECTION . 715D.5 Processor duties. 32 1. A processor shall assist a controller in duties 33 required under this chapter, taking into account the nature of 34 processing and the information available to the processor by 35 -12- LSB 5349YC (11) 89 es/rn 12/ 25

H.F. _____ appropriate technical and organizational measures, insofar as 1 is reasonably practicable, as follows: 2 a. To fulfill the controller’s obligation to respond to 3 consumer rights requests pursuant to section 715D.3. 4 b. To meet the controller’s obligations in relation to the 5 security of processing the personal data and in relation to the 6 notification of a security breach of the processor pursuant to 7 section 715C.2. 8 c. To provide necessary information to enable the controller 9 to conduct and document data protection assessments pursuant 10 to section 715D.6. 11 2. A contract between a controller and a processor shall 12 govern the processor’s data processing procedures with respect 13 to processing performed on behalf of the controller. The 14 contract shall clearly set forth instructions for processing 15 personal data, the nature and purpose of processing, the type 16 of data subject to processing, the duration of processing, and 17 the rights and duties of both parties. The contract shall also 18 include requirements that the processor shall do all of the 19 following: 20 a. Ensure that each person processing personal data is 21 subject to a duty of confidentiality with respect to the data. 22 b. At the controller’s direction, delete or return all 23 personal data to the controller as requested at the end of the 24 provision of services, unless retention of the personal data 25 is required by law. 26 c. Upon the reasonable request of the controller, make 27 available to the controller all information in the processor’s 28 possession necessary to demonstrate the processor’s compliance 29 with the obligations in this chapter. 30 d. Allow, and cooperate with, reasonable assessments 31 by the controller or the controller’s designated assessor. 32 The processor may arrange for a qualified and independent 33 assessor to conduct an assessment of the processor’s policies 34 and technical and organizational measures in support of 35 -13- LSB 5349YC (11) 89 es/rn 13/ 25

H.F. _____ the obligations under this chapter using an appropriate and 1 accepted control standard or framework and assessment procedure 2 for such assessments. The processor shall provide a report of 3 such assessment to the controller upon request. 4 e. Engage any subcontractor or agent pursuant to a written 5 contract in accordance with this section that requires the 6 subcontractor to meet the duties of the processor with respect 7 to the personal data. 8 3. Nothing in this section shall be construed to relieve a 9 controller or a processor from imposed liabilities by virtue 10 of the controller or processor’s role in the processing 11 relationship as defined by this chapter. 12 4. Determining whether a person is acting as a controller or 13 processor with respect to a specific processing of data is a 14 fact-based determination that depends upon the context in which 15 personal data is to be processed. A processor that continues 16 to adhere to a controller’s instructions with respect to a 17 specific processing of personal data remains a processor. 18 Sec. 6. NEW SECTION . 715D.6 Data protection assessments. 19 1. A controller shall conduct and document a data protection 20 assessment of each of the following processing activities 21 involving personal data: 22 a. The sale of personal data. 23 b. The processing of personal data for targeted advertising. 24 c. The processing of personal data for purposes of 25 profiling, where such profiling presents a reasonably 26 foreseeable risk of any of the following: 27 (1) Unfair or deceptive treatment of, or unlawful disparate 28 impact on, consumers. 29 (2) Financial, physical, or reputational injury to 30 consumers. 31 (3) A physical or other intrusion upon the solitude or 32 seclusion, or the private affairs or concerns, of consumers, 33 where such intrusion would be offensive to a reasonable person. 34 (4) Other substantial injury to consumers. 35 -14- LSB 5349YC (11) 89 es/rn 14/ 25

H.F. _____ d. The processing of sensitive data. 1 e. Any processing activities involving personal data that 2 present a heightened risk of harm to consumers. 3 2. Data protection assessments conducted pursuant to 4 subsection 1 shall identify and weigh the benefits that may 5 flow, directly and indirectly, from the processing to the 6 controller, the consumer, other stakeholders, and the public 7 against the potential risks to the rights of the consumer 8 associated with such processing, as mitigated by safeguards 9 that can be employed by the controller to reduce such risks. 10 The use of de-identified data and the reasonable expectations 11 of consumers, as well as the context of the processing and the 12 relationship between the controller and the consumer whose 13 personal data will be processed, shall be factored into this 14 assessment by the controller. 15 3. The attorney general may request, pursuant to a civil 16 investigative demand, that a controller disclose any data 17 protection assessment that is relevant to an investigation 18 conducted by the attorney general, and the controller shall 19 make the data protection assessment available to the attorney 20 general. The attorney general may evaluate the data protection 21 assessment for compliance with the responsibilities set 22 forth in section 715D.4. The controller shall make the data 23 protection assessment available to the attorney general. 24 Data protection assessments shall be confidential and exempt 25 from public inspection and copying under section 22.1. The 26 disclosure of a data protection assessment pursuant to a 27 request from the attorney general shall not constitute a waiver 28 of attorney-client privilege or work product protection with 29 respect to the data protection assessment and any information 30 contained in the data protection assessment. The attorney 31 general may evaluate the data protection assessment for 32 compliance with the responsibilities set forth in section 33 715D.4. 34 4. Data protection assessments conducted by a controller 35 -15- LSB 5349YC (11) 89 es/rn 15/ 25

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

H.F. _____ recognize or respond to the specific consumer who is the 1 subject of the personal data, or associate the personal data 2 with other personal data about the same specific consumer. 3 c. The controller does not sell the personal data to any 4 third party or otherwise voluntarily disclose the personal data 5 to any third party other than a processor, except as otherwise 6 permitted in this chapter. 7 4. Consumer rights contained in sections 715D.3 and 715D.4 8 shall not apply to pseudonymous data in cases where the 9 controller is able to demonstrate any information necessary 10 to identify the consumer is kept separately and is subject to 11 effective technical and organizational controls that prevent 12 the controller from accessing such information. 13 5. Controllers that disclose pseudonymous data or 14 de-identified data shall exercise reasonable oversight to 15 monitor compliance with any contractual commitments to which 16 the pseudonymous data or de-identified data is subject and 17 shall take appropriate steps to address any breaches of those 18 contractual commitments. 19 Sec. 8. NEW SECTION . 715D.8 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, perform a contract to which the consumer is a party, 35 -17- LSB 5349YC (11) 89 es/rn 17/ 25

H.F. _____ including fulfilling the terms of a written warranty, or take 1 steps at the request of the consumer prior to entering into a 2 contract. 3 f. Take immediate steps to protect an interest that is 4 essential for the life or physical safety of the consumer or 5 of another natural person, and where the processing cannot be 6 manifestly based on another legal basis. 7 g. Prevent, detect, protect against, or respond to security 8 incidents, identity theft, fraud, harassment, malicious or 9 deceptive activities, or any illegal activity. 10 h. Preserve the integrity or security of systems. 11 i. Investigate, report, or prosecute those responsible for 12 any such action. 13 j. Engage in public or peer-reviewed scientific or 14 statistical research in the public interest that adheres to 15 all other applicable ethics and privacy laws and is approved, 16 monitored, and governed by an institutional review board, or 17 similar independent oversight entities that determine the 18 following: 19 (1) If the deletion of the information is likely to provide 20 substantial benefits that do not exclusively accrue to the 21 controller. 22 (2) The expected benefits of the research outweigh the 23 privacy risks. 24 (3) If the controller has implemented reasonable safeguards 25 to mitigate privacy risks associated with research, including 26 any risks associated with re-identification. 27 k. Assist another controller, processor, or third party with 28 any of the obligations under this subsection. 29 2. The obligations imposed on a controller or processor 30 under this chapter shall not restrict a controller’s or 31 processor’s ability to collect, use, or retain data as follows: 32 a. To conduct internal research to develop, improve, or 33 repair products, services, or technology. 34 b. To effectuate a product recall. 35 -18- LSB 5349YC (11) 89 es/rn 18/ 25

H.F. _____ c. To identify and repair technical errors that impair 1 existing or intended functionality. 2 d. To perform internal operations that are reasonably 3 aligned with the expectations of the consumer or reasonably 4 anticipated based on the consumer’s existing relationship with 5 the controller or are otherwise compatible with processing 6 data in furtherance of the provision of a product or service 7 specifically requested by a consumer or the performance of a 8 contract to which the consumer is a party. 9 3. The obligations imposed on controllers or processors 10 under this chapter shall not apply where compliance by the 11 controller or processor with this chapter would violate an 12 evidentiary privilege under the laws of the state. Nothing 13 in this chapter shall be construed to prevent a controller or 14 processor from providing personal data concerning a consumer to 15 a person covered by an evidentiary privilege under the laws of 16 the state as part of a privileged communication. 17 4. A controller or processor that discloses personal data 18 to a third-party controller or processor, in compliance with 19 the requirements of this chapter, is not in violation of 20 this chapter if the third-party controller or processor that 21 receives and processes such personal data is in violation of 22 this chapter, provided that, at the time of disclosing the 23 personal data, the disclosing controller or processor did not 24 have actual knowledge that the recipient intended to commit a 25 violation. A third-party controller or processor receiving 26 personal data from a controller or processor in compliance with 27 the requirements of this chapter is likewise not in violation 28 of this chapter for the offenses of the controller or processor 29 from which it receives such personal data. 30 5. Nothing in this chapter shall be construed as an 31 obligation imposed on a controller or a processor that 32 adversely affects the rights or freedoms of any persons, such 33 as exercising the right of free speech pursuant to the First 34 Amendment to the United States Constitution, or applies to the 35 -19- LSB 5349YC (11) 89 es/rn 19/ 25

H.F. _____ processing of personal data by a person in the course of a 1 purely personal or household activity. 2 6. Personal data processed by a controller pursuant to 3 this section shall not be processed for any purpose other than 4 those expressly listed in this section unless otherwise allowed 5 by this chapter. Personal data processed by a controller 6 pursuant to this section may be processed to the extent that 7 such processing is as follows: 8 a. Reasonably necessary and proportionate to the purposes 9 listed in this section. 10 b. Adequate, relevant, and limited to what is necessary 11 in relation to the specific purposes listed in this section. 12 Personal data collected, used, or retained pursuant to 13 this section shall, where applicable, take into account 14 the nature and purpose or purposes of such collection, use, 15 or retention. Such data shall be subject to reasonable 16 administrative, technical, and physical measures to protect the 17 confidentiality, integrity, and accessibility of the personal 18 data and to reduce reasonably foreseeable risks of harm to 19 consumers relating to such collection, use, or retention of 20 personal 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 solely make an entity a 27 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. 9. NEW SECTION . 715D.9 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 -20- LSB 5349YC (11) 89 es/rn 20/ 25