On November 4, 2020, California voters approved of the ballot initiative Proposition 24, more commonly known as the California Privacy Rights Act (the “CPRA”). The CPRA goes into effect on January 1, 2023, and will expand several of the existing protections in the California Consumer Privacy Act (the “CCPA”).
As background, the original CCPA
Delaware (July 31, 2019) and New Hampshire (August 2, 2019) have become the latest states to add to the insurance cybersecurity landscape by enacting information security laws. These laws come on the heels of Connecticut’s law enacted a few days earlier. Notably, while Connecticut followed the New York Department of Financial Services’ 2017 Cybersecurity
On July 26, 2019, Connecticut Governor Ned Lamont signed into the law the state’s new Insurance Data Security Law, which imposes new information security, risk management, and reporting requirements for carriers, producers, and other businesses licensed by the Connecticut Insurance Department (“CID”). In doing so, Connecticut joins New York, South Carolina, Ohio, Michigan, and Mississippi
Recently, legislators in Texas introduced two bills relating to consumer privacy and data protection: H.B. No. 4518, the Texas Consumer Privacy Act (“Texas CPA”) and H.B. No. 4390, the Texas Privacy Protection Act (“TPPA”). These bills bear a strong resemblance to the California Consumer Privacy Act (the “California CPA”), and would lay the groundwork for extensive administrative schemes protecting consumers’ rights to their personal information.
Texas CPA
The Texas CPA bears strong similarity to California CPA. The Texas CPA, which, if adopted, would take effect September 1, 2020, applies to companies that do business and collect consumer data and:
Continue Reading Texas Legislature Weighing Proposed New Privacy Laws
New proposed legislation in California, backed by state Attorney General (AG) Xavier Becerra, would amend the new California Consumer Privacy Act (CCPA) to make it easier for private plaintiffs and public officials to sue for violations while further increasing regulatory uncertainty and compliance costs for businesses. Specifically, SB 561 would expand the CCPA’s private right of action, remove the Act’s public enforcement “cure” provision, and eliminate the ability of affected companies to seek compliance guidance from the AG.
The CCPA is a sweeping new privacy law which goes into effect in January 2020. It gives California residents substantial control over personal data held by certain California businesses, requiring disclosure of what personal information the business collects, how that information is used or sold, and allowing consumers to control or delete that information upon request. It currently allows private plaintiffs to seek statutory damages of up to $750 per violation for certain violations, and it allows the AG to seek civil penalties of up to $2,500 for most violations, and up to $7,500 for violations found to be intentional.
Continue Reading California Legislation Would Make CCPA Even Worse for Businesses
The Illinois Supreme Court held on January 25, 2019, that plaintiffs filing suit under the Biometric Information Privacy Act—which regulates how private entities disclose and discard biometric identifiers—do not need actual damages for standing. The decision has serious implications for companies collecting biometric data from Illinois residents.
The Act provides a private right of action to individuals “aggrieved” by any violation, allowing them to seek, among other remedies, liquidated or actual damages, attorneys’ fees, and costs. However, there has been widespread uncertainty as to whether an aggrieved individual asserting a private action under the Act needed to show that he or she suffered an actual injury as a result of an alleged violation, or if a violation of the Act in and of itself conveys standing.
Continue Reading Illinois Supreme Court: No ‘Actual Harm’ Required for Biometric Information Privacy Act Claims
Ballard Spahr’s Privacy and Data Security Group will again be hosting its Colorado Cybersecurity Summit on September 18, 2018, at Ballard Spahr’s Denver office and via webinar.
Highlights will include a discussion with the Colorado Deputy Attorney General who will be responsible for enforcing Colorado’s groundbreaking new cybersecurity law, as well as the former Director
As we discussed in our prior alert, California voters had been poised to consider a citizen-initiated ballot measure that would have significantly expanded the privacy rights of California citizens and provided substantial penalties for noncompliant companies. In response to that ballot measure, the California legislature hastily pushed through privacy legislation despite the “grave, grave concerns” expressed by lawmakers.
Lawmakers were willing to enact the flawed legislation based on an assurance from the leader of the ballot measure that he would not submit the measure if the legislation was passed. However, because the deadline to submit ballot measures was June 28, 2018, lawmakers had to rush the legislation through both houses. And, since state law requires that legislation be in print for at least 72 hours before a vote, lawmakers had no opportunity to offer amendments.
Lawmakers were willing to engage in such a rushed course of action because, if the ballot measure had become law, both houses would have been required to approve any changes by a 70 percent vote instead of a simple majority. Also, because the legislation does not go into effect until January 1, 2020, lawmakers theoretically can fix any problems in the intervening time frame.
Despite its tumultuous legislative history, the legislation—titled the California Consumer Privacy Act of 2018—grants significant privacy rights to California residents. Any entity that does business in California and qualifies as a “business” under the Act will need to comply with the law or risk substantial financial penalty.
Colorado has enacted groundbreaking privacy and cybersecurity legislation that will require covered entities to implement and maintain reasonable security procedures, dispose of documents containing confidential information properly, ensure that confidential information is protected when transferred to third parties, and notify affected individuals of data breaches in the shortest time frame in the country. The new law was spearheaded by the Colorado Attorney General’s office, which is charged with enforcing its requirements. As a result of the legislation, covered entities should consider implementing written information security programs, third party vendor management controls, and incident response plans to best position themselves against potential enforcement actions and civil litigation in the future.
Ballard Spahr attorneys David Stauss and Gregory Szewczyk will host a webinar on Monday, June 4, 2018, at noon PT/1 p.m. MT/3 p.m. ET to provide an in-depth analysis of the new law and to discuss what covered entities must do to ensure compliance. Messrs. Stauss and Szewczyk are uniquely situated to discuss the new law, having assisted in developing the legislation, including Mr. Stauss testifying on the bill in front of the House Committee on State, Veterans, & Military Affairs. Click here for more information and to register.
The most notable provisions of the new law are discussed below.
Continue Reading Colorado Enacts Groundbreaking Privacy and Cybersecurity Legislation
South Carolina has become the first state to enact a version of the Insurance Data Security Model Law, which was drafted by the National Association of Insurance Commissioners (NAIC) in 2017. Governor Henry McMaster signed the South Carolina Insurance Data Security Act into law on May 14, 2018. The Act will become effective on January 1, 2019.
South Carolina Insurance Director Raymond G. Farmer chaired the NAIC Cybersecurity Working Group that drafted the model law. The South Carolina Act appears to follow the Model Law closely, and bears similarities to cybersecurity laws and regulations enacted in other states and at the federal level – including the New York Department of Financial Services cybersecurity regulations, the new Alabama data breach law, and HIPAA/HITECH data security/breach notification requirements.
Continue Reading South Carolina Enacts First Insurance Data Security Act