Assembly Bill 378 aims to enhance the protection of personally identifiable information (PII) in Wisconsin by prohibiting state agencies from sharing such data with the federal government unless it has been masked or anonymized. The bill defines "personally identifiable information" and "state agency," and establishes that any negligent violation of this prohibition could result in civil liability for actual damages, exemplary damages up to $1,000, and the recovery of attorney fees for the injured party.

However, the bill does allow for certain exceptions where unmasked data can be shared. State agencies may share unmasked data to comply with other laws or to administer state or federal programs, while legislators can share unmasked data for constituent relations or official duties. Courts are also permitted to share unmasked data as necessary for their official functions. This legislation seeks to balance the need for data privacy with the operational requirements of state and federal governance.