House File 346 - Introduced
HOUSE FILE 346
BY COMMITTEE ON ECONOMIC
GROWTH AND TECHNOLOGY
(SUCCESSOR TO HSB 12)
A BILL FOR
1 An Act relating to consumer data protection, providing civil
2 penalties, and including effective date provisions.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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1 Section 1. NEW SECTION. 715D.1 Definitions.
2 As used in this chapter, unless the context otherwise
3 requires:
4 1. “Affiliate” means a legal entity that controls, is
5 controlled by, or is under common control with another legal
6 entity or shares common branding with another legal entity.
7 For the purposes of this definition, “control” or “controlled”
8 means:
9 a. Ownership of, or the power to vote, more than fifty
10 percent of the outstanding shares of any class of voting
11 security of a company.
12 b. Control in any manner over the election of a majority of
13 the directors or of individuals exercising similar functions.
14 c. The power to exercise controlling influence over the
15 management of a company.
16 2. “Aggregate data” means information that relates to a
17 group or category of consumers, from which individual consumer
18 identities have been removed, that is not linked or reasonably
19 linkable to any consumer.
20 3. “Authenticate” means verifying through reasonable means
21 that a consumer, entitled to exercise their consumer rights in
22 section 715D.3, is the same consumer exercising such consumer
23 rights with respect to the personal data at issue.
24 4. “Biometric data” means data generated by automatic
25 measurements of an individual’s biological characteristics,
26 such as a fingerprint, voiceprint, eye retinas, irises, or
27 other unique biological patterns or characteristics that is
28 used to identify a specific individual. “Biometric data”
29 does not include a physical or digital photograph, a video or
30 audio recording or data generated therefrom, or information
31 collected, used, or stored for health care treatment, payment,
32 or operations under HIPAA.
33 5. “Child” means any natural person younger than thirteen
34 years of age.
35 6. “Consent” means a clear affirmative act signifying a
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1 consumer’s freely given, specific, informed, and unambiguous
2 agreement to process personal data relating to the consumer.
3 “Consent” may include a written statement, including a
4 statement written by electronic means, or any other unambiguous
5 affirmative action.
6 7. “Consumer” means a natural person who is a resident of
7 the state acting only in an individual or household context and
8 excluding a natural person acting in a commercial or employment
9 context.
10 8. “Controller” means a person that, alone or jointly with
11 others, determines the purpose and means of processing personal
12 data.
13 9. “Covered entity” means the same as “covered entity”
14 defined by HIPAA.
15 10. “De-identified data” means data that cannot reasonably
16 be linked to an identified or identifiable natural person.
17 11. “Fund” means the consumer education and litigation fund
18 established pursuant to section 714.16C.
19 12. “Health care provider” means any of the following:
20 a. A general hospital, ambulatory surgical or treatment
21 center, skilled nursing center, or assisted living center
22 licensed or certified by the state.
23 b. A psychiatric hospital licensed by the state.
24 c. A hospital operated by the state.
25 d. A hospital operated by the state board of regents.
26 e. A person licensed to practice medicine or osteopathy in
27 the state.
28 f. A person licensed to furnish health care policies or
29 plans in the state.
30 g. A person licensed to practice dentistry in the state.
31 h. “Health care provider” does not include a continuing care
32 retirement community or any nursing facility of a religious
33 body which depends upon prayer alone for healing.
34 13. “Health Insurance Portability and Accountability Act”
35 or “HIPAA” means the federal Health Insurance Portability and
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1 Accountability Act of 1996, Pub. L. No. 104-191, including
2 amendments thereto and regulations promulgated thereunder.
3 14. “Health record” means any written, printed, or
4 electronically recorded material maintained by a health care
5 provider in the course of providing health services to an
6 individual concerning the individual and the services provided,
7 including related health information provided in confidence to
8 a health care provider.
9 15. “Identified or identifiable natural person” means a
10 person who can be readily identified, directly or indirectly.
11 16. “Institution of higher education” means nonprofit
12 private institutions of higher education and proprietary
13 private institutions of higher education in the state,
14 community colleges, and each associate-degree-granting and
15 baccalaureate public institutions of higher education in the
16 state.
17 17. “Nonprofit organization” means any corporation organized
18 under chapter 504, any organization exempt from taxation
19 under sections 501(c)(3), 501(c)(6), or 501(c)(12) of the
20 Internal Revenue Code, any organization exempt from taxation
21 under section 501(c)(4) of the Internal Revenue Code that
22 is established to detect or prevent insurance-related crime
23 or fraud, and any subsidiaries and affiliates of entities
24 organized pursuant to chapter 499.
25 18. “Personal data” means any information that is linked or
26 reasonably linkable to an identified or identifiable natural
27 person. “Personal data” does not include de-identified or
28 aggregate data or publicly available information.
29 19. “Precise geolocation data” means information derived
30 from technology, including but not limited to global
31 positioning system level latitude and longitude coordinates or
32 other mechanisms, that identifies the specific location of a
33 natural person with precision and accuracy within a radius of
34 one thousand seven hundred fifty feet. “Precise geolocation
35 data” does not include the content of communications, or
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1 any data generated by or connected to utility metering
2 infrastructure systems or equipment for use by a utility.
3 20. “Process” or “processing” means any operation or set
4 of operations performed, whether by manual or automated means,
5 on personal data or on sets of personal data, such as the
6 collection, use, storage, disclosure, analysis, deletion, or
7 modification of personal data.
8 21. “Processor” means a person that processes personal data
9 on behalf of a controller.
10 22. “Protected health information” means the same as
11 protected health information established by HIPAA.
12 23. “Pseudonymous data” means personal data that cannot
13 be attributed to a specific natural person without the use
14 of additional information, provided that such additional
15 information is kept separately and is subject to appropriate
16 technical and organizational measures to ensure that
17 the personal data is not attributed to an identified or
18 identifiable natural person.
19 24. “Publicly available information” means information
20 that is lawfully made available through federal, state, or
21 local government records, or information that a business has
22 reasonable basis to believe is lawfully made available to
23 the general public through widely distributed media, by the
24 consumer, or by a person to whom the consumer has disclosed the
25 information, unless the consumer has restricted the information
26 to a specific audience.
27 25. “Sale of personal data” means the exchange of personal
28 data for monetary consideration by the controller to a third
29 party. “Sale of personal data” does not include:
30 a. The disclosure of personal data to a processor that
31 processes the personal data on behalf of the controller.
32 b. The disclosure of personal data to a third party for
33 purposes of providing a product or service requested by the
34 consumer or a parent of a child.
35 c. The disclosure or transfer of personal data to an
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1 affiliate of the controller.
2 d. The disclosure of information that the consumer
3 intentionally made available to the general public via a
4 channel of mass media and did not restrict to a specific
5 audience.
6 e. The disclosure or transfer of personal data when a
7 consumer uses or directs a controller to intentionally disclose
8 personal data or intentionally interact with one or more third
9 parties.
10 f. The disclosure or transfer of personal data to a third
11 party as an asset that is part of a proposed or actual merger,
12 acquisition, bankruptcy, or other transaction in which the
13 third party assumes control of all or part of the controller’s
14 assets.
15 26. “Sensitive data” means a category of personal data that
16 includes the following:
17 a. Racial or ethnic origin, religious beliefs, mental or
18 physical health diagnosis, sexual orientation, or citizenship
19 or immigration status, except to the extent such data is used
20 in order to avoid discrimination on the basis of a protected
21 class that would violate a federal or state anti-discrimination
22 law.
23 b. Genetic or biometric data that is processed for the
24 purpose of uniquely identifying a natural person.
25 c. The personal data collected from a known child.
26 d. Precise geolocation data.
27 27. “State agency” means the same as defined in 129 IAC
28 10.2(8B).
29 28. “Targeted advertising” means displaying advertisements
30 to a consumer where the advertisement is selected based on
31 personal data obtained from that consumer’s activities over
32 time and across nonaffiliated websites or online applications
33 to predict such consumer’s preferences or interests. “Targeted
34 advertising” does not include the following:
35 a. Advertisements based on activities within a controller’s
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1 own or affiliated websites or online applications.
2 b. Advertisements based on the context of a consumer’s
3 current search query, visit to a website, or online
4 application.
5 c. Advertisements directed to a consumer in response to the
6 consumer’s request for information or feedback.
7 d. Processing personal data solely for measuring or
8 reporting advertising performance, reach, or frequency.
9 29. “Third party” means a natural or legal person, public
10 authority, agency, or body other than the consumer, controller,
11 processor, or an affiliate of the processor or the controller.
12 30. “Trade secret” means information, including but not
13 limited to a formula, pattern, compilation, program, device,
14 method, technique, or process, that consists of the following:
15 a. Information that derives independent economic value,
16 actual or potential, from not being generally known to, and not
17 being readily ascertainable by proper means by, other persons
18 who can obtain economic value from its disclosure or use.
19 b. Information that is the subject of efforts that are
20 reasonable under the circumstances to maintain its secrecy.
21 Sec. 2. NEW SECTION. 715D.2 Scope and exemptions.
22 1. This chapter applies to a person conducting business in
23 the state or producing products or services that are targeted
24 to consumers who are residents of the state and that during a
25 calendar year does either of the following:
26 a. Controls or processes personal data of at least one
27 hundred thousand consumers.
28 b. Controls or processes personal data of at least
29 twenty-five thousand consumers and derives over fifty percent
30 of gross revenue from the sale of personal data.
31 2. This chapter shall not apply to the state or any
32 political subdivision of the state; financial institutions,
33 affiliates of financial institutions, or data subject to Tit. V
34 of the federal Gramm-Leach-Bliley Act of 1999, l5 U.S.C. §6801
35 et seq.; persons who are subject to and comply with regulations
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1 promulgated pursuant to Tit. II, subtitle F of the federal
2 Health Insurance Portability And Accountability Act of 1996,
3 Pub. L. No. 104-191, and Tit. XIII, subtitle D of the federal
4 Health Information Technology for Economic and Clinical Health
5 Act of 2009, 42 U.S.C. §17921 - 17954; nonprofit organizations;
6 or institutions of higher education.
7 3. The following information and data is exempt from this
8 chapter:
9 a. Protected health information under HIPAA.
10 b. Health records.
11 c. Patient identifying information for purposes of 42 U.S.C.
12 §290dd-2.
13 d. Identifiable private information for purposes of the
14 federal policy for the protection of human subjects under 45
15 C.F.R. pt. 46.
16 e. Identifiable private information that is otherwise
17 information collected as part of human subjects research
18 pursuant to the good clinical practice guidelines issued by
19 the international council for harmonization of technical
20 requirements for pharmaceuticals for human use.
21 f. The protection of human subjects under 21 C.F.R. pts. 6,
22 50, and 56.
23 g. Personal data used or shared in research conducted in
24 accordance with the requirements set forth in this chapter, or
25 other research conducted in accordance with applicable law.
26 h. Information and documents created for purposes of the
27 federal Health Care Quality Improvement Act of 1986, 42 U.S.C.
28 §11101 et seq.
29 i. Patient safety work product for purposes of the federal
30 Patient Safety and Quality Improvement Act, 42 U.S.C. §299b-21
31 et seq.
32 j. Information derived from any of the health care-related
33 information listed in this subsection that is de-identified in
34 accordance with the requirements for de-identification pursuant
35 to HIPAA.
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1 k. Information originating from, and intermingled to be
2 indistinguishable with, or information treated in the same
3 manner as information exempt under this subsection that is
4 maintained by a covered entity or business associate as defined
5 by HIPAA or a program or a qualified service organization as
6 defined by 42 U.S.C. §290dd-2.
7 l. Information used only for public health activities and
8 purposes as authorized by HIPAA.
9 m. The collection, maintenance, disclosure, sale,
10 communication, or use of any personal information bearing on a
11 consumer’s credit worthiness, credit standing, credit capacity,
12 character, general reputation, personal characteristics, or
13 mode of living by a consumer reporting agency or furnisher that
14 provides information for use in a consumer report, and by a
15 user of a consumer report, but only to the extent that such
16 activity is regulated by and authorized under the federal Fair
17 Credit Reporting Act, 15 U.S.C. §1681 et seq.
18 n. Personal data collected, processed, sold, or disclosed in
19 compliance with the federal Driver’s Privacy Protection Act of
20 1994, 18 U.S.C. §2721 et seq.
21 o. Personal data regulated by the federal Family Educational
22 Rights and Privacy Act, 20 U.S.C. §1232 et seq.
23 p. Personal data collected, processed, sold, or disclosed in
24 compliance with the federal Farm Credit Act, 12 U.S.C. §2001
25 et seq.
26 q. Data processed or maintained as follows:
27 (1) In the course of an individual applying to, employed
28 by, or acting as an agent or independent contractor of a
29 controller, processor, or third party, to the extent that the
30 data is collected and used within the context of that role.
31 (2) As the emergency contact information of an individual
32 under this chapter used for emergency contact purposes.
33 (3) That is necessary to retain to administer benefits
34 for another individual relating to the individual under
35 subparagraph (1) and used for the purposes of administering
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