Christine E. Lyon and Robert N. Famigletti
Privacy + Data Security
Several bills that would amend the California Consumer Privacy Act of 2018 (CCPA) cleared a major hurdle when they passed in the Senate Judiciary Committee during a late-night session on July 9, 2019. However, a number of business-friendly provisions were limited, or struck, in order to allay consumer and labor groups’ concerns and clear the way for passage. If enacted, these amendments will have a significant impact on businesses’ obligations under the CCPA.
Additionally, two highly contested CCPA amendment bills appear to have died in committee: one was voted down (though a motion for reconsideration was granted) and another was withdrawn before coming up for a vote.
An overview of the bills, including the Senate amendments and what they mean for companies doing business in California, is outlined below:
Passed Senate Judiciary Committee with Amendments
Takeaway: These carve-outs require businesses to factor employee, applicant, contractor, and agent data into their CCPA preparation efforts, although the bill would still relieve businesses from some of the more burdensome obligations for such personnel, such as CCPA access and deletion requests—that is, at least for the one-year moratorium period.
Takeaway: Businesses that operate exclusively online but do not maintain direct consumer relationships should continue to monitor this bill and be prepared to establish and provide a toll-free telephone number for receipt of consumer requests under the CCPA. Other businesses should continue to be prepared to establish at least two mechanisms for consumers to submit requests under the Act, including a toll-free telephone number.
Passed Senate Judiciary Committee with Minor or No Amendments
Voted Down in Senate Judiciary Committee
Withdrawn Before Senate Judiciary Committee Vote
The bills that passed in the Senate Judiciary Committee will now proceed to the Senate Appropriations Committee and, if passed, to the full Senate for a vote. If a bill was amended in the Senate and subsequently passes the full Senate vote, it must go back to the Assembly for concurrence. If agreement cannot be reached, the bill is referred to a two-house conference committee to resolve differences.
A bill must pass both houses of the legislature by September 13, 2019 to become law, and Governor Gavin Newsom has 12 days from the date of transmittal to sign or veto the bill (unless the 12th day is a Sunday). If a bill is transmitted to the Governor after September 13, he must sign or veto the bill by October 13, 2019.
We will continue to monitor these bills in the lead-up to the conclusion of the 2019 legislative session.
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