State of Illinois
2023 and 2024


Introduced 2/17/2023, by Rep. Abdelnasser Rashid


New Act

    Creates the Illinois Data Privacy and Protection Act. Provides that a covered entity (any entity or any person, other than an individual acting in a non-commercial context, that alone or jointly with others determines the purposes and means of collecting, processing, or transferring covered data) may not collect, process, or transfer covered data unless the collection, processing, or transfer is limited to what is reasonably necessary and proportionate. Provides that a covered entity and a service provider shall establish, implement, and maintain reasonable policies, practices, and procedures concerning the collection, processing, and transferring of covered data. Contains provisions concerning retaliation; transparency; individual data rights; consent; data protection for children and minors; civil rights; data security; small business protections; executive responsibility; service providers and third parties; enforcement; severability; and rulemaking. Effective 180 days after becoming law.

LRB103 30204 SPS 56632 b





HB3385LRB103 30204 SPS 56632 b

1    AN ACT concerning business.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the
5Illinois Data Privacy and Protection Act.
6    Section 5. Definitions. As used in this Act:
7    "Affirmative express consent" means an affirmative act by
8an individual that clearly communicates the individual's
9freely given, specific, and unambiguous authorization for an
10act or practice after having been informed, in response to a
11specific request from a covered entity, provided:
12        (1) The request is provided to the individual in a
13    clear and conspicuous standalone disclosure made through
14    the primary medium used to offer the covered entity's
15    product or service, or only if the product or service is
16    not offered in a medium that permits the making of the
17    request under this paragraph, another medium regularly
18    used in conjunction with the covered entity's product or
19    service.
20        (2) The request includes a description of the
21    processing purpose for which the individual's consent is
22    sought and:
23            (A) clearly states the specific categories of



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1        covered data that the covered entity shall collect,
2        process, and transfer necessary to effectuate the
3        processing purpose; and
4            (B) includes a prominent heading and is written in
5        easy-to-understand language that would enable a
6        reasonable individual to identify and understand the
7        processing purpose for which consent is sought and the
8        covered data to be collected, processed, or
9        transferred by the covered entity for such processing
10        purpose.
11        (3) The request clearly explains the individual's
12    applicable rights related to consent.
13        (4) The request is made in a manner reasonably
14    accessible to and usable by individuals with disabilities.
15        (5) The request is made available to the individual in
16    each covered language in which the covered entity provides
17    a product or service for which authorization is sought.
18        (6) The option to refuse consent shall be at least as
19    prominent as the option to accept, and the option to
20    refuse consent shall take the same number of steps or
21    fewer as the option to accept.
22        (7) Processing or transferring any covered data
23    collected pursuant to affirmative express consent for a
24    different processing purpose than that for which
25    affirmative express consent was obtained shall require
26    affirmative express consent for the subsequent processing



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1    purpose.
2        (8) affirmative express consent to an act or practice
3    is not inferred from the inaction of the individual or the
4    individual's continued use of a service or product
5    provided by the covered entity.
6        (9) Affirmative express consent is not obtained or
7    attempted to be obtained through:
8            (A) the use of any false, fictitious, fraudulent,
9        or materially misleading statement or representation;
10        or
11            (B) the design, modification, or manipulation of
12        any user interface with the purpose or substantial
13        effect of obscuring, subverting, or impairing a
14        reasonable individual's autonomy, decision-making, or
15        choice to provide such consent or any covered data.
16    "Authentication" means the process of verifying an
17individual or entity for security purposes.
18    "Biometric information" means any covered data generated
19from the technological processing of an individual's unique
20biological, physical, or physiological characteristics that is
21linked or reasonably linkable to an individual. including, but
22is not limited to, fingerprints, voice prints, iris or retina
23scans, facial or hand mapping, geometry, or templates; or gait
24or other unique body movements. "Biometric information" does
25not include a digital or physical photograph, an audio or
26video recording, or data generated from a digital or physical



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1photograph, or an audio or video recording, that cannot be
2used, alone or in combination with other information, to
3identify an individual.
4    "Collect" and "collection" means buying, renting,
5gathering, obtaining, receiving, accessing, or otherwise
6acquiring covered data by any means.
7    "Control" means, with respect to an entity:
8        (1) ownership of, or the power to vote, more than 50%
9    of the outstanding shares of any class of voting security
10    of the entity;
11        (2) control over the election of a majority of the
12    directors of the entity (or of individuals exercising
13    similar functions); or
14        (3) the power to exercise a controlling influence over
15    the management of the entity.
16    "Covered algorithm" means a computational process that
17uses machine learning, natural language processing, artificial
18intelligence techniques, or other computational processing
19techniques of similar or greater complexity and that makes a
20decision or facilitates human decision-making with respect to
21covered data, including to determine the provision of products
22or services or to rank, order, promote, recommend, amplify, or
23similarly determine the delivery or display of information to
24an individual.
25    "Covered data" means information, including derived data
26and unique identifiers, that identifies or is linked or



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1reasonably linkable, alone or in combination with other
2information, to an individual or a device that identifies or
3is linked or reasonably linkable to an individual; provided,
4however, that "covered data" does not include
5        (1) de-identified data;
6        (2) employee data; or
7        (3) publicly available information.
8    "Covered entity" means any entity or any person, other
9than an individual acting in a non-commercial context, that
10alone or jointly with others determines the purposes and means
11of collecting, processing, or transferring covered data.
12"Covered entity" includes any entity or person that controls,
13is controlled by, or is under common control with the covered
14entity. An entity shall not be considered to be a covered
15entity for purposes of this Act in so far as the entity is
16acting as a service provider. "Covered entity" does not
18        (1) a federal, State, tribal, territorial, or local
19    government entity such as a body, authority, board,
20    bureau, commission, district, agency, or political
21    subdivision of the federal government or a State, tribal,
22    territorial, or local government;
23        (2) a person or an entity that is collecting,
24    processing, or transferring covered data on behalf of a
25    federal, State, tribal, territorial, or local government
26    entity, in so far as such person or entity is acting as a



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1    service provider to the government entity; or
2        (3) an entity that serves as a congressionally
3    designated nonprofit, national resource center, and
4    clearinghouse to provide assistance to victims, families,
5    child-serving professionals, and the general public on
6    missing and exploited children issues.
7    "Covered high-impact social media company" means a covered
8entity that provides any Internet-accessible platform where:
9        (1) such covered entity generates $3,000,000,000 or
10    more in annual revenue;
11        (2) such platform has 300,000,000 or more monthly
12    active users for not fewer than 3 of the preceding 12
13    months on the online product or service of such covered
14    entity; and
15        (3) such platform constitutes an online product or
16    service that is primarily used by users to access or
17    share, user-generated content.
18    "Covered language" means the 10 languages with the most
19speakers in the United States, according to the most recent
20decennial census.
21    "Covered minor" means an individual under the age of 17.
22    "Data broker" means a covered entity whose principal
23source of revenue is derived from processing or transferring
24covered data that the covered entity did not collect directly
25from the individuals linked or linkable to the covered data;
26and does not include a covered entity insofar as such entity



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1processes employee data collected by and received from a third
2party concerning any individual who is an employee of the
3third party for the sole purpose of such third party providing
4benefits to the employee. An entity may not be considered to be
5a data broker for purposes of this Act if the entity is acting
6as a service provider. For purposes of this definition,
7"principal source of revenue" means, for the prior 12-month
8period, either:
9        (1) more than 50% of all revenue of the covered
10    entity; or
11        (2) obtaining revenue from processing or transferring
12    the covered data of more than 5,000,000 individuals that
13    the covered entity did not collect directly from the
14    individuals linked or linkable to the covered data.
15    "De-identified data" means information that does not
16identify and is not linked or reasonably linkable to a
17distinct individual or a device, regardless of whether the
18information is aggregated, and if the covered entity or
19service provider:
20        (1) takes technical measures that ensure that the
21    information cannot, at any point, be used to re-identify
22    any individual or device that identifies or is linked or
23    reasonably linkable to an individual;
24        (2) publicly commits in a clear and conspicuous
25    manner:
26            (A) to process and transfer the information solely



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1        in a de-identified form without any reasonable means
2        for re-identification; and
3            (B) to not attempt to re-identify the information
4        with any individual or device that identifies or is
5        linked or reasonably linkable to an individual; and
6        (3) contractually obligates any person or entity that
7    receives the information from the covered entity or
8    service provider:
9            (A) to comply with all of the provisions of this
10        paragraph with respect to the information; and
11            (B) to require that such contractual obligations
12        be included contractually in all subsequent instances
13        for which the data may be received.
14    "Derived data" means covered data that is created by the
15derivation of information, data, assumptions, correlations,
16inferences, predictions, or conclusions from facts, evidence,
17or another source of information or data about an individual
18or an individual's device.
19    "Device" means any electronic equipment capable of
20collecting, processing, or transferring covered data that is
21used by one or more individuals.
22    "Employee" means an individual who is an employee,
23director, officer, staff member, individual working as an
24independent contractor that is not a service provider,
25trainee, volunteer, or intern of an employer, regardless of
26whether such individual is paid, unpaid, or employed on a



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1temporary basis.
2    "Employee data" means:
3        (1) information relating to a job applicant collected
4    by a covered entity acting as a prospective employer of
5    such job applicant in the course of the application, or
6    hiring process, if such information is collected,
7    processed, or transferred by the prospective employer
8    solely for purposes related to the employee's status as a
9    current or former job applicant of such employer;
10        (2) information processed by an employer relating to
11    an employee who is acting in a professional capacity for
12    the employer, provided that such information is collected,
13    processed, or transferred solely for purposes related to
14    such employee's professional activities on behalf of the
15    employer;
16        (3) the business contact information of an employee,
17    including the employee's name, position or title, business
18    telephone number, business address, or business email
19    address that is provided to an employee by an employer who
20    is acting in a professional capacity, if such information
21    is collected, processed, or transferred solely for
22    purposes related to such employee's professional
23    activities on behalf of the employer;
24        (4) emergency contact information collected by an
25    employer that relates to an employee of that employer, if
26    such information is collected, processed, or transferred



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1    solely for the purpose of having an emergency contact on
2    file for the employee and for processing or transferring
3    such information in case of an emergency; or
4        (5) information relating to an employee (or a spouse,
5    dependent, other covered family member, or beneficiary of
6    such employee) that is necessary for the employer to
7    collect, process, or transfer solely for the purpose of
8    administering benefits to which such employee (or spouse,
9    dependent, other covered family member, or beneficiary of
10    such employee) is entitled on the basis of the employee's
11    position with that employer.
12    "First party advertising or marketing" means advertising
13or marketing conducted by a covered entity that collected
14covered data from the individual linked or reasonably linkable
15to that data through either direct communications with the
16individual such as direct mail, email, or text message
17communications, or advertising or marketing conducted entirely
18within the first-party context, such as in a physical location
19operated by or on behalf of such covered entity, or on a web
20site or app operated by or on behalf of such covered entity.
21    "Genetic information" means any covered data, regardless
22of its format, that concerns an individual's genetic
23characteristics, including:
24        (1) raw sequence data that results from the sequencing
25    of the complete, or a portion of the, extracted
26    deoxyribonucleic acid (DNA) of an individual; or



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1        (2) genotypic and phenotypic information that results
2    from analyzing raw sequence data described in paragraph
3    (1).
4    "Individual" means a natural person who is a resident of
5this State or present in this State.
6    "Knowledge" means
7        (1) with respect to a covered entity that is a covered
8    high-impact social media company, the entity knew or
9    should have known the individual was a covered minor;
10        (2) with respect to a covered entity or service
11    provider that is a large data holder, and otherwise is not
12    a covered high-impact social media company, that the
13    covered entity knew or acted in willful disregard of the
14    fact that the individual was a covered minor; and
15        (3) with respect to a covered entity or service
16    provider that does not meet the requirements of paragraph
17    (1) or (2), actual knowledge.
18    "Large data holder" means a covered entity or service
19provider that, in the most recent calendar year:
20        (1) had annual gross revenues of $250,000,000 or more;
21    and
22        (2) collected, processed, or transferred the covered
23    data of more than 5,000,000 individuals or devices that
24    identify or are linked or reasonably linkable to one or
25    more individuals, excluding covered data collected and
26    processed solely for the purpose of initiating, rendering,



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1    billing for, finalizing, completing, or otherwise
2    collecting payment for a requested product or service; and
3    the sensitive covered data of more than 200,000
4    individuals or devices that identify or are linked or
5    reasonably linkable to one or more individuals.
6    "Large data holder" does not include any instance in which
7the covered entity or service provider would qualify as a
8large data holder solely on the basis of collecting or
9processing personal email addresses, personal telephone
10numbers, or log-in information of an individual or device to
11allow the individual or device to log in to an account
12administered by the covered entity or service provider.
13    "Market research" means the collection, processing, or
14transfer of covered data as reasonably necessary and
15proportionate to investigate the market for or marketing of
16products, services, or ideas, where the covered data is not
17integrated into any product or service, otherwise used to
18contact any individual or individual's device, or used to
19advertise or market to any individual or individual's device.
20    "Material" means, with respect to an act, practice, or
21representation of a covered entity (including a representation
22made by the covered entity in a privacy policy or similar
23disclosure to individuals) involving the collection,
24processing, or transfer of covered data, that such act,
25practice, or representation is likely to affect a reasonable
26individual's decision, conduct, or expectations regarding a



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1product or service or processing of personal data.
2    "Precise geolocation information" means information that
3is derived from a device or technology that reveals the past or
4present physical location of an individual or device that
5identifies or is linked or reasonably linkable to one or more
6individuals, with sufficient precision to identify street
7level location information of an individual or device or the
8location of an individual or device within a range of 1,850
9feet or less. "Precise geolocation information" does not
10include geolocation information identifiable or derived solely
11from the visual content of a legally obtained image, including
12the location of the device that captured such image.
13    "Process" means to conduct or direct any operation or set
14of operations performed on covered data, including analyzing,
15organizing, structuring, retaining, storing, using, or
16otherwise handling covered data.
17    "Processing purpose" means a reason for which a covered
18entity or service provider collects, processes, or transfers
19covered data that is specific and granular enough for a
20reasonable individual to understand the material facts of how
21and why the covered entity or service provider collects,
22processes, or transfers the covered data.
23    "Publicly available information" means any information
24that a covered entity or service provider has a reasonable
25basis to believe has been lawfully made available to the
26general public from federal, State, or local government



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1records, if the covered entity collects, processes, and
2transfers such information in accordance with any restrictions
3or terms of use placed on the information by the relevant
4government entity; widely distributed media; a website or
5online service made available to all members of the public,
6for free or for a fee, including where all members of the
7public, for free or for a fee, can log in to the website or
8online service; a disclosure that has been made to the general
9public as required by federal, State, or local law; or the
10visual observation of the physical presence of an individual
11or a device in a public place, not including data collected by
12a device in the individual's possession, provided that for
13purposes of this paragraph, information from a website or
14online service is not available to all members of the public if
15the individual who made the information available via the
16website or online service has restricted the information to a
17specific audience. "Publicly available information" does not
18include any obscene visual depiction (as defined in Section
191460 of title 18, United States Code), any inference made
20exclusively from multiple independent sources of publicly
21available information that reveals sensitive covered data with
22respect to an individual, biometric information, publicly
23available information that has been combined with covered
24data, genetic information, unless otherwise made available by
25the individual to whom the information pertains, or intimate
26images known to have been created or shared without consent.



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1    "Revenue" means, with respect to any covered entity or
2service provider that is not organized to carry on business
3for its own profit or that of its members, the gross receipts
4the covered entity or service provider received, in whatever
5form, from all sources, without subtracting any costs or
6expenses; and includes contributions, gifts, grants, dues or
7other assessments, income from investments, and proceeds from
8the sale of real or personal property.
9    "Sensitive covered data" means the following types of
10covered data:
11        (1) A government-issued identifier, such as a Social
12    Security number, passport number, or driver's license
13    number, that is not required by law to be displayed in
14    public.
15        (2) Any information that describes or reveals the
16    past, present, or future physical health, mental health,
17    disability, diagnosis, or health condition or treatment of
18    an individual.
19        (3) A financial account number, debit card number,
20    credit card number, or information that describes or
21    reveals the income level or bank account balances of an
22    individual, except that the last four digits of a debit or
23    credit card number shall not be deemed sensitive covered
24    data.
25        (4) Biometric information.
26        (5) Genetic information.



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1        (6) Precise geolocation information.
2        (7) An individual's private communications such as
3    voicemail, emails, texts, direct messages, or mail, or
4    information identifying the parties to such
5    communications, voice communications, video
6    communications, and any information that pertains to the
7    transmission of such communications, including telephone
8    numbers called, telephone numbers from which calls were
9    placed, the time calls were made, call duration, and
10    location information of the parties to the call, unless
11    the covered entity or a service provider acting on behalf
12    of the covered entity is the sender or an intended
13    recipient of the communication. Communications are not
14    private for purposes of this clause if such communications
15    are made from or to a device provided by an employer to an
16    employee insofar as such employer provides conspicuous
17    notice that such employer may access such communications.
18        (8) Account or device log-in credentials, or security
19    or access codes for an account or device.
20        (9) Information identifying the sexual behavior of an
21    individual in a manner inconsistent with the individual's
22    reasonable expectation regarding the collection,
23    processing, or transfer of such information.
24        (10) Calendar information, address book information,
25    phone or text logs, photos, audio recordings, or videos,
26    maintained for private use by an individual, regardless of



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1    whether such information is stored on the individual's
2    device or is accessible from that device and is backed up
3    in a separate location. Such information is not sensitive
4    for purposes of this paragraph if such information is sent
5    from or to a device provided by an employer to an employee
6    insofar as such employer provides conspicuous notice that
7    it may access such information.
8        (11) A photograph, film, video recording, or other
9    similar medium that shows the naked or undergarment-clad
10    private area of an individual.
11        (12) Information revealing the video content requested
12    or selected by an individual collected by a covered entity
13    that is not a provider of a service described in paragraph
14    (4). This paragraph does not include covered data used
15    solely for transfers for independent video measurement.
16        (13) Information about an individual when the covered
17    entity or service provider has knowledge that the
18    individual is a covered minor.
19        (14) An individual's race, color, ethnicity, religion,
20    or union membership.
21        (15) Information identifying an individual's online
22    activities over time and across third party websites or
23    online services.
24        (16) Any other covered data collected, processed, or
25    transferred for the purpose of identifying the types of
26    covered data listed in paragraphs (1) through (15).



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1    "Service provider" means a person or entity that collects,
2processes, or transfers covered data on behalf of, and at the
3direction of, a covered entity or a federal, State, tribal,
4territorial, or local government entity; and receives covered
5data from or on behalf of a covered entity or a federal, State,
6tribal, territorial, or local government entity. A service
7provider that receives service provider data from another
8service provider as permitted under this Act shall be treated
9as a service provider under this Act with respect to such data.
10    "Service provider data" means covered data that is
11collected or processed by or has been transferred to a service
12provider by or on behalf of a covered entity, a federal, State,
13tribal, territorial, or local government entity, or another
14service provider for the purpose of allowing the service
15provider to whom such covered data is transferred to perform a
16service or function on behalf of, and at the direction of, such
17covered entity or federal, State, tribal, territorial, or
18local government entity.
19    "Small business" means a covered entity or a service
20provider that meets the following criteria for the period of
21the 3 preceding calendar years (or for the period during which
22the covered entity or service provider has been in existence
23if such period is less than 3 years):
24        (1) the covered entity or service provider's average
25    annual gross revenues during the period did not exceed
26    $41,000,000;



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1        (2) the covered entity or service provider, on
2    average, did not annually collect or process the covered
3    data of more than 200,000 individuals during the period
4    beyond the purpose of initiating, rendering, billing for,
5    finalizing, completing, or otherwise collecting payment
6    for a requested service or product, so long as all covered
7    data for such purpose was deleted or de-identified within
8    90 days, except when necessary to investigate fraud or as
9    consistent with a covered entity's return policy; and
10        (3) is not a data broker.
11    "Substantial privacy risk" means the collection,
12processing, or transfer of covered data in a manner that may
13result in any reasonably foreseeable substantial physical
14injury, economic injury, highly offensive intrusion into the
15privacy expectations of a reasonable individual under the
16circumstances, or discrimination on the basis of race, color,
17religion, national origin, sex, or disability.
18    "Targeted advertising" means presenting to an individual
19or device identified by a unique identifier, or groups of
20individuals or devices identified by unique identifiers, an
21online advertisement that is selected based on known or
22predicted preferences, characteristics, or interests
23associated with the individual or a device identified by a
24unique identifier. "Targeted advertising" does not include:
25advertising or marketing to an individual or an individual's
26device in response to the individual's specific request for



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1information or feedback; contextual advertising, which is when
2an advertisement is displayed based on the content or nature
3of the website or service in which the advertisement appears
4and does not vary based on who is viewing the advertisement; or
5processing covered data strictly necessary for the sole
6purpose of measuring or reporting advertising or content,
7performance, reach, or frequency, including independent
9    "Third party" means:
10        (1) any person or entity, including a covered entity,
11    that:
12            (A) collects, processes, or transfers covered data
13        and is not a consumer-facing business with which the
14        individual linked or reasonably linkable to such
15        covered data expects and intends to interact; and
16            (B) is not a service provider with respect to such
17        data; and
18        (2) does not include a person or entity that collects
19    covered data from another entity if the 2 entities are
20    related by common ownership or corporate control, but only
21    if a reasonable consumer's reasonable expectation would be
22    that such entities share information.
23    "Third-party data" means covered data that has been
24transferred to a third party.
25    "Transfer" means to disclose, release, disseminate, make
26available, license, rent, or share covered data orally, in



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1writing, electronically, or by any other means.
2    "Unique identifier" means an identifier to the extent that
3such identifier is reasonably linkable to an individual or
4device that identifies or is linked or reasonably linkable to
5one or more individuals, including a device identifier,
6Internet Protocol address, cookie, beacon, pixel tag, mobile
7ad identifier, or similar technology, customer number, unique
8pseudonym, user alias, telephone number, or other form of
9persistent or probabilistic identifier that is linked or
10reasonably linkable to an individual or device; provided,
11however, that "unique identifier" does not include an
12identifier assigned by a covered entity for the specific and
13exclusive purpose of giving effect to an individual's exercise
14of affirmative express consent or opt-outs of the collection,
15processing, and transfer of covered data pursuant to this Act
16or otherwise limiting the collection, processing, or transfer
17of such information.
18    "Widely distributed media" means information that is
19available to the general public, including information from a
20telephone book or online directory, a television, Internet, or
21radio program, the news media, or an Internet site that is
22available to the general public on an unrestricted basis, but
23does not include an obscene visual depiction (as defined in 18
24U.S.C. Sec. 1460).
25    Section 10. Data minimization.



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1    (a) A covered entity may not collect, process, or transfer
2covered data unless the collection, processing, or transfer is
3limited to what is reasonably necessary and proportionate to:
4        (1) provide or maintain a specific product or service
5    requested by the individual to whom the data pertains; or
6        (2) effect a purpose permitted under subsection (b).
7    (b) A covered entity may collect, process, or transfer
8covered data for any of the following purposes if the
9collection, processing, or transfer is limited to what is
10reasonably necessary and proportionate to such purpose:
11        (1) To initiate, manage, or complete a transaction or
12    fulfill an order for specific products or services
13    requested by an individual, including any associated
14    routine administrative, operational, and
15    account-servicing activity such as billing, shipping,
16    delivery, storage, and accounting.
17        (2) With respect to covered data previously collected
18    in accordance with this Act, notwithstanding this
19    exception:
20            (A) to process such data as necessary to perform
21        system maintenance or diagnostics;
22            (B) to develop, maintain, repair, or enhance a
23        product or service for which such data was collected;
24            (C) to conduct internal research or analytics to
25        improve a product or service for which such data was
26        collected;



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1            (D) to perform inventory management or reasonable
2        network management;
3            (E) to protect against spam; or
4            (F) to debug or repair errors that impair the
5        functionality of a service or product for which such
6        data was collected.
7        (3) To authenticate users of a product or service.
8        (4) To fulfill a product or service warranty.
9        (5) To prevent, detect, protect against, or respond to
10    a security incident. For purposes of this paragraph,
11    security is defined as network security and physical
12    security and life safety, including an intrusion or
13    trespass, medical alerts, fire alarms, and access control
14    security.
15        (6) To prevent, detect, protect against, or respond to
16    fraud, harassment, or illegal activity targeted at or
17    involving the covered entity or its services. For purposes
18    of this paragraph, "illegal activity" means a violation of
19    a federal, State, or local law punishable as a felony or
20    misdemeanor that can directly harm.
21        (7) To comply with a legal obligation imposed by
22    federal, tribal, local, or State law, or to investigate,
23    establish, prepare for, exercise, or defend legal claims
24    involving the covered entity or service provider.
25        (8) To prevent an individual, or group of individuals,
26    from suffering harm where the covered entity or service



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1    provider believes in good faith that the individual, or
2    group of individuals, is at risk of death, serious
3    physical injury, or other serious health risk.
4        (9) To effectuate a product recall pursuant to federal
5    or State law.
6        (10) To conduct a public or peer-reviewed scientific,
7    historical, or statistical research project that:
8            (A) is in the public interest; and
9            (B) adheres to all relevant laws and regulations
10        governing such research, including regulations for the
11        protection of human subjects, or is excluded from
12        criteria of the institutional review board.
13        (11) To deliver a communication that is not an
14    advertisement to an individual, if the communication is
15    reasonably anticipated by the individual within the
16    context of the individual's interactions with the covered
17    entity.
18        (12) To deliver a communication at the direction of an
19    individual between such individual and one or more
20    individuals or entities.
21        (13) To transfer assets to a third party in the
22    context of a merger, acquisition, bankruptcy, or similar
23    transaction when the third party assumes control, in whole
24    or in part, of the covered entity's assets, only if the
25    covered entity, in a reasonable time prior to such
26    transfer, provides each affected individual with:



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1            (A) a notice describing such transfer, including
2        the name of the entity or entities receiving the
3        individual's covered data and their privacy policies
4        as described in Section 30; and
5            (B) a reasonable opportunity to withdraw any
6        previously given consents in accordance with the
7        requirements of affirmative express consent under this
8        Act related to the individual's covered data and a
9        reasonable opportunity to request the deletion of the
10        individual's covered data, as described in Section 35.
11        (14) To ensure the data security and integrity of
12        covered data, as described in Section 55.
13        (15) to support or promote participation by
14        individuals in civic engagement activities and
15        democratic governance, including voting, petitioning,
16        engaging with government proceedings, providing
17        indigent legal aid services, and unionizing.
18        (16) With respect to covered data previously collected
19        in accordance with this Act, to process such data as
20        necessary to provide first party advertising or
21        marketing of products or services provided by the
22        covered entity for individuals who are not-covered
23        minors.
24        (17) With respect to covered data previously collected
25        in accordance with this Act, provided such collection,
26        processing, and transferring complies with subsection



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1        (c) of Section 40, to provide targeted advertising.
2    (c) A covered entity or service provider may not engage in
3deceptive advertising or marketing with respect to a product
4or service offered to an individual.
5    (d) Nothing in this Act shall be construed to limit or
6diminish First Amendment freedoms guaranteed under the
8    Section 15. Loyalty duties. Notwithstanding Section 10 and
9unless an exception applies, with respect to covered data, a
10covered entity or service provider may not:
11        (1) collect, process, or transfer a Social Security
12    number, except when necessary to facilitate an extension
13    of credit, authentication, fraud and identity fraud
14    detection and prevention, the payment or collection of
15    taxes, the enforcement of a contract between parties, or
16    the prevention, investigation, or prosecution of fraud or
17    illegal activity, or as otherwise required by federal,
18    State, or local law;
19        (2) collect or process sensitive covered data, except
20    where such collection or processing is strictly necessary
21    to provide or maintain a specific product or service
22    requested by the individual to whom the covered data
23    pertains, or is strictly necessary to effect a purpose
24    enumerated in paragraphs (1) through (12) and (14) through
25    (15) of subsection (b) of Section 10;



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1        (3) transfer an individual's sensitive covered data to
2    a third party, unless:
3            (A) the transfer is made pursuant to the
4        affirmative express consent of the individual;
5            (B) the transfer is necessary to comply with a
6        legal obligation imposed by federal, State, tribal, or
7        local law, or to establish, exercise, or defend legal
8        claims;
9            (C) the transfer is necessary to prevent an
10        individual from imminent injury where the covered
11        entity believes in good faith that the individual is
12        at risk of death, serious physical injury, or serious
13        health risk;
14            (D) in the case of the transfer of a password, the
15        transfer is necessary to use a designated password
16        manager or is to a covered entity for the exclusive
17        purpose of identifying passwords that are being
18        re-used across sites or accounts;
19            (E) in the case of the transfer of genetic
20        information, the transfer is necessary to perform a
21        medical diagnosis or medical treatment specifically
22        requested by an individual, or to conduct medical
23        research in accordance with conditions of paragraph
24        (10) of subsection (b) of Section 10; or
25            (F) to transfer assets in the manner described in
26        paragraph (13) of subsection (b) of Section 10; or



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1        (4) in the case of a provider of broadcast television
2    service, cable service, satellite service, streaming media
3    service, or other video programming service described in
4    Section 713(h)(2) of the Communications Act of 1934 (47
5    U.S.C. 613(h)(2)), transfer to an unaffiliated third party
6    covered data that reveals the video content or services
7    requested or selected by an individual from such service,
8    except with the affirmative express consent of the
9    individual or pursuant to one of the permissible purposes
10    enumerated in paragraphs (1) through (15) of subsection
11    (b) of Section 10.
12    Section 20. Privacy by design.
13    (a) A covered entity and a service provider shall
14establish, implement, and maintain reasonable policies,
15practices, and procedures that reflect the role of the covered
16entity or service provider in the collection, processing, and
17transferring of covered data and that:
18        (1) consider applicable federal and State laws, rules,
19    or regulations related to covered data the covered entity
20    or service provider collects, processes, or transfers;
21        (2) identify, assess, and mitigate privacy risks
22    related to covered minors to result in reasonably
23    necessary and proportionate residual risk to covered
24    minors;
25        (3) mitigate privacy risks, including substantial



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1    privacy risks, related to the products and services of the
2    covered entity or the service provider, including in the
3    design, development, and implementation of such products
4    and services, taking into account the role of the covered
5    entity or service provider and the information available
6    to it; and
7        (4) implement reasonable training and safeguards
8    within the covered entity and service provider to promote
9    compliance with all privacy laws applicable to covered
10    data the covered entity collects, processes, or transfers
11    or covered data the service provider collects, processes,
12    or transfers on behalf of the covered entity and mitigate
13    privacy risks, including substantial privacy risks, taking
14    into account the role of the covered entity or service
15    provider and the information available to it.
16    (b) The policies, practices, and procedures established by
17a covered entity and a service provider under subsection (a),
18shall correspond with, as applicable:
19        (1) the size of the covered entity or the service
20    provider and the nature, scope, and complexity of the
21    activities engaged in by the covered entity or service
22    provider, including whether the covered entity or service
23    provider is a large data holder, nonprofit organization,
24    small business, third party, or data broker, taking into
25    account the role of the covered entity or service provider
26    and the information available to it;



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1        (2) the sensitivity of the covered data collected,
2    processed, or transferred by the covered entity or service
3    provider;
4        (3) the volume of covered data collected, processed,
5    or transferred by the covered entity or service provider;
6        (4) the number of individuals and devices to which the
7    covered data collected, processed, or transferred by the
8    covered entity or service provider relates; and
9        (5) the cost of implementing such policies, practices,
10    and procedures in relation to the risks and nature of the
11    covered data.
12    Section 25. Prohibition on retaliation against an
13individual for exercise of rights.
14    (a) A covered entity may not retaliate against an
15individual for exercising any of the rights guaranteed by the
16Act, or any regulations promulgated under this Act, or for
17refusing to agree to collection or processing of covered data
18for a separate product or service, including denying goods or
19services, charging different prices or rates for goods or
20services, or providing a different level of quality of goods
21or services.
22    (b) Nothing in subsection (a) may be construed to:
23        (1) prohibit the relation of the price of a service or
24    the level of service provided to an individual to the
25    provision, by the individual, of financial information



HB3385- 31 -LRB103 30204 SPS 56632 b

1    that is necessarily collected and processed only for the
2    purpose of initiating, rendering, billing for, or
3    collecting payment for a service or product requested by
4    the individual;
5        (2) prohibit a covered entity from offering a
6    different price, rate, level, quality or selection of
7    goods or services to an individual, including offering
8    goods or services for no fee, if the offering is in
9    connection with an individual's voluntary participation in
10    a bona fide loyalty, rewards, premium features, discount
11    or club card program, provided that the covered entity may
12    not transfer covered data to a third party as part of such
13    a program unless:
14            (A) the transfer is reasonably necessary to enable
15        the third party to provide a benefit to which the
16        individual is entitled;
17            (B) the transfer of covered data to third parties
18        is clearly disclosed in the terms of the program; and
19            (C) the third party uses the covered data only for
20        purposes of facilitating such a benefit to which the
21        individual is entitled and does not retain or
22        otherwise use or disclose the covered data for any
23        other purpose, including for the delivery of targeted
24        advertisements.
25        (3) require a covered entity to provide a bona fide
26    loyalty program that would require the covered entity to



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1    collect, process, or transfer covered data that the
2    covered entity otherwise would not collect, process, or
3    transfer;
4        (4) prohibit a covered entity from offering a
5    financial incentive or other consideration to an
6    individual for participation in market research;
7        (5) prohibit a covered entity from offering different
8    types of pricing or functionalities with respect to a
9    product or service based on an individual's exercise of a
10    right under paragraph (3) of subsection (a) of Section 35;
11    or
12        (6) prohibit a covered entity from declining to
13    provide a product or service insofar as the collection and
14    processing of covered data is strictly necessary for such
15    product or service.
16    (c) Notwithstanding the provisions in this subsection, no
17covered entity may offer different types of pricing that are
18unjust, unreasonable, coercive, or usurious in nature.
19    Section 30. Transparency.
20    (a) Each covered entity and service provider shall make
21publicly available, in a clear, conspicuous, not misleading,
22and easy-to-read and readily accessible manner, a privacy
23policy that provides a detailed and accurate representation of
24the data collection, processing, and transfer activities of
25the covered entity. The policy must be provided in a manner



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1that is reasonably accessible to and usable by individuals
2with disabilities. The policy shall be made available to the
3public in each covered language in which the covered entity or
4service provider provides a product or service that is subject
5to the privacy policy; or carries out activities related to
6such product or service. The policy must include, at a
7minimum, the following:
8        (1) The identity and the contact information of:
9            (A) the covered entity or service provider to
10        which the privacy policy applies (including the
11        covered entity's or service provider's points of
12        contact and generic electronic mail addresses, as
13        applicable for privacy and data security inquiries);
14        and
15            (B) any other entity within the same corporate
16        structure as the covered entity or service provider to
17        which covered data is transferred by the covered
18        entity.
19        (2) The categories of covered data the covered entity
20    or service provider collects or processes.
21        (3) The processing purposes for each category of
22    covered data the covered entity or service provider
23    collects or processes.
24        (4) Whether the covered entity or service provider
25    transfers covered data and, if so, each category of
26    service provider and third party to which the covered



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1    entity or service provider transfers covered data, the
2    name of each data broker to which the covered entity or
3    service provider transfers covered data, and the purposes
4    for which such data is transferred to such categories of
5    service providers and third parties or third-party
6    collecting entities, except for a transfer to a
7    governmental entity pursuant to a court order or law that
8    prohibits the covered entity or service provider from
9    disclosing such transfer.
10        (5) The length of time the covered entity or service
11    provider intends to retain each category of covered data,
12    including sensitive covered data, or, if it is not
13    possible to identify that timeframe, the criteria used to
14    determine the length of time the covered entity or service
15    provider intends to retain categories of covered data.
16        (6) A prominent description of how an individual can
17    exercise the rights described in this Act.
18        (7) A general description of the covered entity's or
19    service provider's data security practices.
20        (8) The effective date of the privacy policy.
21    (b) If a covered entity makes a material change to its
22privacy policy or practices, the covered entity shall notify
23each individual affected by such material change before
24implementing the material change with respect to any
25prospectively collected covered data and, except as provided
26in paragraphs (1) through (15) of subsection (b) of Section



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110, provide a reasonable opportunity for each individual to
2withdraw consent to any further materially different
3collection, processing, or transfer of previously collected
4covered data under the changed policy. The covered entity
5shall take all reasonable electronic measures to provide
6direct notification regarding material changes to the privacy
7policy to each affected individual, in each covered language
8in which the privacy policy is made available, and taking into
9account available technology and the nature of the
10relationship. Nothing in this Section may be construed to
11affect the requirements for covered entities under Section 15
12or 25.
13    (c) Each large data holder shall retain copies of previous
14versions of its privacy policy for at least 10 years beginning
15after the date of enactment of this Act and publish them on its
16website. Such large data holder shall make publicly available,
17in a clear, conspicuous, and readily accessible manner, a log
18describing the date and nature of each material change to its
19privacy policy over the past 10 years. The descriptions shall
20be sufficient for a reasonable individual to understand the
21material effect of each material change. The obligations in
22this paragraph shall not apply to any previous versions of a
23large data holder's privacy policy, or any material changes to
24such policy, that precede the date of enactment of this Act.
25    (d) In addition to the privacy policy required under
26subsection (a), a large data holder that is a covered entity



HB3385- 36 -LRB103 30204 SPS 56632 b

1shall provide a short-form notice of its covered data
2practices in a manner that is:
3        (1) concise, clear, conspicuous, and not misleading;
4        (2) readily accessible to the individual, based on
5    what is reasonably anticipated within the context of the
6    relationship between the individual and the large data
7    holder;
8        (3) inclusive of an overview of individual rights and
9    disclosures to reasonably draw attention to data practices
10    that may reasonably be unexpected to a reasonable person
11    or that involve sensitive covered data; and
12        (4) no more than 500 words in length.
13    Section 35. Individual data rights.
14    (a) In accordance with subsections (b) and (c), a covered
15entity shall provide an individual, after receiving a verified
16request from the individual, with the right to:
17        (1) access:
18            (A) in a human-readable format that a reasonable
19        individual can understand and download from the
20        Internet, the covered data (except covered data in a
21        back-up or archival system) of the individual making
22        the request that is collected, processed, or
23        transferred by the covered entity or any service
24        provider of the covered entity within the 24 months
25        preceding the request;



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1            (B) the categories of any third party, if
2        applicable, and an option for consumers to obtain the
3        names of any such third party as well as and the
4        categories of any service providers to whom the
5        covered entity has transferred for consideration the
6        covered data of the individual, as well as the
7        categories of sources from which the covered data was
8        collected; and
9            (C) a description of the purpose for which the
10        covered entity transferred the covered data of the
11        individual to a third party or service provider;
12        (2) correct any verifiable substantial inaccuracy or
13    substantially incomplete information with respect to the
14    covered data of the individual that is processed by the
15    covered entity and instruct the covered entity to make
16    reasonable efforts to notify all third parties or service
17    providers to which the covered entity transferred such
18    covered data of the corrected information;
19        (3) delete covered data of the individual that is
20    processed by the covered entity and instruct the covered
21    entity to make reasonable efforts to notify all third
22    parties or service providers to which the covered entity
23    transferred such covered data of the individual's deletion
24    request; and
25        (4) to the extent technically feasible, export to the
26    individual or directly to another entity the covered data



HB3385- 38 -LRB103 30204 SPS 56632 b

1    of the individual that is processed by the covered entity,
2    including inferences linked or reasonably linkable to the
3    individual but not including other derived data, without
4    licensing restrictions that limit such transfers in:
5            (A) a human-readable format that a reasonable
6        individual can understand and download from the
7        Internet; and
8            (B) a portable, structured, interoperable, and
9        machine-readable format.
10    (b) A covered entity may not condition, effectively
11condition, attempt to condition, or attempt to effectively
12condition the exercise of a right described in subsection (a)
14        (1) the use of any false, fictitious, fraudulent, or
15    materially misleading statement or representation; or
16        (2) the design, modification, or manipulation of any
17    user interface with the purpose or substantial effect of
18    obscuring, subverting, or impairing a reasonable
19    individual's autonomy, decision-making, or choice to
20    exercise such right.
21    (c) Subject to subsections (d) and (e), each request under
22subsection (a) shall be completed by any:
23        (1) large data holder within 45 days after the request
24    from an individual, unless it is demonstrably
25    impracticable or impracticably costly to verify such
26    individual;



HB3385- 39 -LRB103 30204 SPS 56632 b

1        (2) covered entity that is not a large data holder
2    within 60 days after the request from an individual,
3    unless it is demonstrably impracticable or impracticably
4    costly to verify such individual; or
5        (3) a response period set forth in this subsection may
6    be extended once by 45 additional days when reasonably
7    necessary, considering the complexity and number of the
8    individual's requests, so long as the covered entity
9    informs the individual of any such extension within the
10    initial 45-day response period, together with the reason
11    for the extension.
12    (d) A covered entity shall provide an individual with the
13opportunity to exercise each of the rights described in
14subsection (a); and with respect to the first 2 times that an
15individual exercises any right described in subsection (a) in
16any 12-month period, shall allow the individual to exercise
17such right free of charge; and any time beyond the initial 2
18times described in subparagraph (A), may allow the individual
19to exercise such right for a reasonable fee for each request.
20    (e) A covered entity may not permit an individual to
21exercise a right described in subsection (a), in whole or in
22part, if the covered entity:
23        (1) cannot reasonably verify that the individual
24    making the request to exercise the right is the individual
25    whose covered data is the subject of the request or an
26    individual authorized to make such a request on the



HB3385- 40 -LRB103 30204 SPS 56632 b

1    individual's behalf;
2        (2) reasonably believes that the request is made to
3    interfere with a contract between the covered entity and
4    another individual;
5        (3) determines that the exercise of the right would
6    require access to or correction of another individual's
7    sensitive covered data;
8        (4) reasonably believes that the exercise of the right
9    would require the covered entity to engage in an unfair or
10    deceptive practice under Section 5 of the Federal Trade
11    Commission Act (15 U.S.C. 45); or
12        (5) reasonably believes that the request is made to
13    further fraud, support criminal activity, or the exercise
14    of the right presents a data security threat.
15    (f) If a covered entity cannot reasonably verify that a
16request to exercise a right described in subsection (a) is
17made by the individual whose covered data is the subject of the
18request (or an individual authorized to make such a request on
19the individual's behalf), the covered entity:
20        (1) may request that the individual making the request
21    to exercise the right provide any additional information
22    necessary for the sole purpose of verifying the identity
23    of the individual; and
24        (2) may not process or transfer such additional
25    information for any other purpose.
26    (g) A covered entity may decline, with adequate



HB3385- 41 -LRB103 30204 SPS 56632 b

1explanation to the individual, to comply with a request to
2exercise a right described in subsection (a), in whole or in
3part, that would:
4        (1) require the covered entity to retain any covered
5    data collected for a single, one-time transaction, if such
6    covered data is not processed or transferred by the
7    covered entity for any purpose other than completing such
8    transaction;
9        (2) be demonstrably impracticable or prohibitively
10    costly to comply with, and the covered entity shall
11    provide a description to the requester detailing the
12    inability to comply with the request;
13        (3) require the covered entity to attempt to
14    re-identify de-identified data;
15        (4) require the covered entity to maintain covered
16    data in an identifiable form or collect, retain, or access
17    any data in order to be capable of associating a verified
18    individual request with covered data of such individual;
19        (5) result in the release of trade secrets or other
20    privileged or confidential business information;
21        (6) require the covered entity to correct any covered
22    data that cannot be reasonably verified as being
23    inaccurate or incomplete;
24        (7) interfere with law enforcement, judicial
25    proceedings, investigations, or reasonable efforts to
26    guard against, detect, prevent, or investigate fraudulent,



HB3385- 42 -LRB103 30204 SPS 56632 b

1    malicious, or unlawful activity, or enforce valid
2    contracts;
3        (8) violate federal or State law or the rights and
4    freedoms of another individual, including under the
5    Constitution of the United States;
6        (9) prevent a covered entity from being able to
7    maintain a confidential record of deletion requests,
8    maintained solely for the purpose of preventing covered
9    data of an individual from being recollected after the
10    individual submitted a deletion request and requested that
11    the covered entity no longer collect, process, or transfer
12    such data; or
13        (10) with respect to requests for deletion:
14            (A) unreasonably interfere with the provision of
15        products or services by the covered entity to another
16        person it currently serves;
17            (B) delete covered data that relates to a public
18        figure and for which the requesting individual has no
19        reasonable expectation of privacy;
20            (C) delete covered data reasonably necessary to
21        perform a contract between the covered entity and the
22        individual;
23            (D) delete covered data that the covered entity
24        needs to retain in order to comply with professional
25        ethical obligations;
26            (E) delete covered data that the covered entity



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1        reasonably believes may be evidence of unlawful
2        activity or an abuse of the covered entity's products
3        or services; or
4            (F) for private elementary and secondary schools
5        as defined by State law and private institutions of
6        higher education as defined by Title I of the Higher
7        Education Act of 1965, delete covered data that would
8        unreasonably interfere with the provision of education
9        services by or the ordinary operation of the school or
10        institution.
11    (h) In a circumstance that would allow a denial, a covered
12entity shall partially comply with the remainder of the
13request if it is possible and not unduly burdensome to do so.
14    (i) For purposes of paragraph (2) of subsection (g), the
15receipt of a large number of verified requests, on its own, may
16not be considered to render compliance with a request
17demonstrably impracticable.
18    (j) A covered entity shall facilitate the ability of
19individuals to make requests under this Section in any covered
20language in which the covered entity provides a product or
21service. The mechanisms by which a covered entity enables
22individuals to make requests under this Section shall be
23readily accessible and usable by individuals with
25    Section 40. Right to consent.



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1    (a) A covered entity shall provide an individual with a
2clear and conspicuous, easy-to-execute means to withdraw any
3affirmative express consent previously provided by the
4individual that is as easy to execute by a reasonable
5individual as the means to provide consent, with respect to
6the processing or transfer of the covered data of the
8    (b) A covered entity may not transfer or direct the
9transfer of the covered data of an individual to a third party
10without obtaining the individual's affirmative express
12        (1) A covered entity need not allow an individual to
13    opt out of the collection, processing, or transfer of
14    covered data made pursuant to the exceptions in paragraphs
15    (1) through (15) of subsection (b) of Section 10.
16    (c) A covered entity or service provider that directly
17delivers a targeted advertisement shall prior to engaging in
18targeted advertising to an individual gather the affirmative
19express consent of the individual.
20    (d) A covered entity may not condition, effectively
21condition, attempt to condition, or attempt to effectively
22condition the exercise of any individual right under this
23Section through:
24        (1) the use of any false, fictitious, fraudulent, or
25    materially misleading statement or representation; or
26        (2) the design, modification, or manipulation of any



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1    user interface with the purpose or substantial effect of
2    obscuring, subverting, or impairing a reasonable
3    individual's autonomy, decision-making, or choice to
4    exercise any such right.
5    Section 45. Data protections for children and minors.
6    (a) A covered entity may not engage in targeted
7advertising to any individual if the covered entity has
8knowledge that the individual is a covered minor.
9    (b) A covered entity may not transfer or direct the
10transfer of the covered data of a covered minor to a third
11party if the covered entity has knowledge that the individual
12is a covered minor; and has not obtained affirmative express
13consent from the covered minor or the covered minor's parent
14or guardian; provided that a covered entity or service
15provider may collect, process, or transfer covered data of an
16individual the covered entity or service provider knows is
17under the age of 18 solely in order to submit information
18relating to child victimization to law enforcement or to the
19nonprofit, national resource center and clearinghouse
20congressionally designated to provide assistance to victims,
21families, child-serving professionals, and the general public
22on missing and exploited children issues.
23    Section 50. Civil rights.
24    (a) A covered entity or a service provider may not



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1collect, process, or transfer covered data in a manner that
2discriminates in or otherwise makes unavailable the equal
3enjoyment of goods or services on the basis of race, color,
4religion, national origin, sex, or disability. This does not
5apply to:
6    (1) the collection, processing, or transfer of covered
7    data for the purpose of:
8            (A) a covered entity's or a service provider's
9        self-testing to prevent or mitigate unlawful
10        discrimination; or
11            (B) diversifying an applicant, participant, or
12        customer pool; or
13        (2) any private club or group not open to the public,
14    as described in Section 201(e) of the Civil Rights Act of
15    1964 (42 U.S.C. 2000a(e)).
16    Section 55. Data security and protection of covered data.
17    (a) A covered entity or service provider shall establish,
18implement, and maintain reasonable administrative, technical,
19and physical data security practices and procedures to protect
20and secure covered data against unauthorized access and
21acquisition. The practices shall be appropriate to:
22        (1) the size and complexity of the covered entity or
23    service provider;
24        (2) the nature and scope of the covered entity or the
25    service provider's collecting, processing, or transferring



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1    of covered data;
2        (3) the volume and nature of the covered data
3    collected, processed, or transferred by the covered entity
4    or service provider;
5        (4) the sensitivity of the covered data collected,
6    processed, or transferred;
7        (5) the current state of the art (and limitations
8    thereof) in administrative, technical, and physical
9    safeguards for protecting such covered data; and
10        (6) the cost of available tools to improve security
11    and reduce vulnerabilities to unauthorized access and
12    acquisition of such covered data in relation to the risks
13    and nature of the covered data.
14    (b) The data security practices of the covered entity and
15of the service provider required under subsection (a) shall
16include, for each respective entity's own system or systems,
17at a minimum, the following practices:
18        (1) Identifying and assessing any material internal
19    and external risk to, and vulnerability in, the security
20    of each system maintained by the covered entity that
21    collects, processes, or transfers covered data, or service
22    provider that collects, processes, or transfers covered
23    data on behalf of the covered entity, including
24    unauthorized access to or risks to such covered data,
25    human vulnerabilities, access rights, and the use of
26    service providers. With respect to large data holders,



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1    such activities shall include a plan to receive and
2    reasonably respond to unsolicited reports of
3    vulnerabilities by any entity or individual and by
4    performing a reasonable investigation of such reports.
5        (2) Taking preventive and corrective action designed
6    to mitigate reasonably foreseeable risks or
7    vulnerabilities to covered data identified by the covered
8    entity or service provider, consistent with the nature of
9    such risk or vulnerability and the entity's role in
10    collecting, processing, or transferring the data. Such
11    action may include implementing administrative, technical,
12    or physical safeguards or changes to data security
13    practices or the architecture, installation, or
14    implementation of network or operating software, among
15    other actions.
16        (3) Disposing of covered data in accordance with a
17    retention schedule that shall require the deletion of
18    covered data when such data is required to be deleted by
19    law or is no longer necessary for the purpose for which the
20    data was collected, processed, or transferred, unless an
21    individual has provided affirmative express consent to
22    such retention. Such disposal shall include destroying,
23    permanently erasing, or otherwise modifying the covered
24    data to make such data permanently unreadable or
25    indecipherable and unrecoverable to ensure ongoing
26    compliance with this Section. Service providers shall



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1    establish practices to delete or return covered data to a
2    covered entity as requested at the end of the provision of
3    services unless retention of the covered data is required
4    by law, consistent with this Act.
5        (4) Training each employee with access to covered data
6    on how to safeguard covered data and updating such
7    training as necessary.
8        (5) Designating an officer, employee, or employees to
9    maintain and implement such practices.
10        (6) Implementing procedures to detect, respond to, or
11    recover from security incidents, including breaches.
12    Section 60. Small business protections. A small business:
13        (1) is exempt from compliance with paragraph (4) of
14    subsection (a) of Section 35; and
15        (2) at the small business' sole discretion, may comply
16    with paragraph (2) of subsection (a) of Section 35 by,
17    after receiving a verified request from an individual to
18    correct covered data of the individual under such Section,
19    deleting such covered data in its entirety instead of
20    making the requested correction.
21    Section 65. Executive responsibility.
22    (a) Beginning one year after the date of enactment of this
23Act, an executive officer of a large data holder shall
24annually certify, in good faith, to the Attorney General that



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1the entity maintains:
2        (1) internal controls reasonably designed to comply
3    with this Act; and
4        (2) internal reporting structures to ensure that such
5    certifying executive officer is involved in and
6    responsible for the decisions that impact the compliance
7    by the large data holder with this Act.
8    (b) A certification submitted under subsection (a) shall
9be based on a review of the effectiveness of the internal
10controls and reporting structures of the large data holder
11that is conducted by the certifying executive officer not more
12than 90 days before the submission of the certification. A
13certification submitted under subsection (a) is made in good
14faith if the certifying officer had, after a reasonable
15investigation, reasonable ground to believe and did believe,
16at the time that certification was submitted, that the
17statements therein were true and that there was no omission to
18state a material fact required to be stated therein or
19necessary to make the statements therein not misleading.
20    (c) A covered entity or service provider that is not a
21small business shall designate one or more qualified employees
22as privacy officers; and one or more qualified employees as
23data security officers.
24        (1) An employee who is designated by a covered entity
25    or a service provider as a privacy officer or a data
26    security officer shall, at a minimum:



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1            (A) implement a data privacy program and data
2            security program to safeguard the privacy and
3            security of covered data in compliance with the
4            requirements of this Act; and
5            (B) facilitate the covered entity or service
6            provider's ongoing compliance with this Act.
7        (2) A large data holder shall designate at least one
8    of the officers described in subsection (c) to report
9    directly to the highest official at the large data holder
10    as a privacy protection officer who shall, in addition to
11    the requirements in paragraph (1), either directly or
12    through a supervised designee or designees:
13            (A) establish processes to periodically review and
14        update the privacy and security policies, practices,
15        and procedures of the large data holder, as necessary;
16            (B) conduct biennial and comprehensive audits to
17        ensure the policies, practices, and procedures of the
18        large data holder ensure the large data holder is in
19        compliance with this Act and ensure such audits are
20        accessible to the Attorney General upon request;
21            (C) develop a program to educate and train
22        employees about compliance requirements of this Act;
23            (D) maintain updated, accurate, clear, and
24        understandable records of all material privacy and
25        data security practices undertaken by the large data
26        holder; and



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1            (E) serve as the point of contact between the
2        large data holder and enforcement authorities.
3    (d) Not later than one year after the date of enactment of
4this Act and biennially thereafter, each covered entity that
5is not a small business shall conduct a privacy impact
6assessment. Such assessment shall weigh the benefits of the
7covered entity's covered data collecting, processing, and
8transfer practices that may cause a substantial privacy risk
9against the potential material adverse consequences of such
10practices to individual privacy. The covered entity shall make
11a summary of such privacy impact assessment publicly available
12in a place that is easily accessible to individuals. The
13privacy impact assessment shall:
14        (1) be reasonable and appropriate in scope given:
15            (A) the nature of the covered data collected,
16        processed, and transferred by the covered entity;
17            (B) the volume of the covered data collected,
18        processed, and transferred by the covered entity; and
19            (C) the potential risks posed to the privacy of
20        individuals by the collecting, processing, and
21        transfer of covered data by the covered entity;
22        (2) be documented in written form and maintained by
23    the covered entity unless rendered out of date by a
24    subsequent assessment conducted under paragraph (1);
25        (3) include additional information required by
26    regulations issued by the Attorney General;



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1        (4) upon request, make such impact assessments
2    available to the Attorney General; and
3        (5) if the covered entity is a large data holder, be
4    approved by the privacy protection officer designated in
5    this Section, as applicable.
6    Section 70. Service providers and third parties.
7    (a) A service provider:
8        (1) shall adhere to the instructions of a covered
9    entity and only collect, process, and transfer service
10    provider data to the extent necessary and proportionate to
11    provide a service requested by the covered entity, as set
12    out in the contract required by subsection (b), and this
13    paragraph does not require a service provider to collect,
14    process, or transfer covered data if the service provider
15    would not otherwise do so;
16        (2) may not collect, process, or transfer service
17    provider data if the service provider has actual knowledge
18    that a covered entity violated this Act with respect to
19    such data;
20        (3) shall assist a covered entity in responding to a
21    request made by an individual under Section 35 or 40, by
22    either:
23            (A) providing appropriate technical and
24        organizational measures, taking into account the
25        nature of the processing and the information



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1        reasonably available to the service provider, for the
2        covered entity to comply with such request for service
3        provider data; or
4            (B) fulfilling a request by a covered entity to
5        execute an individual rights request that the covered
6        entity has determined should be complied with, by
7        either:
8                (i) complying with the request pursuant to the
9            covered entity's instructions; or
10                (ii) providing written verification to the
11            covered entity that it does not hold covered data
12            related to the request, that complying with the
13            request would be inconsistent with its legal
14            obligations, or that the request falls within an
15            exception to Section 35 or 40;
16        (4) may engage another service provider for purposes
17    of processing service provider data on behalf of a covered
18    entity only after providing that covered entity with
19    notice and pursuant to a written contract that requires
20    such other service provider to satisfy the obligations of
21    the service provider with respect to such service provider
22    data, including that the other service provider be treated
23    as a service provider under this Act;
24        (5) shall, at the covered entity's direction, delete
25    or return all covered data to the covered entity as
26    requested at the end of the provision of services, unless



HB3385- 55 -LRB103 30204 SPS 56632 b

1    retention of the covered data is required by law;
2        (6) shall develop, implement, and maintain reasonable
3    administrative, technical, and physical safeguards that
4    are designed to protect the security and confidentiality
5    of covered data the service provider processes consistent
6    with Section 55; and
7        (7) shall allow and cooperate with, reasonable
8    assessments by the covered entity or the covered entity's
9    designated assessor; alternatively, the service provider
10    may arrange for a qualified and independent assessor to
11    conduct an assessment of the service provider's policies
12    and technical and organizational measures in support of
13    the obligations under this Act using an appropriate and
14    accepted control standard or framework and assessment
15    procedure for such assessments. The service provider shall
16    provide a report of such assessment to the covered entity
17    upon request.
18    (b) A person or entity may only act as a service provider
19pursuant to a written contract between the covered entity and
20the service provider, or a written contract between one
21service provider and a second service provider as described
22under paragraph (4) of subsection (a), if the contract:
23        (1) sets forth the data processing procedures of the
24    service provider with respect to collection, processing,
25    or transfer performed on behalf of the covered entity or
26    service provider;



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1        (2) clearly sets forth:
2            (A) instructions for collecting, processing, or
3        transferring data;
4            (B) the nature and purpose of collecting,
5        processing, or transferring;
6            (C) the type of data subject to collecting,
7        processing, or transferring;
8            (D) the duration of processing; and
9            (E) the rights and obligations of both parties,
10        including a method by which the service provider shall
11        notify the covered entity of material changes to its
12        privacy practices;
13        (3) does not relieve a covered entity or a service
14    provider of any requirement or liability imposed on such
15    covered entity or service provider under this Act; and
16        (4) prohibits:
17            (A) collecting, processing, or transferring
18        covered data in contravention to subsection (a); and
19            (B) combining service provider data with covered
20        data which the service provider receives from or on
21        behalf of another person or persons or collects from
22        the interaction of the service provider with an
23        individual, provided that such combining is not
24        necessary to effectuate a purpose described in
25        paragraphs (1) through (15) of subsection (b) of
26        Section 10 and is otherwise permitted under the



HB3385- 57 -LRB103 30204 SPS 56632 b

1        contract required by this subsection.
2        (5) Each service provider shall retain copies of
3    previous contracts entered into in compliance with this
4    Section with each covered entity to which it provides
5    requested products or services.
6    (c) Relationship between covered entities and service
8        (1) Determining whether a person is acting as a
9    covered entity or service provider with respect to a
10    specific processing of covered data is a fact-based
11    determination that depends upon the context in which such
12    data is processed.
13        (2) A person that is not limited in its processing of
14    covered data pursuant to the instructions of a covered
15    entity, or that fails to adhere to such instructions, is a
16    covered entity and not a service provider with respect to
17    a specific processing of covered data. A service provider
18    that continues to adhere to the instructions of a covered
19    entity with respect to a specific processing of covered
20    data remains a service provider. If a service provider
21    begins, alone or jointly with others, determining the
22    purposes and means of the processing of covered data, it
23    is a covered entity and not a service provider with
24    respect to the processing of such data.
25        (3) A covered entity that transfers covered data to a
26    service provider or a service provider that transfers



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1    covered data to a covered entity or another service
2    provider, in compliance with the requirements of this Act,
3    is not liable for a violation of this Act by the service
4    provider or covered entity to whom such covered data was
5    transferred, if at the time of transferring such covered
6    data, the covered entity or service provider did not have
7    actual knowledge that the service provider or covered
8    entity would violate this Act.
9        (4) A covered entity or service provider that receives
10    covered data in compliance with the requirements of this
11    Act is not in violation of this Act as a result of a
12    violation by a covered entity or service provider from
13    which such data was received.
14    (d) A third party:
15        (1) shall not process third-party data for a
16    processing purpose other than, in the case of sensitive
17    covered data, the processing purpose for which the
18    individual gave affirmative express consent or to effect a
19    purpose enumerated in paragraphs (1), (3), or (5) of
20    subsection (b) of Section 10 and, in the case of
21    non-sensitive data, the processing purpose for which the
22    covered entity made a disclosure pursuant to paragraph (4)
23    of subsection (1) of Section 30;
24        (2) for purposes of paragraph (1), may reasonably rely
25    on representations made by the covered entity that
26    transferred the third party data if the third party



HB3385- 59 -LRB103 30204 SPS 56632 b

1    conducts reasonable due diligence on the representations
2    of the covered entity and finds those representations to
3    be credible; and
4        (3) shall enter into and comply with all provisions of
5    the contract required under subsection (e).
6    (e) A covered entity that transfers covered data to a
7third party shall enter into a written contract with such
8third party that:
9        (1) identifies the specific purposes for which the
10    covered data is being made available to third party;
11        (2) specifies that the covered entity is transferring
12    the covered data to the third party solely for the
13    specific purposes set forth in the contract and that the
14    third party may only use the covered data for such
15    specific purposes;
16        (3) requires the third party to comply with all
17    applicable provisions of and regulations promulgated under
18    this Act with respect to the covered data that the covered
19    entity transfers to the third party and must provide the
20    same level of privacy and security protection for the
21    covered data as required by covered entities under this
22    Act.
23    (f) A covered entity or service provider shall exercise
24reasonable due diligence in:
25        (1) selecting a service provider; and
26        (2) deciding to transfer covered data to a third



HB3385- 60 -LRB103 30204 SPS 56632 b

1    party.
2    (g) Solely for the purposes of this Section, the
3requirements for service providers to contract with, assist,
4and follow the instructions of covered entities shall be read
5to include requirements to contract with, assist, and follow
6the instructions of a government entity if the service
7provider is providing a service to a government entity.
8    Section 75. Enforcement. The Attorney General, State's
9Attorney, or a municipality's attorney may bring a civil
10action in the name of the State, or as parens patriae on behalf
11of the residents of the State, against any covered entity or
12service provider that violated this Act to:
13        (1) enjoin such act or practice;
14        (2) enforce compliance with this Act or such
15    regulation;
16        (3) obtain damages, civil penalties, restitution, or
17    other compensation on behalf of the residents of such
18    State; or
19        (4) obtain reasonable attorneys' fees and other
20    litigation costs reasonably incurred.
21    Section 80. Enforcement by persons.
22    (a) Any person or class of persons subject to a violation
23of this Act or a regulation promulgated under this Act by a
24covered entity or service provider may bring a civil action



HB3385- 61 -LRB103 30204 SPS 56632 b

1against such entity in any court of competent jurisdiction.
2    (b) In a civil action brought under paragraph (a) in which
3a plaintiff prevails, the court may award the plaintiff:
4        (1) an amount equal to the sum of any compensatory,
5    liquidated, or punitive damages;
6        (2) injunctive relief;
7        (3) declaratory relief; and
8        (4) reasonable attorney's fees and litigation costs.
9    (c) This Section shall not apply to any claim against a
10small business.
11    Section 85. Rulemaking.
12    (a) The Attorney General may adopt rules for the purposes
13of carrying out this Act, including, but not limited to, the
14following areas:
15        (1) adjusting the monetary thresholds in January of
16    every odd-numbered year to reflect any increase in the
17    Consumer Price Index, and the data collected thresholds in
18    the definition of "large data holder" and "small business"
19    as appropriate;
20        (2) further defining "precise geolocation
21    information," such as where the size defined is not
22    sufficient to protect individual privacy in sparsely
23    populated areas, or when the covered data is used for
24    normal operational purposes, such as billing;
25        (3) updating or adding categories to the definition of



HB3385- 62 -LRB103 30204 SPS 56632 b

1    "sensitive covered data" any other type of covered data
2    that may require a similar level of protection as the
3    types of covered data listed in the definition of
4    "sensitive covered data" as a result of any new method of
5    collecting, processing, or transferring covered data;
6        (4) further defining and adding to the permissible
7    purposes under subsection (b) of Section 10 for which
8    covered entities and service providers may use covered
9    data, as long as such purposes are consistent with the
10    reasonable expectations of individuals;
11        (5) further defining what constitutes reasonable
12    policies, practices, and procedures under Section 20;
13        (6) establishing processes by which covered entities
14    are to comply with the provisions of Section 35. Such
15    regulations may take into consideration:
16            (A) the size of, and the nature, scope, and
17        complexity of the activities engaged in by the covered
18        entity, including whether the covered entity is a
19        large data holder, nonprofit organization, small
20        business, third party, or data broker;
21            (B) the sensitivity of covered data collected,
22        processed, or transferred by the covered entity;
23            (C) the volume of covered data collected,
24        processed, or transferred by the covered entity;
25            (D) the number of individuals and devices to which
26        the covered data collected, processed, or transferred



HB3385- 63 -LRB103 30204 SPS 56632 b

1        by the covered entity relates; and
2            (E) standards for ensuring the deletion of covered
3        data under this Act where appropriate;
4        (7) establishing rules and procedures to further the
5    purposes of Section 35 and to facilitate an individual's
6    or the individual's authorized agent's ability to delete
7    covered data, correct inaccurate covered data, or obtain
8    covered data, with the goal of minimizing the
9    administrative burden on individuals, taking into account
10    available technology, security concerns, and the burden on
11    the covered entity, to govern a covered entity's
12    determination that a request for information received by
13    from an individual is a verifiable consumer request,
14    including treating a request submitted through a
15    password-protected account maintained by the individual
16    with the covered entity while the individual is logged
17    into the account as a verifiable request and providing a
18    mechanism for an individual who does not maintain an
19    account with the covered entity to request information
20    through the covered entity's authentication of the
21    individual's identity;
22        (8) establishing additional permissive exceptions
23    necessary to protect the rights of individuals, prevent
24    unjust or unreasonable outcomes from the exercise of
25    access, correction, deletion, or portability rights, or as
26    otherwise necessary to fulfill the purposes of this



HB3385- 64 -LRB103 30204 SPS 56632 b

1    Section. In establishing such exceptions, the Attorney
2    General should consider any relevant changes in
3    technology, means for protecting privacy and other rights,
4    and beneficial uses of covered data by covered entities;
5        (9) establishing how often, and under what
6    circumstances, an individual may request a correction
7    pursuant to Section 35;
8        (10) requiring covered entities obligated to conduct
9    impact assessments under subsection (d) of Sections 65 to
10    establish a process to ensure that audits are thorough and
11    independent;
12        (11) requiring additional information necessary for
13    compliance with the impact assessment required under
14    subsection (d) of Sections 65; and
15        (12) setting compliance requirements for service
16    providers and third parties under Section 70.
17    Section 97. Severability. The provisions of this Act are
18severable under Section 1.31 of the Statute on Statutes.
19    Section 99. Effective date. This Act takes effect 180 days
20after becoming law.