2024 -- S 2500 SUBSTITUTE A | |
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LC005228/SUB A | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2024 | |
____________ | |
A N A C T | |
RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- | |
RHODE ISLAND DATA TRANSPARENCY AND PRIVACY PROTECTION ACT | |
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Introduced By: Senators DiPalma, Euer, and DiMario | |
Date Introduced: March 01, 2024 | |
Referred To: Senate Commerce | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Legislative findings. |
2 | The general assembly hereby finds and declares that: |
3 | (1) The right to privacy is a personal and fundamental right protected by the United States |
4 | Constitution. As such, all individuals have a right to privacy in information pertaining to them. This |
5 | state recognizes the importance of providing customers with transparency about how their |
6 | personally identifiable information, especially information relating to their children, is shared by |
7 | businesses. This transparency is crucial for Rhode Island citizens to protect themselves and their |
8 | families from cyber-crimes and identity thieves. |
9 | (2) Customers should know whether their personally identifiable information could be sold |
10 | when they conduct business online or contract with an internet service provider. This information |
11 | should be readily accessible on the entity's website in a conspicuous location or in a conspicuous |
12 | location in its customer service agreement. Moreover, entities which control or process data of at |
13 | least thirty-five thousand (35,000) customers or if they process data of more than ten thousand |
14 | (10,000) customers and derive more than twenty percent (20%) of their profit from the sale of |
15 | personally identifiable data should make it possible for customers to opt in and opt out of the |
16 | collection of their data and control what happens with their personally identifiable information |
17 | (3) Businesses are now collecting personal data and disclosing it in ways not contemplated |
18 | or properly covered by the current law. Some websites are installing tracking tools that record when |
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1 | customers visit webpages, and sending personal data, such as age, gender, race, income, health |
2 | concerns, religion, and recent purchases to third-party marketers and data brokers. Third-party data |
3 | broker companies are buying and disclosing personal data obtained from mobile phones, financial |
4 | institutions, social media sites, and other online and brick and mortar companies. Some mobile |
5 | applications are sharing personal data, such as location information, unique phone identification |
6 | numbers, age, gender, and other personal details with third-party companies. |
7 | (4) As such, customers need to know the ways that their personal data are being collected |
8 | by companies and then shared or sold to third parties in order to properly protect their privacy, |
9 | personal safety, and financial security. |
10 | SECTION 2. Title 6 of the General Laws entitled "COMMERCIAL LAW — GENERAL |
11 | REGULATORY PROVISIONS" is hereby amended by adding thereto the following chapter: |
12 | CHAPTER 48.1 |
13 | RHODE ISLAND DATA TRANSPARENCY AND PRIVACY PROTECTION ACT |
14 | 6-48.1-1. Short title. |
15 | This chapter shall be known and may be cited as the "Rhode Island Data Transparency and |
16 | Privacy Protection Act". |
17 | 6-48.1-2. Definitions. |
18 | As used in this chapter: |
19 | (1) "Affiliate" means any entity that shares common branding with another legal entity |
20 | directly or indirectly, controls, is controlled by, or is under common control with another legal |
21 | entity. For this purpose, "control" or "controlled" means ownership of, or the power to vote, more |
22 | than fifty percent (50%) of the outstanding shares of any class of voting security of a company, |
23 | control in any manner over the election of a majority of the directors or of individuals exercising |
24 | similar functions, or the power to exercise controlling influence over the management of a |
25 | company. |
26 | (2) "Authenticate" means to use reasonable means to determine that a request to exercise |
27 | any of the rights afforded under this chapter is being made by, or on behalf of, the customer who is |
28 | entitled to exercise such customer rights with respect to the personal data at issue. |
29 | (3) "Biometric data" means data generated by automatic measurements of an individual's |
30 | biological characteristics, such as a fingerprint, a voiceprint, eye retinas, irises or other unique |
31 | biological patterns or characteristics that are used to identify a specific individual. "Biometric data" |
32 | does not include a digital or physical photograph, an audio or video recording, or any data generated |
33 | from a digital or physical photograph, or an audio or video recording, unless such data is generated |
34 | to identify a specific individual. |
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1 | (4) "Business associate" has the same meaning as provided in 45 C.F.R. § 160.103. |
2 | (5) "Child" has the same meaning as provided in 15 U.S.C. § 6501. |
3 | (6) "Consent" means a clear, affirmative act signifying a customer has freely given, |
4 | specific, informed and unambiguous agreement to allow the processing of personal data relating to |
5 | the customer. "Consent" may include a written statement, including by electronic means, or any |
6 | other unambiguous affirmative action. "Consent" does not include acceptance of a general or broad |
7 | term of use or similar document that contains descriptions of personal data processing along with |
8 | other, unrelated information, hovering over, muting, pausing or closing a given piece of content, or |
9 | agreement obtained through the use of dark patterns. |
10 | (7) "Controller" means an individual who, or legal entity that, alone or jointly with others |
11 | determines the purpose and means of processing personal data. |
12 | (8) "COPPA" means the Children's Online Privacy Protection Act of 1998, 15 USC § 6501 |
13 | et seq., and the regulations, rules, guidance and exemptions adopted, pursuant to said act, as said |
14 | act and such regulations, rules, guidance and exemptions may be amended from time to time. |
15 | (9) "Covered entity" has the same meaning as provided in 45 C.F.R. § 160.103. |
16 | (10) "Customer" means an individual residing in this state acting in an individual or |
17 | household context. "Customer" does not include an individual acting in a commercial or |
18 | employment context or as an employee, owner, director, officer or contractor of a company, |
19 | partnership, sole proprietorship, nonprofit or government agency whose communications or |
20 | transactions with the controller occur solely within the context of that individual's role with the |
21 | company, partnership, sole proprietorship, nonprofit or government agency. |
22 | (11) "Dark pattern" means a user interface designed or manipulated with the substantial |
23 | effect of subverting or impairing user autonomy, decision-making or choice, and includes, but is |
24 | not limited to, any practice the Federal Trade Commission refers to as a "dark pattern". |
25 | (12) "Decisions that produce legal or similarly significant effects concerning the customer" |
26 | means decisions made by the controller that result in the provision or denial by the controller of |
27 | financial or lending services, housing, insurance, education enrollment or opportunity, criminal |
28 | justice, employment opportunities, health care services or access to essential goods or services. |
29 | (13) "De-identified data" means data that cannot reasonably be used to infer information |
30 | about, or otherwise be linked to, an identified or identifiable individual, or a device linked to such |
31 | individual. |
32 | (14) "HIPAA" means the Health Insurance Portability and Accountability Act of 1996, 42 |
33 | USC § 1320d et seq., as amended from time to time. |
34 | (15) "Identified or identifiable individual" means an individual who can be readily |
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1 | identified, directly or indirectly. |
2 | (16) "Institution of higher education" means any individual who, or school, board, |
3 | association, limited liability company or corporation that, is licensed or accredited to offer one or |
4 | more programs of higher learning leading to one or more degrees. |
5 | (17) "Nonprofit organization" means any organization that is exempt from taxation under |
6 | Section 501(c)(3), 501(c)(4), 501(c)(6) or 501(c)(12) of the Internal Revenue Code of 1986, or any |
7 | subsequent corresponding Internal Revenue Code of the United States, as amended from time to |
8 | time. |
9 | (18) "Personal data" means any information that is linked or reasonably linkable to an |
10 | identified or identifiable individual and does not include de-identified data or publicly available |
11 | information. |
12 | (19) "Precise geolocation data" means information derived from technology, including, |
13 | but not limited to, global positioning system level latitude and longitude coordinates or other |
14 | mechanisms, that directly identifies the specific location of an individual with precision and |
15 | accuracy within a radius of one thousand seven hundred fifty feet (1,750'). "Precise geolocation |
16 | data" does not include the content of communications or any data generated by or connected to |
17 | advanced utility metering infrastructure systems or equipment for use by a utility. |
18 | (20) "Process" or "processing" means any operation or set of operations performed, |
19 | whether by manual or automated means, on personal data or on sets of personal data, such as the |
20 | collection, use, storage, disclosure, analysis, deletion or modification of personal data. "Processor" |
21 | means an individual who, or legal entity that, processes personal data on behalf of a controller. |
22 | (21) "Profiling" means any form of automated processing performed on personal data to |
23 | evaluate, analyze or predict personal aspects related to an identified or identifiable individual's |
24 | economic situation, health, personal preferences, interests, reliability, behavior, location or |
25 | movements. |
26 | (22) "Protected health information" has the same meaning as provided in 42 USC § 1320d. |
27 | (23) "Pseudonymous data" means personal data that cannot be attributed to a specific |
28 | individual without the use of additional information; provided such additional information is kept |
29 | separately and is subject to appropriate technical and organizational measures to ensure that the |
30 | personal data is not attributed to an identified or identifiable individual. |
31 | (24) "Publicly available information" means information that is lawfully made available |
32 | through federal, state or municipal government records or widely distributed media, or a controller |
33 | has a reasonable basis to believe a customer has lawfully made available to the general public. |
34 | (25) "Sale of personal data" means the exchange of personal data for monetary or other |
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1 | valuable consideration by the controller to a third party. "Sale of personal data" does not include |
2 | the disclosure of personal data to a processor that processes the personal data on behalf of the |
3 | controller, the disclosure of personal data to a third party for purposes of providing a product or |
4 | service requested by the customer, the disclosure or transfer of personal data to an affiliate of the |
5 | controller, the disclosure of personal data where the customer directs the controller to disclose the |
6 | personal data or intentionally uses the controller to interact with a third party, the disclosure of |
7 | personal data that the customer: |
8 | (i) Intentionally made available to the general public via a channel of mass media; and |
9 | (ii) Did not restrict to a specific audience, or the disclosure or transfer of personal data to |
10 | a third party as an asset that is part of a merger, acquisition, bankruptcy or other transaction, or a |
11 | proposed merger, acquisition, bankruptcy or other transaction, in which the third party assumes |
12 | control of all or part of the controller's assets. |
13 | (26) "Sensitive data" means personal data that includes data revealing racial or ethnic |
14 | origin, religious beliefs, mental or physical health condition or diagnosis, sex life, sexual orientation |
15 | or citizenship or immigration status, the processing of genetic or biometric data for the purpose of |
16 | uniquely identifying an individual, personal data collected from a known child, or precise |
17 | geolocation data. |
18 | (27) "Targeted advertising" means displaying advertisements to a customer where the |
19 | advertisement is selected based on personal data obtained or inferred from that customer's activities |
20 | over time and across nonaffiliated Internet websites or online applications to predict such |
21 | customer's preferences or interests. "Targeted advertising" does not include advertisements based |
22 | on activities within a controller's own Internet websites or online applications, advertisements |
23 | based on the context of a customer's current search query, or current visit to an Internet website or |
24 | online application, advertisements directed to a customer in response to the customer's request for |
25 | information or feedback, or processing personal data solely to measure or report advertising |
26 | frequency, performance or reach. |
27 | (28) "Third party" means an individual or legal entity, such as a public authority, agency |
28 | or body, other than the customer, controller or processor or an affiliate of the processor or of the |
29 | controller. |
30 | (29) "Trade secret" has the same meaning as § 6-41-1. |
31 | 6-48.1-3. Information sharing practices. |
32 | (a) Any commercial website or internet service provider conducting business in Rhode |
33 | Island or with customers in Rhode Island or otherwise subject to Rhode Island jurisdiction, shall |
34 | designate a controller. If a commercial website or Internet service provider collects, stores and sells |
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1 | customers' personally identifiable information, then the controller shall, in its customer agreement |
2 | or incorporated addendum, or in another conspicuous location on its website or online service |
3 | platform where similar notices are customarily posted: |
4 | (1) Identify all categories of personal data that the controller collects through the website |
5 | or online service about customers; |
6 | (2) Identify all third parties to whom the controller has sold or may sell customers' |
7 | personally identifiable information; and |
8 | (3) Identify an active electronic mail address or other online mechanism that the customer |
9 | may use to contact the controller. |
10 | (b) If a controller sells personal data to third parties or processes personal data for targeted |
11 | advertising, the controller shall clearly and conspicuously disclose such processing. |
12 | (c) Nothing in this chapter shall be construed to authorize the collection, storage or |
13 | disclosure of information or data that is otherwise prohibited or restricted by state or federal law. |
14 | (d) This chapter does not apply to any body, authority, board, bureau, commission, district |
15 | or agency of this state or any political subdivision of this state; nonprofit organization; institution |
16 | of higher education; national securities association that is registered under 15 U.S.C. § 78o-3 of the |
17 | Securities Exchange Act of 1934, as amended from time to time; financial institution or data subject |
18 | to Title V of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6801 et seq.; or covered entity or business |
19 | associate, as defined in 45 C.F.R. § 160.103. |
20 | (e) The following information and data are exempt from the provisions of this chapter: |
21 | (1) Protected health information under HIPAA; |
22 | (2) Patient-identifying information for purposes of 42 U.S.C. § 290dd-2; |
23 | (3) Identifiable private information for purposes of the federal policy for the protection of |
24 | human research subjects under 45 C.F.R. §§ 46.101 through 46.124; |
25 | (4) Identifiable private information that is otherwise information collected as part of human |
26 | subjects research pursuant to the good clinical practice guidelines issued by the International |
27 | Council for Harmonization of Technical Requirements for Pharmaceuticals for Human Use; |
28 | (5) The protection of human subjects under 21 C.F.R. Parts 50 and 56, or personal data |
29 | used or shared in research, as defined in 45 C.F.R. § 164.501 or other research conducted in |
30 | accordance with applicable law; |
31 | (6) Information and documents created for purposes of the Health Care Quality |
32 | Improvement Act of 1986, 42 U.S.C. § 11101 et seq.; |
33 | (7) Patient safety work product for purposes of the Patient Safety and Quality Improvement |
34 | Act, 42 U.S.C. § 299b-21 et seq., as amended from time to time; |
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1 | (8) Information derived from any of the health care related information listed in this |
2 | subsection that is de-identified in accordance with the requirements for de-identification pursuant |
3 | to HIPAA; |
4 | (9) Information originating from and intermingled to be indistinguishable with, or |
5 | information treated in the same manner as, information exempt under this subsection that is |
6 | maintained by a covered entity or business associate, program or qualified service organization, as |
7 | specified in 42 U.S.C. § 290dd-2, as amended from time to time; |
8 | (10) Information used for public health activities and purposes as authorized by HIPAA, |
9 | community health activities and population health activities; |
10 | (11) The collection, maintenance, disclosure, sale, communication or use of any personal |
11 | information bearing on a customer's credit worthiness, credit standing, credit capacity, character, |
12 | general reputation, personal characteristics or mode of living by a customer reporting agency, |
13 | furnisher or user that provides information for use in a customer report, and by a user of a customer |
14 | report, but only to the extent that such activity is regulated by and authorized under the Fair Credit |
15 | Reporting Act, 15 U.S.C. § 1681 et seq., as amended from time to time; |
16 | (12) Personal data collected, processed, sold or disclosed in compliance with the Driver's |
17 | Privacy Protection Act of 1994, 18 U.S.C. § 2721 et seq., as amended from time to time; |
18 | (13) Personal data regulated by the Family Educational Rights and Privacy Act, 20 U.S.C. |
19 | § 1232g et seq., as amended from time to time; |
20 | (14) Personal data collected, processed, sold or disclosed in compliance with the Farm |
21 | Credit Act, 12 U.S.C. § 2001 et seq., as amended from time to time; |
22 | (15) Data processed or maintained in the course of an individual applying to, employed by |
23 | or acting as an agent or independent contractor of a controller, processor or third party, to the extent |
24 | that the data is collected and used within the context of that role, as the emergency contact |
25 | information of an individual or that is necessary to retain to administer benefits for another |
26 | individual relating to the individual who is the subject of the information under this subsection and |
27 | used for the purposes of administering such benefits; and |
28 | (16) Personal data collected, processed, sold or disclosed in relation to price, route or |
29 | service, as such terms are used in the Airline Deregulation Act, 49 U.S.C. § 40101 et seq., as |
30 | amended from time to time, by an air carrier subject to said act, to the extent subsections 1 to 11, |
31 | inclusive, of this section are preempted by the Airline Deregulation Act, 49 U.S.C. § 41713, as |
32 | amended from time to time. |
33 | 6-48.1-4. Processing of information. |
34 | (a) This section shall apply to for-profit entities that conduct business in the state or for- |
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1 | profit entities that produce products or services that are targeted to residents of the state and that |
2 | during the preceding calendar year did any of the following: |
3 | (1) Controlled or processed the personal data of not less than thirty-five thousand (35,000) |
4 | customers, excluding personal data controlled or processed solely for the purpose of completing a |
5 | payment transaction. |
6 | (2) Controlled or processed the personal data of not less than ten thousand (10,000) |
7 | customers and derived more than twenty percent (20%) of their gross revenue from the sale of |
8 | personal data. |
9 | (b) The controller shall establish, implement, and maintain reasonable administrative, |
10 | technical and physical data security practices to protect the confidentiality, integrity and |
11 | accessibility of personal data. |
12 | (c) The controller shall not process sensitive data concerning a customer without obtaining |
13 | customer consent and shall not process sensitive data of a known child unless consent is obtained |
14 | and the information is processed in accordance with COPPA. Controllers and processors that |
15 | comply with the verifiable parental consent requirements of the Children's Online Privacy |
16 | Protection Act (15 U.S.C. § 6501 et seq.) shall be deemed compliant with any obligation to obtain |
17 | parental consent under this chapter. |
18 | (d) The controller shall not process personal data in violation of the laws of this state and |
19 | federal laws that prohibit unlawful discrimination against customers. |
20 | (e) The controller shall provide customers with a mechanism to grant and revoke consent |
21 | to collect, store and sell their personally identifiable information. Upon receipt of revocation, the |
22 | controller shall suspend the processing of data as soon as is practicable. The controller shall have |
23 | no longer than fifteen (15) days from receipt to effectuate the revocation. |
24 | 6-48.1-5. Customer rights. |
25 | (a) This section shall apply to for-profit entities that conduct business in the state or for- |
26 | profit entities that produce products or services that are targeted to residents of the state and that |
27 | during the preceding calendar year did any of the following: |
28 | (1) Controlled or processed the personal data of not less than thirty-five thousand (35,000) |
29 | customers, excluding personal data controlled or processed solely for the purpose of completing a |
30 | payment transaction. |
31 | (2) Controlled or processed the personal data of not less than ten thousand (10,000) |
32 | customers and derived more than twenty percent (20%) of their gross revenue from the sale of |
33 | personal data. |
34 | (b) No controller shall discriminate against a customer for exercising their customer rights. |
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1 | (c) No controller shall deny goods or services, charge different prices or rates for goods or |
2 | services or provide a different level of quality of goods or services to the customer if the customer |
3 | does not consent to use of their data. However, if a customer opts out of data collection, the covered |
4 | entity is not required to provide a service that requires this data collection. |
5 | (d) Controllers may provide different prices and levels for goods and services if it is for a |
6 | bona fide loyalty, rewards, premium features, discount or club card programs that customers |
7 | voluntarily participate. |
8 | (e) A customer shall have the right to: |
9 | (1) Confirm whether or not a controller is processing the customer's personal data and |
10 | access such personal data, unless such confirmation or access would require the controller to reveal |
11 | a trade secret; |
12 | (2) Correct inaccuracies in the customer's personal data and delete personal data provided |
13 | by, or obtained about, the customer, taking into account the nature of the personal data and the |
14 | purposes of the processing of the customer's personal data; |
15 | (3) Obtain a copy of the customer's personal data processed by the controller, in a portable |
16 | and, to the extent technically feasible, readily usable format that allows the customer to transmit |
17 | the data to another controller without undue delay, where the processing is carried out by automated |
18 | means; provided such controller shall not be required to reveal any trade secret; and |
19 | (4) Opt out of the processing of the personal data for purposes of targeted advertising, the |
20 | sale of personal data, or profiling in furtherance of solely automated decisions that produce legal |
21 | or similarly significant effects concerning the customer. |
22 | (f) A customer may exercise rights under this section by secure and reliable means |
23 | established by the controller and described to the customer in the controller's privacy notice. A |
24 | customer may designate an authorized agent to exercise the rights to opt out on their behalf. In the |
25 | case of processing personal data of a known child, the parent or legal guardian may exercise such |
26 | customer rights on the child's behalf. In the case of processing personal data concerning a customer |
27 | subject to a guardianship, conservatorship or other protective arrangement, the guardian or the |
28 | conservator of the customer may exercise such rights on the customer's behalf. |
29 | 6-48.1-6. Exercising customer rights. |
30 | (a) This section shall apply to for-profit entities that conduct business in the state or for- |
31 | profit entities that produce products or services that are targeted to residents of the state and that |
32 | during the preceding calendar year did any of the following: |
33 | (1) Controlled or processed the personal data of not less than thirty-five thousand (35,000) |
34 | customers, excluding personal data controlled or processed solely for the purpose of completing a |
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1 | payment transaction. |
2 | (2) Controlled or processed the personal data of not less than ten thousand (10,000) |
3 | customers and derived more than twenty percent (20%) of their gross revenue from the sale of |
4 | personal data. |
5 | (b) A controller shall comply with a request by a customer to exercise the customer rights |
6 | authorized as follows: |
7 | (1) A controller shall respond to the customer without undue delay, but not later than forty- |
8 | five (45) days after receipt of the request. The controller may extend the response period by forty- |
9 | five (45) additional days when reasonably necessary, considering the complexity and number of |
10 | the customer's requests; provided the controller informs the customer of any such extension within |
11 | the initial forty-five (45) day response period and of the reason for the extension. |
12 | (2) If a controller declines to act regarding the customer's request, the controller shall |
13 | inform the customer without undue delay, but not later than forty-five (45) days after receipt of the |
14 | request, of the justification for declining to act and instructions for how to appeal the decision. |
15 | (3) Information provided in response to a customer request shall be provided by a |
16 | controller, free of charge, once per customer during any twelve (12) month period. If requests from |
17 | a customer are manifestly unfounded, excessive or repetitive, the controller may charge the |
18 | customer a reasonable fee to cover the administrative costs of complying with the request or decline |
19 | to act on the request. The controller bears the burden of demonstrating the manifestly unfounded, |
20 | excessive or repetitive nature of the request. |
21 | (4) If a controller is unable to authenticate a request to exercise any of the rights afforded, |
22 | the controller shall not be required to comply with a request to initiate an action pursuant to this |
23 | section and shall provide notice to the customer that the controller is unable to authenticate the |
24 | request to exercise such right or rights until such customer provides additional information |
25 | reasonably necessary to authenticate such customer and such customer's request to exercise such |
26 | right or rights. A controller shall not be required to authenticate an opt-out request, but may deny |
27 | an opt-out request if the controller has reasonable and documented belief that such request is |
28 | fraudulent. If a controller denies an opt-out request because the controller believes such request is |
29 | fraudulent, the controller shall send a notice to the person who made such request disclosing that |
30 | such controller believes such request is fraudulent, why such controller believes such request is |
31 | fraudulent and that such controller shall not comply with such request. |
32 | (5) A controller that has obtained personal data about a customer from a source other than |
33 | the customer shall be deemed in compliance with a customer's request to delete such data by doing |
34 | the following: |
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1 | (i) Retaining a record of the deletion request and the minimum data necessary for the |
2 | purpose of ensuring the customer’s personal data remains deleted from the controller’s records and |
3 | not using such retained data for any other purpose pursuant to the provisions of this chapter; or |
4 | (ii) Opting the customer out of the processing of such personal data for any purpose except |
5 | for those exempted pursuant to the provisions of this chapter. |
6 | (6) A controller shall establish a process for a customer to appeal the controller's refusal to |
7 | take action on a request within a reasonable period of time after the customer's receipt of the |
8 | decision. The appeal process shall be clearly and conspicuously available. Not later than sixty (60) |
9 | days after receipt of an appeal, a controller shall inform the customer in writing of any action taken |
10 | or not taken in response to the appeal, including a written explanation of the reasons for the |
11 | decision. If the appeal is denied, the customer may submit a complaint to the attorney general. |
12 | (7) A customer may designate another person to serve as the customer's authorized agent |
13 | and act on such customer's behalf, to opt out of the processing of such customer's personal data. A |
14 | controller shall comply with an opt-out request received from an authorized agent if the controller |
15 | is able to verify the identity of the customer and the authorized agent's authority to act on the |
16 | customer’s behalf. |
17 | 6-48.1-7. Controller and processor responsibilities. |
18 | (a) This section shall apply to for-profit entities that conduct business in the state or for- |
19 | profit entities that produce products or services that are targeted to residents of the state and that |
20 | during the preceding calendar year did any of the following: |
21 | (1) Controlled or processed the personal data of not less than thirty-five thousand (35,000) |
22 | customers, excluding personal data controlled or processed solely for the purpose of completing a |
23 | payment transaction. |
24 | (2) Controlled or processed the personal data of not less than ten thousand (10,000) |
25 | customers and derived more than twenty percent (20%) of their gross revenue from the sale of |
26 | personal data. |
27 | (b) A processor shall adhere to the instructions of a controller and shall assist the controller |
28 | in meeting the controller's obligations of this chapter. |
29 | (c) A contract between a controller and a processor shall govern the processor's data |
30 | processing procedures with respect to processing performed on behalf of the controller. The |
31 | contract shall be binding and clearly set forth instructions for processing data, the nature and |
32 | purpose of processing, the type of data subject to processing, the duration of processing and the |
33 | rights and obligations of both parties. The contract shall also require that the processor: |
34 | (1) Ensure that each person processing personal data is subject to a duty of confidentiality |
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1 | with respect to the data; |
2 | (2) At the controller's direction, delete or return all personal data to the controller as |
3 | requested at the end of the provision of services, unless retention of the personal data is required |
4 | by law; |
5 | (3) Upon the reasonable request of the controller, make available to the controller all |
6 | information in its possession necessary to demonstrate the processor's compliance with the |
7 | obligations of this chapter; |
8 | (4) After providing the controller an opportunity to object, engage any subcontractor |
9 | pursuant to a written contract that requires the subcontractor to meet the obligations of the processor |
10 | with respect to the personal data; and |
11 | (5) Allow, and cooperate with, reasonable assessments by the controller or the controller's |
12 | designated assessor, or the processor may arrange for a qualified and independent assessor to assess |
13 | the processor's policies and technical and organizational measures in support of the obligations of |
14 | this chapter, using an appropriate and accepted control standard of framework and assessment |
15 | procedure for such assessments. The processor shall provide a report of such assessment to the |
16 | controller upon request. |
17 | (d) Nothing in this section shall be construed to relieve a controller or processor from the |
18 | liabilities imposed on the controller or processor by virtue of such controller's or processor's role |
19 | in the processing relationship. If a processor begins, alone or jointly with others, determining the |
20 | purposes and means of the processing of personal data, the processor is a controller with respect to |
21 | such processing and may be subject to an enforcement action under § 6-48.1-8. |
22 | (e) A controller shall conduct and document a data protection assessment for each of the |
23 | controller's processing activities that presents a heightened risk of harm to a customer. For the |
24 | purposes of this section, processing that presents a heightened risk of harm to a customer includes: |
25 | (1) The processing of personal data for the purposes of targeted advertising; |
26 | (2) The sale of personal data; |
27 | (3) The processing of personal data for the purposes of profiling, where such profiling |
28 | presents a reasonably foreseeable risk of unfair or deceptive treatment of, or unlawful disparate |
29 | impact on, customers, financial, physical or reputational injury to customers, a physical or other |
30 | intrusion upon the solitude or seclusion, or the private affairs or concerns, of customers, where such |
31 | intrusion would be offensive to a reasonable person, or other substantial injury to customers; and |
32 | (4) The processing of sensitive data. |
33 | (f) The attorney general may require a controller to disclose any data protection assessment |
34 | that is relevant to an investigation conducted by the attorney general, and the controller shall make |
| LC005228/SUB A - Page 12 of 18 |
1 | the data protection assessment available. The attorney general may evaluate the data protection |
2 | assessment for compliance with responsibilities of this chapter. Data protection assessments shall |
3 | be confidential and shall be exempt from disclosure pursuant to chapter 2 of title 38 ("access to |
4 | public records"). To the extent any information contained in a data protection assessment disclosed |
5 | to the attorney general includes information subject to attorney-client privilege or work product |
6 | protection, such disclosure shall not constitute a waiver of such privilege or protection. |
7 | (g) A single data protection assessment may address a comparable set of processing |
8 | operations that include similar activities. |
9 | (h) If a controller conducts a data protection assessment for the purpose of complying with |
10 | another applicable law or regulation, the data protection assessment shall be deemed to satisfy the |
11 | requirements established in this section if such data protection assessment is reasonably similar in |
12 | scope and effect to the data protection assessment that would otherwise be conducted pursuant to |
13 | this section. |
14 | (i) Data protection assessment requirements shall apply to processing activities created or |
15 | generated after January 1, 2026 and are not retroactive. |
16 | (j) Any controller in possession of de-identified data shall: |
17 | (1) Take reasonable measures to ensure that the data cannot be associated with an |
18 | individual; |
19 | (2) Publicly commit to maintaining and using de-identified data without attempting to re- |
20 | identify the data; and |
21 | (3) Contractually obligate any recipients of the de-identified data to comply with all |
22 | provisions of this chapter. |
23 | (k) Nothing in this chapter shall be construed to: |
24 | (1) Require a controller or processor to re-identify de-identified data or pseudonymous |
25 | data; or |
26 | (2) Maintain data in identifiable form, or collect, obtain, retain or access any data or |
27 | technology, in order to be capable of associating an authenticated customer request with personal |
28 | data. |
29 | (l) Nothing in this chapter shall be construed to require a controller or processor to comply |
30 | with an authenticated customer rights request if the controller: |
31 | (1) Is not reasonably capable of associating the request with the personal data or it would |
32 | be unreasonably burdensome for the controller to associate the request with the personal data; |
33 | (2) Does not use the personal data to recognize or respond to the specific customer who is |
34 | the subject of the personal data, or associate the personal data with the other personal data about |
| LC005228/SUB A - Page 13 of 18 |
1 | the same specific customer; and |
2 | (3) Does not sell the personal data to any third party or otherwise voluntarily disclose the |
3 | personal data to any third party other than a processor, except as otherwise permitted in this section. |
4 | (m) The rights afforded under this section, and inclusive of § 6-48.1-5(f) shall not apply to |
5 | pseudonymous data in cases where the controller is able to demonstrate that any information |
6 | necessary to identify the customer is kept separately and is subject to effective technical and |
7 | organizational controls that prevent the controller from accessing such information. |
8 | (n) A controller that discloses pseudonymous data or de-identified data shall exercise |
9 | reasonable oversight to monitor compliance with any contractual commitments to which the |
10 | pseudonymous data or de-identified data is subject and shall take appropriate steps to address any |
11 | breaches of those contractual commitments. |
12 | (o) This chapter shall not be construed to restrict a controller's or processor's ability to: |
13 | (1) Comply with federal, state or municipal ordinances or regulations; |
14 | (2) Comply with a civil, criminal or regulatory inquiry, investigation, subpoena or |
15 | summons by federal, state, municipal or other governmental authorities; |
16 | (3) Cooperate with law enforcement agencies concerning conduct or activity that the |
17 | controller or processor reasonably and in good faith believes may violate federal, state or municipal |
18 | ordinances or regulations; |
19 | (4) Investigate, establish, exercise, prepare for or defend legal claims; |
20 | (5) Provide a product or service specifically requested by a customer; |
21 | (6) Perform under a contract to which a customer is a party, including fulfilling the terms |
22 | of a written warranty; |
23 | (7) Take steps at the request of a customer prior to entering into a contract; |
24 | (8) Take immediate steps to protect an interest that is essential for the life or physical safety |
25 | of the customer or another individual, and where the processing cannot be manifestly based on |
26 | another legal basis; |
27 | (9) Prevent, detect, protect against or respond to security incidents, identity theft, fraud, |
28 | harassment, malicious or deceptive activities or any illegal activity, preserve the integrity or |
29 | security of systems or investigate, report or prosecute those responsible for any such action; |
30 | (10) Engage in public or peer-reviewed scientific or statistical research in the public interest |
31 | that adheres to all other applicable ethics and privacy laws and is approved, monitored and governed |
32 | by an institutional review board that determines, or similar independent oversight entities that |
33 | determine, whether the deletion of the information is likely to provide substantial benefits that do |
34 | not exclusively accrue to the controller, the expected benefits of the research outweigh the privacy |
| LC005228/SUB A - Page 14 of 18 |
1 | risks, and whether the controller has implemented reasonable safeguards to mitigate privacy risks |
2 | associated with research, including any risks associated with re-identification; |
3 | (11) Assist another controller, processor or third party with any of the obligations of this |
4 | chapter; or |
5 | (12) Process personal data for reasons of public interest in the area of public health, |
6 | community health or population health, but solely to the extent that such processing is: |
7 | (i) Subject to suitable and specific measures to safeguard the rights of the customer whose |
8 | personal data is being processed, and |
9 | (ii) Under the responsibility of a professional subject to confidentiality obligations under |
10 | federal, state or local law. |
11 | (p) The obligations imposed on controllers or processors shall not restrict a controller's or |
12 | processor's ability to collect, use or retain data for internal use to: |
13 | (1) Conduct internal research to develop, improve or repair products, services or |
14 | technology; |
15 | (2) Effectuate a product recall; |
16 | (3) Identify and repair technical errors that impair existing or intended functionality; or |
17 | (4) Perform internal operations that are reasonably aligned with the expectations of the |
18 | customer or reasonably anticipated based on the customer's existing relationship with the controller, |
19 | or are otherwise compatible with processing data in furtherance of the provision of a product or |
20 | service specifically requested by a customer or the performance of a contract to which the customer |
21 | is a party. |
22 | (q) A controller or processor that discloses personal data to a processor or third-party |
23 | controller shall not be deemed to have violated this chapter if the processor or third-party controller |
24 | that receives and processes such personal data violates said sections; provided at the time the |
25 | disclosing controller or processor disclosed such personal data, the disclosing controller or |
26 | processor did not have actual knowledge that the receiving processor or third-party controller would |
27 | violate said sections. A third-party controller or processor receiving personal data from a controller |
28 | or processor in compliance with this chapter is likewise not in violation of said sections for the |
29 | transgressions of the controller or processor from which such third-party controller or processor |
30 | receives such personal data. |
31 | (r) Nothing in this chapter shall be construed to: |
32 | (1) Impose any obligation on a controller or processor that adversely affects the rights or |
33 | freedoms of any person, including, but not limited to, the rights of any person to freedom of speech |
34 | or freedom of the press guaranteed in the First Amendment to the United States Constitution; or |
| LC005228/SUB A - Page 15 of 18 |
1 | (2) Apply to any person's processing of personal data in the course of such person's purely |
2 | personal or household activities. |
3 | (s) Personal data processed by a controller pursuant to this section may be processed to the |
4 | extent that such processing is reasonably necessary and proportionate to the purposes in this |
5 | section; and adequate, relevant and limited to what is necessary in relation to the specific purposes |
6 | listed in this section. Personal data collected, used or retained shall, where applicable, consider the |
7 | nature and purpose or purposes of such collection, use or retention. Such data shall be subject to |
8 | reasonable administrative, technical and physical measures to protect the confidentiality, integrity |
9 | and accessibility of the personal data and to reduce reasonably foreseeable risks of harm to |
10 | customers relating to such collection, use or retention of personal data. |
11 | (t) If a controller processes personal data pursuant to an exemption in this section, the |
12 | controller bears the burden of demonstrating that such processing qualifies for the exemption. |
13 | (u) Processing personal data for the purposes expressly identified in this section shall not |
14 | solely make a legal entity a controller with respect to such processing. |
15 | (v) If a customer opts out of data collection, the covered entity is not required to provide a |
16 | service that requires this data collection. |
17 | 6-48.1-8. Violations. |
18 | (a) A violation of this chapter constitutes a violation of the general regulatory provisions |
19 | of commercial law in title 6 and shall constitute a deceptive trade practice in violation of chapter |
20 | 13.1 of title 6; provided, further, that in the event that any individual or entity intentionally discloses |
21 | personal data: |
22 | (1) To a shell company or any entity that has been formed or established solely, or in part, |
23 | for the purposes of circumventing the intent of this chapter; or |
24 | (2) In violation of any provision of this chapter, that individual or entity shall pay a fine of |
25 | not less than one hundred dollars ($100) and no more than five hundred dollars ($500) for each |
26 | such disclosure. |
27 | (b) The attorney general shall have sole enforcement authority of the provisions of this |
28 | chapter and may enforce a violation of this chapter pursuant to: |
29 | (1) The provisions of this section; or |
30 | (2) General regulatory provisions of commercial law in title 6, or both. |
31 | (c) Nothing in this section shall be construed to authorize any private right of action to |
32 | enforce any provision of this chapter, any regulation hereunder, or any other provisions of law. |
33 | 6-48.1-9. Waivers - Severability. |
34 | Any waiver of the provisions of this chapter shall be void and unenforceable. If any |
| LC005228/SUB A - Page 16 of 18 |
1 | provision of this chapter or its application to any person or circumstance is held invalid by a court |
2 | of competent jurisdiction, the invalidity shall not affect other provisions of applications of the |
3 | chapter that can be given effect without the invalid provision or application, and to this end the |
4 | provisions of the chapter are severable. |
5 | 6-48.1-10. Construction. |
6 | (a) Nothing in this chapter shall be deemed to apply in any manner to a financial institution, |
7 | an affiliate of a financial institution, or data subject to Title V of the federal Gramm-Leach-Bliley |
8 | Act, 15 U.S.C. § 6801 et seq. and its implementing regulations, or to information or data subject to |
9 | the Health Insurance Portability and Accountability Act of 1996 (HIPAA) Pub. L. 104-191. |
10 | (b) Nothing in this chapter shall be construed to apply to a contractor, subcontractor, or |
11 | agent of a state agency or local unit of government when working for that state agency or local unit |
12 | of government. |
13 | (c) Nothing in this chapter shall be construed to apply to any entity recognized as a tax |
14 | exempt organization under the Internal Revenue Code. |
15 | (d) Nothing in this chapter shall be construed to mandate and/or require the retention or |
16 | disclosure of any specific individual's personally identifiable information. |
17 | (e) Nothing in this chapter shall prohibit or restrict the dissemination or sale of product |
18 | sales summaries or statistical information or aggregate customer data which may include |
19 | personally, identifiable information. |
20 | (f) Nothing in this chapter shall be construed to apply to any personally identifiable |
21 | information or any other information collected, used, processed, or disclosed by or for a customer |
22 | reporting agency as defined by 15 U.S.C. § 1681a(f). Provided, further, nothing in this chapter shall |
23 | be construed to require any entity to collect, store or sell personally identifiable information, and |
24 | furthermore, nothing in this chapter shall be construed to require a controller to provide a good or |
25 | service that requires the personal data of a customer that the controller does not collect or maintain. |
26 | This chapter is intended to apply only to covered entities that choose to collect, store, and sell or |
27 | otherwise transfer or disclose personally identifiable information. The obligations imposed on |
28 | controllers or processors under this chapter shall not apply where compliance by the controller or |
29 | processor with this chapter would violate an evidentiary privilege under the law of this state. |
30 | Nothing in this chapter shall be construed to prevent a controller or processor from providing |
31 | personal data concerning a customer to a person covered by an evidentiary privilege under the laws |
32 | of this state as part of a privileged communication. |
| LC005228/SUB A - Page 17 of 18 |
1 | SECTION 3. This act shall take effect on January 1, 2026. |
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LC005228/SUB A | |
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| LC005228/SUB A - Page 18 of 18 |
EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- | |
RHODE ISLAND DATA TRANSPARENCY AND PRIVACY PROTECTION ACT | |
*** | |
1 | This act would create the Rhode Island Data Transparency and Privacy Protect Act for data |
2 | privacy protections for the personal data of the citizens of Rhode Island, requiring any person or |
3 | entity that processes personal data to identify all categories of information the controller collects, |
4 | when the controller may disclose such information, how a customer may exercise their customer |
5 | rights, the purpose for processing the personal data, categories of personal data share with a third |
6 | party, and means to contact the controller. Entities that control or process personal data of not less |
7 | than 35,000 customers or at least 10,000 customers and derive more than twenty percent (20%) of |
8 | gross revenue from the sale of personal data are subject to additional disclosure requirements and |
9 | must allow customers the right to opt out of the collection of personally identifiable information. |
10 | Any violation of this act would constitute a violation of the general regulatory provisions of |
11 | commercial law and constitute a deceptive trade practice. A fine would be imposed for each |
12 | violation of not less than one hundred dollars ($100) and no more than five hundred dollars ($500). |
13 | This act would take effect on January 1, 2026. |
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LC005228/SUB A | |
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| LC005228/SUB A - Page 19 of 18 |