SB0340: CIVIL LAW-TECH

SB0340 Engrossed LRB104 06459 JRC 16495 b 1 AN ACT concerning civil law. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 10. Short title. This Act may be cited as the 5 Illinois Consumer Data Privacy Act. 6 Section 11. Definitions. As used in this Act: 7 "Affiliate" means a legal entity that controls, is 8 controlled by, or is under common control with another legal 9 entity. As used in this definition, "control" or "controlled" 10 means: ownership of or the power to vote more than 50% of the 11 outstanding shares of any class of voting security of a 12 company; control in any manner over the election of a majority 13 of the directors or of individuals exercising similar 14 functions; or the power to exercise a controlling influence 15 over the management of a company. 16 "Authenticate" means to use reasonable means to determine 17 that a request to exercise any of the rights under subsection 18 (b) of Section 14 is being made by or rightfully on behalf of 19 the consumer who is entitled to exercise the rights with 20 respect to the personal data at issue. 21 "Biometric identifier" has the same meaning given to that 22 term in the Biometric Information Privacy Act. 23 "Biometric information" has the same meaning given to that SB0340 Engrossed - 2 - LRB104 06459 JRC 16495 b 1 term in the Biometric Information Privacy Act. 2 "Child" has the meaning given in United States Code, Title 3 15, Section 6501. 4 "Collect" means to buy, rent, obtain, lease, access, 5 receive, or otherwise acquire personal data in any manner. 6 "Consent" means any freely given, specific, informed, and 7 unambiguous indication of the consumer's wishes by which the 8 consumer signifies agreement to the processing of personal 9 data relating to the consumer. Acceptance of general or broad 10 terms of use or similar document that contains descriptions of 11 personal data processing along with other, unrelated 12 information does not constitute consent. Hovering over, 13 muting, pausing, or closing a given piece of content does not 14 constitute consent. A consent is not valid when the consumer's 15 indication has been obtained by a dark pattern. A consumer may 16 revoke consent previously given consistent with this Act. 17 "Consumer" means a natural person who is an Illinois 18 resident acting only in an individual or household context. 19 Consumer does not include a natural person acting in a 20 commercial or employment context. 21 "Controller" means the natural or legal person who, alone 22 or jointly with others, determines the purposes and means of 23 the processing of personal data. 24 "Decisions that produce legal or similarly significant 25 effects concerning the consumer" means decisions made by the 26 controller that result in the provision or denial by the SB0340 Engrossed - 3 - LRB104 06459 JRC 16495 b 1 controller of financial or lending services, housing, 2 insurance, education enrollment or opportunity, criminal 3 justice, employment opportunities, health care services, or 4 access to essential goods or services. 5 "Dark pattern" means a user interface designed or 6 manipulated with the substantial effect of subverting or 7 impairing user autonomy, decision making, or choice. 8 "Deidentified data" means data that cannot reasonably be 9 used to infer information about or otherwise be linked to an 10 identified or identifiable natural person or a device linked 11 to an identified or identifiable natural person, provided that 12 the controller that possesses the data: 13 (1) takes reasonable measures to ensure that the data 14 cannot be associated with a natural person; 15 (2) publicly commits to process the data only in a 16 deidentified fashion and not attempt to reidentify the 17 data; and 18 (3) contractually obligates any recipients of the 19 information to comply with all provisions of this 20 definition. 21 "Delete" means to remove or destroy information so that it 22 is not maintained in human- or machine-readable form and 23 cannot be retrieved or used in the ordinary course of 24 business. 25 "Genetic information" has the meaning ascribed to the term 26 under the Health Insurance Portability and Accountability Act SB0340 Engrossed - 4 - LRB104 06459 JRC 16495 b 1 of 1996 as specified in 45 CFR 160.103. 2 "Identified or identifiable natural person" means a person 3 who can be readily identified, directly or indirectly. 4 "Known child" means a person under circumstances in which 5 a controller has actual knowledge of, or willfully disregards, 6 that the person is under 13 years of age. 7 "Personal data" means any information that is linked or 8 reasonably linkable to an identified or identifiable natural 9 person. Personal data does not include deidentified data, 10 pseudonymous data, or publicly available information. As used 11 in this definition, "publicly available information" means 12 information that (1) is lawfully made available from federal, 13 state, or local government records; or (2) a controller has a 14 reasonable basis to believe has lawfully been made available 15 to the general public. 16 "Process" or "processing" means any operation or set of 17 operations that are performed on personal data or on sets of 18 personal data, whether or not by automated means, including, 19 but not limited to, the collection, use, storage, disclosure, 20 analysis, deletion, monetization, sharing, retention, 21 organizing, structuring, licensing, or modification of 22 personal data. 23 "Processor" means a natural or legal person who processes 24 personal data on behalf of a controller. 25 "Profiling" means any form of automated processing of 26 personal data to evaluate, analyze, or predict personal SB0340 Engrossed - 5 - LRB104 06459 JRC 16495 b 1 aspects related to an identified or identifiable natural 2 person's economic situation, health, personal preferences, 3 interests, reliability, behavior, location, or movements. 4 Profiling does not include automated processing used solely 5 for independent measurement. 6 "Pseudonymous data" means personal data that cannot be 7 attributed to a specific natural person without the use of 8 additional information, provided that the additional 9 information is kept separately and is subject to appropriate 10 technical and organizational measures to ensure that the 11 personal data are not attributed to an identified or 12 identifiable natural person. 13 "Sale", "sell", or "sold" means the exchange of personal 14 data for monetary or other valuable consideration by the 15 controller, processor, or an affiliate of the controller or 16 processor to a third party. "Sale" does not include the 17 following: 18 (1) the disclosure of personal data to a processor who 19 processes the personal data on behalf of the controller if 20 limited to the purposes of processing; 21 (2) the disclosure of personal data to a third party 22 for purposes of providing a product or service requested 23 by the consumer; 24 (3) the disclosure or transfer of personal data to an 25 affiliate of the controller; 26 (4) the disclosure of information that the consumer SB0340 Engrossed - 6 - LRB104 06459 JRC 16495 b 1 intentionally made available to the general public via a 2 channel of mass media and did not restrict to a specific 3 audience; 4 (5) the disclosure or transfer of personal data to a 5 third party as an asset that is part of a completed or 6 proposed merger, acquisition, bankruptcy, or other 7 transaction in which the third party assumes control of 8 all or part of the controller's assets; or 9 (6) the exchange of personal data between the producer 10 of a good or service and authorized agents of the producer 11 who sell and service the goods and services to enable the 12 cooperative provisioning of goods and services by both the 13 producer and the producer's agents. 14 "Sensitive data" is a form of personal data. "Sensitive 15 data" means: 16 (1) personal data revealing racial or ethnic origin, 17 religious beliefs, mental or physical health condition or 18 diagnosis, sexual orientation, or citizenship or 19 immigration status; 20 (2) the processing of biometric identifiers or 21 information or genetic information for the purpose of 22 uniquely identifying an individual; 23 (3) the personal data of a known child; 24 (4) specific geolocation data; 25 (5) information that reveals the status of 26 identifiable natural person as a victim of a crime; or SB0340 Engrossed - 7 - LRB104 06459 JRC 16495 b 1 (6) a government-issued identifier, including a social 2 security number, passport number, or a driver's license 3 number, that is not required by law to be displayed in 4 public. 5 "Specific geolocation data" means information derived from 6 technology, including, but not limited to, global positioning 7 system level latitude and longitude coordinates or other 8 mechanisms that can precisely and accurately identify the 9 specific location of a consumer or a device linked with a 10 consumer within a radius of 1,750 feet. Specific geolocation 11 data does not include the content of communications, the 12 contents of databases containing street address information 13 that are accessible to the public as authorized by law, or any 14 data generated by or connected to advanced utility metering 15 infrastructure systems or other equipment for use by a public 16 utility. 17 "Targeted advertising" means displaying advertisements to 18 a consumer or to a device linked to a consumer in which the 19 advertisement is selected based on personal data obtained or 20 inferred from the consumer's activities over time and across 21 nonaffiliated websites or online applications to predict the 22 consumer's preferences or interests. Targeted advertising does 23 not include: 24 (1) advertising based on activities within a 25 controller's own websites or online applications; 26 (2) advertising based on the context of a consumer's SB0340 Engrossed - 8 - LRB104 06459 JRC 16495 b 1 current search query or visit to a website or online 2 application; 3 (3) advertising to a consumer in response to the 4 consumer's request for information or feedback; or 5 (4) processing personal data solely for measuring or 6 reporting content and advertising performance, reach, or 7 frequency, including independent measurement. 8 (z) "Third party" means a natural or legal person, public 9 authority, agency, or body other than the consumer, 10 controller, processor, or an affiliate of the processor or the 11 controller. 12 (aa) "Trade secret" has the same meaning given to the term 13 in the Illinois Trade Secrets Act. 14 Section 12. Scope; exclusions. 15 (a)(1) Scope. This Act applies to legal entities that 16 conduct business in Illinois or produce products or services 17 that are targeted to Illinois residents, and that satisfy one 18 or more of the following thresholds: 19 (A) during a calendar year, collects or processes 20 personal data of 100,000 consumers or more, excluding 21 personal data controlled or processed solely for the 22 purpose of completing a payment transaction; or 23 (B) derives over 25% of gross revenue from the sale of 24 personal data and processes or collects personal data of 25 25,000 consumers or more. SB0340 Engrossed - 9 - LRB104 06459 JRC 16495 b 1 (2) A controller or processor shall comply with the 2 Student Online Personal Protection Act, except that if the 3 provisions of that Act conflict with this Act, the Student 4 Online Personal Protection Act prevails. 5 (3) All legal entities shall comply with the Biometric 6 Information Privacy Act and the Genetic Information Privacy 7 Act. 8 (b) Exclusions. The provisions of this Act do not apply to 9 the following entities, activities, or types of information: 10 (1) the State, a political subdivision of the State, 11 and units of local government; 12 (2) a federally recognized Indian tribe; 13 (3) information that meets the definition of: 14 (A) protected health information, as defined by 15 and for purposes of the Health Insurance Portability 16 and Accountability Act of 1996, Public Law 104-191, 17 and related regulations; 18 (B) health records, that includes, but is not 19 limited to, any information, whether oral or recorded 20 in any form or medium, that relates to the past, 21 present, or future physical or mental health or 22 condition of a patient; the provision of health care 23 to a patient; or the past, present, or future payment 24 for the provision of health care to a patient; 25 (C) patient identifying information for purposes 26 of Code of Federal Regulations, Title 42, Part 2, SB0340 Engrossed - 10 - LRB104 06459 JRC 16495 b 1 established pursuant to the United States Code, Title 2 42, Section 290dd-2; 3 (D) identifiable private information for purposes 4 of the federal policy for the protection of human 5 subjects, the Code of Federal Regulations, Title 45, 6 Part 46; identifiable private information that is 7 otherwise information collected as part of human 8 subjects research under the good clinical practice 9 guidelines issued by the International Council for 10 Harmonisation; the protection of human subjects under 11 the Code of Federal Regulations, Title 21, Parts 50 12 and 56; or personal data used or shared in research 13 conducted in accordance with one or more of the 14 requirements set forth in this paragraph; 15 (E) information and documents created for purposes 16 of the federal Health Care Quality Improvement Act of 17 1986, Public Law 99-660, and related regulations; or 18 (F) patient safety work product for purposes of 19 Code of Federal Regulations, Title 42, Part 3, 20 established under the United States Code, Title 42, 21 Sections 299b-21 to 299b-26; 22 (4) information that is derived from any of the health 23 care-related information listed in clause (3), but that 24 has been deidentified in accordance with the requirements 25 for deidentification set forth in the Code of Federal 26 Regulations, Title 45, Part 164; SB0340 Engrossed - 11 - LRB104 06459 JRC 16495 b 1 (5) information originating from, and intermingled to 2 be indistinguishable with, any of the health care-related 3 information listed in clause (3) that is maintained by: 4 (A) a covered entity or business associate, as 5 defined by the Health Insurance Portability and 6 Accountability Act of 1996, Public Law 104-191, and 7 related regulations to the extent the entity is acting 8 as a covered entity or business associate under the 9 Privacy and Security rules issued by the United States 10 Department of Health and Human Services, Parts 160 and 11 164 of Title 45 of the Code of Federal Regulations; 12 (B) a health care provider, to include, but not be 13 limited to, any public or private facility that 14 provides, on an inpatient or outpatient basis, 15 preventive, diagnostic, therapeutic, convalescent, 16 rehabilitation, mental health, or intellectual 17 disability services, including general or special 18 hospitals, skilled nursing homes, extended care 19 facilities, intermediate care facilities and mental 20 health centers; or 21 (C) a program or a qualified service organization, 22 as defined by Code of Federal Regulations, Title 42, 23 Part 2, established pursuant to United States Code, 24 Title 42, Section 290dd-2; 25 (6) information that is: 26 (A) maintained by an entity that meets the SB0340 Engrossed - 12 - LRB104 06459 JRC 16495 b 1 definition of health care provider under the Code of 2 Federal Regulations, Title 45, Section 160.103, to the 3 extent that the entity maintains the information in 4 the manner required of covered entities with respect 5 to protected health information for purposes of the 6 Health Insurance Portability and Accountability Act of 7 1996, Public Law 104-191, and related regulations; 8 (B) included in a limited data set, as described 9 under the Code of Federal Regulations, Title 45, Part 10 164.514(e), to the extent that the information is 11 used, disclosed, and maintained in the manner 12 specified by that part; 13 (C) maintained by, or maintained to comply with 14 the rules or orders of, a self-regulatory organization 15 as defined by the United States Code, Title 15, 16 Section 78c(a)(26) or of a registered futures 17 association as designated under the United States 18 Code, Title 7, Section 21; 19 (D) originated from, or intermingled with, 20 information described in clause (9) and that a 21 residential mortgage originator or residential 22 mortgage servicer regulated under the Residential 23 Mortgage License Act of 1987 collects, processes, 24 uses, or maintains in the same manner as required 25 under the laws and regulations specified in clause 26 (9); or SB0340 Engrossed - 13 - LRB104 06459 JRC 16495 b 1 (E) originated from, or intermingled with, 2 information described in clause (9) and that a nonbank 3 financial institution collects, processes, uses, or 4 maintains in the same manner as required under the 5 laws and regulations specified in clause (9); 6 (7) information used only for public health activities 7 and purposes, as described under the Code of Federal 8 Regulations, Title 45, Part 164.512; 9 (8) an activity involving the collection, maintenance, 10 disclosure, sale, communication, or use of any personal 11 data bearing on a consumer's credit worthiness, credit 12 standing, credit capacity, character, general reputation, 13 personal characteristics, or mode of living by a consumer 14 reporting agency, as defined in the United States Code, 15 Title 15, Section 1681a(f), by a furnisher of information, 16 as set forth in the United States Code, Title 15, Section 17 1681s-2, who provides information for use in a consumer 18 report, as defined in the United States Code, Title 15, 19 Section 1681a(d), and by a user of a consumer report, as 20 set forth in the United States Code, Title 15, Section 21 1681b, except that information is only excluded under this 22 paragraph to the extent that the activity involving the 23 collection, maintenance, disclosure, sale, communication, 24 or use of the information by the agency, furnisher, or 25 user is subject to regulation under the federal Fair 26 Credit Reporting Act, United States Code, Title 15, SB0340 Engrossed - 14 - LRB104 06459 JRC 16495 b 1 Sections 1681 to 1681x, and the information is not 2 collected, maintained, used, communicated, disclosed, or 3 sold except as authorized by the Fair Credit Reporting 4 Act; 5 (9) financial institutions, their affiliates, and 6 personal data subject to the federal Gramm-Leach-Bliley 7 Act, Public Law 106-102, and implementing regulations; 8 (10) personal data collected, processed, sold, or 9 disclosed pursuant to the federal Driver's Privacy 10 Protection Act of 1994, United States Code, Title 18, 11 Sections 2721 to 2725, if the collection, processing, 12 sale, or disclosure is in compliance with that law; 13 (11) personal data regulated by the federal Family 14 Educational Rights and Privacy Act, United States Code, 15 Title 20, Section 1232g, and implementing regulations; 16 (12) personal data collected, processed, sold, or 17 disclosed pursuant to the federal Farm Credit Act of 1971, 18 as amended, United States Code, Title 12, Sections 2001 to 19 2279cc, and implementing regulations, Code of Federal 20 Regulations, Title 12, Part 600, if the collection, 21 processing, sale, or disclosure is in compliance with that 22 law; 23 (13) data collected or maintained: 24 (A) in the course of an individual acting as a job 25 applicant to or an employee, owner, director, officer, 26 medical staff member, or contractor of a business if SB0340 Engrossed - 15 - LRB104 06459 JRC 16495 b 1 the data is collected and used solely within the 2 context of the role; 3 (B) as the emergency contact information of an 4 individual under item (A) if used solely for emergency 5 contact purposes; or 6 (C) that is necessary for the business to retain 7 to administer benefits for another individual relating 8 to the individual under item (1) if used solely for the 9 purposes of administering those benefits; 10 (14) personal data collected, processed, sold, or 11 disclosed under the Illinois Insurance Code; 12 (15) data collected, processed, sold, or disclosed as 13 part of a payment-only credit, check, or cash transaction 14 where no data about consumers, as defined in Section 11, 15 are retained; 16 (16) a State or federally chartered bank or credit 17 union, or an affiliate or subsidiary that is principally 18 engaged in financial activities, as described in the 19 United States Code, Title 12, Section 1843(k); 20 (17) information that originates from, or is 21 intermingled so as to be indistinguishable from, 22 information described in clause (8) and that a person 23 collects, processes, uses, or maintains in the same manner 24 as is required under the laws and regulations specified in 25 clause (8); 26 (18) an insurance company and an insurance producer SB0340 Engrossed - 16 - LRB104 06459 JRC 16495 b 1 that are regulated by the State under the Illinois 2 Insurance Code, a third-party administrator of 3 self-insurance, or an affiliate or subsidiary of any 4 entity identified in this clause that is principally 5 engaged in financial activities, as described in the 6 United States Code, Title 12, Section 1843(k), except that 7 this clause does not apply to a person that, alone or in 8 combination with another person, establishes and maintains 9 a self-insurance program that does not otherwise engage in 10 the business of entering into policies of insurance; 11 (19) a small business, as defined by the United States 12 Small Business Administration under the Code of Federal 13 Regulations, Title 13, Part 121, except that a small 14 business identified in this clause is subject to Section 15 17; 16 (20) a nonprofit organization that is established to 17 detect and prevent fraudulent acts in connection with 18 insurance; and 19 (21) an air carrier subject to the federal Airline 20 Deregulation Act, Public Law 95-504, only to the extent 21 that an air carrier collects personal data related to 22 prices, routes, or services and only to the extent that 23 the provisions of the Airline Deregulation Act preempt the 24 requirements of this Act. 25 Controllers that are in compliance with the Children's 26 Online Privacy Protection Act, United States Code, Title 15, SB0340 Engrossed - 17 - LRB104 06459 JRC 16495 b 1 Sections 6501 to 6506, and implementing regulations, are 2 deemed compliant with any obligation to obtain parental 3 consent under this Act. 4 Section 13. Responsibility according to role. 5 (a) Controllers and processors are responsible for meeting 6 the respective obligations established under this Act. 7 (b) Processors are responsible under this Act for adhering 8 to the instructions of the controller and assisting the 9 controller to meet the controller's obligations under this 10 Act. Assistance under this subsection shall include the 11 following: 12 (1) taking into account the nature of the processing, 13 the processor shall assist the controller by appropriate 14 technical and organizational measures, insofar as this is 15 possible, for the fulfillment of the controller's 16 obligation to respond to consumer requests to exercise 17 their rights under Section 14; and 18 (2) taking into account the nature of processing and 19 the information available to the processor, the processor 20 shall assist the controller in meeting the controller's 21 obligations in relation to the security of processing the 22 personal data and in relation to the notification of a 23 breach of the security of the system under the Illinois 24 Personal Information Protection Act and provide 25 information to the controller necessary to enable the SB0340 Engrossed - 18 - LRB104 06459 JRC 16495 b 1 controller to conduct and document any data privacy and 2 protection assessments required by Section 18. 3 (c) A contract between a controller and a processor shall 4 govern the processor's data processing procedures with respect 5 to processing performed on behalf of the controller. The 6 contract shall be binding on both parties and clearly set 7 forth instructions for processing data, the nature and purpose 8 of processing, the type of data subject to processing, the 9 duration of processing, and the rights and obligations of both 10 parties. The contract shall also require that the processor: 11 (1) ensure that each person processing the personal 12 data is subject to a duty of confidentiality with respect 13 to the data; 14 (2) engage a subcontractor only under a written 15 contract in accordance with this subsection (c) that 16 requires the subcontractor to meet the obligations of the 17 processor with respect to the personal data; 18 (3) at the choice of the controller, delete or return 19 all personal data to the controller as requested at the 20 end of the provision of services, unless retention of the 21 personal data is required by law; 22 (4) upon a reasonable request from the controller, 23 make available to the controller all information necessary 24 to demonstrate compliance with the obligations in this 25 Act; and 26 (5) allow for, and contribute to, reasonable SB0340 Engrossed - 19 - LRB104 06459 JRC 16495 b 1 assessments and inspections by the controller or the 2 controller's designated assessor. Alternatively, the 3 processor may arrange for a qualified and independent 4 assessor to conduct, at least annually and at the 5 processor's expense, an assessment of the processor's 6 policies and technical and organizational measures in 7 support of the obligations under this Act. The assessor 8 must use an appropriate and accepted control standard or 9 framework and assessment procedure for assessments as 10 applicable and provide a report of an assessment to the 11 controller upon request. 12 (d) Taking into account the context of processing, the 13 controller and the processor shall implement appropriate 14 technical and organizational measures to ensure a level of 15 security appropriate to the risk and establish a clear 16 allocation of the responsibilities between the controller and 17 the processor to implement the technical and organizational 18 measures. 19 (e) In no event shall any contract relieve a controller or 20 a processor from the liabilities imposed on a controller or 21 processor by virtue of the controller's or processor's roles 22 in the processing relationship under this Act. Notwithstanding 23 any other provision of this Act, if a processor processes data 24 under a binding contract that sets forth the processing 25 instructions and limits the actions the processor may take 26 with respect to the data it processes on behalf of the SB0340 Engrossed - 20 - LRB104 06459 JRC 16495 b 1 controller, the processor is not liable for the controller's 2 actions that led to a violation of this Act. 3 (f) Determining whether a person is acting as a controller 4 or processor with respect to a specific processing of data is a 5 fact-based determination that depends upon the context in 6 which personal data are to be processed. A person that is not 7 limited in the person's processing of personal data pursuant 8 to a controller's instructions, or that fails to adhere to a 9 controller's instructions, is a controller and not a processor 10 with respect to a specific processing of data. A processor 11 that continues to adhere to a controller's instructions with 12 respect to a specific processing of personal data remains a 13 processor. If a processor begins, alone or jointly with 14 others, determining the purposes and means of the processing 15 of personal data, the processor is a controller with respect 16 to the processing. 17 Section 14. Consumer personal data rights. 18 (a)(1) Consumer rights provided. Except as provided in 19 this Act, a controller must comply with a request to exercise 20 the consumer rights provided in this subsection (a). 21 (2) A consumer has the right to confirm whether or not a 22 controller is processing personal data concerning the consumer 23 and access the personal data the controller is processing. 24 (3) A consumer has the right to correct inaccurate 25 personal data concerning the consumer taking into account the SB0340 Engrossed - 21 - LRB104 06459 JRC 16495 b 1 nature of the personal data and the purposes of the processing 2 of the personal data. 3 (4) A consumer has the right to delete personal data 4 concerning the consumer. 5 (5) A consumer has the right to obtain personal data 6 concerning the consumer, which the consumer previously 7 provided to the controller, in a portable and, to the extent 8 technically feasible, readily usable format that allows the 9 consumer to transmit the data to another controller without 10 hindrance, where the processing is carried out by automated 11 means. 12 (6) A consumer has the right to opt out of the processing 13 of personal data concerning the consumer for purposes of: (i) 14 targeted advertising, (ii) the sale of personal data, or (iii) 15 profiling in furtherance of automated decisions that produce 16 legal effects concerning a consumer or similarly significant 17 effects concerning a consumer. 18 (7) If a consumer's personal data is profiled in 19 furtherance of decisions that produce legal effects concerning 20 a consumer or similarly significant effects concerning a 21 consumer, the consumer has the right to question the result of 22 the profiling, only if the profiling produces legal or 23 similarly significant effects concerning the consumer. The 24 consumer has the right to review the consumer's personal data 25 used in the profiling. If the decision is determined to have 26 been based upon inaccurate personal data taking into account SB0340 Engrossed - 22 - LRB104 06459 JRC 16495 b 1 the nature of the personal data and the purposes of the 2 processing of the personal data, the consumer has the right to 3 have the data corrected and the profiling decision reevaluated 4 based upon the corrected data. 5 (8) A consumer has a right to obtain general descriptions 6 of categories of third parties to which the controller has 7 disclosed the consumer's personal data, unless such a list of 8 specific third parties is readily available to the controller. 9 (b)(1) Exercising consumer rights. A consumer may exercise 10 the rights set forth in subsection (a) by submitting a 11 request, at any time, to a controller specifying which rights 12 the consumer wishes to exercise. 13 (2) In the case of processing personal data concerning a 14 known child, the parent or legal guardian of the known child 15 may exercise the rights under this Act on the child's behalf. 16 (3) In the case of processing personal data concerning a 17 consumer legally subject to guardianship under the Probate Act 18 of 1975, the guardian of the consumer may exercise the rights 19 under this Act on the consumer's behalf. 20 (4) A consumer may designate another person as the 21 consumer's authorized agent to exercise the consumer's right 22 to opt out of the processing of the consumer's personal data 23 for purposes of targeted advertising and sale under subsection 24 (c)(1) on the consumer's behalf. A consumer may designate an 25 authorized agent by way of, among other things, a technology, 26 including, but not limited to, an Internet link or a browser SB0340 Engrossed - 23 - LRB104 06459 JRC 16495 b 1 setting, browser extension, or global device setting, 2 indicating the consumer's intent to opt out of the processing. 3 A controller shall comply with an opt-out request received 4 from an authorized agent if the controller is able to verify, 5 with commercially reasonable effort, the identity of the 6 consumer and the authorized agent's authority to act on the 7 consumer's behalf. 8 (c)(1) Universal opt-out mechanisms. A controller must 9 allow a consumer to opt out of any processing of the consumer's 10 personal data for the purposes of targeted advertising, 11 profiling in furtherance of automated decisions that produce 12 legal effects concerning the consumer or any sale of the 13 consumer's personal data through an opt-out preference signal 14 sent, with the consumer's consent, by a platform, technology, 15 or mechanism to the controller indicating the consumer's 16 intent to opt out of the processing, profiling, or sale. The 17 platform, technology, or mechanism must: 18 (A) not unfairly disadvantage another controller; 19 (B) not make use of a default setting but require the 20 consumer to make an affirmative, freely given, and 21 unambiguous choice to opt out of the processing of the 22 consumer's personal data; 23 (C) be consumer-friendly and easy to use by the 24 average consumer; 25 (D) be as consistent as possible with any other 26 similar platform, technology, or mechanism required by any SB0340 Engrossed - 24 - LRB104 06459 JRC 16495 b 1 federal or State law or regulation; and 2 (E) enable the controller to accurately determine 3 whether the consumer is an Illinois resident and whether 4 the consumer has made a legitimate request to opt out of 5 any sale of the consumer's personal data profiling in 6 furtherance of automated decisions that produce legal 7 effects concerning the consumer, or targeted advertising. 8 For purposes of this paragraph, the use of an Internet 9 protocol address to estimate the consumer's location is 10 sufficient to determine the consumer's residence. 11 (2) If a consumer's opt-out request is exercised through 12 the platform, technology, or mechanism required under 13 subsection (c)(1), and the request conflicts with the 14 consumer's existing controller-specific privacy setting or 15 voluntary participation in a controller's bona fide loyalty, 16 rewards, premium features, discounts, or club card program, 17 the controller must comply with the consumer's opt-out 18 preference signal but may also notify the consumer of the 19 conflict and provide the consumer a choice to confirm the 20 controller-specific privacy setting or participation in the 21 controller's program. 22 (3) A controller that recognizes opt-out preference 23 signals that have been approved by other state laws or 24 regulations is in compliance with this subdivision. 25 (d)(1) Controller response to consumer requests. Except as 26 provided in this Act, a controller must comply with a request SB0340 Engrossed - 25 - LRB104 06459 JRC 16495 b 1 to exercise the rights pursuant to subsection (a). 2 (2) A controller must provide one or more secure and 3 reliable means for consumers to submit a request to exercise 4 the consumer's rights under this Section. The means made 5 available must take into account the ways in which consumers 6 interact with the controller and the need for secure and 7 reliable communication of the requests. 8 (3) A controller may not require a consumer to create a new 9 account to exercise a right, but a controller may require a 10 consumer to use an existing account to exercise the consumer's 11 rights under this Section. 12 (4) A controller must comply with a request to exercise 13 the rights under this Section as soon as feasibly possible, 14 but no later than 45 days after the receipt of the request, 15 unless the controller extends the time. 16 (5) A controller must inform a consumer of any action 17 taken on a request under subsection (b) without undue delay 18 and in any event within 45 days after the receipt of the 19 request. That period may be extended once by 45 additional 20 days where reasonably necessary taking into account the 21 complexity and number of the requests. The controller must 22 inform the consumer of any extension within the original 23 45-day window, together with the reasons for the delay. 24 (6) If a controller does not take action on a consumer's 25 request, the controller must inform the consumer without undue 26 delay and at the latest within 45 days after the receipt of the SB0340 Engrossed - 26 - LRB104 06459 JRC 16495 b 1 request of the reasons for not taking action and instructions 2 for how to appeal the decision with the controller as 3 described in subsection (e). 4 (7) Information provided under this Section must be 5 provided by the controller free of charge up to twice annually 6 to the consumer. If requests from a consumer are manifestly 7 unfounded or excessive, in particular because of the 8 repetitive character of the requests, the controller may 9 either charge a reasonable fee to cover the administrative 10 costs of complying with the request or refuse to act on the 11 request. The controller bears the burden of demonstrating the 12 manifestly unfounded or excessive character of the request. 13 (8) A controller is not required to comply with a request 14 to exercise any of the rights under subsection (a), paragraphs 15 (2) to (5) and (8), if the controller is unable to authenticate 16 the request using commercially reasonable efforts. In such 17 cases, the controller may request the provision of additional 18 information reasonably necessary to authenticate the request. 19 A controller is not required to authenticate an opt-out 20 request, but a controller may deny an opt-out request if the 21 controller has a good faith, reasonable, and documented belief 22 that the request is fraudulent. If a controller denies an 23 opt-out request because the controller believes a request is 24 fraudulent, the controller must notify the person who made the 25 request that the request was denied because of the 26 controller's belief that the request was fraudulent and state SB0340 Engrossed - 27 - LRB104 06459 JRC 16495 b 1 the controller's basis for that belief. 2 (9) In response to a consumer request under subsection 3 (b), a controller must not disclose the following information 4 about a consumer but must instead inform the consumer with 5 sufficient particularity that the controller has collected 6 that type of information: 7 (A) Social Security number; 8 (B) driver's license number or other government-issued 9 identification number; 10 (C) financial account number; 11 (D) health insurance account number or medical 12 identification number; 13 (E) account password, security questions, or answers; 14 or 15 (F) biometric identifiers or information. 16 (10) In response to a consumer request under subsection 17 (b), a controller is not required to reveal any trade secret. 18 (11) A controller that has obtained personal data about a 19 consumer from a source other than the consumer may comply with 20 a consumer's request to delete the consumer's personal data 21 pursuant to subsection (a), paragraph (4), by either: 22 (A) retaining a record of the deletion request, 23 retaining the minimum data necessary for the purpose of 24 ensuring the consumer's personal data remains deleted from 25 the business's records and not using the retained data for 26 any other purpose under the provisions of this Act; or SB0340 Engrossed - 28 - LRB104 06459 JRC 16495 b 1 (B) opting the consumer out of the processing of 2 personal data for any purpose except for the purposes 3 exempted pursuant to the provisions of this Act. 4 (e)(1) Appeal process required. A controller must 5 establish an internal process in which a consumer may appeal a 6 refusal to take action on a request to exercise any of the 7 rights under subsection (a) within a reasonable period of time 8 after the consumer's receipt of the notice sent by the 9 controller under subsection (d), paragraph (6). 10 (2) The appeal process must be conspicuously available. 11 The process must include the ease of use provisions in 12 subsection (c)(1) applicable to submitting requests. 13 (3) Within 45 days after the receipt of an appeal, a 14 controller must inform the consumer of any action taken or not 15 taken in response to the appeal along with a written 16 explanation of the reasons in support thereof. That period may 17 be extended by 60 additional days if reasonably necessary, 18 taking into account the complexity and number of the requests 19 serving as the basis for the appeal. The controller must 20 inform the consumer of any extension within 45 days after the 21 receipt of the appeal together with the reasons for the delay. 22 (4) When informing a consumer of any action taken or not 23 taken in response to an appeal pursuant to paragraph (3), the 24 controller must provide a written explanation of the reasons 25 for the controller's decision and clearly and prominently 26 provide the consumer with information about how to file a SB0340 Engrossed - 29 - LRB104 06459 JRC 16495 b 1 complaint with the Attorney General. The controller must 2 maintain records of all appeals and the controller's responses 3 for at least 24 months and shall, upon written request by the 4 Attorney General as part of an investigation, compile and 5 provide a copy of the records to the Attorney General. 6 Section 15. Processing deidentified data or pseudonymous 7 data. 8 (a) This Act does not require a controller or processor to 9 do any of the following solely for purposes of complying with 10 this Act: 11 (1) reidentify deidentified data; 12 (2) maintain data in identifiable form, or collect, 13 obtain, retain, or access any data or technology, to be 14 capable of associating an authenticated consumer request 15 with personal data; or 16 (3) comply with an authenticated consumer request to 17 access, correct, delete, or port personal data under 18 Section 14, subsection (a), if all of the following are 19 true: 20 (A) the controller is not reasonably capable of 21 associating the request with the personal data, or it 22 would be unreasonably burdensome for the controller to 23 associate the request with the personal data; 24 (B) the controller does not use the personal data 25 to recognize or respond to the specific consumer who SB0340 Engrossed - 30 - LRB104 06459 JRC 16495 b 1 is the subject of the personal data or associate the 2 personal data with other personal data about the same 3 specific consumer; and 4 (C) the controller does not sell the personal data 5 to any third party or otherwise voluntarily disclose 6 the personal data to any third party other than a 7 processor, except as otherwise permitted in this 8 Section. 9 (b) The rights contained in paragraphs (2) to (5) and (8) 10 of subsection (a) of Section 14 do not apply to pseudonymous 11 data in cases in which the controller is able to demonstrate 12 any information necessary to identify the consumer is kept 13 separately and is subject to effective technical and 14 organizational controls that prevent the controller from 15 accessing the information. 16 (c) A controller that transfers, sells, or otherwise 17 discloses pseudonymous data or deidentified data must exercise 18 reasonable oversight to monitor compliance with any 19 contractual commitments to which the pseudonymous data or 20 deidentified data are subject, and must take appropriate steps 21 to address any breaches of contractual commitments. 22 (d) A processor or third party must not attempt to 23 identify the subjects of deidentified or pseudonymous data 24 without the express authority of the controller that caused 25 the data to be deidentified or pseudonymized. 26 (e) A controller, processor, or third party must not SB0340 Engrossed - 31 - LRB104 06459 JRC 16495 b 1 attempt to identify the subjects of data that has been 2 collected with only pseudonymous identifiers. 3 Section 16. Responsibilities of controllers. 4 (a)(1) Transparency obligations. Controllers must provide 5 consumers with a reasonably accessible, clear, and meaningful 6 privacy notice, at or before collection, that includes: 7 (A) the categories of personal data processed by the 8 controller; 9 (B) the purposes for which the categories of personal 10 data are processed; 11 (C) an explanation of the rights contained in Section 12 14 and how and where consumers may exercise those rights, 13 including how a consumer may appeal a controller's action 14 with regard to the consumer's request; 15 (D) the categories of personal data that the 16 controller sells to or shares with third parties, if any; 17 (E) the categories of third parties, if any, with whom 18 the controller sells or shares personal data; 19 (F) the controller's contact information, including an 20 active email address or other online mechanism that the 21 consumer may use to contact the controller; 22 (G) a description of the controller's retention 23 policies for personal data; and 24 (H) the date the privacy notice was last updated. 25 (2) If a controller sells personal data to third parties, SB0340 Engrossed - 32 - LRB104 06459 JRC 16495 b 1 processes personal data for targeted advertising, or engages 2 in profiling in furtherance of decisions that produce legal 3 effects concerning a consumer or similarly significant effects 4 concerning a consumer, the controller must disclose the 5 processing in the privacy notice and provide access to a clear 6 and conspicuous method outside the privacy notice for a 7 consumer to opt out of the sale, processing, or profiling in 8 furtherance of decisions that produce legal effects concerning 9 a consumer or similarly significant effects concerning a 10 consumer. This method may include but is not limited to an 11 Internet hyperlink clearly labeled "Your Opt-Out Rights" or 12 "Your Privacy Rights" that directly effectuates the opt-out 13 request or takes consumers to a web page where the consumer can 14 make the opt-out request. 15 (3) The privacy notice must be made available to the 16 public in each language in which the controller provides a 17 product or service that is subject to the privacy notice or 18 carries out activities related to the product or service. 19 (4) The controller must provide the privacy notice in a 20 manner that is reasonably accessible to and usable by 21 individuals with disabilities. 22 (5) Whenever a controller makes a material change to the 23 controller's privacy notice or practices, the controller must 24 notify consumers affected by the material change with respect 25 to any prospectively collected personal data and provide a 26 reasonable opportunity for consumers to withdraw consent to SB0340 Engrossed - 33 - LRB104 06459 JRC 16495 b 1 any further materially different collection, processing, or 2 transfer of previously collected personal data under the 3 changed policy. The controller shall take all reasonable 4 electronic measures to provide notification regarding material 5 changes to affected consumers, taking into account available 6 technology and the nature of the relationship. 7 (6) A controller is not required to provide a separate 8 Illinois-specific privacy notice or section of a privacy 9 notice if the controller's general privacy notice contains all 10 the information required by this Section. 11 (7) The privacy notice must be posted online through a 12 conspicuous hyperlink using the word "privacy" on the 13 controller's website home page or on a mobile application's 14 app store page or download page. A controller that maintains 15 an application on a mobile or other device shall also include a 16 hyperlink to the privacy notice in the application's settings 17 menu or in a similarly conspicuous and accessible location. A 18 controller that does not operate a website shall make the 19 privacy notice conspicuously available to consumers through a 20 medium regularly used by the controller to interact with 21 consumers, including, but not limited to, mail. 22 (b)(1) Use of data. A controller shall: 23 (A) limit the collection of personal data to what is 24 adequate, relevant, and reasonably necessary in relation 25 to the purposes for which the data are processed, which 26 must be disclosed to the consumer; SB0340 Engrossed - 34 - LRB104 06459 JRC 16495 b 1 (B) not collect, process, or share sensitive data 2 concerning a consumer except when such collection, 3 processing, or transfer is strictly necessary to provide 4 or maintain a specific product or service requested by the 5 consumer to whom the sensitive data pertains. For purposes 6 of this Act, the collection, processing, and sharing of 7 biometric identifiers and information must be done in 8 accordance with the requirements of the Biometric 9 Information Privacy Act. For purposes of this Act, the 10 collection, processing, and sharing of genetic information 11 must be done in accordance with the Genetic Information 12 Privacy Act. For purposes of this Act, the collection, 13 processing, and sharing of students' covered information 14 must be done in accordance with the Student Online 15 Personal Protection Act; and 16 (C) not sell sensitive data. 17 (2) Except as provided in this Act, a controller may not 18 process personal data for purposes that are not reasonably 19 necessary to, or compatible with, the purposes for which the 20 personal data are processed, as disclosed to the consumer, 21 unless the controller obtains the consumer's consent. 22 (3) A controller shall establish, implement, and maintain 23 reasonable administrative, technical, and physical data 24 security practices to protect the confidentiality, integrity, 25 and accessibility of personal data, including the maintenance 26 of an inventory of the data that must be managed to exercise SB0340 Engrossed - 35 - LRB104 06459 JRC 16495 b 1 these responsibilities. The data security practices shall be 2 appropriate to the volume and nature of the personal data at 3 issue. 4 (4) Except as otherwise provided in this Act, a controller 5 may not process sensitive data concerning a consumer without 6 obtaining the consumer's consent, or, in the case of the 7 processing of personal data concerning a known child, without 8 obtaining consent from the child's parent or lawful guardian, 9 in accordance with the requirement of the Children's Online 10 Privacy Protection Act, United States Code, Title 15, Sections 11 6501 to 6506, and its implementing regulations