2023 -- H 6236

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LC002702

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS --

RHODE ISLAND DATA TRANSPARENCY AND PRIVACY PROTECTION ACT

     Introduced By: Representatives Shanley, Edwards, Solomon, Baginski, and
Marszalkowski

     Date Introduced: March 30, 2023

     Referred To: House Innovation, Internet, & Technology

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 6 of the General Laws entitled "COMMERCIAL LAW — GENERAL

REGULATORY PROVISIONS" is hereby amended by adding thereto the following chapter:

CHAPTER 48.1

RHODE ISLAND DATA TRANSPARENCY AND PRIVACY PROTECTION ACT

     6-48.1-1. Short title.

     This chapter shall be known and may be cited as the "Rhode Island Data Transparency and

Privacy Protection Act."

     6-48.1-2. Legislative findings.

     The general assembly hereby finds and declares that:

     (1) The right to privacy is a personal and fundamental right protected by the United States

Constitution. As such, all individuals have a right to privacy in information pertaining to them. This

state recognizes the importance of providing customers with transparency about how their

personally identifiable information, especially information relating to their children, is shared by

businesses. This transparency is crucial for Rhode Island citizens to protect themselves and their

families from cyber-crimes and identity thieves.

     (2) Furthermore, for free market forces to have a role in shaping the privacy practices and

for "opt-in" and "opt-out" remedies to be effective, customers must be more than vaguely informed

that a business might share personally identifiable information with third parties (as that term is

hereinafter defined). Customers must be better informed about what kinds of personally identifiable

information is shared with other businesses. With these specifics, customers can knowledgeably

choose to opt in, opt out, or choose among businesses that disclose (as that term is hereinafter

defined) personally identifiable information to third parties on the basis of how protective the

business is of customers' privacy.

     (3) Businesses are now collecting personally identifiable information and disclosing it in

ways not contemplated or properly covered by the current law. Some websites are installing

tracking tools that record when customers visit webpages, and sending personally identifiable

information, such as age, gender, race, income, health concerns, religion, and recent purchases to

third-party marketers and data brokers. Third-party data broker companies are buying and

disclosing personally identifiable information obtained from mobile phones, financial institutions,

social media sites, and other online and brick and mortar companies. Some mobile applications are

sharing personally identifiable information, such as location information, unique phone

identification numbers, age, gender, and other personal details with third-party companies.

     (4) As such, customers need to know the ways that their personally identifiable information

is being collected by companies and then shared or sold to third parties in order to properly protect

their privacy, personal safety, and financial security.

     6-48.1-3. Definitions.

     As used in this chapter:

     (1) "Affiliate" means any entity that, directly or indirectly, controls, is controlled by, or is

under common control with, the entity that has disclosed personally identifiable information to it.

For this purpose, “control” or “controlled” means ownership of, or the power to vote, more than

fifty percent (50%) of the outstanding shares of any class of voting security of a company, control

in any manner over the election of a majority of the directors or of individuals exercising similar

functions, or the power to exercise controlling influence over the management of a company.

     (2) "Authenticate" means to use reasonable means to determine that request to exercise any

of the rights afforded under this chapter is being made by, or on behalf of, the customer who is

entitled to exercise such customer rights with respect to the personal data at issue.

     (3) "Biometric data" means data generated by automatic measurements of an individual's

biological characteristics, such as a fingerprint, a voiceprint, eye retinas, irises or other unique

biological patterns or characteristics that are used to identify a specific individual. "Biometric data"

does not include a digital or physical photograph, an audio or video recording, or any data generated

from a digital or physical photograph, or an audio or video recording, unless such data is generated

to identify a specific individual.

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     (4) “Business associate” has the same meaning as provided in HIPAA.

     (5) “Child” has the same meaning as provided in COPPA.

     (6) "Consent" means a clear affirmative act signifying a customer freely given, specific,

informed and unambiguous agreement to allow the processing of personal data relating to the

customer. "Consent" may include a written statement, including by electronic means, or any other

unambiguous affirmative action. "Consent" does not include acceptance of a general or broad term

of use or similar document that contains descriptions of personal data processing along with other,

unrelated information, hovering over, muting, pausing or closing a given piece of content, or

agreement obtained through the use of dark patterns.

     (7) "Controller" means an individual who, or legal entity that, alone or jointly with others

determines the purpose and means of processing personal data.

     (8) "COPPA" means the Children's Online Privacy Protection Act of 1998, 15 USC 6501

et seq., and the regulations, rules, guidance and exemptions adopted, pursuant to said act, as said

act and such regulations, rules, guidance and exemptions may be amended from time to time.

     (9) "Covered entity" has the same meaning as provided in HIPAA.

     (10) "Customer" means an individual residing in this state who provides, either knowingly

or unknowingly, personally identifiable information to any entity, with or without an exchange of

consideration, in the course of purchasing, viewing, accessing, renting, leasing, or otherwise using

real or personal property, or any interest therein, or obtaining a product or service, including

advertising or any other content. "Customer" does not include an individual acting in a commercial

or employment context or as an employee, owner, director, officer or contractor of a company,

partnership, sole proprietorship, nonprofit or government agency whose communications or

transactions with the controller occur solely within the context of that individual's role with the

company, partnership, sole proprietorship, nonprofit or government agency.

     (11) “Dark pattern" means a user interface designed or manipulated with the substantial

effect of subverting or impairing user autonomy, decision-making or choice, and includes, but is

not limited to, any practice the Federal Trade Commission refers to as a "dark pattern".

     (12) "Decisions that produce legal or similarly significant effects concerning the customer"

means decisions made by the controller that result in the provision or denial by the controller of

financial or lending services, housing, insurance, education enrollment or opportunity, criminal

justice, employment opportunities, health care services or access to essential goods or services.

     (13) "De-identified data" means data that cannot reasonably be used to infer information

about, or otherwise be linked to, an identified or identifiable individual, or a device linked to such

individual, if the controller that possesses such data takes reasonable measures to ensure that such

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data cannot be associated with an individual, publicly commits to process such data only in a de-

identified fashion and not attempt to re-identify such data, and contractually obligates any

recipients of such data.

     (14) "Disclose" means to sell, release, transfer, share, disseminate, make available, or

otherwise communicate orally, in writing, or by electronic means or any other means to any

individual or third party in exchange for anything of value. "Disclose" does not include the

following:

     (i) Disclosure to an affiliate; provided that, the affiliate does not disclose the personally

identifiable information to any third party;

     (ii) Disclosure of personally identifiable information by any entity to a third party under a

written contract authorizing the third party to utilize the personally identifiable information to

perform services on behalf of such entity, including maintaining or servicing accounts, providing

customer service, processing or fulfilling orders and transactions, verifying customer information,

processing payments, providing financing, or similar services, but only if:

     (A) The contract prohibits the third party from using the personally identifiable information

for any reason other than performing the specified service or services on behalf of such entity and

from disclosing any such personally identifiable information to additional third parties; and

     (B) The entity effectively enforces these prohibitions;

     (iii) Disclosure of personally identifiable information by a business to a third party based

on a good-faith belief that disclosure is required to comply with applicable law, regulation, legal

process, or court order; or

     (iv) Disclosure of personally identifiable information by any entity to a third party that is

reasonably necessary to address fraud, security, or technical issues; to protect the disclosing entity's

rights or property; or to protect customers or the public from illegal activities as required or

permitted by law.

     (15) "HIPAA" means the Health Insurance Portability and Accountability Act of 1996, 42

USC 1320d et seq., as amended from time to time.

     (16) "Identified or identifiable individual" means an individual who can be readily

identified, directly or indirectly.

     (17) "Institution of higher education" means any individual who, or school, board,

association, limited liability company or corporation that, is licensed or accredited to offer one or

more programs of higher learning leading to one or more degrees.

     (18) "Nonprofit organization" means any organization that is exempt from taxation under

Section 501(c)(3), 501(c)(4), 501(c)(6) or 501(c)(12) of the Internal Revenue Code of 1986, or any

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subsequent corresponding internal revenue code of the United States, as amended from time to

time.

     (19) "Operator" means any person or entity that owns a website located on the Internet or

an online service that collects and maintains personally identifiable information from a customer

residing in this state who uses or visits the website or online service, if the website or online service

is operated for commercial purposes. It does not include any third party that operates, hosts, or

manages, but does not own, a website or online service on the owner's behalf or by processing

information on behalf of the owner. "Operator" does not include businesses having ten (10) or fewer

employees, or any third party that operates, hosts, or manages, but does not own, a website or online

service on the owner’s behalf or by processing information on behalf of the owner.

     (20) "Personally identifiable information" or "personal information" means any

information that is linked or reasonably linkable to an identified or identifiable individual.

"Personal data" does not include de-identified data or publicly available information, means an

individual's first name or first initial and last name in combination with any one or more of the

following data elements, when the name and the data elements are not either encrypted or utilizing

a protocol that provides a higher degree of security or are in hard copy, paper format:

     (i) Social security number;

     (ii) Driver's license number, passport number, Rhode Island identification card number, or

tribal identification number;

     (iii) Account number, credit or debit card number, in combination with any required

security code, access code, password, or personal identification number, that would permit access

to an individual's financial account;

     (iv) Medical or health insurance information;

     (v) Email address with any required security code, access code, or password that would

permit access to an individual's personal, medical, insurance, or financial account; or

     (vi) Biometric data.

     (21) "Precise geolocation data" means information derived from technology, including, but

not limited to, global positioning system level latitude and longitude coordinates or other

mechanisms, that directly identifies the specific location of an individual with precision and

accuracy within a radius of one thousand seven hundred fifty feet (1,750'). "Precise geolocation

data" does not include the content of communications or any data generated by or connected to

advanced utility metering infrastructure systems or equipment for use by a utility.

     (22) "Process" or "processing" means any operation or set of operations performed,

whether by manual or automated means, on personal data or on sets of personal data, such as the

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collection, use, storage, disclosure, analysis, deletion or modification of personal data. "Processor"

means an individual who, or legal entity that, processes personal data on behalf of a controller.

     (23) "Profiling" means any form of automated processing performed on personal data to

evaluate, analyze or predict personal aspects related to an identified or identifiable individual's

economic situation, health, personal preferences, interests, reliability, behavior, location or

movements.

     (24) "Protected health information" has the same meaning as provided in HIPAA.

     (25) "Pseudonymous data" means personal data that cannot be attributed to a specific

individual without the use of additional information; provided such additional information is kept

separately and is subject to appropriate technical and organizational measures to ensure that the

personal data is not attributed to an identified or identifiable individual.

     (26) "Publicly available information" means information that is lawfully made available

through federal, state or municipal government records or widely distributed media, and a controller

has a reasonable basis to believe a customer has lawfully made available to the general public.

     (27) "Sale of personal data" means the exchange of personal data for monetary or other

valuable consideration by the controller to a third party. "Sale of personal data" does not include

the disclosure of personal data to a processor that processes the personal data on behalf of the

controller, the disclosure of personal data to a third party for purposes of providing a product or

service requested by the customer, the disclosure or transfer of personal data to an affiliate of the

controller, the disclosure of personal data where the customer directs the controller to disclose the

personal data or intentionally us the controller to interact with a third party, the disclosure of

personal data that the customer:

     (i) Intentionally made available to the general public via a channel of mass media; and

     (ii) Did not restrict to a specific audience, or the disclosure or transfer of personal data to

a third party as an asset that is part of a merger, acquisition, bankruptcy or other transaction, or a

proposed merger, acquisition, bankruptcy or other transaction, in which the third party assumes

control of all or part of the controller's assets.

     (28) "Sensitive data" means personal data that includes data revealing racial or ethnic

origin, religious beliefs, mental or physical health condition or diagnosis, sex life, sexual orientation

or citizenship or immigration status, the processing of genetic or biometric data for the purpose of

uniquely identifying an individual, personal data collected from a known child, or precise

geolocation data.

     (29) "Targeted advertising" means displaying advertisements to a customer where the

advertisement is selected based on personal data obtained or inferred from that customer's activities

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over time and across nonaffiliated Internet websites or online applications to predict such

customer's preferences or interests. "Targeted advertising" does not include advertisements based

on activities within a controller's own Internet websites or online applications, advertisements

based on the context of a customer's current search query, visit to an Internet website or online

application, advertisements directed to a customer in response to the customer's request for

information or feedback, or processing personal data solely to measure or report advertising

frequency, performance or reach.

     (30) "Third party" means an individual or legal entity, such as a public authority, agency

or body, other than the customer, controller or processor or an affiliate of the processor or the

controller. "Third party" also means any entity that is a separate legal entity from the entity that has

disclosed the personally identifiable information; provided, however, that an affiliate of the entity

that has disclosed the personally identifiable information shall not be considered a third party.

     (31) "Trade secret" mean information that has either actual or potential independent

economic value by virtue of not being generally known, has value to others who cannot legitimately

obtain the information, and subject to reasonable efforts to maintain its secrecy.

     6-48.1-4. Information sharing practices.

     (a) An operator of a commercial website or online service that collects, stores and sells

categories of personally identifiable information through the Internet about individual customers

residing in this state who use or visit its commercial website or online service shall, in its customer

agreement or incorporated addendum or in another conspicuous location on its website or online

service platform where similar notices are customarily posted:

     (1) Identify all categories of personally identifiable information that the operator collects

through the website or online service about individual customers who use or visit its commercial

website or online service; and

     (2) Identify all third-party persons or entities with whom the operator may disclose that

personally identifiable information.

     (b) Nothing in this chapter shall be construed to authorize the collection, storage or

disclosure of information or data that is otherwise prohibited, restricted or regulated by state or

federal law.

     (c) An operator shall limit the collection of personal data to what is adequate, relevant and

reasonably necessary in relation to the purposes for which data is processed, as disclosed to the

customer. The operator shall not process personal data for purposes that are not reasonably

necessary to, nor compatible with, the disclosed purposes for which such personal data is processed,

as disclosed to the customer, unless the controller obtains the customer’s consent.

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     (d) Collection of data for bona fide loyalty, rewards, premium features, discount or club

card programs that customers voluntarily participate and consent to using identifiable information

shall be exempt.

     (e) This chapter does not apply to any body, authority, board, bureau, commission, district

or agency of this state or any political subdivision of this state; nonprofit organization; institution

of higher education; national securities association that is registered under 15 USC 78o-3 of the

Securities Exchange Act of 1934, as amended from time to time; financial institution or data subject

to Title V of the Gramm-Leach-Bliley Act, 15 USC 6801 et seq.; or covered entity or business

associate, as defined in 45 CFR 160.103.

     (f) The following information and data are exempt from the provisions of this chapter:

     (1) Protected health information under HIPAA;

     (2) Patient-identifying information for purposes of 42 USC 290dd-2;

     (3) Identifiable private information for purposes of the federal policy for the protection of

human subjects under 45 CFR 46;

     (4) Identifiable private information that is otherwise information collected as part of human

subjects research pursuant to the good clinical practice guidelines issued by the International

Council for Harmonization of Technical Requirements for Pharmaceuticals for Human Use;

     (5) The protection of human subjects under 21 CFR Parts 6, 50 and 56, or personal data

used or shared in research, as defined in 45 CFR 164.501 or other research conducted in accordance

with applicable law;

     (6) Information and documents created for purposes of the Health Care Quality

Improvement Act of 1986, 42 USC 11101 et seq.;

     (7) Patient safety work product for purposes of section 19a-127o of the general statutes and

the Patient Safety and Quality Improvement Act, 42 USC 299b-21 et seq., as amended from time

to time;

     (8) Information derived from any of the health care related information listed in this

subsection that is de-identified in accordance with the requirements for de-identification pursuant

to HIPAA;

     (9) Information originating from and intermingled to be indistinguishable with, or

information treated in the same manner as, information exempt under this subsection that is

maintained by a covered entity or business associate, program or qualified service organization, as

specified in 42 USC 290dd-2, as amended from time to time;

     (10) Information used for public health activities and purposes as authorized by HIPAA,

community health activities and population health activities;

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     (11) The collection, maintenance, disclosure, sale, communication or use of any personal

information bearing on a customer's credit worthiness, credit standing, credit capacity, character,

general reputation, personal characteristics or mode of living by a customer reporting agency,

furnisher or user that provides information for use in a customer report, and by a user of a customer

report, but only to the extent that such activity is regulated by and authorized under the Fair Credit

Reporting Act, 15 USC 1681 et seq., as amended from time to time;

     (12) Personal data collected, processed, sold or disclosed in compliance with the Driver's

Privacy Protection Act of 1994, 18 USC 2721 et seq., as amended from time to time;

     (13) Personal data regulated by the Family Educational Rights and Privacy Act, 20 USC

1232g et seq., as amended from time to time;

     (14) Personal data collected, processed, sold or disclosed in compliance with the Farm

Credit Act, 12 USC 2001 et seq., as amended from time to time;

     (15) Data processed or maintained in the course of an individual applying to, employed by

or acting as an agent or independent contractor of a controller, processor or third party, to the extent

that the data is collected and used within the context of that role, as the emergency contact

information of an individual or that is necessary to retain to administer benefits for another

individual relating to the individual who is the subject of the information under this subsection and

used for the purposes of administering such benefits; and

     (16) Personal data collected, processed, sold or disclosed in relation to price, route or

service, as such terms are used in the Airline Deregulation Act, 49 USC 40101 et seq., as amended

from time to time, by an air carrier subject to said act, to the extent sections 1 to 11, inclusive, of

this chapter are preempted by the Airline Deregulation Act, 49 USC 41713, as amended from time

to time.

     6-48.1-5. Processing of information.

     (a) The operator shall establish, implement, and maintain reasonable administrative,

technical and physical data security practices to protect the confidentiality, integrity and

accessibility of personal data.

     (b) The operator shall not process sensitive data concerning a customer without obtaining

customer consent and shall not process sensitive data of a child unless consent is obtained and the

information is processed in accordance with COPPA.

     (c) The operator shall not process personal data in violation of the laws of this state and

federal laws that prohibit unlawful discrimination against customers.

     (d) The operator shall provide the customer with a mechanism to grant and revoke consent.

Upon revocation of the consent the operator shall not process the data as soon as practicable, but

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no later than ten (10) days after the receipt of the request.

     (e) The operator shall not process the personal data of a customer for targeted advertising,

or sell the customer’s personal data without the customer’s consent. No operator shall process or

sell the personal data of a customer that is a minor.

     6-48.1-6. Customer rights.

     (a) No operator shall discriminate against a customer for exercising their customer rights.

     (b) No operator shall deny goods or services, charge different prices or rates for goods or

services or provide a different level of quality of goods or services to the customer if the customer

does not consent to use of their data.

     (c) Operators may provide different prices and levels for goods and services if it is for a

bona fide loyalty, rewards, premium features, discount or club card programs that customers

voluntarily participate.

     (d) Customers exercising their customers rights under this section shall not be denied goods

or services or provided a different level of quality of goods or services.

     (e) A customer shall have the right to:

     (1) Confirm whether or not a controller is processing the customer's personal data and

access such personal data, unless such confirmation or access would require the controller to reveal

a trade secret;

     (2) Correct inaccuracies in the customer's personal data and delete personal data provided

by, or obtained about, the customer;

     (3) Obtain a copy of the customer's personal data processed by the controller, in a portable

and, to the extent technically feasible, readily usable format that allows the customer to transmit

the data to another controller; and

     (4) Opt out of the processing of the personal data for purposes of targeted advertising, the

sale of personal data, or profiling in furtherance of solely automated decisions that produce legal

or similarly significant effects concerning the customer.

     (f) A customer may exercise rights under this section by a secure and reliable means

established by the controller and described to the customer in the controller's privacy notice. A

customer may designate an authorized agent to exercise the rights of such customer to opt out of

the processing of such customer's personal data. In the case of processing personal data of a known

child, the parent or legal guardian may exercise such customer rights on the child's behalf. In the

case of processing personal data concerning a customer subject to a guardianship, conservatorship

or other protective arrangement, the guardian or the conservator of the customer may exercise such

rights on the customer's behalf.

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     6-48.1-7. Exercising customer rights.

     A controller shall comply with a request by a customer to exercise the customer rights

authorized as follows:

     (1) A controller shall respond to the customer without undue delay, but not later than forty-

five (45) days after receipt of the request. The controller may extend the response period by forty-

five (45) additional days when reasonably necessary, considering the complexity and number of

the customer's requests; provided the controller informs the customer of any such extension within

the initial forty-five (45)-day response period and of the reason for the extension.

     (2) If a controller declines to act regarding the customer's request, the controller shall

inform the customer without undue delay, but not later than forty-five (45) days after receipt of the

request, of the justification for declining to act and instructions for how to appeal the decision.

     (3) Information provided in response to a customer request shall be provided by a

controller, free of charge, once per customer during any twelve (12) month period. If requests from

a customer are manifestly unfounded, excessive or repetitive, the controller may charge the

customer a reasonable fee to cover the administrative costs of complying with the request or decline

to act on the request. The controller bears the burden of demonstrating the manifestly unfounded,

excessive or repetitive nature of the request.

     (4) If a controller is unable to authenticate a request to exercise any of the rights afforded,

the controller shall not be required to comply with a request to initiate an action pursuant to this

section and shall provide notice to the customer that the controller is unable to authenticate the

request to exercise such right or rights until such customer provides additional information

reasonably necessary to authenticate such customer and such customer's request to exercise such

right or rights. A controller shall not be required to authenticate an opt-out request, but may deny

an opt-out request if the controller has, reasonable and documented belief that such request is

fraudulent. If a controller denies an opt-out request because the controller believes such request is

fraudulent, the controller shall send a notice to the person who made such request disclosing that

such controller believes such request is fraudulent, why such controller believes such request is

fraudulent and that such controller shall not comply with such request.

     (5) A controller that has obtained personal data about a customer from a source other than

the customer shall be deemed in compliance with a customer's request to delete such data.

     (6) A controller shall establish a process for a customer to appeal the controller's refusal to

take action on a request within a reasonable period of time after the customer's receipt of the

decision. The appeal process shall be conspicuously available. Not later than sixty (60) days after

receipt of an appeal, a controller shall inform the customer in writing of any action taken or not

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taken in response to the appeal, including a written explanation of the reasons for the decisions. If

the appeal is denied, the controller shall also provide the customer with a method to submit a

complaint to the attorney general.

     (7) A customer may designate another person to serve as the customer's authorized agent,

and act on such customer's behalf, to opt out of the processing of such customer's personal data. A

controller shall comply with an opt-out request received from an authorized agent if the controller

is able to verify the identity of the customer and the authorized agent's authority to act on the

customer’s behalf.

     6-48.1-8. Controller and processor responsibilities.

     (a) A controller shall establish, and shall describe in a privacy notice, one or more secure

and reliable means for customers to submit a request to exercise their customer rights and shall

provide customers with a reasonably accessible, clear and meaningful privacy notice that includes:

     (1) The categories of personal data processed by the controller;

     (2) The purpose for processing personal data;

     (3) How customers may exercise their customer rights, including how a customer may

appeal a controller's decision with regard to the customer's request;

     (4) The categories of personal data that the controller shares with third parties, if any;

     (5) The categories of third parties, if any, with which the controller shares personal data;

and

     (6) An active electronic mail address or other online mechanism that the customer may use

to contact the controller.

     (b) If a controller sells personal data to third parties or processes personal data for targeted

advertising, the controller shall clearly and conspicuously disclose such processing, as well as the

manner in which a customer may exercise the right to opt out of such processing.

     (c) A processor shall adhere to the instructions of a controller and shall assist the controller

in meeting the controller's obligations of this chapter.

     (d) A contract between a controller and a processor shall govern the processor's data

processing procedures with respect to processing performed on behalf of the controller. The

contract shall be binding and clearly set forth instructions for processing data, the nature and

purpose of processing, the type of data subject to processing, the duration of processing and the

rights and obligations of both parties. The contract shall also require that the processor:

     (1) Ensure that each person processing personal data is subject to a duty of confidentiality

with respect to the data;

     (2) At the controller's direction, delete or return all personal data to the controller as

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requested at the end of the provision of services, unless retention of the personal data is required

by law;

     (3) Upon the reasonable request of the controller, make available to the controller all

information in its possession necessary to demonstrate the processor's compliance with the

obligations of this chapter;

     (4) After providing the controller an opportunity to object, engage any subcontractor

pursuant to a written contract that requires the subcontractor to meet the obligations of the processor

with respect to the personal data; and

     (5) Allow, and cooperate with, reasonable assessments by the controller or the controller's

designated assessor, or the processor may arrange for a qualified and independent assessor to assess

the processor's policies and technical and organizational measures in support of the obligations of

this chapter, using an appropriate and accepted control standard of framework and assessment

procedure for such assessments. The processor shall provide a report of such assessment to the

controller upon request.

     (e) Nothing in this section shall be construed to relieve a controller or processor from the

liabilities imposed on the controller or processor by virtue of such controller’s or processor’s role

in the processing relationship. If a processor begins, alone or jointly with others, determining the

purposes and means of the processing of personal data, the processor is a controller with respect to

such processing and may be subject to an enforcement action under.

     (f) A controller shall conduct and document a data protection assessment for each of the

controller's processing activities that presents a heightened risk of harm to a customer. For the

purposes of this section, processing that presents a heightened risk of harm to a customer includes:

     (1) The processing of personal data for the purposes of targeted advertising;

     (2) The sale of personal data;

     (3) The processing of personal data for the purposes of profiling, where such profiling

presents a reasonably foreseeable risk of unfair or deceptive treatment of, or unlawful disparate

impact on, customers, financial, physical or reputational injury to customers, a physical or other

intrusion upon the solitude or seclusion, or the private affairs or concerns, of customers, where such

intrusion would be offensive to a reasonable person, or other substantial injury to customers; and

     (4) The processing of sensitive data.

     (g) Any controller in possession of de-identified data shall:

     (1) Take reasonable measures to ensure that the data cannot be associated with an

individual;

     (2) Publicly commit to maintaining and using de-identified data without attempting to re-

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identify the data; and

     (3) Contractually obligate any recipients of the de-identified data to comply with all

provisions of this chapter.

     (h) This chapter shall not be construed to restrict a controller's or processor's ability to:

     (1) Comply with federal, state or municipal ordinances or regulations;

     (2) Comply with a civil, criminal or regulatory inquiry, investigation, subpoena or

summons by federal, state, municipal or other governmental authorities;

     (3) Cooperate with law enforcement agencies concerning conduct or activity that the

controller or processor reasonably and in good faith believes may violate federal, state or municipal

ordinances or regulations;

     (4) Investigate, establish, exercise, prepare for or defend legal claims;

     (5) Provide a product or service specifically requested by a customer;

     (6) Perform under a contract to which a customer is a party, including fulfilling the terms

of a written warranty;

     (7) Take steps at the request of a customer prior to entering into a contract;

     (8) Take immediate steps to protect an interest that is essential for the life or physical safety

of the customer or another individual, and where the processing cannot be manifestly based on

another legal basis;

     (9) Prevent, detect, protect against or respond to security incidents, identity theft, fraud,

harassment, malicious or deceptive activities or any illegal activity, preserve the integrity or

security of systems or investigate, report or prosecute those responsible for any such action;

     (10) Engage in public or peer-reviewed scientific or statistical research in the public interest

that adheres to all other applicable ethics and privacy laws and is approved, monitored and governed

by an institutional review board that determines, or similar independent oversight entities that

determine, whether the deletion of the information is likely to provide substantial benefits that do

not exclusively accrue to the controller, the expected benefits of the research outweigh the privacy

risks, and whether the controller has implemented reasonable safeguards to mitigate privacy risks

associated with research, including any risks associated with re-identification;

     (11) Assist another controller, processor or third party with any of the obligations of this

chapter; or

     (12) Process personal data for reasons of public interest in the area of public health,

community health or population health, but solely to the extent that such processing is:

     (i) Subject to suitable and specific measures to safeguard the rights of the customer whose

personal data is being processed, and

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     (ii) Under the responsibility of a professional subject to confidentiality obligations under

federal, state or local law.

     (i) The obligations imposed on controllers or processors shall not restrict a controller's or

processor's ability to collect, use or retain data for internal use to:

     (1) Conduct internal research to develop, improve or repair products, services or

technology;

     (2) Effectuate a product recall;

     (3) Identify and repair technical errors that impair existing or intended functionality; or

     (4) Perform internal operations that are reasonably aligned with the expectations of the

customer or reasonably anticipated based on the customer's existing relationship with the controller,

or are otherwise compatible with processing data in furtherance of the provision of a product or

service specifically requested by a customer or the performance of a contract to which the customer

is a party.

     (j) A controller or processor that discloses personal data to a processor or third party

controller shall not be deemed to have violated this act if the processor or third-party controller that

receives and processes such personal data violates said sections; provided at the time the disclosing

controller or processor disclosed such personal data, the disclosing controller or processor did not

have actual knowledge that the receiving processor or third-party controller would violate said

sections. A third-party controller or processor receiving personal data from a controller or processor

in compliance with this act is likewise not in violation of said sections for the transgressions of the

controller or processor from which such third-party controller or processor receives such personal

data.

     (k) Nothing in this chapter shall be construed to:

     (1) Impose any obligation on a controller or processor that adversely affects the rights or

freedoms of any person, including, but not limited to, the rights of any person to freedom of speech

or freedom of the press guaranteed in the First Amendment to the United States Constitution; or

     (2) Apply to any person's processing of personal data in the course of such person's purely

personal or household activities.

     (l) Personal data processed by a controller pursuant to this section may be processed to the

extent that such processing is reasonably necessary and proportionate to the purposes in this

section; and adequate, relevant and limited to what is necessary in relation to the specific purposes

listed in this section. Personal data collected, used or retained shall, where applicable, consider the

nature and purpose or purposes of such collection, use or retention. Such data shall be subject to

reasonable administrative, technical and physical measures to protect the confidentiality, integrity

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and accessibility of the personal data and to reduce reasonably foreseeable risks of harm to

customers relating to such collection, use or retention of personal data.

     (m) If a controller processes personal data pursuant to an exemption in this section, the

controller bears the burden of demonstrating that such processing qualifies for the exemption.

     (n) Processing personal data for the purposes expressly identified in this section shall not

solely make a legal entity a controller with respect to such processing

     6-48.1-9. Violations.

     (a) A violation of this chapter constitutes a violation of the general regulatory provisions

of commercial law in title 6 and shall constitute a deceptive trade practice in violation of chapter

13.1 of title 6; provided further, that in the event that any individual or entity intentionally discloses

personally identifiable information:

     (1) To a shell company or any entity that has been formed or established solely, or in part,

for the purposes of circumventing the intent of this chapter;

     (2) To any third party that is not exempt pursuant to § 6-48.1-3; or

     (3) In violation of any provision of this chapter, that individual or entity shall pay a fine of

not less than one hundred dollars ($100) and no more than five hundred dollars ($500) for each

such disclosure.

     (b) The office of the attorney general shall have sole enforcement authority of the

provisions of this chapter and may enforce a violation of this chapter pursuant to:

     (1) The provisions of this section; or

     (2) General regulatory provisions of commercial law in title 6, or both.

     (c) The attorney general may require a controller to disclose any data protection assessment

that is relevant to an investigation conducted by the attorney general, and the controller shall make

the data protection assessment available. The attorney general may evaluate the data protection

assessment for compliance with the responsibilities of this chapter.

     (d) Nothing in this section shall be construed to authorize any private right of action to

enforce any provision of this chapter, any regulation hereunder, or any other provisions of

commercial law in title 6.

     6-48.1-10. Waivers -- Severability.

     Any waiver of the provisions of this chapter shall be void and unenforceable. If any

provision of this chapter or its application to any person or circumstance is held invalid by a court

of competent jurisdiction, the invalidity shall not affect other provisions of applications of the

chapter that can be given effect without the invalid provision or application, and to this end the

provisions of the chapter are severable.

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     6-48.1-11. Construction.

     (a) Nothing in this chapter shall be deemed to apply in any manner to a financial institution

or an affiliate of a financial institution subject to Title V of the Federal Gramm-Leach-Bliley Act

U.S.C. § 6801 et seq. and its implementing regulations, or to information or data subject to the

Health Insurance Portability and Accountability Act of 1996 (HIPAA) Pub. L. 104-191; provided,

however, no entity or individual shall be exempt from the provisions of this chapter.

     (b) Nothing in this chapter shall be construed to apply to a contractor, subcontractor, or

agent of a state agency or local unit of government when working for that state agency or local unit

of government.

     (c) Nothing in this chapter shall be construed to apply to any entity recognized as a tax

exempt organization under the Internal Revenue Code.

     (d) Nothing in this chapter shall be construed to mandate and/or require the retention or

disclosure of any specific individual's personally identifiable information.

     (e) Nothing in this chapter shall prohibit or restrict the dissemination or sale of product

sales summaries or statistical information or aggregate customer data which may include

personally, identifiable information.

     (f) Nothing in this chapter shall be construed to apply to any personally identifiable

information or any other information collected, used, processed, or disclosed by or for a customer

reporting agency as defined by 15 U.S.C. § 1681a(f).

     SECTION 2. This act shall take effect on January 1, 2024.

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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

***

     This act would provide data privacy protections for the personal identifiable information

of Rhode Islanders.

     This act would take effect on January 1, 2024.

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