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Financial Services Law Insights and Observations

Privacy initiative makes California ballot

State Issues Privacy/Cyber Risk & Data Security State Legislation State Attorney General CCPA

State Issues

On June 24, the California Privacy Rights Act of 2020 (CPRA) ballot initiative was submitted to the California Country Clerk’s office as an initiative qualified for the November 2020 General Election ballot after receiving more than the 623,212 valid signatures required to qualify. The initiative was drafted by Alastair Mactaggart, the Founder and Chair of the Californians for Consumer Privacy, and would amend the CCPA in several significant ways. Notably, Mactaggart also drafted the initiative that ultimately resulted in the California Consumer Privacy Act (CCPA). The ballot initiative would, among other things:

  • Provide consumers with the right to require a business to correct inaccurate personal information;
  • Revise the definition of “business” to: (i) clarify that the time period for calculating annual gross revenues is based on the prior calendar year; (ii) provide that an entity meets the definition of a “business” if the entity, in relevant part, alone or in combination, annually buys, sell, or shares the personal information of 100,000 or more consumers or households; (iii) include a joint venture or partnership composed of businesses in which each business has at least a 40 percent interest; and (iv) include a person who does not otherwise qualify as a “business” but voluntarily certifies to the California Privacy Protection Agency (described below) that it is in compliance with, and agrees to be bound by, the CPRA;
  • Create the California Privacy Protection Agency, which would have the authority to implement and enforce the CCPA (powers that are currently vested in the attorney general). The agency would be governed by a five-member board, including a single Chair, with members being appointed by the governor, the attorney general, and the leaders of the senate and assembly; and
  • Expand on the CCPA’s opt-out provisions and prohibit businesses from selling a consumers’ “sensitive personal information”—a new term introduced by the initiative— without affirmative authorization.

Additional details regarding the proposed changes are available in the September 2019 InfoBytes post announcing the initiative. Since originally filing the initiative in September 2019, Mactaggart has amended the initiative several times, without significant change.

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