|
REFERENCE TITLE: personal data; consumers; controllers; requirements |
|
State of Arizona Senate Fifty-seventh Legislature Second Regular Session 2026
|
|
SB 1815 |
|
|
|
Introduced by Senator Kuby
|
AN ACT
amending title 44, chapter 9, arizona revised statutes, by adding article 27; relating to consumer data.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 44, chapter 9, Arizona Revised Statutes, is amended by adding article 27, to read:
ARTICLE 27. consumer DATA
44-1383. Definitions
In this article, unless the context otherwise requires:
1. "Affiliate" means a legal entity that controls, is controlled by or is under common control with another legal entity or that shares common branding with another legal entity. For the purposes of this paragraph, "control" or "controlled" includes any of the following:
(a) The ownership of, or power to vote, more than fifty percent of the outstanding shares of any class of voting security of a company.
(b) The control in any manner over the election of a majority of the directors or of an individual who exercises a similar function.
(c) The power to exercise controlling influence over the management of a company.
2. "Artificial intelligence system":
(a) Means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives how to generate outputs.
(b) Includes content, decisions, predictions or recommendations that can influence PHYSICAL or virtual environments.
3. "Authenticate" means to verify through reasonable means that the consumer who is authorized to file a consumer request under section 44-1383.01 is the same consumer with respect to the personal data.
4. "Biometric data":
(a) Means data generated by automatic measurements of an individual's biological characteristics.
(b) Includes any of the following:
(i) A fingerprint.
(ii) A voiceprint.
(iii) An eye retinal or iris scan.
(iv) Any other unique biological pattern or characteristic that is used to identify a specific individual.
(c) Does not include any of the following:
(i) A physical or digital photograph or Data generated from a physical or digital photograph.
(ii) A video or audio recording or data generated from a video or audio recording.
(iii) Any information collected related to health care treatment or payment pursuant to the health INSURANCE PORTABILITY and accountability act of 1996 (P.L. 104-191; 110 Stat. 1936).
5. "Child" means an individual who is under sixteen years of age.
6. "Consumer":
(a) Means an individual who resides in this state.
(b) Does not include an individual who is acting on behalf of a business or as an employee.
7. "Consumer consent":
(a) Means a clear, affirmative act that signifies a consumer's freely given, specific, informed and unambiguous agreement to process personal data that relates to the consumer.
(b) Includes a written or electronic statement.
(c) Does not include:
(i) Acceptance of general or broad terms or an acceptance of a document that uses general or broad terms and that contains descriptions of personal data processing along with other unrelated information.
(ii) Acceptance by hovering over, muting, pausing or closing a given piece of content.
(iii) An agreement that was obtained through the use of dark patterns.
8. "Controller" means an individual or person that individually or in concert with other individuals or persons determines the purpose and means of processing personal data.
9. "Dark patterns":
(a) Means a user interface designed or manipulated with the effect of substantially subverting or impairing user autonomy, decision-making or choice.
(b) Includes digital design choices that:
(i) Make it difficult for a consumer to opt out.
(ii) Manipulate or trick a consumer into actions that a consumer would otherwise not take.
(iii) Coerce a consumer to give up data privacy.
10. "Deidentified data" means data that cannot reasonably be linked to an identified or identifiable individual or a device linked to that individual.
11. "Health care provider" has the meaning prescribed by the health insurance portability and accountability act of 1996 (42 United States Code sec 1320d).
12. "Health record":
(a) Means any written, printed or electronically recorded material maintained by a health care provider in the course of providing health care services to an individual that concerns the individual and the services provided.
(b) Includes either of the following:
(i) The substance of any communication made by an individual to a health care provider in confidence during or in connection with the provision of health care services.
(ii) Information otherwise acquired by a health care provider about an individual in confidence and in connection with health care services provided to the individual.
13. "Identified or identifiable individual" means a consumer who can be readily identified, directly or indirectly.
14. "Institution of higher education" means a community college as defined in section 15-1401 or a UNIVERSITY under the jurisdiction of the Arizona board of regents.
15. "known child" means a child under circumstances in which a controller has knowledge of the child's age and wilfully disregards the child's age.
16. "Personal data":
(a) means any information, including sensitive data, that is linked or reasonably linkable to an identified or identifiable individual.
(b) Includes pseudonymous data when the data is used by a controller or processor in conjunction with additional information that reasonably links the data to identified data or publicly available information or data.
17. "Precise geolocation data":
(a) Means information derived from technology that includes latitude and longitude coordinates or other mechanisms and that directly identifies a specific location of an individual within a radius of one thousand seven hundred fifty feet.
(b) Does not include the content of COMMUNICATIONS or any data generated by or connected to an advanced utility metering infrastructure system or equipment used by a utility.
18. "process" or "processing" means an operation or set of operations performed either manually or by automated means on personal data for the collection, use, storage, disclosure, analysis, deletion or modification of personal data.
19. "Processor" means a person that processes personal data on behalf of a controller.
20. "profiling" means processing personal data to evaluate, analyze or predict personal aspects that are related to an identified or identifiable individual's economic situation, health, personal preferences, interests, reliability, behavior, location or movements.
21. "Protected health information" has the meaning prescribed by the health insurance portability and accountability act of 1996 (42 United States Code sec 1320d).
22. "pseudonymous data" means any information that cannot be attributed to a specific individual without the use of additional information, provided that the 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.
23. "publicly available information":
(a) Means any information that a business has a reasonable basis to believe was lawfully made available to the public through widely distributed media by a consumer or by a person to whom the consumer has disclosed the information unless the consumer has restricted the information to a specific audience.
(b) Includes public records as defined in section 41-161.
24. "Sale of personal data":
(a) Means sharing, disclosing or transferring personal data for monetary or other valuable consideration by a controller to a third party.
(b) Does not include any of the following:
(i) The disclosure of personal data to a processor that processes personal data on the controller's behalf.
(ii) The disclosure of personal data to a third party to provide a product or service that was requested by a consumer.
(iii) The disclosure of information that the consumer intentionally made available to the general public through a mass media channel and that the consumer did not restrict to a specific audience.
(iv) The disclosure or transfer of personal data to a third party as an asset that is part of a merger or acquisition.
25. "Sensitive data":
(a) Means a category of personal data.
(b) Includes any of the following:
(i) Personal data that reveals an individual's race or ethnic origin, religion, mental or physical health status, gender or citizenship or immigration status.
(ii) Genetic or biometric data that is processed for the purpose of uniquely identifying an individual.
(iii) Personal data collected from a known child.
(iv) Precise geolocation data.
26. "Targeted advertising":
(a) Means displaying an advertisement to a consumer based on personal data obtained from the consumer's activities across nonaffiliated websites or online applications to predict a consumer's preferences or interests.
(b) Does not include an advertisement that:
(i) Is based on activities within a controller's own websites or online applications.
(ii) Is based on the context of a consumer's current search query, visit to a website or online application.
(iii) Is directed to a consumer in response to the consumer's request for information or feedback.
(iv) Is based on the processing of personal data solely for measuring or reporting ADVERTISing performance, reach or frequency.
27. "Third party" means a person other than the consumer, the controller, the processor or an affiliate of the controller or processor.
44-1383.01. Consumer requests; controller responsibilities and response; personal data collection
A. A consumer may submit a consumer request to a controller for any of the following reasons:
1. To confirm whether a controller is processing a consumer's personal data and to allow the consumer to access the personal data.
2. To correct inaccuracies in a consumer's personal data, taking into account the nature of the personal data and the purposes of the processing of the consumer's personal data.
3. To delete personal data provided by the consumer or obtained about the consumer.
4. If the data is available in a digital format, to obtain a copy of the consumer's personal DATA in a PORTABLE format that the consumer previously provided to the controller. To the extent technically feasible, the personal data must be in a usable format that allows the consumer to transmit the data to another controller without hindrance.
5. To opt out of the controller's processing or use of personal data for the purposes of:
(a) Targeted advertising.
(b) The sale of personal data.
(c) Profiling in furtherance of a decision that produces a legal or similarly significant effect concerning the consumer or the consumer's legal rights.
B. A controller may authenticate the consumer request by verifying the individual who made the request through reasonable commercial means. A consumer may request that ONLY that consumer's consumer data or personal data be removed and may not make a request for another consumer unless authorized as an agent on behalf of the other consumer. A parent or legal guardian may submit a request on behalf of a child under eighteen years of age. The controller shall comply with an authenticated consumer request within a reasonable time pursuant to section 44-1383.04.
C. If a controller is unable to authenticate the request by using commercially reasonable means, the controller is not required to comply with the consumer request and may request that the consumer provide additional information that is reasonably necessary to verify the identity of the consumer.
D. a controller shall comply with a consumer request without undue delay and not later than forty-five days after receiving a consumer request. The controller may extend the response period once by an additional forty-five days based on reasonable necessity, taking into consideration the complexity and number of consumer requests the controller has to process. The controller shall inform the consumer of the time extension within the initial forty-five-day response period and the reason for the extension.
E. If a controller declines to take action regarding the consumer's request, the controller shall inform the consumer without undue delay and not later than forty-five days after receiving the consumer request of the reasons for declining to take action and provide instructions on how to appeal the decision pursuant to section 44-1383.02.
F. A controller shall provide information in response to a consumer's request free of charge, at least twice annually per consumer. If a request from a consumer is manifestly unfounded, excessive or repetitive, the controller may charge the consumer a reasonable fee to cover the administrative costs for complying with the request or may decline to act on the request. The controller has the burden of showing that the request is manifestly unfounded, excessive or repetitive.
G. If a controller has obtained personal data about a consumer from a source other than the consumer and the controller receives a consumer request to delete the consumer's personal data, the controller shall delete the personal data and shall:
1. Retain a record of the consumer request to delete the personal data.
2. Retain the minimum amount of data that is necessary to ensure that the consumer's personal data remains deleted from the business's records and shall not use the retained data for any other purposes.
3. Opt out the consumer from any processing of personal data for any purpose other than a purpose that is exempt under this section.
44-1383.02. Consumer appeal process; controller requirements
A. A controller shall establish a process for a consumer to appeal the controller's decision to refuse to take action or about a prolonged delay, a denial of or an inability to AUTHENTICATE a consumer request.
B. The appeals process must be conspicuously available and similar to the process for submitting a consumer request pursuant to section 44-1383.01.
C. A controller shall inform the consumer in writing of any action taken or not taken in response to an appeal not later than SIXTY calendar days after receiving the appeal AND shall include a written explanation of the reason or reasons for the controller's decision.
D. If a controller denies an appeal, the controller shall provide the consumer with information, including online information that explains HOW the consumer may contact the attorney general's office to submit a consumer fraud complaint as prescribed in chapter 10, article 7 of this title.
44-1383.03. Consumer contract; waiver prohibition
Beginning on January 1, 2027, any contract or amendment to a contract that waives or limits a consumer right provided under this article is contrary to public policy and is void and unenforceable.
44-1383.04. Consumer requests; submission
A. A controller shall establish two or more secure and reliable methods to allow consumers to exercise their consumer rights under this article. The methods shall take into consideration all of the following:
1. The manner in which consumers normally interact with the controller.
2. The necessity for secure and reliable communications of those requests.
3. The ability of the controller to authenticate the identity of the consumer making the request.
B. A controller may not require a consumer to create a new account to exercise consumer rights under this article, but may require a consumer to use an existing account.
C. Except as provided in subsection D of this section, if a controller maintains a website, the controller shall provide a mechanism on the website for consumers to submit consumer requests.
D. A controller that operates exclusively online and that has a direct relationship with the consumer from whom the controller collects personal information is required to provide only an email address for the submission of consumer requests.
E. A consumer may designate another person to serve as the consumer's authorized agent and act on the consumer's behalf to opt out of processing the consumer's personal data. A consumer may designate an authorized agent by using a technology, including a link to an internet website, an internet browser setting or extension or a global setting on an electronic device, that allows the consumer to indicate the consumer's intent to opt out of the processing. The controller shall provide a consumer or the authorized agent of the consumer with technology, links to an internet website, internet browser settings or a global setting on an electronic device that would allow a consumer to opt out of processing personal data. A controller shall comply with an opt out request that is received from technologies acting as a consumer's authorized agent and that indicate the intent to opt out of processing of the consumer's personal data under this article. A controller is not required to verify a request to opt out through an authorized agent, technology or a tool on the controller's website.
44-1383.05. Controller duties; consumer data
A. A controller shall:
1. Limit the collection of personal data to what is relevant and reasonably necessary in relation to the purposes for which the personal data is processed as disclosed in a privacy notice made available to the consumer at the time of collection.
2. Protect the confidentiality, integrity and access to personal data by establishing, implementing and maintaining reasonable administrative, technical and physical data security practices that are appropriate to the volume and nature of the controller's use of personal data.
B. A controller may not:
1. Except as otherwise provided in this article, process personal data for a purpose that is not reasonably necessary or compatible with the disclosed purpose for which the personal data is collected, as disclosed to the consumer in a privacy notice, unless the controller obtains consumer consent after providing the consumer a notice of the new purpose of collecting and processing the personal data.
2. Process personal data in violation of state or federal laws that prohibit unlawful discrimination against consumers.
3. Discriminate against a consumer who exercises any of the consumer rights contained in this article by doing any of the following:
(a) denying goods or services.
(b) Charging different prices or rates for goods or services.
(c) Providing goods or services at a different level of quality.
4. Process sensitive data of a consumer without obtaining the consumer's consent or process the sensitive data of a known child in violation of the children's online privacy protection act of 1998 (P.L. 105-277; 112 Stat. 2681; 15 united states code section 6501).
C. Subsection B, paragraph 3 of this section may not be construed to require a controller to provide a product or service that requires the personal data of a consumer that the controller does not collect or maintain or to prohibit a controller from offering a different price, rate, level, quality or selection of goods or services to a consumer, including offering goods or services for no fee, if the consumer has exercised the consumer's right to opt out under this article or the offer is related to a consumer's voluntary participation in a bona fide loyalty, rewards, premium features, discounts or club card program.
44-1383.06. Privacy notice
A. A controller shall provide each consumer with a reasonably accessible and clearly written privacy notice that includes:
1. The categories of personal data collected and processed by the controller, including, if applicable, any sensitive data processed by the controller.
2. The purposes for collecting and processing personal data.
3. How the consumer may exercise their consumer right to opt out of personal data collection and processing and file a consumer request to remove personal data pursuant to section 44-1383.01 that includes the process by which a consumer may appeal a controller's decision pursuant to section 44-1383.02.
4. If applicable, the categories of personal data that the controller shares with third parties.
5. If applicable, the categories of third parties with whom the controller shares personal data.
6. A description of the methods required under section 44-1383.01 that describes how a consumer may submit requests to exercise their consumer rights under this article.
B. If a controller engages in the sale of personal data or processes personal data for targeted advertising, the controller shall clearly and conspicuously provide the following notice and include in the notice the manner in which the consumer may opt out of the sale of personal data or targeted advertising: "We may sell your personal data or use your personal data for targeted advertising. If you want to opt out of the sale of personal data or targeted advertising, you may [describe the specific manner in which the consumer may opt out]." The notice must be posted in the same location and in the same manner as the privacy notice described in subsection A of this section.
C. If a controller engages in the sale of sensitive data, the controller shall clearly and conspicuously provide the following notice specifying the type of sensitive data and include in the notice the manner in which the consumer may opt out of the sale of sensitive data: "We may sell your [name the specific type of sensitive data, including biometric personal data]. if you want to opt out of the sale of the sensitive data, you may [describe the specific manner in which the consumer may opt out]." The notice must be posted in the same location and in the samer manner as the privacy notice described in subsection A of this section.
D. The privacy notice must be Posted online through a conspicuous link using the word "privacy" on the controller's website home page or on a mobile application's app store page or download page.
E. A controller that maintains an application on a mobile or other device shall also include a link to the privacy notice in the application's setting.
F. A controller that does not operate a WEBSITE shall make the privacy notice conspicuously available to consumers through a medium regularly used by the controller to interact with consumers, for instance, if a controller interacts with a consumer offline, an offline version of the privacy notice must be available to the consumer.
G. To enable a consumer to exercise the right to opt out of processing as described in this article, the controller must:
1. Provide the disclosures required by subsections B and C OF THIS SECTION.
2. Provide a clear, conspicuous method for each or all of the opt out purposes, as applicable, either directly or through a link, in a clear and conspicuous and readily accessible location outside of the privacy notice.
H. To enable a consumer to exercise the right to opt out of processing personal data for the purpose of profiling in furtherance of a decision that produces a legal or similarly significant effect concerning the consumer, the controller shall provide a clear and conspicuous method for consumers to exercise the right to opt out of processing personal data for such profiling at or before the time such processing occurs.
44-1383.07. Sale of data for targeted advertising; disclosure; opt out
If a controller sells personal data for targeted advertising, the controller shall clearly and conspicuously disclose the process and the manner in which a consumer may EXERCISE THE RIGHT TO opt out of that process.
44-1383.08. Duties of processor; contracts between controller and processor
A. A processor shall adhere to the instructions of a controller and shall assist the controller in meeting or complying with the controller's duties or requirements under this article, including:
1. Assisting the controller in responding to consumer RIGHTS' requests submitted under section 44-1383.01 by using appropriate technical and organizational measures, as reasonably practicable, taking into consideration the nature of processing and the information available to the processor.
2. Assisting the controller in complying with the security requirements when processing personal data and, IF APPLICABLE, PERSONAL DATA collected, STORED AND PROCESSED BY AN ARTIFICIAL INTELLIGENCE SYSTEM, AND notifying the controller of any breach of security in the processor's system.
3. Providing necessary information to enable the controller to conduct and document data protection assessments under section 44-1383.09.
B. A contract between a controller and a processor SHALL govern the rights and responsibilities of the data processing procedures that are performed on behalf of the controller. The contract must include all of the following:
1. Clear instructions for processing personal data.
2. The nature and purpose of processing personal data.
3. The type of SPECIFIC personal data subject to processing.
4. The duration of processing.
5. The rights and obligations of the controller and the processor.
6. A requirement that the processor:
(a) Ensure that each person that is processing personal data is subject to a duty of confidentiality with respect to the personal data.
(b) At the controller's direction, delete or return all personal data to the controller as REQUESTED after the service is completed, unless retention of the personal data is required by law.
(c) Make available to the controller, on reasonable request, all information in the processor's possession that is necessary to demonstrate the processor's compliance with the requirements of this article.
(d) Allow and cooperate with reasonable assessments by the controller or the controller's designated assessor.
(e) Engage any subcontractor pursuant to a written contract that requires the subcontractor to meet the requirements of the processor with respect to the processing of personal data.
C. Notwithstanding subsection B, paragraph 6, subdivision (e) of this section, a processor may ARRANGE for a qualified and independent assessor to conduct an assessment of the processor's policies, technical capabilities and organizational structures to serve as a processor. The processor shall provide a report of the assessment to the controller on request.
D. This section does not relieve a controller or a processor from any liability in violation of this article.
E. Whether a person is acting as a controller or processor is a fact-based question taking into consideration the contract between the controller and processor and how the data is processed. A processor that continues to adhere to a controller's instructions when processing personal data remains in the role of a processor.
44-1383.09. Data protection assessments
A. A controller shall conduct and document a data protection assessment of each of the following activities:
1. The processing of personal data for the purposes of targeted advertising.
2. The processing of personal data for sale.
3. The processing of personal data for the purposes of profiling if the profiling presents a reasonably FORESEEABLE risk of any of the following:
(a) unfair or deceptive treatment or unlawful disparate impact on consumers.
(b) Financial, physical or reputational injury to consumers.
(c) Invasion of privacy that would be offensive to a reasonable person.
(d) Other substantial injury to consumers.
(e) The processing of sensitive personal data.
(f) Any processing activities that involves personal data and that presents a heightened risk of harm to consumers.
B. A data protection assessment conducted under subsection a of this section shall DO BOTH OF THE FOLLOWING:
1. Identify and weigh the direct or indirect benefits that may flow from the processing to the controller, the consumer, other stakeholders and the public against the potential risks to the rights of the consumer associated with that processing as mitigated by safeguards that can be employed by the controller to reduce the risks.
2. Take into consideration ALL OF THE FOLLOWING:
(a) The use of deidentified data.
(b) The reasonable expectations of consumers.
(c) The context of the processing.
(d) The relationship between the controller and the consumer whose personal data will be processed.
C. A controller shall provide a copy of the data protection assessment to the attorney general on request OR PURSUANT TO A CIVIL INVESTIGATION DEMAND. disclosure of a data protection assessment in compliance with a request from the attorney general does not constitute a waiver of attorney-client privilege or work product protection with respect to the assessment and any information that is contained in the assessment.
D. A data protection assessment is confidential and not a public record under title 39, chapter 1, article 2.
E. A single data protection assessment IS PERMISSIBLE if the single data protection assessment is comparable to other processing operations THAT INCLUDE similar activities.
F. A data protection assessment conducted by a controller for the purposes of compliance with other laws or regulations constitutes compliance with the requirements of this SECTION if the assessment has a reasonably comparable scope and effect.
44-1383.10. Deidentified or pseudonymous data
A. A controller that is in possession of deidentified data shall:
1. Take reasonable MEASURES to ensure that the deidentified data cannot be associated with any individual.
2. PUblicly commit ON THE CONTROLLER'S WEBSITE OR IN A PRIVACY NOTICE to maintaining and using deidentified data without attempting to reidentify the deidentified data.
3. Contractually obligate any recipient of the deidentified data to comply with this article.
B. This section does not require a controller or processor to:
1. Reidentify deidentified data or pseudonymous data.
2. Maintain deidentified data or pseudonymous data in identifiable form or to obtain, retain or access any data or technology for the purposes of allowing the controller or processor to associate a consumer request with personal data.
3. Comply with an authenticated consumer request under section 44-1383.01 if the controller:
(a) Is not reasonably capable of associating the request with the personal data or it would be unreasonably burdensome for the controller to associate the request with the personal data.
(b) Does not use the personal data to recognize or respond to the specific consumer who is the subject of the personal data or associate the personal data with other personal data about the same specific consumer.
C. The consumer rights under this article do not apply to pseudonymous data in cases in which the controller is able to demonstrate any information necessary to identify the consumer is kept separately and is subject to effective technical and organizational controls that prevent the controller from accessing the INFORMATION.
D. A controller that discloses pseudonymous data or deidentified data shall exercise reasonable oversight to monitor compliance and shall take appropriate steps to address any breakdown in maintaining COMPLIANCE If personal data a controller claims is deidentified or pseudonymous is reidentified and used in a manner that violates this ARTICLE, a presumption will exist that the controller or processor maintaining the reidentified data is responsible for any violation or breach of the personal data.
44-1383.11. Sale of personal data; prohibition
A controller or processor may not sell a consumer's sensitive data without receiving prior consumer WRITTEN consent.
44-1383.12. Attorney general; website; filing of complaints
The attorney general shall post on the attorney general's website both of the following:
1. information relating to:
(a) The responsibilities of a controller pursuant to this article.
(b) The responsibilities of a processor pursuant to this article.
(c) A consumer's options regarding how to submit a consumer request to a controller pursuant to section 44-1386.01 and how to file an appeal if a consumer's RIGHTS WERE denied pursuant to section 44-1386.02.
2. An online mechanism through which a consumer may submit a complaint under this article to the attorney general.
44-1383.13. Attorney general; violations; right to cure; civil penalty
A. An act or practice in violation of this article constitutes an unlawful practice pursuant to section 44-1522. The attorney general may investigate and take appropriate action pursuant to chapter 10, article 7 of this title. The attorney general may promulgate rules for the purpose of carrying out this ARTICLE, particularly the details of how to provide a privacy notice and opt out methods, how to respond to rights requests and how to determine whether secondary processing is compatible with the purpose of processing indicated in the privacy notice.
B. Before bringing an action pursuant to chapter 10, article 7 of this title, the attorney general shall notify a controller in writing not more than thirty days before filing the action and shall identify the specific provisions of this article that the attorney general alleges have been violated. The attorney general may not bring an action against the controller if both of the following apply:
1. The controller cures the identified violation within thirty days after notification from the attorney general.
2. The controller provides the attorney general with a written statement that the controller:
(a) Cured the alleged violation.
(b) Notified the consumer that the consumer's request was addressed if the consumer's contact information was made available to the controller.
(c) Provided documentation to show how the alleged violation was cured.
(d) Made changes to internal policies, if necessary, to ensure that further violations will not occur.
C. A PERSON, controller, PROCESSOR OR THIRD-PARTY AGENT that violates this article following the cure period or that breaches a written statement provided to the attorney general under this section is liable for a civil penalty in an amount of not more than $7,500 for each violation.
D. The attorney general may bring a civil action IN THE NAME OF THIS STATE to:
1. Recover a civil penalty under this section.
2. Restrain or enjoin the person CONTROLLER, PROCESSOR OR THIRD-PARTY AGENT from violating this article.
3. Seek injunctive relief.
E. The attorney general may recover reasonable attorney fees.
F. This article does not establish a private right of action.
44-1383.14. Collection, use, or retention of personal data
A. The requirements imposed on controllers and processors under this article may not restrict a controller's or processor's ability to collect, use or retain personal data to:
1. Conduct internal research to develop, improve or repair products, services or technology.
2. Effect a product recall.
3. Identify and repair technical errors that impair existing or intended functionality.
4. Perform internal operations that are all of the following:
(a) Reasonably aligned with the expectations of the consumer.
(b) Reasonably anticipated based on the consumer's existing relationship with the controller.
(c) Otherwise compatible with processing personal data in furtherance of the provision of a product or service specifically requested by a consumer or the performance of a contract to which the consumer is a party. Whether processing is compatible depends on the context of the relationship with the consumer, the necessity of the processing to providE the specific product or service requested and the consumer's expectations of the use of personal data in the context of the relationship and the product or service requested.
B. A controller or processor is not required to comply with a requirement of this section if compliance would violate an evidentiary privilege under THE LAWS OF THIS STATE.
44-1383.15. Disclosure of personal data to third-party controller or processor
A. A controller or processor that discloses personal data to a third-party controller or processor in compliance with this article does not violate this article if the third-party controller or processor receives and processes the personal data in violation of this article and if the disclosing controller or processor did not have knowledge, REASONABLY SHOULD HAVE KNOWN OR A REASONABLE EXPECTATION that the third-party controller or processor intended to commit a violation.
B. A third-party controller or processor that receives personal data from a controller or processor in compliance with this article does not violate this article for acts that may have occurred before disclosure to the third-party controller or processor.
44-1383.16. Processing of personal data by controller, processor or third-party processor
A. Personal data that is processed by a controller under this article may not be processed for any other purpose. A controller may process Personal data if:
1. The processing of personal data is reasonably necessary and proportionate to the purposes provided in this article.
2. The processing of personal data is relevant and limited to what is necessary in relation to the specific purposes provided in this article.
B. The personal data that is collected, used or retained must be in compliance with this article. A controller shall use appropriate reasonable, administrative, technical and physical MEASURES to protect the confidentiality, integrity and accessibility of personal data and to reduce reasonably FORESEEABLE risks of harm to consumers relating to the collection, use or retention of personal data.
C. A controller that processes personal data under an exemption in this article shall BEAR THE BURDEN TO demonstrate that the PROCESSING OF THE personal data qualifies for the exemption AND IS IN COMPLIANCE WITH THIS ARTICLE.
D. The processing of personal data by a processor or third-party processor does not make the processor or third-party processor a controller WITH RESPECT TO THE PROCESSING OF THE DATA.
44-1383.17. Scope of the article; preemption
This article supersedes and preempts any ORDINANCE, resolution, rule or other regulation adopted by a political subdivision regarding the processing of personal data by a controller or processor.