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Clark Kaericher | Vice President, Government Affairs | 217-522-5512 ext. 296
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February 21, 2020
The Technology Council seeks to aggressively and proactively promote the interests of the Illinois technology community by advocating for public policy that fosters innovation and promotes economic growth. The Council will seek to promote workforce development policies, advocate for world-class technology infrastructure, avoid overregulation on the industry and support innovators access to the capital they need to grow.
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Chamber Files BIPA Reform Legislation
Before last week's deadline, the Chamber filed five bills aimed at reforming Illinois' broken BIPA law. BIPA law in its current form encourages frivolous class-action suits and stifles innovation in Illinois. Illinois can become a worldwide tech leader, but it must get out of its own way. These reforms would be a step in the right direction.
SB 3591 (Barickman) - Amends the Biometric Information Privacy Act. Deletes language that a prevailing party may recover damages against a private entity that negligently violates the Act for each violation of the Act. Provides instead that a prevailing party may recover liquidated damages of $1,000 or actual damages, whichever is greater, and that such damages for a negligent violation by a private entity shall be recovered only for a single collection of each aggrieved party's biometric identifier or biometric information.
SB 3592 (Barickman) / HB 5374 (Durkin) - Amends the Biometric Information Privacy Act. Changes the term of "written release" to "written consent". Provides that the written policy that is developed by a private entity in possession of biometric identifiers shall be made available to the person from whom biometric information is to be collected or was collected (rather than to the public). Deletes a provision regarding a right of action. Provides instead that any violation that results from the collection of biometric information by an employer for employment, human resources, fraud prevention, or security purposes is subject to the enforcement authority of the Department of Labor. Provides that an employee or former employee may file a complaint with the Department a violation by submitting a signed, completed complaint form. Provides that all complaints shall be filed with the Department within one year from the date of the violation. Provides that any other violation of the Act constitutes a violation of the Consumer Fraud and Deceptive Business Practices Act, with enforcement by the Attorney General or the appropriate State's Attorney. Provides that the Act does not apply to a private entity if the private entity's employees are covered by a collective bargaining agreement that provides for different policies regarding the retention, collection, disclosure, and destruction of biometric information.
SB 3593 (Barickman) / HB 5375 (Durkin) - Amends the Biometric Information Privacy Act. Changes the term of "written release" to "written consent". Provides that the written policy that is developed by a private entity in possession of biometric identifiers shall be made available to the person from whom biometric information is to be collected or was collected (rather than to the public). Deletes a provision regarding a right of action. Provides instead that any violation that results from the collection of biometric information by an employer for employment, human resources, fraud prevention, or security purposes is subject to the enforcement authority of the Department of Labor. Provides that an employee or former employee may file a complaint with the Department a violation by submitting a signed, completed complaint form. Provides that all complaints shall be filed with the Department within one year from the date of the violation. Provides that any other violation of the Act constitutes a violation of the Consumer Fraud and Deceptive Business Practices Act, with enforcement by the Attorney General or the appropriate State's Attorney. Provides that the Act does not apply to a private entity if the private entity's employees are covered by a collective bargaining agreement that provides for different policies regarding the retention, collection, disclosure, and destruction of biometric information. Makes other changes.
Senator Cunningham also filed BIPA legislation with SB 3776. This was not authored by the Chamber but it would represent a big improvement to the current situation
SB 3776 (Cunningham) - Amends the Biometric Information Privacy Act. Provides that a prevailing party may only recover liquidated damages of $1,000 or actual damages, whichever is greater, for negligent violation of the Act against a private entity offending party that is not a current or former employer of the prevailing party. Provides that a prevailing party may only recover actual damages against a private entity offending party that is the current or former employer of the prevailing party and that negligently violates the Act.
Data Privacy Legislation
Several new data privacy bills have been filed. As always, your feedback is appreciated.
HB 5204 (Wheeler) - Creates the Cybersecurity Compliance Act. Defines terms. Creates an affirmative defense for every covered entity that creates, maintains, and complies with a written cybersecurity program that contains administrative, technical, and physical safeguards for the protection of either personal information or both personal information and restricted information and that reasonably conforms to an industry-recognized cybersecurity framework. Prescribes requirements for the cybersecurity program. The Chamber supports this legislation
HB 5288 (Burke-Wheeler) - Creates the Data Privacy Act. Provides for the regulation of the use and sale of data. Defines terms. Establishes consumer rights to copies of information held by persons who control and process data. Provides for the correction of inaccurate data. Provides for restrictions on the use of personal data. Provides for the enforcement of the Act by the Attorney General. Provides civil penalties. Preempts home rule and provides that the regulation of data use and privacy are exclusive powers and functions of the State. Creates the Consumer Privacy Fund as a special fund in the State treasury.
HB 5603
(Mussman) - Creates the Consumer Privacy Act. Provides that a consumer has the right to request that a business that collects the consumer's personal information disclose to that consumer the categories and specific pieces of personal information the business has collected. Requires a business to, at or before the point of collection, inform a consumer as to the categories of personal information to be collected and the purposes for which the categories of personal information shall be used. Requires the business to provide notice when collecting additional categories of personal information or when using a consumer's personal information for additional purposes. Provides that a consumer has the right to request that a business delete any personal information about the consumer which the business has collected from the consumer, with some exceptions. Requires a business that collects or sells a consumer's personal information to make certain disclosures to the consumer upon receipt of a verifiable consumer request. Provides that a consumer has the right, at any time, to opt-out of the sale of his or her personal information to third parties. Prohibits a business from discriminating against a consumer who exercises any of the rights established under the Act by denying goods or services or charging the consumer different prices or rates for goods or services. Permits a business to provide financial incentives to a consumer that authorizes the sale of his or her personal information. Contains provisions concerning deadlines for processing a consumer's disclosure request; categories of personal information that must be disclosed; notice requirements; consumer information that is not subject to the Act's requirements; civil penalties for violations of the Act; and other matters. Amends the State Finance Act. Creates the Consumer Privacy Fund.
SB 3414 (Castro) - Creates the Protecting Household Privacy Act. Provides that a law enforcement agency shall not obtain household electronic data or direct the acquisition of household electronic data from a private party or other third party. Provides exceptions. Provides that if a law enforcement agency obtains household electronic data under the Act, the agency within 30 days shall destroy all information obtained, except that a supervisor at that agency may retain particular information if: (1) there is reasonable suspicion that the information contains evidence of criminal activity; or (2) the owner of the household electronic device consents to voluntarily provide the desired household electronic data. Provides that if the court finds by a preponderance of the evidence that a law enforcement agency obtained household electronic data pertaining to a person or his or her effects in violation of the Act, then the information shall be presumed to be inadmissible in any judicial or administrative proceeding. Provides that any person or entity that provides household electronic data in response to a request from any law enforcement agency under the Act shall take reasonable measures to ensure the confidentiality, integrity, and security of any household electronic data provided to any law enforcement agency, and to limit any production of household electronic data to information relevant to the law enforcement agency request. Provides that if a manufacturer of a household electronic device discloses household electronic data to any third party, the manufacturer shall make the following information available on a clear and conspicuous notice on the manufacturer's Internet website: (1) all categories of household electronic data disclosed to third parties; and (2) the names of all third parties that receive household electronic data.
Committees Update
The House Cybersecurity, Data Analytics & IT Committee canceled for the second time this week. As of this morning, it has yet to reschedule. HB 2736 (Buckner) was the sole bill posted. HB 2736 creates the "Right to Know Act". This legislation would forbid an operator of a website or online service from disclosing personal information about users of its website, or application, residing in Illinois unless in the customer agreement they are notified about: i) the personal information collected; ii) all categories of third-party persons or entities with whom the operator may disclose, and iii) proving a description of an Illinois' residents rights under this Act. All website or online service operators that disclose personal information to a third party must maintain an email address or toll-free phone number to inform any Illinois resident that asks what personal information that was shared about them and to whom it was shared. All inquiries must be answered within 30 days. Most worrisome is that it creates a private right of action for failure to comply. As we have seen with BIPA, this can be abused.
There is no technology-related legislation posted in the Senate.
Governor's Budget Address
The Governor's Budget address was on February 19. The Governor's proposed budget includes additional tax receipts that would result from a favorable vote on the constitutional amendment authorizing a graduated income tax.
The Governor's budget proposal includes "budgetary reserves" in the amount of $1.4 billion in event that the graduated income tax constitutional amendment is not ratified by the voters. $300 billion of that amount is for corporate income tax refunds. In other words, if the constitutional amendment is not ratified, the budget will be "balanced" by shorting the corporate income tax refund fund by $300 million during the fiscal year beginning on July 1, 2020.
Here is a
link
to the Governor's budget documents.
Illinois Chamber President and CEO Todd Maisch released the following statement on Governor Pritzker's Budget Address.
"The Illinois Chamber is encouraged by the governor's budget plan, as it produces a balanced budget without increasing taxes by $3.6 billion, which would be triggered by the passage of a progressive tax scheme. By prudently holding down spending - through the $1.4 billion "hold", the administration has made it clear to Illinoisans that another ruinous tax increase is unnecessary. We also call on the governor and the legislature to enact pro-growth policies that will increase tax revenues through economic growth without increasing tax rates."
Chamber Day 2020
Chamber Day 2020 is about a month away! Register now to ensure your place:
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