CA AB 1281 Passes CA Legislature

Akin Gump Strauss Hauer & Feld LLP

Akin Gump Strauss Hauer & Feld LLP

On August 30 the California Consumer Privacy Act (CCPA) Sunset Extension Bill, AB-1281, passed 63-0. The bill, which was introduced in early 2019, has passed through committee and chambers in the state of California, providing a much requested extension to the business to business (B2B) and employee exemptions under the CCPA, which were set to expire this year.

Under AB-1281, the B2B and employee exemptions expire on January 1, 2022. If the California Privacy Rights Act (CPRA) passes on November 2, 2020, AB-1281 becomes inoperative and the B2B and employee exemptions will expire on January 1, 2023.

The CPRA proposes multiple additional changes to the CCPA, including establishing a new authority to enforce the CCPA. Currently, the state attorney general’s office is tasked with enforcement of the CCPA. The CPRA also aims to create new rights, including the right to opt out of the use of sensitive personal information for advertising and marketing, and tripling the CCPA’s applicable fines for collecting and selling children’s information. We have previously discussed the CPRA in detail here.

We will continue to monitor and track the AB-1281 and CPRA ballot initiatives closely.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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