Keypoint: During the CPPA’s hearing on February 17, 2022, Executive Director Ashkan Soltani provided an update on the CPRA rulemaking process, which is now expected to close in the third or fourth quarter of 2022.
During the California Privacy Protection Agency’s (CPPA) public hearing on February 17, 2022, Executive Director Ashkan Soltani provided an update to the Board on the rulemaking process, among other operational updates.
The timeline laid out by Mr. Soltani includes preliminary public hearings in March and April, with formal rulemaking proceedings commencing in the second quarter. The rulemaking process is anticipated to be completed in the third or fourth quarter 2022, well beyond the statutory deadline of July 1, 2022.
The Board expressed support for this timeline given the need to further staff the agency as well as hold substantial preliminary meetings on the complex regulatory topics.
The preliminary public hearings are anticipated to consist of instructive hearings and stakeholder hearings. The instructive hearings will introduce academics and subject matter experts who will provide explanations and guidance on certain regulatory topics. Mr. Soltani suggested that the agency has a good understanding of what topics require input and explanation based on input to date from the Board subcommittees and the public comments received in response to the agency’s September 2021 Invitation for Preliminary Comments. The instructive hearings are anticipated to be scheduled for mid to late March. The stakeholder hearings will follow in April.
The format of the preliminary hearings is still to be determined. The Board expressed a preference to continue with the virtual meeting format to allow for broad stakeholder participation. The format, however, is subject to California’s open meetings law which currently permits remote meetings only through March 31.
Formal rulemaking will commence in April when rulemaking authority officially transfers to the CPPA. This is a result of CCPA, Sections 1798.185, subd. (d) and 1798.199.40, subd. (b), which state rulemaking authority transfers to the CPPA six months following the CPPA’s notice to the Attorney General that it is ready to assume rulemaking responsibilities. The CPPA provided this notice to the AG on October 21, 2021.
Note, too, that as a result of the transfer of agency authority, the current CCPA regulations are being refiled in the California Code of Regulations. The regulations will go in Title 11, new Division 6, starting with section 7000. A redline of the regulations showing the renumbering is available here.
Mr. Soltani stated rulemaking is expected to be completed in the third or fourth quarter. This leaves little to no time for businesses subject to the CPRA to be in compliance by January 1, 2023. It remains to be seen whether the statutory effective date or enforcement date (July 1, 2023) will be amended as a result.
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