Federal Privacy Bill Hits Roadblock, State Activity Picks Up Speed

At the eleventh hour, the House Energy and Commerce Committee cancelled a markup scheduled for Thursday that included the American Privacy Rights Act of 2024 (APRA). At the state level, by contrast, Minnesota and Rhode Island recently enacted their own comprehensive data privacy laws, bringing the total to 20. And previously adopted statutes in three states – Oregon, Texas, and Florida – go into effect on July 1.

Having cleared the Innovation, Data, and Commerce Subcommittee late last month, the APRA was one of eleven bills on the agenda for yesterday's full committee markup. Chair Cathy McMorris Rodgers (R-WA) did not state a reason for the last-minute cancellation, but The Hill reported that House Republican leadership objected to the private right of action created by the discussion draft.

As it happens, in "Congressional Leaders Return Privacy to the Front Burner," an April Perspectives from FSF Scholars, I anticipated that "the APRA's problematic inclusion of a private right of action may – and should – prove once again to be a sticking point."

The already sizeable patchwork of state comprehensive data privacy laws, meanwhile, continues to grow. (So, too, do the associated compliance headaches for companies and confusion faced by consumers.) On May 24, 2024, North Star State Governor Tim Walz signed the Minnesota Consumer Data Privacy Act, a law similar – though not identical, of course – to those passed in New Hampshire and Maryland.

And on June 25, 2024, Ocean State Governor Dan McKee transmitted with no signature the Rhode Island Data Transparency and Privacy Protection Act, bringing the total of state comprehensive data privacy laws to 20. The Rhode Island statute is notable for its relatively large fines: up to $10,000 per violation, plus additional penalties for "intentional disclosures of personal data."

The Minnesota act will not go into effect until July 31, 2025, the Rhode Island law not until January 1, 2026. Laws in three other states, however, kick in on the first day of July: the Oregon Consumer Privacy Act, the Texas Data Privacy and Security Act, and – by my measure, at least – the Florida Digital Bill of Rights.

For additional details on these statutes, please see "More States Compound the Dreaded Privacy 'Patchwork' Problem," a July 2023 Free State Foundation Perspectives.