Published: Mon, July 02, 2018
Technology | By Christopher Mann

California agrees on last-minute compromise to ban drink taxes for 12 years

California agrees on last-minute compromise to ban drink taxes for 12 years

Business, technology and telecommunications groups called the bill deeply flawed but begrudgingly urged its passage as a preferable alternative to the ballot initiative.The bill sailed out of both houses Thursday with bipartisan support. Jerry Brown on Thursday signed a bill that, come November, will allow voters in California to get a say in whether the state should continue its twice-yearly process of changing the clocks. In what has been described as a "Hobbesian" choice by one state legislator, AB 375 is now on the cusp of passing.

The new law will take effect January 1, 2020 and lawmakers say they will likely make alterations to improve the policy before that date.

It would give Californians more control over the data they share with companies by allowing them to ask companies to delete it or refrain from selling it.

Parents will have to give permission before a website, online service or mobile app directed toward children can sell the youths' user data.

The CCPA will apply to any for-profit entity doing business in California that (1) collects consumers' personal information (PI) exclusively or jointly with others, and (2) either (i) exceeds $25 million in annual gross revenues; (ii) annually transacts in the PI of 50,000 or more consumers, households or devices; or (iii) derives half or more of its annual revenues from PI sales.

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Laws originating in the legislature instead of from ballot initiatives are easier to amend if issues arise. As part of the compromise, Mr. Mactaggart has agreed to pull the initiative from the ballot before today's deadline for the Secretary of State to certify the initiative for the ballot.

Rusch and other privacy watchdogs say the new law will put companies on notice to be careful in how they handle people's data, but warn of significant loopholes that can be exploited to undermine consumers' privacy.

The California bill would not affect four local soda taxes that were passed in the state in recent years.

Jackson and the other Democrats on the committee supported the bill, but she said she believes it still has an "enormous" number of problems lawmakers would need to address before it takes effect in 2020.

Consumers could sue under the bill if their data was not encrypted or redacted and the company that collected it did not have reasonable security measures in place to protect it. Brown signed the California Consumer Privacy Act of 2018 on Thursday, hours after its unanimous approval by the State Assembly and Senate.

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"I think one of the things we will be looking at is the private rights of action, which has been raised by a number of people", Chau said.

Look for further and more in-depth insights from Manatt on this legislative activity and similar issues in the near future.

Opponents said they feared the bill could lead to a flood of lawsuits.

"Data regulation policy is complex and impacts every sector of the economy, including the internet industry", Internet Association Vice President of State Government Affairs Robert Callahan said in a statement. Strengthening internet privacy gained traction with the public this year after Facebook acknowledged that the political data firm Cambridge Analytica had ended up with information from 87 million users' profiles without their consent.

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