SB166: Bill Text

SB166,19,2 1. Take reasonable measures to ensure that the data cannot be associated with an individual.

SB166,19,4 2. Publicly commit to maintaining and using deidentified data without attempting to reidentify the data.

SB166,19,6 3. Contractually obligate any recipients of the deidentified data to comply with all provisions of this section.

SB166,19,8 (b) Nothing in this section shall be construed to require a controller or processor to do any of the following:

SB166,19,9 1. Reidentify deidentified data or pseudonymous data.

SB166,19,10 2. Maintain data in identifiable form.

SB166,19,12 3. Collect, obtain, retain, or access any data or technology, in order to be capable of associating an authenticated consumer request with personal data.

SB166,19,15 (c) Nothing in this section shall be construed to require a controller or processor to comply with an authenticated consumer rights request under sub. (2) if all of the following are true:

SB166,19,18 1. The controller is not reasonably capable of associating the request with the personal data or it would be unreasonably burdensome for the controller to associate the request with the personal data.

SB166,19,21 2. The controller does not use the personal data to recognize or respond to the specific consumer who is the subject of the personal data, or associate the personal data with other personal data about the same specific consumer.

SB166,20,2 3. The controller does not sell the personal data to any 3rd party or otherwise voluntarily disclose the personal data to any 3rd party other than a processor, except as otherwise permitted in this subsection.

SB166,20,7 (d) The consumer rights contained in subs. (2) (a) 1. to 4. and (3) shall not apply to pseudonymous data in cases where the controller is able to demonstrate any information necessary to identify the consumer is kept separately and is subject to effective technical and organizational controls that prevent the controller from accessing such information.

SB166,20,12 (e) A controller that discloses pseudonymous data or deidentified data shall exercise reasonable oversight to monitor compliance with any contractual commitments to which the pseudonymous data or deidentified data is subject and shall take appropriate steps to address any breaches of those contractual commitments.

SB166,20,14 (7) Limitations. (a) Nothing in this section shall be construed to restrict a controller’s or processor’s ability to do any of the following:

SB166,20,15 1. Comply with federal, state, or local laws, rules, or regulations.

SB166,20,17 2. Comply with a civil, criminal, or regulatory inquiry, investigation, subpoena, or summons by federal, state, local, or other governmental authorities.

SB166,20,20 3. Cooperate with law enforcement agencies concerning conduct or activity that the controller or processor reasonably and in good faith believes may violate federal, state, or local laws, rules, or regulations.

SB166,20,21 4. Investigate, establish, exercise, prepare for, or defend legal claims.

SB166,21,2 5. Provide a product or service specifically requested by a consumer or the parent or guardian of a child, perform a contract to which the consumer is a party, including fulfilling the terms of a written warranty, or take steps at the request of the consumer prior to entering into a contract.

SB166,21,5 6. Take immediate steps to protect an interest that is essential for the life or physical safety of the consumer or of another individual, and where the processing cannot be manifestly based on another legal basis.

SB166,21,9 7. Prevent, detect, protect against, or respond to security incidents, identity theft, fraud, harassment, malicious or deceptive activities, or any illegal activity; preserve the integrity or security of systems; or investigate, report, or prosecute those responsible for any such action.

SB166,21,13 8. Engage in public or peer-reviewed scientific or statistical research in the public interest that adheres to all other applicable ethics and privacy laws and is approved, monitored, and governed by an institutional review board, or similar independent oversight entities that determine all of the following:

SB166,21,15 a. If the deletion of the information is likely to provide substantial benefits that do not exclusively accrue to the controller.

SB166,21,16 b. The expected benefits of the research outweigh the privacy risks.

SB166,21,18 c. If the controller has implemented reasonable safeguards to mitigate privacy risks associated with research, including any risks associated with reidentification.

SB166,21,20 9. Assist another controller, processor, or 3rd party with any of the obligations under this section.

SB166,21,23 (b) The obligations imposed on controllers or processors under this section shall not restrict a controller’s or processor’s ability to collect, use, or retain data to do any of the following:

SB166,22,2 1. Conduct internal research to develop, improve, or repair products, services, or technology.

SB166,22,3 2. Effectuate a product recall.

SB166,22,5 3. Identify and repair technical errors that impair existing or intended functionality.

SB166,22,11 4. Perform internal operations that are reasonably aligned with the expectations of the consumer or reasonably anticipated on the basis of the consumer’s existing relationship with the controller or are otherwise compatible with processing data in furtherance of the provision of a product or service specifically requested by a consumer or the performance of a contract to which the consumer is a party.

SB166,22,17 (c) The obligations imposed on controllers or processors under this section shall not apply where compliance by the controller or processor with this section would violate an evidentiary privilege under ch. 905. Nothing in this section shall be construed to prevent a controller or processor from providing personal data concerning a consumer to a person covered by an evidentiary privilege under ch. 905 as part of a privileged communication.

SB166,23,4 (d) A controller or processor that discloses personal data to a 3rd-party controller or processor, in compliance with the requirements of this section, is not in violation of this section if the 3rd-party controller or processor that receives and processes such personal data is in violation of this section, provided that, at the time of disclosing the personal data, the disclosing controller or processor did not have actual knowledge that the recipient intended to commit a violation. A 3rd- party controller or processor receiving personal data from a controller or processor in compliance with the requirements of this section is likewise not in violation of this section for the transgressions of the controller or processor from which it receives such personal data.

SB166,23,9 (e) Nothing in this section shall be construed as an obligation imposed on controllers and processors that adversely affects the rights or freedoms of any persons, such as exercising the right of free speech pursuant to the First Amendment to the U.S. Constitution, or applies to the processing of personal data by a person in the course of a purely personal or household activity.

SB166,23,14 (f) Personal data processed by a controller pursuant to this subsection may not be processed for any purpose other than those expressly listed in this subsection unless otherwise allowed by this section. Personal data processed by a controller pursuant to this subsection may be processed to the extent that such processing is both of the following:

SB166,23,16 1. Reasonably necessary and proportionate to the purposes listed in this subsection.

SB166,24,2 2. Adequate, relevant, and limited to what is necessary in relation to the specific purposes listed in this subsection. Personal data collected, used, or retained pursuant to par. (b) shall, where applicable, take into account the nature and purpose or purposes of such collection, use, or retention. Such data shall be subject to reasonable administrative, technical, and physical measures to protect the confidentiality, integrity, and accessibility of the personal data and to reduce reasonably foreseeable risks of harm to consumers relating to such collection, use, or retention of personal data.

SB166,24,5 (g) If a controller processes personal data pursuant to an exemption in this section, the controller bears the burden of demonstrating that such processing qualifies for the exemption and complies with the requirements in par. (f).

SB166,24,7 (h) Processing personal data for the purposes expressly identified in par. (a) shall not solely make an entity a controller with respect to such processing.

SB166,24,10 (8) Scope; exemptions. (a) This section applies to persons that conduct business in this state or produce products or services that are targeted to residents of this state and who satisfy either of the following:

SB166,24,12 1. During a calendar year, the person controls or processes personal data of at least 100,000 consumers.

SB166,24,14 2. The person controls or processes personal data of at least 25,000 consumers and derives over 50 percent of gross revenue from the sale of personal data.

SB166,24,15 (b) This section shall not apply to any of the following:

SB166,24,19 1. An association, authority, board, department, commission, independent agency, institution, office, society, entity regulated by the federal Farm Credit Administration, or other body in state or local government created or authorized to be created by the constitution or any law.

SB166,24,21 2. Financial institutions, affiliates of financial institutions, or data subject to Title V of the federal Gramm-Leach-Bliley Act, 15 USC 6801 et seq.

SB166,24,22 3. A covered entity or business associate governed by HIPAA or HITECH.

SB166,24,23 4. A nonprofit organization.

SB166,25,1 5. An institution of higher education.

SB166,25,4 6. A state agency or political subdivision of this state, including agents and entities that use public safety technologies for the purposes of bona fide law enforcement investigation.

SB166,25,5 7. The entity under contract under s. 153.05 (2m) (a) and its contractors.

SB166,25,7 8. The data organization under contract under s. 153.05 (2r) and its contractors.

SB166,25,8 (c) The following information and data are exempt from this section:

SB166,25,13 1. Any health care information or record that is governed by HIPAA, HITECH, Cures Act, or any other federal law governing the use, disclosure, access or creation of health care information or records, including any derived, identifiable, de-identifiable, confidential or non-confidential health care information or records as defined by such federal laws.

SB166,25,18 2. Any health care information or record that is governed by s. 51.30, 146.816, 146.82, 146.83, or 146.84, chapter 153, or other Wisconsin law governing the use, disclosure, access or creation of health care information or records, including any derived, identifiable, de-identifiable, confidential or non-confidential health care information or records as defined by such Wisconsin laws.

SB166,25,19 3. Any of the following:

SB166,25,21 a. Identifiable private information for purposes of the federal policy for the protection of human subjects under 45 CFR Part 46.

SB166,26,2 b. Identifiable private information that is otherwise information collected as part of human subjects research pursuant to the good clinical practice guidelines issued by the International Council for Harmonisation of Technical Requirements for Pharmaceuticals for Human Use or under 21 CFR Parts 50 and 56.

SB166,26,5 c. Personal data used or shared in research conducted in accordance with the requirements set forth in this section, or other research conducted in accordance with applicable law.

SB166,26,7 4. Information and documents created for purposes of the federal Health Care Quality Improvement Act of 1986, 42 USC 11101 et seq.

SB166,26,9 5. Patient safety work product for purposes of the federal Patient Safety and Quality Improvement Act, 42 USC 299b-21 et seq.

SB166,26,12 6. Information originating from, and intermingled to be indistinguishable with, or information treated in the same manner as information exempt under this paragraph.

SB166,26,19 7. The collection, maintenance, disclosure, sale, communication, or use of any personal information bearing on a consumer’s credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living by a consumer reporting agency, furnisher, or user that provides information for use in a consumer report, and by a user of a consumer report, but only to the extent that such activity is regulated by and authorized under the federal Fair Credit Reporting Act, 15 USC 1681 et seq.

SB166,26,21 8. Personal data collected, processed, sold, or disclosed in compliance with the federal Driver’s Privacy Protection Act of 1994, 18 USC 2721 et seq.

SB166,26,23 9. Personal data regulated by the federal Family Educational Rights and Privacy Act, 20 USC 1232g et seq.

SB166,27,2 10. Personal data collected, processed, sold, or disclosed in compliance with the federal Farm Credit Act, 12 USC 2001 et seq.

SB166,27,3 11. Data processed or maintained for any of the following purposes:

SB166,27,6 a. In the course of an individual applying to, employed by, or acting as an agent or independent contractor of a controller, processor, or 3rd party, to the extent that the data is collected and used within the context of that role.

SB166,27,8 b. As the emergency contact information of an individual under this section used for emergency contact purposes.

SB166,27,11 c. That is necessary to retain to administer benefits for another individual relating to an individual described in subd. 15. a. and used for the purposes of administering those benefits.

SB166,27,14 12. Personal data collected, processed, and maintained in compliance with the Children’s Online Privacy Protection Act of 1998, 15 USC 6501 et seq., as amended, and regulations thereto.

SB166,27,16 (9) Violations. (a) The department and the department of justice shall have authority to enforce violations of this section.

SB166,28,2 (b) 1. The department or the department of justice shall, at least 30 days before initiating any action under this section, provide a controller or processor written notice that identifies the specific provisions of this section the department or the department of justice alleges have been or are being violated. If within the 30 days the controller or processor cures the noticed violation and provides the department or the department of justice an express written statement that the alleged violations have been cured and that no such further violations shall occur, no action shall be initiated against the controller or processor.

SB166,28,6 2. Notwithstanding subd. 1., if a controller or processor continues to violate this section in breach of an express written statement provided to the department or the department of justice under subd. 1., the department or the department of justice may initiate an action under this section.

SB166,28,9 (c) Nothing in this section shall be construed as providing the basis for, or being subject to, a private right of action to violations of this section or under any other law.

SB166,28,22 (10) Enforcement; penalties. (a) The department or the department of justice has exclusive authority to enforce violations of this section. The department or the department of justice may commence an action in any court of competent jurisdiction in the name of this state to restrain by temporary or permanent injunction the violation of this section and any order issued under this section and to recover a civil forfeiture of not less than $100 and not more than $10,000 for each violation of this section or of any order, including an injunction, issued under this section. The court may in its discretion, prior to the entry of final judgment, make such orders or judgments as may be necessary to restore any person any pecuniary loss suffered because of the acts or practices involved in the action, provided proof thereof is submitted to the satisfaction of the court. The department may use its authority in ss. 93.14 and 93.15 to investigate violations of this section and any order issued under this section.

SB166,29,7 (b) The department of justice may issue a civil investigative demand to any controller or processor believed to be engaged in, or about to engage in, any violation of this section, and by the civil investigative demand the department of justice may compel the attendance of any officers or agents of the controller or processor, examine the officers or agents of the controller or processor under oath, require the production of any books or papers that the department of justice deems relevant or material to the inquiry, and issue written interrogatories to be answered by the officers or agents of the controller or processor.

SB166,29,16 (c) The department or the department of justice may serve a complaint, notice, order, civil investigative demand, or other process in the manner provided for service of a summons, or a subpoena as provided by s. 885.03, and either may be served by registered mail to an address that the controller or processor previously furnished to the department, the department of justice, or the department of financial institutions. Service may be proved by affidavit. Service in any event may also be by registered mail addressed to the controller or processor and proved by post office return receipt, in which case the time of service is the date borne by the receipt.

SB166,29,20 (d) Notwithstanding s. 814.04 (1), the department or the department of justice may recover reasonable expenses incurred in investigating, preparing, and prosecuting the case, including attorney fees, of any action initiated under this section.

SB166,29,23 (11) Local preemption. No city, village, town, or county may enact or enforce an ordinance that regulates the collection, processing, or sale of personal data.

SB166,2 Section 2. 100.80 (9) (b) 1. of the statutes, as created by 2025 Wisconsin Act .... (this act), is repealed.

SB166,3 Section 3. 100.80 (9) (b) 2. of the statutes, as created by 2025 Wisconsin Act .... (this act), is renumbered 100.80 (9) (b) and amended to read:

SB166,30,8 100.80 (9) (b) Notwithstanding subd. 1., if If a controller or processor continues to violate violates this section in breach of an express written statement provided to the department or the department of justice under subd. 1., the department or the department of justice may initiate an action under this section.

SB166,4 Section 4. Effective dates This act takes effect on July 1, 2027, except as follows:

SB166,30,12 (1) The repeal of s. 100.80 (9) (b) 1. and the renumbering and amendment of s. 100.80 (9) (b) 2. take effect on July 1, 2031.

SB166,30,13 (end)