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California's Latest Privacy Rulemaking Proposes Further Obligations for Businesses  

By Kyle Fath, Alan Friel, Shea Leitch and David J. Oberly
August 01, 2022

In May, the California Privacy Protection Agency (CPPA or Agency) released the first draft of its much-anticipated proposed California Privacy Rights Act of 2020 (CPRA) Regulations (Regs), as well as the Agency's Initial Statement of Reasons. Although useful for the purpose of indicating what the Agency's priorities may be, the draft Regs are far from complete. Of note, the Regs purposely omit provisions on key topics, including automated decision-making and profiling, cybersecurity audits, and risk assessments; consequently, companies should expect the Regs to expand far beyond their current 66-page length.

On July 8, 2022, the Agency commenced its formal rulemaking process to adopt the proposed Regs with the filing of a Notice of Proposed Rulemaking. The Notice triggered the beginning of a 45-day public comment period, which will end on Aug. 23, 2022. The CPPA will also host public hearings on Aug. 24 and 25, 2022. After the close of the 45-day comment period, the CPPA will then determine whether to adopt the Regs substantially or, alternatively, make additional modifications based on comments submitted to the Agency. In the event the CPPA decides to move forward with making "major" modifications to the original draft Regs, a corresponding 45-day comment period will be provided; if the CCPA modifications are deemed to be only "substantial and sufficiently related," the comment period will last for only 15 days.

This article discusses the most important aspects of, and other key takeaways from, the CPPA's initial iteration of the Regs.

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