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Bill

S 5434

Establishes the office of consumer data protection and imposes a tax on data controllers and data processors

2025 Regular Session Introduced by Andrew Gounardes and 2 co-sponsors

Bill S 5434 creates an Office of Consumer Data Protection, enhancing privacy rights and imposing a tax on data handlers to ensure accountability in data management.

REFERRED TO FINANCE
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WeVote Research Nonpartisan
Bill Summary · S 5434

Summary of Bill S 5434

Overview

Bill S 5434 aims to establish an Office of Consumer Data Protection and introduce a tax on data controllers and data processors. This legislation is designed to enhance consumer privacy and data protection in an increasingly digital world.

Main Purpose and Intent

The primary intent of S 5434 is to create a dedicated governmental office responsible for overseeing consumer data protection. This office will be tasked with enforcing regulations that safeguard personal data and ensure that data controllers and processors comply with established privacy standards. The bill also seeks to generate revenue through a tax imposed on entities that handle consumer data.

Key Provisions

  • Establishment of the Office of Consumer Data Protection:

    • This office will be responsible for monitoring compliance with data protection laws, investigating breaches, and providing guidance to consumers regarding their data rights.

  • Tax on Data Controllers and Data Processors:

    • A new tax will be levied on organizations that collect, store, or process consumer data. The specifics of the tax rate and structure will be determined in subsequent legislative actions.

  • Consumer Rights Enhancement:

    • The bill aims to empower consumers by providing them with clearer rights regarding their personal data, including the right to access, correct, and delete their information.

  • Compliance Requirements:

    • Data controllers and processors will be required to adhere to strict compliance measures, including regular audits and reporting to the Office of Consumer Data Protection.

Affected Parties

  • Data Controllers and Processors:

    • Businesses and organizations that collect and manage consumer data will be directly impacted by the new tax and compliance requirements.

  • Consumers:

    • Individuals whose data is collected will benefit from enhanced protections and rights regarding their personal information.

  • Government Agencies:

    • The establishment of the new office will require coordination with existing regulatory bodies and may lead to changes in how data protection is enforced at the state level.

Procedural Aspects

  • Introduced Date: February 21, 2025
  • Current Status: The bill has been referred to the Finance Committee for further consideration.
  • Related Bills:
    • S 6727 and S 5662 from prior sessions may provide context or precedent for the provisions included in S 5434.

Conclusion

Bill S 5434 represents a significant step towards strengthening consumer data protection and establishing a regulatory framework for data handling practices. By creating an Office of Consumer Data Protection and imposing a tax on data controllers and processors, the bill aims to enhance consumer rights and ensure accountability in the management of personal data. The ongoing legislative process will determine the final structure and implications of this bill.

Compiled from official sources — confirm details with the bill’s official record.

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