CPPA Opposes Enforcement Moratorium in House Energy & Commerce Budget Reconciliation Bill
SACRAMENTO, CA — On Monday, May 12, the California Privacy Protection Agency (CPPA) submitted a letter to the House Energy & Commerce Committee opposing a provision in the Committee's budget reconciliation bill that seeks to place a moratorium on enforcement of state artificial intelligence and automated decisionmaking technology (ADMT) laws and regulations for 10 years.
The enforcement moratorium threatens critical protections approved by voters. In 2020, Californians voted to strengthen the California Consumer Privacy Act, directing the CPPA to adopt regulations to safeguard consumers' privacy. Specifically, the CPPA is tasked with issuing regulations that govern consumers' access and opt-out rights related to businesses' use of ADMT – crucial rights that provide consumers transparency about how their personal information is used and offer them greater control over how it is processed.
“States have been the laboratories of our democracy, innovating to protect consumers as new harms emerge. When we block responsible safeguards in the face of rapid technological change, we make ourselves – and future generations – less safe from privacy harms,” said Tom Kemp, Executive Director of the CPPA. “Yet, a provision in the House Energy & Commerce reconciliation bill seeks to halt enforcement of vital state AI and ADMT laws for a decade. We urge Congress to strike this provision and uphold its longstanding approach to federal privacy and technology legislation: establish a baseline for protections while preserving states' authority to adopt stronger laws.”
The enforcement moratorium seeks to strip away many important protections that consumers in California and across the country currently enjoy under state laws related to the privacy risks associated with profiling and the automated processing of personal information. For example, the use of these technologies in the workplace can pose the risk of inadvertent disclosure of information, such as whether the employee is pregnant or their sexual orientation.
“California has shown that thoughtful regulation can support innovation while protecting privacy,” said Maureen Mahoney, Deputy Director of Policy & Legislation. “As consumers face new threats from emerging technologies, we call on Congress to support the work of the states to protect their residents' personal information.”
About Us
The California Privacy Protection Agency is committed to promoting the education and awareness of consumers' privacy rights and businesses' responsibilities under the California Consumer Privacy Act.
Californians can visit privacy.ca.gov to access helpful and up–to–date information on how to exercise their rights and protect their personal information. In addition, the Agency's website provides important information about CPPA board meetings, announcements, and the rulemaking process.