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NORTHERN CALIFORNIA RECORD

Thursday, April 25, 2024

CJAC president: California businesses ‘need certainty’ in order to operate under new CCPA

Legislation
Legislativesession 1280

SACRAMENTO – As the California Consumer Privacy Act (CCPA) nears its Jan. 1 enactment, businesses, state leaders and legal experts throughout the state are keeping a watchful eye on newly signed amendments and last ditch efforts to bring more transparency on the controversial measure.

Closing in on the bill’s final makeup, Gov. Gavin Newsom last month signed another round of amendments (Assembly Bills 25, 874, 1146, 1355 and 1564) as well as an amendment to the state’s data breach law (Assembly Bill 1130).

Now, those who will be affected by the CCPA are focused on last month’s draft regulations proposed by the California attorney general. The attorney general's office is set to hold public hearings in four cities across the state during the first week of December and will accept written submissions until Friday, Dec. 6 at 5 p.m.

Experts believe that changes to the bill need to emphasize clarity and longevity if businesses are going to be able to function under the new laws.

“California’s businesses need certainty in order to be expected to operate and comply with new laws,” said Kyla Christoffersen-Powell, President and CEO of the Civil Justice Association of California (CJAC). “The passage of the California Consumer Privacy Act (CCPA) is fraught with complexity and created a lot of uncertainty for businesses. Despite efforts this year, the law and pending regulations are far from settled, leaving many open questions on how to comply.

“For example, AB 25 by Assemblymember (Ed) Chau provided needed clarification for businesses’ regular human resources functions, but has a one-year sunset, meaning that businesses will only see this relief short-term. And the recent filing of an initiative to again revise CCPA provisions via ballot box only adds to the confusion, especially for small businesses who are disproportionately impacted.

“This is not how policy-making should be done. Policy-making of this magnitude needs a measured and balanced approach with a predictable framework and reasonable implementation timelines. As things currently stand, CCPA is a moving target for compliance and an invitation for shakedown lawsuits against businesses struggling to comply.”

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