ARTICLE
12 October 2021

California Bill Clarifies Timing For CPRA Rulemaking Authority

SM
Sheppard Mullin Richter & Hampton

Contributor

Sheppard Mullin is a full service Global 100 firm with over 1,000 attorneys in 16 offices located in the United States, Europe and Asia. Since 1927, companies have turned to Sheppard Mullin to handle corporate and technology matters, high stakes litigation and complex financial transactions. In the US, the firm’s clients include more than half of the Fortune 100.
California recently passed AB 694, which makes a few "technical" changes to the California Privacy Rights Act (CPRA). Importantly, this amendment...
United States California Privacy

California recently passed AB 694, which makes a few "technical" changes to the California Privacy Rights Act (CPRA). Importantly, this amendment clarifies the timing for the new California Privacy Protection Agency's (CPPA) rulemaking authority.

Previously, CPRA provided two different dates for when the Agency would assume responsibility for rule-making. One section said it was the earlier of July 1, 2021, or six months after the Agency provides notice to the Attorney General that it is prepared to begin rulemaking. However, a different section of the statute said it was the later of these two dates. Because the appointments to the CPPA were just made, the amendment clarifies that it is the later of these two dates - i.e., six months after notice to the Attorney General.

Putting it Into Practice: Though in the past, Companies now have clarity that CPPA's rule-making authority was not in fact tied to July 1, 2021. Instead, the Agency's authority will be tied to 6 months after it provides its notice of proposed rule-making (which we expect later this year/early 2022 as discussed here).

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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