On May 19, 2025, the California Senate Appropriations Committee, which handles budgetary and financial matters, held a hearing on California Senate Bill 690 (SB 690). The proposed bill would amend the California Invasion of Privacy Act (CIPA) by adding an exception to the statute which has the effect of permitting use of tracking technologies for "commercial business purposes."
The Appropriations Committee referred SB 690 to the Suspense File. Generally, if the cost of a bill meets certain fiscal thresholds, the Appropriations Committee will refer the bill to the Suspense File. Having met that threshold, SB 690 will now proceed to a vote-only Suspense Hearing to be held on May 23, 2025. No testimony will be heard during the May 23, 2025 hearing. SB 690 will then either move on to the Senate Floor, or be held in committee. While referral to the Suspense File is not necessarily a death knell to SB 690, statistics show that a number of bills die quietly in the Suspense Hearing due, in part, to its non-public process.
If passed, SB 690 would exempt the use of such online tracking technologies from violating CIPA, provided they are used for a "commercial business purpose" and comply with existing privacy laws like the California Consumer Privacy Act (CCPA). SB 690 could significantly impact current litigation under CIPA for online business activities. Not only will plaintiffs be far less likely to file new lawsuits alleging violations of CIPA, but SB 690's provisions are explicitly made retroactive to any cases pending as of January 1, 2026, which could lead to dismissals of ongoing lawsuits, as well.
Businesses may want to consider engaging their government relations teams or contacting members of the Senate Appropriations Committee to express their positions on the bill.
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