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Senate advances tightened consumer privacy bill, lowering thresholds and expanding protections for minors
Summary
Senate Bill 297, a revision of Montana’s consumer privacy law, was reported do pass after the sponsor described expanded protections for young consumers and tightened exemptions for entities claiming exemption as financial institutions; the committee recorded the bill as passed in committee.
Senator D. Zolnikoff presented Senate Bill 297 as a tightening of Montana's existing consumer privacy law. The sponsor said the measure clarifies exemptions, extends protections for minors, and lowers the threshold for covered entities from 50,000 to 25,000 consumers (with different thresholds for entities that derive a portion of revenue from data sales).
"So this is a tightening of that bill because there are a few exemptions. Pretty loosely, so some entities were claiming to be financial institutions that, is being tightened, so you can't just claim that and still collect people's data and sell it," Zolnikoff said. He also described expanded protections for minors and additional enforcement clarity for the attorney general.
The sponsor emphasized the bill would not require money from the state and said the legislation is intended to bring Montana's rules in line with other states while lowering the thresholds that trigger coverage so more businesses must comply.
After the committee hearing and discussion, the committee recommended Senate Bill 297 do pass. The transcript records the committee moving the bill forward and later reporting that it "has passed." Specific technical questions about drafting and enforcement authority were discussed during the committee hearing as the sponsor outlined definitions and thresholds.
The bill's text in committee included provisions requiring notice to consumers, an opt-out option for certain processing, duties for controllers, and a role for the attorney general to post rights and responsibilities guidance online; the sponsor said the bill also clarifies coverage across multiple-state operations so companies operating under other states' laws would not need a separate Montana-specific notice.
