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Commerce and Small Business Committee gives favorable report to HB351 after substitute adopted
Summary
The Commerce and Small Business Committee adopted an amended substitute to HB351 and voted to give the bill a favorable report as substituted after sponsor Rep. Shaw outlined exemptions, a later effective date and coverage thresholds tied to 25,000 Alabama consumers or 25% of revenue from data sales.
The Commerce and Small Business Committee adopted an amended substitute to HB351 and voted to give the bill a favorable report as substituted after a presentation by sponsor Representative Shaw.
Representative Shaw, the bill sponsor, told the committee the substitute makes several substantive changes, including a later effective date, expanded exemptions for entities already subject to sector-specific regulation and clarified definitions for authorized agents. "We don't want to create a new set of regulations for you," Shaw said, adding the substitute aims to align the measure with standards used in the recent App Store bill that passed both chambers. Shaw said the text standardizes parent, guardian and conservator language and simplifies opt-out mechanics for technology companies so they "don't have to do everything" to comply.
Shaw described the coverage threshold in the substitute: "Now it's just if you, control 25,000 consumers or more, and those are Alabama citizens, or 25% of your revenue is generated from, from the sale of data, then you're you're you're covered by default if you don't fall under 1 of the exemptions," meaning smaller actors would generally be exempt if they do not meet either threshold and otherwise fit an exemption such as being a hospital, university, financial institution or a regulated utility or political subdivision.
After Shaw's presentation the chair asked for a motion to adopt the substitute. Representative Rigsby moved to adopt the substitute and Representative Sellers seconded; the chair called for the ayes and announced "motion carries." The chair then took a separate motion for a favorable report on the bill "as substituted." Representative Rigsby moved and Representative Sellers seconded; the committee voted in favor and the chair declared that HB351 received a favorable report as substituted. The transcript does not record individual vote tallies.
A committee member asked for the document number for filing; Representative Shaw provided the identifier in the transcript as "XDP66ZZDash1." The committee adjourned.
