Florida: Sectoral Exceptions Regulated by Other Laws

Sectoral exceptions in the Florida Digital Bill of Rights (FDPA) aim to avoid duplicative regulation by exempting entities and data types already subject to stringent data protection standards under other federal or sectoral laws. This approach ensures that industries such as healthcare and finance are not overburdened with overlapping compliance requirements.

Text of Relevant Provisions

FDPA Sec.501.703(2)(b):

"(2) This part does not apply to any of the following: (b) A financial institution or data subject to Title V, Gramm-Leach-Bliley Act, 15 U.S.C. ss. 6801 et seq."

FDPA Sec.501.703(2)(c):

"(2) This part does not apply to any of the following: (c) A covered entity or business associate governed by the privacy, security, and breach notification regulations issued by the United States Department of Health and Human Services, 45 C.F.R. parts 160 and 164, established under the Health Insurance Portability and Accountability Act of 1996, 42 U.S.C. ss. 1320d et seq., and the Health Information Technology for Economic and Clinical Health Act, Division A, Title XIII and Division By Title IV, Pub. L. No. 111-5."

Original (Language):

(2) This part does not apply to any of the following: (b) A financial institution or data subject to Title V, Gramm-Leach-Bliley Act, 15 U.S.C. ss. 6801 et seq. (c) A covered entity or business associate governed by the privacy, security, and breach notification regulations issued by the United States Department of Health and Human Services, 45 C.F.R. parts 160 and 164, established under the Health Insurance Portability and Accountability Act of 1996, 42 U.S.C. ss. 1320d et seq., and the Health Information Technology for Economic and Clinical Health Act, Division A, Title XIII and Division By Title IV, Pub. L. No. 111-5."

Analysis of Provisions

Financial Institutions (FDPA Sec.501.703(2)(b))

"This part does not apply to any of the following: (b) A financial institution or data subject to Title V, Gramm-Leach-Bliley Act, 15 U.S.C. ss. 6801 et seq."

This provision exempts financial institutions and data subject to the Gramm-Leach-Bliley Act (GLBA) from the FDPA. The GLBA imposes strict requirements on financial institutions regarding the protection and sharing of non-public personal information. By exempting these institutions, Florida recognizes the comprehensive federal framework already governing data protection in the financial sector, thereby avoiding redundant regulation.

Healthcare Entities (FDPA Sec.501.703(2)(c))

"This part does not apply to any of the following: (c) A covered entity or business associate governed by the privacy, security, and breach notification regulations issued by the United States Department of Health and Human Services, 45 C.F.R. parts 160 and 164, established under the Health Insurance Portability and Accountability Act of 1996, 42 U.S.C. ss. 1320d et seq., and the Health Information Technology for Economic and Clinical Health Act, Division A, Title XIII and Division By Title IV, Pub. L. No. 111-5."

This provision exempts covered entities and business associates governed by HIPAA and HITECH Act regulations. HIPAA and HITECH establish rigorous standards for the privacy, security, and breach notification of health information. The exemption ensures that entities already complying with these federal laws are not subject to additional state-level regulations, which could lead to conflicts and increased administrative burdens.

Implications

For Financial Institutions:

• Compliance Focus: Financial institutions can focus on complying with the GLBA without worrying about overlapping state requirements.
• Streamlined Operations: Simplifies compliance operations by adhering to a single set of stringent federal regulations rather than multiple state laws.

For Healthcare Entities:

• Unified Standards: Healthcare providers and associates can continue to follow HIPAA and HITECH without additional state mandates.
• Reduced Administrative Burden: Avoids the complexity of reconciling state and federal laws, thereby reducing the administrative burden and potential for legal conflicts.

These sectoral exemptions ensure that entities already subject to comprehensive federal regulations can maintain consistent data protection practices without the added complexity of state-specific requirements. This approach supports regulatory clarity and operational efficiency, benefiting both the entities involved and the consumers they serve.