Applicability of Data Protection Law in Montana: Higher Education Institution Exemption

The "Higher Education Institution" factor examines exemptions granted to institutions of higher education, such as universities and colleges, from the scope of data protection laws. In Montana, this factor is addressed under the Montana Consumer Data Privacy Act (MCDPA).

Text of Relevant Provisions

MCDPA Sec.4(1)(c):

"(1) [Sections 1 through 12] do not apply to any: (c) institution of higher education;"

Analysis of Provisions

The Higher Education Institution factor in MCDPA Sec.4(1)(c) explicitly exempts institutions of higher education from the provisions of the Montana Consumer Data Privacy Act. This means that the requirements and regulations outlined in sections 1 through 12 of the MCDPA do not apply to universities, colleges, and similar educational institutions.

Key elements of this provision include:

• Exemption from provisions: Postsecondary education institutions are not subject to the data protection regulations set forth in the MCDPA.
• Specific mention of institutions of higher education: The law specifically identifies "institution of higher education" as a category for exemption, highlighting the unique status of these entities.

The rationale for this exemption likely stems from the recognition that institutions of higher education often handle large volumes of personal data for educational, research, and administrative purposes. Legislators may have considered these institutions' existing data protection measures and regulations, such as those under the Family Educational Rights and Privacy Act (FERPA), to be sufficient.

Implications

For higher education institutions in Montana, this exemption means they are not required to comply with the specific provisions of the MCDPA. This can reduce the regulatory burden on these institutions and allow them to operate under the data protection frameworks already applicable to them, such as FERPA.

Examples:

• Exempt: A university collecting and processing student data for enrollment and academic purposes is exempt from MCDPA requirements.
• Not exempt: A private company providing educational services or products to students, but not classified as an institution of higher education, would still need to comply with the MCDPA if they meet other applicability criteria.

This exemption underscores the importance for data controllers and processors to carefully assess their classification and ensure they understand which data protection laws apply to their operations.