The California ConsumerPrivacy Act went into effect, but it is likely just the beginningof more privacy regulations. Privacy laws are popping up in manystates and the federal government is working on nationallegislation. While the privacy laws impact everyone, commercialproperty owners are no exception, particularly those with privacypolicies and those that integrate data-collection technology intotheir properties.

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"California is certainly the biggest, but we have seenconversations from other states that are in very stages ofconsidering privacy laws as well," Lisa Stanley,CEO of OSCRE, tells GlobeSt.com. "It points out tome that organizations need to have an effective approach to datagovernance at the top of the house, involving the C-suite andbusiness leaders at every level of the organization to reallyexamine what information they are collecting and if they need tocollect that information."

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There is also movement to adopt a privacy policy at the federallevel as well. "Every day there is something new happening. Rightnow, you have each state passing laws that have some similaritiesbut at the same time are different," Alison Bird,managing director at CohnReznick, tellsGlobeSt.com. "It is really challenging on the commercial side tocomply with this hodgepodge. There has been pressure to come upwith a federal bill, but recently a democratic bill was backed byseveral key committee members. Republicans have now come out withtheir own version of the law, and they are meeting to begin theprocess. So, it looks like there is really interest in creating afederal law."

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While both sides have created drafts, there are some majorfriction points. "The major friction points between the two sides,and the biggest is whether there is going to be preemption or not:will a state be able to pass a stricter law," says Bird. "Thedemocratic law would allow for that, and the republican law would.If you don't have preemption, then the federal law is reallysetting a floor, the least amount of protection that each consumershould have. With preemption, the federal law would be the ceiling,and that would make compliance easier."

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As these regulations get stricter, Stanley recommends having aprivacy policy throughout every segment of the business. "Therealso needs to be an acknowledgement that there is inherently ahigher and broader level of risk in organizations than there waspreviously with privacy being a component of cyber security," shesays. "This includes looking at insurance issues and currentliability policies. It is a more complex environment that we haveseen in the past. These are challenges that are not going to geteasier as we move forward."

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.