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Illustration: Sarah Grillo/Axios

House Energy & Commerce Committee staff have negotiated a bipartisan discussion draft on federal privacy regulations and began asking industry and civil society groups to weigh in.

Why it matters: The draft, which staffers started circulating Wednesday, is a rare and potentially significant bipartisan step toward a national privacy law, a goal that's proven elusive despite strong, sustained interest from both parties. An effort in the Senate led to dueling Democratic and Republican takes on privacy.

Driving the news: Rep. Jan Schakowsky, who chairs the E&C consumer protection subcommittee, said the draft is meant to shift the burden of protecting privacy off consumers and onto companies and regulators.

  • It would establish a four-tier system in which companies face more restrictions based on whether they intend to use consumer data in a way that's consistent with consumer expectations.
  • For example, there would be fewer protections associated with Amazon using a customer's address and purchase information to ship a book and more restrictions on Amazon sharing book purchase information with a third party for marketing purposes.
  • The draft also empowers the FTC with the ability to issue fines for first-time offenses.
  • "I want to address the growing anxiety of consumers that they have become the product," Schakowksy said in an interview. "And their information — they feel they have no control over it. They don’t know where and who and what it’s being used for."

What it's missing: The draft doesn't address the issues of federal preemption of state laws or a so-called private right of action letting consumers sue companies over privacy screw-ups. Those issues have divided Republicans and Democrats, contributing to the splintering of the Senate effort.

  • Schakowsky said preemption will be handled toward the end of the legislative process. "If we have the most robust bill in the world so far, then we can have that conversation."
  • The draft also would create a new Bureau of Privacy within the FTC, rather than creating a new federal agency to police privacy, as some Democrats have proposed.

What's next: The deadline for feedback on the draft is Jan. 24. Schakowsky said she is committed to doing a bill next year.

  • "I think the bill will be the E&C bill," she said. "It’s the only one where we really have bipartisanship that is really comprehensive."

Yes, but: Staff cautioned the draft "does not necessarily represent the policy positions of Members" in the request for feedback from outside parties.

  • A Republican committee spokesperson said, "We know we need clear rules of the road and one national privacy standard. We are now at the next step of our deliberative process—sharing the draft with stakeholders, and we look forward to working with them going forward.”

Go deeper

SoCalGas agrees to $1.8 billion settlement for 2015 gas blowout

An evacuee with a Save Porter Ranch sign outside Southern California Gas Company's Aliso Canyon gate in Porter Ranch in January 2016 as the gas leak continued. Photos: Al Seib / Los Angeles Times via Getty Images

Southern California Gas Company and its parent company announced Monday they've agreed to pay up to $1.8 billion in settlement claims over the 2015 Aliso Canyon natural gas storage facility blowout.

Why it matters: Some 100,000 tons of methane, ethane and toxic chemicals poured into the air for 112 days, forcing over 8,000 families to evacuate from their Los Angeles-area homes and sickening many with headaches, nausea and nosebleeds, per the L.A. Times.

Updated 4 hours ago - World

North Korea fires short-range missile to sea, slams "hostile" U.S. policy

North Korean leader Kim Jong-un. Photo: API/Gamma-Rapho via Getty Images

South Korea's Joint Chiefs of Staff said Tuesday that North Korea's military had fired a short-range missile toward its eastern sea, per AP.

Why it matters: North Korea's ambassador to the United Nations defended the latest launch in remarks to the UN General Assembly, demanding the U.S. and South Korea end their "hostile policy" against the country.

Arizona Judge: Adding mask mandates ban to budget bill unconstitutional

Arizona Gov. Doug Ducey (R) Photo: Michael Brochstein/SOPA Images/LightRocket via Getty Images

An Arizona judge ruled Monday that the state's ban on mask mandates in schools, and other measures put into the state budget by Republicans, are unconstitutional, the Arizona Republic reports.

Why it matters: The sweeping ruling voids a ban on vaccine requirements for public universities, community colleges and local governments, and strikes down some non-COVID-related measures like a ban on teaching critical race theory in classrooms and anti-fraud measures for ballots.