Key lawmakers and advocacy groups are raising concerns over Sen. Maria Cantwell and Rep. Cathy McMorris Rodgers' new bipartisan privacy bill, Ashley and Maria report.

Why it matters: The federal privacy conversation is front and center again, but the wave of criticism facing the discussion draft signals a major lobbying battle ahead.

What they're saying: The bill is now under intense scrutiny, including from Senate Commerce Ranking Member Ted Cruz, who said he wants to ensure it doesn't have "the same flaws" as the ADPPA.

• "In particular, I cannot support any data privacy bill that empowers trial lawyers, strengthens Big Tech by imposing crushing new regulatory costs on upstart competitors or gives unprecedented power to the FTC to become referees of internet speech and DEI compliance," Cruz said.
• Carl Holshouser, executive vice president of TechNet, said: "We are deeply concerned that language around preemption could be a gift to the trial lawyers."

Friction point: Rep. Frank Pallone, ranking Democrat on the House Energy and Commerce Committee, said he supports the effort but that it could be strengthened, "especially children's privacy."

• The draft bill requires annual reviews of algorithms to ensure they don't harm kids.

Zoom in: Kids' safety advocates are keeping an eye on how the draft legislation will take other bills, namely COPPA 2.0 and KOSA, into account and whether it will preempt state-level measures.

• Some states already have kids codes in place.
• CMR spokesperson Sean Kelly said: "Our understanding is that this bill does not preempt state design code bills."

Along with preemption, there are concerns about the bill's private right of action.

• Information Technology and Innovation Foundation senior policy manager Ashley Johnson said she's worried that it's "much broader" than previous bills.
• The ADPPA, for instance, would have required individuals to first notify their state attorney general and the FTC of their intent to sue.

What's next: Once the bill is formally introduced, it'll go through hearings and markups.

• Software company trade group BSA said it will focus on ensuring the bill reflects the role of service providers "who should be subject to strong obligations as they process data on behalf of other companies" and will prioritize the bill's effect on AI policy.

The big picture: Lawmakers don't have a lot of time left this Congress to reach compromises, address outside group concerns and get a law passed after years of stalemate.

Here's what we're watching this week on the Hill.

1. Section 230: House Energy and Commerce's communications and technology subcommittee gathers Thursday at 1pm ET for a hearing to examine "where we are now" with tech platforms' prized liability shield.

2. AI and IP: Lawmakers on the House Judiciary panel on courts, IP and the internet meet Wednesday at 10am ET for the third hearing in a series on AI and intellectual property issues.

• This time they're zeroing in on whether IP protection should be given for AI-assisted inventions and creative works, and if current or proposed rules on inventorship need to be changed.

3. Export controls: The Senate Homeland Security emerging threats and spending oversight panel holds a hearing Wednesday at 3pm ET on improving export controls enforcement.