Notes on Nova Scotia’s FOIPOP Reform Bill

On Friday, the Nova Scotia legislature introduced Bill 150, a new statute that consolidates the province’s public sector access and privacy laws and introduces key modernization reforms. Below are some quick highlights from the bill.

Class-based exemption for security control information. I just posted last week about withholding information that could jeopardize network security. Nova Scotia’s proposed legislation includes a novel class-based exemption that permits a head to withhold “information the disclosure of which could reasonably be expected to reveal, or lead to the revealing of, measures put in place to protect the security of information stored in electronic form.” Having previously negotiated with regulators to exclude control-related details from investigation reports, I view this language as both protective and positive.

New privacy impact assessment requirement. Under Bill 150, public bodies will be required to conduct a privacy impact assessment (PIA) before initiating any “project, program, system, or other activity” that involves the collection, use, or disclosure of personal information. The PIA must also be updated if there is a substantial change to the activity. A key question is whether the term “other activity” is broad enough to include non-routine or minimal data collections—which public bodies may prefer not to assess.

Power to collect for threat assessment purposes. This touches on an issue I’ve followed for years: behavioral threat assessment and the conduct of so-called “threat inquiries.” Conducting a threat inquiry in response to concerning behavior to properly assess a human threat is a best practice that arose out of 2004 United States school shooting report. However, their legality has been questioned when conducted by institutions without a law enforcement mandate. Nova Scotia’s proposed legislation includes a new authorization to collect personal information—either directly or indirectly—for the purpose of reducing the risk that an individual will be the victim of intimate partner violence or human trafficking. This is a positive step, but it raises a key question: What about other forms of physical violence? The statute’s narrow focus may leave gaps in protection where threat assessments could be equally justified.

New offshoring rules. The new statute, if passed, will repeal the Personal Information International Disclosure Protection Act (PIIDPA)- Nova Scotia’s statute that prohibits public bodies and municipalities from storing, accessing, or disclosing personal information outside of Canada unless an exception applies. It will replace it with a new provision, however, that could be used to continue a similar prohibition. The new provision prohibits disclosing and storing personal information outside of Canada (as well as permitting personal information to be accessed from outside of Canada) unless in accordance with regulations. It does not contemplate regulation of service providers and their employees, which is a feature of PIIDPA.

New breach notification. The new statute, if passed, will include privacy breach notification and reporting, triggered when “it is reasonable to believe that an affected individual could experience significant harm as a result of the privacy breach.” This is equivalent to the “real risk of significant harm standard” in my view.

Supreme Court power to remedy breaches. The new statute, if passed, will give the Nova Scotia Supreme Court the power to issue orders when “personal information has been stolen or has been collected by or disclosed to a third party other than as authorized by this Act.” British Columbia has a more elaborate version of such a provision, which can help public bodies respond to breaches given ongoing legal uncertainty around the status of personal information as property.

Hat tip to David Fraser.

Perspectives on anonymization report released

On December 18, Khaled El Emam, Anita Fineberg, Elizabeth Jonker and Lisa Pilgram published Perspectives of Canadian privacy regulators on anonymization practices and anonymization information: a qualitative study. It is based on input from all but one Canadian privacy regulator, and includes a great discussion of one of the most important policy issues in Canadian privacy law – What do we do about anonymization given the massive demand for artificial intelligence training data?

The authors stress a lack of precision and consistency in Canadian law. True that the fine parameters of Canadian privacy law are yet to be articulated, but the broad parameters of our policy are presently clear:

First, there must be authorization to de-identify personal information. The Canadian regulators who the authors spoke with were mostly aligned against a consent requirement, though not without qualification. If there’s no express authorization to de-identify without consent (as in Ontario PHIPA), one gets the impression that a regulator will not imply consent to de-identify data for all purposes and all manner of de-dentification.
Second, custodians of personal information must be transparent. One regulator said, “I have no sympathy for the point of view that it’s better not to tell people so as not to create any noise. I do not believe that that’s an acceptable public policy stance.” So, if you’re going to sell a patient’s health data to a commercial entity, okay, but you better let patients know.
Third, the information must be de-identified in a manner that renders the re-identification risk very low in the context. Lots can be said about the risk threshold and the manner of de-identification, and lots that will be said over the next while. The authors recommend that legislators adopt a “code of practice” model for establishing specific requirements for de-dentification.

The above requirements can all be derived from existing legislation, as is illustrated well by PHIPA Decision 175 in Ontario, about a custodian’s sale of anonymized personal health information. Notably, the IPC imposed a requirement on the disclosing custodian to govern the recipient entity by way of the data sale agreement, rooting its jurisdiction in the provision that requires safeguarding of personal health information a custodian’s control. One can question this root, though it is tied to re-identification risk and within jurisdiction in my view.

What’s not in current Canadian privacy legislation is any restriction on the purpose of de-dentification, the identity of recipients, or the nature of the recipient’s secondary use. This is a BIG issue that is tied to data ethics. Should a health care provider ever be able to sell its data to an entity for commercial use? Should custodians be responsible for determining whether the secondary use is likely to harm individuals or groups – e.g., based on the application of algorithmic bias?

Bill C-27 (the PIPEDA replacement bill) permits the non-consensual disclosure of de-identified personal information to specific entities for a “socially beneficial purpose” – “a purpose related to health, the provision or improvement of public amenities or infrastructure, the protection of the environment or any other prescribed purpose.” Given C-27 looks fated to die, Alberta’s Bill 33 may lead the way, and if passed will restrict Alberta public bodies from disclosing “non-personal information” outside of government for any purpose other than “research and analysis” and “planning, administering, delivering, managing, monitoring or evaluating a program or service” (leaving AI model developers wondering how far they can stretch the concept of “research”).

Both C-27 and Bill 33 impose a contracting requirement akin to that imposed by the IPC in Decision 175. Bill 33, for example, only permits disclosure outside of government if:

(ii) the head of the public body has approved conditions relating to the following: (A) security and confidentiality; (B) the prohibition of any actual or attempted re-identification of the non-personal data; (C) the prohibition of any subsequent use or disclosure of the non-personal data without the express authorization of the public body; (D) the destruction of the non-personal data at the earliest reasonable time after it has served its purpose under subclause (i), unless the public body has given the express authorization referred to in paragraph (C),

and

(iii) the person has signed an agreement to comply with the approved conditions, this Act, the regulations and any of the public body’s policies and procedures
relating to non-personal data.

Far be it from me to solve this complex policy problem, but here are my thoughts:

Let’s aim for express authorization to-de identify rather than continuing to rely on a warped concept of implied consent. Express authorization best promotes transparency and predictability.
I’m quite comfortable with a generally stated re-identification risk threshold, and wary of a binding organizations to a detailed and inaccessible code of practice.
Any foray into establishing ethical or other requirements for “research” should respect academic freedom, and have an appropriate exclusion.
We need to eliminate downstream accountability for de-identified data of the kind that is invited by the Bill 33 provision quoted above. Custodians don’t have the practical ability to enforce these agreements, and the agreements will therefore invite huge potential liability. Statutes should bind recipients and immunize organizations who disclose de-identified information for a valid purpose from downstream liability.

Do have a read of the report, and keep thinking and talking about these important issues.

Notable features of the Alberta public sector privacy bill

Alberta has recently introduced Bill 33 – a public sector privacy “modernization” bill. Alberta has put significantly more thought into its modernization bill than Ontario, who introduced modest FIPPA reforms in a more splashy and less substantive reform bill earlier this year. This means Bill 33 is significant because it is leading. Might it set the new public sector norm?

Here are Bill 33’s notable features:

Bill 33 will require public bodies to give pre-collection notice of an intent to input personal information into an “automated system to generate content or make decisions, recommendations or predications.” Automated system is not defined, and it is unclear if this is meant to foster decision-making transparency or transparency about downstream data use.
Bill 33 will require breach notification and reporting based on the “real risk of significant harm” standard. Reports to the OIPC and the Minister responsible for the Act will be required. Requiring reports to the regulator and government is novel.
Bill 33 will prohibit the sale of personal information “in any circumstances or for any purpose.” Sale is not defined.
Bill 33 has an allowance for disclosing personal information if the disclosure would not constitute an unjustified invasion of personal privacy. This flexible allowance – which contemplates balancing interests – does not typically apply outside of the access request context.
Bill 33 has a prohibition on data matching to produce derived personal information about an identifiable individual. This matching will only be permitted for “research and analysis” and “planning, administering, delivering, managing, mentoring or evaluating a program or service” unless additional allowances are implemented by regulation. The Alberta OIPC has said that “research and analysis” should be defined, and that that there should be a transparency requirements for data matching.
Bill 33 will establish rules regarding de-identified or “non-personal data.” The rules will permit disclosure of non-personal data to another public body without restriction, but disclosures of non-personal data to others will be limited to specified purposes and subject to requirements that render downstream users accountable to the disclosing public body. Public bodies will also have a duty to secure non-personal data.
Bill 33 will require public bodies to establish and implement privacy management programs consisting of documented policies and procedures. It will also mandate privacy impact assessments in circumstances that will be prescribed, with submission to the OIPC also to be prescribed in some circumstances.

There is a long list of exceptions to the indirect collection prohibition in the Bill, but no exceptions that permit the collection of personal information for threat assessment purposes. Violence threat risk assessments have become a standard means by which educational institutions discharge their safety-related duties. “VTRAs” rest on an indirect collection of personal information that should be expressly authorized in any modernized public sector privacy statues.