KRS 367.3625: Construction of KRS 367.3611 to 367.3629 -- Uses of data by controller or

processor -- Application of evidentiary privilege -- Disclosure of data to third -

party controller -- Limitations on processing of personal data -- Burden of

proof.

(1) Nothing in KRS 367.3611 to 367.3629 shall be construed to restrict a controller's or

processor's ability to:

(a) Comply with federal, state, or local laws or regulations;

(b) Comply with a civil, criminal, or regulatory inquiry, investigation, subpo ena,

or summons by federal, state, local, or other governmental authorities;

(c) Cooperate with law enforcement agencies concerning conduct or activity that

the controller or processor reasonably and in good faith believes may violate

federal, state, or local laws, rules, or regulations;

(d) Investigate, establish, exercise, prepare for, or defend legal claims;

(e) Provide a product or service specifically requested by a consumer or a parent

or guardian of a known child;

(f) Perform a contract to which the consumer or parent or guardian of a known

child is a party, including fulfilling the terms of a written warranty;

(g) Take steps at the request of the consumer or parent or guardian of a known

child prior to entering into a contract;

(h) Take immediate ste ps to protect an interest that is essential for the life or

physical safety of the consumer or of another natural person, and where the

processing cannot be manifestly based on another legal basis;

(i) Prevent, detect, protect against, or respond to securi ty incidents, identity theft,

fraud, harassment, malicious or deceptive activities, or any illegal activity;

preserve the integrity or security of systems; or investigate, report, or

prosecute those responsible for any such action;

(j) Engage in public or peer -reviewed scientific or statistical research in the

public interest that adheres to all other applicable ethics and privacy laws and

is approved, monitored, and governed by an institutional review board, or

similar independent oversight entities that determine:

1. If the deletion of the information is likely to provide substantial benefits

that do not exclusively accrue to the controller;

2. The expected benefits of the research outweigh the privacy risks; and

3. If the controller ha s implemented reasonable safeguards to mitigate

privacy risks associated with research, including any risks associated

with re-identification; or

(k) Assist another controller, processor, or third party with any of the obligations

under this subsection.

(2) The obligations imposed on controllers or processors under KRS 367.3611 to

367.3629 shall not restrict a controller's or processor's ability to collect, use, or

retain data to:

(a) Conduct internal research to develop, improve, or repair products, servic es, or

technology;

(b) Effectuate a product recall;

(c) Identify and repair technical errors that impair existing or intended

functionality; or

(d) Perform internal operations that are reasonably aligned with the expectations

of the consumer or reasonably anticipated based on the consumer's existing

relationship with the controller or are otherwise compatible with processing

data in furtherance of the provision of a product or service specifically

requested by a consumer or a parent or guardian of a known c hild or the

performance of a contract to which the consumer or a parent or guardian of a

known child is a party.

(3) The obligations imposed on controllers or processors under KRS 367.3611 to

367.3629 shall not apply to a controller or processor if complia nce under KRS

367.3611 to 367.3629 would violate an evidentiary privilege under the laws of this

Commonwealth. Nothing in KRS 367.3611 to 367.3629 shall be construed to

prevent a controller or processor from providing personal data concerning a

consumer to a person covered by an evidentiary privilege under the laws of this

Commonwealth as part of a privileged communication.

(4) A controller or processor that discloses personal data to a third -party controller or

processor, in compliance with the requiremen ts of KRS 367.3611 to 367.3629, is

not in violation of KRS 367.3611 to 367.3629 if the third -party controller or

processor that receives and processes such personal data is in violation of KRS

367.3611 to 367.3629, provided that, at the time of disclosing the personal data, the

disclosing controller or processor did not have actual knowledge that the recipient

intended to commit a violation. A third -party controller or processor receiving

personal data from a controller or processor in compliance with the r equirements of

KRS 367.3611 to 367.3629 is likewise not in violation of KRS 367.3611 to

367.3629 for the transgressions of the controller or processor from which it receives

such personal data.

(5) Nothing in KRS 367.3611 to 367.3629 shall be construed as an obligation imposed

on controllers and processors that adversely affects the privacy or other rights or

freedoms of any persons, including but not limited to the right of free speech

pursuant to the First Amendment to the Constitution of the United Stat es, or applies

to the processing of personal data by a person in the course of a purely personal or

household activity.

(6) Personal data processed by a controller pursuant to this section shall not be

processed for any purpose other than those expressly l isted in this section unless

otherwise allowed by KRS 367.3611 to 367.3629. Personal data processed by a

controller pursuant to this section may be processed to the extent that such

processing is:

(a) Reasonably necessary and proportionate to the purposes listed in this section;

and

(b) Adequate, relevant, and limited to what is necessary in relation to the specific

purposes listed in this section. Personal data collected, used, or retained

pursuant to subsection (2) of this section shall, where applicable, take into

account the nature and purpose or purposes of such collection, use, or

retention. The data shall be subject to reasonable administrative, technical,

and physical measures to protect the confidentiality, integrity, and

accessibility of personal d ata and to reduce reasonably foreseeable risks of

harm to consumers relating to the collection, use, or retention of personal

data.

(7) If a controller processes personal data pursuant to an exemption in this section, the

controller bears the burden of dem onstrating that such processing qualifies for the

exemption and complies with the requirements in this section.

(8) Processing personal data for the purposes expressly identified in subsection (1) of

this section shall not by itself make an entity a contro ller with respect to such

processing.