30-14-2816. (Effective October 1, 2024) Compliance by controller or processor. (1) Nothing in this part may be construed to restrict a controller's or processor's ability to:

(a) comply with federal, state, or municipal ordinances or regulations;

(b) comply with a civil, criminal, or regulatory inquiry, investigation, subpoena, or summons by federal, state, municipal, or other government 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 municipal ordinances or regulations;

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

(e) provide a product or service specifically requested by a consumer;

(f) perform under a contract to which a consumer is a party, including fulfilling the terms of a written warranty;

(g) take steps at the request of a consumer prior to entering a contract;

(h) take immediate steps to protect an interest that is essential for the life or physical safety of the consumer or another individual and when the processing cannot be manifestly based on another legal basis;

(i) prevent, detect, protect against, or respond to security 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 of these actions;

(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 that determines or similar independent oversight entities that determine:

(A) whether the deletion of the information is likely to provide substantial benefits that do not exclusively accrue to the controller;

(B) the expected benefits of the research outweigh the privacy risks; and

(C) whether the controller has implemented reasonable safeguards to mitigate privacy risks associated with research, including any risks associated with re-identification;

(k) assist another controller, processor, or third party with any of the obligations under this part; or

(l) process personal data for reasons of public interest in public health, community health, or population health, but solely to the extent that the processing is:

(A) subject to suitable and specific measures to safeguard the rights of the consumer whose personal data is being processed; and

(B) under the responsibility of a professional subject to confidentiality obligations under federal, state, or local law.

(2) The obligations imposed on controllers or processors under this part may not restrict a controller's or processor's ability to collect, use, or retain personal data for internal use to:

(a) conduct internal research to develop, improve, or repair products, services, 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 the performance of a contract to which the consumer is a party.

(3) The obligations imposed on controllers or processors under this part may not apply when compliance by the controller or processor with this part would violate an evidentiary privilege under the laws of this state. Nothing in this part may 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 state as part of a privileged communication.

(4) A controller or processor that discloses personal data to a processor or third-party controller in accordance with this part may not be considered to have violated this part if the processor or third-party controller that receives and processes the personal data violates this part provided, at the time the disclosing controller or processor disclosed the personal data, the disclosing controller or processor did not have actual knowledge that the receiving processor or third-party controller would violate this part. A receiving processor or third-party controller receiving personal data from a disclosing controller or processor in compliance with this part is likewise not in violation of this part for the transgressions of the disclosing controller or processor from which the receiving processor or third-party controller receives the personal data.

(5) Nothing in this part may be construed to:

(a) impose any obligation on a controller or processor that adversely affects the rights or freedoms of any person, including but not limited to the rights of any person:

(i) to freedom of speech or freedom of the press guaranteed in the first amendment to the United States constitution; or

(ii) under Rule 504 of the Montana Rules of Evidence; or

(b) apply to a person's processing of personal data during the person's personal or household activities.

(6) Personal data processed by a controller pursuant to this section may be processed to the extent that the 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. The controller or processor must, when applicable, consider the nature and purpose of the collection, use, or retention of the personal data collected, used, or retained pursuant to subsection (2). The personal data must be subject to reasonable administrative, technical, and physical measures to protect the confidentiality, integrity, and accessibility of the personal data 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 demonstrating that the processing qualifies for the exemption and complies with the requirements in subsection (6).

(8) Processing personal data for the purposes expressly identified in this section may not solely make a legal entity a controller with respect to the processing.