In Montana I've been working on privacy legistlation with my friend and State Representative Daniel Zolnikov for almost 10 years now. Initially we tried to pass too much (something like 40 pages in a state where most bills are 1-2), then Dan decided to break out individual ideas from the initial bill and pass smaller chunks or create specific bills targeting abuses.

The Montana state constitution provides citizens with a right to privacy but attempting to enumerate it in law is an uphill battle. At the last legislative session the national Charter public policy guy flew in and spoke against the bill saying it would be an incredible burden on his company to allow customers the right to privacy (conveniently ignoring they're up to the task for collecting and storing DNS, usage history, a multi-billion dollar company etc.). They were able to spread enough FUD to get the bill killed.

Corporations are stifling privacy at the national level and willing to spend the money quashing attempts by the states to take it back. Privacy will be a hard-fought battle most likely won with technology and user choices vs policy.