Rep. Daniel J. Burke

Filed: 3/8/2011

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 3025

2    AMENDMENT NO. ______. Amend House Bill 3025 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Personal Information Protection Act is
5amended by changing Sections 5, 10, and 12 and by adding
6Section 40 as follows:
 
7    (815 ILCS 530/5)
8    Sec. 5. Definitions. In this Act:
9    "Data Collector" may include, but is not limited to,
10government agencies, public and private universities,
11privately and publicly held corporations, financial
12institutions, retail operators, and any other entity that, for
13any purpose, handles, collects, disseminates, or otherwise
14deals with nonpublic personal information.
15    "Breach of the security of the system data" or "breach"
16means unauthorized acquisition or use of computerized data that

 

 

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1compromises the security, confidentiality, or integrity of
2personal information maintained by the data collector. "Breach
3of the security of the system data" does not include good faith
4acquisition of personal information by an employee or agent of
5the data collector for a legitimate purpose of the data
6collector, provided that the personal information is not used
7for a purpose unrelated to the data collector's business or
8subject to further unauthorized disclosure.
9    "Personal information" means an individual's first name or
10first initial and last name in combination with any one or more
11of the following data elements, when either the name or the
12data elements are not encrypted or redacted:
13        (1) Social Security number.
14        (2) Driver's license number or State identification
15    card number.
16        (3) Account number or credit or debit card number, or
17    an account number or credit card number in combination with
18    any required security code, access code, or password that
19    would permit access to an individual's financial account.
20"Personal information" does not include publicly available
21information that is lawfully made available to the general
22public from federal, State, or local government records.
23(Source: P.A. 94-36, eff. 1-1-06.)
 
24    (815 ILCS 530/10)
25    Sec. 10. Notice of Breach.

 

 

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1    (a) Any data collector that owns or licenses personal
2information concerning an Illinois resident shall notify the
3resident at no charge that there has been a breach of the
4security of the system data following discovery or notification
5of the breach. The disclosure notification shall be made in the
6most expedient time possible and without unreasonable delay,
7consistent with any measures necessary to determine the scope
8of the breach and restore the reasonable integrity, security,
9and confidentiality of the data system. The disclosure
10notification to an Illinois resident shall include, but need
11not be limited to, information concerning (i) how the resident
12may request a security freeze pursuant to Section 2MM of the
13Consumer Fraud and Deceptive Business Practices Act and the
14necessary information that must be provided when requesting the
15security freeze, and (ii) any fees that must be paid to a
16consumer reporting agency in connection with a request for a
17security freeze. The notification shall not, however, include
18information concerning the number of Illinois residents
19affected by the breach.
20    In addition, a data collector that owns or licenses such
21personal information shall notify the Attorney General of the
22breach. The notification to the Attorney General shall include,
23but need not be limited to, information concerning (i) the
24nature of the breach, (ii) the number of Illinois residents
25affected by the breach at the time of notification, and (iii)
26any steps the data collector has taken or plans to take

 

 

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1relating to the breach.
2    (b) Any data collector that maintains or stores, but does
3not own or license, computerized data that includes personal
4information that the data collector does not own or license
5shall notify the owner or licensee of the information of any
6breach of the security of the data immediately following
7discovery, if the personal information was, or is reasonably
8believed to have been, acquired by an unauthorized person. In
9addition to providing such notification to the owner or
10licensee, the data collector shall cooperate with the owner or
11licensee in matters relating to the breach. That cooperation
12shall include, but need not be limited to, (i) informing the
13owner or licensee of the breach, including giving notice of the
14date or approximate date of the breach and the nature of the
15breach, and (ii) informing the owner or licensee of any steps
16the data collector has taken or plans to take relating to the
17breach. The data collector's cooperation shall not, however, be
18deemed to require either the disclosure of confidential
19business information or trade secrets or the notification of an
20Illinois resident who may have been affected by the breach.
21    (b-5) The notification to an Illinois resident required by
22subsection (a) of this Section may be delayed if an appropriate
23law enforcement agency determines that notification will
24interfere with a criminal investigation and provides the data
25collector with a written request for the delay. However, the
26data collector must notify the Illinois resident as soon as

 

 

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1notification will no longer interfere with the investigation.
2    (c) For purposes of this Section, notice to consumers may
3be provided by one of the following methods:
4        (1) written notice;
5        (2) electronic notice, if the notice provided is
6    consistent with the provisions regarding electronic
7    records and signatures for notices legally required to be
8    in writing as set forth in Section 7001 of Title 15 of the
9    United States Code; or
10        (3) substitute notice, if the data collector
11    demonstrates that the cost of providing notice would exceed
12    $250,000 or that the affected class of subject persons to
13    be notified exceeds 500,000, or the data collector does not
14    have sufficient contact information. Substitute notice
15    shall consist of all of the following: (i) email notice if
16    the data collector has an email address for the subject
17    persons; (ii) conspicuous posting of the notice on the data
18    collector's web site page if the data collector maintains
19    one; and (iii) notification to major statewide media.
20    (d) Notwithstanding subsection (c), a data collector that
21maintains its own notification procedures as part of an
22information security policy for the treatment of personal
23information and is otherwise consistent with the timing
24requirements of this Act, shall be deemed in compliance with
25the notification requirements of this Section if the data
26collector notifies subject persons in accordance with its

 

 

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1policies in the event of a breach of the security of the system
2data.
3(Source: P.A. 94-36, eff. 1-1-06; 94-947, eff. 6-27-06.)
 
4    (815 ILCS 530/12)
5    Sec. 12. Notice of breach; State agency.
6    (a) Any State agency that collects personal information
7concerning an Illinois resident shall notify the resident at no
8charge that there has been a breach of the security of the
9system data or written material following discovery or
10notification of the breach. The disclosure notification shall
11be made in the most expedient time possible and without
12unreasonable delay, consistent with any measures necessary to
13determine the scope of the breach and restore the reasonable
14integrity, security, and confidentiality of the data system.
15The disclosure notification to an Illinois resident shall
16include, but need not be limited to, information concerning (i)
17how the resident may request a security freeze pursuant to
18Section 2MM of the Consumer Fraud and Deceptive Business
19Practices Act and the necessary information that must be
20provided when requesting the security freeze, and (ii) any fees
21that must be paid to a consumer reporting agency in connection
22with a request for a security freeze. The notification to an
23Illinois resident shall not, however, include information
24concerning the number of Illinois residents affected by the
25breach.

 

 

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1    (b) For purposes of this Section, notice to residents may
2be provided by one of the following methods:
3        (1) written notice;
4        (2) electronic notice, if the notice provided is
5    consistent with the provisions regarding electronic
6    records and signatures for notices legally required to be
7    in writing as set forth in Section 7001 of Title 15 of the
8    United States Code; or
9        (3) substitute notice, if the State agency
10    demonstrates that the cost of providing notice would exceed
11    $250,000 or that the affected class of subject persons to
12    be notified exceeds 500,000, or the State agency does not
13    have sufficient contact information. Substitute notice
14    shall consist of all of the following: (i) email notice if
15    the State agency has an email address for the subject
16    persons; (ii) conspicuous posting of the notice on the
17    State agency's web site page if the State agency maintains
18    one; and (iii) notification to major statewide media.
19    (c) Notwithstanding subsection (b), a State agency that
20maintains its own notification procedures as part of an
21information security policy for the treatment of personal
22information and is otherwise consistent with the timing
23requirements of this Act shall be deemed in compliance with the
24notification requirements of this Section if the State agency
25notifies subject persons in accordance with its policies in the
26event of a breach of the security of the system data or written

 

 

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1material.
2    (d) If a State agency is required to notify more than 1,000
3persons of a breach of security pursuant to this Section, the
4State agency shall also notify, without unreasonable delay, all
5consumer reporting agencies that compile and maintain files on
6consumers on a nationwide basis, as defined by 15 U.S.C.
7Section 1681a(p), of the timing, distribution, and content of
8the notices. Nothing in this subsection (d) shall be construed
9to require the State agency to provide to the consumer
10reporting agency the names or other personal identifying
11information of breach notice recipients.
12(Source: P.A. 94-947, eff. 6-27-06.)
 
13    (815 ILCS 530/40 new)
14    Sec. 40. Disposal of materials containing personal
15information; Attorney General.
16    (a) In this Section, "person" means: a natural person; a
17corporation, partnership, association, or other legal entity;
18a unit of local government or any agency, department, division,
19bureau, board, commission, or committee thereof; or the State
20of Illinois or any constitutional officer, agency, department,
21division, bureau, board, commission, or committee thereof.
22    (b) When disposing of materials containing personal
23information, a person must meet the following minimum standards
24for proper disposal of such materials:
25        (1) Paper documents containing personal information

 

 

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1    must be either redacted, burned, pulverized, or shredded so
2    that personal information cannot practicably be read or
3    reconstructed.
4        (2) Electronic media and other non-paper media
5    containing personal information must be destroyed or
6    erased so that personal information cannot practicably be
7    read or reconstructed.
8    (c) Any person disposing of materials containing personal
9information may contract with a third party to dispose of such
10materials in accordance with this Section. Any third party that
11contracts with a person to dispose of materials containing
12personal information must implement and monitor compliance
13with policies and procedures that prohibit unauthorized access
14to or acquisition of or use of personal information during the
15collection, transportation, and disposal of materials
16containing personal information.
17    (d) Any person who violates this Section is subject to a
18civil penalty of not more than $100 for each individual with
19respect to whom personal information is disposed of in
20violation of this Section. A civil penalty may not, however,
21exceed $50,000 for each instance of improper disposal of
22materials containing personal information. The Attorney
23General may impose a civil penalty after notice to the person
24accused of violating this Section and an opportunity for that
25person to be heard in the matter. The Attorney General may file
26a civil action in the circuit court to recover any penalty

 

 

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1imposed under this Section.
2    (e) In addition to the authority to impose a civil penalty
3under subsection (d), the Attorney General may bring an action
4in the circuit court to remedy a violation of this Section,
5seeking any appropriate relief.".