Illinois General Assembly - Full Text of HB4653
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Full Text of HB4653  102nd General Assembly

HB4653 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4653

 

Introduced 1/21/2022, by Rep. Thaddeus Jones

 

SYNOPSIS AS INTRODUCED:
 
New Act
5 ILCS 140/7.5

    Creates the Insurance Data Security Law. Sets forth provisions concerning an information security program, investigations of cybersecurity events, and notifications of cybersecurity events. Provides that the Director of Insurance shall have power to examine and investigate into the affairs of any licensee to determine whether the licensee has been or is engaged in any conduct in violation of the Act. Provides that whenever the Director has reason to believe that a licensee has been or is engaged in conduct in the State which violates the Act, the Director may take action that is necessary or appropriate to enforce the provisions of the Act. Provides that any documents, materials, or other information in the control or possession of the Department of Insurance that are furnished by a licensee or an employee or agent acting on behalf of a licensee or that are obtained by the Director in an investigation or examination shall be confidential by law and privileged, shall not be subject to the Freedom of Information Act, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action. Sets forth provisions concerning exceptions, penalties, and severability. Provides that the Department may adopt rules necessary to carry out the provisions of the Act. Defines terms. Makes a conforming change in the Freedom of Information Act. Effective January 1, 2023.


LRB102 21459 BMS 30576 b

 

 

A BILL FOR

 

HB4653LRB102 21459 BMS 30576 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Insurance Data Security Law.
 
6    Section 2. Purpose and intent.
7    (a) The purpose and intent of this Act is to establish
8standards for data security and standards for the
9investigation of and notification to the Director of a
10cybersecurity event applicable to licensees.
11    (b) This Act shall not be construed to create or imply a
12private cause of action for a violation of its provisions nor
13shall it be construed to curtail a private cause of action
14which would otherwise exist in the absence of this Act.
 
15    Section 5. Definitions. As used in this Act:
16    "Authorized individual" means an individual known to and
17screened by the licensee and determined to be necessary and
18appropriate to have access to the nonpublic information held
19by the licensee and its information systems.
20    "Consumer" means an individual, including, but not limited
21to, an applicant, policyholder, insured, beneficiary,
22claimant, or certificate holder who is a resident of this

 

 

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1State and whose nonpublic information is in a licensee's
2possession, custody, or control.
3    "Cybersecurity event" means an event resulting in
4unauthorized access to, disruption, or misuse of an
5information system or information stored on such information
6system. "Cybersecurity event" does not include the
7unauthorized acquisition of encrypted nonpublic information if
8the encryption, process, or key is not also acquired,
9released, or used without authorization. "Cybersecurity event"
10does not include an event with regard to which the licensee has
11determined that the nonpublic information accessed by an
12unauthorized person has not been used or released and has been
13returned or destroyed.
14    "Department" means the Department of Insurance.
15    "Director" means the Director of Insurance.
16    "Encrypted" means the transformation of data into a form
17which results in a low probability of assigning meaning
18without the use of a protective process or key.
19    "Information security program" means the administrative,
20technical, and physical safeguards that a licensee uses to
21access, collect, distribute, process, protect, store, use,
22transmit, dispose of, or otherwise handle nonpublic
23information.
24    "Information system" means a discrete set of electronic
25information resources organized for the collection,
26processing, maintenance, use, sharing, dissemination, or

 

 

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1disposition of electronic information, as well as any
2specialized system such as industrial and process controls
3systems, telephone switching and private branch exchange
4systems, and environmental control systems.
5    "Licensee" means any person licensed, authorized to
6operate, or registered, or required to be licensed,
7authorized, or registered pursuant to the insurance laws of
8this State. "Licensee" does not include a purchasing group or
9a risk retention group chartered and licensed in a state other
10than this State or a licensee that is acting as an assuming
11insurer that is domiciled in another state or jurisdiction.
12    "Multi-factor authentication" means authentication
13through verification of at least 2 of the following types of
14authentication factors:
15        (1) knowledge factors, including a password;
16        (2) possession factors, including a token or text
17    message on a mobile phone; or
18        (3) inherence factors, including a biometric
19    characteristic.
20    "Nonpublic information" means information that is not
21publicly available information and that is:
22        (1) business-related information of a licensee the
23    tampering with which, or unauthorized disclosure, access,
24    or use of which, would cause a material adverse impact to
25    the business, operations, or security of the licensee;
26        (2) any information concerning a consumer which

 

 

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1    because of name, number, personal mark, or other
2    identifier can be used to identify such consumer, in
3    combination with any one or more of the following data
4    elements:
5            (A) social security number;
6            (B) driver's license number or nondriver
7        identification card number;
8            (C) account number, credit card number, or debit
9        card number;
10            (D) any security code, access code, or password
11        that would permit access to a consumer's financial
12        account; or
13            (E) biometric records; or
14        (3) any information or data, except age or gender, in
15    any form or medium created by or derived from a health care
16    provider or a consumer and that relates to:
17            (A) the past, present, or future physical, mental,
18        or behavioral health or condition of any consumer or a
19        member of the consumer's family;
20            (B) the provision of health care to any consumer;
21        or
22            (C) payment for the provision of health care to
23        any consumer.
24    "Person" means any individual or any nongovernmental
25entity, including, but not limited to, any nongovernmental
26partnership, corporation, branch, agency, or association.

 

 

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1    "Publicly available information" means any information
2that a licensee has a reasonable basis to believe is lawfully
3made available to the general public from federal, State, or
4local government records; widely distributed media; or
5disclosures to the general public that are required to be made
6by federal, State, or local law. "Publicly available
7information" includes information that a consumer may direct
8not to be made available to the general public, but that the
9consumer has not directed not be made available.
10    "Risk assessment" means the risk assessment that each
11licensee is required to conduct under subsection (c) of
12Section 10.
13    "Third-party service provider" means a person, not
14otherwise defined as a licensee, that contracts with a
15licensee to maintain, process, store, or otherwise is
16permitted access to nonpublic information through its
17provision of services to the licensee.
 
18    Section 10. Information security program.
19    (a) Commensurate with the size and complexity of the
20licensee, the nature and scope of the licensee's activities,
21including its use of third-party service providers, and the
22sensitivity of the nonpublic information used by the licensee
23or in the licensee's possession, custody, or control, each
24licensee shall develop, implement, and maintain a
25comprehensive written information security program based on

 

 

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1the licensee's risk assessment and that contains
2administrative, technical, and physical safeguards for the
3protection of nonpublic information and the licensee's
4information system.
5    (b) A licensee's information security program shall be
6designed to:
7        (1) protect the security and confidentiality of
8    nonpublic information and the security of the information
9    system;
10        (2) protect against any threats or hazards to the
11    security or integrity of nonpublic information and the
12    information system;
13        (3) protect against unauthorized access to or use of
14    nonpublic information;
15        (4) minimize the likelihood of harm to any consumer;
16    and
17        (5) define and periodically reevaluate a schedule for
18    retention of nonpublic information and a mechanism for its
19    destruction when no longer needed.
20    (c) A licensee shall:
21        (1) designate one or more employees, an affiliate, or
22    an outside vendor designated to act on behalf of the
23    licensee who is responsible for the information security
24    program;
25        (2) identify reasonably foreseeable internal or
26    external threats that could result in unauthorized access,

 

 

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1    transmission, disclosure, misuse, alteration, or
2    destruction of nonpublic information, including the
3    security of information systems and nonpublic information
4    that are accessible to or held by third-party service
5    providers;
6        (3) assess the likelihood and potential damage of
7    these threats, taking into consideration the sensitivity
8    of the nonpublic information;
9        (4) assess the sufficiency of policies, procedures,
10    information systems, and other safeguards in place to
11    manage these threats, including consideration of threats
12    in each relevant area of the licensee's operations,
13    including:
14            (A) employee training and management;
15            (B) information systems, including network and
16        software design, as well as information
17        classification, governance, processing, storage,
18        transmission, and disposal; and
19            (C) detecting, preventing, and responding to
20        attacks, intrusions, or other systems failures; and
21        (5) implement information safeguards to manage the
22    threats identified in its ongoing assessment, and, no less
23    than annually, assess the effectiveness of the safeguards'
24    key controls, systems, and procedures.
25    (d) Based on its risk assessment, the licensee shall:
26        (1) design its information security program to

 

 

HB4653- 8 -LRB102 21459 BMS 30576 b

1    mitigate the identified risks, commensurate with the size
2    and complexity of the licensee's activities, including its
3    use of third-party service providers, and the sensitivity
4    of the nonpublic information used by the licensee or in
5    the licensee's possession, custody, or control;
6        (2) select and implement appropriate security measures
7    from the following:
8            (A) place access controls on information systems,
9        including controls to authenticate and permit access
10        only to authorized individuals to protect against the
11        unauthorized acquisition of nonpublic information;
12            (B) identify and manage the data, personnel,
13        devices, systems, and facilities that enable the
14        organization to achieve business purposes in
15        accordance with their relative importance to business
16        objectives and the organization's risk strategy;
17            (C) restrict access at physical locations
18        containing nonpublic information only to authorized
19        individuals;
20            (D) protect, by encryption or other appropriate
21        means, all nonpublic information while being
22        transmitted over an external network and all nonpublic
23        information stored on a laptop computer or other
24        portable computing or storage device or media;
25            (E) adopt secure development practices for
26        in-house-developed applications utilized by the

 

 

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1        licensee and procedures for evaluating, assessing, or
2        testing the security of externally developed
3        applications utilized by the licensee;
4            (F) modify the information system in accordance
5        with the licensee's information security program;
6            (G) utilize effective controls, including
7        multifactor authentication procedures for any
8        individual accessing nonpublic information;
9            (H) regularly test and monitor systems and
10        procedures to detect actual and attempted attacks on
11        or intrusions into information systems;
12            (I) include audit trails within the information
13        security program designed to detect and respond to
14        cybersecurity events and designed to reconstruct
15        material financial transactions sufficient to support
16        normal operations and obligations of the licensee;
17            (J) implement measures to protect against
18        destruction, loss, or damage of nonpublic information
19        due to environmental hazards, including fire and water
20        damage, other catastrophes, or technological failures;
21        and
22            (K) develop, implement, and maintain procedures
23        for the secure disposal of nonpublic information in
24        any format;
25        (3) include cybersecurity risks in the licensee's
26    enterprise risk management process;

 

 

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1        (4) stay informed regarding emerging threats or
2    vulnerabilities and utilize reasonable security measures
3    when sharing information relative to the character of the
4    sharing and the type of information shared; and
5        (5) provide its personnel with cybersecurity awareness
6    training that is updated as necessary to reflect risks
7    identified by the licensee in the risk assessment.
8    (e) If the licensee has a board of directors, the board or
9an appropriate committee of the board shall, at a minimum:
10        (1) require the licensee's executive management or its
11    delegates to develop, implement, and maintain the
12    licensee's information security program;
13        (2) require the licensee's executive management or its
14    delegates to report in writing, at least annually, the
15    following information:
16            (A) the overall status of the information security
17        program and the licensee's compliance with this Act;
18        and
19            (B) material matters related to the information
20        security program, addressing issues such as risk
21        assessment, risk management and control decisions,
22        third-party service provider arrangements, results of
23        testing, cybersecurity events or violations and
24        management's responses thereto, and recommendations
25        for changes in the information security program; and
26        (3) if executive management delegates any of its

 

 

HB4653- 11 -LRB102 21459 BMS 30576 b

1    responsibilities under this Section, it shall oversee the
2    development, implementation, and maintenance of the
3    licensee's information security program prepared by the
4    delegate and shall receive a report from the delegate
5    complying with the requirements of the report to the board
6    of directors.
7    (f) A licensee shall exercise due diligence in selecting
8its third-party service provider and a licensee shall require
9a third-party service provider to implement appropriate
10administrative, technical, and physical measures to protect
11and secure the information systems and nonpublic information
12that are accessible to or held by the third-party service
13provider.
14    (g) The licensee shall monitor, evaluate, and adjust, as
15appropriate, the information security program consistent with
16any relevant changes in technology, the sensitivity of its
17nonpublic information, internal or external threats to
18information, and the licensee's own changing business
19arrangements, including mergers and acquisitions, alliances
20and joint ventures, outsourcing arrangements, and changes to
21information systems.
22    (h) As part of its information security program, a
23licensee shall establish a written incident response plan
24designed to promptly respond to and recover from any
25cybersecurity event that compromises the confidentiality,
26integrity, or availability of nonpublic information in its

 

 

HB4653- 12 -LRB102 21459 BMS 30576 b

1possession, the licensee's information systems, or the
2continuing functionality of any aspect of the licensee's
3business or operations. The incident response plan shall
4address the following areas:
5        (1) the internal process for responding to a
6    cybersecurity event;
7        (2) the goals of the incident response plan;
8        (3) the definition of clear roles, responsibilities,
9    and levels of decision-making authority;
10        (4) external and internal communications and
11    information sharing;
12        (5) identification of requirements for the remediation
13    of any identified weaknesses in information systems and
14    associated controls;
15        (6) documentation and reporting regarding
16    cybersecurity events and related incident response
17    activities; and
18        (7) the evaluation and revision of the incident
19    response plan following a cybersecurity event, as
20    necessary.
21    (i) Annually, an insurer domiciled in this State shall
22submit to the Director a written statement by February 15
23certifying that the insurer is in compliance with the
24requirements set forth in this Section. Each insurer shall
25maintain for examination by the Department all records,
26schedules, and data supporting this certificate for a period

 

 

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1of 5 years. To the extent an insurer has identified areas,
2systems, or processes that require material improvement,
3updating, or redesign, the insurer shall document the
4identification and the remedial efforts planned and underway
5to address such areas, systems, or processes. The
6documentation of identified areas, systems, or processes must
7be available for inspection by the Director.
8    (j) Licensees shall comply with subsection (f) 2 years
9after the effective date of this Act, and shall comply with all
10other subsections of this Section one year after the effective
11date of this Act.
 
12    Section 15. Investigation of a cybersecurity event.
13    (a) If the licensee learns that a cybersecurity event has
14occurred or may have occurred, the licensee, or an outside
15vendor or service provider designated to act on behalf of the
16licensee, shall conduct a prompt investigation.
17    (b) During the investigation the licensee, or an outside
18vendor or service provider designated to act on behalf of the
19licensee, shall, at a minimum, comply with as many of the
20following as possible:
21        (1) determine whether a cybersecurity event has
22    occurred;
23        (2) assess the nature and scope of the cybersecurity
24    event;
25        (3) identify any nonpublic information that may have

 

 

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1    been involved in the cybersecurity event; and
2        (4) perform or oversee reasonable measures to restore
3    the security of the information systems compromised in the
4    cybersecurity event in order to prevent further
5    unauthorized acquisition, release, or use of nonpublic
6    information in the licensee's possession, custody, or
7    control.
8    (c) If the licensee learns that a cybersecurity event has
9occurred or may have occurred in a system maintained by a
10third-party service provider, the licensee will complete the
11steps listed in subsection (b) or confirm and document that
12the third-party service provider has completed those steps.
13    (d) The licensee shall maintain records concerning all
14cybersecurity events for a period of at least 5 years from the
15date of the cybersecurity event and shall produce those
16records upon demand of the Director.
 
17    Section 20. Notification of a cybersecurity event.
18    (a) A licensee shall notify the Director as promptly as
19possible but no later than 72 hours after a determination that
20a cybersecurity event has occurred when either of the
21following criteria has been met:
22        (1) this State is the licensee's state of domicile, in
23    the case of an insurer, or this State is the licensee's
24    home state, in the case of an insurance producer, as those
25    terms are defined in Article XXXI of the Illinois

 

 

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1    Insurance Code; or
2        (2) the licensee reasonably believes that the
3    nonpublic information involved is of 250 or more consumers
4    residing in this State and that is either of the
5    following:
6            (A) a cybersecurity event impacting the licensee
7        of which notice is required to be provided to any
8        government body, self-regulatory agency, or any other
9        supervisory body pursuant to any State or federal law;
10        or
11            (B) a cybersecurity event that has a reasonable
12        likelihood of materially harming:
13                (i) any consumer residing in this State; or
14                (ii) any material part of the normal
15            operations of the licensee.
16    (b) A licensee shall provide as much of the following
17information as possible:
18        (1) the date of the cybersecurity event;
19        (2) a description of how the information was exposed,
20    lost, stolen, or breached, including the specific roles
21    and responsibilities of third-party service providers, if
22    any;
23        (3) how the cybersecurity event was discovered;
24        (4) whether any lost, stolen, or breached information
25    has been recovered and if so, how it was recovered;
26        (5) the identity of the source of the cybersecurity

 

 

HB4653- 16 -LRB102 21459 BMS 30576 b

1    event;
2        (6) whether the licensee has filed a police report or
3    has notified any regulatory, government, or law
4    enforcement agencies and, if so, when such notification
5    was provided;
6        (7) a description of the specific types of information
7    acquired without authorization, including types of medical
8    information, types of financial information, or types of
9    information allowing identification of the consumer;
10        (8) the period during which the information system was
11    compromised by the cybersecurity event;
12        (9) the number of total consumers in this State
13    affected by the cybersecurity event; the licensee shall
14    provide the best estimate in the initial report to the
15    Director and update this estimate with each subsequent
16    report to the Director pursuant to this Section;
17        (10) the results of any internal review identifying a
18    lapse in either automated controls or internal procedures,
19    or confirming that all automated controls or internal
20    procedures were followed;
21        (11) a description of efforts being undertaken to
22    remediate the situation which permitted the cybersecurity
23    event to occur;
24        (12) a copy of the licensee's privacy policy and a
25    statement outlining the steps the licensee will take to
26    investigate and notify consumers affected by the

 

 

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1    cybersecurity event; and
2        (13) the name of a contact person who is both familiar
3    with the cybersecurity event and authorized to act for the
4    licensee.
5    The licensee shall provide the information in electronic
6form as directed by the Director. The licensee shall have a
7continuing obligation to update and supplement initial and
8subsequent notifications to the Director concerning the
9cybersecurity event.
10    (c) Licensees shall comply with the Personal Information
11Protection Act, as applicable, and provide a copy of the
12notice sent to consumers under that statute to the Director
13when a licensee is required to notify the Director under
14subsection (a).
15    (d) If a licensee becomes aware of a cybersecurity event
16in a system maintained by a third-party service provider, the
17licensee shall treat the event as it would under subsection
18(a). The computation of licensee's deadlines shall begin on
19the day after the third-party service provider notifies the
20licensee of the cybersecurity event or the licensee otherwise
21has actual knowledge of the cybersecurity event, whichever is
22sooner.
23    (e) Nothing in this Act shall prevent or abrogate an
24agreement between a licensee and another licensee, a
25third-party service provider, or any other party to fulfill
26any of the investigation requirements imposed under Section 15

 

 

HB4653- 18 -LRB102 21459 BMS 30576 b

1or notice requirements imposed under this Section.
2    (f) In the case of a cybersecurity event involving
3nonpublic information that is used by the licensee that is
4acting as an assuming insurer or in the possession, custody,
5or control of a licensee that is acting as an assuming insurer
6and that does not have a direct contractual relationship with
7the affected consumers, the assuming insurer shall notify its
8affected ceding insurers and the Director of its state of
9domicile within 72 hours after making the determination that a
10cybersecurity event has occurred.
11    In the case of a cybersecurity event involving nonpublic
12information that is in the possession, custody, or control of
13a third-party service provider of a licensee that is an
14assuming insurer, the assuming insurer shall notify its
15affected ceding insurers and the Director of its state of
16domicile within 72 hours after receiving notice from its
17third-party service provider that a cybersecurity event has
18occurred.
19    The ceding insurers that have a direct contractual
20relationship with affected consumers shall fulfill the
21consumer notification requirements imposed under the Personal
22Information Protection Act and any other notification
23requirements relating to a cybersecurity event imposed under
24this Section.
25    (g) In the case of a cybersecurity event involving
26nonpublic information that is in the possession, custody, or

 

 

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1control of a licensee that is an insurer or its third-party
2service provider and for which a consumer accessed the
3insurer's services through an independent insurance producer,
4the insurer shall notify the producers of record of all
5affected consumers as soon as practicable as directed by the
6Director. The insurer is excused from this obligation for
7those instances in which it does not have the current producer
8of record information for any individual consumer.
 
9    Section 25. Power of Director.
10    (a) The Director shall have power to examine and
11investigate into the affairs of any licensee to determine
12whether the licensee has been or is engaged in any conduct in
13violation of this Act. This power is in addition to the powers
14which the Director has under the Illinois Insurance Code,
15including Sections 132, 132.3, 132.4, 133, 401, 402, 403, and
16425 of the Illinois Insurance Code. Any investigation or
17examination shall be conducted pursuant to the Illinois
18Insurance Code, including Sections 132, 132.3, 132.4, 133,
19401, 402, 403, and 425 of the Illinois Insurance Code.
20    (b) Whenever the Director has reason to believe that a
21licensee has been or is engaged in conduct in this State which
22violates this Act, the Director may take action that is
23necessary or appropriate to enforce the provisions of this
24Act.
 

 

 

HB4653- 20 -LRB102 21459 BMS 30576 b

1    Section 30. Confidentiality.
2    (a) Any documents, materials, or other information in the
3control or possession of the Department that are furnished by
4a licensee or an employee or agent thereof acting on behalf of
5licensee pursuant to subsection (i) of Section 10, subsection
6(b) of Section 20, or that are obtained by the Director in an
7investigation or examination pursuant to Section 25 shall be
8confidential by law and privileged, shall not be subject to
9the Freedom of Information Act, shall not be subject to
10subpoena, and shall not be subject to discovery or admissible
11in evidence in any private civil action. However, the Director
12is authorized to use the documents, materials, or other
13information in the furtherance of any regulatory or legal
14action brought as a part of the Director's duties.
15    (b) Neither the Director nor any person who received
16documents, materials, or other information while acting under
17the authority of the Director shall be permitted or required
18to testify in any private civil action concerning any
19confidential documents, materials, or information subject to
20subsection (a).
21    (c) In order to assist in the performance of the
22Director's duties under this Act, the Director:
23        (1) may share documents, materials, or other
24    information, including the confidential and privileged
25    documents, materials, or information subject to subsection
26    (a), with other State, federal, and international

 

 

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1    regulatory agencies, with the National Association of
2    Insurance Directors and its affiliates or subsidiaries,
3    and with State, federal, and international law enforcement
4    authorities, if the recipient agrees in writing to
5    maintain the confidentiality and privileged status of the
6    document, material, or other information;
7        (2) may receive documents, materials, or information,
8    including otherwise confidential and privileged documents,
9    materials, or information, from the National Association
10    of Insurance Directors and its affiliates or subsidiaries
11    and from regulatory and law enforcement officials of other
12    foreign or domestic jurisdictions, and shall maintain as
13    confidential or privileged any document, material, or
14    information received with notice or the understanding that
15    it is confidential or privileged under the laws of the
16    jurisdiction that is the source of the document, material,
17    or information;
18        (3) may share documents, materials, or other
19    information subject to subsection (a), with a third-party
20    consultant or vendor if the consultant agrees in writing
21    to maintain the confidentiality and privileged status of
22    the document, material, or other information; and
23        (4) may enter into agreements governing sharing and
24    use of information consistent with this subsection.
25    (d) No waiver of any applicable privilege or claim of
26confidentiality in the documents, materials, or information

 

 

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1shall occur as a result of disclosure to the Director under
2this Section or as a result of sharing as authorized in
3subsection (c).
4    (e) Nothing in this Act shall prohibit the Director from
5releasing final, adjudicated actions that are open to public
6inspection pursuant to the Illinois Insurance Code to a
7database or other clearinghouse service maintained by the
8National Association of Insurance Directors and its affiliates
9or subsidiaries.
 
10    Section 35. Exceptions.
11    (a) The following exceptions shall apply to this Act:
12        (1) A licensee with fewer than 10 employees, including
13    any independent contractors, is exempt from Section 10.
14        (2) A licensee subject to the Health Insurance
15    Portability and Accountability Act that has established
16    and maintains an information security program pursuant to
17    such statutes, rules, regulations, procedures, or
18    guidelines established thereunder, shall be considered to
19    meet the requirements of Section 10 if the licensee is
20    compliant with the Health Insurance Portability and
21    Accountability Act and submits a written statement
22    certifying its compliance with the same.
23        (3) An employee, agent, representative, or designee of
24    a licensee that is also a licensee is exempt from Section
25    10 and need not develop its own information security

 

 

HB4653- 23 -LRB102 21459 BMS 30576 b

1    program to the extent that the employee, agent,
2    representative, or designee is covered by the information
3    security program of the other licensee.
4    (b) If a licensee ceases to qualify for an exception, the
5licensee shall comply with this Act within 180 days.
 
6    Section 40. Penalties. In the case of a violation of this
7Act, a licensee may be penalized in accordance with the
8provisions of the Illinois Insurance Code, including Section
9403A of the Illinois Insurance Code.
 
10    Section 45. Rules. The Department may, in accordance with
11the Illinois Administrative Procedure Act and Section 401 of
12the Illinois Insurance Code, adopt such rules as shall be
13necessary to carry out the provisions of this Act.
 
14    Section 50. Severability. If any provision of this Act or
15its application to any person or circumstance is held invalid,
16the invalidity of that provision or application does not
17affect other provisions or applications of this Act that can
18be given effect without the invalid provision or application.
 
19    Section 105. The Freedom of Information Act is amended by
20changing Section 7.5 as follows:
 
21    (5 ILCS 140/7.5)

 

 

HB4653- 24 -LRB102 21459 BMS 30576 b

1    Sec. 7.5. Statutory exemptions. To the extent provided for
2by the statutes referenced below, the following shall be
3exempt from inspection and copying:
4        (a) All information determined to be confidential
5    under Section 4002 of the Technology Advancement and
6    Development Act.
7        (b) Library circulation and order records identifying
8    library users with specific materials under the Library
9    Records Confidentiality Act.
10        (c) Applications, related documents, and medical
11    records received by the Experimental Organ Transplantation
12    Procedures Board and any and all documents or other
13    records prepared by the Experimental Organ Transplantation
14    Procedures Board or its staff relating to applications it
15    has received.
16        (d) Information and records held by the Department of
17    Public Health and its authorized representatives relating
18    to known or suspected cases of sexually transmissible
19    disease or any information the disclosure of which is
20    restricted under the Illinois Sexually Transmissible
21    Disease Control Act.
22        (e) Information the disclosure of which is exempted
23    under Section 30 of the Radon Industry Licensing Act.
24        (f) Firm performance evaluations under Section 55 of
25    the Architectural, Engineering, and Land Surveying
26    Qualifications Based Selection Act.

 

 

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1        (g) Information the disclosure of which is restricted
2    and exempted under Section 50 of the Illinois Prepaid
3    Tuition Act.
4        (h) Information the disclosure of which is exempted
5    under the State Officials and Employees Ethics Act, and
6    records of any lawfully created State or local inspector
7    general's office that would be exempt if created or
8    obtained by an Executive Inspector General's office under
9    that Act.
10        (i) Information contained in a local emergency energy
11    plan submitted to a municipality in accordance with a
12    local emergency energy plan ordinance that is adopted
13    under Section 11-21.5-5 of the Illinois Municipal Code.
14        (j) Information and data concerning the distribution
15    of surcharge moneys collected and remitted by carriers
16    under the Emergency Telephone System Act.
17        (k) Law enforcement officer identification information
18    or driver identification information compiled by a law
19    enforcement agency or the Department of Transportation
20    under Section 11-212 of the Illinois Vehicle Code.
21        (l) Records and information provided to a residential
22    health care facility resident sexual assault and death
23    review team or the Executive Council under the Abuse
24    Prevention Review Team Act.
25        (m) Information provided to the predatory lending
26    database created pursuant to Article 3 of the Residential

 

 

HB4653- 26 -LRB102 21459 BMS 30576 b

1    Real Property Disclosure Act, except to the extent
2    authorized under that Article.
3        (n) Defense budgets and petitions for certification of
4    compensation and expenses for court appointed trial
5    counsel as provided under Sections 10 and 15 of the
6    Capital Crimes Litigation Act. This subsection (n) shall
7    apply until the conclusion of the trial of the case, even
8    if the prosecution chooses not to pursue the death penalty
9    prior to trial or sentencing.
10        (o) Information that is prohibited from being
11    disclosed under Section 4 of the Illinois Health and
12    Hazardous Substances Registry Act.
13        (p) Security portions of system safety program plans,
14    investigation reports, surveys, schedules, lists, data, or
15    information compiled, collected, or prepared by or for the
16    Department of Transportation under Sections 2705-300 and
17    2705-616 of the Department of Transportation Law of the
18    Civil Administrative Code of Illinois, the Regional
19    Transportation Authority under Section 2.11 of the
20    Regional Transportation Authority Act, or the St. Clair
21    County Transit District under the Bi-State Transit Safety
22    Act.
23        (q) Information prohibited from being disclosed by the
24    Personnel Record Review Act.
25        (r) Information prohibited from being disclosed by the
26    Illinois School Student Records Act.

 

 

HB4653- 27 -LRB102 21459 BMS 30576 b

1        (s) Information the disclosure of which is restricted
2    under Section 5-108 of the Public Utilities Act.
3        (t) All identified or deidentified health information
4    in the form of health data or medical records contained
5    in, stored in, submitted to, transferred by, or released
6    from the Illinois Health Information Exchange, and
7    identified or deidentified health information in the form
8    of health data and medical records of the Illinois Health
9    Information Exchange in the possession of the Illinois
10    Health Information Exchange Office due to its
11    administration of the Illinois Health Information
12    Exchange. The terms "identified" and "deidentified" shall
13    be given the same meaning as in the Health Insurance
14    Portability and Accountability Act of 1996, Public Law
15    104-191, or any subsequent amendments thereto, and any
16    regulations promulgated thereunder.
17        (u) Records and information provided to an independent
18    team of experts under the Developmental Disability and
19    Mental Health Safety Act (also known as Brian's Law).
20        (v) Names and information of people who have applied
21    for or received Firearm Owner's Identification Cards under
22    the Firearm Owners Identification Card Act or applied for
23    or received a concealed carry license under the Firearm
24    Concealed Carry Act, unless otherwise authorized by the
25    Firearm Concealed Carry Act; and databases under the
26    Firearm Concealed Carry Act, records of the Concealed

 

 

HB4653- 28 -LRB102 21459 BMS 30576 b

1    Carry Licensing Review Board under the Firearm Concealed
2    Carry Act, and law enforcement agency objections under the
3    Firearm Concealed Carry Act.
4        (v-5) Records of the Firearm Owner's Identification
5    Card Review Board that are exempted from disclosure under
6    Section 10 of the Firearm Owners Identification Card Act.
7        (w) Personally identifiable information which is
8    exempted from disclosure under subsection (g) of Section
9    19.1 of the Toll Highway Act.
10        (x) Information which is exempted from disclosure
11    under Section 5-1014.3 of the Counties Code or Section
12    8-11-21 of the Illinois Municipal Code.
13        (y) Confidential information under the Adult
14    Protective Services Act and its predecessor enabling
15    statute, the Elder Abuse and Neglect Act, including
16    information about the identity and administrative finding
17    against any caregiver of a verified and substantiated
18    decision of abuse, neglect, or financial exploitation of
19    an eligible adult maintained in the Registry established
20    under Section 7.5 of the Adult Protective Services Act.
21        (z) Records and information provided to a fatality
22    review team or the Illinois Fatality Review Team Advisory
23    Council under Section 15 of the Adult Protective Services
24    Act.
25        (aa) Information which is exempted from disclosure
26    under Section 2.37 of the Wildlife Code.

 

 

HB4653- 29 -LRB102 21459 BMS 30576 b

1        (bb) Information which is or was prohibited from
2    disclosure by the Juvenile Court Act of 1987.
3        (cc) Recordings made under the Law Enforcement
4    Officer-Worn Body Camera Act, except to the extent
5    authorized under that Act.
6        (dd) Information that is prohibited from being
7    disclosed under Section 45 of the Condominium and Common
8    Interest Community Ombudsperson Act.
9        (ee) Information that is exempted from disclosure
10    under Section 30.1 of the Pharmacy Practice Act.
11        (ff) Information that is exempted from disclosure
12    under the Revised Uniform Unclaimed Property Act.
13        (gg) Information that is prohibited from being
14    disclosed under Section 7-603.5 of the Illinois Vehicle
15    Code.
16        (hh) Records that are exempt from disclosure under
17    Section 1A-16.7 of the Election Code.
18        (ii) Information which is exempted from disclosure
19    under Section 2505-800 of the Department of Revenue Law of
20    the Civil Administrative Code of Illinois.
21        (jj) Information and reports that are required to be
22    submitted to the Department of Labor by registering day
23    and temporary labor service agencies but are exempt from
24    disclosure under subsection (a-1) of Section 45 of the Day
25    and Temporary Labor Services Act.
26        (kk) Information prohibited from disclosure under the

 

 

HB4653- 30 -LRB102 21459 BMS 30576 b

1    Seizure and Forfeiture Reporting Act.
2        (ll) Information the disclosure of which is restricted
3    and exempted under Section 5-30.8 of the Illinois Public
4    Aid Code.
5        (mm) Records that are exempt from disclosure under
6    Section 4.2 of the Crime Victims Compensation Act.
7        (nn) Information that is exempt from disclosure under
8    Section 70 of the Higher Education Student Assistance Act.
9        (oo) Communications, notes, records, and reports
10    arising out of a peer support counseling session
11    prohibited from disclosure under the First Responders
12    Suicide Prevention Act.
13        (pp) Names and all identifying information relating to
14    an employee of an emergency services provider or law
15    enforcement agency under the First Responders Suicide
16    Prevention Act.
17        (qq) Information and records held by the Department of
18    Public Health and its authorized representatives collected
19    under the Reproductive Health Act.
20        (rr) Information that is exempt from disclosure under
21    the Cannabis Regulation and Tax Act.
22        (ss) Data reported by an employer to the Department of
23    Human Rights pursuant to Section 2-108 of the Illinois
24    Human Rights Act.
25        (tt) Recordings made under the Children's Advocacy
26    Center Act, except to the extent authorized under that

 

 

HB4653- 31 -LRB102 21459 BMS 30576 b

1    Act.
2        (uu) Information that is exempt from disclosure under
3    Section 50 of the Sexual Assault Evidence Submission Act.
4        (vv) Information that is exempt from disclosure under
5    subsections (f) and (j) of Section 5-36 of the Illinois
6    Public Aid Code.
7        (ww) Information that is exempt from disclosure under
8    Section 16.8 of the State Treasurer Act.
9        (xx) Information that is exempt from disclosure or
10    information that shall not be made public under the
11    Illinois Insurance Code.
12        (yy) Information prohibited from being disclosed under
13    the Illinois Educational Labor Relations Act.
14        (zz) Information prohibited from being disclosed under
15    the Illinois Public Labor Relations Act.
16        (aaa) Information prohibited from being disclosed
17    under Section 1-167 of the Illinois Pension Code.
18        (bbb) (ccc) Information that is prohibited from
19    disclosure by the Illinois Police Training Act and the
20    Illinois State Police Act.
21        (ccc) (ddd) Records exempt from disclosure under
22    Section 2605-304 of the Illinois Department of State
23    Police Law of the Civil Administrative Code of Illinois.
24        (ddd) (bbb) Information prohibited from being
25    disclosed under Section 35 of the Address Confidentiality
26    for Victims of Domestic Violence, Sexual Assault, Human

 

 

HB4653- 32 -LRB102 21459 BMS 30576 b

1    Trafficking, or Stalking Act.
2        (eee) (ddd) Information prohibited from being
3    disclosed under subsection (b) of Section 75 of the
4    Domestic Violence Fatality Review Act.
5        (fff) Information exempt from disclosure under Section
6    30 of the Insurance Data Security Law.
7(Source: P.A. 101-13, eff. 6-12-19; 101-27, eff. 6-25-19;
8101-81, eff. 7-12-19; 101-221, eff. 1-1-20; 101-236, eff.
91-1-20; 101-375, eff. 8-16-19; 101-377, eff. 8-16-19; 101-452,
10eff. 1-1-20; 101-466, eff. 1-1-20; 101-600, eff. 12-6-19;
11101-620, eff 12-20-19; 101-649, eff. 7-7-20; 101-652, eff.
121-1-22; 101-656, eff. 3-23-21; 102-36, eff. 6-25-21; 102-237,
13eff. 1-1-22; 102-292, eff. 1-1-22; 102-520, eff. 8-20-21;
14102-559, eff. 8-20-21; revised 10-5-21.)
 
15    Section 999. Effective date. This Act takes effect January
161, 2023.