Illinois General Assembly - Full Text of SB1833
Illinois General Assembly

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Full Text of SB1833  99th General Assembly




State of Illinois
2015 and 2016


Introduced 2/20/2015, by Sen. Daniel Biss


815 ILCS 530/5
815 ILCS 530/10
815 ILCS 530/45 new
815 ILCS 530/50 new

    Amends the Personal Information Protection Act. Expands the scope of information to be protected to include medical, health insurance, biometric, consumer marketing, and geolocation information. Requires notice of breaches of security to be provided to the Attorney General. Requires privacy policies to be posted.

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SB1833LRB099 09064 JLS 31312 b

1    AN ACT concerning business.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Personal Information Protection Act is
5amended by changing Sections 5 and 10 and by adding Sections
645, and 50 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 of computerized data that
17compromises the security, confidentiality, or integrity of
18personal information maintained by the data collector. "Breach
19of the security of the system data" does not include good faith
20acquisition of personal information by an employee or agent of
21the data collector for a legitimate purpose of the data
22collector, provided that the personal information is not used
23for a purpose unrelated to the data collector's business or



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1subject to further unauthorized disclosure.
2    "Consumer marketing information" means information related
3to a consumer's online browsing history, online search history,
4or purchasing history.
5    "Geolocation information" means information generated or
6derived from the operation or use of an electronic
7communications device that is sufficient to identify the street
8name and name of the city or town in which the device is
9located. "Geolocation information" does not include the
10contents of an electronic communication.
11    "Health insurance information" means an individual's
12health insurance policy number or subscriber identification
13number, any unique identifier used by a health insurer to
14identify the individual, or any information in an individual's
15health insurance application and claims history, including any
16appeals records.
17    "Medical information" means any information regarding an
18individual's medical history, mental or physical condition, or
19medical treatment or diagnosis by a healthcare professional,
20including health information provided to a website or mobile
22    "Personal information" means either of the following:
23        (1) an individual's first name or first initial and
24    last name in combination with any one or more of the
25    following data elements, when either the name or the data
26    elements are not encrypted or redacted or are encrypted or



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1    redacted but the keys to unencrypt or unredact or otherwise
2    read the name or data elements have been obtained through
3    the breach of security:
4            (A) (1) Social Security number.
5            (B) (2) Driver's license number or State
6        identification card number.
7            (C) (3) Account number or credit or debit card
8        number, or an account number or credit card number in
9        combination with any required security code, access
10        code, or password that would permit access to an
11        individual's financial account.
12            (D) Medical information.
13            (E) Health insurance information.
14            (F) Unique biometric data, such as a fingerprint,
15        retina or iris image, or other unique physical
16        representation or digital representation of biometric
17        data.
18            (G) Geolocation information.
19            (H) Consumer marketing information.
20            (I) Any 2 of the following data elements:
21                (i) home address, telephone number, or email
22            address;
23                (ii) mother's maiden name;
24                (iii) month, day, and year of birth.
25        (2) user name or email address, in combination with a
26    password or security question and answer that would permit



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1    access to an online account, when either the user name or
2    email address or password or security question and answer
3    are not encrypted or redacted or are encrypted or redacted
4    but the keys to unencrypt or unredact or otherwise read the
5    data elements have been obtained through the breach of
6    security.
7    "Personal information" does not include publicly available
8information that is lawfully made available to the general
9public from federal, State, or local government records.
10(Source: P.A. 97-483, eff. 1-1-12.)
11    (815 ILCS 530/10)
12    Sec. 10. Notice of Breach.
13    (a) Any data collector that owns or licenses personal
14information concerning an Illinois resident shall notify the
15resident at no charge that there has been a breach of the
16security of the system data following discovery or notification
17of the breach. The disclosure notification shall be made in the
18most expedient time possible and without unreasonable delay,
19consistent with any measures necessary to determine the scope
20of the breach and restore the reasonable integrity, security,
21and confidentiality of the data system. The disclosure
22notification to an Illinois resident shall include, but need
23not be limited to, (i) the toll-free numbers and addresses for
24consumer reporting agencies, (ii) the toll-free number,
25address, and website address for the Federal Trade Commission,



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



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1law enforcement agency determines that notification will
2interfere with a criminal investigation and provides the data
3collector with a written request for the delay. However, the
4data collector must notify the Illinois resident as soon as
5notification will no longer interfere with the investigation.
6    (c) For purposes of this Section, notice to consumers may
7be provided by one of the following methods:
8        (1) written notice;
9        (2) electronic notice, if the notice provided is
10    consistent with the provisions regarding electronic
11    records and signatures for notices legally required to be
12    in writing as set forth in Section 7001 of Title 15 of the
13    United States Code; or
14        (3) substitute notice, if the data collector
15    demonstrates that the cost of providing notice would exceed
16    $250,000 or that the affected class of subject persons to
17    be notified exceeds 500,000, or the data collector does not
18    have sufficient contact information. Substitute notice
19    shall consist of all of the following: (i) email notice if
20    the data collector has an email address for the subject
21    persons; (ii) conspicuous posting of the notice on the data
22    collector's web site page if the data collector maintains
23    one; and (iii) notification to major statewide media or, if
24    the breach impacts residents in one geographic area, to
25    prominent local media in areas where affected individuals
26    are likely to reside if such notice is reasonably



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1    calculated to give actual notice to persons whom notice is
2    required.
3    (d) Notwithstanding any other subsection in this Section, a
4data collector that maintains its own notification procedures
5as part of an information security policy for the treatment of
6personal information and is otherwise consistent with the
7timing requirements of this Act, shall be deemed in compliance
8with the notification requirements of this Section if the data
9collector notifies subject persons in accordance with its
10policies in the event of a breach of the security of the system
12    (e) Notice to Attorney General.
13        (1) Any data collector required to issue notice
14    pursuant to this Section to more than 100 Illinois
15    residents as a result of a single breach of the security
16    system shall provide notice to the Attorney General of the
17    breach, including:
18            (A) a description of the nature of the breach of
19        security or unauthorized acquisition or use.
20            (B) the number of Illinois residents affected by
21        such incident at the time of notification.
22            (C) any steps the data collector has taken or plans
23        to take relating to the incident.
24        Such notification must be made within 14 business days
25    of the data collector's discovery of the security breach,
26    or when the data collector provides notice to consumers



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1    pursuant to this Section, whichever is sooner. If the date
2    of the breach is unknown at the time the notice is sent to
3    the Attorney General, the data collector shall send the
4    Attorney General the date of the breach as soon as
5    possible.
6        (2) Any data collector that maintains or stores, but
7    does not own or license, computerized data that includes
8    personal information that is required to notify the owner
9    or licensee of the information that there has been a breach
10    of the security of the data, shall notify the Attorney
11    General of the following:
12            (A) a description of the nature of the breach of
13        security or unauthorized acquisition or use.
14            (B) the number of Illinois residents affected by
15        such incident at the time of notification.
16            (C) any steps the data collector has taken or plans
17        to take relating to the incident, including the steps
18        the data collector has taken to inform the owner or
19        licensee of the breach and what measures, if any, the
20        data collector has taken to notify Illinois residents.
21        Such notification must be made within 14 business days
22    of the data collector's discovery of the security breach,
23    or when the data collector provides notice to the owner or
24    licensee of the information pursuant to this section,
25    whichever is sooner. If the date of the breach is unknown
26    at the time the notice is sent to the Attorney General, the



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1    data collector shall send the Attorney General the date of
2    the breach as soon as possible.
3(Source: P.A. 97-483, eff. 1-1-12.)
4    (815 ILCS 530/45 new)
5    Sec. 45. Data security.
6    (a) A data collector that owns or licenses, or maintains or
7stores but does not own or license, records that contain
8personal information concerning an Illinois resident shall
9implement and maintain reasonable security measures to protect
10those records from unauthorized access, acquisition,
11destruction, use, modification, or disclosure.
12    (b) A contract for the disclosure of personal information
13concerning an Illinois resident that is maintained by a data
14collector must include a provision requiring the person to whom
15the information is disclosed to implement and maintain
16reasonable security measures to protect those records from
17unauthorized access, acquisition, destruction, use,
18modification, or disclosure.
19    (c) If a State or federal law requires a data collector to
20provide greater protection to records that contain personal
21information concerning an Illinois resident that are
22maintained by the data collector and the data collector is in
23compliance with the provisions of that State or federal law,
24the data collector shall be deemed to be in compliance with the
25provisions of this Section.



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1    (815 ILCS 530/50 new)
2    Sec. 50. Posting of privacy policy.
3    (a) As used in this Section:
4    "Conspicuously post" means posting the privacy policy
5through any of the following:
6        (1) A Web page on which the actual privacy policy is
7    posted if the Web page is the homepage or first significant
8    page after entering the Web site.
9        (2) An icon that hyperlinks to a Web page on which the
10    actual privacy policy is posted, if the icon is located on
11    the homepage or the first significant page after entering
12    the Web site, and if the icon contains the word "privacy."
13    The icon shall also use a color that contrasts with the
14    background color of the Web page or is otherwise
15    distinguishable.
16        (3) A text link that hyperlinks to a Web page on which
17    the actual privacy policy is posted, if the text link is
18    located on the homepage or first significant page after
19    entering the Web site, and if the text link does one of the
20    following:
21            (A) Includes the word "privacy".
22            (B) Is written in capital letters equal to or
23        greater in size than the surrounding text.
24            (C) Is written in larger type than the surrounding
25        text, or in contrasting type, font, or color to the



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1        surrounding text of the same size, or set off from the
2        surrounding text of the same size by symbols or other
3        marks that call attention to the language.
4        (4) Any other functional hyperlink that is displayed in
5    a noticeable manner.
6        (5) In the case of an online service, any other
7    reasonably accessible means of making the privacy policy
8    available for a consumer of the online service.
9    "Operator" means any person or entity that owns a Web site
10located on the Internet or an online service that collects and
11maintains personal information from a consumer residing in
12Illinois who uses or visits the Web site or online service if
13the Web site or online service is operated for commercial
14purposes. It does not include any third party that operates,
15hosts, or manages, but does not own, a Web site or online
16service on the owner's behalf or by processing information on
17behalf of the owner.
18    (b) An operator of a commercial Web site or online service
19that collects personal information through the Internet about
20individual consumers residing in Illinois who use or visit its
21commercial Web site or online service shall conspicuously post
22its privacy policy on its Web site or online service. An
23operator shall be in violation of this subdivision only if the
24operator fails to post its policy within 30 days after being
25notified of noncompliance.
26    (c) The privacy policy required by subsection (b) shall, at



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1a minimum, do the following:
2        (1) Identify the categories of personal information
3    that the operator collects through the Web site or online
4    service about individual consumers who use or visit its
5    commercial Web site or online service and the categories of
6    third-party persons or entities with whom the operator may
7    share that personal information.
8        (2) If the operator maintains a process for an
9    individual consumer who uses or visits its commercial Web
10    site or online service to review and request changes to any
11    of his or her personal information that is collected
12    through the Web site or online service, provide a
13    description of that process.
14        (3) Describe the process by which the operator notifies
15    consumers who use or visit its commercial Web site or
16    online service of material changes to the operator's
17    privacy policy for that Web site or online service.
18        (4) Identify its effective date.
19        (5) Disclose how the operator responds to Web browser
20    "do not track" signals or other mechanisms that provide
21    consumers the ability to exercise choice regarding the
22    collection of personal information about an individual
23    consumer's online activities over time and across
24    third-party Web sites or online services, if the operator
25    engages in that collection.
26        (6) Disclose whether other parties may collect



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1    personal information about an individual consumer's online
2    activities over time and across different Web sites or
3    online services when a consumer uses the operator's Web
4    site or online service.
5    An operator may satisfy the requirement of paragraph (5) by
6providing a clear and conspicuous hyperlink in the operator's
7privacy policy to an online location containing a description,
8including the effects, of any program or protocol the operator
9follows that offers the consumer that choice.