100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB4174

 

Introduced , by Rep. Barbara Wheeler

 

SYNOPSIS AS INTRODUCED:
 
815 ILCS 530/10
815 ILCS 530/12

    Amends the Personal Information Protection Act. Requires any data collector that owns or licenses personal information concerning an Illinois resident and any State agency that collects personal information concerning an Illinois resident to notify the resident of any security breach of the system data within 48 hours of discovery of the breach (rather than requiring notification in the most expedient time possible and without unreasonable delay).


LRB100 15879 KTG 30990 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4174LRB100 15879 KTG 30990 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 10 and 12 as follows:
 
6    (815 ILCS 530/10)
7    Sec. 10. Notice of breach.
8    (a) Any data collector that owns or licenses personal
9information concerning an Illinois resident shall notify the
10resident at no charge that there has been a breach of the
11security of the system data following discovery or notification
12of the breach. The disclosure notification shall be made within
1348 hours of discovery of the breach in the most expedient time
14possible and without unreasonable delay, consistent with any
15measures necessary to determine the scope of the breach and
16restore the reasonable integrity, security, and
17confidentiality of the data system. The disclosure
18notification to an Illinois resident shall include, but need
19not be limited to, information as follows:
20        (1) With respect to personal information as defined in
21    Section 5 in paragraph (1) of the definition of "personal
22    information":
23            (A) the toll-free numbers and addresses for

 

 

HB4174- 2 -LRB100 15879 KTG 30990 b

1        consumer reporting agencies;
2            (B) the toll-free number, address, and website
3        address for the Federal Trade Commission; and
4            (C) a statement that the individual can obtain
5        information from these sources about fraud alerts and
6        security freezes.
7        (2) With respect to personal information defined in
8    Section 5 in paragraph (2) of the definition of "personal
9    information", notice may be provided in electronic or other
10    form directing the Illinois resident whose personal
11    information has been breached to promptly change his or her
12    user name or password and security question or answer, as
13    applicable, or to take other steps appropriate to protect
14    all online accounts for which the resident uses the same
15    user name or email address and password or security
16    question and answer.
17    The notification shall not, however, include information
18concerning the number of Illinois residents affected by the
19breach.
20    (b) Any data collector that maintains or stores, but does
21not own or license, computerized data that includes personal
22information that the data collector does not own or license
23shall notify the owner or licensee of the information of any
24breach of the security of the data immediately following
25discovery, if the personal information was, or is reasonably
26believed to have been, acquired by an unauthorized person. In

 

 

HB4174- 3 -LRB100 15879 KTG 30990 b

1addition to providing such notification to the owner or
2licensee, the data collector shall cooperate with the owner or
3licensee in matters relating to the breach. That cooperation
4shall include, but need not be limited to, (i) informing the
5owner or licensee of the breach, including giving notice of the
6date or approximate date of the breach and the nature of the
7breach, and (ii) informing the owner or licensee of any steps
8the data collector has taken or plans to take relating to the
9breach. The data collector's cooperation shall not, however, be
10deemed to require either the disclosure of confidential
11business information or trade secrets or the notification of an
12Illinois resident who may have been affected by the breach.
13    (b-5) The notification to an Illinois resident required by
14subsection (a) of this Section may be delayed if an appropriate
15law enforcement agency determines that notification will
16interfere with a criminal investigation and provides the data
17collector with a written request for the delay. However, the
18data collector must notify the Illinois resident as soon as
19notification will no longer interfere with the investigation.
20    (c) For purposes of this Section, notice to consumers may
21be provided by one of the following methods:
22        (1) written notice;
23        (2) electronic notice, if the notice provided is
24    consistent with the provisions regarding electronic
25    records and signatures for notices legally required to be
26    in writing as set forth in Section 7001 of Title 15 of the

 

 

HB4174- 4 -LRB100 15879 KTG 30990 b

1    United States Code; or
2        (3) substitute notice, if the data collector
3    demonstrates that the cost of providing notice would exceed
4    $250,000 or that the affected class of subject persons to
5    be notified exceeds 500,000, or the data collector does not
6    have sufficient contact information. Substitute notice
7    shall consist of all of the following: (i) email notice if
8    the data collector has an email address for the subject
9    persons; (ii) conspicuous posting of the notice on the data
10    collector's web site page if the data collector maintains
11    one; and (iii) notification to major statewide media or, if
12    the breach impacts residents in one geographic area, to
13    prominent local media in areas where affected individuals
14    are likely to reside if such notice is reasonably
15    calculated to give actual notice to persons whom notice is
16    required.
17    (d) Notwithstanding any other subsection in this Section, a
18data collector that maintains its own notification procedures
19as part of an information security policy for the treatment of
20personal information and is otherwise consistent with the
21timing requirements of this Act, shall be deemed in compliance
22with the notification requirements of this Section if the data
23collector notifies subject persons in accordance with its
24policies in the event of a breach of the security of the system
25data.
26(Source: P.A. 99-503, eff. 1-1-17; 100-201, eff. 8-18-17.)
 

 

 

HB4174- 5 -LRB100 15879 KTG 30990 b

1    (815 ILCS 530/12)
2    Sec. 12. Notice of breach; State agency.
3    (a) Any State agency that collects personal information
4concerning an Illinois resident shall notify the resident at no
5charge that there has been a breach of the security of the
6system data or written material following discovery or
7notification of the breach. The disclosure notification shall
8be made within 48 hours of discovery of the breach in the most
9expedient time possible and without unreasonable delay,
10consistent with any measures necessary to determine the scope
11of the breach and restore the reasonable integrity, security,
12and confidentiality of the data system. The disclosure
13notification to an Illinois resident shall include, but need
14not be limited to information as follows:
15        (1) With respect to personal information defined in
16    Section 5 in paragraph (1) of the definition of "personal
17    information":
18            (i) the toll-free numbers and addresses for
19        consumer reporting agencies;
20            (ii) the toll-free number, address, and website
21        address for the Federal Trade Commission; and
22            (iii) a statement that the individual can obtain
23        information from these sources about fraud alerts and
24        security freezes.
25        (2) With respect to personal information as defined in

 

 

HB4174- 6 -LRB100 15879 KTG 30990 b

1    Section 5 in paragraph (2) of the definition of "personal
2    information", notice may be provided in electronic or other
3    form directing the Illinois resident whose personal
4    information has been breached to promptly change his or her
5    user name or password and security question or answer, as
6    applicable, or to take other steps appropriate to protect
7    all online accounts for which the resident uses the same
8    user name or email address and password or security
9    question and answer.
10    The notification shall not, however, include information
11concerning the number of Illinois residents affected by the
12breach.
13    (a-5) The notification to an Illinois resident required by
14subsection (a) of this Section may be delayed if an appropriate
15law enforcement agency determines that notification will
16interfere with a criminal investigation and provides the State
17agency with a written request for the delay. However, the State
18agency must notify the Illinois resident as soon as
19notification will no longer interfere with the investigation.
20    (b) For purposes of this Section, notice to residents may
21be provided by one of the following methods:
22        (1) written notice;
23        (2) electronic notice, if the notice provided is
24    consistent with the provisions regarding electronic
25    records and signatures for notices legally required to be
26    in writing as set forth in Section 7001 of Title 15 of the

 

 

HB4174- 7 -LRB100 15879 KTG 30990 b

1    United States Code; or
2        (3) substitute notice, if the State agency
3    demonstrates that the cost of providing notice would exceed
4    $250,000 or that the affected class of subject persons to
5    be notified exceeds 500,000, or the State agency does not
6    have sufficient contact information. Substitute notice
7    shall consist of all of the following: (i) email notice if
8    the State agency has an email address for the subject
9    persons; (ii) conspicuous posting of the notice on the
10    State agency's web site page if the State agency maintains
11    one; and (iii) notification to major statewide media.
12    (c) Notwithstanding subsection (b), a State agency that
13maintains its own notification procedures as part of an
14information security policy for the treatment of personal
15information and is otherwise consistent with the timing
16requirements of this Act shall be deemed in compliance with the
17notification requirements of this Section if the State agency
18notifies subject persons in accordance with its policies in the
19event of a breach of the security of the system data or written
20material.
21    (d) If a State agency is required to notify more than 1,000
22persons of a breach of security pursuant to this Section, the
23State agency shall also notify, without unreasonable delay, all
24consumer reporting agencies that compile and maintain files on
25consumers on a nationwide basis, as defined by 15 U.S.C.
26Section 1681a(p), of the timing, distribution, and content of

 

 

HB4174- 8 -LRB100 15879 KTG 30990 b

1the notices. Nothing in this subsection (d) shall be construed
2to require the State agency to provide to the consumer
3reporting agency the names or other personal identifying
4information of breach notice recipients.
5    (e) Notice to Attorney General. Any State agency that
6suffers a single breach of the security of the data concerning
7the personal information of more than 250 Illinois residents
8shall provide notice to the Attorney General of the breach,
9including:
10        (A) The types of personal information compromised in
11    the breach.
12        (B) The number of Illinois residents affected by such
13    incident at the time of notification.
14        (C) Any steps the State agency has taken or plans to
15    take relating to notification of the breach to consumers.
16        (D) The date and timeframe of the breach, if known at
17    the time notification is provided.
18    Such notification must be made within 45 days of the State
19agency's discovery of the security breach or when the State
20agency provides any notice to consumers required by this
21Section, whichever is sooner, unless the State agency has good
22cause for reasonable delay to determine the scope of the breach
23and restore the integrity, security, and confidentiality of the
24data system, or when law enforcement requests in writing to
25withhold disclosure of some or all of the information required
26in the notification under this Section. If the date or

 

 

HB4174- 9 -LRB100 15879 KTG 30990 b

1timeframe of the breach is unknown at the time the notice is
2sent to the Attorney General, the State agency shall send the
3Attorney General the date or timeframe of the breach as soon as
4possible.
5    (f) In addition to the report required by Section 25 of
6this Act, if the State agency that suffers a breach determines
7the identity of the actor who perpetrated the breach, then the
8State agency shall report this information, within 5 days after
9the determination, to the General Assembly, provided that such
10report would not jeopardize the security of Illinois residents
11or compromise a security investigation.
12    (g) A State agency directly responsible to the Governor
13that has been subject to or has reason to believe it has been
14subject to a single breach of the security of the data
15concerning the personal information of more than 250 Illinois
16residents or an instance of aggravated computer tampering, as
17defined in Section 17-53 of the Criminal Code of 2012, shall
18notify the Office of the Chief Information Security Officer of
19the Illinois Department of Innovation and Technology and the
20Attorney General regarding the breach or instance of aggravated
21computer tampering. The notification shall be made without
22delay, but no later than 72 hours following the discovery of
23the incident.
24    Upon receiving notification of such incident, the Chief
25Information Security Officer shall without delay take
26necessary and reasonable actions to:

 

 

HB4174- 10 -LRB100 15879 KTG 30990 b

1        (i) assess the incident to determine the potential
2    impact on the overall confidentiality, security, and
3    availability of State of Illinois data and information
4    systems;
5        (ii) ensure the security incident is contained to
6    minimize additional impact and risk to the State;
7        (iii) identify the root cause of the incident;
8        (iv) provide recommendations to the impacted State
9    agency to assist with eradicating the threat and removing
10    and mitigating any vulnerabilities to reduce the risk of
11    further compromise; and
12        (v) assist the impacted State agency in any necessary
13    recovery efforts to ensure effective return to a state of
14    normal operations.
15    The Department of Innovation and Technology may agree to
16submit the reports required in subsections (e) and (f) of this
17Section and in Section 25 in lieu of the impacted agency.
18    (h) Upon receiving notification from a State agency of a
19breach of personal information or from the Department of
20Innovation and Technology in lieu of the impacted agency, the
21Attorney General may publish the name of the State agency that
22suffered the breach, the types of personal information
23compromised in the breach, and the date range of the breach.
24(Source: P.A. 99-503, eff. 1-1-17; 100-412, eff. 8-25-17.)