Full Text of HB1260 99th General Assembly
HB1260enr 99TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning business.
| 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly:
| 4 | | Section 5. The Personal Information Protection Act is | 5 | | amended by changing Sections 5, 10, and 12 and adding Sections | 6 | | 45 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,
| 10 | | government agencies, public and private universities,
| 11 | | privately and publicly held corporations, financial
| 12 | | institutions, retail operators, and any other entity that, for | 13 | | any purpose, handles, collects, disseminates, or otherwise
| 14 | | deals with nonpublic personal information.
| 15 | | "Breach of the security of the system data" or "breach" | 16 | | means
unauthorized acquisition of computerized data that | 17 | | compromises the security, confidentiality, or integrity of | 18 | | personal information maintained by the data collector. "Breach | 19 | | of the security of the system data" does not include good faith
| 20 | | acquisition of personal information by an employee or agent of
| 21 | | the data collector for a legitimate purpose of the data
| 22 | | collector, provided that the personal information is not used
| 23 | | for a purpose unrelated to the data collector's business or
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| 1 | | subject to further unauthorized disclosure.
| 2 | | "Health insurance information" means an individual's | 3 | | health insurance policy number or subscriber identification | 4 | | number, any unique identifier used by a health insurer to | 5 | | identify the individual, or any medical information in an | 6 | | individual's health insurance application and claims history, | 7 | | including any appeals records. | 8 | | "Medical information" means any information regarding an | 9 | | individual's medical history, mental or physical condition, or | 10 | | medical treatment or diagnosis by a healthcare professional, | 11 | | including such information provided to a website or mobile | 12 | | application. | 13 | | "Personal information" means either of the following: | 14 | | (1) an individual's first name or first initial and | 15 | | last name in combination with any one or more
of the | 16 | | following data elements, when either the name or the data | 17 | | elements are not encrypted or redacted or are encrypted or | 18 | | redacted but the keys to unencrypt or unredact or otherwise | 19 | | read the name or data elements have been acquired without | 20 | | authorization through the breach of security :
| 21 | | (A) (1) Social Security number. | 22 | | (B) (2) Driver's license number or State | 23 | | identification
card number.
| 24 | | (C) (3) Account number or credit or debit card | 25 | | number, or an
account number or credit card number in | 26 | | combination with
any required security code, access |
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| 1 | | code, or password that
would permit access to an | 2 | | individual's financial account.
| 3 | | (D) Medical information. | 4 | | (E) Health insurance information. | 5 | | (F) Unique biometric data generated from | 6 | | measurements or technical analysis of human body | 7 | | characteristics used by the owner or licensee to | 8 | | authenticate an individual, such as a fingerprint, | 9 | | retina or iris image, or other unique physical | 10 | | representation or digital representation of biometric | 11 | | data. | 12 | | (2) user name or email address, in combination with a | 13 | | password or security question and answer that would permit | 14 | | access to an online account, when either the user name or | 15 | | email address or password or security question and answer | 16 | | are not encrypted or redacted or are encrypted or redacted | 17 | | but the keys to unencrypt or unredact or otherwise read the | 18 | | data elements have been obtained through the breach of | 19 | | security. | 20 | | "Personal information" does not include publicly available
| 21 | | information that is lawfully made available to the general
| 22 | | public from federal, State, or local government records.
| 23 | | (Source: P.A. 97-483, eff. 1-1-12.) | 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 | 2 | | information concerning an Illinois resident shall notify the
| 3 | | resident at no charge that there has been a breach of the | 4 | | security of the
system data following discovery or notification | 5 | | of the breach.
The disclosure notification shall be made in the | 6 | | most
expedient time possible and without unreasonable delay,
| 7 | | consistent with any measures necessary to determine the
scope | 8 | | of the breach and restore the reasonable integrity,
security, | 9 | | and confidentiality of the data system. The disclosure | 10 | | notification to an Illinois resident shall include, but need | 11 | | not be limited to, information as follows: | 12 | | (1) With respect to personal information as defined in | 13 | | Section 5 in paragraph (1) of the definition of "personal | 14 | | information": | 15 | | (A) (i) the toll-free numbers and addresses for | 16 | | consumer reporting agencies ; , | 17 | | (B) (ii) the toll-free number, address, and | 18 | | website address for the Federal Trade Commission ; , and | 19 | | (C) (iii) a statement that the individual can | 20 | | obtain information from these sources about fraud | 21 | | alerts and security freezes. | 22 | | The notification shall not, however, include information | 23 | | concerning the number of Illinois residents affected by the | 24 | | breach. | 25 | | (2) With respect to personal information defined in | 26 | | Section 5 in paragraph (2) of the definition of "personal |
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| 1 | | information", notice may be provided in electronic or other | 2 | | form directing the Illinois resident whose personal | 3 | | information has been breached to promptly change his or her | 4 | | user name or password and security question or answer, as | 5 | | applicable, or to take other steps appropriate to protect | 6 | | all online accounts for which the resident uses the same | 7 | | user name or email address and password or security | 8 | | question and answer. | 9 | | (b) Any data collector that maintains or stores, but does | 10 | | not own or license, computerized data that
includes personal | 11 | | information that the data collector does not own or license | 12 | | shall notify the owner or licensee of the information of any | 13 | | breach of the security of the data immediately following | 14 | | discovery, if the personal information was, or is reasonably | 15 | | believed to have been, acquired by
an unauthorized person. In | 16 | | addition to providing such notification to the owner or | 17 | | licensee, the data collector shall cooperate with the owner or | 18 | | licensee in matters relating to the breach. That cooperation | 19 | | shall include, but need not be limited to, (i) informing the | 20 | | owner or licensee of the breach, including giving notice of the | 21 | | date or approximate date of the breach and the nature of the | 22 | | breach, and (ii) informing the owner or licensee of any steps | 23 | | the data collector has taken or plans to take relating to the | 24 | | breach. The data collector's cooperation shall not, however, be | 25 | | deemed to require either the disclosure of confidential | 26 | | business information or trade secrets or the notification of an |
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| 1 | | Illinois resident who may have been affected by the breach.
| 2 | | (b-5) The notification to an Illinois resident required by | 3 | | subsection (a) of this Section may be delayed if an appropriate | 4 | | law enforcement agency determines that notification will | 5 | | interfere with a criminal investigation and provides the data | 6 | | collector with a written request for the delay. However, the | 7 | | data collector must notify the Illinois resident as soon as | 8 | | notification will no longer interfere with the investigation.
| 9 | | (c) For purposes of this Section, notice to consumers may | 10 | | be provided by one of the following methods:
| 11 | | (1) written notice; | 12 | | (2) electronic notice, if the notice provided is
| 13 | | consistent with the provisions regarding electronic
| 14 | | records and signatures for notices legally required to be
| 15 | | in writing as set forth in Section 7001 of Title 15 of the | 16 | | United States Code;
or | 17 | | (3) substitute notice, if the data collector
| 18 | | demonstrates that the cost of providing notice would exceed
| 19 | | $250,000 or that the affected class of subject persons to | 20 | | be notified exceeds 500,000, or the data collector does not
| 21 | | have sufficient contact information. Substitute notice | 22 | | shall consist of all of the following: (i) email notice if | 23 | | the data collector has an email address for the subject | 24 | | persons; (ii) conspicuous posting of the notice on the data
| 25 | | collector's web site page if the data collector maintains
| 26 | | one; and (iii) notification to major statewide media or, if |
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| 1 | | the breach impacts residents in one geographic area, to | 2 | | prominent local media in areas where affected individuals | 3 | | are likely to reside if such notice is reasonably | 4 | | calculated to give actual notice to persons whom notice is | 5 | | required . | 6 | | (d) Notwithstanding any other subsection in this Section, a | 7 | | data collector
that maintains its own notification procedures | 8 | | as part of an
information security policy for the treatment of | 9 | | personal
information and is otherwise consistent with the | 10 | | timing requirements of this Act, shall be deemed in compliance
| 11 | | with the notification requirements of this Section if the
data | 12 | | collector notifies subject persons in accordance with its | 13 | | policies in the event of a breach of the security of the system | 14 | | data.
| 15 | | (Source: P.A. 97-483, eff. 1-1-12.) | 16 | | (815 ILCS 530/12)
| 17 | | Sec. 12. Notice of breach; State agency. | 18 | | (a) Any State agency that collects personal information | 19 | | concerning an Illinois resident shall notify the
resident at no | 20 | | charge that there has been a breach of the security of the
| 21 | | system data or written material following discovery or | 22 | | notification of the breach.
The disclosure notification shall | 23 | | be made in the most
expedient time possible and without | 24 | | unreasonable delay,
consistent with any measures necessary to | 25 | | determine the
scope of the breach and restore the reasonable |
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| 1 | | integrity,
security, and confidentiality of the data system. | 2 | | The disclosure notification to an Illinois resident shall | 3 | | include, but need not be limited to information as follows: | 4 | | (1) With respect to personal information defined in | 5 | | Section 5 in paragraph (1) of the definition of "personal | 6 | | information": , | 7 | | (i) the toll-free numbers and addresses for | 8 | | consumer reporting agencies ; , | 9 | | (ii) the toll-free number, address, and website | 10 | | address for the Federal Trade Commission ; , and | 11 | | (iii) a statement that the individual can obtain | 12 | | information from these sources about fraud alerts and | 13 | | security freezes. | 14 | | (2) With respect to personal information as defined in | 15 | | Section 5 in paragraph (2) of the definition of "personal | 16 | | information", notice may be provided in electronic or other | 17 | | form directing the Illinois resident whose personal | 18 | | information has been breached to promptly change his or her | 19 | | user name or password and security question or answer, as | 20 | | applicable, or to take other steps appropriate to protect | 21 | | all online accounts for which the resident uses the same | 22 | | user name or email address and password or security | 23 | | question and answer. | 24 | | The notification shall not, however, include information | 25 | | concerning the number of Illinois residents affected by the | 26 | | breach. |
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| 1 | | (a-5) The notification to an Illinois resident required by | 2 | | subsection (a) of this Section may be delayed if an appropriate | 3 | | law enforcement agency determines that notification will | 4 | | interfere with a criminal investigation and provides the State | 5 | | agency with a written request for the delay. However, the State | 6 | | agency must notify the Illinois resident as soon as | 7 | | notification will no longer interfere with the investigation. | 8 | | (b) For purposes of this Section, notice to residents may | 9 | | be provided by one of the following methods:
| 10 | | (1) written notice;
| 11 | | (2) electronic notice, if the notice provided is
| 12 | | consistent with the provisions regarding electronic
| 13 | | records and signatures for notices legally required to be
| 14 | | in writing as set forth in Section 7001 of Title 15 of the | 15 | | United States Code;
or
| 16 | | (3) substitute notice, if the State agency
| 17 | | demonstrates that the cost of providing notice would exceed
| 18 | | $250,000 or that the affected class of subject persons to | 19 | | be notified exceeds 500,000, or the State agency does not
| 20 | | have sufficient contact information. Substitute notice | 21 | | shall consist of all of the following: (i) email notice if | 22 | | the State agency has an email address for the subject | 23 | | persons; (ii) conspicuous posting of the notice on the | 24 | | State agency's web site page if the State agency maintains
| 25 | | one; and (iii) notification to major statewide media.
| 26 | | (c) Notwithstanding subsection (b), a State agency
that |
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| 1 | | maintains its own notification procedures as part of an
| 2 | | information security policy for the treatment of personal
| 3 | | information and is otherwise consistent with the timing | 4 | | requirements of this Act shall be deemed in compliance
with the | 5 | | notification requirements of this Section if the
State agency | 6 | | notifies subject persons in accordance with its policies in the | 7 | | event of a breach of the security of the system data or written | 8 | | material.
| 9 | | (d) If a State agency is required to notify more than 1,000 | 10 | | persons of a breach of security pursuant to this Section, the | 11 | | State agency shall also notify, without unreasonable delay, all | 12 | | consumer reporting agencies that compile and maintain files on | 13 | | consumers on a nationwide basis, as defined by 15 U.S.C. | 14 | | Section 1681a(p), of the timing, distribution, and content of | 15 | | the notices. Nothing in this subsection (d) shall be construed | 16 | | to require the State agency to provide to the consumer | 17 | | reporting agency the names or other personal identifying | 18 | | information of breach notice recipients.
| 19 | | (e) Notice to Attorney General. Any State agency that | 20 | | suffers a single breach of the security of the data concerning | 21 | | the personal information of more than 250 Illinois residents | 22 | | shall provide notice to the Attorney General of the breach, | 23 | | including: | 24 | | (A) The types of personal information compromised in | 25 | | the breach. | 26 | | (B) The number of Illinois residents affected by such |
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| 1 | | incident at the time of notification. | 2 | | (C) Any steps the State agency has taken or plans to | 3 | | take relating to notification of the breach to consumers. | 4 | | (D) The date and timeframe of the breach, if known at | 5 | | the time notification is provided. | 6 | | Such notification must be made within 45 days of the State | 7 | | agency's discovery of the security breach or when the State | 8 | | agency provides any notice to consumers required by this | 9 | | Section, whichever is sooner, unless the State agency has good | 10 | | cause for reasonable delay to determine the scope of the breach | 11 | | and restore the integrity, security, and confidentiality of the | 12 | | data system, or when law enforcement requests in writing to | 13 | | withhold disclosure of some or all of the information required | 14 | | in the notification under this Section. If the date or | 15 | | timeframe of the breach is unknown at the time the notice is | 16 | | sent to the Attorney General, the State agency shall send the | 17 | | Attorney General the date or timeframe of the breach as soon as | 18 | | possible. | 19 | | (Source: P.A. 97-483, eff. 1-1-12.) | 20 | | (815 ILCS 530/45 new) | 21 | | Sec. 45. Data security. | 22 | | (a) A data collector that owns or licenses, or maintains or | 23 | | stores but does not own or license, records that contain | 24 | | personal information concerning an Illinois resident shall | 25 | | implement and maintain reasonable security measures to protect |
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| 1 | | those records from unauthorized access, acquisition, | 2 | | destruction, use, modification, or disclosure. | 3 | | (b) A contract for the disclosure of personal information | 4 | | concerning an Illinois resident that is maintained by a data | 5 | | collector must include a provision requiring the person to whom | 6 | | the information is disclosed to implement and maintain | 7 | | reasonable security measures to protect those records from | 8 | | unauthorized access, acquisition, destruction, use, | 9 | | modification, or disclosure. | 10 | | (c) If a state or federal law requires a data collector to | 11 | | provide greater protection to records that contain personal | 12 | | information concerning an Illinois resident that are | 13 | | maintained by the data collector and the data collector is in | 14 | | compliance with the provisions of that state or federal law, | 15 | | the data collector shall be deemed to be in compliance with the | 16 | | provisions of this Section. | 17 | | (d) A data collector that is subject to and in compliance | 18 | | with the standards established pursuant to Section 501(b) of | 19 | | the Gramm-Leach-Bliley Act of 1999, 15 U.S.C. Section 6801, | 20 | | shall be deemed to be in compliance with the provisions of this | 21 | | Section. | 22 | | (815 ILCS 530/50 new) | 23 | | Sec. 50. Entities subject to the federal Health Insurance | 24 | | Portability and Accountability Act of 1996. Any covered entity | 25 | | or business associate that is subject to and in compliance with |
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| 1 | | the privacy and security standards for the protection of | 2 | | electronic health information established pursuant to the | 3 | | federal Health Insurance Portability and Accountability Act of | 4 | | 1996 and the Health Information Technology for Economic and | 5 | | Clinical Health Act shall be deemed to be in compliance with | 6 | | the provisions of this Act, provided that any covered entity or | 7 | | business associate required to provide notification of a breach | 8 | | to the Secretary of Health and Human Services pursuant to the | 9 | | Health Information Technology for Economic and Clinical Health | 10 | | Act also provides such notification to the Attorney General | 11 | | within 5 business days of notifying the Secretary.
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