Full Text of SB3040 94th General Assembly
SB3040 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 SB3040
Introduced 1/20/2006, by Sen. Peter J. Roskam - Dave Syverson SYNOPSIS AS INTRODUCED: |
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815 ILCS 530/5 |
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815 ILCS 530/10 |
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815 ILCS 530/25 new |
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Amends the Personal Information Protection Act. Adds written data to the definition of "breach of security of the system". Provides that the notification requirements of the Act apply to breaches of security concerning written data. Provides that any financial institution that has suffered a breach of security concerning personal information shall provide the owner or licensee of the personal information with free credit watch services for one year, if the personal information was, or is reasonably believed to have been, acquired by an unauthorized person.
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A BILL FOR
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SB3040 |
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LRB094 18896 LCT 54340 b |
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| AN ACT concerning business.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Personal Information Protection Act is | 5 |
| amended by changing Sections 5 and 10 and by adding Section 25 | 6 |
| as follows: | 7 |
| (815 ILCS 530/5)
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| Sec. 5. Definitions. In this Act: | 9 |
| "Data Collector" may include, but is not limited to,
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| government agencies, public and private universities,
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| privately and publicly held corporations, financial
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| institutions, retail operators, and any other entity that, for | 13 |
| any purpose, whether by automated collection or otherwise, | 14 |
| handles, collects, disseminates, or otherwise
deals with | 15 |
| nonpublic personal information.
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| "Breach of the security of the system data" means
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| unauthorized acquisition of computerized or written data that | 18 |
| compromises the security, confidentiality, or integrity of | 19 |
| personal information maintained by the data collector. "Breach | 20 |
| of the security of the system data" does not include good faith
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| acquisition of personal information by an employee or agent of
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| the data collector for a legitimate purpose of the data
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| collector, provided that the personal information is not used
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| for a purpose unrelated to the data collector's business or
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| subject to further unauthorized disclosure.
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| "Personal information" means an individual's first name or | 27 |
| first initial and last name in combination with any one or more
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| of the following data elements, when either the name or the | 29 |
| data elements are not encrypted or redacted:
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| (1) Social Security number. | 31 |
| (2) Driver's license number or State identification
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| card number.
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SB3040 |
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LRB094 18896 LCT 54340 b |
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| (3) Account number or credit or debit card number, or | 2 |
| an
account number or credit card number in combination with
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| any required security code, access code, or password that
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| would permit access to an individual's financial account.
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| "Personal information" does not include publicly available
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| information that is lawfully made available to the general
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| public from federal, State, or local government records.
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| (Source: P.A. 94-36, eff. 1-1-06.) | 9 |
| (815 ILCS 530/10)
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| Sec. 10. Notice of Breach. | 11 |
| (a) Any data collector that owns or licenses personal | 12 |
| information concerning an Illinois resident shall notify the
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| resident that there has been a breach of the security of the
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| system data following discovery or notification of the breach.
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| The disclosure notification shall be made in the most
expedient | 16 |
| time possible and without unreasonable delay,
consistent with | 17 |
| any measures necessary to determine the
scope of the breach and | 18 |
| restore the reasonable integrity,
security, and | 19 |
| confidentiality of the data system.
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| (b) Any data collector that maintains computerized or | 21 |
| written data that
includes personal information that the data | 22 |
| collector does not own or license shall notify the owner or | 23 |
| licensee of the information of any breach of the security of | 24 |
| the data immediately following discovery, if the personal | 25 |
| information was, or is reasonably believed to have been, | 26 |
| acquired by
an unauthorized person.
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| (c) For purposes of this Section, notice to consumers may | 28 |
| be provided by one of the following methods:
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| (1) written notice; | 30 |
| (2) electronic notice, if the notice provided is
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| consistent with the provisions regarding electronic
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| records and signatures for notices legally required to be
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| in writing as set forth in Section 7001 of Title 15 of the | 34 |
| United States Code;
or | 35 |
| (3) substitute notice, if the data collector
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LRB094 18896 LCT 54340 b |
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| demonstrates that the cost of providing notice would exceed
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| $250,000 or that the affected class of subject persons to | 3 |
| be notified exceeds 500,000, or the data collector does not
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| have sufficient contact information. Substitute notice | 5 |
| shall consist of all of the following: (i) email notice if | 6 |
| the data collector has an email address for the subject | 7 |
| persons; (ii) conspicuous posting of the notice on the data
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| collector's web site page if the data collector maintains
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| one; and (iii) notification to major statewide media. | 10 |
| (d) Notwithstanding subsection (c), a data collector
that | 11 |
| maintains its own notification procedures as part of an
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| information security policy for the treatment of personal
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| information and is otherwise consistent with the timing | 14 |
| requirements of this Act, shall be deemed in compliance
with | 15 |
| the notification requirements of this Section if the
data | 16 |
| collector notifies subject persons in accordance with its | 17 |
| policies in the event of a breach of the security of the system | 18 |
| data.
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| (Source: P.A. 94-36, eff. 1-1-06.) | 20 |
| (815 ILCS 530/25 new) | 21 |
| Sec. 25. Credit watch services.
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| (a) Any financial institution that has suffered a breach of | 23 |
| security concerning personal information shall provide the | 24 |
| owner or licensee of the personal information with free credit | 25 |
| watch services for one year, if the personal information was, | 26 |
| or is reasonably believed to have been, acquired by an | 27 |
| unauthorized person. | 28 |
| (b) For purposes of this Section:
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| "Financial institution" means any bank, credit union, | 30 |
| mortgage banking company, savings bank, savings and loan | 31 |
| association, or other residential mortgage lender that | 32 |
| operates or has a place of business in this State.
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| "Credit watch services" means services that allow a | 34 |
| consumer electronic
access to the information in his or her | 35 |
| credit report on demand and provide regular e-mail |
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LRB094 18896 LCT 54340 b |
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| notifications of changes to the consumer's credit report.
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