99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3652

 

Introduced , by Rep. Carol Ammons

 

SYNOPSIS AS INTRODUCED:
 
815 ILCS 530/5
815 ILCS 530/10
815 ILCS 530/12
815 ILCS 530/40
815 ILCS 530/50 new

    Amends the Personal Information Protection Act. Expands the scope of the Act to cover private contact information (home address, home or personal phone number, personal e-mail address). Limits the transfer of private contact information.


LRB099 09353 JLS 29558 b

 

 

A BILL FOR

 

HB3652LRB099 09353 JLS 29558 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 Section 5, 10, 12, and 40 and adding
6Section 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 or private contact
15information.
16    "Breach of the security of the system data" or "breach"
17means unauthorized acquisition, unauthorized by an individual,
18of computerized data that compromises the security,
19confidentiality, or integrity of the individual's personal
20information or private contact information maintained by the
21data collector. "Breach of the security of the system data"
22does not include good faith acquisition of personal information
23or private contact information by an employee or agent of the

 

 

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1data collector for a legitimate purpose of the data collector,
2provided that the personal information or private contact
3information is not used for a purpose unrelated to the data
4collector's business or subject to further unauthorized
5disclosure.
6    "Personal information" means an individual's first name or
7first initial and last name in combination with any one or more
8of the following data elements, when either the name or the
9data elements are not encrypted or redacted:
10        (1) Social Security number.
11        (2) Driver's license number or State identification
12    card number.
13        (3) Account number or credit or debit card number, or
14    an account number or credit card number in combination with
15    any required security code, access code, or password that
16    would permit access to an individual's financial account.
17        (4) Personal financial information.
18"Personal information" does not include publicly available
19information that is lawfully made available to the general
20public from federal, State, or local government records.
21    "Private contact information" means an individual's home
22or personal telephone number, home address, or personal e-mail
23address.
24(Source: P.A. 97-483, eff. 1-1-12.)
 
25    (815 ILCS 530/10)

 

 

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1    Sec. 10. Notice of Breach.
2    (a) Any data collector that owns or licenses personal
3information or private contact information concerning an
4Illinois resident shall notify the resident at no charge that
5there has been a breach of the security of the system data
6following discovery or notification of the breach. The
7disclosure notification shall be made in the most expedient
8time possible and without unreasonable delay, consistent with
9any measures necessary to determine the scope of the breach and
10restore the reasonable integrity, security, and
11confidentiality of the data system. The disclosure
12notification to an Illinois resident shall include, but need
13not be limited to, (i) the toll-free numbers and addresses for
14consumer reporting agencies, (ii) the toll-free number,
15address, and website address for the Federal Trade Commission,
16and (iii) a statement that the individual can obtain
17information from these sources about fraud alerts and security
18freezes. The notification shall not, however, include
19information concerning the number of Illinois residents
20affected by the breach.
21    (b) Any data collector that maintains or stores, but does
22not own or license, computerized data that includes personal
23information or private contact information that the data
24collector does not own or license shall notify the owner or
25licensee of the information of any breach of the security of
26the data immediately following discovery, if the personal

 

 

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

 

 

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1    records and signatures for notices legally required to be
2    in writing as set forth in Section 7001 of Title 15 of the
3    United States Code; or
4        (3) substitute notice, if the data collector
5    demonstrates that the cost of providing notice would exceed
6    $250,000 or that the affected class of subject persons to
7    be notified exceeds 500,000, or the data collector does not
8    have sufficient contact information. Substitute notice
9    shall consist of all of the following: (i) email notice if
10    the data collector has an email address for the subject
11    persons; (ii) conspicuous posting of the notice on the data
12    collector's web site page if the data collector maintains
13    one; and (iii) notification to major statewide media.
14    (d) Notwithstanding any other subsection in this Section, a
15data collector that maintains its own notification procedures
16as part of an information security policy for the treatment of
17personal information or private contact information and is
18otherwise consistent with the timing requirements of this Act,
19shall be deemed in compliance with the notification
20requirements of this Section if the data collector notifies
21subject persons in accordance with its policies in the event of
22a breach of the security of the system data.
23(Source: P.A. 97-483, eff. 1-1-12.)
 
24    (815 ILCS 530/12)
25    Sec. 12. Notice of breach; State agency.

 

 

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1    (a) Any State agency that collects personal information or
2private contact information concerning an Illinois resident
3shall notify the resident at no charge that there has been a
4breach of the security of the system data or written material
5following discovery or notification of the breach. The
6disclosure notification shall be made in the most expedient
7time possible and without unreasonable delay, consistent with
8any measures necessary to determine the scope of the breach and
9restore the reasonable integrity, security, and
10confidentiality of the data system. The disclosure
11notification to an Illinois resident shall include, but need
12not be limited to, (i) the toll-free numbers and addresses for
13consumer reporting agencies, (ii) the toll-free number,
14address, and website address for the Federal Trade Commission,
15and (iii) a statement that the individual can obtain
16information from these sources about fraud alerts and security
17freezes. The notification shall not, however, include
18information concerning the number of Illinois residents
19affected by the breach.
20    (a-5) The notification to an Illinois resident required by
21subsection (a) of this Section may be delayed if an appropriate
22law enforcement agency determines that notification will
23interfere with a criminal investigation and provides the State
24agency with a written request for the delay. However, the State
25agency must notify the Illinois resident as soon as
26notification will no longer interfere with the investigation.

 

 

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1    (b) For purposes of this Section, notice to residents may
2be provided by one of the following methods:
3        (1) written notice;
4        (2) electronic notice, if the notice provided is
5    consistent with the provisions regarding electronic
6    records and signatures for notices legally required to be
7    in writing as set forth in Section 7001 of Title 15 of the
8    United States Code; or
9        (3) substitute notice, if the State agency
10    demonstrates that the cost of providing notice would exceed
11    $250,000 or that the affected class of subject persons to
12    be notified exceeds 500,000, or the State agency does not
13    have sufficient contact information. Substitute notice
14    shall consist of all of the following: (i) email notice if
15    the State agency has an email address for the subject
16    persons; (ii) conspicuous posting of the notice on the
17    State agency's web site page if the State agency maintains
18    one; and (iii) notification to major statewide media.
19    (c) Notwithstanding subsection (b), a State agency that
20maintains its own notification procedures as part of an
21information security policy for the treatment of personal
22information or private contact information and is otherwise
23consistent with the timing requirements of this Act shall be
24deemed in compliance with the notification requirements of this
25Section if the State agency notifies subject persons in
26accordance with its policies in the event of a breach of the

 

 

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1security of the system data or written material.
2    (d) If a State agency is required to notify more than 1,000
3persons of a breach of security pursuant to this Section, the
4State agency shall also notify, without unreasonable delay, all
5consumer reporting agencies that compile and maintain files on
6consumers on a nationwide basis, as defined by 15 U.S.C.
7Section 1681a(p), of the timing, distribution, and content of
8the notices. Nothing in this subsection (d) shall be construed
9to require the State agency to provide to the consumer
10reporting agency the names or other personal identifying
11information of breach notice recipients.
12(Source: P.A. 97-483, eff. 1-1-12.)
 
13    (815 ILCS 530/40)
14    Sec. 40. Disposal of materials containing personal
15information or private contact information; Attorney General.
16    (a) In this Section, "person" means: a natural person; a
17corporation, partnership, association, or other legal entity;
18a unit of local government or any agency, department, division,
19bureau, board, commission, or committee thereof; or the State
20of Illinois or any constitutional officer, agency, department,
21division, bureau, board, commission, or committee thereof.
22    (b) A person must dispose of the materials containing
23personal information or private contact information in a manner
24that renders the personal information or private contact
25information unreadable, unusable, and undecipherable. Proper

 

 

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1disposal methods include, but are not limited to, the
2following:
3        (1) Paper documents containing personal information or
4    private contact information may be either redacted,
5    burned, pulverized, or shredded so that personal
6    information or private contact information cannot
7    practicably be read or reconstructed.
8        (2) Electronic media and other non-paper media
9    containing personal information or private contact
10    information may be destroyed or erased so that personal
11    information or private contact information cannot
12    practicably be read or reconstructed.
13    (c) Any person disposing of materials containing personal
14information or private contact information may contract with a
15third party to dispose of such materials in accordance with
16this Section. Any third party that contracts with a person to
17dispose of materials containing personal information or
18private contact information must implement and monitor
19compliance with policies and procedures that prohibit
20unauthorized access to or acquisition of or use of personal
21information or private contact information during the
22collection, transportation, and disposal of materials
23containing personal information or private contact
24information.
25    (d) Any person, including but not limited to a third party
26referenced in subsection (c), who violates this Section is

 

 

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1subject to a civil penalty of not more than $100 for each
2individual with respect to whom personal information or private
3contact information is disposed of in violation of this
4Section. A civil penalty may not, however, exceed $50,000 for
5each instance of improper disposal of materials containing
6personal information or private contact information. The
7Attorney General may impose a civil penalty after notice to the
8person accused of violating this Section and an opportunity for
9that person to be heard in the matter. The Attorney General may
10file a civil action in the circuit court to recover any penalty
11imposed under this Section.
12    (e) In addition to the authority to impose a civil penalty
13under subsection (d), the Attorney General may bring an action
14in the circuit court to remedy a violation of this Section,
15seeking any appropriate relief.
16    (f) A financial institution under 15 U.S.C. 6801 et. seq.
17or any person subject to 15 U.S.C. 1681w is exempt from this
18Section.
19    (g) Nothing in this Act prohibits a person from retaining
20private contact information possessed by the person and used
21for a legitimate business purpose of the person's business. A
22legitimate business purpose includes, but is not limited to,
23storing billing information, storing shipping information,
24advertising by the person, marketing by the person, or any
25other use related to the person's business.
26    

 

 

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1(Source: P.A. 97-483, eff. 1-1-12.)
 
2    (815 ILCS 530/50 new)
3    Sec. 50. Prohibitions on the transfer of private contact
4information. A person or data collector shall not sell private
5contact information. A person or data collector may transfer or
6share private contact information only to the extent the
7transfer or sharing of private contact information is necessary
8for a legitimate purpose of the data collector or person and
9provided that the private contact information is not used for a
10purpose unrelated to the person or data collector's business or
11subject to further unauthorized disclosure.