101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3896
 
Introduced 2/14/2020, by Sen. Michael E. Hastings
 
SYNOPSIS AS INTRODUCED:



815 ILCS 530/10

 Amends the Personal Information Protection Act. Provides that data collectors that maintain or store, but do not own or license, computerized data that includes personal information and that are required to issue notice pursuant to this Section to the owner or licensee of the information that there has been a breach of the security of the data shall notify the Attorney General regarding the breach. Effective immediately.



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A BILL FOR
 


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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 10 as follows:

6 (815 ILCS 530/10)
7 Sec. 10. Notice of breach; notice to Attorney General. 
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 in the 
13most
expedient time possible and without unreasonable delay,

14consistent with any measures necessary to determine the
scope 
15of the breach and restore the reasonable integrity,
security, 
16and confidentiality of the data system. The disclosure 
17notification to an Illinois resident shall include, but need 
18not be limited to, information as follows: 
19  (1) With respect to personal information as defined in 
20 Section 5 in paragraph (1) of the definition of "personal 
21 information":
22   (A) the toll-free numbers and addresses for 
23 consumer reporting agencies;
 
 
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1   (B) the toll-free number, address, and website 
2 address for the Federal Trade Commission; and
3   (C) a statement that the individual can obtain 
4 information from these sources about fraud alerts and 
5 security freezes.
6  (2) With respect to personal information defined in 
7 Section 5 in paragraph (2) of the definition of "personal 
8 information", notice may be provided in electronic or other 
9 form directing the Illinois resident whose personal 
10 information has been breached to promptly change his or her 
11 user name or password and security question or answer, as 
12 applicable, or to take other steps appropriate to protect 
13 all online accounts for which the resident uses the same 
14 user name or email address and password or security 
15 question and answer. 
16 The notification shall not, however, include information 
17concerning the number of Illinois residents affected by the 
18breach.
19 (b) Any data collector that maintains or stores, but does 
20not own or license, computerized data that
includes personal 
21information that the data collector does not own or license 
22shall notify the owner or licensee of the information of any 
23breach of the security of the data immediately following 
24discovery, if the personal information was, or is reasonably 
25believed to have been, acquired by
an unauthorized person. In 
26addition to providing such notification to the owner or 
 
 
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1licensee, the data collector shall cooperate with the owner or 
2licensee in matters relating to the breach. That cooperation 
3shall include, but need not be limited to, (i) informing the 
4owner or licensee of the breach, including giving notice of the 
5date or approximate date of the breach and the nature of the 
6breach, and (ii) informing the owner or licensee of any steps 
7the data collector has taken or plans to take relating to the 
8breach. The data collector's cooperation shall not, however, be 
9deemed to require either the disclosure of confidential 
10business information or trade secrets or the notification of an 
11Illinois resident who may have been affected by the breach.

12 (b-5) The notification to an Illinois resident required by 
13subsection (a) of this Section may be delayed if an appropriate 
14law enforcement agency determines that notification will 
15interfere with a criminal investigation and provides the data 
16collector with a written request for the delay. However, the 
17data collector must notify the Illinois resident as soon as 
18notification will no longer interfere with the investigation.

19 (c) For purposes of this Section, notice to consumers may 
20be provided by one of the following methods:

21  (1) written notice; 
22  (2) electronic notice, if the notice provided is

23 consistent with the provisions regarding electronic

24 records and signatures for notices legally required to be

25 in writing as set forth in Section 7001 of Title 15 of the 
26 United States Code;
or 
 
 
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1  (3) substitute notice, if the data collector

2 demonstrates that the cost of providing notice would exceed

3 $250,000 or that the affected class of subject persons to 
4 be notified exceeds 500,000, or the data collector does not

5 have sufficient contact information. Substitute notice 
6 shall consist of all of the following: (i) email notice if 
7 the data collector has an email address for the subject 
8 persons; (ii) conspicuous posting of the notice on the data

9 collector's web site page if the data collector maintains

10 one; and (iii) notification to major statewide media or, if 
11 the breach impacts residents in one geographic area, to 
12 prominent local media in areas where affected individuals 
13 are likely to reside if such notice is reasonably 
14 calculated to give actual notice to persons whom notice is 
15 required. 
16 (d) Notwithstanding any other subsection in this Section, a 
17data collector
that maintains its own notification procedures 
18as part of an
information security policy for the treatment of 
19personal
information and is otherwise consistent with the 
20timing requirements of this Act, shall be deemed in compliance

21with the notification requirements of this Section if the
data 
22collector notifies subject persons in accordance with its 
23policies in the event of a breach of the security of the system 
24data.


25 (e)(1) This subsection does not apply to data collectors 
26that are covered entities or business associates and are in 
 
 
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1compliance with Section 50.
2 (2) Any data collector required to issue notice pursuant to 
3this Section to more than 500 Illinois residents as a result of 
4a single breach of the security system shall provide notice to 
5the Attorney General of the breach, including:
6  (A) A description of the nature of the breach of 
7 security or unauthorized acquisition
or use.
8  (B) The number of Illinois residents affected by such 
9 incident at the time of notification.
10  (C) Any steps the data collector has taken or plans to 
11 take relating to the incident.
12 (3) Any data collector that maintains or stores, but does 
13not own or license, computerized data that includes personal 
14information and that is required to issue notice pursuant to 
15this Section to the owner or licensee of the information that 
16there has been a breach of the security of the data shall 
17notify the Attorney General of the following:
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 such 
21 incident at the time of notification.
22  (C) Any steps the data collector has taken or plans to 
23 take relating to the incident. 
24 (4) Notifications required under paragraphs (2) and (3) of 
25this subsection Such notification must be made in the most 
26expedient time possible and without unreasonable delay but in 
 
 
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1no event later than when the data collector provides notice to 
2consumers pursuant to this Section. If the date of the breach 
3is unknown at the time the notice is sent to the Attorney 
4General, the data collector shall send the Attorney General the 
5date of the breach as soon as possible.
6 Upon receiving notification pursuant to paragraph (2) or 
7(3) of this subsection from a data collector of a breach of 
8personal information, the Attorney General may publish the name 
9of the data collector that suffered the breach, the types of 
10personal information compromised in the breach, and the date 
11range of the breach.
12(Source: P.A. 100-201, eff. 8-18-17; 101-343, eff. 1-1-20.)


13 Section 99. Effective date. This Act takes effect upon 
14becoming law.