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H0555..............................................................by TRAIL PERSONAL INFORMATION AND PRIVACY - Adds to existing law to provide legislative intent relating to the protection of personal information; to provide for disclosure upon breach in the security of personal information by certain agencies, persons and businesses; to provide for delayed notification in the event of certain criminal investigations; to provide for means of notice; to provide an exception; and to provide certain rights and remedies for breach in the security of personal information. 01/27 House intro - 1st rdg - to printing 01/28 Rpt prt - to St Aff
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-seventh Legislature Second Regular Session - 2004IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 555 BY TRAIL 1 AN ACT 2 RELATING TO PERSONAL INFORMATION AND PRIVACY; AMENDING TITLE 6, IDAHO CODE, BY 3 THE ADDITION OF A NEW CHAPTER 26, TITLE 6, IDAHO CODE, TO PROVIDE LEGISLA- 4 TIVE INTENT RELATING TO THE PROTECTION OF PERSONAL INFORMATION, TO PROVIDE 5 FOR DISCLOSURE UPON BREACH IN THE SECURITY OF PERSONAL INFORMATION BY CER- 6 TAIN AGENCIES, TO PROVIDE FOR DELAYED NOTIFICATION IN THE EVENT OF CERTAIN 7 CRIMINAL INVESTIGATIONS, TO DEFINE TERMS, TO PROVIDE FOR MEANS OF NOTICE, 8 TO PROVIDE AN EXCEPTION, TO PROVIDE FOR DISCLOSURE UPON BREACH IN THE 9 SECURITY OF PERSONAL INFORMATION BY CERTAIN PERSONS OR BUSINESSES, TO PRO- 10 VIDE FOR DELAYED NOTIFICATION IN THE EVENT OF CERTAIN CRIMINAL INVESTIGA- 11 TIONS, TO DEFINE TERMS, TO PROVIDE FOR MEANS OF NOTICE, TO PROVIDE AN 12 EXCEPTION AND TO PROVIDE CERTAIN RIGHTS AND REMEDIES FOR BREACH IN THE 13 SECURITY OF PERSONAL INFORMATION. 14 Be It Enacted by the Legislature of the State of Idaho: 15 SECTION 1. That Title 6, Idaho Code, be, and the same is hereby amended 16 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap- 17 ter 26, Title 6, Idaho Code, and to read as follows: 18 CHAPTER 26 19 PERSONAL INFORMATION AND PRIVACY 20 6-2601. LEGISLATIVE INTENT -- PROTECTION OF PERSONAL INFORMATION. (1) The 21 privacy and financial security of individuals are increasingly at risk due to 22 the ever more widespread collection of personal information by both the pri- 23 vate and public sector. 24 (2) Credit card transactions, magazine subscriptions, telephone numbers, 25 real estate records, automobile registrations, consumer surveys, warranty reg- 26 istrations, credit reports, and internet websites are all sources of personal 27 information and form the source material for identity thieves. 28 (3) The crime of identity theft is on the rise throughout the United 29 States. Criminals who steal personal information such as social security num- 30 bers use the information to open credit card accounts, write bad checks, buy 31 cars, and commit other financial crimes with other people's identities. 32 (4) Identity theft is costly to the marketplace and to consumers. 33 (5) Victims of identity theft must act quickly to minimize the damage. 34 Expeditious notification of possible misuse of a person's personal information 35 is therefore imperative. 36 6-2602. DISCLOSURE UPON BREACH IN THE SECURITY OF PERSONAL INFORMATION -- 37 BY AGENCIES. (1) Any agency that owns or licenses computerized data that 38 includes personal information shall disclose any breach of the security of the 39 system following discovery or notification of the breach in the security of 40 the data to any resident of Idaho whose unencrypted personal information was, 41 or is reasonably believed to have been, acquired by an unauthorized person. 2 1 The disclosure shall be made in the most expedient time possible and without 2 unreasonable delay, consistent with the legitimate needs of law enforcement, 3 as provided in subsection (3) of this section, or any measures necessary to 4 determine the scope of the breach and restore the reasonable integrity of the 5 data system. 6 (2) Any agency that maintains computerized data that includes personal 7 information that the agency does not own shall notify the owner or licensee of 8 the information of any breach of the security of the data immediately follow- 9 ing discovery, if the personal information was, or is reasonably believed to 10 have been, acquired by an unauthorized person. 11 (3) The notification required by this section may be delayed if a law 12 enforcement agency determines that the notification will impede a criminal 13 investigation. The notification required by this section shall be made after 14 the law enforcement agency determines that it will not compromise the investi- 15 gation. 16 (4) For purposes of this section, "agency" means the state of Idaho, or a 17 city, county or other political subdivision of the state of Idaho, and any 18 officer, agency, board, commission, department or similar body of the state of 19 Idaho, city, county or other political subdivision of the state of Idaho. 20 (5) For purposes of this section, "breach of the security of the system" 21 means unauthorized acquisition of computerized data that compromises the secu- 22 rity, confidentiality, or integrity of personal information maintained by the 23 agency. Good faith acquisition of personal information by an employee or agent 24 of the agency for the purposes of the agency is not a breach of the security 25 of the system, provided that the personal information is not used or subject 26 to further unauthorized disclosure. 27 (6) For purposes of this section, "personal information" means an 28 individual's first name or first initial and last name in combination with any 29 one (1) or more of the following data elements, when either the name or the 30 data elements are not encrypted: 31 (a) Social security number; 32 (b) Driver's license number or Idaho identification card number; or 33 (c) Account number, credit or debit card number, in combination with any 34 required security code, access code or password that would permit access 35 to an individual's financial account. 36 (7) For purposes of this section, "personal information" does not include 37 publicly available information that is lawfully made available to the general 38 public from federal, state or local government records. 39 (8) For purposes of this section, "notice" may be provided by one (1) of 40 the following methods: 41 (a) Written notice; 42 (b) Electronic notice, if the notice provided is consistent with the pro- 43 visions regarding electronic records and signatures set forth in 15 U.S.C. 44 7001; or 45 (c) Substitute notice, if the agency demonstrates that the cost of pro- 46 viding notice would exceed two hundred fifty thousand dollars ($250,000), 47 or that the affected class of subject persons to be notified exceeds five 48 hundred thousand (500,000), or the agency does not have sufficient contact 49 information. Substitute notice shall consist of all of the following: 50 (i) E-mail notice when the agency has an e-mail address for the 51 subject persons; 52 (ii) Conspicuous posting of the notice on the agency's website, if 53 the agency maintains one; and 54 (iii) Notification to major statewide media. 55 (9) Notwithstanding subsection (8) of this section, an agency that main- 3 1 tains its own notification procedures as part of an information security pol- 2 icy for the treatment of personal information and is otherwise consistent with 3 the timing requirements of this section shall be deemed to be in compliance 4 with the notification requirements of this section if it notifies subject per- 5 sons in accordance with its policies in the event of a breach of security of 6 the system. 7 6-2603. BREACH IN THE SECURITY OF PERSONAL INFORMATION -- BY PERSONS OR 8 BUSINESSES. (1) Any person or business that conducts business in Idaho, and 9 that owns or licenses computerized data that includes personal information, 10 shall disclose any breach of the security of the system following discovery or 11 notification of the breach in the security of the data to any resident of 12 Idaho whose unencrypted personal information was, or is reasonably believed to 13 have been, acquired by an unauthorized person. The disclosure shall be made in 14 the most expedient time possible and without unreasonable delay, consistent 15 with the legitimate needs of law enforcement, as provided in subsection (3) of 16 this section, or any measures necessary to determine the scope of the breach 17 and restore the reasonable integrity of the data system. 18 (2) Any person or business that maintains computerized data that includes 19 personal information that the person or business does not own shall notify the 20 owner or licensee of the information of any breach of the security of the data 21 immediately following discovery, if the personal information was, or is rea- 22 sonably believed to have been, acquired by an unauthorized person. 23 (3) The notification required by this section may be delayed if a law 24 enforcement agency determines that the notification will impede a criminal 25 investigation. The notification required by this section shall be made after 26 the law enforcement agency determines that it will not compromise the investi- 27 gation. 28 (4) For purposes of this section, "breach of the security of the system" 29 means unauthorized acquisition of computerized data that compromises the secu- 30 rity, confidentiality, or integrity of personal information maintained by the 31 person or business. Good faith acquisition of personal information by an 32 employee or agent of the person or business for the purposes of the person or 33 business is not a breach of the security of the system, provided that the per- 34 sonal information is not used or subject to further unauthorized disclosure. 35 (5) For purposes of this section, "personal information" means an 36 individual's first name or first initial and last name in combination with any 37 one (1) or more of the following data elements, when either the name or the 38 data elements are not encrypted: 39 (a) Social security number; 40 (b) Driver's license number or Idaho identification card number; or 41 (c) Account number, credit or debit card number, in combination with any 42 required security code, access code, or password that would permit access 43 to an individual's financial account. 44 (6) For purposes of this section, "personal information" does not include 45 publicly available information that is lawfully made available to the general 46 public from federal, state or local government records. 47 (7) For purposes of this section, "notice" may be provided by one (1) of 48 the following methods: 49 (a) Written notice; 50 (b) Electronic notice, if the notice provided is consistent with the pro- 51 visions regarding electronic records and signatures set forth in 15 U.S.C. 52 7001; or 53 (c) Substitute notice, if the person or business demonstrates that the 54 cost of providing notice would exceed two hundred fifty thousand dollars 4 1 ($250,000), or that the affected class of subject persons to be notified 2 exceeds five hundred thousand (500,000), or the person or business does 3 not have sufficient contact information. Substitute notice shall consist 4 of all of the following: 5 (i) E-mail notice when the person or business has an e-mail address 6 for the subject persons; 7 (ii) Conspicuous posting of the notice on the website of the person 8 or business, if the person or business maintains one; and 9 (iii) Notification to major statewide media. 10 (8) Notwithstanding subsection (7) of this section, a person or business 11 that maintains its own notification procedures as part of an information secu- 12 rity policy for the treatment of personal information and is otherwise consis- 13 tent with the timing requirements of this section, shall be deemed to be in 14 compliance with the notification requirements of this section if the person or 15 business notifies subject persons in accordance with its policies in the event 16 of a breach of security of the system. 17 6-2604. RIGHTS AND REMEDIES FOR VIOLATION. (1) Any customer injured by a 18 violation of this chapter may institute a civil action to recover damages pro- 19 vided the customer complies with the requirements of chapter 9, title 6, Idaho 20 Code, if applicable, in respect to governmental entities. 21 (2) Any person or business that violates, proposes to violate or has vio- 22 lated this act may be enjoined. 23 (3) The rights and remedies available under this section are cumulative 24 to each other and to any other rights and remedies available under law.
STATEMENT OF PURPOSE RS 13726 This proposed legislation relates to personal information and privacy; amending Title 6 Idaho Code, by the addition of a new Chapter 26, Title 6, to provide legislative intent relating to the protection of personal information, to provide for disclosure upon breach in the security of personal information by certain agencies, to provide for delayed notification in the event of certain criminal investigation, to define terms, to provide for means of notice, to provide an exception, to provide for disclosure upon breach in the security of personal information by certain persons or businesses, to provide for delayed notification in the event of certain criminal investigations, to define terms, to provide for means of notice, to provide exception and to provide certain rights and remedies for breach in the security of personal information. FISCAL IMPACT There may be some slight cost in monitoring and enforcement of this act. Contact Name: Representative Tom Trail Phone: 332-1000 STATEMENT OF PURPOSE/FISCAL NOTE H 555