2004 Legislation
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HOUSE BILL NO. 555 – Personal information and privacy

HOUSE BILL NO. 555

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Bill Status



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

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                              IN 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 / Fiscal Impact



                       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