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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 - 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
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