Bill Text: IL HB3024 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Failed) 2014-12-03 - Session Sine Die [HB3024 Detail]

Download: Illinois-2013-HB3024-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 HB3024 Introduced , by Rep. Frances Ann Hurley 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.
LRB098 07686 JLS 41244 b
A BILL FOR
HB3024 LRB098 07686 JLS 41244 b
AN ACT concerning business.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Personal Information Protection Act is
amended by changing Section 5, 10, 12, and 40 and adding
Section 50 as follows:
(815 ILCS 530/5)
Sec. 5. Definitions. In this Act:
"Data Collector" may include, but is not limited to,
government agencies, public and private universities,
privately and publicly held corporations, financial
institutions, retail operators, and any other entity that, for
any purpose, handles, collects, disseminates, or otherwise
deals with nonpublic personal information or private contact
information.
"Breach of the security of the system data" or "breach"
means unauthorized acquisition, unauthorized by an individual,
of computerized data that compromises the security,
confidentiality, or integrity of the individual's personal
information or private contact information maintained by the
data collector. "Breach of the security of the system data"
does not include good faith acquisition of personal information
or private contact information by an employee or agent of the

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

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

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

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

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

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

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

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disposal methods include, but are not limited to, the
following:
(1) Paper documents containing personal information or
private contact information may be either redacted,
burned, pulverized, or shredded so that personal
information or private contact information cannot
practicably be read or reconstructed.
(2) Electronic media and other non-paper media
containing personal information or private contact
information may be destroyed or erased so that personal
information or private contact information cannot
practicably be read or reconstructed.
(c) Any person disposing of materials containing personal
information or private contact information may contract with a
third party to dispose of such materials in accordance with
this Section. Any third party that contracts with a person to
dispose of materials containing personal information or
private contact information must implement and monitor
compliance with policies and procedures that prohibit
unauthorized access to or acquisition of or use of personal
information or private contact information during the
collection, transportation, and disposal of materials
containing personal information or private contact
information.
(d) Any person, including but not limited to a third party
referenced in subsection (c), who violates this Section is

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

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