Bill Text: IL HB4081 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Creates the Cybersecurity Compliance Act. Creates an affirmative defense for every covered entity that creates, maintains, and complies with a written cybersecurity program that contains administrative, technical, and physical safeguards for the protection of either personal information or both personal information and restricted information and that reasonably conforms to an industry-recognized cybersecurity framework. Prescribes requirements for the cybersecurity program.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced) 2024-04-26 - Added Co-Sponsor Rep. Tony M. McCombie [HB4081 Detail]

Download: Illinois-2023-HB4081-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4081 Introduced , by Rep. Brad Stephens SYNOPSIS AS INTRODUCED:
New Act
Creates the Cybersecurity Compliance Act. Creates an affirmative defense for every covered entity that creates, maintains, and complies with a written cybersecurity program that contains administrative, technical, and physical safeguards for the protection of either personal information or both personal information and restricted information and that reasonably conforms to an industry-recognized cybersecurity framework. Prescribes requirements for the cybersecurity program.
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A BILL FOR
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AN ACT concerning business.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Cybersecurity Compliance Act.
Section 5. Definitions. As used in this Act:
"Business" means any limited liability company, limited
liability partnership, corporation, sole proprietorship,
association, State institution of higher education, private
college, or other group, however organized and whether
operating for profit or not for profit, or the parent or
subsidiary of any of the foregoing. "Business" includes a
financial institution organized, chartered, or holding a
license authorizing operation under the laws of this State,
any other state, the United States, or any other country.
"Covered entity" means a business that accesses,
maintains, communicates, or processes personal information or
restricted information in or through one or more systems,
networks, or services located in or outside of this State.
"Data breach" means unauthorized access to and acquisition
of computerized data that compromises the security or
confidentiality of personal information or restricted
information owned by or licensed to a covered entity and that

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causes, reasonably is believed to have caused, or reasonably
is believed will cause a material risk of identity theft or
other fraud to person or property. "Data breach" does not
include:
(1) the good faith acquisition of personal information
or restricted information by the covered entity's employee
or agent for the purposes of the covered entity so long as
the personal information or restricted information is not
used for an unlawful purpose or subject to further
unauthorized disclosure; or
(2) the acquisition of personal information or
restricted information pursuant to a search warrant,
subpoena, or other court order, or pursuant to a subpoena,
order, or duty of a regulatory State agency.
"Personal information" has the same meaning as provided in
the Personal Information Protection Act.
"Restricted information" means any information about an
individual, other than personal information, that, alone or in
combination with other information, including personal
information, can be used to distinguish or trace the
individual's identity or that is linked or linkable to an
individual, if the information is not encrypted, redacted, or
altered by any method or technology in such a manner that the
information is unreadable, and the breach of which is likely
to result in a material risk of identity theft or other fraud
to a person or property.

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Section 10. Safe harbor requirements.
(a) A covered entity seeking an affirmative defense under
this Act shall:
(1) create, maintain, and comply with a written
cybersecurity program that contains administrative,
technical, and physical safeguards for the protection of
personal information and that reasonably conforms to an
industry-recognized cybersecurity framework, as described
in Section 15; or
(2) create, maintain, and comply with a written
cybersecurity program that contains administrative,
technical, and physical safeguards for the protection of
both personal information and restricted information and
that reasonably conforms to an industry-recognized
cybersecurity framework, as described in Section 15.
(b) A covered entity's cybersecurity program shall be
designed to do all of the following:
(1) protect the security and confidentiality of
information;
(2) protect against any anticipated threats or hazards
to the security or integrity of information; and
(3) protect against unauthorized access to and
acquisition of the information that is likely to result in
a material risk of identity theft or other fraud to the
individual to whom the information relates.

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(c) The scale and scope of a covered entity's
cybersecurity program under subsection (a), as applicable, is
appropriate if it is based on all of the following factors:
(1) the size and complexity of the covered entity;
(2) the nature and scope of the activities of the
covered entity;
(3) the sensitivity of the information to be
protected;
(4) the cost and availability of tools to improve
information security and reduce vulnerabilities; and
(5) the resources available to the covered entity.
(d) A covered entity under this Section is entitled to an
affirmative defense as follows:
(1) A covered entity that satisfies paragraph (1) of
subsection (a) and also subsections (b) and (c) is
entitled to an affirmative defense to any cause of action
sounding in tort that is brought under the laws of this
State or in the courts of this State and that alleges that
the failure to implement reasonable information security
controls resulted in a data breach concerning personal
information.
(2) A covered entity that satisfies paragraph (2) of
subsection (a) and also subsections (b) and (c) is
entitled to an affirmative defense to any cause of action
sounding in tort that is brought under the laws of this
State or in the courts of this State and that alleges that

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the failure to implement reasonable information security
controls resulted in a data breach concerning personal
information or restricted information.
Section 15. Reasonable conformance.
(a) A covered entity's cybersecurity program reasonably
conforms to an industry-recognized cybersecurity framework for
purposes of this Act if the requirements of subsection (b),
(c), or (d) are satisfied.
(b)(1) The cybersecurity program reasonably conforms to an
industry-recognized cybersecurity framework for purposes of
this Act if the cybersecurity program reasonably conforms to
the current version of any of the following or any combination
of the following, subject to paragraph (2) and subsection (e):
(A) The "framework for improving critical
infrastructure cyber security" developed by the National
Institute of Standards and Technology (NIST);
(B) NIST special publication 800-171;
(C) NIST special publications 800-53 and 800-53a;
(D) The Federal Risk And Authorization Management
Program (FedRAMP) Security Assessment Framework;
(E) The Center for Internet Security Critical Security
Controls for Effective Cyber Defense; or
(F) The International Organization for
Standardization/International Electrotechnical Commission
27000 Family - Information Security Management Systems.

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(2) When a final revision to a framework listed in
paragraph (1) is published, a covered entity whose
cybersecurity program reasonably conforms to that framework
shall reasonably conform to the revised framework not later
than one year after the publication date stated in the
revision.
(c)(1) The covered entity's cybersecurity program
reasonably conforms to an industry-recognized cybersecurity
framework for purposes of this Act if the covered entity is
regulated by the State, by the federal government, or both, or
is otherwise subject to the requirements of any of the laws or
regulations listed below, and the cybersecurity program
reasonably conforms to the entirety of the current version of
any of the following, subject to paragraph (2):
(A) The security requirements of the Health Insurance
Portability and Accountability Act of 1996, as set forth
in 45 CFR Part 164, Subpart C;
(B) Title V of the Gramm-Leach-Bliley Act of 1999,
Public Law 106-102, as amended;
(C) The Federal Information Security Modernization Act
of 2014, Public Law 113-283;
(D) The Health Information Technology for Economic and
Clinical Health Act, as set forth in 45 CFR Part 162.
(2) When a framework listed in paragraph (1) is amended, a
covered entity whose cybersecurity program reasonably conforms
to that framework shall reasonably conform to the amended

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framework not later than one year after the effective date of
the amended framework.
(d)(1) The cybersecurity program reasonably conforms to an
industry-recognized cybersecurity framework for purposes of
this Act if the cybersecurity program reasonably complies with
both the current version of the payment card industry (PCI)
data security standard and conforms to the current version of
another applicable industry-recognized cybersecurity
framework listed in subsection (b), subject to paragraph (2)
of subsection (b) and subsection (e).
(2) When a final revision to the PCI data security
standard is published, a covered entity whose cybersecurity
program reasonably complies with that standard shall
reasonably comply with the revised standard not later than one
year after the publication date stated in the revision.
(e) If a covered entity's cybersecurity program reasonably
conforms to a combination of industry-recognized cybersecurity
frameworks, or complies with a standard, as in the case of the
PCI data security standard, as described in subsection (b) or
(d), and 2 or more of those frameworks are revised, the covered
entity whose cybersecurity program reasonably conforms to or
complies with, as applicable, those frameworks shall
reasonably conform to or comply with, as applicable, all of
the revised frameworks not later than one year after the
latest publication date stated in the revisions.

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Section 20. No private right of action. This Act shall not
be construed to provide a private right of action, including a
class action, with respect to any act or practice regulated
under it.
Section 97. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.