94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB4198


 
Introduced 11/7/2005, by Rep. John A. Fritchey
 
SYNOPSIS AS INTRODUCED:
 		













815 ILCS 530/10










    Amends the Personal Information Protection Act.  Requires a data collector to disclose to a consumer, at no cost, the personal information obtained resulting in a breach of the security of the system data.  
















LRB094 13810 RXD 48680 b

















 


 


A BILL FOR









 











HB4198

LRB094 13810 RXD 48680 b






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    AN ACT concerning business.

 
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    Be it enacted by the People of the State of Illinois,
 
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represented in the General Assembly:


 
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    Section 5. The Personal Information Protection Act is 
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amended  by changing Section 10 as follows:
 
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    (815 ILCS 530/10)

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    Sec. 10. Notice of Breach.   
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    (a) Any data collector that owns or licenses personal 
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information concerning an Illinois resident shall notify the

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resident that there has been a breach of the security of the

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system data following discovery or notification of the breach.

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The disclosure notification shall be made in the most
expedient 
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time possible and without unreasonable delay,
consistent with 
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any measures necessary to determine the
scope of the breach and 
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restore the reasonable integrity,
security, and 
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confidentiality of the data system.

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    (b) Any data collector that maintains computerized data 
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that
includes personal information that the data collector does 
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not own or license shall notify the owner or licensee of the 
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information of any breach of the security of the data 
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immediately following discovery, if the personal information 
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was, or is reasonably believed to have been, acquired by
an 
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unauthorized person.

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    (c) For purposes of this Section, notice to consumers may  
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be provided by one of the following methods:

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        (1) written notice; 
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        (2) electronic notice, if the notice provided is
      
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    consistent with the provisions regarding electronic

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    records and signatures for notices legally required to be
      
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    in writing as set forth in Section 7001 of Title 15 of the      
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    United States Code;
or 
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        (3) substitute notice, if the data collector
      
 


 






HB4198
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LRB094 13810 RXD 48680 b




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    demonstrates that the cost of providing notice would exceed

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    $250,000 or that the affected class of subject persons to      
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    be notified exceeds 500,000, or the data collector does not

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    have sufficient contact information. Substitute notice      
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    shall consist of all of the following: (i) email notice if      
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    the data collector has an email address for the subject      
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    persons; (ii) conspicuous posting of the notice on the data
      
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    collector's web site page if the data collector maintains
     
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    one; and (iii) notification to major statewide media.  
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    (d) Notwithstanding subsection (c), a data collector
that 
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maintains its own notification procedures as part of an

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information security policy for the treatment of personal

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information and is otherwise consistent with the timing 
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requirements of this Act, shall be deemed in compliance
with 
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the notification requirements of this Section if the
data 
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collector notifies subject persons in accordance with its 
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policies in the event of a breach of the security of the system 
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data.


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    (e) For purposes of this Section, a data collector shall 
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disclose to a consumer, at no cost, the personal information 
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obtained resulting in a breach of the security of the system 
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data.

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(Source: P.A. 94-36, eff. 1-1-06.)