BILL NUMBER: SB 1279 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 9, 2004
AMENDED IN SENATE APRIL 16, 2004
AMENDED IN SENATE APRIL 1, 2004
AMENDED IN SENATE MARCH 22, 2004
INTRODUCED BY Senator Bowen
FEBRUARY 13, 2004
An act to add Sections 1798.29.5 and 1798.82.5 to, and to
repeal Sections 1798.29 repeal and amend Sections
1798.29 and 1798.82 of , the Civil Code,
relating to identity theft.
LEGISLATIVE COUNSEL'S DIGEST
SB 1279, as amended, Bowen. Identity theft.
Existing law requires any agency, or a person or business
conducting business in California, which owns or licenses
computerized data that includes personal information, as defined, to
disclose in specified ways, any breach of the security of the data,
as defined, to any California resident whose unencrypted personal
information was, or is reasonably believed to have been, acquired by
an unauthorized person.
This bill would require an agency, or a person or business
conducting business in California, that possesses
noncomputerized any data , as defined,
that includes the personal information of a
consumer California resident , to to
notify the consumer resident
of any unauthorized disclosure of that information
breach of the security of the data , as specified. The
bill would also repeal duplicative provisions of law.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1798.29 of the Civil Code, as added by Chapter
915 of the Statutes of 2002, is repealed.
SEC. 2. Section 1798.29.5 is added to the Civil Code, to read:
1798.29.5. (a) Any agency that possesses noncomputerized data
that includes a consumer's personal information shall notify that
consumer if there has been an unauthorized disclosure of that
information pertaining to that consumer.
(b) For purposes of this section, the following definitions shall
apply:
(1) "Noncomputerized" means in written format on paper.
(2) "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:
(A) The individual's social security number.
(B) The individual's driver's license number or California
identification card number.
(C) The individual's account number, or credit or debit card
number, in combination with any required security code, access code,
or password that would permit access to an individual's financial
account.
(3) "Personal information" does not include publicly available
information that is lawfully made available to the general public
from federal, state, or local government records.
(4) "Unauthorized disclosure" means a machine error or a human
error, or a theft, that the agency knows, or reasonably should have
known, caused the disclosure of the consumer's personal information
to a third party to whom disclosure was not intended.
(c) The notification required in subdivision (a) shall be provided
within 30 days of the date the agency knew, or reasonably should
have known, of the unauthorized disclosure.
SEC. 2. Section 1798.29 of the Civil Code, as added by Chapter
1054 of the Statutes of 2002, is amended to read:
1798.29. (a) Any Except as provided in
subdivision (c), any agency that owns or licenses
computerized data that includes personal information
concerning a California resident shall disclose any
notify the resident that there has been a breach
of the security of the system that data
following discovery or notification of the breach in
the security of the data to any resident of California whose
unencrypted personal information was, or is reasonably believed to
have been, acquired by an unauthorized person . The
disclosure notification shall be made
in the most expedient time possible and without unreasonable delay,
consistent with the legitimate needs of law enforcement, as provided
in subdivision (c), or with any measures necessary to
determine the scope of the breach and restore the reasonable
integrity security and confidentiality of the
data system .
(b) Any agency that maintains computerized data
that includes personal information concerning a California
resident and that the agency does not own shall notify the
owner or licensee of the information of any breach of the security of
the data immediately following discovery, if the personal
information was, or is reasonably believed to have been, acquired by
an unauthorized person.
(c) (1) The notification required by this section may
be delayed if a law enforcement agency determines that the
notification will impede a criminal investigation. The notification
required by this section shall be made after the law enforcement
agency determines that it will not compromise the investigation.
(2) The notification under this section is not required if, as a
result of the investigation described in paragraph (1), the law
enforcement agency concludes that personal information was not
acquired by an unauthorized person.
(d) For purposes of this section, "breach of the security of the
system data " means unauthorized
acquisition of computerized data that compromises
the security , and confidentiality
, or integrity of personal information maintained
by the agency. Good faith acquisition of personal information by an
employee or agent of the agency for the purposes
a purpose of the agency is not a breach of the security of
the system data , provided that the
personal information is not used for a purpose unrelated to the
agency or subject to further unauthorized disclosure.
(e) For purposes of this section, "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 California Identification Card
number.
(3) Account number , or credit or
debit card number, in combination with any required security code,
access code, or password that would permit access to an individual's
financial account.
(f) For purposes of this section, "personal information" does not
include publicly available information that is lawfully made
available to the general public from federal, state, or local
government records.
(g) For purposes of this section, "notice" 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 set forth
in Section 7001 of Title 15 of the United States Code.
(3) Substitute notice, if the agency demonstrates that the cost of
providing notice would exceed two hundred fifty thousand dollars
($250,000), or that the affected class of subject persons to be
notified exceeds 500,000, or the agency does not have sufficient
contact information. Substitute notice shall consist of all of the
following:
(A) E-mail notice when the agency has an e-mail address for the
subject persons.
(B) Conspicuous posting of the notice on the agency's Web site
page, if the agency maintains one.
(C) Notification to major statewide media.
(h) Notwithstanding subdivision (g), an agency that maintains its
own notification procedures as part of an information security policy
for the treatment of personal information and is otherwise
consistent with the timing requirements of this part
section shall be deemed to be in compliance with
the notification requirements of this section if it
the agency notifies the subject
persons in accordance with its policies in the event of a breach of
security of the system data .
SEC. 3. Section 1798.82 of the Civil Code, as added by Chapter 915
of the Statutes of 2002, is repealed.
SEC. 4. Section 1798.82.5 is added to the Civil Code, to read:
1798.82.5. (a) Any person or business that possesses
noncomputerized data that includes a consumer's personal information
shall notify that consumer if there has been an unauthorized
disclosure of that information pertaining to that consumer.
(b) For purposes of this section, the following definitions shall
apply:
(1) "Noncomputerized" means in written format on paper.
(2) "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:
(A) The individual's social security number.
(B) The individual's driver's license number or California
identification card number.
(C) The individual's account number, or credit or debit card
number, in combination with any required security code, access code,
or password that would permit access to an individual's financial
account.
(3) "Personal information" does not include publicly available
information that is lawfully made available to the general public
from federal, state, or local government records.
(4) "Unauthorized disclosure" means a machine error or a human
error, or a theft, that the person or business knows, or reasonably
should have known, caused the disclosure of the consumer's personal
information to a third party to whom disclosure was not intended.
(c) The notification required in subdivision (a) shall be provided
within 30 days of the date the person or business knew, or
reasonably should have known, of the unauthorized disclosure.
SEC. 4. Section 1798.82 of the Civil Code, as added by Chapter
1054 of the Statutes of 2002, is amended to read:
1798.82. (a) Any Except as provided in
subdivision (c), any person or business that conducts business
in California, and that owns or licenses computerized
data that includes personal information concerning a
California resident , shall disclose any
notify that resident that there has been a breach of the
security of the system that data
following discovery or notification of the breach in the
security of the data to any resident of California whose unencrypted
personal information was, or is reasonably believed to have been,
acquired by an unauthorized person . The
disclosure notification shall be made in the
most expedient time possible and without unreasonable delay,
consistent with the legitimate needs of law enforcement, as provided
in subdivision (c), or any measures necessary to determine the scope
of the breach and restore the reasonable integrity
security and confidentiality of the data system
.
(b) Any person or business that maintains computerized
data that includes personal information concerning a
California resident and that the person or business does not
own shall notify the owner or licensee of the information of any
breach of the security of the data immediately following discovery,
if the personal information was, or is reasonably believed to have
been, acquired by an unauthorized person.
(c) (1) The notification required by this section may
be delayed if a law enforcement agency determines that the
notification will impede a criminal investigation. The notification
required by this section shall be made after the law enforcement
agency determines that it will not compromise the investigation.
(2) The notification under this section is not required if, as a
result of the investigation described in paragraph (1), the law
enforcement agency concludes that personal information was not
acquired by an unauthorized person.
(d) For purposes of this section, "breach of the security of the
system data " means unauthorized
acquisition of computerized data that compromises
the security , and confidentiality
, or integrity of personal information maintained
by the person or business. Good faith acquisition of personal
information by an employee or agent of the person or business for
the purposes a purpose of the person or
business is not a breach of the security of the system
data , provided that the personal information is
not used for a purpose unrelated to the person or business
or subject to further unauthorized disclosure.
(e) For purposes of this section, "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 California Identification Card
number.
(3) Account number , or credit or
debit card number, in combination with any required security code,
access code, or password that would permit access to an individual's
financial account.
(f) For purposes of this section, "personal information" does not
include publicly available information that is lawfully made
available to the general public from federal, state, or local
government records.
(g) For purposes of this section, "notice" 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 set forth
in Section 7001 of Title 15 of the United States Code.
(3) Substitute notice, if the person or business demonstrates that
the cost of providing notice would exceed two hundred fifty thousand
dollars ($250,000), or that the affected class of subject persons to
be notified exceeds 500,000, or the person or business does not have
sufficient contact information. Substitute notice shall consist of
all of the following:
(A) E-mail notice when the person or business has an e-mail
address for the subject persons.
(B) Conspicuous posting of the notice on the Web site page of the
person or business, if the person or business maintains one.
(C) Notification to major statewide media.
(h) Notwithstanding subdivision (g), a person or business that
maintains its own notification procedures as part of an information
security policy for the treatment of personal information and is
otherwise consistent with the timing requirements of this
part, section shall be deemed to be in
compliance with the notification requirements of this section if the
person or business notifies the subject persons in
accordance with its policies in the event of a breach of security of
the system data .