Amended in Senate April 15, 2013

Senate BillNo. 46


Introduced by Senator Corbett

December 14, 2012


An act to amend Sections 1798.29 and 1798.82 of the Civil Code, relating to personal information.

LEGISLATIVE COUNSEL’S DIGEST

SB 46, as amended, Corbett. Personal information: privacy.

Existing law requires any agency, and any person or business conducting business in California, that owns or licenses computerized data that includes personal information, as defined, to disclose in specified ways, any breach of the security of the system or data, as defined, following discovery or notification of the security breach, to any California resident whose unencrypted personal information was, or is reasonably believed to have been, acquired by an unauthorized person. Existing law defines “personal information” for these purposes, to include an individual’s first name and last name, or first initial and last name, in combination with one or more designated data elements relating to, among other things, social security numbers, driver’s license numbers, financial accounts, and medical information.

This bill would revise certain data elements included within the definition of personal information, by adding certain informationbegin delete relating to an account other than a financialend deletebegin insert that would permit access to an onlineend insert account.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 1798.29 of the Civil Code is amended
2to read:

3

1798.29.  

(a) Any agency that owns or licenses computerized
4data that includes personal information shall disclose any breach
5of the security of the system following discovery or notification
6of the breach in the security of the data to any resident of California
7whose unencrypted personal information was, or is reasonably
8believed to have been, acquired by an unauthorized person. The
9disclosure shall be made in the most expedient time possible and
10without unreasonable delay, consistent with the legitimate needs
11of law enforcement, as provided in subdivision (c), or any measures
12necessary to determine the scope of the breach and restore the
13reasonable integrity of the data system.

14(b) Any agency that maintains computerized data that includes
15personal information that the agency does not own shall notify the
16owner or licensee of the information of any breach of the security
17of the data immediately following discovery, if the personal
18information was, or is reasonably believed to have been, acquired
19by an unauthorized person.

20(c) The notification required by this section may be delayed if
21a law enforcement agency determines that the notification will
22impede a criminal investigation. The notification required by this
23section shall be made after the law enforcement agency determines
24that it will not compromise the investigation.

25(d) Any agency that is required to issue a security breach
26notification pursuant to this section shall meet all of the following
27requirements:

28(1) The security breach notification shall be written in plain
29language.

30(2) The security breach notification shall include, at a minimum,
31the following information:

32(A) The name and contact information of the reporting agency
33subject to this section.

34(B) A list of the types of personal information that were or are
35reasonably believed to have been the subject of a breach.

36(C) If the information is possible to determine at the time the
37notice is provided, then any of the following: (i) the date of the
38breach, (ii) the estimated date of the breach, or (iii) the date range
P3    1within which the breach occurred. The notification shall also
2include the date of the notice.

3(D) Whether the notification was delayed as a result of a law
4enforcement investigation, if that information is possible to
5determine at the time the notice is provided.

6(E) A general description of the breach incident, if that
7information is possible to determine at the time the notice is
8provided.

9(F) The toll-free telephone numbers and addresses of the major
10credit reporting agencies, if the breach exposed a social security
11number or a driver’s license or California identification card
12number.

13(3) At the discretion of the agency, the security breach
14notification may also include any of the following:

15(A) Information about what the agency has done to protect
16individuals whose information has been breached.

17(B) Advice on steps that the person whose information has been
18breached may take to protect himself or herself.

19(e) Any agency that is required to issue a security breach
20notification pursuant to this section to more than 500 California
21residents as a result of a single breach of the security system shall
22electronically submit a single sample copy of that security breach
23notification, excluding any personally identifiable information, to
24the Attorney General. A single sample copy of a security breach
25notification shall not be deemed to be within subdivision (f) of
26Section 6254 of the Government Code.

27(f) For purposes of this section, “breach of the security of the
28system” means unauthorized acquisition of computerized data that
29compromises the security, confidentiality, or integrity of personal
30information maintained by the agency. Good faith acquisition of
31personal information by an employee or agent of the agency for
32the purposes of the agency is not a breach of the security of the
33system, provided that the personal information is not used or
34subject to further unauthorized disclosure.

35(g) For purposes of this section, “personal information” means
36begin deletean end deletebegin inserteither of the following: end insert

37begin insert(1)end insertbegin insertend insertbegin insertAn end insertindividual’s first name or first initial and last name in
38combination with any one or more of the following data elements,
39when either the name or the data elements are not encrypted:

begin delete

40(1)

end delete

P4    1begin insert(A)end insert Social security number.

begin delete

2(2)

end delete

3begin insert(B)end insert Driver’s license number or California Identification Card
4number.

begin delete

5(3)

end delete

6begin insert(C)end insert Account number, credit or debit card number, in
7combination with any required security code, access code, or
8password that would permit access to an individual’s financial
9account.

begin delete

10(4)

end delete

11begin insert(D)end insert Medical information.

begin delete

12(5)

end delete

13begin insert(E)end insert Health insurance information.

begin delete

14(6) Password, user name,

end delete

15begin insert(2)end insertbegin insertend insertbegin insertA user name or email address, in combination with a
16password end insert
or security question and answerbegin delete for an account other
17than a financialend delete
begin insert that would permit access to an onlineend insert account.

18(h) (1) For purposes of this section, “personal information”
19does not include publicly available information that is lawfully
20made available to the general public from federal, state, or local
21government records.

22(2) For purposes of this section, “medical information” means
23any information regarding an individual’s medical history, mental
24or physical condition, or medical treatment or diagnosis by a health
25care professional.

26(3) For purposes of this section, “health insurance information”
27means an individual’s health insurance policy number or subscriber
28identification number, any unique identifier used by a health insurer
29to identify the individual, or any information in an individual’s
30application and claims history, including any appeals records.

31(i) For purposes of this section, “notice” may be provided by
32one of the following methods:

33(1) Written notice.

34(2) Electronic notice, if the notice provided is consistent with
35the provisions regarding electronic records and signatures set forth
36in Section 7001 of Title 15 of the United States Code.

37(3) Substitute notice, if the agency demonstrates that the cost
38of providing notice would exceed two hundred fifty thousand
39dollars ($250,000), or that the affected class of subject persons to
40be notified exceeds 500,000, or the agency does not have sufficient
P5    1contact information. Substitute notice shall consist of all of the
2following:

3(A) begin deleteE-mail end deletebegin insertEmail end insertnotice when the agency has anbegin delete e-mailend deletebegin insert emailend insert
4 address for the subject persons.

5(B) Conspicuous posting of the notice on the agency’s Internet
6Web site page, if the agency maintains one.

7(C) Notification to major statewide media and the Office of
8Information Security within the California Technology Agency.

9(j) Notwithstanding subdivision (i), an agency that maintains
10its own notification procedures as part of an information security
11policy for the treatment of personal information and is otherwise
12consistent with the timing requirements of this part shall be deemed
13to be in compliance with the notification requirements of this
14section if it notifies subject persons in accordance with its policies
15in the event of a breach of security of the system.

16

SEC. 2.  

Section 1798.82 of the Civil Code is amended to read:

17

1798.82.  

(a) Any person or business that conducts business
18in California, and that owns or licenses computerized data that
19includes personal information, shall disclose any breach of the
20security of the system following discovery or notification of the
21breach in the security of the data to any resident of California
22whose unencrypted personal information was, or is reasonably
23believed to have been, acquired by an unauthorized person. The
24disclosure shall be made in the most expedient time possible and
25without unreasonable delay, consistent with the legitimate needs
26of law enforcement, as provided in subdivision (c), or any measures
27necessary to determine the scope of the breach and restore the
28reasonable integrity of the data system.

29(b) Any person or business that maintains computerized data
30that includes personal information that the person or business does
31not own shall notify the owner or licensee of the information of
32any breach of the security of the data immediately following
33discovery, if the personal information was, or is reasonably
34believed to have been, acquired by an unauthorized person.

35(c) The notification required by this section may be delayed if
36a law enforcement agency determines that the notification will
37impede a criminal investigation. The notification required by this
38section shall be made after the law enforcement agency determines
39that it will not compromise the investigation.

P6    1(d) Any person or business that is required to issue a security
2breach notification pursuant to this section shall meet all of the
3following requirements:

4(1) The security breach notification shall be written in plain
5language.

6(2) The security breach notification shall include, at a minimum,
7the following information:

8(A) The name and contact information of the reporting person
9or business subject to this section.

10(B) A list of the types of personal information that were or are
11reasonably believed to have been the subject of a breach.

12(C) If the information is possible to determine at the time the
13notice is provided, then any of the following: (i) the date of the
14breach, (ii) the estimated date of the breach, or (iii) the date range
15within which the breach occurred. The notification shall also
16include the date of the notice.

17(D) Whether notification was delayed as a result of a law
18enforcement investigation, if that information is possible to
19determine at the time the notice is provided.

20(E) A general description of the breach incident, if that
21information is possible to determine at the time the notice is
22provided.

23(F) The toll-free telephone numbers and addresses of the major
24credit reporting agencies if the breach exposed a social security
25number or a driver’s license or California identification card
26number.

27(3) At the discretion of the person or business, the security
28breach notification may also include any of the following:

29(A) Information about what the person or business has done to
30protect individuals whose information has been breached.

31(B) Advice on steps that the person whose information has been
32breached may take to protect himself or herself.

33(e) A covered entity under the federal Health Insurance
34Portability and Accountability Act of 1996 (42 U.S.C. Sec. 1320d
35et seq.) will be deemed to have complied with the notice
36requirements in subdivision (d) if it has complied completely with
37Section 13402(f) of the federal Health Information Technology
38for Economic and Clinical Health Act (Public Law 111-5).
39However, nothing in this subdivision shall be construed to exempt
40a covered entity from any other provision of this section.

P7    1(f) Any person or business that is required to issue a security
2breach notification pursuant to this section to more than 500
3California residents as a result of a single breach of the security
4system shall electronically submit a single sample copy of that
5security breach notification, excluding any personally identifiable
6information, to the Attorney General. A single sample copy of a
7security breach notification shall not be deemed to be within
8subdivision (f) of Section 6254 of the Government Code.

9(g) For purposes of this section, “breach of the security of the
10system” means unauthorized acquisition of computerized data that
11compromises the security, confidentiality, or integrity of personal
12information maintained by the person or business. Good faith
13acquisition of personal information by an employee or agent of
14the person or business for the purposes of the person or business
15is not a breach of the security of the system, provided that the
16personal information is not used or subject to further unauthorized
17disclosure.

18(h) For purposes of this section, “personal information” means
19begin deletean end deletebegin inserteither of the following: end insert

20begin insert(1)end insertbegin insertend insertbegin insertAn end insertindividual’s first name or first initial and last name in
21 combination with any one or more of the following data elements,
22when either the name or the data elements are not encrypted:

begin delete

23(1)

end delete

24begin insert(A)end insert Social security number.

begin delete

25(2)

end delete

26begin insert(B)end insert Driver’s license number or California Identification Card
27number.

begin delete

28(3)

end delete

29begin insert(C)end insert Account number, credit or debit card number, in
30combination with any required security code, access code, or
31password that would permit access to an individual’s financial
32account.

begin delete

33(4)

end delete

34begin insert(D)end insert Medical information.

begin delete

35(5)

end delete

36begin insert(E)end insert Health insurance information.

begin delete

37(6) Password, user name

end delete

38begin insert(2)end insertbegin insertend insertbegin insertA user name or email address, in combination with a
39password end insert
or security question and answer begin delete for an account other
40than a financialend delete
begin insert that would permit access to an onlineend insert account.

P8    1(i) (1) For purposes of this section, “personal information” does
2not include publicly available information that is lawfully made
3available to the general public from federal, state, or local
4government records.

5(2) For purposes of this section, “medical information” means
6any information regarding an individual’s medical history, mental
7or physical condition, or medical treatment or diagnosis by a health
8care professional.

9(3) For purposes of this section, “health insurance information”
10means an individual’s health insurance policy number or subscriber
11identification number, any unique identifier used by a health insurer
12to identify the individual, or any information in an individual’s
13application and claims history, including any appeals records.

14(j) For purposes of this section, “notice” may be provided by
15one of the following methods:

16(1) Written notice.

17(2) Electronic notice, if the notice provided is consistent with
18the provisions regarding electronic records and signatures set forth
19in Section 7001 of Title 15 of the United States Code.

20(3) Substitute notice, if the person or business demonstrates that
21the cost of providing notice would exceed two hundred fifty
22thousand dollars ($250,000), or that the affected class of subject
23persons to be notified exceeds 500,000, or the person or business
24does not have sufficient contact information. Substitute notice
25shall consist of all of the following:

26(A) begin deleteE-mail end deletebegin insertEmail end insertnotice when the person or business has an
27begin delete e-mailend deletebegin insert email end insert address for the subject persons.

28(B) Conspicuous posting of the notice on the Internet Web site
29page of the person or business, if the person or business maintains
30one.

31(C) Notification to major statewide media and the Office of
32Privacy Protection within the State and Consumer Services Agency.

33(k) Notwithstanding subdivision (j), a person or business that
34maintains its own notification procedures as part of an information
35security policy for the treatment of personal information and is
36otherwise consistent with the timing requirements of this part, shall
37be deemed to be in compliance with the notification requirements
38of this section if the person or business notifies subject persons in
P9    1accordance with its policies in the event of a breach of security of
2the system.



O

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