AB 964, as amended, Chau. Civil law: privacy.
Existing law requires a person or business conducting business in California,begin insert or any state or local agency,end insert that owns or licenses computerized data that includes personal information, as defined, to disclose in specified ways, a 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 requires the disclosure to be made in the most expedient time possible and without unreasonable delay, consistent with the legitimate needs of law enforcement, or any measures necessary to determine the scope of the breach and restore the reasonable integrity of the data system.
This bill would instead require the disclosure to be made within 30 days, consistent with the legitimate needs of law enforcement.
end deleteThe bill would authorize the Attorney General to grant a person or business an additional period of time, not exceeding 30 days, in which to make the disclosure if the Attorney General determines that the person or business needs additional time in order to determine the scope of the security breach, prevent further disclosures, conduct a risk assessment, restore the integrity of the data system, or provide notice to an entity designated to receive reports and information about information security incidents.
end deleteThe bill would also provide that if the data containing personal information was encrypted, as defined, there would be a presumption that a breach of the security of the data does not compromise the security, confidentiality, or integrity of the personal information, and no disclosure would be required. That presumption would be rebuttable in a civil action against a person or business for failure to comply with these provisions by facts demonstrating that in the present instance, the security technologies or methodologies used to encrypt the data have been, or are reasonably likely to have been, compromised.
end deleteThis bill would define “encrypted” for purpose of these provisions to mean rendered unusable, unreadable, or indecipherable through a security technology or methodology generally accepted in the field of information technology.
end insertbegin insertExisting law requires a person, business, or a state or local agency, that is required to issue a security breach notification to more than 500 California residents as a result of a single breach of the security system to electronically submit a single sample copy of that security breach notification to the Attorney General.
end insertbegin insertThis bill would also require a person or business, or state or local agency that is required to issue a security breach notification under these circumstances to inform the Attorney General of the date of the discovery of the breach.
end insertVote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
begin insertSection 1798.29 of the end insertbegin insertCivil Codeend insertbegin insert is amended to
2read:end insert
(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
P3 1disclosure shall be made in the most expedient time possible and
2without unreasonable delay, consistent with the legitimate needs
3of law enforcement, as provided in subdivision (c), or any measures
4necessary to determine the scope of the breach and restore the
5reasonable integrity of the data system.
6(b) Any agency that maintains computerized data that includes
7personal information that
the agency does not own shall notify the
8owner or licensee of the information of any breach of the security
9of the data immediately following discovery, if the personal
10information was, or is reasonably believed to have been, acquired
11by an unauthorized person.
12(c) The notification required by this section may be delayed if
13a law enforcement agency determines that the notification will
14impede a criminal investigation. The notification required by this
15section shall be made after the law enforcement agency determines
16that it will not compromise the investigation.
17(d) Any agency that is required to issue a security breach
18notification pursuant to this section shall meet all of the following
19requirements:
20(1) The security breach notification shall be written in plain
21language.
22(2) The security breach notification shall include, at a minimum,
23the following information:
24(A) The name and contact information of the reporting agency
25subject to this section.
26(B) A list of the types of personal information that were or are
27reasonably believed to have been the subject of a breach.
28(C) If the information is possible to determine at the time the
29notice is provided, then any of the following: (i) the date of the
30breach, (ii) the estimated date of the breach, or (iii) the date range
31within which the breach occurred. The notification shall also
32include the date of the notice.
33(D) Whether the notification was delayed as a result of a law
34enforcement investigation, if that
information is possible to
35determine at the time the notice is provided.
36(E) A general description of the breach incident, if that
37information is possible to determine at the time the notice is
38provided.
39(F) The toll-free telephone numbers and addresses of the major
40credit reporting agencies, if the breach exposed a social security
P4 1number or a driver’s license or California identification card
2number.
3(3) At the discretion of the agency, the security breach
4notification may also include any of the following:
5(A) Information about what the agency has done to protect
6individuals whose information has been breached.
7(B) Advice on steps that the person whose information has been
8breached may
take to protect himself or herself.
9(4) In the case of a breach of the security of the system involving
10personal information defined in paragraph (2) of subdivision (g)
11for an online account, and no other personal information defined
12in paragraph (1) of subdivision (g), the agency may comply with
13this section by providing the security breach notification in
14electronic or other form that directs the person whose personal
15information has been breached to promptly change his or her
16password and security question or answer, as applicable, or to take
17other steps appropriate to protect the online account with the
18agency and all other online accounts for which the person uses the
19same user name or email address and password or security question
20or answer.
21(5) In the case of a breach of the security of the system involving
22personal information defined in paragraph (2) of subdivision (g)
23
for login credentials of an email account furnished by the agency,
24the agency shall not comply with this section by providing the
25security breach notification to that email address, but may, instead,
26comply with this section by providing notice by another method
27described in subdivision (i) or by clear and conspicuous notice
28delivered to the resident online when the resident is connected to
29the online account from an Internet Protocol address or online
30location from which the agency knows the resident customarily
31accesses the account.
32(e) Any agency that is required to issue a security breach
33notification pursuant to this section to more than 500 California
34residents as a result of a single breach of the security system shall
35begin insert inform the Attorney General of the date of the discovery of the
36breach, andend insert
electronically submit a single sample copy of that
37security breach notification, excluding any personally identifiable
38information, to the Attorney General. A single sample copy of a
39security breach notification shall not be deemed to be within
40subdivision (f) of Section 6254 of the Government Code.
P5 1(f) For purposes of this section, “breach of the security of the
2system” means unauthorized acquisition of computerized data that
3compromises the security, confidentiality, or integrity of personal
4information maintained by the agency. Good faith acquisition of
5personal information by an employee or agent of the agency for
6the purposes of the agency is not a breach of the security of the
7system, provided that the personal information is not used or
8subject to further unauthorized disclosure.
9(g) For purposes of this section, “personal information” means
10either of the
following:
11(1) An individual’s first name or first initial and last name in
12combination with any one or more of the following data elements,
13when either the name or the data elements are not encrypted:
14(A) Social security number.
15(B) Driver’s license number or California identification card
16number.
17(C) Account number, credit or debit card number, in
18combination with any required security code, access code, or
19password that would permit access to an individual’s financial
20account.
21(D) Medical information.
22(E) Health insurance information.
23(2) A user name or email
address, in combination with a
24password or security question and answer that would permit access
25to an online account.
26(h) (1) For purposes of this section, “personal information”
27does not include publicly available information that is lawfully
28made available to the general public from federal, state, or local
29government records.
30(2) For purposes of this section, “medical information” means
31any information regarding an individual’s medical history, mental
32or physical condition, or medical treatment or diagnosis by a health
33care professional.
34(3) For purposes of this section, “health insurance information”
35means an individual’s health insurance policy number or subscriber
36identification number, any unique identifier used by a health insurer
37to identify the individual, or any information in an
individual’s
38application and claims history, including any appeals records.
39(4) For purposes of this section, “encrypted” means rendered
40unusable, unreadable, or indecipherable through a security
P6 1technology or methodology generally accepted in the field of
2information security.
3(i) For purposes of this section, “notice” may be provided by
4one of the following methods:
5(1) Written notice.
6(2) Electronic notice, if the notice provided is consistent with
7the provisions regarding electronic records and signatures set forth
8in Section 7001 of Title 15 of the United States Code.
9(3) Substitute notice, if the agency demonstrates that the cost
10of providing notice would exceed two hundred fifty thousand
11dollars ($250,000), or that the affected class of subject persons to
12be notified exceeds 500,000, or the agency does not have sufficient
13contact information. Substitute notice shall consist of all of the
14following:
15(A) Email notice when the agency has an email address for the
16subject persons.
17(B) Conspicuous posting of the notice on the agency’s Internet
18Web site page, if the agency maintains one.
19(C) Notification to major statewide media and the Office of
20Information Security within the Department of Technology.
21(j) Notwithstanding subdivision (i), an agency that maintains
22its own notification procedures as part of an
information security
23policy for the treatment of personal information and is otherwise
24consistent with the timing requirements of this part shall be deemed
25to be in compliance with the notification requirements of this
26section if it notifies subject persons in accordance with its policies
27in the event of a breach of security of the system.
28(k) Notwithstanding the exception specified in paragraph (4) of
29subdivision (b) of Section 1798.3, for purposes of this section,
30“agency” includes a local agency, as defined in subdivision (a) of
31Section 6252 of the Government Code.
Section 1798.82 of the Civil Code is amended to read:
(a) begin delete(1)end deletebegin delete end deleteA person or business that conducts business
35in California, and that owns or licenses computerized data that
36includes personal information, shall disclose a breach of the
37security of the system following discovery or notification, pursuant
38to subdivision (b), of the breach in the security of the data to a
39resident of California whose unencrypted personal information
40was, or is reasonably believed to have been, acquired by an
P7 1unauthorized person. The disclosure shall be made in the most
2expedient time possible andbegin delete within 30 days,end deletebegin insert
without unreasonable
3delay,end insert consistent with the legitimate needs of law enforcement, as
4provided in subdivisionbegin delete (c).end deletebegin insert (c), or any measures reasonably
5necessary to determine the scope of the breach and restore the
6reasonable integrity of the data system.end insert
7(2) If the data containing personal information was encrypted,
8there shall be a presumption that a breach of the data does not
9comprise the security, confidentiality, or integrity of the personal
10
information contained therein, and no disclosure is required. That
11presumption shall be rebuttable in a civil action pursuant to
12subdivision (b) of Section 1798.84 against a person or business
13for failure to make the required disclosure by facts demonstrating
14that in the present instance the security technologies or
15methodologies used to encrypt the data have been, or are reasonably
16likely to have been, compromised and disclosure is required in
17accordance with paragraph (1).
18(3) If a person or business requires additional time to disclose
19a breach, it shall provide the Attorney General records or other
20evidence demonstrating the need to delay disclosure. If the
21Attorney General determines that the person or business needs
22additional time in order to determine the scope of a security breach,
23prevent further disclosures, conduct a risk
assessment, restore the
24integrity of the data system, or provide notice to an entity
25designated to receive reports and information about information
26security incidents, threats, and vulnerabilities, it may grant the
27person or business an additional period of time, not exceeding 30
28days, in which to make the disclosure. The Attorney General shall
29grant additional time to make the disclosure in writing specifying
30the amount of additional time granted.
31(b) A person or business that maintains computerized data that
32includes personal information that the person or business does not
33own shall notify the owner or licensee of the information of the
34breach of the security of the data immediately following discovery,
35if the personal information was, or is reasonably believed to have
36been,
acquired by an unauthorized person.
37(c) The notification required by this section may be delayed if
38a law enforcement agency determines that the notification will
39impede a criminal investigation. The notification required by this
P8 1section shall be made promptly after the law enforcement agency
2determines that it will not compromise the investigation.
3(d) A person or business that is required to issue a security
4breach notification pursuant to this section shall meet all of the
5following requirements:
6(1) The security breach notification shall be written in plain
7language.
8(2) The security breach notification shall include, at a minimum,
9the following
information:
10(A) The name and contact information of the reporting person
11or business subject to this section.
12(B) A list of the types of personal information that were or are
13reasonably believed to have been the subject of a breach.
14(C) If the information is possible to determine at the time the
15notice is provided, then any of the following: (i) the date of the
16breach, (ii) the estimated date of the breach, or (iii) the date range
17within which the breach occurred. The notification shall also
18include the date of the notice.
19(D) Whether notification was delayedbegin delete pursuant to paragraph (3)
as a result of a law enforcement investigation,
20of subdivision (a) orend delete
21if that information is possible to determine at the time the notice
22is provided.
23(E) A general description of the breach incident, if that
24information is possible to determine at the time the notice is
25provided.
26(F) The toll-free telephone numbers and addresses of the major
27credit reporting agencies if the breach exposed a social security
28number or a driver’s license or California identification card
29number.
30(G) If the person or business providing the notification was the
31source of the breach, an offer to provide appropriate identity theft
32prevention and mitigation services, if any, shall be provided at no
33cost to the affected person for not less than
12 months, along with
34all information necessary to take advantage of the offer to any
35person whose information was or may have been breached if the
36breach exposed or may have exposed personal information defined
37in subparagraphs (A) and (B) of paragraph (1) of subdivision (h).
38(3) At the discretion of the person or business, the security
39breach notification may also include any of the following:
P9 1(A) Information about what the person or business has done to
2protect individuals whose information has been breached.
3(B) Advice on steps that the person whose information has been
4breached may take to protect himself or herself.
5(4) In the case of a breach of the security
of the system involving
6personal information defined in paragraph (2) of subdivision (h)
7for an online account, and no other personal information defined
8in paragraph (1) of subdivision (h), the person or business may
9comply with this section by providing the security breach
10notification in electronic or other form that directs the person whose
11personal information has been breached promptly to change his
12or her password and security question or answer, as applicable, or
13to take other steps appropriate to protect the online account with
14the person or business and all other online accounts for which the
15person whose personal information has been breached uses the
16same user name or email address and password or security question
17or answer.
18(5) In the case of a breach of the security of the system involving
19personal information defined
in paragraph (2) of subdivision (h)
20for login credentials of an email account furnished by the person
21or business, the person or business shall not comply with this
22section by providing the security breach notification to that email
23address, but may, instead, comply with this section by providing
24notice by another method described in subdivision (j) or by clear
25and conspicuous notice delivered to the resident online when the
26resident is connected to the online account from an Internet
27Protocol address or online location from which the person or
28business knows the resident customarily accesses the account.
29(e) A covered entity under the federal Health Insurance
30Portability and Accountability Act of 1996 (42 U.S.C. Sec. 1320d
31et seq.) will be deemed to have complied with the notice
32requirements in subdivision (d) if it has complied completely with
33Section
13402(f) of the federal Health Information Technology
34for Economic and Clinical Health Act (Public Law 111-5).
35However, nothing in this subdivision shall be construed to exempt
36a covered entity from any other provision of this section.
37(f) A person or business that is required to issue a security breach
38notification pursuant to this section to more than 500 California
39residents as a result of a single breach of the security system shall
40begin insert inform the Attorney General of the date of the discovery of the
P10 1breach, andend insert electronically submit a single sample copy of that
2security breach notification, excluding any personally identifiable
3information, to the Attorney General. A single sample copy of a
4security breach notification shall not be deemed to be within
5
subdivision (f) of Section 6254 of the Government Code.
6(g) For purposes of this section, “breach of the security of the
7system” means unauthorized acquisition of computerized data that
8compromises the security, confidentiality, or integrity of personal
9information maintained by the person or business. Good faith
10acquisition of personal information by an employee or agent of
11the person or business for the purposes of the person or business
12is not a breach of the security of the system, provided that the
13personal information is not used or subject to further unauthorized
14disclosure.
15(h) For purposes of this section, “personal information” means
16either of the following:
17(1) An individual’s first name or first
initial and last name in
18combination with any one or more of the following data elements,
19when either the name or the data elements are not encrypted:
20(A) Social security number.
21(B) Driver’s license number or California identification card
22number.
23(C) Account number, credit or debit card number, in
24combination with any required security code, access code, or
25password that would permit access to an individual’s financial
26account.
27(D) Medical information.
28(E) Health insurance information.
29(2) A user name or email address, in combination
with a
30password or security question and answer that would permit access
31to an online account.
32(i) (1) For purposes of this section, “personal information” does
33not include publicly available information that is lawfully made
34available to the general public from federal, state, or local
35government records.
36(2) For purposes of this section, “medical information” means
37any information regarding an individual’s medical history, mental
38or physical condition, or medical treatment or diagnosis by a health
39care professional.
P11 1(3) For purposes of this section, “health insurance information”
2means an individual’s health insurance policy number or subscriber
3identification number, any unique identifier
used by a health insurer
4to identify the individual, or any information in an individual’s
5application and claims history, including any appeals records.
6(4) For purposes of this section, “encrypted” means rendered
7unusable, unreadable, or indecipherable through a security
8technology or methodology generally accepted in the field of
9information security.
10(j) For purposes of this section, “notice” may be provided by
11one of the following methods:
12(1) Written notice.
13(2) Electronic notice, if the notice provided is consistent with
14the provisions regarding electronic records and signatures set forth
15in Section 7001 of Title 15 of the United States Code.
16(3) Substitute notice, if the person or business demonstrates that
17the cost of providing notice would exceed two hundred fifty
18thousand dollars ($250,000), or that the affected class of subject
19persons to be notified exceeds 500,000, or the person or business
20does not have sufficient contact information. Substitute notice
21shall consist of all of the following:
22(A) Email notice when the person or business has an email
23address for the subject persons.
24(B) Conspicuous posting of the notice on the Internet Web site
25page of the person or business, if the person or business maintains
26one.
27(C) Notification to major statewide media.
28(k) Notwithstanding subdivision (j), a person or business that
29maintains its own notification procedures as part of an information
30security policy for the treatment of personal information and is
31otherwise consistent with the timing requirements of this part, shall
32be deemed to be in compliance with the notification requirements
33of this section if the person or business notifies subject persons in
34accordance with its policies in the event of a breach of security of
35the system.
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