BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 570


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          SENATE THIRD READING


          SB  
          570 (Jackson)


          As Amended  September 1, 2015


          Majority vote


          SENATE VOTE:  27-11


           -------------------------------------------------------------------- 
          |Committee       |Votes|Ayes                   |Noes                 |
          |                |     |                       |                     |
          |                |     |                       |                     |
          |                |     |                       |                     |
          |----------------+-----+-----------------------+---------------------|
          |Privacy         |11-0 |Gatto, Wilk, Baker,    |                     |
          |                |     |Calderon, Chang, Chau, |                     |
          |                |     |Cooper, Dababneh,      |                     |
          |                |     |Dahle, Gordon, Low     |                     |
          |                |     |                       |                     |
          |----------------+-----+-----------------------+---------------------|
          |Appropriations  |16-0 |Gomez, Bigelow, Bloom, |                     |
          |                |     |Bonta, Calderon,       |                     |
          |                |     |Chang, Daly, Eggman,   |                     |
          |                |     |Gallagher, Eduardo     |                     |
          |                |     |Garcia, Jones, Quirk,  |                     |
          |                |     |Rendon, Wagner, Weber, |                     |
          |                |     |Wood                   |                     |
          |                |     |                       |                     |
          |                |     |                       |                     |
           -------------------------------------------------------------------- 









                                                                     SB 570


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          SUMMARY: Creates a standard format for data breach notices with  
          subheadings to improve readability, improves access to  
          substitute data breach notices by requiring a conspicuous link  
          to the substitute notice on the businesses or agency Internet  
          homepage, and requires the link and the notice to remain posted  
          for at least 30 days.  Specifically, this bill:  


          1)Requires data breach notices to be titled "Notice of Data  
            Breach" and requires the content of the breach notice to be  
            presented under specific headings:  "What Happened," "What  
            Information Was Involved," "What We Are Doing," "What You Can  
            Do," and "For More Information." 


          2)Provides an optional model security breach notification form  
            in table format and specifies that use of the model form  
            constitutes compliance with the bill. 


          3)Requires conspicuous posting of a substitute breach notice on  
            the business or agency Web site for at least 30 days. 


          4)Contains double-jointing language to avoid chaptering  
            conflicts with AB 964 (Chau) and SB 34 (Hill) of the current  
            legislative session.


          EXISTING LAW:  


          1)Requires, under the Data Breach Notification Law (DBNL), a  
            public agency, person, or business that owns or licenses  
            computerized data that includes personal information to notify  
            any California resident whose unencrypted personal information  
            was acquired, or reasonably believed to have been acquired, by  
            an unauthorized person.  The notice must be made in the most  








                                                                     SB 570


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            expedient time possible and without unreasonable delay,  
            consistent with the legitimate needs of law enforcement, as  
            specified.  Note that this requirement does not apply to the  
            Judiciary, the Legislature, or the University of California.   
            (Civil Code (CC) Sections 1798.29(a), (c); 1798.82(a), (c))
          2)Requires a person or business that is the source of a breach  
            of Social Security numbers or driver's license numbers, and is  
            required to provide notice of the breach, to offer appropriate  
            identity theft protection or mitigation services to affected  
            individuals at no cost, for no less than 12 months.  (CC  
            Section 1798.82 (d)(2)(G))


          3)Requires a public agency, person, or business that maintains  
            computerized data that includes personal information that the  
            agency, person, or business does not own to notify the owner  
            or licensee of the information of any security breach  
            immediately following discovery if the personal information  
            was, or is reasonably believed to have been, acquired by an  
            unauthorized person.  (CC Sections 1798.29(b), 1798.82(b))


          4)Defines "personal information," for purposes of the breach  
            notification statute, to include the individual's first name  
            or first initial and last name in combination with one or more  
            of the following data elements, when either the name or the  
            data elements are not encrypted:  Social Security number;  
            driver's license number or California Identification Card  
            number; account number, 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; medical information; or health insurance information.  
             "Personal information" does not include publicly available  
            information that is lawfully made available to the general  
            public from federal, state, or local government records.  (CC  
            Sections1798.29(g), (h), 1798.82(h), (i))


          FISCAL EFFECT:  According to the Senate Appropriations  








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          Committee, minor costs to revise the form (General/Specials).


          COMMENTS:  A 2014 report by the California Department of Justice  
          (DOJ) recommends improving the readability of breach notices.   
          This bill seeks to improve breach notice readability by changing  
          the format in which breach information is communicated to  
          affected consumers.  This bill directs breached entities to  
          present the information under the following five headings:


          1)What Happened
          2)What Information Was Involved


          3)What We Are Doing


          4)What You Can Do


          5)For More Information


          The DOJ report also suggests, among other things, posting the  
          link to the substitute notice on the business's Web site  
          homepage, labeling it clearly, and leaving the link and the  
          notice page up for at least 30 days. This bill implements those  
          recommendations by requiring substitute breach notices to be  
          conspicuously posted and left up for at least 30 days.




          Analysis Prepared by:                                             
                          Jennie Bretschneider / P. & C.P. / (916)  
                          319-2200                                         
          FN: 0001860









                                                                     SB 570


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