BILL ANALYSIS Ó SB 570 Page 1 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 Page 2 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 Page 3 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 SB 570 Page 4 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 Page 5