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PRIOR PRINTER'S NO. 2566
PRINTER'S NO. 2588
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1846
Session of
2017
INTRODUCED BY ELLIS, IRVIN, RABB, MILNE, PICKETT, BAKER, DAVIS,
QUIGLEY, BOBACK, CHARLTON, O'NEILL, GROVE, DRISCOLL, THOMAS,
MILLARD, JAMES, A. HARRIS, GODSHALL, KORTZ, C. QUINN,
D. COSTA, TOEPEL, TALLMAN, KAMPF, HEFFLEY, WATSON, SCHWEYER
AND DeLUCA, OCTOBER 13, 2017
AS REPORTED FROM COMMITTEE ON COMMERCE, HOUSE OF
REPRESENTATIVES, AS AMENDED, OCTOBER 16, 2017
AN ACT
Amending the act of December 22, 2005 (P.L.474, No.94), entitled
"An act providing for the notification of residents whose
personal information data was or may have been disclosed due
to a security system breach; and imposing penalties," further
providing for definitions and for notification of breach;
providing for notification; further providing for notice
exemption; providing for safeguarding of personal
information; and further providing for civil relief.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "breach of the security of the
system," "notice" and "personal information" in section 2 of the
act of December 22, 2005 (P.L.474, No.94), known as the Breach
of Personal Information Notification Act, are amended and the
section is amended by adding definitions to read:
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
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"Breach of the security of the system." The [unauthorized
access and acquisition of computerized data that materially
compromises] loss, unauthorized access, acquisition or use of
unencrypted data, encrypted data, the confidential process or
key that is capable of compromising the security or
confidentiality of personal information maintained by the entity
as part of a database of personal information regarding multiple
individuals [and that causes or the entity reasonably believes
has caused or will cause loss or injury to any resident of this
Commonwealth]. Good faith acquisition of personal information by
an employee or agent of the entity for the purposes of the
entity is not a breach of the security of the system if the
personal information is not used for a purpose other than the
lawful purpose of the entity and is not subject to further
unauthorized disclosure.
"Bureau." The Bureau of Consumer Protection in the Office of
Attorney General.
* * *
"Health insurance information." An individual's health
insurance policy number or subscriber identification number, a
unique identifier used by a health insurer to identify the
individual or information in an individual's application and
claims history, including appeals records.
* * *
"Medical information." Information regarding an individual's
medical history, mental or physical condition or medical
treatment or diagnosis by a health care professional.
"Notice." The term shall include notice of residents and
notice of Commonwealth.
"Notice of Commonwealth." Written notice to the Director of
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the Bureau of Consumer Protection of the Office of Attorney
General.
"Notice of residents." [May be provided by any] For
residents of this Commonwealth, any of the following methods of
notification:
(1) Written notice to the last known home address for
the individual.
(2) Telephonic notice, if the customer can be reasonably
expected to receive it and the notice is given in a clear and
conspicuous manner, describes the incident in general terms
and verifies personal information but does not require the
customer to provide personal information and the customer is
provided with a telephone number to call or Internet website
to visit for further information or assistance.
(3) E-mail notice, if a prior business relationship
exists and the person or entity has a valid e-mail address
for the individual.
(4) (i) Substitute notice, if the entity demonstrates
one of the following:
(A) The cost of providing notice would exceed
$100,000.
(B) The affected class of subject persons to be
notified exceeds 175,000.
(C) The entity does not have sufficient contact
information.
(ii) Substitute notice shall consist of all of the
following:
(A) E-mail notice when the entity has an e-mail
address for the subject persons.
(B) Conspicuous posting of the notice on the
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entity's Internet website if the entity maintains
one.
(C) Notification to major Statewide media.
"Personal information." Information that is under the
control of an individual, is not otherwise generally available
to the public through lawful means and is linked or linkable by
the person to a specific individual or linked to a device that
is associated with or routinely used by a specific individual,
including:
(1) An individual's first name or first initial and last
name in combination with and linked to any one or more of the
following data elements when the data elements are not
encrypted or redacted:
(i) Social Security number.
(ii) Driver's license number or a State
identification card number issued in lieu of a driver's
license.
(iii) Financial 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.
(1.1) Any of the following for an individual:
(i) A government-issued identification number,
including a tax identification number and a passport
number.
(ii) A postal address.
(iii) An e-mail address.
(iv) A telephone number.
(v) A fax number.
(vi) A debit or credit card number.
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(vii) Medical information.
(viii) Health insurance information.
(ix) A biometric identifier, including a fingerprint
or voice print.
(x) A unique persistent identifier, including:
(A) A number or alphanumeric string that
uniquely identifies a networked device.
(B) An identification number or service account
number, including a financial account number, credit
card or debit card number, health account number or
retail account number.
(C) A unique vehicle identifier, including a
vehicle identification number or license plate
number.
(D) A security code, access code or password
that is necessary to access an individual's service
account.
(xi) A unique identifier or other uniquely assigned
or descriptive information about a personal computing or
communication device.
(xii) Information that is collected, created,
processed, used, disclosed, stored or otherwise
maintained and linked or linkable by the person to any of
the information enumerated under this paragraph.
(1) AN INDIVIDUAL'S FIRST NAME OR FIRST INITIAL AND LAST
NAME IN COMBINATION WITH AND LINKED TO ANY ONE OR MORE OF THE
FOLLOWING DATA ELEMENTS WHEN EITHER THE NAME OR THE DATA
ELEMENTS ARE NOT ENCRYPTED OR REDACTED:
(I) [SOCIAL SECURITY NUMBER.] IDENTIFICATION
NUMBERS, SUCH AS:
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(A) SOCIAL SECURITY NUMBER.
(B) DRIVER'S LICENSE NUMBER.
(C) STATE IDENTIFICATION CARD NUMBER ISSUED IN
LIEU OF A DRIVER'S LICENSE.
(D) PASSPORT NUMBER.
(E) TAXPAYER IDENTIFICATION NUMBER.
(F) PATIENT IDENTIFICATION NUMBER.
(G) INSURANCE MEMBER NUMBER.
(H) EMPLOYEE IDENTIFICATION NUMBER.
(II) [DRIVER'S LICENSE NUMBER OR A STATE
IDENTIFICATION CARD NUMBER ISSUED IN LIEU OF A DRIVER'S
LICENSE.] OTHER ASSOCIATED NAMES, SUCH AS:
(A) MAIDEN NAME.
(B) MOTHER'S MAIDEN NAME.
(C) ALIAS.
(III) FINANCIAL ACCOUNT NUMBER, CREDIT OR DEBIT CARD
NUMBER, ALONE OR IN COMBINATION WITH ANY REQUIRED
EXPIRATION DATE, SECURITY CODE, ACCESS CODE OR PASSWORD
THAT WOULD PERMIT ACCESS TO AN INDIVIDUAL'S FINANCIAL
ACCOUNT.
(IV) ELECTRONIC IDENTIFIER OR ROUTING CODE, IN
COMBINATION WITH ANY REQUIRED SECURITY CODE, ACCESS CODE
OR PASSWORD THAT WOULD PERMIT ACCESS TO AN INDIVIDUAL'S
FINANCIAL ACCOUNT.
(V) ELECTRONIC ACCOUNT INFORMATION, SUCH AS ACCOUNT
NAME OR USER NAME.
(VI) INTERNET PROTOCOL (IP) OR MEDIA ACCESS CONTROL
(MAC) ADDRESS OR OTHER HOST-SPECIFIC PERSISTENT STATIC
IDENTIFIER THAT CONSISTENTLY LINKS TO A PARTICULAR
INDIVIDUAL OR SMALL, WELL-DEFINED GROUP OF INDIVIDUALS.
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(VII) BIOMETRIC DATA, SUCH AS GENETIC INFORMATION, A
FINGERPRINT, FACIAL SCAN, RETINA OR IRIS IMAGE, VOICE
SIGNATURE, X-RAY IMAGE OR OTHER UNIQUE PHYSICAL
REPRESENTATION OR DIGITAL REPRESENTATION OF BIOMETRIC
DATA.
(VIII) DATE OF BIRTH.
(IX) PLACE OF BIRTH.
(X) INSURANCE INFORMATION.
(XI) EMPLOYMENT INFORMATION.
(XII) EDUCATION INFORMATION.
(XIII) VEHICLE INFORMATION, SUCH AS:
(A) REGISTRATION NUMBER.
(B) TITLE NUMBER.
(XIV) CONTACT INFORMATION, SUCH AS:
(A) TELEPHONE NUMBER.
(B) ADDRESS.
(C) E-MAIL ADDRESS.
(XV) DIGITIZED OR OTHER ELECTRONIC SIGNATURE.
(2) The term does not include publicly available
information that is lawfully made available to the general
public from Federal, State or local government records.
* * *
Section 2. Section 3(a) of the act is amended and the
section is amended by adding subsections to read:
Section 3. Notification of breach.
(a) General rule.--An entity that maintains, stores or
manages computerized data that includes personal information
shall provide notice of any breach of the security of the system
following discovery of the breach of the security of the system
[to any resident of this Commonwealth whose unencrypted and
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unredacted personal information was or is reasonably believed to
have been accessed and acquired by an unauthorized person].
Except as provided in section 4 or in order to take any measures
necessary to determine the scope of the breach and to restore
the reasonable integrity of the data system, the notice shall be
made without unreasonable delay. For the purpose of this
section, a resident of this Commonwealth may be determined to be
an individual whose principal mailing address, as reflected in
the computerized data which is maintained, stored or managed by
the entity, is in this Commonwealth.
* * *
(d) Notice to residents of this Commonwealth.--
(1) Notification must be in plain language.
(2) Notice of the breach of the security of the system
under this section shall be made to the affected residents of
this Commonwealth and must include the following:
(i) The date, estimated date or date range of the
breach of the security of the system.
(ii) Whether the notification was delayed as a
result of a law enforcement investigation.
(iii) A list of types of information that were or
are believed to have been subject to the breach of the
security of the system.
(iv) A general description of the breach of the
security of the system.
(v) Toll-free telephone numbers and addresses of
consumer reporting agencies if the breach of the security
of the system exposed a Social Security number or an
identification card number.
(vi) The name and contact information of the
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reporting agency that was notified under section 5.
(3) The entity providing notice under this subsection
may include information about what the entity has done to
protect affected individuals and offer advice on what steps
affected individuals may take to protect their information
and what steps the individual whose information has been
breached may take to protect himself or herself.
(4) Notice under this subsection shall be made within 30
45 days of learning of the breach of the security of the
system.
(e) Notice to Attorney General.--
(1) Notice of the breach of the security of the system
under this section shall be made to the bureau .
(2) Notice under this subsection must include the
following:
(i) The nature of the breach of the security of the
system.
(ii) The number of residents of this Commonwealth
affected by the breach of the security of the system.
(iii) Steps taken by the entity relating to the
breach of the security of the system.
(3) Notice under this subsection shall be made within 30
days of the breach of the security of the system.
(f) State agencies.--If a State agency is the subject of a
breach of security of the system, the State agency must provide
notice of the breach of security of the system required under
subsection (a) without unreasonable delay following discovery of
the breach. A State agency under the Governor's jurisdiction
shall provide notice of a breach of the security of the system
to the Governor's Office of Administration without unreasonable
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delay. Notification under this subsection shall occur
notwithstanding the procedures and policies under section 7.
(g) Counties, school districts and municipalities.--A
county, s chool district or municipality shall provide notice to
the district attorney in the county in which the breach occurred
of a breach of the security of the system required under
subsection (a) without unreasonable delay following discovery of
the breach. Notification under this subsection shall occur
notwithstanding the procedures and policies under section 7.
Section 3. The act is amended by adding a section to read:
Section 5.1. Notification.
When an entity provides notification under this act, the
entity shall also notify, without unreasonable delay, the bureau
of the timing, distribution and number of notices and any other
information as required by the bureau.
Section 4. Section 7(b) of the act is amended by adding a
paragraph to read:
Section 7. Notice exemption.
* * *
(b) Compliance with Federal requirements.--
* * *
(3) If an entity does not have a Federal or state
notification rule, regulation, procedure or guideline in
effect, the entity must comply with this act.
Section 5. The act is amended by adding a section to read:
Section 7.1. Safeguarding of personal information.
(a) Duty.--Any entity in possession of personal information
of another person shall safeguard the data, computer files or
documents containing the information from misuse by third
parties and shall destroy, erase or make unreadable such data,
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computer files or documents prior to disposal.
(b) Policy.--The entity shall develop a policy to govern the
proper storage of data which includes personally identifiable
information. The policy shall address identifying, collecting,
maintaining, displaying and transferring personally identifiable
information, using personally identifiable information in test
environments, remediating personally identifiable information
stored on legacy systems and other relevant issues. A goal of
the policy shall be to reduce the risk of future breaches of
security of the system.
(c) Privacy protection policy.--An entity that collects
personal information in the course of business shall create a
privacy protection policy, which shall be published or publicly
displayed, including posting on an Internet web page. The policy
shall protect the confidentiality of the personal information,
prohibit unlawful disclosure of personal information and limit
access to personal information. This subsection shall not apply
to a Commonwealth agency or a political subdivision.
(d) Disposal policy.--
(1) When disposing of records, each entity shall meet
the following minimum standards for proper disposal of
records containing personal information:
(i) Paper records containing personal information
shall be either redacted, burned, pulverized or shredded
so that personal data cannot practicably be read or
reconstructed.
(ii) Electronic records and other nonpaper records
containing personal information shall be destroyed or
erased so that personal information cannot practicably be
read or reconstructed.
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(2) An entity disposing of personal information may
contract with a third party to dispose of personal
information in accordance with this section. A third party
hired to dispose of material containing personal information
shall implement and monitor compliance with policies and
procedures that prohibit unauthorized access to or
acquisition of or use of personal information during the
collection, transportation and disposal of personal
information.
(e) Unfair methods of competition and unfair or deceptive
acts or practices.--The following shall be considered unfair
methods of competition and unfair or deceptive acts or practices
by an entity that collects or possesses personal information:
(1) Failing to create a storage policy as described
under subsection (b).
(2) Failing to create, publish or publicly display or
comply with a privacy protection policy as described under
subsection (c).
(3) Failing to dispose of records in a manner described
under subsection (d).
(4) Failing to provide consumers with opt-out consent
prior to the entity using, disclosing or permitting a third
party to have access to personal information of consumers or
failing to provide consumer with a means to withdraw a
previous consent.
(5) Refusing to provide service to consumers who
exercise their right to opt out of an entity using,
disclosing or permitting a third party from having access to
their personal information.
(6) Failing to reasonably safeguard or protect personal
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information, maintained by an entity or a vendor, from a
breach of the security of the system.
Section 6 5. Section 8 of the act is amended to read:
Section 8. Civil relief.
A violation of this act shall be deemed to be an unfair
method of competition and an unfair or deceptive act or practice
in violation of the act of December 17, 1968 (P.L.1224, No.387),
known as the Unfair Trade Practices and Consumer Protection Law.
The Office of Attorney General shall have exclusive authority to
bring an action under the Unfair Trade Practices and Consumer
Protection Law for a violation of this act.
Section 7 6. This act shall take effect in 60 days.
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