California SB 1386 – Personal
Information: Privacy
SB 1386 goes into affect on July 1, 2003. Under the law, covered parties
must disclose any breach of the security of personal data to any resident of
California whose unencrypted personal information was, or is reasonably
believed to have been, acquired by an unauthorized person.
The law applies to state agencies, or a person or business that conducts
business in California, that owns or licenses computerized data containing
personal information.
The bill would permit the required notifications to be delayed if a law
enforcement agency determines that it would impede a criminal investigation.
The bill would require an agency, person, or business that maintains
computerized data that includes personal information owned by another to notify
the owner or licensee of the information of any breach of security of the data.
"Breach of the security of the system" means unauthorized
acquisition of computerized data that compromises the security,
confidentiality, or integrity of personal information maintained by the
organization.
Good faith acquisition of personal information by an employee or agent of
the agency for the purposes of the agency is not a breach of the security of
the system, provided that the personal information is not used or subject to
further unauthorized disclosure.
"Personal information" means an individual's (first name or first
initial) and last name in combination with any one or more of the following
data elements, if 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.
"Personal information" does not include publicly available
information that is lawfully made available to the general public from federal,
state, or local government records.
"Notice" may be provided by one of the following methods:
- Written notice
- Electronic notice, if the notice provided is consistent with the provisions
regarding electronic records and signatures set forth in Section 7001 of Title
15 of the United States Code.
- Substitute notice, if the agency demonstrates that the cost of providing
notice would exceed two hundred fifty thousand dollars ($250,000), or that the
affected class of subject persons to be notified exceeds 500,000, or the agency
does not have sufficient contact information. Substitute notice shall consist
of all of the following:
- E-mail notice when the agency has an e-mail address for the subject
persons.
- Conspicuous posting of the notice on the agency's Web site page, if the
agency maintains one.
- Notification to major statewide media.
Note that existing laws regulate the maintenance and dissemination of
personal information by state agencies, and require each agency to keep an
accurate account of disclosures made pursuant to specified provisions. Existing
laws also require a business, to take all reasonable steps to destroy a
customer's records that contain personal information when the business will no
longer retain those records. Existing laws provide civil remedies for
violations of these provisions.
This article was summarized from the actual text of SB 1386, which is
available online. Auxillium West assumes no liability for errors, omissions
and/or misinterpretations arising from this summary of SB 1386.
