HF 2121

3rd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to commerce; requiring businesses that
possess personal data to notify persons whose personal
information has been disclosed to unauthorized
persons; proposing coding for new law in Minnesota
Statutes, chapter 325E.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [325E.61] DATA WAREHOUSES; NOTICE REQUIRED FOR
CERTAIN DISCLOSURES.
new text end

new text begin Subdivision 1. new text end

new text begin Disclosure of personal information; notice
required. new text end

new text begin (a) Any person or business that conducts business in
this state, and that owns or licenses data that includes
personal information, shall disclose any breach of the security
of the system following discovery or notification of the breach
in the security of the data to any resident of this state whose
unencrypted personal information was, or is reasonably believed
to have been, acquired by an unauthorized person. The
disclosure must be made in the most expedient time possible and
without unreasonable delay, consistent with the legitimate needs
of law enforcement, as provided in paragraph (c), or with any
measures necessary to determine the scope of the breach,
identify the individuals affected, and restore the reasonable
integrity of the data system.
new text end

new text begin (b) Any person or business that maintains data that
includes personal information that the person or business does
not own shall notify the owner or licensee of the information of
any breach of the security of the data immediately following
discovery, if the personal information was, or is reasonably
believed to have been, acquired by an unauthorized person.
new text end

new text begin (c) The notification required by this section may be
delayed to a date certain if a law enforcement agency
affirmatively determines that the notification will impede a
criminal investigation.
new text end

new text begin (d) For purposes of this section, "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 person or
business. Good faith acquisition of personal information by an
employee or agent of the person or business for the purposes of
the person or business is not a breach of the security system,
provided that the personal information is not used or subject to
further unauthorized disclosure.
new text end

new text begin (e) For purposes of this section, "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, when either the name or the data elements is not
encrypted:
new text end

new text begin (1) Social Security number;
new text end

new text begin (2) driver's license number or Minnesota identification
card number; or
new text end

new text begin (3) account number or 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.
new text end

new text begin (f) For purposes of this section, "personal information"
does not include publicly available information that is lawfully
made available to the general public from federal, state, or
local government records.
new text end

new text begin (g) For purposes of this section, "notice" may be provided
by one of the following methods:
new text end

new text begin (1) written notice to the most recent available address the
person or business has in its records;
new text end

new text begin (2) electronic notice, if the notice provided is consistent
with the provisions regarding electronic records and signatures
in United States Code, title 15, section 7001; or
new text end

new text begin (3) substitute notice, if the person or business
demonstrates that the cost of providing notice would exceed
$250,000, or that the affected class of subject persons to be
notified exceeds 500,000, or the person or business does not
have sufficient contact information. Substitute notice must
consist of all of the following:
new text end

new text begin (i) e-mail notice when the person or business has an e-mail
address for the subject persons;
new text end

new text begin (ii) conspicuous posting of the notice on the Web site page
of the person or business, if the person or business maintains
one; and
new text end

new text begin (iii) notification to major statewide media.
new text end

new text begin (h) Notwithstanding paragraph (g), a person or business
that maintains its own notification procedures as part of an
information security policy for the treatment of personal
information and is otherwise consistent with the timing
requirements of this section, shall be deemed to be in
compliance with the notification requirements of this section if
the person or business notifies subject persons in accordance
with its policies in the event of a breach of security of the
system.
new text end

new text begin Subd. 2. new text end

new text begin Coordination with consumer reporting agencies.
new text end

new text begin If a person discovers circumstances requiring notification under
this section of more than 500 persons at one time, the person
shall also notify, within 48 hours, all consumer reporting
agencies that compile and maintain files on consumers on a
nationwide basis, as defined by United States Code, title 15,
section 1681a, of the timing, distribution, and content of the
notices.
new text end

new text begin Subd. 3. new text end

new text begin Waiver prohibited. new text end

new text begin Any waiver of the provisions
of this section is contrary to public policy and is void and
unenforceable.
new text end

new text begin Subd. 4. new text end

new text begin Exemption. new text end

new text begin This section does not apply to any
"financial institution" as defined by United States Code, title
15, section 6809(3), and to entities subject to the federal
privacy and security regulations adopted under the federal
Health Insurance Portability and Accountability Act of 1996,
Public Law 104-191.
new text end

new text begin Subd. 5. new text end

new text begin Security assessments. new text end

new text begin Each government entity
shall conduct a comprehensive security assessment of any
personal information maintained by the government entity.
new text end

new text begin Subd. 6. new text end

new text begin Remedies and enforcement. new text end

new text begin The attorney general
shall enforce this section under section 8.31.
new text end

Sec. 2. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective January 1, 2006.
new text end