Bill Text: IL HB2871 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Creates the Data Broker Registration Act. Requires a data broker to annually register with the Secretary of State. Defines "data broker" as a business or unit of a business, separately or together, that knowingly collects and sells or licenses to third parties the brokered personal information of a consumer with whom the business does not have a direct relationship. Provides registration requirements, the duties a data broker has to protect personally identifiable information, and the requirements for an information security program. Effective January 1, 2020.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2019-03-29 - Rule 19(a) / Re-referred to Rules Committee [HB2871 Detail]

Download: Illinois-2019-HB2871-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB2871 Introduced , by Rep. Celina Villanueva SYNOPSIS AS INTRODUCED:
New Act
Creates the Data Broker Registration Act. Requires a data broker to annually register with the Secretary of State. Defines "data broker" as a business or unit of a business, separately or together, that knowingly collects and sells or licenses to third parties the brokered personal information of a consumer with whom the business does not have a direct relationship. Provides registration requirements, the duties a data broker has to protect personally identifiable information, and the requirements for an information security program. Effective January 1, 2020.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the Data
Broker Registration Act.
Section 5. Definitions.
"Brokered personal information" means one or more of the
following computerized data elements about a consumer, if
categorized or organized for dissemination to third parties:
(1) name;
(2) address;
(3) date of birth;
(4) place of birth;
(5) mother's maiden name;
(6) unique biometric data generated from measurements
or technical analysis of human body characteristics used by
the owner or licensee of the data to identify or
authenticate the consumer, such as a fingerprint, retina or
iris image, or other unique physical representation or
digital representation of biometric data;
(7) name or address of a member of the consumer's
immediate family or household;
(8) social security number or other government-issued

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identification number; or
(9) other information that, alone or in combination
with the other information sold or licensed, would allow a
reasonable person to identify the consumer with reasonable
certainty.
"Brokered personal information" does not include publicly
available information to the extent that it is related to a
consumer's business or profession.
"Data broker" means a business or unit of a business,
separately or together, that knowingly collects and sells or
licenses to third parties the brokered personal information of
a consumer with whom the business does not have a direct
relationship.
"Data broker security breach" means an unauthorized
acquisition or a reasonable belief of an unauthorized
acquisition of more than one element of brokered personal
information maintained by a data broker when the brokered
personal information is not encrypted, redacted, or protected
by another method that renders the information unreadable or
unusable by an unauthorized person. "Data broker security
breach" does not include good faith but unauthorized
acquisition of brokered personal information by an employee or
agent of the data broker for a legitimate purpose of the data
broker if the brokered personal information is not used for a
purpose unrelated to the data broker's business or subject to
further unauthorized disclosure.

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Section 10. Annual registration.
(a) Annually, on or before January 31 following a year in
which a person meets the definition of "data broker", a data
broker shall:
(1) register with the Secretary of State;
(2) pay a registration fee of $100; and
(3) provide the following information:
(A) the name and primary physical, email, and
Internet addresses of the data broker;
(B) if the data broker permits a consumer to opt
out of the data broker's collection of brokered
personal information, opt out of its databases, or opt
out of certain sales of data:
(i) the method for requesting an opt-out;
(ii) if the opt-out applies to only certain
activities or sales, which ones; and
(iii) whether the data broker permits a
consumer to authorize a third party to perform the
opt-out on the consumer's behalf;
(C) a statement specifying the data collection,
databases, or sales activities from which a consumer
may not opt out;
(D) a statement whether the data broker implements
a purchaser credentialing process;
(E) the number of data broker security breaches

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that the data broker has experienced during the prior
year, and if known, the total number of consumers
affected by the breaches;
(F) where the data broker has actual knowledge that
it possesses the brokered personal information of
minors, a separate statement detailing the data
collection practices, databases, sales activities, and
opt-out policies that are applicable to the brokered
personal information of minors; and
(G) any additional information or explanation the
data broker chooses to provide concerning its data
collection practices.
(b) A data broker that fails to register under subsection
(a) is liable to the State for:
(1) a civil penalty of $50 for each day, not to exceed
a total of $10,000 for each year, it fails to register
under this Section;
(2) an amount equal to the fees due under this Section
during the period it failed to register under this Section;
and
(3) other penalties imposed by law.
(c) The Attorney General may maintain an action in circuit
court to collect the penalties imposed in this Section and to
seek appropriate injunctive relief.
Section 15. Duty to protect personally identifiable

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information.
(a) A data broker shall develop, implement, and maintain a
comprehensive information security program that is written in
one or more readily accessible parts and contains
administrative, technical, and physical safeguards that are
appropriate to:
(1) the size, scope, and type of business of the data
broker obligated to safeguard the personally identifiable
information under such comprehensive information security
program;
(2) the amount of resources available to the data
broker;
(3) the amount of stored data; and
(4) the need for security and confidentiality of
personally identifiable information.
(b) A data broker subject to this Section shall adopt
safeguards in the comprehensive security program that are
consistent with the safeguards for protection of personally
identifiable information and information of a similar
character set forth in other State rules or federal regulations
applicable to the data broker.
Section 20. Information security program; minimum
features. A comprehensive information security program shall,
at minimum, have the following features:
(1) designation of one or more employees to maintain

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the program;
(2) identification and assessment of reasonably
foreseeable internal and external risks to the security,
confidentiality, and integrity of any electronic, paper,
or other records containing personally identifiable
information and a process for evaluating and improving,
where necessary, the effectiveness of the current
safeguards for limiting such risks, including:
(A) ongoing employee training, including training
for temporary and contract employees;
(B) employee compliance with policies and
procedures; and
(C) means for detecting and preventing security
system failures;
(3) security policies for employees relating to the
storage, access, and transportation of records containing
personally identifiable information outside business
premises;
(4) disciplinary measures for violations of the
comprehensive information security program rules;
(5) measures that prevent terminated employees from
accessing records containing personally identifiable
information;
(6) supervision of service providers by:
(A) taking reasonable steps to select and retain
third-party service providers that are capable of

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maintaining appropriate security measures to protect
personally identifiable information consistent with
applicable law; and
(B) requiring third-party service providers by
contract to implement and maintain appropriate
security measures for personally identifiable
information;
(7) reasonable restrictions upon physical access to
records containing personally identifiable information and
storage of the records and data in locked facilities,
storage areas, or containers;
(8) regular monitoring to ensure that the
comprehensive information security program is operating in
a manner reasonably calculated to prevent unauthorized
access to or unauthorized use of personally identifiable
information; and upgrading information safeguards as
necessary to limit risks;
(9) regular review of the scope of the security
measures:
(A) at least annually; or
(B) whenever there is a material change in business
practices that may reasonably implicate the security
or integrity of records containing personally
identifiable information; and
(10) documentation of responsive actions taken in
connection with any incident involving a breach of

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security; and mandatory post-incident review of events and
actions taken, if any, to make changes in business
practices relating to protection of personally
identifiable information.
Section 25. Information security program; computer system
security requirements. A comprehensive information security
program required by this Act shall, at minimum, and to the
extent technically feasible, have the following elements:
(1) secure user authentication protocols, as follows:
(A) an authentication protocol that has the
following features:
(i) control of user IDs and other identifiers;
(ii) a reasonably secure method of assigning
and selecting passwords or use of unique
identifier technologies, such as biometrics or
token devices;
(iii) control of data security passwords to
ensure that such passwords are kept in a location
and format that do not compromise the security of
the data they protect;
(iv) restricting access to only active users
and active user accounts; and
(v) blocking access to user identification
after multiple unsuccessful attempts to gain
access; or

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(B) an authentication protocol that provides a
higher level of security than the features specified in
subparagraph (A).
(2) secure access control measures that:
(A) restrict access to records and files
containing personally identifiable information to
those who need such information to perform their job
duties; and
(B) assign to each person with computer access
unique identifications plus passwords, which are not
vendor-supplied default passwords, that are reasonably
designed to maintain the integrity of the security of
the access controls or a protocol that provides a
higher degree of security;
(3) encryption of all transmitted records and files
containing personally identifiable information that will
travel across public networks and encryption of all data
containing personally identifiable information to be
transmitted wirelessly or a protocol that provides a higher
degree of security;
(4) reasonable monitoring of systems for unauthorized
use of or access to personally identifiable information;
(5) encryption of all personally identifiable
information stored on laptops or other portable devices or
a protocol that provides a higher degree of security;
(6) for files containing personally identifiable

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information on a system that is connected to the Internet,
reasonably up-to-date firewall protection and operating
system security patches that are reasonably designed to
maintain the integrity of the personally identifiable
information or a protocol that provides a higher degree of
security;
(7) reasonably up-to-date versions of system security
agent software that must include malware protection and
reasonably up-to-date patches and virus definitions, or a
version of such software that can still be supported with
up-to-date patches and virus definitions and is set to
receive the most current security updates on a regular
basis or a protocol that provides a higher degree of
security; and
(8) education and training of employees on the proper
use of the computer security system and the importance of
personally identifiable information security.
Section 99. Effective date. This Act takes effect January
1, 2020.