1.1 	A bill for an act
1.2 	relating to commerce; requiring businesses that
1.3 	possess personal data to notify persons whose personal
1.4 	information has been disclosed to unauthorized
1.5 	persons; proposing coding for new law in Minnesota
1.6 	Statutes, chapter 325E.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. [325E.61] DATA WAREHOUSES; NOTICE REQUIRED FOR
1.9 	CERTAIN DISCLOSURES.
1.10 		Subdivision 1.Disclosure of personal information; notice
1.11 	required. (a) Any person or business that conducts business in
1.12 	this state, and that owns or licenses computerized data that
1.13 	includes personal information, shall disclose any breach of the
1.14 	security of the system following discovery or notification of
1.15 	the breach in the security of the data to any resident of this
1.16 	state whose unencrypted personal information was, or is
1.17 	reasonably believed to have been, acquired by an unauthorized
1.18 	person.  The disclosure must be made in the most expedient time
1.19 	possible and without unreasonable delay, consistent with the
1.20 	legitimate needs of law enforcement, as provided in paragraph
1.21 	(c), or with any measures necessary to determine the scope of
1.22 	the breach and restore the reasonable integrity of the data
1.23 	system.
1.24 	(b) Any person or business that maintains computerized data
1.25 	that includes personal information that the person or business
1.26 	does not own shall notify the owner or licensee of the
2.1 	information of any breach of the security of the data
2.2 	immediately following discovery, if the personal information
2.3 	was, or is reasonably believed to have been, acquired by an
2.4 	unauthorized person.
2.5 	(c) The notification required by this section may be
2.6 	delayed if a law enforcement agency determines that the
2.7 	notification will impede a criminal investigation.  The
2.8 	notification required by this section must be made after the law
2.9 	enforcement agency determines that it will not compromise the
2.10 	investigation.
2.11 	(d) For purposes of this section, "breach of the security
2.12 	of the system" means unauthorized acquisition of computerized
2.13 	data that compromises the security, confidentiality, or
2.14 	integrity of personal information maintained by the person or
2.15 	business.  Unauthorized acquisition of a portable electronic
2.16 	device on which personal information is stored is not a breach
2.17 	of the security of the system when access to the personal
2.18 	information or the device is protected by a password that has
2.19 	not been disclosed, or by another security measure.
2.20 	(e) For purposes of this section, "personal information"
2.21 	means an individual's first name or first initial and last name
2.22 	in combination with any one or more of the following data
2.23 	elements, when the name and the data elements are not encrypted:
2.24 	(1) Social Security number;
2.25 	(2) driver's license number or Minnesota identification
2.26 	card number; or 
2.27 	(3) account number or credit or debit card number, in
2.28 	combination with any required security code, access code, or
2.29 	password that would permit access to an individual's financial
2.30 	account.
2.31 	(f) For purposes of this section, "personal information"
2.32 	does not include publicly available information that is lawfully
2.33 	made available to the general public from federal, state, or
2.34 	local government records.
2.35 	(g) For purposes of this section, "notice" may be provided
2.36 	by one of the following methods:
3.1 	(1) written notice;
3.2 	(2) electronic notice, if the notice provided is consistent
3.3 	with the provisions regarding electronic records and signatures
3.4 	in United States Code, title 15, section 7001; or 
3.5 	(3) substitute notice, if the person or business
3.6 	demonstrates that the cost of providing notice would exceed
3.7 	$250,000, or that the affected class of subject persons to be
3.8 	notified exceeds 500,000, or the person or business does not
3.9 	have sufficient contact information.  Substitute notice must
3.10 	consist of all of the following:
3.11 	(i) e-mail notice when the person or business has an e-mail
3.12 	address for the subject persons;
3.13 	(ii) conspicuous posting of the notice on the Web site page
3.14 	of the person or business, if the person or business maintains
3.15 	one; and 
3.16 	(iii) notification to major statewide media.
3.17 	(h) Notwithstanding paragraph (g), a person or business
3.18 	that maintains its own notification procedures as part of an
3.19 	information security policy for the treatment of personal
3.20 	information and is otherwise consistent with the timing
3.21 	requirements of this section, shall be deemed to be in
3.22 	compliance with the notification requirements of this section if
3.23 	the person or business notifies subject persons in accordance
3.24 	with its policies in the event of a breach of security of the
3.25 	system.
3.26 		Subd. 2.Waiver prohibited. Any waiver of the provisions
3.27 	of this section is contrary to public policy and is void and
3.28 	unenforceable.
3.29 		Subd. 3.Remedies and enforcement. (a) Any person
3.30 	injured by a violation of this section may commence a civil
3.31 	action to recover damages.
3.32 	(b) Any business that violates, proposes to violate, or has
3.33 	violated this section may be enjoined.
3.34 	(c) The rights and remedies available under this section
3.35 	are cumulative to each other and to any other rights and
3.36 	remedies available under law.

4.1 	Sec. 2. EFFECTIVE DATE.
 4.2 	Section 1 is effective the day following final enactment.