S-5083

   Amend Senate File 2177, as passed by the Senate, as follows:
   1.  Page 1, by striking lines 7 and 8 and inserting <secure internet connection, or other secure electronic contact method designated by the consumer reporting agency. The consumer must>
   2.  Page 1, by striking lines 22 through 25 and inserting <on a nationwide basis, the consumer reporting agency shall identify, to the best of its knowledge, any other consumer reporting agency that compiles and maintains files on consumers on a nationwide basis and inform consumers of appropriate contact information that would permit the consumer to place, lift, or remove a security freeze from such other consumer reporting agency.>
   3.  Page 2, by striking lines 2 through 4 and inserting <facsimile transmissions, the secure internet connection, or other secure electronic media contact method designated by the consumer reporting agency. The consumer reporting agency shall comply with>
   4.  Page 2, by striking lines 8 through 10 and inserting <agency through facsimile, the secure internet, connection or other secure electronic contact method chosen designated by the consumer reporting agency, or the use of>
   5.  Page 4, by striking lines 1 and 2 and inserting: 
   <Sec. ___.  Section 715C.1, subsections 1 and 5, Code 2018, are amended to read as follows:
   1.  “Breach of security” means unauthorized acquisition, or reasonable belief of unauthorized acquisition, of personal information maintained in computerized form by a person that compromises the security, confidentiality, or integrity of the personal information. “Breach of security” also means unauthorized acquisition of personal information maintained by a person in any medium, including on paper, that was transferred by the person to that medium from computerized form and that compromises the security, confidentiality, or integrity of the personal information. Good faith acquisition of personal information by a person or that person’s employee or agent for a legitimate purpose of that person is not a breach of security, provided that the personal information is not used in violation of applicable law or in a manner that harms or poses an actual threat to the security, confidentiality, or integrity of the personal information.
   5.  “Encryption” means the use of an algorithmic process pursuant to accepted industry standards to transform data into a form in which the data is rendered unreadable or unusable without the use of a confidential process or key.
   Sec. ___.  Section 715C.2, subsections 7 and 8, Code 2018, are amended to read as follows:
   7.  This section does not apply to any of the following:
   a.  A person who complies with notification requirements or breach of security procedures that provide greater protection to personal information and at least as thorough disclosure requirements than that provided by this section pursuant to the rules, regulations, procedures, guidance, or guidelines established by the person’s primary or functional federal regulator.
   b.  A person who complies with a state or federal law that provides greater protection to personal information and at least as thorough disclosure requirements for breach of security or personal information than that provided by this section.
   c.  A person who is subject to and complies with regulations promulgated pursuant to Tit. V of the federal

Gramm-Leach-Bliley Act of 1999, 15 U.S.C. §6801 – 6809.
   d.  A person who is subject to and complies with regulations promulgated pursuant to Tit. II, subtit. F of the federal Health Insurance Portability and Accountability Act of 1996, 42 U.S.C. §1320d – 1320d-9, and Tit. XIII, subtit. D of the federal Health Information Technology for Economic and Clinical Health Act of 2009, 42 U.S.C. §17921 – 17954.
   8.  Any person who owns or licenses computerized data that includes a consumer’s personal information that is used in the course of the person’s business, vocation, occupation, or volunteer activities and that was subject to a breach of security requiring notification to more than five hundred residents of this state pursuant to this section shall give written notice of the breach of security following discovery of such breach of security, or receipt of notification under subsection 2, to the director of the consumer protection division of the office of the attorney general within five business days after giving notice of the breach of security to any consumer pursuant to this section.
   Sec. ___.  EFFECTIVE DATE.  The following take effect January 1, 2019:
   1.  The section of this Act amending section 714G.2.
   2.  The section of this Act amending section 714G.3, subsection 1.
   3.  The section of this Act amending section 714G.4, unnumbered paragraph 1.>
   6.  Title page, line 2, after <and> by inserting <personal information security breach protection, and>
   7.  By renumbering as necessary.