501.171 Security of confidential personal information.—
(1) DEFINITIONS.—As used in this section, the term:
(a) “Breach of security” or “breach” means
unauthorized access of data in electronic form containing personal information.
(b) “Covered entity” means a sole proprietorship, partnership, corporation, trust, estate, cooperative, association, or other
commercial entity that acquires, maintains, stores, or uses personal information.
(c) “Customer records” means any material, regardless of the physical form, on which
personal information is recorded or preserved by any means, including, but not limited to, written or spoken words, graphically depicted, printed, or electromagnetically transmitted that are provided by an individual in this state to a covered entity
for the purpose of purchasing or leasing a product or obtaining a service.
(g) “Personal information” means either of the following:
a.
An individual’s first name or first initial and last name in combination with any one or more of the following data elements for that individual:
(III)
A financial account number or credit or debit card number, in combination with any required security code, access code, or password that is necessary to permit access to an individual’s financial account;
b. A user name or e-mail address, in combination with a password or security question and answer that would permit access to an online account.
(4) NOTICE TO INDIVIDUALS OF SECURITY BREACH.—
(a) A covered entity shall give notice to each individual in this state whose personal information was, or the covered entity reasonably believes to have been, accessed as a result of the breach.
Notice to individuals shall be made as expeditiously as practicable and without unreasonable delay, taking into account the time necessary to allow the covered entity to determine the scope of the breach of security, to identify individuals affected by the breach, and to restore the reasonable integrity of the data system that was breached, but
no later than 30 days after the determination of a breach or reason to believe a breach occurred unless subject to a delay authorized under paragraph (b) or waiver under paragraph (c).
(b) If a federal, state, or local law enforcement agency determines that notice to individuals required under this subsection would interfere with a criminal investigation, the notice shall be delayed upon the written request of the law enforcement agency for a specified period that the law enforcement agency determines is reasonably necessary. A law enforcement agency may, by a subsequent written request, revoke such delay as of a specified date or extend the period set forth in the original request made under this paragraph to a specified date if further delay is necessary.
(c) Notwithstanding paragraph (a),
notice to the affected individuals is not required if, after an appropriate investigation and consultation with relevant federal, state, or local law enforcement agencies,
the covered entity reasonably determines that the breach has not and will not likely result in identity theft or any other financial harm to the individuals whose personal information has been accessed. Such a determination must be documented in writing and maintained for at least 5 years.
The covered entity shall provide the written determination to the department within 30 days after the determination.
(d) The notice to an affected individual shall be by one of the following methods:
1.
Written notice sent to the mailing address of the individual in the records of the covered entity; or
2.
E-mail notice sent to the e-mail address of the individual in the records of the covered entity.
(e) The notice to an individual with respect to a breach of security shall include, at a minimum:
1. The
date, estimated date, or estimated date range of the breach of security.
2. A
description of the personal information that was accessed or reasonably believed to have been accessed as a part of the breach of security.
3. Information that the individual can use to
contact the covered entity to inquire about the breach of security and the personal information that the covered entity maintained about the individual.
(f) A covered entity required to provide notice to an individual may provide substitute notice in lieu of direct notice if such direct notice is not feasible because the cost of providing notice would exceed $250,000, because the affected individuals exceed 500,000 persons, or because the covered entity does not have an e-mail address or mailing address for the affected individuals. Such substitute notice shall include the following:
1.
A conspicuous notice on the Internet website of the covered entity if the covered entity maintains a website; and
2.
Notice in print and to broadcast media, including major media in urban and rural areas where the affected individuals reside.
(g) Notice provided pursuant to rules, regulations, procedures, or guidelines established by the covered entity’s primary or functional federal regulator is deemed to be in compliance with the notice requirement in this subsection if the covered entity notifies affected individuals in accordance with the rules, regulations, procedures, or guidelines established by the primary or functional federal regulator in the event of a breach of security. Under this paragraph,
a covered entity that timely provides a copy of such notice to the department is deemed to be in compliance with the notice requirement in subsection (3).
(9) ENFORCEMENT.—
(a)
A violation of this section shall be treated as an unfair or deceptive trade practice in any action brought by the department under s.
501.207 against a covered entity or third-party agent.
(b) In addition to the remedies provided for in paragraph (a),
a covered entity that violates subsection (3) or subsection (4) shall be liable for a civil penalty not to exceed $500,000, as follows:
1. In the amount of $1,000 for each day up to the first 30 days following any violation of subsection (3) or subsection (4) and, thereafter, $50,000 for each subsequent 30-day period or portion thereof for up to 180 days.
2. If the violation continues for more than 180 days, in an amount not to exceed $500,000.
The
civil penalties for failure to notify provided in this paragraph apply per breach and not per individual affected by the breach.