2025 -- S 1037

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LC002859

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

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A N   A C T

RELATING TO CRIMINAL OFFENSES -- IDENTITY THEFT PROTECTION ACT OF 2015

     Introduced By: Senators Gu, Zurier, Burke, Ciccone, Urso, DiPalma, Vargas, Paolino,
Tikoian, and Lawson

     Date Introduced: May 09, 2025

     Referred To: Senate Artificial Intelligence & Emerging Tech

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 11-49.3-2, 11-49.3-3, 11-49.3-4, 11-49.3-5, 11-49.3-6 and 11-49.3-

7 of the General Laws in Chapter 11-49.3 entitled "Identity Theft Protection Act of 2015" are

hereby amended to read as follows:

     11-49.3-2. Risk-based information security program.

     (a) A municipal agency, state agency, or person who or that stores, collects, processes,

maintains, acquires, uses, owns, or licenses personal personally identifiable information about a

Rhode Island resident shall, at a minimum, implement and maintain a risk-based information

security program that meets current best practices of an approved and industry recognized

cybersecurity framework that contains reasonable security procedures and practices appropriate to

the size and scope of the organization; the nature of the information; and the purpose for which the

information was collected in order to protect the personal personally identifiable information from

unauthorized access, use, modification, destruction, or disclosure and to preserve the

confidentiality, integrity, and availability of such information. Controls and procedures shall be

implemented to restrict and manage access to the data in transit and at rest. A municipal agency,

state agency, or person shall not retain personal personally identifiable information for a period

longer than is reasonably required to provide the services requested; to meet the purpose for which

it was collected; or in accordance with a written retention policy or as may be required by law. A

municipal agency, state agency, or person shall destroy all personal personally identifiable

information, regardless of the medium that such information is in, in a secure manner, including,

but not limited to, shredding, pulverization, incineration, or erasure in accordance with current best

practices of an approved and industry recognized sanitization and destruction guideline.

     (b) A municipal agency, state agency, or person who or that discloses personal personally

identifiable information about a Rhode Island resident to a nonaffiliated third party shall require by

written contract that the third party and any sub-contracted party implement and maintain

reasonable security procedures and practices that meet current best practices of an approved and

industry recognized cybersecurity framework and are appropriate to the size and scope of the

organization; the nature of the information; and the purpose for which the information was collected

in order to protect the personal personally identifiable information from unauthorized access, use,

modification, destruction, or disclosure. The provisions of this section shall apply to contracts

entered into after the effective date of this act.

     (c) Municipal and state agencies shall provide an annual update to the general assembly

and the division of enterprise technology strategy and services (ETSS) or successor state agency,

or successor to the chief digital officer in the form required by the ETSS.

     11-49.3-3. Definitions.

     (a) The following definitions apply to this chapter:

     (1) “Breach of the security of the system” means unauthorized access or acquisition of

unencrypted, computerized data information that compromises the security, confidentiality, or

integrity of personal personally identifiable information maintained by the municipal agency, state

agency, or person. Good-faith acquisition of personal personally identifiable information by an

employee or agent of the agency for the purposes of the agency is not a breach of the security of

the system; provided, that the personal personally identifiable information is not used or subject to

further unauthorized disclosure.

     (2) “Classified data” means any data that is not public (private, sensitive, confidential).

Classified data requires additional security controls, such as access restrictions and encryption.

Classified data includes personally identifiable information (PII), personally identifiable health

information (PHI), or federal tax information (FTI).

     (3) “Cybersecurity incident” means unauthorized access that could jeopardize the

confidentiality, integrity, or availability of critical information systems and critical infrastructure

systems (i.e., first responder networks, water, energy).

     (4)(3) “Encrypted” means the transformation of data through the use of a one hundred

twenty-eight (128) bit or higher algorithmic process into a form in which there is a low probability

of assigning meaning without use of a confidential process or key. Data shall not be considered to

be encrypted if it is acquired in combination with any key, security code, or password that would

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permit access to the encrypted data.

     (5)(4) “Health insurance information” means an individual’s health insurance policy

number, subscriber identification number, or any unique identifier used by a health insurer to

identify the individual.

     (6)(5) “Medical information” means any information regarding an individual’s medical

history, mental or physical condition, or medical treatment or diagnosis by a healthcare professional

or provider.

     (7)(6) “Municipal agency” means any department, division, agency, commission, board,

office, bureau, authority, quasi-public authority, or school, fire, or water district within Rhode

Island, other than a state agency, and any other agency that is in any branch of municipal

government and exercises governmental functions other than in an advisory nature.

     (8)(7) “Owner” means the original collector of the information.

     (9)(8) “Person” shall include any individual, sole proprietorship, partnership, association,

corporation, joint venture, business, legal entity, trust, estate, cooperative, or other commercial

entity.

     (10) “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 the name and the data

elements are not encrypted or are in hard copy, paper format:

     (i) Social security number;

     (ii) Driver’s license number, Rhode Island identification card number, or tribal

identification number;

     (iii) Account number, credit or debit card number, in combination with any required

security code, access code, password, or personal identification number, that would permit access

to an individual’s financial account;

     (iv) Medical or health insurance information; or

     (v) E-mail address with any required security code, access code, or password that would

permit access to an individual’s personal, medical, insurance, or financial account.

     (9) “Personally identifiable information” means information that can be used to distinguish

or trace an individual's identity, either alone or when combined with other information that is linked

or linkable to a specific individual. This information includes both direct and indirect identifiers,

as well as biometric data and internet data.

     (10) “Reasonable security procedures” means protective, documented measures that are

commensurate with the risk and sensitivity of the data, suitable for the specific context, including

nature of the business and type of data; effective in preventing unauthorized access, use, disclosure,

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alteration or destruction of the data. Reasonable security procedures are regularly reviewed and

updated to ensure they remain effective and relevant in the face of evolving threats and include

who is responsible for implementing and maintaining the procedures, how they are implemented

and how they are regularly reviewed.

     (11) “Remediation service provider” means any person who or that, in the usual course of

business, provides services pertaining to a consumer credit report including, but not limited to,

credit report monitoring and alerts, that are intended to mitigate the potential for identity theft.

     (12) “State agency” means any department, division, agency, commission, board, office,

bureau, authority, or quasi-public authority within Rhode Island; either branch of the Rhode Island

general assembly or an agency or committee thereof; the judiciary; or any other agency that is in

any branch of Rhode Island state government and that exercises governmental functions other than

in an advisory nature.

     (b) For purposes of this chapter, personal personally identifiable information does not

include publicly available information that is lawfully made available to the general public from

federal, state, or local government records.

     (c) For purposes of this chapter, “notice” may be provided by one of the following methods:

     (1) Written notice;

     (2) Electronic notice, if the notice provided is consistent with the provisions regarding

electronic records and signatures set forth in 15 U.S.C. § 7001; or

     (3) Substitute notice, if the municipal agency, state agency, or person demonstrates that the

cost of providing notice would exceed twenty-five thousand dollars ($25,000), or that the affected

class of subject persons to be notified exceeds fifty thousand (50,000), or the municipal agency,

state agency, or person does not have sufficient contact information. Substitute notice shall consist

of all of the following:

     (i) E-mail notice when the municipal agency, state agency, or person has an e-mail address

for the subject persons;

     (ii) Conspicuous posting of the notice on the municipal agency’s, state agency’s, or

person’s website page, if the municipal agency, state agency, or person maintains one; and

     (iii) Notification to major statewide media.

     11-49.3-4. Notification of breach.

     (a)(1) Any municipal agency, state agency, or person who or that stores, owns, collects,

processes, maintains, acquires, uses, or licenses data that includes personal personally identifiable

information shall provide notification as set forth in this section of any disclosure of personal

personally identifiable information, or any breach of the security of the system, that poses a

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significant risk of identity theft to any resident of Rhode Island whose personal personally

identifiable information was, or is reasonably believed to have been, acquired by an unauthorized

person or entity.

     (2) The notification shall be made in the most expedient time possible, subject to the

following:

     (i) For state and municipal agencies, no later than thirty (30) calendar days after

confirmation of the breach and the ability to ascertain the information required to fulfill the notice

requirements contained in subsection (d), and shall be consistent with the legitimate needs of law

enforcement as provided in subsection (b). In the event that more than five hundred (500) Rhode

Island residents are to be notified, the municipal agency or state agency shall notify the attorney

general and the major credit reporting agencies as to the timing, content, and distribution of the

notices and the approximate number of affected individuals. Notification to the attorney general,

the division of enterprise technology strategy and services (ETSS) or successor state agency or

successor to the chief digital officer and the major credit reporting agencies shall be made without

delaying notice to affected Rhode Island residents. Where affected employees are represented by a

labor union through a collective bargaining agreement, the employer shall also notify the collective

bargaining agent, or designee, of such breaches.

     (ii) For persons subject to subsection (a)(1), which is not a state or municipal agency, no

later than forty-five (45) calendar days after confirmation of the breach and the ability to ascertain

the information required to fulfill the notice requirements contained in subsection (d), and shall be

consistent with the legitimate needs of law enforcement as provided in subsection (b). In the event

that more than five hundred (500) Rhode Island residents are to be notified, the person shall notify

the attorney general and the major credit reporting agencies as to the timing, content, and

distribution of the notices and the approximate number of affected individuals. Notification to the

attorney general, the division of enterprise technology strategy and services (ETSS) or successor

state agency or successor to the chief digital officer and the major credit reporting agencies shall

be made without delaying notice to affected Rhode Island residents.

     (b) The notification required by this section may be delayed if a federal, state, or local law

enforcement agency determines that the notification will impede a criminal investigation. The

federal, state, or local law enforcement agency must notify the municipal agency, state agency, or

person of the request to delay notification without unreasonable delay. If notice is delayed due to

such determination, then, as soon as the federal, state, or municipal law enforcement agency

determines and informs the municipal agency, state agency, or person that notification no longer

poses a risk of impeding an investigation, notice shall be provided as soon as practicable pursuant

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to subsection (a)(2). The municipal agency, state agency, or person shall cooperate with federal,

state, or municipal law enforcement in its investigation of any breach of security or unauthorized

acquisition or use, which shall include the sharing of information relevant to the incident; provided

however, that such disclosure shall not require the disclosure of confidential business information

or trade secrets.

     (c) Any municipal agency, state agency, or person required to make notification under this

section and fails to do so is liable for a violation as set forth in § 11-49.3-5.

     (d) The notification to individuals must include the following information to the extent

known:

     (1) A general and brief description of the incident, including how the security breach

occurred and the number of affected individuals;

     (2) The type of information that was subject to the breach;

     (3) Date of breach, estimated date of breach, or the date range within which the breach

occurred;

     (4) Date that the breach was discovered;

     (5) A clear and concise description of any remediation services offered to affected

individuals including toll free numbers and websites to contact:

     (i) The credit reporting agencies;

     (ii) Remediation service providers;

     (iii) The attorney general, the division of enterprise technology strategy and services

(ETSS) or successor state agency or successor to the chief digital officer; and

     (6) A clear and concise description of the consumer’s ability to file or obtain a police report;

how a consumer requests a security freeze and the necessary information to be provided when

requesting the security freeze; and that fees may be required to be paid to the consumer reporting

agencies.

     (e) For state and municipal agencies remediation services to be provided and to be

described pursuant to the provisions of subsection (d)(5) of this section shall include, but not be

limited to:

     (1) Individuals eighteen (18) years of age and older, a minimum of five (5) years of

coverage; and

     (2) Individuals under eighteen (18) years of age, coverage until age eighteen (18), and no

less than two (2) years of coverage beyond age eighteen (18).

     11-49.3-5. Penalties for violation.

     (a) Each reckless violation of this chapter is a civil violation for which a penalty of not

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more than one hundred dollars ($100) one thousand dollars ($1,000) per record may be adjudged

against a defendant.

     (b) Each knowing and willful violation of this chapter is a civil violation for which a penalty

of not more than two hundred dollars ($200) two thousand dollars ($2,000) per record may be

adjudged against a defendant.

     (c) Whenever the attorney general has reason to believe that a violation of this chapter has

occurred and that proceedings would be in the public interest, the attorney general may bring an

action in the name of the state against the business or person in violation.

     (d) In addition to the penalties listed in this section, courts may impose additional

appropriate sanctions as warranted by the circumstances.

     11-49.3-6. Agencies or persons with security breach procedures.

     (a) Any municipal agency, state agency, or person shall be deemed to be in compliance

with the security breach notification requirements of § 11-49.3-4 if:

     (1) The municipal agency, state agency, or person maintains its own security breach

procedures as part of an information security policy program that meets or exceeds the requirements

of this chapter for the treatment of personal personally identifiable information and at a minimum,

adheres to the timing and notification otherwise complies with the timing requirements of § 11-

49.3-4, and notifies subject persons in accordance with such municipal agency’s, state agency’s, or

person’s notification policies in the event of a breach of security; or

     (2) The person maintains a security breach procedure pursuant to the rules, regulations,

procedures, or guidelines established by the primary or applicable federal functional regulator, as

defined in 15 U.S.C. § 6809(2), and notifies subject persons in accordance with the policies or the

rules, regulations, procedures, or guidelines established by the primary or applicable federal

functional regulator in the event of a breach of security of the system.

     (b) A financial institution, trust company, credit union, or its affiliates that is subject to and

examined for, and found in compliance with, the Federal Interagency Guidelines on Response

Programs for Unauthorized Access to Customer Information and Customer Notice shall be deemed

in compliance with this chapter.

     (c) A provider of health care, healthcare service plan, health insurer, or a covered entity

governed by the medical privacy and security rules issued by the federal Department of Health and

Human Services, Parts 160 and 164 of Title 45 of the Code of Federal Regulations, established

pursuant to the Health Insurance Portability and Accountability Act of 1996 (HIPAA) shall be

deemed in compliance with this chapter.

     11-49.3-7. Notification of cybersecurity incident.

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     (a) Any municipal agency or state agency that detects a cybersecurity incident shall provide

notification to the Rhode Island state police upon detection of the cybersecurity incident within

twenty-four (24) hours. The state police shall notify the division of enterprise technology strategy

and services (ETSS) or successor state agency or successor to the chief digital officer within

twenty-four (24) hours, or the next business day, of initial notification.

     (b) Any municipal agency or state agency required to make notification under this section

and fails to do so may be liable for a violation as set forth in § 11-49.3-5.

     (c) The notification shall include, at a minimum, the following information to the extent

known:

     (1) A general and brief description of the incident, including how the cybersecurity incident

occurred; and

     (2) The date of the cybersecurity incident, estimated date of the cybersecurity incident, or

the date range within which the cybersecurity incident occurred.;

     (3) Any mitigating actions taken; and

     (4) Any notifications to regulatory or federal entities.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO CRIMINAL OFFENSES -- IDENTITY THEFT PROTECTION ACT OF 2015

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     This act would amend the Identity Theft Protection Act of 2015. The act would eliminate

the definitions for "classified data" and "personal information" and establish a definition for

"personally identifiable information". This act would also add division of enterprise technology

strategy and services (ETSS) or successor state agency, or successor to the chief digital officer to

notification requirement provisions of the chapter. This act would raise the penalty provisions for

violations.

     This act would take effect upon passage.

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