Introduced Version






HOUSE BILL No. 1112

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 4-6-9 ; IC 24-5-22 ; IC 27-2-20 .

Synopsis: Privacy of consumer information. Prohibits certain entities from disclosing nonpublic personal information of a consumer to an unrelated third party if the information will be used for a business or marketing purpose. Allows the attorney general to bring an action to collect a civil penalty for a violation.

Effective: July 1, 2003.





Cheney




    January 7, 2003, read first time and referred to Committee on Commerce and Economic Development.







Introduced

First Regular Session 113th General Assembly (2003)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2002 Regular or Special Session of the General Assembly.

HOUSE BILL No. 1112



    A BILL FOR AN ACT to amend the Indiana Code concerning trade regulations; consumer sales and credit.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 4-6-9-4.3; (03)IN1112.1.1. -->     SECTION 1. IC 4-6-9-4.3 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 4.3. The attorney general has the following powers and duties regarding privacy of consumer information under IC 24-5-22 :
        (1) To investigate complaints received alleging illegal disclosure of nonpublic personal information.
        (2) To seek injunctive relief as appropriate.
        (3) To institute an action to levy and collect a civil penalty.

SOURCE: IC 4-6-9-4.5; (03)IN1112.1.2. -->     SECTION 2. IC 4-6-9-4.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 4.5. (a) If an investigation under section 4.3 of this chapter results in a finding of illegal disclosure of nonpublic personal information, the attorney general may bring an action in a circuit or superior court with jurisdiction in the county in which the consumer (as defined in IC 24-5-22-2 ) or the person (as defined in IC 24-5-22-4 ) who allegedly illegally disclosed the information

is located.
     (b) If the court finds that a person illegally disclosed nonpublic personal information, the court may assess a civil penalty as described under IC 24-5-22-14.

SOURCE: IC 24-5-22; (03)IN1112.1.3. -->     SECTION 3. IC 24-5-22 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]:
     Chapter 22. Privacy of Consumer Information
    Sec. 1. As used in this chapter, "business or marketing purpose" means
an act to promote, advertise, or solicit the purchase or acquisition of the goods and services of a person.
    Sec. 2. As used in this chapter, "consumer" means an individual who purchases, obtains, or receives, or attempts to purchase, obtain, or receive, a good or service from a person for personal use.
    Sec. 3. As used in this chapter, "nonpublic personal information" means information that:
        (1) discloses personal information about a consumer;
        (2) is provided by a consumer to another person as a component of a transaction or in exchange for a service performed for the consumer; and
        (3) is not publicly available.
Publicly available information includes but is not limited to information about a consumer available in a public telephone directory or a publicly recorded document.
    Sec. 4. As used in this chapter, "person" means a human being, a corporation, a limited liability company, a partnership, an association, a firm, a business trust, a joint venture, or other legal entity.
    Sec. 5. As used in this chapter, "unaffiliated third party" means a separate independent entity not related by ownership and with no financial stake or interest in the goods or services of another person.
    Sec. 6. Except as provided in section 7 of this chapter, a person may not disseminate, share, distribute, or sell nonpublic personal information about a consumer to an unaffiliated third party for a business or marketing purpose related to the person or an unaffiliated third party.

     Sec. 7. A person may disseminate, share, distribute, or sell nonpublic personal information about a consumer to an unaffiliated third party for a business or marketing purpose if the consumer provides prior written consent to the disclosure of the nonpublic personal information.
    Sec. 8. A consent form under section 7 of this chapter must include:
        (1) a clear and conspicuous explanation of each anticipated use of the nonpublic personal information;
        (2) a clear and conspicuous description of the nonpublic personal information that will be disclosed; and
        (3) the name of each unaffiliated third party to whom the nonpersonal public information will be disclosed.

     Sec. 9. An unaffiliated third party that receives nonpublic personal information under section 7 of this chapter is bound by the requirements of this chapter.
     Sec. 10. This chapter shall not be construed to control or regulate the exchange of nonpublic personal information between affiliates.
    Sec. 11. A person who receives nonpublic personal information from a consumer and who disseminates, shares, distributes, or sells the nonpublic personal information in violation of this chapter is subject to a civil penalty as described in section 14 of this chapter.
    Sec. 12. An unaffiliated third party who:
        (1) receives nonpublic personal information under section 7 of this chapter or for a nonbusiness or nonmarketing purpose and who disseminates, shares, distributes, or sells the nonpublic personal information in violation of this chapter; or
        (2) makes a false or misleading statement to a person in order to obtain the nonpublic personal information of a consumer;
is subject to a civil penalty as described in section 14 of this chapter.

     Sec. 13. A person who disseminates, shares, distributes, or sells nonpublic personal information to an unaffiliated third party and who in good faith believes that the information is permitted to be distributed:
        (1) under section 7 of this chapter; or
        (2) for a nonbusiness or nonmarketing purpose;
is not liable for a civil penalty under section 14 of this chapter if the unaffiliated third party uses the information in violation of this chapter.

     Sec. 14. A person or an unaffiliated third party who violates this chapter is subject to a civil penalty of not more than one thousand five hundred dollars ($1,500) for each violation. The attorney general acting in the name of the state has the exclusive right to petition for recovery of the penalty.
     Sec. 15. This chapter does not create a private right of action by

a consumer against a person.

SOURCE: IC 27-2-20; (03)IN1112.1.4. -->     SECTION 4. IC 27-2-20 IS REPEALED [EFFECTIVE JULY 1, 2003].