Montana Computer Security Breach
Mont. Code Ann. § 30-14-1701 - § 30-14-1704
SUMMARY:
EFFECTIVE. March 1, 2006
WHO DOES THIS LAW APPLY TO. (1) Any person or business that conducts business in Montana and owns or licenses computerized data that includes Personal Information; and (2) any person or business that maintains computerized data that includes Personal Information on Montana residents.
WHAT IS A BREACH. Unauthorized acquisition of computerized data that materially compromises the security, integrity or confidentiality of Personal Information maintained by a person or business which causes or is reasonably likely to cause loss or injury to a Montana resident.
WHAT IS PERSONAL INFORMATION. An individual’s first name or first initial and last name, in combination with any one or more of the following data elements when either the name or data element is not encrypted:
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Social Security Number or any other number issued by the IRS.
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Insurance policy number.
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Driver’s license number, state identification card number, or tribal identification number.
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Account number, credit card number or debit card number in combination with any required security code, access code, or password that would permit access to the individual’s financial account.
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Medical record information that includes physical or mental condition, medical history, medical claims history, or medical treatment, that is either obtained from a medical profession, medical care institution, individual, spouse, parent, or legal guardian.
Personal Information does not include information that is lawfully available from Federal, State, or local government records.
WHO TO NOTIFY OF THE BREACH. Notification of the breach must be sent to the affected residents. If the notice states or implies that the individual may obtain a copy of their file from a consumer credit reporting agency, the person or business giving notice shall coordinate with the consumer reporting agency as to the timing, content, and distribution of the notice. Such coordination may not unreasonably delay notice to the affected residents. Entity must also electronically submit a copy of the notification and a statement providing the date, method of distribution of the notification to residents and provide the number of residents who received notification, to the Attorney General’s consumer protection office, excluding any personally identifiable information.
EXCEPTION. This Section does not apply to the following:
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A good faith acquisition of Personal Information by an employee or agent of the entity for internal purposes only is not a breach, if it is not used for an unrelated purpose, or subject to further unauthorized disclosure.
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A person or business which maintains its own notice procedures as part of a Personal Information security policy and is otherwise consistent with the timing requirements of this Section, is considered in compliance with this Section if the affected individuals are notified by the person or business in accordance with its policies.
WHEN TO NOTIFY OF THE BREACH. Notification must be sent when the person or business discovers or is notified of a security breach. The disclosure shall be made without unreasonable delay consistent with the needs of law enforcement or any measures necessary to determine the scope of the breach, and to restore the reasonable integrity of the data system. Notification may be delayed if law enforcement determines it will impede a criminal investigation, and it is requested. In that instance, notification must be made following clearance by law enforcement.
HOW TO NOTIFY OF THE BREACH. Notice may be provided by one of the following methods:
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Written.
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Telephonic.
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Electronic (if consistent with the provisions regarding electronic records and signatures in 15 U.S.C. § 7001).
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Substitute notice as provided below.
SUBSTITUTE NOTICE AVAILABLE. If the person or business can demonstrate that the cost of providing notice will exceed $250,000, the affected class of persons to be notified exceeds 500,000, or the person or business has insufficient contact information, substitute notice may be used. Substitute notice shall consist of all of the following:
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Email notice if the entity has an Email address for the individual(s) subject to notice.
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Conspicuous posting of the notice on the website of the entity if one is maintained.
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Notification to local or statewide media.
NOTICE TO THIRD-PARTIES. If a person or business maintains computerized data which includes Personal Information that it does not own, then the person or business shall notify the owner or licensee of the security breach immediately upon discovery. The person or business that owns or licenses the computerized data shall provide notice to the affected individual(s).
CONSEQUENCES FOR FAILING TO NOTIFY. Any failure to comply with the provisions of this Section is considered a violation of the Montana Consumer Protection Act. Any person or business which violates this Section is subject to the following:
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A court order obtained by the State to temporarily or permanently restrain or prohibit further violations.
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Any person or business which violates the court order is subject to a fine of up to $10,000.
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If a court finds that a person or business has willfully violated this Section, it may be fined up to $10,000 per violation.
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Any person or business that is convicted of fraud shall be fined up $5,000 per violation and/or sentenced up to a year in jail.
Monetary penalties are cumulative.
PRIVATE RIGHT OF ACTION. None provided in the statute.
REQUIREMENTS OF REASONABLE SECURITY MEASURES.
DATA DISPOSAL PROVISIONS. Mont. Code Ann. § 30-14-1703. A business shall take all reasonable steps to destroy or arrange for the destruction of a customer's records within its custody or control containing personal information that is no longer necessary to be retained by the business by shredding, erasing, or otherwise modifying the personal information in those records to make it unreadable or undecipherable.
LEGISLATIVE UPDATES.
H.B. 732 – Signed into law on 4/28/2005, Effective 3/1/2006.
H.B. 74 – Signed into law on 2/27/2015, Effective 10/1/2015.
For more information, see here: https://www.leg.mt.gov/bills/mca/title_0300/chapter_0140/part_0170/sections_index.html
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https://dojmt.gov/consumer/data-breaches-businesses/
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