Colorado

Colo. Rev. Stat. § 6-1-716

H.B. 1119 (signed into law April 24, 2006)

Effective September 1, 2006

Application. Any individual or commercial entity (collectively, Entity) that conducts business in CO and that owns or licenses computerized data that includes PI.

The provisions governing maintenance of PI that the Entity does not own appear applicable to any Entity maintaining information on CO residents, whether or not the Entity conducts business in CO.

Security Breach Definition. An unauthorized acquisition of unencrypted computerized data that compromises the security, confidentiality, or integrity of PI maintained by an Entity.

Good-faith acquisition of PI by an employee or agent of an Entity for the purposes of the Entity is not a breach of the security of the system if the PI is not used for or is not subject to further unauthorized disclosure.

Notification Obligation. An Entity that conducts business in CO and that owns or licenses computerized data that includes PI about a resident of CO shall, when it becomes aware of a breach of the security of the system, give notice as soon as possible to the affected CO resident.

Notification is not required if after a good-faith, prompt and reasonable investigation, the Entity determines that misuse of PI about a CO resident has not occurred and is not likely to occur.

Notification to Consumer Reporting Agencies. If an Entity is required to notify more than 1,000 CO residents, the Entity shall also notify, without unreasonable delay, all consumer reporting agencies that compile and maintain files on consumers on a nationwide basis of the anticipated date of the notification to the residents and the approximate number of residents who are to be notified. This paragraph shall not apply to a person who is subject to Title V of the Gramm-Leach-Bliley Act.

Third-Party Data Notification. If an Entity maintains computerized data that includes PI that the Entity does not own or license the Entity shall give notice to and cooperate with the owner or licensee of the information of any breach of the security of the system immediately following discovery of a breach, if misuse of PI about a CO resident occurred or is likely to occur. Cooperation includes sharing with the owner or licensee information relevant to the breach, except that such cooperation shall not be deemed to require the disclosure of confidential business information or trade secrets.

Timing of Notification. Notice shall be made in the most expedient time possible and without unreasonable delay, consistent with any measures necessary to determine the scope of the breach and to restore the reasonable integrity of the computerized data system.

Personal Information Definition. A CO resident’s first name or first initial and last name in combination with any one or more of the following data elements that relate to the resident, when the data elements are not encrypted, redacted, or secured by any other method rendering the name or the element unreadable or unusable:

Social Security Number;
Driver license number or other identification card number; or
Account number or credit card number or debit card number in combination with any required security code, access code, or password that would permit access to a financial account.

PI does not include publicly available information that is lawfully made available to the general public from federal, state, or local government records or widely distributed media.

Notice Required. Notice may be provided by one of the following methods:

Written notice to the postal address listed in the Entity’s records;
Telephonic notice; or
Electronic notice, if a primary means of communication by the Entity with a CO resident is by electronic means or the notice provided is consistent with the provisions regarding electronic records and signatures set forth in 15 U.S.C. § 7001 (E-SIGN Act).

Substitute Notice Available. If the Entity demonstrates that the cost of providing notice will exceed $250,000, or that the affected class of persons to be notified exceeds 250,000 CO residents, or the Entity does not have sufficient contact information to provide notice. Substitute notice shall consist of all of the following:

Email notice if the Entity has email addresses for the members of the affected class of CO residents;
Conspicuous posting of the notice on the Web site of the Entity if the Entity maintains one; and
Notification to major statewide media.

Exception: Own Notification Policy. Any Entity that maintains its own notification procedures as part of an information security policy for the treatment of PI and whose procedures are otherwise consistent with the timing requirements of the statute shall be deemed to be in compliance with the notice requirements of the statute if the Entity notifies affected CO customers in accordance with its policies in the event of a breach of the security of the system.

Exception: Compliance with Other Laws.

Primary Regulator. Notification pursuant to laws, rules, regulations, guidances, or guidelines established by an Entity’s primary or functional state regulator is sufficient for compliance.
Gramm-Leach-Bliley Act. The provisions of this statute shall not apply to any Entity who is subject to Title V of the Gramm-Leach-Bliley Act.

Other Key Provisions:

Delay for Law Enforcement. Notice may be delayed if a law enforcement agency determines that the notice will impede a criminal investigation and the law enforcement agency has notified the Entity that conducts business in CO not to send notice required by the statute.
AG Enforcement. The AG may seek direct damages and injunctive relief.