Today's Law As Amended


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AB-2320 Personal information: contractors: cyber insurance.(2019-2020)



As Amends the Law Today


SECTION 1.

 Chapter 2.3 (commencing with Section 10600) is added to Part 2 of Division 2 of the Public Contract Code, to read:

CHAPTER  2.3. Contractors: Cyber Insurance
10600.
 For purposes of this chapter, the following definitions apply:
(a) “Agency” has the same meaning as in subdivision (b) of Section 1798.3 of the Civil Code.
(b) “Contractor” means an individual, business, or other entity doing business with an agency.
(c) “Personal information” has the same meaning as in subdivision (a) of Section 1798.3 of the Civil Code.
(d) “Record” has the same meaning as in subdivision (g) of Section 1798.3 of the Civil Code.
10601.
 If the contract contemplates that, in the course of doing business with an agency, a contractor will receive or have access to records containing personal information protected under the Information Practices Act of 1977 (Title 1.8 (commencing with Section 1798) of Part 4 of Division 3 of the Civil Code), the contract shall require the contractor to carry cyber insurance sufficient to cover all losses resulting from potential unlawful access to or disclosure of personal information, in an amount determined by the contracting agency.
SEC. 2.
 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.