An amendment to Illinois’ Personal Information Protection Act (PIPA) has passed both houses and is now awaiting the governor’s approval to become law. The amendment specifies new minimum disclosure notices that data collectors must issue in the event of a breach, and also adds civil penalties for improper disposal of personal information. The new provision requires materials containing personal information to be disposed of “in a manner that renders the personal information unreadable, unusable, and undecipherable.” Furthermore, “any third party that contracts with a person to dispose of materials containing personal information must implement and monitor compliance policies and procedures” to protect the information throughout the collection and disposal process.

Any person, business or government entity may be subject to a maximum $100 penalty for each individual whose personal information is disposed of in violation of the Act, with the total penalty not to exceed $50,000 per “instance” of improper disposal. Absent from the Act is a definition of what exactly constitutes an “instance.” We will likely have to wait for the first major violation to see how the Illinois Attorney General interprets the statute’s new language.