California State Bill SB1386

From: Steve Zenone (zenone@cats.ucsc.edu)
Date: 03/22/03

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    From: "Steve Zenone" <zenone@cats.ucsc.edu>
    To: <incidents@securityfocus.com>
    Date: Fri, 21 Mar 2003 17:03:14 -0800
    
    

    Hello,

    This message is in regards to getting clarification on what
    to do in the event of a breach per SB1386.

    Starting on July 1, 2003, California State Bill SB1386 will
    become operative. From a technical InfoSec perspective, I
    am unclear about a section of the bill.

    In a nutshell, to quote from the original bill text, SB1386
    will...

     "require a state agency, or a person or business that
      conducts business in California, that owns or licenses
      computerized data that includes personal information,
      as defined, to disclose in specified ways, any breach of
      the security of the data, as defined, to any resident
      of California whose unencrypted personal information
      was, or is reasonably believed to have been, acquired
      by an unauthorized person."

    The unclear part is the use of the word "unencrypted".
    For example, can someone jokingly use ROT13 to encrypt
    data and say, "hey - it's encrypted!"?

     % cat data | tr 'a-zA-Z' 'n-za-mN-ZA-M' > encrypted

    In other words, what defines encryption so as to satisfy
    this bill's requirements?

    Secondly, What if I have an encrypted database, however,
    an "attacker" is able to monitor the plaintext traffic over
    http from the front-end webserver (which is fed data from
    the encrypted DB) to the remote browser client. Obviously,
    there is a breach. The "attacker" isn't getting the entire
    database. Rather, they're able to get session specific
    plaintext packet dumps. If the breach occurred on my
    network, I take it that this would need to be disclosed
    per the bill. What if the breach occurred outside of my
    network and affected sessions between my network and
    provider XYZ. Does the bill still require me to disclose?

    This is hypothetical. Of course, it would make more sense
    using https as opposed to http. However, for the sake of
    trying to get clarification, I tossed out the above example.

    Last example, what if the data moves over the Net via SSL
    to a remote user's workstation where it is then stored
    unencrypted. If the user's system is compromised and
    the data is "acquired by an unauthorized person", where
    do we go based upon the requirements of SB1386?

    Thanks in advance for your insight.

    SB1386 original text:
     http://info.sen.ca.gov/pub/01-02/bill/sen/sb_1351-1400/sb_1386_bill_20020926_chaptered.html

    Regards,
    Steve

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