Ok, bit of an outlandish idea, but how about something like:

• Decree that information about a person is the property of that person, and therefore cannot be possessed without compensation. Think of it like intellectual property, but for your personal information
• Set a standard royalty - say $0.05/year - that must be paid to the owner of that information for as long as that information is held. This forms an incentive to not hold information you don't need, and gives visibility to all the places that are now forced to contact you every year to pay you the royalty
• Places where you have an explicit contractual relationship with (utilities, banks, ...) could have a clause to set the royalty at $0.00, but this can't be extended to third parties - strong incentive not to transfer information to third parties
• Unauthorised transfer or loss of information could be considered IP theft, and result in significant civil penalties

PII data at rest (i.e. in a database) must be encrypted.

How about a government-sponsored, non-profit authentication service? That is, it should be impossible to get a loan, open a line of credit, or anything else in somebody's name, without the lending institution verifying that it's actually on behalf of the named individual. Eliminate the security-through-obscurity technique of using bits of easily-leaked personal information as a poor substitute for actual authentication.

I mean, (as a comparative example) I have to go through an OAuth2 consent dialog to connect a third-party app to my email account, yet somebody can saddle me with huge debts based on knowing a 9-digit number that just about everybody knows? It's the system that's broken, tightening up the laws on PII is just a band-aid.

Oversight: I would add a mandatory security audit annually, that they have to pay for, and which occurs during a given quarter at random (so you can't "put on your best face" for a single day).

The security audit cost is partially subsidized if they agree to a second audit 6-9 months after the first (tax funded).

Accountability: I would add Prison time as a minimum penalty for the CEO and CIO, and the punitive damages must be a percentage of their profits (no flat rates), which is in addition to any compensatory damages awarded to plaintiffs. The penalty shall be used to help pay for future audits.

I think we also need levels of PII or something, maybe a completely different framework.

There’s this pattern I see at work where you want to have a user identifiable by some key, so you generate that key when an account is created and then you can pass that around instead of someone’s actual name or anything. The problem though, is that as soon as you link that value to user details anywhere in your system that value itself becomes PII because it could be used to correlate more relevant PII in other parts of your system. This viral property it has creates a situation where a stupid percentage of your data must be considered PII because the only way it isn’t is if it can be shown that there is no way to link the data to anybody’s personal information across every data store in the company.

So why is this a problem? Because if all data is sensitive none of it is. It creates situations where the production systems are so locked down that the only way for engineers to do basic operations is to bend the rules, and inevitably they will.

Anyway, I don’t know what the solution is but I expect data leaks will continue to be common passed the point when the situation is obviously unsustainable