Key Point: If signed by the Governor, the legislation will require entities doing business in New York to implement and maintain reasonable safeguards to protect the security, confidentiality and integrity of private information.
As it closed its session, the New York legislature passed the Stop Hacks and Improve Electronic Data Security Act (SHIELD Act). The bill, which the New York Attorney General’s (“AG”) office strongly supports, is now at the governor’s office for review. New York AG Letitia James stated New York will join the “increasing number of states that require reasonable data security protections, while being careful to avoid excessive costs to small business and without imposing duplicate obligations under federal or state data security regulations.”
If Governor Cuomo signs the bill, New York will build upon its existing data breach notification law, and add a new requirement for data custodians in the private and public sectors to adopt reasonable measures to safeguard sensitive data of New York residents.
Key Point: The Illinois data breach notification statute will now require entities to notify the Illinois Attorney General if a breach affects 500 or more Illinois residents.
The 86th Texas Legislature passed several bills related to cybersecurity during its regular session, which came to a close on May 27, 2019.
[Update: After publication of the below post, AB 1035 was amended to remove the below-referenced language. The fact that the California legislature considered defining what constitutes “reasonable security procedures and practices” for purposes of the CCPA’s private right of action but, at least as of now, did not proceed with such legislation leaves businesses subject to the CCPA with little to no legislative direction as to how they can demonstrate that they are undertaking reasonable security procedures and practices. It also exposes the CCPA to the argument that the subject language is void for vagueness. Given the substantial penalties businesses are exposed to under the CCPA’s private right of action, the failure of the legislature to address this issue is notable especially considering that Ohio implemented legislation last year that California could have used as a guide.]
