Hey Everyone,
I read this article from a vendor from which we sell and install there products which I found to be very interesting. I can't take credit for the information here, but I felt it important enough that I should post it here to inform you about the new law and bring up the question, "Is your state next"? My opinion, without a doubt, is YES!!! It may take some time to pass in your state or some similar version of it, however it will eventually end up being law in every state in some form or another. The next question would be "are you ready for it when it does make it"? and if not you really should be thinking about how and when you will be ready. Please read on and let it sink in.
Are you 201 compliant? New Massachusetts data breach law in 2010
The deadline for businesses to be in compliance with the new data security law in Massachusetts, 201
CMR 17, has been pushed out again so that business can be ready for when it's in place. In case you weren't aware of the new law, you now have a six-month to get ready for it. And you have to be ready for it if you have just one customer that resides in Massachusetts. But even if you don't have customers in Massachusetts, you should keep an eye on this one as there is talk it could lead to tougher laws in other states or at the federal level.
Here's a short FAQ on the new law.
So what makes this law tougher than other state laws?
It's broader in scope and has specific detail about what companies must do to protect consumers’ private data.
What does it consider
unprotect personal information?
The Massachusetts law defines unprotected personal information as a resident's first name and last name or first initial and last name in combination with any one or more of the following: 1) Social Security number, 2) driver's license number or state-issued identification card number, or 3) financial account number, or credit or debit card number, with or without any required security code, access code, personal identification number or password, that would permit access to a resident’s financial account.
What practices does it say IT has to follow?
The Massachusetts law says companies must:
*Designate at least one employee to manage data security
*Identify all the data that your company collects, and limit the amount of data collected to that which is reasonably necessary to accomplish a business need
*Identify all the internal and external risks to data security
*Encrypt all sensitive data that is sent electronically or stored on laptops or other portable devices (Senate Bill 173 was recently introduced, not yet passed, to remove this mandate and instead does not dictate what technologies should be used to protect data. Bill 173 also introduces guidelines specific to small businesses.)
*Install and regularly update computer firewall and security software
*Create a written Information Security Program (ISP), which details:
*What sensitive data you collect
*Describes controls that limit employee access to sensitive data on a need-to-know basis
*System of individualized passwords or other devices that track who is using computer or paper records
*Training for employees on security procedures, and disciplinary measures for employees who break the rules
*Take reasonable steps to ensure that all third-party service providers with access to the customer records comply with the Massachusetts law
*Audit the system at least annually
With the new law, when do companies have to disclose a breach?
As soon as a company knows that data is missing or a potential breach as occurred. One good point in the law is that it leaves room for delaying breach notification if the police are actively investigating the case and publicity could impede the criminal investigation.
Does this new law supersede federal laws?
No, the Massachusetts law does not apply where federal law is applicable. For example,
healthcare providers would follow
HIPAA and
HITECH acts.
The Commonwealth of Massachusetts has put together
checklist to help you determine if you are compliant. If you think that the new Massachusetts law could affect you, please consult an expert in privacy law that can help you determine if you comply and what changes you may need to take.