Geoff Scott is a guest contributor at Termly, and his expertise lies in data & privacy management as well as payment processing. What are some critical state privacy laws? The CCPA incorporates the core principles of the data protection and data privacy requirements in the General Data Protection Regulation (GDPR), the far-reaching privacy protection law enacted by the European Union. The language and definitions in these laws provide a baseline for the development of a comprehensive federal data privacy law. Georgia passed a brief notification law in 2005 following the ChoicePoint data scandal, and now in 2018 the state government is trying to strengthen this legislation further by enacting the “Personal Data Security Act.”. Connecticut does not have specific statutes regarding consumer or children’s data privacy, but its requirement for online businesses to create a ‘publicly displayed’ privacy protection policy for social security numbers is included in its data disposal statute. Also worth mentioning is that KRS 365.734 (which went into effect in July 2014) restricts the use of student PII by cloud computing service providers — barring them from collecting email addresses, phone numbers, photos, and other such data that helps identify students. However, this same piece of legislation does not require government entities to do so. What state and federal laws govern HR data privacy compliance? The most comprehensive state data privacy legislation, the California Consumer Privacy Act (CCPA), was signed into law on June 28, 2018, and goes into effect on January 1, 2020. Sure, all 50 states now have a data breach notification rule usually also calling for reasonable data security. This legislation pairs with their already existing statute mandating breach notifications to help make New Jersey one of the tougher pro-privacy states in the US. The law currently requires businesses to extend the rights provided by the CCPA to their employees. They also limit the sharing of PII related to any library user (actual or online), but do allow the release of that information to law enforcement agencies if necessary. Note that this is still much more generous than the 72-hour window granted by Europe’s GDPR. Not only does it demand businesses have a means of disposing consumer data after its use has expired, but it also requires companies to implement security measures that match the size and scope of the organization — making it one of a growing number of state bills that demands more from businesses when it comes to protecting user data. The SSN Privacy Act, which came out the following year (2006), was enacted in an attempt to mitigate the damage caused by data breaches. United States Data Protection Laws: State-Level Approaches to Privacy Protection, A Data Risk Assessment Is the Foundation of Data Security Governance, eBook: 10 Questions for Assessing Data Security in the Enterprise, Standards for The Protection of Personal Information of Residents of the Commonwealth (201 CMR 17.00), Data Privacy Solutions: How to Choose the Right One, Privacy Regulations Changing the Face of Cybersecurity, GDPR Data Subject Rights: How to Handle the Requests. This article breaks down the crucial parts of each state’s privacy regulation law/bill — including who they cover, when they take effect, penalties, how to achieve compliance as well as why states took the reins before the federal government to protect consumer’s personal data. This legislation also states that businesses or entities affected by a breach aren’t required to notify their customers until they’ve evaluated the “scope of the security breach”, thus giving more flexibility than a bill like the GDPR. The NYPA would complement New York’s existing data breach notification law by expanding protection of personal information. A comprehensive assessment of all laws applicable to breaches of information other than PII. Their bill also doesn’t allow civil action for breach negligence unless the offending company has “engaged in a course of repeated and willful violations” of the law. 1. If passed, SD.341 “An Act Relative to Consumer Data Privacy,” is slated to go into effect January 1, 2023. The U.S. lacks a … In 2015, Wyoming’s state legislature amended their data breach notification law to incorporate more types of information. Therefore, private employees must look to common, or judge-made, law to find privacy protections. In 2014, 110 bills were introduced on student data privacy in 36 states, with 24 signed into law. At least 25 states have laws that address data security practices of private sector entities. Additionally, California also requires non-financial businesses to disclose to customers the types of entities with which it shares their information. Failure to address a violation leads to a civil penalty of up to US$7,500 for each intentional violation and US$2,500 for each unintentional violation. If you have time, a share would mean a lot to us — don’t forget to @Termly_io and use the hashtag #Termly! Consumers can opt out if they choose. In some cases, there is less privacy protection in states that have a law than does who do not. Certain sensitive data is exempt from CCPA requirements, including protected health information (PHI) already covered by the Health Insurance Portability & Accountability Act (HIPAA), medical information already covered by the California Confidentiality of Medical Information Act, and some information covered by the Gramm-Leach-Bliley Act (GLBA). Canada. In California, data security regulations apply to businesses that collect or maintain PII, as well as their third-party contractors. This is largely due to a widely publicized data mishap in 2005. Most of these data security laws require businesses that own, license, or maintain personal information about a resident of that state to implement and maintain "reasonable security procedures and practices" appropriate to the nature of the information and to protect the personal information from unauthorized access, … A few states have also amended previously existing bills to further clarify or expand upon the type of potentially compromised data that necessitates a breach notification. However, there is a pending bill that would amend that law to exclude employees from the definition of “consumer.”. It depends on a number of factors, including the impact on the individuals, the impact on U.S. commerce and whether the company has a subsidiary in the U.S. Foreign businesses may be subject to U.S. laws if they collect, process or share the personal information of U.S. residents. Almost every state in the U.S. has its own laws for the secure handling of sensitive data, such as medical, financial or educational records. Although many of the bills included in the table will fail to become law, comparing the key provisions in each bill can be helpful in understanding how privacy is developing in the United States. Data disposal is also required (and has been since 2004 as well). These states are actively developing and amending their data privacy legislation, and detailing the similarities and differences in their approaches will help illuminate the complexity of privacy protection. In 2015, more than 180 student privacy bills were introduced, of which 28 became laws. Vermont’s legislation regarding data breaches requires businesses to notify consumers within 45 days from point of discovery, however the state attorney general must be contacted and informed within 14 days. All 50 U.S. states have data breach notification laws, at least 35 states and Puerto Rico each have separate data disposal laws, and at least 25 states have their own data privacy laws. This is a great big list of data privacy laws by state created. The language and definitions in these laws provide a baseline for the development of a comprehensive federal data privacy law. This legislation made them the 48th state to tackle the issue of data breaches, and while they may seem a bit late to the party, their bill hits upon all the major areas of online privacy today. Penalties for violations: The NYPA does not provide the scope of penalties, leaving the decision to the court. 2018 U.S. State Laws Round Up: Alabama – Alabama passes its first data breach notification law. Penalties for violations: Violation remediation can include a civil action for willful violation, or attorney’s fees if the government entity fails to follow the advisory opinion. For example, the law only require businesses to notify the affected after the company has determined “the scope of the breach” and had time to restore the reasonable integrity of the system. For example, all 50 U.S. states have adopted data breach notification laws, but there are differences in the definition of personal data and even in what constitutes a data breach. Disclaimer: Termly Inc is not a lawyer or a law firm and does not engage in the practice of law or provide legal advice or legal representation. Pennsylvania residents are also encouraged to take legal action against businesses that neglect to notify them of a breach — deeming such negligence to be a form of deceptive trade. Michigan has had legislation addressing data breaches since 2004, but does not give a specific timeframe for breach notifications. Furthermore, this legislation gives businesses 45 days to notify affected consumers of breaches, whereas many state governments use less clear terminology. There are several different types of privacy legislation currently in place. California introduced a new law in September 2018 that protects internet-of-things data by ensuring manufacturers equip devices with appropriate security features. Each type of legislation tries to protect a certain area of privacy. Privacy Act of 1974 — Protects personal information maintained by federal agencies, Health Insurance Portability and Accountability Act (HIPAA) / Health Information Technology for Economic and Clinical Health Act (HITECH) — Protects personal health information (PHI), Gramm–Leach–Bliley Act (GLBA)— Protects financial information, Children’s Online Privacy Protection Act (COPPA) — Protects children’s privacy, Family Educational Rights and Privacy Act (FERPA) — Protects students’ personal information, Fair Credit Reporting Act (FCRA) — Governs the collection and use of consumer information, California Consumer Privacy Act (CCPA) — Protects privacy rights for residents of California, The New York SHIELD Act — Protects personal and private information of residents of the state of New York, Personally identifiable information (PII) — Information that could be used to identify, contact or locate an individual or distinguish one person from another, such as name, address and Social Security number, Personal health information (PHI) — Information on health status, medical history, insurance information, and other private data that is collected by healthcare providers and could be linked to a certain person, Personally identifiable financial information (PIFI) — Credit card numbers, bank account details or other data concerning a person’s finances, Student records — An individual’s grades, transcripts, class schedule, billing details and other educational records. It also encourages businesses to enact a data privacy and security assessment, to ensure they’re complying to the full extent of this newly amended law. Provisions: The NYPA is very similar to the CCPA: It would empower individuals to inquire about what data a business has collected on them and whom they have shared it with, request that the business correct or delete the data, and opt out of having their data shared with or sold to third parties. The law extended much of Europe’s revised privacy laws, known as GDPR, to the state. Although there’s no specific timeline in which businesses must inform their users a breach occurred, the process seems more transparent than in other states — with the state attorney general listing recent breach notifications online and publishing annual reports of the breaches that transpired during that year. The following discusses some of the important events in privacy in the United States as well as some of the key laws adopted by federal and state governments to protect privacy. The law applies to businesses of any size, is not limited to for-profit businesses and does not include a revenue threshold like the CCPA. The U.S. needs federal oversight on something as important as citizen digital privacy to ensure one standard for many — competing data laws will only result in weaker laws across the board. Ryan specializes in evangelizing cybersecurity and promoting the importance of visibility into IT changes and data access. Further, eBook providers (i.e. Alaska’s “Personal Information Protection Act” became the law of the land on July 1st, 2009. Although Virginia first enacted a breach notification during the 2008 legislative session, they amended it in 2017 to expand what types of scenarios necessitate widespread notifications. 28 different statutes protecting data privacy in the private, public, and health sectors Data breach notifications are mandatory for public agencies… and non-affiliated third parties according to Kentucky data privacy law. They’ve also implemented multiple bills and amendments that target students and their privacy, such as the Utah Student Privacy Act and Public School Data Confidentiality Disclosure Rule. The law requires federal agencies follow various strict record-keeping requirements. However, there are two scenarios that this 30-day window can be expanded or potentially negated: All breaches that occur, whether they fall into the previously stated categories or not, must be reported to the attorney general and kept on record for five years. Even if they aren’t yet beholden to some form of data privacy law, businesses need to start preparing for the inevitable. The “Arkansas Personal Information Protection Act” requires businesses to notify consumers “in a timely manner” that their data has been compromised. The court will consider the number of affected individuals, the severity of the violation, and the size and revenues of the covered entity. All rights reserved. is mentioned in their legislation. Louisiana passed its own Database Security Breach Notification Law in 2015, likely due to the fact that breaches are becoming a more common (and serious) problem across the world (43% of American companies having been found affected by a breach the previous year). An election commitment resulted in the release of a discussion paper in 2003 , but nothing more. Also worthy of mentioning is that Tennessee is the first state to make such an amendment. a uniform student data privacy terms-of-service agreement addendum for use in contracts, would require a one-time annual notice relating to contracts entered into by the board of education, would require the Department to provide written guidance on the laws relating to student data privacy… South Dakota introduced its first breach notification law this year. How do privacy laws in the U.S. differ from the EU’s GDPR? Originally, only customer records needed to be purged following their use. There are California and Nevada privacy laws, and all the other US states privacy laws. The laws establish consumer courts, to which consumers can direct complaints against defective products and misinformation by sellers. The Legislature delegates the authority to issue advisory opinions to the Commissioner of Administration. Since 2006, Indiana has had laws in place to: The state government also advises businesses on what to do in the event of a breach, and encourages tighter security measures to mitigate breaches in the future. Each type of data handled by a state or government entity, like education data and law enforcement data, is categorized: Data on individuals is tagged as public or non-public, while data not on individuals is tagged as nonpublic or protected nonpublic. Some of these apply only to governmental entities, some apply only to private entities, and some apply to both. As an author, Ryan focuses on IT security trends, surveys, and industry insights. Not adhering to this statute could result in fines (levied by the state government), and/or civil action. E-Reader privacy protects the content of library records, including digital records, search records, and any other information that can identify the consumer. Instead, most regulation is at the state level, so state attorneys general play a key role in enforcement. While Arizona’s first breach notification law was passed in 2006, it was amended on April 11th, 2018 to clear up some vague language about notification timing. Data Privacy vs. Data Security: What Is the Real Difference? © 2020 Netwrix Corporation. It doesn’t apply to state and territory public sector health service providers, such as public hospitals. A significant point is that the data fiduciary responsibility. Please note this is only an information summary and is in no way a substitute either for consulting the laws themselves or for taking appropriately qualified legal advice. California also has individual laws that govern specific types of data and usages. Good luck with your business! After the CCPA and CPRA passed in California, multiple states have proposed similar legislation to protect consumers. There are four major categories of data oversight that US state governments have been addressing in recent legislation: Each of these categories pertains to the ways user information is maintained, used, and shared. Third party providers, on the other hand, must do so “immediately”. In July of 2017, New Jersey enacted the Personal Information Privacy and Protection Act, a bill that restricts the use of customer information by businesses and limits what third party services can do with such information. In February of that year, ChoicePoint (a financial data collector) disclosed it had erroneously sold the data of 145,000 people to a criminal organization. § 45.48.010 et seq. These laws apply to any collection of data on German soil, and Federal Data Protection Agency and 16 separate state data protection agencies enforce them. Some of these state laws impact higher education institutions outside the original state since they … Connecticut also requires employers within the state to notify their workers if they monitor their email accounts or internet access. These state-level regulations often have overlapping or incompatible provisions. Between that, the existing state-level laws and those in other parts of the world, businesses of all sizes must start seriously evaluating their data handling processes and putting the necessary safeguards in place. Specifically, it was enacted to make sure consumers in Pennsylvania have the option to provide alternatives to their social security number in a variety of scenarios, so that their SSN can be better kept secret. For e-commerce sites, America’s data management matrix can be confusing since not every state addresses the four key areas of data oversight. Service providers may use consumer data only at the direction of the business they serve and must delete a consumer’s personal information from their records upon request. Meanwhile, businesses need to stay abreast of the state laws because they can have extra-territorial application and steep penalties for compliance violations. To protect student information, several state legislatures have enacted their own laws governing data security. North Dakota has been requiring breach notifications since June of 2005, and their particular law demands companies notify affected persons without unreasonable delay once a breach has been discovered. Also, breach notifications, when necessary, must be sent out no later than forty-five (45) calendar days unless deemed necessary by a law enforcement agency to complete a criminal investigation. General Data Privacy Principles. Some states are more rigorous than others when it comes to keeping their citizen’s data safe. The privacy laws of the United States deal with several different legal concepts. The 50 state data breach notification laws by state. Destruction/disposal of data is also acknowledged in their privacy statutes. Most of the states, however, have not announced any intention of passing such laws yet, nor has the US government on a federal level. Argentina also actively shares personal information with other countries. Oregon has legislation that addresses both data breaches and the disposal of data. 2019 U.S. State Laws Round Up: Illinois ( SB 1624 ) – Illinois proposes notification requirements to the Attorney General The Governor is expected to sign an amendment to the Personal Information Protection Act, requiring businesses to notify the Attorney General of breaches involving at least 500 Illinois residents. An "X" next to the topic means that state law covers the subject (but not necessarily that the law affords a great deal of privacy protection) and an "0" means that the state does not have a law covering the topic. State laws vary between these niche privacy spheres. Get expert advice on enhancing security, data management and IT operations. Instead, there is a system of federal and state laws that govern particular sectors and types of personal information. Europe’s General Data Protection Regulation (GDPR) has already begun to change the data collection practices of ecommerce businesses across the western world. These laws include: 1. Idaho currently has no legislation enforcing the needs for data disposal, data security, or non-PII privacy. The CCPA will impose certain duties on entities or persons that collect information ab… South Dakota’s law grants businesses a 60-day window following the discovery of a breach to inform affected individuals, unless the attorney general finds the breach to “not likely result in harm of affected persons”. The 50 state data breach notification laws by state. Let's break down what each of these laws … Such legislation makes them one of the state governments seemingly most concerned with protecting the data of underage residents. In most states, the collector of the information retains liability if the third-party contractor fails to properly dispose of the data. At this point, all people, government agencies, and companies who process the PII of others must inform those affected by a breach within 45 days of determining a breach has occurred or face severe fines. Alabama’s data breach notification law went into effect on June 1, 2018. Regarding privacy laws relating to data privacy, like many African countries as expressed by Alex Boniface Makulilo, Kenya's privacy laws are far from the European 'adequacy' standard". Scope: The law applies to any Minnesota government entity. Consumer privacy rules require companies to inform consumers what they’ve collected about them, who they’ve shared it with and how it is used. The Vermont state government also recently passed a bill that heavily scrutinizes data brokers (any entity in the business of collecting the data of others). The proposed regulation is stronger than other state laws in that it requires businesses to put their customers’ privacy before their own profits. Data privacy laws are not particularly new: HIPAA (protecting our personal health information) turned 23 years old this year, the GLBA (protecting our financial data) turns 20, PCI DSS (covering credit card data) turns 15. Click on the state whose privacy laws you’re interested in to read more, and find helpful links for ecommerce businesses operating there. But as of this writing, only California, Nevada, and Maine have privacy laws in effect. Breach notifications are also necessary, and penalties can get costly for non-compliance ($100 per user per day, although the penalty can’t exceed $250,000). Table of Contents When a business receives an inquiry about the information collected and stored about an individual, it must verify that the person making the request is actually who they claim to be before responding. Overview of Changes to Colorado’s Consumer Protection Data Protection LawsWho is impacted by the changes to Colorado’s consumer data privacy laws?Any person, commercial entity, or governmental entity that maintains, owns, or licenses personal identifying information (“PII”) of Colorado residents in the course of its business, vocation, or occupation. As we head further into the 21st century, more laws will be enacted to protect the privacy rights of US citizens. Titled “The Alabama Breach Notification Act”, this piece of legislation applies to both businesses and the third party services they employ. Furthermore, some states specify which entities — individuals, businesses, and/or governments — must notify citizens that a breach has occurred. On June 26, 2018, California passed one of the toughest privacy laws in the United States, the Consumer Privacy Act of 2018. Broad federal consumer protection laws, such as the Federal Trade Commission Act (FTC Act), that are not specifically privacy and data security laws, but are used to prohibit unfair or deceptive practices involving the collection, use, processing, protection and disclosure of personal information. notify affected persons without unreasonable delay, exceeds $250,000 or there are more than 500,000 residents affected, had time to restore the reasonable integrity of the system, most recent amendment to their data breach notification law, Breach of Personal Information Notification Act (BPINA), implement security measures that match the size and scope of the organization, no later than forty-five (45) calendar days, South Carolina’s 2012 breach notification law. 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