Iowa Senate Bill SF495

Iowa 2023-2024 Regular Session

• Introduced: 3/2/23

Caption

A bill for an act relating to affirmative defenses for entities using cybersecurity programs.(Formerly SSB 1095.)

Impact

The bill has significant implications for state laws concerning data privacy and security. By articulating clear definitions and guidelines around cybersecurity protocols, it aims to strengthen the overall cyber hygiene of entities handling personal data. Moreover, it addresses how liability may be managed in the event of a data breach, thereby potentially easing concerns for businesses afraid of litigation stemming from cybersecurity incidents if they comply with the regulations set forth in the bill.

Summary

Senate File 495 introduces provisions for affirmative defenses for entities implementing cybersecurity programs. The bill stipulates that a 'covered entity'—defined as any business processing personal or restricted information—can establish an affirmative defense against tort claims related to data breaches if it follows an industry-recognized cybersecurity framework. The legislation seeks to enhance the accountability of businesses in safeguarding sensitive data while also providing them a level of protection against legal repercussions if they adhere to established security standards.

Contention

There are notable points of contention surrounding the bill, particularly regarding the omission of a private right of action for individuals. Critics argue that without the ability for individuals to seek legal recourse in the event of a data breach, the bill may not sufficiently protect consumers’ rights and could undermine accountability for businesses that fail to implement necessary security measures. This has sparked discussions about the balance between fostering a business-friendly environment and ensuring adequate protection for personal information.