Iowa Senate Bill SSB1095

Iowa 2023-2024 Regular Session

• Introduced: 1/30/23
• Refer: 1/30/23

Caption

A bill for an act relating to affirmative defenses for entities using cybersecurity programs and electronic transactions recorded by blockchain technology.(See SF 495.)

Impact

This bill significantly impacts state laws regarding how businesses are expected to manage and protect sensitive information. By providing clear definitions and standards for cybersecurity programs, SSB1095 encourages entities to adopt robust security measures to safeguard personal data. Furthermore, the legislation creates affirmative defenses that allow businesses to protect themselves against legal actions alleging negligence in the event of data breaches, provided they comply with defined cybersecurity practices. This aligns legal liability with effective cybersecurity strategies, promoting a more responsible management of data privacy.

Summary

Senate Study Bill 1095 is legislation aimed at enhancing the legal framework surrounding cybersecurity and the use of blockchain technology in electronic transactions. The bill modifies existing definitions in the Uniform Electronic Transactions Act to incorporate blockchain technology, establishing a legal basis for using this technology in contractual agreements and electronic record-keeping. The modifications emphasize the importance of protecting personal information and ensure that businesses have a structured approach to cybersecurity through the use of industry-recognized frameworks.

Contention

There may be points of contention surrounding the legislation, particularly in regard to the balance between legal protections afforded to businesses and the rights of individuals whose personal information is being processed. Critics might argue that the affirmative defenses could allow companies to evade accountability for data breaches if they claim to follow the prescribed cybersecurity measures. Additionally, there may be concerns about the adequacy of the industry-recognized frameworks that are established for compliance, as companies might leverage minimal standards to mitigate their legal exposure while potentially leaving consumers vulnerable.