Illinois House Bill HB4081

Illinois 2023-2024 Regular Session

• Introduced: 5/10/23
• Refer: 5/10/23

Caption

CYBERSECURITY COMPLIANCE ACT

Impact

Should HB4081 be enacted, it will implement substantial changes to how businesses are required to manage and safeguard personal information within Illinois. Covered entities will need to develop formal cybersecurity programs that not only comply with state law but also align with federal standards such as those set by the National Institute of Standards and Technology (NIST). This compliance may necessitate substantial investments in technology and personnel to ensure conformity with the evolving legal landscape and best practices in data security, which could disproportionately impact smaller businesses with limited resources.

Summary

House Bill 4081, known as the Cybersecurity Compliance Act, aims to establish a comprehensive framework for businesses in Illinois to bolster their cybersecurity measures. The Act creates an affirmative defense for covered entities that develop, maintain, and adhere to a cybersecurity program that meets specified administrative, technical, and physical safeguards. By aligning with recognized cybersecurity frameworks, this bill seeks to enhance the protection of personal information and restricted information against unauthorized access and potential data breaches, thereby fostering a safer digital environment for consumers and businesses alike.

Contention

Notable points of contention around this bill may arise from interpretations of what constitutes adequate compliance with the designated cybersecurity frameworks. Businesses may express concern regarding the potential financial burdens and operational disruptions associated with developing and revamping cybersecurity infrastructure to meet these new requirements. Additionally, the lack of a private right of action in the Act might raise issues about accountability for data breaches, as individuals would not have the means to pursue claims against businesses that fail to protect their information adequately.