Relative to the security of personal financial information
Impact
If enacted, H281 would significantly strengthen state laws regarding the management and protection of personal financial information. This would impose new compliance responsibilities on financial institutions, businesses, and any entities that handle personal information, requiring them to develop detailed risk assessments and implement measures to protect sensitive data. The updated regulations would make it clear that active monitoring and management of potential threats is essential for compliance, promoting a more secure environment for consumers in the state.
Summary
House Bill 281, also known as the Act Relative to the Security of Personal Financial Information, seeks to enhance the security requirements for entities that collect or manage personal information of Massachusetts residents. The bill mandates that all organizations subject to this chapter develop and maintain robust information security programs designed to protect residents' personal data from unauthorized access and potential breaches. It outlines specific administrative, technical, and physical safeguards that must be implemented to ensure the confidentiality and integrity of the information held by these entities.
Contention
There are notable points of contention regarding the extent and specifics of compliance that H281 imposes. Critics argue that the costs associated with implementing the required security measures could burden smaller businesses and could lead to increased prices for consumers. Supporters, however, assert that the need for better protection against identity theft and data breaches justifies potential costs. The legislation may also provoke discussions around the balance between consumer protection and the operational flexibility of businesses particularly in terms of the private information they collect and manage.
Further providing for definitions, for notification of the breach of the security of the system, for exceptions and for notice exemption; repealing provisions relating to civil relief; providing for protection of personal information, for civil relief, for information security and for applicability; and repealing provisions relating to applicability.
Relating to a breach of computer security involving sensitive personal information and to the protection of sensitive personal information and certain protected health information.