Mississippi Senate Bill SB2777

Mississippi 2024 Regular Session

• Introduced: 2/19/24
• Refer: 2/19/24
• Failed: 3/5/24

Caption

Cybersecurity incident liability; provide limitation on liability for certain entities that adopt cybersecurity standards.

Impact

If enacted, SB2777 would significantly affect state laws concerning how local governments and commercial entities manage cybersecurity. The bill may enhance the accountability of these entities by establishing clear standards and creating a supportive legal framework for adopting best practices in cybersecurity. Compliance with established frameworks like NIST and others will be incentivized, allowing entities to avoid liability if they substantially align their programs with these standards. This law would essentially insulate compliant entities from legal challenges associated with cybersecurity breaches.

Summary

Senate Bill 2777 is designed to limit the liability of counties, municipalities, and other political subdivisions of the state in the event of a cybersecurity incident, given that they adopt certain minimum cybersecurity standards. This act aims to provide a rebuttable presumption against liability for commercial entities that comply with specified cybersecurity frameworks and guidelines, including those set forth by the National Institute of Standards and Technology (NIST). The intent is to encourage entities to implement strong cybersecurity measures without the fear of facing legal repercussions should a cyber incident occur despite those efforts.

Contention

While SB2777 has been framed as a necessary step to bolster cybersecurity readiness, potential points of contention exist regarding its implications for accountability and victim redress in the event of data breaches. Critics may argue that limiting liability could lead to complacency among local governments and businesses regarding the implementation of robust cybersecurity measures, as they might rely too heavily on the protections offered by the bill. Additionally, questions may arise as to how the standard of 'substantial compliance' will be interpreted and enforced, which could lead to legal disputes about what constitutes adequate cybersecurity efforts.