New Jersey Senate Bill S1156

New Jersey 2022-2023 Regular Session

• Introduced: 1/31/22
• Refer: 1/31/22

Caption

Requires EDA to establish program offering low-interest loan to certain financial institutions and personal data businesses to protect business's information technology system from customer personal information disclosure.

Impact

By providing financial assistance in the form of loans with interest rates not exceeding three percent, the bill aims to promote economic growth and operational efficiency within eligible businesses, which include state-chartered banks, savings institutions, credit unions, and personal data firms. The support mechanism helps these entities to invest in crucial technological upgrades they might otherwise find economically challenging. The broader impact will likely enhance data security not only for the businesses involved but also for their customers, leading to a more secure business environment in New Jersey.

Summary

Senate Bill S1156 mandates the New Jersey Economic Development Authority (EDA) to create a program providing low-interest loans or loan guarantees to qualifying businesses, specifically those in the financial sector or those primarily engaged in the protection of personal data. The intention behind this bill is to mitigate the risks of data breaches by facilitating the purchase and installation of modern information technology and software systems that can safeguard customer personal information from unauthorized access. This program is crucial for maintaining consumer trust and enhancing security measures in an increasingly digital economy.

Contention

Discussions around the bill may highlight concerns regarding state intervention in business financing and the potential for businesses to become reliant on government support. Opponents might argue that while the intent is to strengthen data protection, such measures could lead to misuse or inefficacy if not properly monitored. Moreover, there could be debates over whether the low-interest loans are sufficient to incentivize adequate investment in cybersecurity practices across all sizes of businesses, particularly smaller enterprises that may still struggle with financing even with state support.