Relating to a breach of system security of a business that exposes consumer credit card or debit card information; providing a civil penalty.
Impact
One of the defining features of HB2333 is the establishment of a Data Security Breach Victim Compensation Fund. This fund will utilize collected civil penalties imposed on businesses that fail to secure their systems adequately and experience breaches. It is designed not only to compensate consumers who suffer financial losses due to such breaches but also to reimburse financial institutions for associated costs. This framework aims to provide support for those affected and incentivize businesses to prioritize data security measures.
Summary
House Bill 2333 introduces significant amendments to the Business & Commerce Code, specifically concerning the regulations surrounding breaches of system security that expose consumer credit and debit card information. The bill aims to enhance consumer protection by mandating that businesses undertake better data security measures to safeguard sensitive information. It clearly defines what constitutes a breach of system security and outlines specific responsibilities for businesses in the event of a breach, including notification requirements to the affected consumers and the attorney general.
Contention
However, the implementation of HB2333 is likely to spark discussions regarding the balance between business compliance costs and consumer protection. Some stakeholders might argue that the civil penalties of $50 for each compromised credit or debit card could impose significant financial burdens on smaller businesses, particularly if they experience data breaches. Conversely, advocates for the bill will stress the importance of holding businesses accountable to maintain robust cybersecurity measures to protect consumers effectively.
Identical
Relating to a breach of system security of a business that exposes consumer credit card or debit card information; providing a civil penalty.
Relating to the regulation of the collection, use, processing, and treatment of consumers' personal data by certain business entities; imposing a civil penalty.
Relating to homeland security, including the creation of the Texas Homeland Security Division in the Department of Public Safety, the operations of the Homeland Security Council, the creation of a homeland security fusion center, and the duties of state agencies and local governments in preparing for, reporting, and responding to cybersecurity breaches; providing administrative penalties; creating criminal offenses.
Relating to the regulation of the collection, use, processing, and treatment of consumers' personal data by certain business entities; imposing a civil penalty.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.