<div dir="ltr"><div dir="ltr"><div dir="ltr" class="gmail_signature"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><a href="https://www.insideprivacy.com/data-security/data-breaches/state-data-breach-notification-laws-2018-in-review/">https://www.insideprivacy.com/data-security/data-breaches/state-data-breach-notification-laws-2018-in-review/</a></div><div dir="ltr"><p>Recent years have seen significant amounts of legislative activity
related to state data breach notification laws, and 2018 was no
exception. Not only did South Dakota and Alabama enact new data breach
notification laws in 2018, becoming the last of 50 U.S. states to enact
such laws, but other states also enacted changes to existing data breach
notification laws during 2018 to expand their scope and implement
additional notification requirements. Following up on our <a href="https://www.insideprivacy.com/data-privacy/privacy-and-cybersecurity-a-global-year-end-review/">global year-end review of major privacy and cybersecurity developments</a>,
we’ve summarized the major developments and trends observed with
regards to state data breach notification laws over the past year.</p>
<strong>Data Breach Notification Laws in All 50 States.</strong> With the enactment of new data breach notification laws in <a href="https://www.insideprivacy.com/data-security/south-dakota-breach-notification-law-breaks-new-ground/">South Dakota</a> and <a href="http://alisondb.legislature.state.al.us/ALISON/SearchableInstruments/2018rs/PrintFiles/SB318-enr.pdf">Alabama</a>,
all fifty states and the District of Columbia have implemented data
breach notification laws. The new laws in South Dakota and Alabama,
which went into effect in mid-2018, included many features commonly seen
in recent amendments to other states’ existing data breach notification
laws, such as expanded PII definitions, explicit notification
deadlines, and state regulator notification requirements.</div><div dir="ltr"><br><strong>Explicit Notification Deadlines.</strong> During
2018, several states also joined a growing trend by revising their data
breach notification laws to include explicit deadlines for notifying
affected individuals. Notably, Colorado enacted a <a href="https://www.insideprivacy.com/data-security/data-breaches/colorado-louisiana-and-vermont-add-to-recent-trend-of-changes-to-state-data-breach-notification-laws/">30-day deadline</a>
from the discovery of the breach for notifying affected individuals,
which matches Florida’s 30-day deadline for the shortest notification
deadline in the U.S. Alabama, <a href="https://apps.azleg.gov/BillStatus/BillOverview/69875">Arizona</a>, and <a href="https://olis.leg.state.or.us/liz/2018R1/Measures/Overview/SB1551">Oregon</a> all passed legislation in 2018 requiring notification of affected individuals within 45 days of discovery of a breach, while <a href="https://www.insideprivacy.com/data-security/data-breaches/colorado-louisiana-and-vermont-add-to-recent-trend-of-changes-to-state-data-breach-notification-laws/">Louisiana</a> and South Dakota passed legislation requiring notification of affected individuals within 60 days of discovery.</div><div dir="ltr"><br><strong>Regulator Notification Requirements.</strong> Several
states passed legislation in 2018 to require notification of a breach
to the state Attorney General or other state regulators. However, most
of these states will only require such notifications if a certain number
of state residents have been affected by the breach. For instance,
while Colorado will now require <a href="https://www.insideprivacy.com/data-security/data-breaches/colorado-louisiana-and-vermont-add-to-recent-trend-of-changes-to-state-data-breach-notification-laws/">notification</a>
to the state Attorney General within 30 days, such notification will
only be required if more than 500 residents are notified of the breach.
Similarly, while Arizona passed legislation to require notification of
the state Attorney General within 45 days, this requirement only applies
if more than 1,000 state residents are notified of the breach.</div><div dir="ltr"><br><strong>Expanded PII Definitions.</strong> Several states
also passed legislation expanding the types of PII covered under data
breach notification laws. For instance, several states expanded their
breach notification laws’ PII definitions to include an individual’s
name in combination with biometric data, medical or health information,
student or military ID numbers, online account credentials, or passport
numbers.</div><div dir="ltr"><br><strong>Credit Monitoring Requirements.</strong> As part
of a small but growing trend, several states also implemented, or
enhanced, requirements to provide free credit monitoring or identity
theft protection services following certain breaches. In the spring of
2018, <a href="https://www.insideprivacy.com/data-security/data-breaches/delaware-amends-data-breach-notification-law-to-require-credit-monitoring-attorney-general-notification/">amendments</a>
to Delaware’s data breach notification law entered into force that
required entities to offer individuals whose Social Security numbers
have been breached one year of free credit monitoring services. In
mid-2018, Connecticut passed an <a href="https://www.cga.ct.gov/2018/ACT/pa/pdf/2018PA-00090-R00SB-00472-PA.pdf">amendment</a>
to its data breach notification law to require entities to offer two
years of free identity theft prevention and, if appropriate, identity
theft mitigation services to individuals whose Social Security numbers
have been breached. Although Connecticut and Delaware, along with
California, are the only states whose laws require the provision of
credit monitoring or identity theft protection services after certain
breaches, it will bear watching to see if other states implement similar
requirements in 2019.</div><div dir="ltr"><br><strong>Sector-Specific Notification Requirements.</strong>
While each U.S. state now has a generally applicable data breach
notification law, several states have also begun to implement additional
sector-specific data breach notification requirements. Following the
implementation of the New York Department of Financial Services’
cybersecurity regulation in 2017, which included a 72-hour deadline for
regulator notifications, South Carolina, Vermont, and Virginia also
passed sector-specific data breach notification requirements in 2018.
South Carolina’s law, similar to the NYDFS regulations, will require
regulator notifications within 72 hours for certain licensed insurers.
Vermont, meanwhile, <a href="https://www.insideprivacy.com/data-security/data-breaches/colorado-louisiana-and-vermont-add-to-recent-trend-of-changes-to-state-data-breach-notification-laws/">passed a law</a>
implementing additional information security requirements for “data
brokers” that will require such entities to disclose security breaches
to state regulators as part of an <a href="https://www.insideprivacy.com/data-privacy/vermont-publishes-new-guidance-on-law-regulating-data-brokers/">annual required registration process</a>. Finally, Virginia also passed new <a href="https://lis.virginia.gov/cgi-bin/legp604.exe?181+sum+HB183">legislation</a> during 2018 that will require income tax preparers to notify regulators of a breach of tax “return information.”</div><div dir="ltr"><br><strong>Private Rights of Action and Safe Harbors.</strong>
Part of the California Consumer Privacy Act, passed by the California
legislature earlier this year, will create a private right of action for
certain data breach-related harms. As subsequently <a href="https://www.insideprivacy.com/united-states/state-legislatures/california-legislature-passes-amendments-to-expansive-consumer-privacy-law/">amended</a>
by the legislature, the CCPA will provide a private right of action
following a breach of an individual’s PII caused by an entity’s failure
to implement and maintain reasonable security measures. However, the
individual must provide the entity with written notice of the alleged
violations of the CCPA, and there is no private right of action if the
entity cures the alleged violations within thirty days after receiving
notice and provides the consumer an express written statement that the
violations have been cured. In addition, the Ohio legislature passed a <a href="https://www.legislature.ohio.gov/legislation/legislation-summary?id=GA132-SB-220">bill</a>
earlier this year that provides entities with a safe harbor from
certain types of tort-based liability related to data breaches if the
entity implements a cybersecurity program that satisfies certain
requirements set forth in the bill.<br><div><div><div><div><div><div><div><b><span style="font-size:10pt"></span></b><span style="font-size:10pt"></span><span style="font-family:arial,helvetica,sans-serif"></span><br><br></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div>