Proposed Amendment to the North Carolina Identity Theft Protection Act

guest · Jul 26, 2020

Proposed Amendment to the North Carolina Identity Theft Protection Act
July 24, 2020
https://www.jdsupra.com/legalnews/proposed-amendment-to-the-north-21810/

In April 2019, with the introduction of House Bill 904, a bi-partisan effort was made to strengthen cyber security in North Carolina.

H.B. 904 seeks to make North Carolina's Identity Theft Protection Act one of the strongest in the nation by broadening the definition of what constitutes a data breach, what proactive steps companies and employers must take to prevent a breach of their customers or employees' personal information, and the penalties available to victims of data breaches, among other provisions.

Therefore, the time for companies that do business in North Carolina, or that otherwise maintain North Carolinians' personal information, to begin preparing for these changes is now.
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If passed, H.B. 904 will impose an affirmative duty on companies doing business in North Carolina, or who own or license North Carolinians' personal information, to implement and maintain reasonable security procedures and practices to protect that information.

If a breach does occur, the North Carolina Identify Theft Protection Act currently requires a company to notify impacted individuals and the North Carolina Attorney General without "reasonable delay."
Further, if a company investigates whether a breach occurred, it must retain a copy of the investigation report for three years. [...]
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