Skip to content

Discerning Data

  • About Us
  • Additional Resources
  • Contact Us

DISCERNING DATA

A Faegre Drinker Blog Covering the Latest in Privacy, Cybersecurity and Data Strategy

  • Privacy
  • Cybersecurity
  • Data Strategy
  • Disruptionware

A.G. Schneiderman Announces SHIELD Act to Protect New Yorkers

Share

The Stop Hacks and Improve Electronic Data Security Act (SHIELD Act) was introduced in the New York legislature in early November and would amend New York’s state breach notification law.  The bill was announced after the release of a New York Office of the Attorney General report found a nearly 60% hike in data breaches affecting state residents in 2016 and following the Equifax breach in September, which A.G. Schneiderman is investigating.

Among other things, the SHIELD Act would:

  • Require reasonable security for private information, using standards tailored to the size of the business, while avoiding duplicate regulations and providing incentive to businesses that certify security compliance and provides clear examples of safeguards (e.g., technical, administrative, and physical measures).
  • Carve out “compliant regulated entities,” which are defined as those already regulated by, and compliant with, existing or future regulations of any federal or NYS government entity (including NYS DFS cybersecurity regulations; regulations under Gramm-Leach-Bliley; HIPAA regulations) by deeming them compliant with this law’s reasonable security requirement.
  • Provide safe harbor from AG enforcement actions under this law for “certified compliant entities,” (those with independent certification of compliance with aforementioned government data security regulations, or with ISO/NIST standards).
  • Provide a more flexible standard for small business (less than 50 employees and under $3 million in gross revenue; or less than $5 million in assets): requiring reasonable safeguards “appropriate to the [small business’s] size and complexity.

The proposed legislation broadens the current breach notification law in several ways.  For example, it would apply to anyone holding private information of New Yorkers, rather than just those who “conduct business” in New York.  In addition, it broadens the requirements for reporting a breach to the Attorney General to those who “access” private information in addition to those who “acquire” private information.  Finally, the proposed legislation would require notification for breaches of additional data types, including username-and-password combination, biometric data, and HIPAA-covered health data.

This legislation follows a trend at the state level as states refine their data security and breach notification statutes as the cyber landscape evolves. For example, the California Attorney General in 2016 refined California’s information security statute requiring the implementation of “reasonable security procedures and practices appropriate to the nature of the information” (see Cal. Civ. Code §1798.81.5(b)) by issuing guidance in its 2016 Data Breach Report recommending that this standard would be met with the implementation of the Center for Internet Security’s 20-item list of Security Controls.  See https://www.cisecurity.org/controls/.

The material contained in this communication is informational, general in nature and does not constitute legal advice. The material contained in this communication should not be relied upon or used without consulting a lawyer to consider your specific circumstances. This communication was published on the date specified and may not include any changes in the topics, laws, rules or regulations covered. Receipt of this communication does not establish an attorney-client relationship. In some jurisdictions, this communication may be considered attorney advertising.

About the Author: Ken Dort

Ken Dort is a partner in the firm's Intellectual Property group. Read Ken's full bio on the Faegre Drinker website.

Receive Email Alerts to New Articles

SUBSCRIBE

November 15, 2017
Written by: Ken Dort
Category: Cybersecurity, HIPAA, NIST, Privacy
Tags: NYDFS

Post navigation

Previous Previous post: The Sedona Principles, Third Edition Gives a Shout Out to Information Governance
Next Next post: A Bipartisan Effort to Focus on Healthcare Cybersecurity

Search the Blog

Sign Up for Email Alerts

PODCASTS

Faegre Drinker on Law and Technology

©2023 Faegre Drinker Biddle & Reath LLP. All Rights Reserved. Lawyer Advertising.

  • About Us
  • Additional Resources
  • Contact Us
We use cookies to improve your experience with our website. By browsing our site, you are agreeing to the use of cookies. For more information about how we use cookies, please review our privacy policy and cookie policy. OK
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT