New York Enacts Data Security and Notification Law

Following the trend in other states, on August 10, 2005, New York enacted the Information Security Breach and Notification Act (the "NY Security and Notification Act"), an important data security and notice statute. The NY Security and Notification Act will take effect on December 8, 2005, and will impose certain reporting burdens on state and local agencies and companies doing business with New York residents. Generally, the NY Security and Notification Act requires businesses and state agencies, upon discovery or notification of a security breach in their computer systems, to notify any New York resident whose personal information has been acquired, or is reasonably believed to have been acquired, without authorization. This Technology Commentary provides a brief overview of the NY Security and Notification Act.