New York Amends Security Breach Notification Law And Imposes New Security Obligations

New York Governor Andrew M. Cuomo has signed into law a bill that strengthens the state's existing security breach notification rules and imposes significant new obligations on companies that own or license the "private information" of New York residents.

New Security Requirement

The new law, known as the Stop Hacks and Improve Electronic Data Security Act (SHIELD Act), requires that any business — not just a company operating in New York — that owns or licenses computerized data that includes the private information of even one New York resident must develop, implement and maintain reasonable safeguards to protect the security, confidentiality and integrity of that information.