Legislation applies to those storing personal identifying information

The House Financial Services Committee today voted to advance legislation sponsored by state Rep. Diana Farrington, of Utica, requiring companies that store identity information to disclose when their data has been compromised in a timely fashion.

There is no specific notification timeframe within current state law when a data breach occurs and financial, health, government or bank records have been accessed. There is also no requirement to notify the state when a wide-scale breach happens. Ultimately, this leads to consumers being the last to know that their information has been compromised.

“Consumers have a right to know when their personal information has been stolen and this legislation intends to make sure they are notified in a timely manner,” said Farrington, who chairs the committee. “This legislation is about one thing – the Michigan consumer and keeping their money safe and secure so that wrongdoers do not hold an advantage.”

House Bills 4186-87 create the Data Breach Notification Act. Similar to a plan offered by Farrington during the 2017-18 legislative term, the bills clearly define what personal identity information is covered, who is responsible for reporting a breach and the acceptable time in which to do so.

According to data collected by the Identity Theft Resource Center, there were close to 1,600 documented data breaches recorded in the United States in 2017. The report total decreased to 1,244 last year, but the number of people exposed rose from roughly 179 million people in 2017 to roughly 447 million the following year.

“With online retail becoming more and more popular, we have to assume that data collection will only rise,” Farrington said. “Compromised data is an issue that needs our full attention. Checks need to be in place so consumers are protected. Cracks in our laws will lead to residents being impacted severely when a breach occurs.”

HBs 4186-87 move to the House Ways and Means Committee for further consideration.