HB1127 ND passed

The department of financial institutions, financial institutions, response to department requests, renewal of licenses, orders to cease and desist, issuance of licenses, revocation of licenses, and exemptions from licenses.

privacy

Plain-English summary

1. **ONE-SENTENCE SUMMARY**: This bill establishes a data security program for financial institutions in North Dakota and outlines requirements for licensing and compliance.

2. **KEY REQUIREMENTS**:
   - Implement a data security program to protect customer information.
   - Respond promptly to requests from the Department of Financial Institutions.
   - Ensure timely renewal of licenses and compliance with cease and desist orders.
   - Maintain records and documentation related to data security practices.

3. **DEADLINES**:
   - The bill is effective immediately upon passage, so businesses should start compliance efforts right away.

4. **PENALTIES**:
   - Non-compliance may result in fines or revocation of licenses, as enforced by the Department of Financial Institutions.

5. **SMB IMPACT**: Small businesses in the financial sector will need to invest in data security measures and ensure they are compliant with licensing requirements to avoid penalties, which may require additional resources and training.

Source description

AN ACT to create and enact chapter 13-01.2 of the North Dakota Century Code, relating to the financial institution data security program; and to amend and reenact sections 6-01-04.1 and 6-01-04.2, subsection 7 of section 6-03-02, sections 13-04.1-01.1, 13-04.1-11.1, 13-05-07.1, 13-08-10, 13-08-11.1, and 13-09.1-14, subsection 3 of section 13-09.1-17, sections 13-09.1-38 and 13-10-05, subsection 1 of section 13-11-10, section 13-12-19, subsections 6, 21, and 22 of section 13-13-01, and sections 13-13-04 and 13-13-18 of the North Dakota Century Code, relating to the department of financial institutions, financial institutions, response to department requests, renewal of licenses, orders to cease and desist, issuance of licenses, revocation of licenses, and exemptions from licenses.

Not legal advice. Summaries are generated by AI from publicly available bill text and may contain errors or omissions. Always consult counsel before making compliance decisions.