S0540 FL failed

Office of Financial Regulation

privacy

Plain-English summary

1. **ONE-SENTENCE SUMMARY:** This bill aimed to require certain financial service providers to implement comprehensive information security programs to protect sensitive personal information and cooperate with investigations of financial exploitation of vulnerable adults.

2. **KEY REQUIREMENTS:**
   - Loan originators, mortgage brokers, and mortgage lenders must develop and maintain a written information security program.
   - Money services businesses must also create and uphold a written information security program.
   - All parties must protect their information systems and nonpublic personal information.

3. **DEADLINES:** The bill has failed and will not take effect, so there are no compliance deadlines.

4. **PENALTIES:** Since the bill did not pass, there are no fines or enforcement mechanisms associated with it.

5. **SMB IMPACT:** Small businesses in the financial sector would have needed to invest time and resources into developing security programs; however, since the bill failed, they are not currently required to do so.

Source description

Requiring the Department of Children and Families to cooperate with and seek cooperation from the Office of Financial Regulation concerning certain protective investigations of suspected financial exploitation of specified adults; requiring loan originators, mortgage brokers, and mortgage lenders to develop, implement, and maintain comprehensive written information security programs for the protection of information systems and nonpublic personal information; providing additional acts that constitute a ground for specified disciplinary actions against loan originators and mortgage brokers; authorizing the office to make investigations and examinations to aid the Department of Children and Families with certain protective investigations; requiring money services businesses to develop, implement, and maintain comprehensive written information security programs for the protection of information systems and nonpublic personal information, etc.

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.