SB44

Existing federal regulations set forth standards for the safeguarding of customer information by certain businesses over which the Federal Trade Commission has jurisdiction that are engaged in activities that are financial in nature or incidental to such financial activities. (16 C.F.R. Part 314) The standards require such businesses to, among other things: (1) develop, implement and maintain a comprehensive information security program; and (2) notify the Federal Trade Commission of certain unauthorized acquisitions of customer information, which existing federal regulations designate as a “notification event.” (16 C.F.R. §§ 314.2-312.4). Sections 1, 2, 4, 7, 8, 38-41 and 43-47 of this bill specifically require persons that are providers of certain financial services in this State to comply with the requirements set forth in those federal regulations. Additionally, sections 1, 2, 4, 7, 8, 38-41 and 43-47 require such a person to: (1) maintain the information security program required by existing federal regulations as part of the books and records of the person; and (2) notify the Commissioner of Financial Institutions or Commissioner of Mortgage Lending, as applicable, of any notification event in accordance with the regulations adopted by the applicable commissioner. The persons to which the requirements apply include private professional guardians and private professional guardian companies, escrow agents and escrow agencies, mortgage companies, mortgage loan or